By: Fast Markets

The Middle East is emerging as a dominant force in the global steel industry, leveraging its significant energy advantages, technological leadership in low-carbon production, and strong regional demand. According to Jindal Steel's CEO, Harssha Shetty, the region's access to affordable natural gas—priced at around $4.8 in the Gulf compared to over $10 in Europe—provides a clear competitive edge for energy-intensive steelmaking. This foundational cost benefit is a primary driver of its growing influence.

A key pillar of the region's strength is its leadership in the global shift towards low-carbon steel. The Middle East and North Africa (MENA) region already accounts for 44% of the world's Direct Reduced Iron (DRI) output, a cleaner alternative to traditional blast furnaces. Furthermore, its potential for green hydrogen production, supported by abundant sunshine and established national policies, positions it as a top global candidate for the future of hydrogen-based steel production.

This industrial advantage is underpinned by robust and visible regional demand. Major infrastructure spending and a booming real estate market in the Gulf Cooperation Council (GCC) countries are powerful drivers. With project awards soaring from $90 billion in 2020 to $275 billion in 2024, and real estate transactions seeing double-digit growth, regional steel demand is projected to reach 59 million tonnes, providing a stable market for local producers.

Jindal Steel is making significant investments to capitalize on this favorable landscape. The company is expanding its operations in Oman, including a major $1.3 billion project in Duqm. A cornerstone of this expansion is the installation of a hydrogen-ready DRI plant, utilizing Energiron technology, which future-proofs its operations against the industry's decarbonization trajectory.

The company is also vertically integrating its operations to secure supply and enhance quality. It has completed trial production at a new 6-million-tonne pellet plant, which produces high-quality raw material with an iron content above 67%. This not only supports its own efficient DRI production but also creates a new export product, with the first shipments scheduled for January 2026.

Complementing its steel production, Jindal is undertaking a major commitment to renewable energy. Projects including a 280 MW solar plant in Shinas and a massive 1.4 GW solar-plus-storage facility in Duqm are central to its "future-ready energy strategy." This move directly addresses the carbon footprint of its operations and aligns with the region's hydrogen ambitions.

Despite the strong position, Shetty highlighted an area for development: building out the downstream industrial sector. He emphasized that each million-tonne steel hub can support up to 8,000 industrial jobs, presenting a significant opportunity for economic diversification and job creation beyond raw steel production, which is critical for the GCC's long-term economic plans.