Saudi Arabia's NEOM is pioneering a new era in urban development

The NEOM mega-city under construction in northwest Saudi Arabia is set to transform the global steel market. Spanning a massive 10,200 square miles, the project will shape future urban development and infrastructure needs. NEOM stands out especially with its iconic ‘The Line’ structure. These 105-mile-long structures will be home to around 9 million people and will provide the majority of NEOM's overall steel requirements.

The impact of the project will not be limited to Saudi Arabia. It will lead to major changes in the balance of steel production and consumption worldwide. Although Saudi Arabia produces around 9-10 million tonnes of steel annually, the amount of steel needed for the construction of NEOM will far exceed the current production. This will cause the country to significantly increase its steel imports. ‘NEOM will be one of the largest customers in the global steel market in the coming decades,’ Manar Al Moneef, NEOM's Chief Investment Officer, said at the Global Logistics Forum in Riyadh.

Steel industry expert Dr.Andrezj Kotas described the amount of steel required for NEOM as ‘unprecedented’. ‘Steel consumption goes far beyond similar large projects around the world. Building such a massive infrastructure will lead to a significant increase in demand on the global steel market,’ Kotas said. The enormous amount of steel NEOM will require will create a significant ripple effect in the steel industry, surpassing even major construction projects around the world.

This massive project will not only affect steel demand, but will also put enormous pressure on global logistics and supply chains. During the construction process of NEOM, a significant portion of the world steel market will be directed to Saudi Arabia. With the increase in steel imports, Saudi Arabia will create a huge demand on international supply chains to complete the project on time and efficiently.