To maintain its own economy, in connection with the collapse of oil prices, Management of public procurement in Saudi Arabia has taken drastic measures to support the metallurgical sector of the country. They represent a requirement for procurement of steel (long products according to an approved list) for state projects from domestic manufacturers.
this provides a rather flexible approach to pricing, at the same time protecting consumers. For example, if the value of:
- Reinforcing bars of international standard GI, PPGI.
- welded Steel pipes.
From domestic producers will be 30% higher than the imported counterparts, the latter are permitted to be imported into the country without any restrictions or penalties.
a representative of the national Committee on steel industry of Saudi Arabia (NCSI) said that such measures are introduced in connection with the reduction in steel production by domestic producers and is aimed at attracting investments, including foreign, for the maintenance sector, with the prospect of future growth.
