This strategic initiative is a key part of EMSTEEL’s decarbonization strategy implementation and aligns with the UAE’s Net Zero by 2050 commitment. Under the agreement, Yellow Door Energy will finance, build, own, operate, and maintain solar panel installations across 40 EMSTEEL roofs in ICAD 1, Abu Dhabi. The project will comprise rooftop and carport solar installations, including high-efficiency solar panels, with bifacial panels used for carports to optimize clean energy generation.

Upon completion, the project is expected to generate approximately 50 million kilowatt-hours (kWh) of clean electricity annually, offsetting approximately 16,000 metric tons of CO₂ emissions from our scope 2 emissions per year over the next 25 years. The 100% self-consumed renewable electricity will directly reduce energy costs and carbon footprint, furthering EMSTEEL’s commitment to operational efficiency and decarbonization.

Engineer Saeed Ghumran Saeed Al Remeithi, Group CEO – EMSTEEL, stated:
“Sustainability is at the core of EMSTEEL’s strategy, and advancing our decarbonization efforts is a key priority as we shape the future of sustainable manufacturing. This partnership with Yellow Door Energy marks an important step in implementing our recently published decarbonization strategy, by expanding the use of renewable energy across our operations. By integrating on-site solar power, we are reinforcing our leadership in industrial sustainability, contributing to the UAE’s Net Zero by 2050 vision, and setting new benchmarks for renewable energy adoption in the UAE’s steel industry.”

Jeremy Crane, Group CEO – Yellow Door Energy, added: “We are proud to partner with EMSTEEL on this solar lease agreement, enabling them to transition to clean energy while achieving significant cost savings. With a total capacity of 31.5 MWp, this project demonstrates the potential for solar to power our primary industries in the UAE. As a UAE-founded company, Yellow Door Energy remains committed to helping businesses reduce energy costs and decarbonize their operations.”

Construction is set to commence in 2025, with commissioning targeted for 2026. Yellow Door Energy will oversee the end-to-end development, ensuring seamless execution while eliminating upfront investment for EMSTEEL. This solar lease model enables EMSTEEL to enjoy the benefits of clean energy without operational risk, allowing the company to focus on its core business while advancing its sustainability objectives.

As part of the overall Group’s decarbonisation strategy, the company aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its Steel Business Unit and a 30% reduction in its Cement Business Unit by 2030, using 2019 as the baseline year, with the ultimate goal of reaching net-zero emissions by 2050.

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EMSTEEL (ADX: EMSTEEL) (“the Group”), one of the largest publicly traded steel and building materials manufacturers in the region, has announced the launch of its Asset Enhancement Programme – a strategic initiative with a CapEx of approximately AED 625 million, designed to enhance production capabilities and introduce advanced steel solutions to meet growing market demands.

The programme directly aligns with the UAE’s Operation 300bn, aiming to upscale innovation in the UAE’s industrial sector and strengthen its role in stimulating the national economy. By advancing the development and production of high-quality, value-added solutions, this initiative supports the UAE’s vision of becoming a global leader in manufacturing and industrial excellence.

Phase 1 of the enhancement programme will focus on upgrading EMSTEEL’s existing rolling mills to enhance production capabilities. This includes the introduction of a new generation of high-strength rebars and advanced heavy-section products, significantly expanding EMSTEEL’s product portfolio to cater to evolving market demands.

Key innovation upgrades during this phase will include advanced shear systems to enable the production of high strength rebars for sustainable construction. This includes EMSTEEL’s flagship ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to improve structural integrity while reducing material usage. The advanced tensile properties of the ES600 contribute to decarbonising the construction industry by lowering steel consumption, reducing transportation emissions, and cutting overall carbon footprint.

Phase 1 of the enhancement programme will also enable EMSTEEL to leverage state-of-the-art rolling mill technology to produce quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel. This ensures enhanced strength and resilience for demanding applications across high-rise buildings, large-scale infrastructure projects, and the multi-faceted web of assets available in today’s energy sector.

