The iron and steel industry is considered one of the most important strategic industries in the world because it is one of the main components in many products. The industry witnessed growth and prosperity until 2020, and with the beginning of the Corona pandemic, the Russian-Ukrainian war, inflation, the decline in global investments, trade wars between major countries, and finally the Gaza war, all of them were causes and challenges. It led to a decline in investments in the steel industry and also a decline in demand, which requires dealing with the risks besieging the steel industry with a new vision at a time when it has become necessary to reshape production blocs in the Arab region in all products, not just steel.
The Arab Steel Summit in Cairo, in which many Egyptian national companies participate, along with major companies from Kuwait, the Emirates, Saudi Arabia and the rest of the countries of the region, put forward some ideas aimed at restoring stability to the Arab region in production while ensuring the creation of markets that can accommodate the expected increase in Arab production, especially since there are many Among the countries that have development projects for years to come and need more steel production to meet the needs, most notably Egypt, Saudi Arabia and the Emirates, here we must point out the importance of pumping new investments, whether local or foreign, in addition to the necessity of entering into joint projects to ensure balanced growth rates in future steel industry projects. .
The summit, which was held over two days and witnessed four working sessions in which experts from all countries of the region participated, was able to identify future challenges in the Arab region, especially since there is a need for joint cooperation between producers in the region to ensure a shift in production and joint investments, because previous experiences confirmed that relying on Importing alone has great economic risks and forces the importing countries to accept the fait accompli and deal with international prices without considering the high final cost of projects as a result of the prices of the supplying countries.
From the beginning of the millennium until 2022, the growth rate of the Arab steel industry reached 314%, and the volume of Arab steel production is estimated at about 17 million tons, with investments approaching 10 billion dollars, and employing more than 30 thousand workers. At the same time, the volume of Arab steel production represents only 2%. Only from global production, while the average per capita consumption of the steel industry in the Arab countries is still low, it does not exceed 110 kilograms per year compared to 490 kilograms in other countries of the world, which means that the Arab industry still has promising opportunities in this important strategic sector.
You will discover through the summit and the accompanying exhibition that, despite the challenges, the Egyptian state, through the Egyptian private sector, possesses giant factories that are the largest in the Middle East region and has modern technology that ensures presence among the major producers, although we seek to increase investments in this vital sector and rely on local production of… By introducing some complementary industries to the industry to ensure the stability of the local market and meet the needs of the expected demand during the coming period, and also to bring about a shift in price stability so that the exporting countries are not the main controller of prices.