Saudi Arabia Automotive Steel Market Outlook

the automotive steel market in saudi arabia is expected to grow significantly due to the involved industry’s increasing need for high quality steel products. this is fuelled by the rise in production of saudi automakers and parts suppliers. additionally, the country possesses huge oil and gas reserves, making it the fourth-largest exporter of petroleum products in the world. in terms of industry trends, the saudi arabian automotive steel market has been set to move towards light weight steel for higher fuel efficiency and faster production, thus resulting in higher fuel economy. additionally, it has been seen that the introduction of high-tensile steel offers an improved form of automotive steel that is lighter and yet stronger than conventional steels. this presents great opportunities to saudi arabian automakers and parts suppliers. government initiatives aimed at creating a conducive environment for manufacturing and boosting the industry have played a major part in stimulating the automotive steel market. recently the trade ministry proposed a package of incentives for small and medium sized enterprises (smes) manufacturers in the automobile sector. this is expected to propel the automotive industry in the country, as well as provide an additional boost to the automotive steel market. the absence of a domestic automotive component supplier industry has traditionally presented a problem for automotive steel producers in the region. however, favourable policies are encouraging new entrants to enter the industry. this increase in competition is expected to help raise the standards of automotive steel products in the long-term. the government’s proposed specialized industrial zones (sizs) are concentrating on essential infrastructure projects required for the development of the automotive steel industry. these specialised projects are expected to either be referred to the private sectors or the government, thus providing an adequate platform for the automotive steel market. in conclusion, the automotive steel industry in saudi arabia is expected to expand and grow over the next decade. efforts by the government to create an enabling environment, along with the increasing demand from domestic automakers and parts suppliers are the expected to be the major drivers of growth in the automotive steel market.