QST enhances steel toughness and wear resistance by using rapid cooling, improving its mechanical properties without compromising weldability, while TMCP optimises the steel’s microstructure through controlled rolling and cooling, resulting in high strength, excellent weldability, and improved impact resistance which are critical for structures exposed to extreme loads and harsh environmental conditions.

Phase 2 will include the installation of a new wire rod outlet with a capacity up to 500 KTPA, along with the upgrades of a cooling conveyor at existing rolling mills. These enhancements will enable the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. To support this expansion, EMSTEEL will also upgrade its steel melt shop with state-of-the-art VD technology and enhancements to billet casters, ensuring the production of high-carbon and special alloy billets required for the new product range.

These investments support EMSTEEL’s strategic shift from producing standard, commodity-grade steel to specialized, high-value products that offer enhanced strength, durability, and efficiency for critical applications. This transition not only strengthens customer retention but also positions EMSTEEL to capitalize on the growing regional demand for premium steel solutions.

The GCC market currently relies on imports for VA-grade wire rod products, with demand expected to grow at a CAGR of 7-10% over the next decade. By overcoming existing mill limitations and expanding its product portfolio, EMSTEEL is poised to enhance its competitive positioning in key sectors, including infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components.

The enhancement project follows an ambitious timeline, with EMSTEEL’s first rolling mill upgrade set for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027, further enhancing EMSTEEL’s capabilities. Upon completion, this initiative will significantly strengthen the company’s market position, expand its customer base, and drive additional EBITDA growth.

Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “As industries evolve and infrastructure projects grow more demanding, the need for higher-grade steel is becoming paramount. Without continuous investment in advanced steel solutions, manufacturers risk falling behind in a competitive global market. EMSTEEL’s strategic transformation ensures that it stays ahead of industry trends, providing state-of-the-art materials that meet the growing needs of modern construction, energy, and industrial projects.”

He added: “We are not just enhancing our production capabilities; we are redefining industry standards and pioneering solutions that will shape the skylines of tomorrow. By investing in innovation and sustainability, we reaffirm our commitment to delivering world-class steel products that drive economic growth across the UAE and beyond.”

EMSTEEL Group remains committed to delivering high-quality, sustainable solutions to meet the region’s industrial and construction needs. As the UAE’s leading publicly listed steel and building materials company, it continues to pioneer initiatives that drive regional growth and strategic collaboration to boost the nation’s economy.

This milestone celebrates our groundbreaking green hydrogen pilot project with Masdar—the first of its kind in MENA. By replacing natural gas in iron extraction, we demonstrated a scalable solution that supports the UAE’s Net Zero 2050 and National Hydrogen Strategy 2050, setting a new benchmark for sustainable steel production.

This achievement highlights our unwavering commitment to driving sustainable innovation and leading the industry toward a greener future.

We’ve launched Innovation Week 2025, aligned with the UAE’s vision for progress. Over the 4 days, we’ll host 8 dynamic sessions on AI-driven workplace safety, green hydrogen, 5G smart factories, sustainability, and customer experience innovation.

We look forward to contributing to the UAE’s journey toward becoming a global leader in innovation.

Aligned with the UAE’s vision for industrial growth, we remain committed to empowering local talent and advancing the sector. We were also pleased to welcome H.E. Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology to our stand during the event.

The event brought together industry leaders to discuss EMSTEEL’s role in advancing sustainable steel production and accelerating industrial decarbonization.

The event concluded with a visit to EMSTEEL’s state-of-the-art green hydrogen-based pilot project, providing participants with firsthand insight into our commitment to delivering low-carbon steel solutions.

This strategy underscores EMSTEEL’s commitment to sustainable manufacturing and aligns with the UAE’s Net Zero by 2050 Strategic Initiative, the UAE’s Nationally Determined Contribution (NDC 3.0), and the Paris Agreement. EMSTEEL is dedicated to driving industrial decarbonization in line with the UAE’s goal of a 27% reduction in industrial emissions by 2035 from 2019 levels.

To achieve a significant reduction in its CO₂ footprint, the Group will focus on implementing key decarbonization strategies, including enhancing energy efficiency,  incorporating advanced process optimization technologies and utilizing alternative fuels and raw materials in steel and cement production. Additionally, it is also expected to accelerate the use of clean and renewable energy to cover 100% of electricity demand by 2030.

