Qatar Steel and Bahrain Steel have finalized a $1.27 billion agreement to supply 5 million tons of steel over five years, strengthening industrial ties and boosting the sector across the region.
Announced by Qatar’s Ministry of Commerce and Industry on February 9, the deal aligns with the Industrial Partnership for Sustainable Economic Development, which fosters private-sector collaboration among member states. This initiative supports key industries, including agriculture, food, fertilizers, pharmaceuticals, textiles, chemicals, plastics, manufacturing, and minerals.
The Gulf’s steel industry has seen significant growth, driven by large-scale investments in infrastructure and industrial development. The ministry emphasized that this strategic partnership would ensure a stable supply of raw materials for Qatar Steel, improving production efficiency and supporting long-term economic sustainability.
The agreement is expected to unlock new investment opportunities, boost industrial competitiveness in both Qatar and Bahrain, and reinforce regional supply chains. By reducing dependence on imported raw materials, it aims to enhance economic resilience and stabilize market conditions.
Bahrain Steel, a leading iron ore pelletizing company in the Arabian Gulf, operates twin plants with a combined capacity of 12 million tons. With a $3.5 billion investment, the company plays a key role in the region’s steel industry, sourcing raw materials through its dedicated port terminal and exporting 75% of its finished products.
Qatar Steel, established in 1974 as the Arabian Gulf’s first integrated steel plant, commenced commercial production in 1978. A wholly owned subsidiary of Industries Qatar since 2003, it is headquartered in Messaieed Industrial City, south of Doha, and also operates a UAE-based subsidiary, Qatar Steel Company FZE.
