Middle East

Stainless steel and special alloys have continued to witness robust growth across the region, fuelled not only by infrastructure, construction and industrial expansion but also by significant contributions from sectors such as real estate, oil/gas and automotive. In the third quarter of 2025, stainless steel demand in the Middle East remained resilient despite moderate price pressure from rising raw material costs (including nickel and molybdenum), energy price increases and global logistics constraints.

The Middle East & Africa region contributes around a 9% share of the global nickel alloys market, with demand largely driven by oil/gas infrastructure, desalination and petrochemical projects. While Gulf Cooperation Council (GCC) countries continue to lead regional consumption, the market is expected to grow moderately over the next decade, supported by regional industrialisation and ongoing infrastructure investment. Stainless steel in particular has been a key focus owing to its use in structural, decorative and corrosion-resistant applications across mega-projects.

Multiple GCC governments are introducing or strengthening policies that are pushing the stainless steel industry towards cleaner production methods and higher recycling rates. For example, they are investing heavily in transportation, industrial and real estate initiatives. Saudi Arabia has advanced projects such as NEOM and Riyadh Metro, while the UAE is focusing on smart city developments, renewable energy, aviation and sustainability-focused design. Such initiatives continue to drive high volumes of stainless steel and special alloys across the region.

The region’s stainless steel and special alloys prices remained under pressure in the third quarter, influenced by raw material inflation, energy costs and supply chain challenges. Regional buyers - especially in the UAE and Saudi Arabia - increasingly sourced from alternative countries such as Vietnam and Indonesia in order to navigate tariffs and anti-dumping measures, while domestic recycling and value-added production helped stabilise supply.

Domestic projects, local investments and trade discussions are driving stainless steel demand in the UAE. The real estate boom, tourism sector expansion and healthcare infrastructure growth have increased stainless steel use in kitchens, hospitals and decorative structures. New investments also reflect growing regional ambitions to develop value-added alloyed products domestically, supported by expanding scrap recycling infrastructure for both sustainability and supply security. The UAE is actively negotiating to reduce US export tariffs, aiming to boost the global competitiveness of its steel and alloy exports.

Saudi Arabia remains the region’s largest consumer of stainless steel for major infrastructure schemes. Mega-projects continue to drive demand, particularly for specialised and corrosion-resistant products. Anti-dumping duties are protecting domestic producers and align with Vision 2030 industrial goals. Domestic scrap availability is limited, and restrictions on scrap exports mean internal demand must be met through local production or imports, placing pressure on supply chains.

Elsewhere, consumption in stainless steel segments is growing strongly in Qatar, whereas Oman and Kuwait are experiencing slower growth. Many GCC states remain import-dependent for types of flat product and specialty alloys.

Stainless scrap markets in the Middle East and Africa are still developing. Though growing, they are limited by regulatory, logistical and processing capacity constraints. African markets outside South Africa rely heavily on informal or light-manufacturing scrap sources. Demand is gradually emerging across the Middle East and Africa, with infrastructure and energy projects in countries like Egypt, Kenya, Nigeria and South Africa slowly increasing stainless steel consumption. Supply inconsistencies, regulatory fragmentation and import dependency remain significant challenges across most African markets.