Engineer Saeed Ghumran Al Remeithi, Group CEO – EMSTEEL, said: “EMSTEEL is committed to leading the transformation of the construction and manufacturing sectors through sustainable practices. Our decarbonization strategy not only aligns with the UAE’s Net Zero 2050 goals, but also positions EMSTEEL as a global leader in low-carbon steel and cement production. Through innovation, investment, and collaboration, we are building a more sustainable future for our industry and our planet.”

The steel and cement industries are among the most carbon-intensive sectors globally, generating a substantial share of GHG emissions. Acknowledging both the challenges and the significant social and economic benefits of successful decarbonization, EMSTEEL is committed to significantly reduce its Scope 1 and Scope 2 emissions in the coming years. The Group has already made substantial progress in reducing Scope 1 and Scope 2 emissions, as well as emissions intensity during 2019 and 2023. As of 2023 EMSTEEL’s total Scope 1 and 2 emissions stood at 4.5 million tonnes of CO₂, which is 23% below the baseline year of 2019.

The above achievements have been driven by advancements in energy efficiency, the implementation of carbon capture technologies, and the integration of clean and renewable energy solutions. Additionally, the Group continues pioneering critical decarbonization technologies and has recently launched a groundbreaking pilot green hydrogen project—the first of its kind in the Middle East and North Africa—in collaboration with Masdar. This initiative leverages green hydrogen to extract iron from iron ore, marking a significant milestone in the region’s journey toward sustainable steel production.

In September 2024, the EMSTEEL was appointed as Co-Chair of the Alliance for Industry Decarbonisation (AFID) led by the International Renewable Energy Agency (IRENA). EMSTEEL was also recognised as the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering efforts in decarbonising steel production. The World Economic Forum recognised EMSTEEL for its outstanding efforts in decarbonising the iron and steel industry, placing it among the top five leading steel companies worldwide that have received this recognition. Finally, at the ‘Make it in the Emirates Awards 2024’, the Group’s contributions to the UAE’s industrial sector were recognised with the Best Sustainable Manufacturing Award and the ICV Excellence Award.

Financial highlights for 2024:

• During 2024, EMSTEEL maintained overall steel production volumes in line with the level attained during 2023. The Group delivered total revenues of AED 8.3 billion, approximately 6% lower than the AED 8.9 billion reported for 2023. This decrease in revenue is due to various factors, including fluctuations in global steel prices, increased competition, and changing demand trends driven by economic uncertainties in key markets.
• EMSTEEL’s profitability margins have been affected by an increase in low-priced Chinese steel exports, which have directly or indirectly impacted prices in several of the Group’s key markets, including the GCC and important export destinations like Europe and the US. Despite the challenging market environment EMSTEEL realized a solid Profit before tax of AED 432 million and Net Profit after tax of AED 392 million. The Group further strengthened its balance sheet, realizing a positive net cash generation of AED 401 million resulting in a balance sheet free of net debt. The Net Profit was supported by the reversal of an impairment taken during COVID, with a net positive impact of AED 189 million.
• In 2024, EMSTEEL recorded EBITDA of AED 892 million, with a margin of 10.9%, compared to 14.2% in 2023. EMSTEEL’s FY24 profitability was supported by a significant improvement of the Group’s EBITDA during the fourth quarter of the year, amounting to AED 247 million, up 81% compared to the third quarter of 2024. One of the key factors was EMSTEEL’s ability to leverage increased UAE construction activity, which supported rebar demand and allowed the Group to maximize capacity utilization, while at the same time improving price realization in this core segment.
• Revenue from the Group’s Emirates Steel division totalled AED 7.6 billion during 2024, generating an EBITDA of AED 680 million. Emirates Steel’s performance was impacted by adverse global market conditions.
• Revenue from the Group’s Emirates Cement division was AED 0.8 billion in 2024, with an EBITDA of AED 212 million. Within the Cement division the Pipes & Other segment is reported as Assets held for Sale as a divestment process is ongoing. Revenue for this segment amounted to AED 156 million in 2024.
• As of the end of 2024, the Group continues to maintain a robust liquidity position, with AED 823 million cash in hand compared to AED 426 million as of 31 December 2023.

