Saudi Arabia Basic Metals Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Basic Metals Market Trends & Growth Drivers

Domestic Market Integration Is a Key Trend in the Market

• The boom in domestic market integration helps promote local products, motivate domestic suppliers, and develop robust supply chains within the kingdom.
• Few major players in the country are using vertical integrations as a means of controlling different phases of the manufacturing processes related to the extraction of raw metals, which is supporting this trend.
• Additionally, the government and industry players have started initiatives to support the growth of local suppliers.
• Concentrated efforts are being made to localize supply chains throughout the country, which will facilitate the growth of service providers and ancillary industries linked to the basic metals sector.

Advancing Logistics and Infrastructure Is Major Driver for the Market

• The advancement of logistics capabilities and infrastructure development plays a crucial role in the growth of this market in Saudi Arabia.
• The government is improving logistics to boost basic metal exports, while organizations are trying to develop infrastructure to improve basic metal production.
• In 2023, around 11,000 factories in the country exported industrial goods worth approximately USD 282 billion (SAR 106 billion).
• Additionally, Saudi Arabia is developing specialized industrial cities and economic zones for utilities and support services infrastructure particularly designed for the basic metals industry.

Environmental and Sustainable Issues Are Major Challenges

• The production of basic metals such as aluminum, steel, and copper are a highly energy-consuming process that can have a major impact on the environment.
• This creates a challenge for this market in terms of meeting the stringent environmental regulations and reducing its carbon footprint.
• The process of producing base metals, particularly those that need smelting and refining, leads to high emissions of greenhouse gases, primarily carbon dioxide.

Saudi Arabia Basic Metals Market Analysis

Product Type Insights

• The aluminum category will hold the largest market share, of 45%, in 2024, and it is expected to witness a CAGR of 3.6% in 2024–2030.
• Saudi Arabia is an emerging producer of aluminum in the world. In 2024, the annual production of aluminum in the country will be approximately 0.8 million metric tons.
• Additionally, the growing use of recycled aluminum products, increased usage of aluminum metal in the automotive and construction industries, and technological advancements that make aluminum more physically superior are all propelling this category.

The product types covered in the report include:

• Aluminum (Largest and Fastest-Growing Category)
• Copper
• Zinc
• Lead
• Nickel
• Tin
• Others

Applications Insights

• The construction category will dominate the market in 2024, and it is expected to witness a CAGR of 3.8% in 2024–2030.
• This is because Saudi Arabia is rapidly becoming more urbanized and has a growing population, which increases the demand for residential and commercial buildings.
• In Al-Madinah, the Rua Al Madinah project is being executed on a 1.5-million-square-meter site, which will offer accommodation in over 47,000 hotel rooms.
• The ongoing massive infrastructure projects, such as metro systems, economic cities, and transportation networks, are propelling this industry.
• Additionally, major initiatives, such as NEOM and the Red Sea Project, require a vast quantity of steel and aluminum, which helps this category grow.
• For instance, the NEOM future cities plan requires an investment of USD 5.6 billion to build 10 residential communities for 95,000 people.

The following applications are included in the report:

• Construction (Largest and Fastest-Growing Category)
• Automotive
• Electronics
• Medical Devices
• Oil and Gas
• Others

Geographical Analysis

Al-Riyadh Is Largest Province

• The Al-Riyadh province will acquire the largest market share, of 40%, in 2024, and it will become the fastest-growing market, with a CAGR of 3.9%, in 2024−2023 because it is the capital and economic hub of the country.
•  The Eastern Province also holds a significant share in the market, as driven by the production of steel and aluminum, it is a key center of the basic metals industry.
• Additionally, it is the home of several major industrial cities, such as Jubail and Dammam.
• This province has major ports, such as King Abdul Aziz Port, Jubail Commercial Port, and Ras Tanura Port, which helps facilitate the export of metallic products.

The provinces analyzed in this report include:

• Al-Riyadh (Largest and Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region 
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Basic Metals Market Share

This market is consolidated in nature because of the presence of various key players, including Al-Ittefaq Steel Products Company (ISPC), Saudi Iron & Steel Co. (Hadeed), Zamil Steel Holding Company Ltd., and Al Tilal Al Saudi Steel Industrial Factory. These players operate large-scale metal production facilities in the country, and they are attempting to gain access to resources such as electricity and raw materials. On the other hand, local businesses have started to establish themselves in this market with government assistance, but they still have a long way to go before being well-established.

Saudi Arabia Basic Metals Market News

• In December 2023, Saudi Arabian Mining Company found a substantial gold deposit that may extend 100 kilometers from the current Mansourah Massarah gold mine.
• In November 2023, Saudi Arabian Mining Company announced it has extended its contractual relationship with JLR luxury cars.
• In October 2023, Eversendai Resources Bhd’s formed a JV with Algihaz executing structural steel projects in Saudi Arabia.
• In September 2023, Saudi Basic Industries Corporation (SABIC) signed a share purchase agreement to give up its subsidiary of Saudi Iron and Steel Company (Hadeed) to the Public Investment Fund (PIF).