Interview: Harssha Shetty
What role is the iron and steel industry expected to play in Oman’s development and industrialisation?
HARSSHA SHETTY: The iron and steel industry is pivotal to Oman’s economic development and industrialisation, aligning with Oman Vision 2040. Historically, manufacturing – specifically steel production – has been a catalyst for wealth creation. Steel is a crucial building block for infrastructure and machinery, making it essential to economic growth. Oman’s economy, which is reliant on oil and natural gas, needs to diversify. The government’s vision to have non-oil activity account for 90% of the sultanate’s GDP is commendable, and the steel industry can catalyse this transformation. Oman has successfully attracted funding due to its investor-friendly policies, and its potential output is more than 10m tonnes per year.
Oman’s competitive advantages – its potential for solar and wind energy, vast areas of uninhabited land and access to production facilities make it well positioned to produce low-CO₂ steel. Major steel producers in Oman understand the local market and have a strong presence, and they can leverage these factors to become pioneers in supplying more environmentally friendly steel to the world. European industries clearly intend to purchase this steel to achieve sustainability goals, so Oman can meet this demand and create a differentiated position in the global steel market.
How has the iron and steel industry adapted to changing patterns in global demand?
SHETTY: The primary markets for Oman’s iron and steel exports are evolving in response to changes in demand, particularly the growing emphasis on sustainability. Europe is emerging as a critical market for low-CO₂ steel due to stringent environmental regulations and consumer preferences for eco-friendly products. The EU’s Carbon Border Adjustment Mechanism, set to take effect in 2026, is compelling industries on the continent to source products that have smaller carbon footprints.
This shift in demand has created a significant opportunity for Oman’s steel industry. As European customers seek low-CO₂ steel to achieve their sustainability goals, there is a growing deficit between supply and demand. Oman’s advantage lies in its ability to produce eco-conscious steel by harnessing its natural resources and access to production facilities, making the sultanate a potential global supplier of low-CO₂ steel. As demand for sustainable products continues to rise, Oman has an opportunity to adapt and thrive by focusing on environmentally sound production methods and meeting the evolving needs of customers.
In what ways are industries minimising their environmental impact and developing human capital?
SHETTY: Heavy industries like iron and steel are increasingly focused on reducing their carbon footprint. The urgency to reduce emissions is a global priority, and the steel industry is a significant contributor of greenhouse gases. Efforts to decarbonise the steel value chain are gaining momentum, giving Oman the opportunity to leverage its natural resources to produce low-CO₂ steel. Greenfield projects are being considered to establish new capacities that are in line with sustainable practices. To address emissions, the industry is exploring various technological advancements, including artificial intelligence and machine learning, to optimise processes and reduce resource consumption. Carbon capture, utilisation and storage technologies are being integrated to lower emissions.
There is also a shift towards a more tech-savvy workforce. While engineering knowledge remains essential, employees need to be proficient in handling advanced technology. Training programmes are being implemented to ensure that workers can operate and maintain these automated systems effectively. This technological evolution is transforming the steel industry’s workforce, emphasising the need for blending traditional engineering and modern digital competencies.
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