Saudi iron sector attractive, demand outlook positive: AlKhorayef

Bander AlKhorayef, Minister of Industry and Mineral Resources

Saudi Arabia’s Minister of Industry and Mineral Resources Bander AlKhorayef said the Kingdom is still exploring the available quantities of iron ore.

He stated that the discovered reserves are promising and of high concentration levels, which is encouraging in the medium and long term.

Speaking at the third Saudi International Iron and Steel Conference in Riyadh, the minister said that the Kingdom will continue to rely on imports until local ores are developed through advanced industries, particularly green industries.

He noted that Saudi Arabia currently imports 4 million tons despite its domestic production.

AlKhorayef said the Kingdom’s iron production is expected to reach 25 million tons by 2035.

When asked about the timing of issuing iron ore exploration licenses, he said that licenses will be granted when the opportunity is suitable, adding that the next phase will reveal new sites.

The ministry is ready to award the concession if these sites are close to infrastructure and economically viable, the minister added.

He expressed optimism about the level of regional demand for iron and steel, citing expected demand from Iraq, Syria, Yemen, and Lebanon, as well as potential reconstruction demand after the war in Gaza.

AlKhorayef said that these factors make Saudi Arabia a key hub for the iron and steel industry.

He disclosed that the attractiveness of the iron sector in Saudi Arabia is based on three main factors. The first is the expected local demand, given that several targets of the industrial strategy depend heavily on localizing key industries that rely on iron and steel.

The second factor is the Kingdom’s geographical location, which positions it as an important manufacturing hub, due to its infrastructure and energy competitiveness.

The third factor is the Kingdom’s direction towards green metal industries, which represent the future, as investors are increasingly seeking renewable energy-based projects in the metals sector to ensure access to target markets.