Al-Oula Steel Manufacturing Company announced its official entry into the subsidized building materials market in Kuwait, in line with Ministerial Resolution No. 222 of 2024 issued by the Ministry of Commerce and Industry, which is considered an important step to reduce the financial burdens on coupon owners.
The new resolution aims to achieve greater efficiency in government spending, and Al-Oula Steel’s entry into this market contributes to enhancing competition and providing high-quality options at competitive prices, making construction costs more reasonable.
The resolution was not limited to providing benefits to citizens only, but also contributed to setting a clear price standard for the specified 50 tons, which will become the standard that will be followed by any other competitor in the market.
Al-Oula Steel began its commercial operations to produce rebar in May 2023, as its new factory is considered an integrated extension of its existing industrial facilities. Since its establishment, the company has focused on regional exports, exporting its iron molds to neighboring markets, most notably the Kingdom of Saudi Arabia.
With its move to the local market, the company demonstrates its commitment to providing high-quality products that support the national economy and enhance Kuwait’s position as an advanced industrial center in the region.
Al-Oula Steel has played a pivotal role in promoting environmental sustainability in Kuwait by recycling nearly two million tons of iron scrap over the past years. These efforts are a major step in reducing reliance on imported raw materials, which reduces carbon emissions associated with the production of iron from its raw materials.
The recycling process adopted by the company contributes to supporting the circular economy and reducing industrial waste, making it compatible with international environmental agreements aimed at achieving sustainable development, such as the Paris Climate Agreement.
Al-Oula Steel has achieved an unprecedented decline in the prices of rebar, as prices have been observed to decline, as this decline has made it difficult to compete with imported iron, which has enhanced the strength and quality of local products.
This decrease was further enhanced by the decision of the Minister of Commerce and Industry to ban the export of scrap iron, a strategic decision aimed at providing rebar at competitive prices to consumers, which contributed to further stabilizing the local market.
Ahmed Al-Kharafi, CEO of Al-Oula Steel, said: “We are proud to enter the subsidized building materials market in Kuwait, and we believe that the new decision will bring multiple benefits to both citizens and the state. Our contribution to reducing construction costs embodies our commitment to supporting local development and enhancing economic growth through high-quality products at competitive prices. We are also committed to achieving environmental balance according to international standards that contribute to a more prosperous and sustainable future for Kuwait.”