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The Middle East is entering a strong new phase in global steelmaking due to its energy advantages, technology position and healthy demand outlook, Harssha Shetty, chief executive officer of Omani Jindal Steel, told delegates at the Fastmarkets’ 28th Middle East Iron & Steel Conference and Exhibition (MEIS) in Dubai on Monday November 17.
“The Middle East has energy, steel and youth. These three things have built great nations and this region has all of them,” Harssha Shetty said. He added that steel would be a key driver in national diversification plans. “Every dollar spent in steel creates 2.5 dollars for the wider economy. One steel job can support more than 40 jobs when downstream industries grow.”
The region is already ahead of the global shift to low-carbon steelmaking, the Jindal CEO said. “44% of the world’s DRI output is here in MENA, and 50% of DR-grade pellet capacity is also here,” he said.
World’s DRI production is at 141 million tonnes, with 63 million tonnes coming from MENA, according to Shetty. “With natural gas around $4.8 in the Gulf, compared with more than $10 in Europe, we have a clear competitive edge,” Shetty added.
He said the Middle East was well positioned for hydrogen-based steel production. “We have close to 3,500 hours of sunshine, strong wind resources and national hydrogen policies,” he said. “For the switch from natural-gas DRI to hydrogen DRI, we are easily among the top two regions in the world.”
Shetty also highlighted strong medium-term demand. “GCC real estate reached $131 billion this year. Both Dubai and Abu Dhabi saw double-digit growth in transactions and prices,” the executive said.
He noted that 75% of companies expected higher capital and infrastructure spending in the next two to three years, while GCC project awards rose from $90billion in 2020 to $275 billion in 2024. “It is difficult to find another region with this level of demand visibility.”
But more downstream development was needed, according to the CEO. “Middle East steel demand will reach almost 59 million tonnes next year. Each one-million-tonne steel hub can support up to 8,000 industrial jobs,” Shetty added. “GCC imports from Asia exceed $16 billion. The region needs unified certification and stronger import controls.”
“We are now at 3.3 million tonnes of steel capacity,” Shetty said. He added that Sohar Steel was running at 100% capacity with 95% availability and “almost zero quality rejection.” The executive also said Jindal Steel Sohar had reached “industry-leading efficiency,” including DRI productivity of 182 tonnes per day per cubic meter and a 2024 carbon footprint of 1.57 tonnes of CO2 per tonne of steel.
On the company’s major project in Duqm, Shetty said work was moving quickly. “This is a $1.3 billion investment. 73% of ordering for the first DRI unit is complete.” The DRI plant will use hydrogen-ready Energiron technology.
The CEO confirmed that Jindal’s 6-million-tonne pellet plant had finished trial production. “The quality is at benchmark level, above 67% iron and a tumble index above 96%. First export shipments will begin in January 2026.”
Shetty also spoke about the company’s renewable-energy expansion, including a 280 MW solar project in Shinas and a 1.4 GW solar plus storage project in Duqm. “This is part of our future-ready energy strategy,” he added.
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