Morocco has significantly enhanced its position within the Arab industrial landscape of the steel and iron sector, securing the fifth spot among the top ten Arab nations in terms of operational capacity for steel production. This ranking is based on the latest data released by the Energy Research Unit in Washington, reflecting the rapid transformations taking place within Morocco's heavy industry and its efforts to establish itself as a regional industrial hub in the metals and related manufacturing sectors.
According to the new data, Morocco's steel production capacity has reached 3.32 million tons annually, entirely reliant on electric arc furnaces. This makes the kingdom one of the early adopters of this industrial model, which is characterized by lower coal consumption and greater alignment with global shifts towards energy transition and reductions in carbon emissions. The classification occurs within an international context where the global steel industry is undergoing a significant restructuring, with environmental sustainability and energy efficiency emerging as critical factors in determining the competitiveness of industrial nations. For decades, this industry was heavily reliant on coal and high-emission basic oxygen furnaces.
The Energy Research Unit revealed that the top ten Arab countries in steel production collectively possess operational capacities exceeding 59 million tons annually, which accounts for approximately 2.7% of the total global production capacity of 2.216 billion tons per year. Most Arab nations are moving towards a near-complete reliance on electric arc furnaces, regarded as the most flexible and environmentally cost-effective technology compared to traditional models. In this regional ranking, Egypt maintains its position as the largest Arab steel producer with operational capacities reaching 15.6 million tons annually, completely dependent on electric arc furnaces. Saudi Arabia follows in second place with a production capacity of 12 million tons per year, with 11.65 million tons from electric arc furnaces and 350 thousand tons from induction furnaces.
Algeria ranks third with a production capacity of 8.7 million tons annually, also fully reliant on electric arc furnaces, while the United Arab Emirates occupies the fourth position with a capacity of 5.1 million tons annually. Morocco's fifth position in this ranking is particularly notable considering the size of its economy compared to some major oil economies with substantial energy and financial resources. This reflects the gradual development of Morocco's industrial base in recent years, especially in sectors linked to infrastructure, metal industries, automotive, aerospace, and renewable energy.
This ranking also illustrates the growing domestic demand for iron and steel products driven by major structural projects across the kingdom, including expansions of ports, highways, railways, and new industrial initiatives that Rabat is banking on as part of its strategy to increase the contribution of industry to gross domestic product and strengthen national industrial sovereignty.
Oman ranks sixth in the Arab world with a production capacity of 3.2 million tons annually, followed by Iraq in seventh place with capacities reaching 3.18 million tons. Qatar comes in eighth with a production capacity of 2.9 million tons annually. Syria ranks ninth with a production capacity of 2.4 million tons, while Libya rounds out the top ten with a total of 1.71 million tons annually.
The report also noted smaller production capacities in several other Arab countries outside the top ten, including Bahrain with an operational capacity of 1.3 million tons annually, and Kuwait with approximately 1.2 million tons, while Tunisia's production capacity does not exceed 200 thousand tons annually.
On a global scale, data shows that operational capacities for the steel industry are expected to stabilize at 2.216 billion tons by 2026, with a slight increase of 17 million tons compared to the previous year. This indicates a relative slowdown in global expansion compared to the previous decade. However, the most significant indicator in the report is the accelerated shift towards electric arc furnaces, which recorded a global capacity increase of 28 million tons in just one year, while traditional basic oxygen furnaces saw a decrease of about 21 million tons. This underscores that the global steel industry is entering a new transitional phase driven by climate considerations, energy costs, and production expenses.
The Energy Research Unit highlighted that electric arc furnaces have achieved an annual growth rate of 12.8% over the past five years, in contrast to just 2.6% for basic oxygen furnaces. This disparity reflects the structural transformation occurring in the global industry towards more sustainable and less fossil fuel-intensive production models. Despite this rapid transition, basic oxygen furnaces still account for the largest share of global steel production, making up 66% of total global operational capacities, equivalent to 1.44 billion tons annually, compared to 34% for electric arc furnaces, which have capacities around 727 million tons annually.
China remains the dominant player in the global steel market, holding approximately 48% of total global operational capacities at 1.073 billion tons annually, far ahead of India, which ranks second with capacities of 140 million tons, followed by the United States at 111 million tons, and Japan with around 106 million tons annually. The figures also indicate that China alone controls 61% of global basic oxygen furnace capacities, while electric arc furnace production capacities are distributed more widely geographically, led by China, the United States, Turkey, and Iran. This diversification reflects the emergence of new production centers in the global industry.
Morocco's positioning within this industrial landscape comes at a time when the kingdom is eager to accelerate its manufacturing pace and enhance the competitiveness of local value chains, especially in light of preparations for major projects linked to the 2030 World Cup, alongside expanding investments in the automotive, renewable energy, and infrastructure sectors, all of which heavily rely on iron and steel products. This makes maintaining the momentum of developing this industry a strategic priority for the Moroccan economy in the coming years.
As reported by assahifa.com.
