Egypt is looking to strengthen domestic steel manufacturing, attract investment and expand regional supply chains as global competition and carbon regulations reshape the industry.
Egypt is seeking to strengthen its steel industry through greater domestic manufacturing, technological modernization and regional industrial integration, as the government looks to expand production capabilities and improve export competitiveness.
Minister of Industry Khaled Hashem outlined these priorities during the opening of the 19th Arab Steel Summit in Cairo, inaugurated by Prime Minister Mostafa Madbouly and attended by Ahmed Ezz, Chairman of the Arab Iron and Steel Union (AISU), alongside representatives of regional and international steel companies and industrial organizations.
According to a Ministry of Industry statement published by the State Information Service (SIS), Hashem described steel as a strategic component of Egypt’s industrial base, with applications across construction, infrastructure, engineering industries and automotive manufacturing.
Egypt produced 10.6 million tonnes of crude steel in 2025, ranking 19th globally, according to the World Steel Association’s World Steel in Figures 2026. The output highlights the country’s established production capacity and its potential to expand its role in regional and international steel markets.
Boosting domestic manufacturing
Hashem said the Ministry of Industry’s updated strategy prioritizes localizing manufacturing, increasing domestic value added and expanding exports.
The strategy also aims to strengthen integration across production stages, encourage new investment and accelerate the adoption of modern industrial technologies, according to the ministry.
Industrial automation and workforce development are additional priorities, with an emphasis on upgrading technical and engineering skills to improve productivity and keep manufacturers competitive.
Greater integration across the steel value chain could also support downstream industries, particularly construction, machinery and automotive manufacturing, while reducing dependence on imported industrial inputs.
Carbon regulations reshape export prospects
The transition toward lower-carbon steel production is creating additional pressures and opportunities for Egyptian manufacturers, particularly those seeking to maintain access to European markets.
The European Union’s Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on January 1, 2026, covering imports of iron and steel alongside other carbon-intensive products. The mechanism requires EU importers to account for the embedded emissions of covered imports.
For Egyptian steel producers, improving emissions measurement, investing in energy-efficient technologies and adopting lower-carbon production processes could become increasingly important to maintaining export competitiveness.
Adapting to these requirements will also require manufacturers to assess their production costs and emissions intensity as international markets introduce stricter environmental standards.
Arab integration opens investment opportunities
Hashem also highlighted the potential of greater Arab industrial cooperation to attract investment, develop regional supply chains and facilitate technology transfer.
According to the ministry, Arab countries’ industrial resources and consumer markets provide opportunities for joint ventures and greater specialization across manufacturing activities.
Rather than competing in identical industrial segments, countries could build on their respective competitive advantages to develop complementary production capabilities and expand regional trade.
For Egyptian steel producers, deeper integration could create opportunities to supply regional manufacturers, establish partnerships and participate in broader industrial supply chains.
The summit, organized by the Arab Iron and Steel Union, brought together approximately 700 participants representing more than 330 companies and institutions from 40 countries, including 15 Arab countries, according to the SIS.
An accompanying International Iron and Steel Exhibition featured 27 companies from 12 countries, showcasing industrial products, technological solutions and innovations.
The government said it would continue working with the Arab Iron and Steel Union and industry partners to promote investment, increase domestic value added and strengthen regional industrial cooperation.
