Middle East

The UAE is witnessing a significant surge in infrastructure and development projects, driven by national plans such as the We the UAE 2031 and UAE Vision 2040. These initiatives are focused on diversifying the economy and expanding non-oil sectors. The UAE’s ongoing urban development and industrial expansion are creating a substantial demand for steel, including stainless steel, owing to its strength and durability. Key projects, such as the AED 10 billion (US$ 2.72 billion) expansion of the Dubai Exhibition Centre at Expo City, highlight the increasing need for steel in the construction of new venues and related infrastructure.

Additionally, large-scale projects in residential housing, commercial buildings, transportation and industrial facilities are further boosting demand.

In the Middle East, demand for stainless steel is closely tied to the price of nickel. As the region undergoes significant infrastructure development and industrial expansion, understanding nickel market trends is essential. Recently, LME nickel prices have experienced sharp increases. This trend is anticipated to continue, driven largely by rising demand for nickel in electric vehicle (EV) battery production.

The Middle East is witnessing a push towards electric mobility, further increasing the demand for nickel. As countries in the region invest in EV infrastructure and renewable energy projects, the demand for nickel-intensive batteries will rise, putting upward pressure on nickel prices. This situation could lead to increased production costs for stainless steel manufacturers in the region.

Robust demand for stainless steel, driven by large-scale infrastructure projects and urban developments in the Middle East, is expected to counterbalance some of the cost pressures associated with rising nickel prices.