Strategic highlights for 2024:

• EMSTEEL launched its new brand as part of a broader strategy to accelerate its operational transformation and extend its global presence. The new brand identity and operating model enable the seamless addition of new divisions, supporting growth into new markets and product lines.
• The Group has made significant progress in advancing its ambitious Low-Carbon Iron Joint Venture project. A comprehensive feasibility study is currently underway for this transformative initiative, with the goal of positioning Abu Dhabi as a global leader in sustainable steel production.
• EMSTEEL collaborated with Masdar on the successful completion of a pilot project demonstrating the use of green hydrogen to produce green steel. This first-of-its-kind project in the Middle East and North African region uses green hydrogen to extract iron from iron ore, a key step in steelmaking.
• The Group was also appointed as co-chair of the Alliance for Industry Decarbonisation (AFID) led by the International Renewable Energy Agency (IRENA). EMSTEEL will be co-chairing the renowned global industrial alliance alongside Siemens Energy, replacing TATA Steel within the alliance leadership role.
• EMSTEEL was named a 2024 Steel Sustainability Champion by the World Steel Association, commended by the World Economic Forum, and received the Forbes Middle East Sustainability Leaders Award. It also won the Best Sustainable Manufacturing and ICV (In Country Value) Excellence Awards at the Make it in the Emirates Awards 2024.

Hamad Al Hammadi, Chairman, EMSTEEL, said: “2024 has been a year of transformation for EMSTEEL. With the evolution of our corporate identity and our key business divisions, our team has demonstrated exceptional adaptability and focus, enabling us to deliver innovative solutions and services, and to continue creating value for our stakeholders. These efforts reaffirm our vision to lead the industry toward a low-carbon future while strengthening our position as the UAE’s largest publicly traded steel and building materials manufacturer.”

Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “In 2024, EMSTEEL demonstrated resilience in navigating a dynamic and challenging market environment. Despite these headwinds, we remain committed to innovation, sustainability and accelerating the adoption of low-carbon solutions. A key milestone is our pilot green hydrogen project with Masdar, a critical step in decarbonizing this hard-to-abate sector.

Looking ahead, we embrace our role as pioneers in sustainable innovation, laying the foundation for a low-carbon iron hub, with strategic partnerships driving our vision of a more sustainable and resilient future for all. The UAE’s expanding construction sector, with $772 billion in ongoing and upcoming projects, further strengthens our growth strategy. With 52% of projects in planning, design, or tender stages, the country’s infrastructure boom will continue to drive demand for sustainable steel and building material solutions, positioning EMSTEEL as a key enabler of economic and developmental progress.”

Our experts will share insights on how decarbonization is driving innovation, enhancing operational efficiency, and aligning with economic growth.

EMSTEEL (ADX: EMSTEEL) (“the Group”), one of the largest publicly traded steel and building materials manufacturers in the region, has forged strategic partnerships to pioneer streamlined raw material transport and cross-border rail connectivity in the GCC, while fostering economic collaboration between the UAE and Oman. The landmark agreements highlight a shared commitment to efficient, sustainable transportation of raw materials critical to EMSTEEL’s cement production, while also aligning with the UAE’s Operation 300bn strategy and Oman’s Vision 2040.

The primary agreement, signed with Hafeet Rail Infrastructure LLC, the region’s first cross-border rail network connecting the Sultanate of Oman and the United Arab Emirates, highlights how EMSTEEL and Hafeet Rail will collaborate closely to undertake specific roles and responsibilities.

Hafeet Rail will develop an integrated logistics solution to ensure the seamless transportation of limestone and red shale. Leveraging the region’s first cross-border railway and built to the highest standards of efficiency and reliability, this service will optimise supply chain operations and enhance connectivity across key markets.

As the primary end-user of the transported materials, EMSTEEL will operate the EMSTEEL Rail Transfer Facility in Al Ain, UAE. This facility will be equipped with state-of-the-art railcar unloading stations, conveyor systems, and stockpile management systems to seamlessly integrate limestone and red shale—key raw materials sourced from Oman—into EMSTEEL’s cement production process.

