Islamabad, Feb 11: Qatar and Bahrain have signed a groundbreaking $1.27 billion steel agreement aimed at strengthening industrial collaboration and boosting the regional steel sector.
Announced by Qatar’s Ministry of Commerce and Industry, the deal involves a five-year partnership between Qatar Steel and Bahrain Steel, ensuring the supply of five million tonnes of steel. This agreement is designed to secure a stable flow of essential raw materials, enhancing Qatar Steel’s production efficiency and contributing to long-term economic sustainability.
This initiative aligns with the broader industrial partnership for sustainable economic development, which fosters collaboration across multiple industries, including agriculture, pharmaceuticals, and manufacturing. As the Gulf’s steel industry continues to experience rapid growth, driven by significant infrastructure and industrial investments, this partnership is expected to open new investment opportunities, improve industrial competitiveness, and reinforce local supply chains.
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Bahrain Steel, a key player in the steel industry, operates two iron ore pelletizing plants in the Arabian Gulf, boasting a combined production capacity of 12 million tonnes annually. With a total investment of $3.5 billion, the company plays a vital role in supplying high-quality pellets for both direct reduction and blast furnace steelmaking. Bahrain Steel sources raw materials through its dedicated port terminal, with approximately 75% of its finished products exported to global markets.
Qatar Steel, established in 1974 as the Arabian Gulf’s first integrated steel manufacturing facility, commenced commercial production in 1978. Since 2003, it has been a wholly owned subsidiary of Industries Qatar. Headquartered in Messaieed Industrial City, south of Doha, Qatar Steel also operates a subsidiary, Qatar Steel Company FZE, in the United Arab Emirates.
This strategic alliance marks a significant milestone in regional industrial cooperation, ensuring sustainable growth and reinforcing the Gulf’s position as a major hub in the global steel industry.
