While the recovery in steel demand in the GCC countries lagged behind other regions in 2021, GCC steel demand will accelerate with the resumption of construction projects that will be further boosted by lessening budget pressures and easing of Covid-19 related restrictions. The UAE is likely to lead the recovery, while Saudi’s continued effort for economic diversification is expected to drive steel demand growth in the GCC region in the coming years.

Turkish steel demand showed double-digit growth during the pandemic and the following year. However, an unorthodox monetary policy has led to another round of currency depreciation and deteriorating economic performance in 2022. The government’s measures to support construction and supply chain normalisation will allow moderate steel demand growth in 2022 and 2023. With its relatively high dependence on Russia for inputs and raw materials, the Russia-Ukraine conflict has significant downside risks for Turkey through inflation and currency volatility.