The signed agreement between the two parties would secure the transport of raw materials from Oman to the UAE for up to 4.2 million tons per year. The partnership has an initial term of 15 years, with an option to extend for a further 15 years on similar terms.

This partnership provides significant strategic benefits. For EMSTEEL, it ensures a cost-effective and sustainable supply chain that supports the company’s growth in cement production. For Hafeet Rail, the agreement strengthens its role as a key enabler of environmentally responsible industrial growth, reducing carbon emissions through rail transport, promoting cross-border trade, and driving economic integrationin alignment with the national strategies of both countries.

EMSTEEL has formalized an agreement with Minerals Development Oman (MDO), the premier mining entity in Oman. Under the terms of this agreement, MDO will Oversee the sourcing of the quality of industrial minerals, thereby guaranteeing compliance with the rigorous standards established by EMSTEEL.

For MDO, this project signifies Oman’s potential to effectively harness its mineral resources to foster regional industrial development and stimulate economic growth.

Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit. It reflects our commitment to sustainability and operational excellence while symbolising the growing economic collaboration between the UAE and Oman. By leveraging regional resources and infrastructure, this partnership demonstrates how we can collectively drive industrial growth and build a more sustainable future.”

Eng. Mattar Al Badi, CEO of Minerals Development Oman stated “The cooperation we signed today with Emsteel as part of the Hafeet Rail Project demonstrates Minerals Development Oman’s commitment to strengthening strategic regional partnerships and unlocking new opportunities for the evolution of the mining and downstream industries in Oman and the UAE. This collaboration takes advantage of the significant potential of the Oman-UAE railway network led by Hafeet Rail. Furthermore, it supports our sustainability initiatives by implementing more efficient and environmentally friendly logistics solutions.”

EMSTEEL Group remains committed to delivering high-quality, sustainable solutions to meet the region’s industrial and construction needs. As the UAE’s leading publicly listed steel and building materials company, it continues to pioneer initiatives that drive regional growth and economic collaboration.

EMSTEEL is proud to report an Emiratisation rate of 52% within its current workforce, reflecting its commitment to accelerating the effective participation of UAE nationals across different areas of its operations, in addition to providing them with sustainable and aspirational career opportunities. Furthermore, the group encompasses over 600 Emirati professionals (98 of which are Emirati females), who hold important roles within leadership, operations and planning, ensuring that they play a key part in driving the UAE’s manufacturing sector’s sustainable growth.

Eng. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said: “At EMSTEEL, we are deeply committed to supporting Emirati talent and enabling UAE nationals to lead the future of the manufacturing sector, in line with the UAE’s ambitions of driving sustainable economic growth. We are creating impactful initiatives that promote capabilities, expertise and leadership skills, allowing Emirati participants to attain strategic decision-making skills, and enabling them to respond to market demands and challenges effectively. Our training programmes are creating at a global caliber, aiming to reinforce the manufacturing of steel and building materials as a key pillar of the UAE’s economy.”

EMSTEEL’s Career Aspiration Programme, which was launched in 2019, offers participants quality training over the course of three years, combining both theoretical and practical applications, within a real-life work environment. Since its launch, 167 Emiratis have joined the programme, where they received training to enhance their technical and leadership skills, where they can then partake in leading roles within the sector. In 2025 alone, 55 Emiratis graduated from the programme.

Furthermore, EMSTEEL provides an array of world-class training programmes, including leadership development programmes focused on cultivating the next generation of leaders in the steel industry, scholarship programmes based on collaborations with UAE universities to support academic and technical education for UAE Nationals, and on-the-job training, providing practical experience in technical and managerial roles to ensure readiness for industrial challenges.

Through its focus on investing in Emirati talent, EMSTEEL reinforces its commitment to playing a tangible role in driving the UAE’s economic growth, and promoting manufacturing excellence in line with the UAE’s goal of becoming a global industrial pioneer.

Through collaboration and innovation, we are reinforcing our commitment to the ‘Make It in the Emirates’ vision and creating opportunities for Emirati talent and businesses.