The market is majorly being driven by growing government initiatives, construction activities to develop country’s infrastructure, and rising demand for steel from industries such as automotive and construction. The demand for steel in Oman is growing continuously due to the country's construction and infrastructure development activities.
The government is also investing heavily in the country's infrastructure and is working to attract foreign investment in this sector, which is expected to boost the Oman Steel Market growth in the years to come. Moreover, the competition among steel producers is intense and there are several new entrants into the market, which is further intensifying competition.
In terms of supply, Oman has seen an increase in production due to increased demand from neighboring countries. This has resulted in an oversupply of steel, leading to lower prices. However, there are several challenges faced by the industry, which includes declining oil prices, political instability and regional conflicts.
Furthermore, increasing competition from other steel-producing countries, which have been steadily producing high-quality steel at lower costs is also posing significant challenges to the market development. The market is also facing rising cost pressures due to the increased costs of raw materials, energy, and workforce.