The Growing Role Of The Private Sector

摘要

The share of the private steel companies in the total Arab steel production which came close to 21 million tons in 2006 has constituted a positive development strengthening the ability of these companies to have a peculiar role in the development of this industry. The share of the private sector accounted for about 67 percent of the total production of finished products. This share is apt to increase during the next years influenced by two basic factors ; the first is that most of the future steel projects will be set up by a private capital which has found in being introduced into this industry a good investment opportunity securing a financial return the presence of which has been strengthened by the increase of the prices of the steel products up to unprecedented levels; but the second factor is listed within the expansion and merger operations carried out by the world steel companies, which is a strong motivation to enter into such alliances in which the local companies have found a solution to cope with some problems related to financing and to introducing new technologies. It would perhaps be worth noting that the companies which have taken this direction more rapidly are the companies which had originally been state-owned companies, such as Al-Hadjar iron and Steel Complex in Algeria which is considered one of the largest iron and steel complexes at the Arab level, as Mittal Steel had acquired 70 percent of the capital of this complex as well as SONASID in Morocco which entered Into a partnership with Arcelor by 50 percent. The results achieved for these companies which had entered into such alliances have encouraged the other companies to think of entering into similar operations, but what would delay entering into such operations are the good situations through which the steel industry is passing, which have been positively reflected on the level of the general activity and profitability for most, if not to say all, Arab steel companies.