Saudi steel duty affects Gulf players

Saudi steel duty affects Gulf players

Steel exports to Saudi Arabia from the Gulf Cooperation Council (GCC), and especially the UAE, have been heavily impacted since 1 July 2022 when the Kingdom imposed a 15 percent duty on steel imports.

“So far, GCC-manufactured goods were exempted from import duties to Saudi Arabia. But from 1 July, Saudi started imposing 15 percent duty on different products including steel. This greatly impacted steel players in the GCC, [and] especially, in the UAE, as Saudi is a big market for certain steel products,” said Steevan D’Souza, Vice President, Reliant International Group, which produces and exports steel billets, wire rods, slabs, as well as petrochemical and oil products.

In a June 2020 report, S&P Global Platts quoted sources as saying that Saudi Arabia increased import duties on various semi-finished and finished iron and steel products to between 10 percent and 20 percent of the product value, from earlier levels of 5-10 percent, effective from 20 June 2020 and applicable to non-GCC producers.

The Kingdom’s steel imports have included billets, rebars, and hot and cold rolled coils.

Dr Musa Souri, CEO, Union Iron & Steel Company, an Abu Dhabi-based manufacturer of rebars said the 15 percent duty has hugely impacted GCC players in terms of