Key Challenges Facing Steel Manufacturers in Saudi Arabia

The manufacturing of steel is pivotal for Saudi Arabia as well as the world economy. Big infrastructure projects, including buildings, bridges, and roads, require a lot of steel to run. However, Saudi Arabia's steel manufacturers have to overcome specific obstacles that influence their manufacturing efficiency and profitability. Some of these challenges are raw material shortages, high energy costs, environmental laws, intense competition, logistical issues, and a lack of trained workers. The industry overcoming these obstacles will determine the growth and viability of the sector. Restricted Availability Of Basic Resources One of the biggest challenges steel manufacturers in Saudi Arabia have is a lack of locally available raw materials. The lack of major iron ore deposits in the country encourages firms to purchase raw materials from other countries. This dependency exposes the industry to fluctuations in international market prices as well as elevates manufacturing costs. More...