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| Al Qaryan Recycling Metals |
Saudi Arabia’s Recycling Metals Industry Underpins Economic Diversification
Recycling metals is a critical driver in Saudi Arabia’s industrial transformation and Vision 2030 objectives. Al Qaryan, the largest scrap processor in the Middle East, processes up to 1.7 million tonnes of steel scrap annually in Saudi Arabia, supporting the Kingdom’s shift toward sustainable industrial growth. Furthermore, recycling of critical metals like copper, silver, and titanium is gaining strategic importance, complementing steel scrap recycling. As a result, the recycling industry is fueling new growth sectors, reducing environmental impact, and enhancing resource efficiency across the Kingdom.
Al Qaryan’s Role in Steelmaking and Circular Economy Projects
Al Qaryan’s steelmaking facility in Dammam produces 450,000 tonnes of steel billets annually using induction furnace (IF) technology. However, rising scrap demand has intensified supply tightness due to expanded IF capacity, which now represents about 35% of Saudi steel production. The company aligns its strategy with Saudi Vision 2030, focusing on sustainable alloy production and carbon reduction. Meanwhile, Saudi Arabia is advancing major projects like Al Watania’s tinplate plant and Wahaj’s electrical steel production, reinforcing the demand for recycled metals. Moreover, the Saudi Investment Recycling Company (SIRC) backs circular economy initiatives, including waste-to-energy and sustainable aviation fuel projects, further stimulating industrial recycling.
Market Challenges and Innovation in Recycling Metals
Despite growth, the Saudi scrap market faces challenges including tight supply, rising energy and logistics costs, and quality concerns related to IF mills. Some operators are transitioning to electric arc furnace (EAF) technology to improve efficiency and broaden feedstock options such as direct reduced iron (DRI). Al Qaryan has also pioneered specialized demolition recycling services, supporting large infrastructure projects with safe, environmentally responsible waste management. This integrated approach maximizes material recovery, bolsters sustainability, and supports Saudi Arabia’s broader industrial and environmental goals.
ScrapInsight Commentary
Saudi Arabia’s recycling metals sector exemplifies the Kingdom’s industrial modernization and sustainability ambitions under Vision 2030. Market tightness and rising costs may pressure margins, but innovations in furnace technology and demolition recycling create new value streams. Continued government support and transparency will be essential to attract investment and secure a circular economy future.
