New Logistics Corridors in the Middle East to Boost Steel Demand

Details of the New Corridors

1. Saudi Arabia

   It has activated Red Sea ports including Jeddah Islamic Port, King Abdullah Port, and Yanbu Port, supported by dedicated cross-country trucking routes.

   These corridors connect to Kuwait, Bahrain, Qatar, the UAE, Oman, Iraq, and Jordan, supported by streamlined customs and bonded transit policies.
2. UAE

   It is expanding capacity at Fujairah and Khorfakkan ports (on the Gulf of Oman, outside the Strait of Hormuz).

   Etihad Rail has increased freight services, forming a sea-rail intermodal network that enhances supply chain stability.
3. Oman

   It is upgrading Sohar, Duqm, and Salalah ports as alternative regional gateways, with faster customs clearance and cross-border trucking coordination.

Positive Impact on the Steel Industry

• A sharp increase in infrastructure projects: port expansion, railways, roads, warehouses, and logistics parks.
• Strong demand for structural steel, rebar, H-beams, plates, and sheet piles.
• More stable and diversified shipping routes, reducing risks and supporting regional steel prices.
• Long-term infrastructure investment plans underpin sustained steel consumption in the Middle East.