October 12, 2008

Steel sector seen as a major job provider in Saudi Arab

Dr Mahmoud Mohieldin Saudi Arabia’s minister of investment, while addressing at Arab Union for Iron & Steel Conference, said that the steal industry is vital to investment and gives direct and indirect returns to the economy and community. He added that Arab and international steel markets record a remarkable increase in demand on steel products, driven by unprecedented growth rates in the region and development of infrastructure and steel based industries.

Dr Mohieldin noted that Arab markets provide great investment, expansion and growth opportunities for these industries. He cited studies concluding that each job in the iron and steel industry creates nine jobs in other related industries. He added that each investment unit in the iron industry opens doubled investments of ten times in feeding and consuming industries.

He highlighted the importance of integration in this leading industry to ensure a steady economic growth and creation of new jobs in Arab countries. He said that the iron industry still has a limited contribution in Arab GDP although Arab countries possess numerous and qualifiable laborers in addition to capitals that search promising opportunities of investment and growth.

Dr Mohieldin urged the private sector to increase its investments in people and spend more in research and development to increase production, reduce cost and support competition.