Saudi Arabia's Neom Project and Its Global Steel Demand - News and Statistics - IndexBox

Nov 04, 2024

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According to Newsweek, Saudi Arabia's ambitious Neom megaproject claims it requires 20% of the world's steel supply as part of its sprawling construction plans. This colossal demand underscores the magnitude of the project, which spans 10,200 square miles in northwest Saudi Arabia. Launched in 2017 by Crown Prince Mohammed bin Salman, Neom aims to redefine urban living with its flagship horizontal city, The Line, projected to extend 105 miles and accommodate 9 million residents.

Besides The Line, Neom encompasses the Trojena winter resort, twelve luxury resorts known as Magna, the Sindalah island resort, and the forthcoming industrial city, Oxagon. Neom's chief investment officer, Manar Al Moneef, highlighted at the Global Logistics Forum in Riyadh that the project's logistics demand accounts for 5% of the global market. She emphasized Neom's massive consumption footprint, stating, "We are 20 percent of the global steel market."

Dr. Andrzej Kotas, a seasoned steel industry consultant and CEO of Steel On The Net, acknowledged to Newsweek the unprecedented scale of steel consumption for Neom, noting, "I can't think of any projects that come anywhere near that." Given that Saudi Arabia is not a major steel producer, it is likely sourcing significant amounts of steel from international markets.

The financial commitment to Neom is substantial, with initial estimates pegged at $500 billion, but external analysts suggest the costs could escalate dramatically. Indeed, Saudi Arabia has invested $1.3 trillion in building and infrastructure over the past eight years.

According to data from IndexBox, Saudi Arabia's steel import value for 2023 stands at $856.178 million USD. The top five import partners for Saudi Arabia include Bahrain at $663.957 million USD, Ukraine at $131.581 million USD, Kuwait at $14.303 million USD, South Korea at $8.781 million USD, and Italy at $7.687 million USD. These figures depict a robust global supply chain involvement to meet the immense construction demands of projects like Neom.

Source: IndexBox Market Intelligence Platform

This report provides an in-depth analysis of the market for raw steel and steel semi-finished products in Saudi Arabia. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2030.

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