Qatar Steel and Bahrain Steel have signed a $1.27 billion agreement to supply 5 million tonnes of the product over five years, aiming to enhance industrial cooperation and strengthen the sector in the region.
On February 9, Qatar’s Ministry of Commerce and Industry announced the agreement, stating that it aligns with the Industrial Partnership for Sustainable Economic Development, which fosters private-sector collaboration among member states.
The initiative supported a range of industries, such as agriculture, food, and fertilizers, extending to pharmaceuticals, textiles, and chemicals industries. Additionally, the program also benefits sectors such as plastics, manufacturing, and minerals.
The Gulf’s steel industry has seen substantial growth, with major investments in infrastructure and industrial projects.
The ministry emphasized that this partnership would ensure a reliable supply of key raw materials for Qatar Steel, improving production efficiency and contributing to sustainable economic development. The deal is expected to unlock new investment opportunities, enhance industrial competitiveness, and reinforce local supply chains in both nations.
By securing a stable supply of essential raw materials, the agreement seeks to reduce reliance on imports, bolstering economic resilience and promoting market stability across the region. This initiative aligns with broader efforts to foster sustainable industrial growth and regional economic integration.
Bahrain Steel is the iron ore pelletizing company located in the heart of the Arabian Gulf, which runs twin plants with a total production capacity of 12 million tonnes of pellets. With a $3.5 billion investment, it serves as a key player in the region’s steel industry, according to its website.
Bahrain Steel produces a variety of pellets for both direct reduction and blast furnace steelmaking, sourcing raw materials through its dedicated port terminal. Approximately 75% of its finished products are exported.
Arabian Gulf’s first integrated steel plant, established in 1974, Qatar Steel began commercial production in 1978 and has been a fully owned subsidiary of Industries Qatar since 2003. Headquartered in Messaieed Industrial City, south of Doha, it also operates a UAE-based subsidiary, Qatar Steel Company FZE.