Abu Dhabi-listed industrial manufacturer Emsteel is accelerating its push into high-value manufacturing with the roll-out of a high-strength steel rebar designed to slash material consumption and carbon emissions across major construction projects, the company said.
The new product, branded as ES600, is the highest-strength steel grade currently manufactured in the UAE. Developed to target high-rise tower developments and complex infrastructure projects, the material reduces total steel volume requirements by between 18 per cent and 24 per cent depending on project scale and design specifications, while also lowering logistics demand, transport requirements, and on-site rebar congestion, according to the company.
Certified to UAE and international standards, ES600 has been developed as a locally manufactured, high-performance steel solution that supports the construction sector’s increasing focus on engineering efficiency, material optimisation, and long-term structural resilience.
The product was officially launched during Emsteel’s “Building the UAE’s Future Together” event held in Dubai on May 21, which brought together stakeholders from across the UAE’s construction, engineering, and industrial sectors to discuss the role of advanced manufacturing and engineering capability in supporting the country’s next phase of urban and infrastructure development.
The launch follows a sharp recovery in first-quarter profitability, driven by aggressive cost-cutting and firmer pricing for finished products, despite volatile regional supply chains.
Emsteel, which is majority-owned by Abu Dhabi sovereign investor ADQ, expects the material efficiency to significantly alter construction logistics and environmental metrics in the Gulf region.
ES600 has been developed as a locally manufactured, high-performance steel solution.
The company estimates that every 10,000 tonnes of ES600 used eliminates 12,107 tonnes of carbon dioxide emissions by reducing transport needs and raw material use. In vertical tower engineering, this translates to an estimated reduction of one tonne of carbon dioxide per floor.
The manufacturer has already secured orders exceeding 200,000 tonnes of the new rebar for ongoing and confirmed residential and infrastructure developments across the UAE. To support the commercial scale-up, Emsteel is utilising its recently completed AED625 million ($170.2 million) asset enhancement programme, which expands specialised production capacity and integrates advanced shear systems capable of producing high-strength rebars.
The launch further reinforced Emsteel’s position as a strategic national enabler, with ES600 reflecting the group’s broader focus on industrial capability, advanced manufacturing, and alignment with the UAE’s industrial vision and Operation 300bn strategy.
Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer of Emsteel, says the product reflects a strategic pivot toward advanced engineering and higher-value manufacturing.
“Through continued investment in advanced manufacturing and product development, Emsteel is strengthening local industrial capability while delivering more efficient and resilient construction solutions. More broadly, this reinforces our role not only as a steel manufacturer, but as a long-term national partner contributing to the UAE’s economic diversification, industrial competitiveness, and development ambitions,” he adds.
Strong financial performance
The product expansion comes as the group locks in a strong financial performance for the opening quarter of 2026. Emsteel reported first-quarter net profit of AED299 million, representing a 246 per cent surge compared to the same period last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 82 per cent year-on-year to AED483 million. This pushed the group’s EBITDA margin up to 22.3 per cent, compared to 12.3 per cent in the first quarter of 2025, according to financial data details released by Emsteel.
Group revenues for the quarter stood at AED2.2 billion, remaining broadly in line with the corresponding period in the previous year. Profit margins were buoyed by lower raw material costs, ongoing internal optimisation initiatives, and a three per cent year-on-year increase in average selling prices for finished steel.
Operationally, the core steel division generated AED1.90 billion in revenue and an EBITDA of AED403 million, representing a 79 per cent YoY increase. Total steel sales volumes, comprising steel products and billets, fell six per cent to 768,000 tonnes, a decline the company attributed to a planned maintenance shutdown at one of its rolling mills in January.
Conversely, Emsteel’s cement division recorded a 31 per cent increase in revenue to AED269 million, with sales volumes of cement and clinker rising 32 per cent to 1.1 million tonnes on the back of resilient regional building activity. The division’s EBITDA doubled to AED80 million, reflecting a 169 per cent increase on a like-for-like basis when excluding a non-core pipe business divested in late 2025.
As of March 31, 2026, Emsteel increased its net cash position to AED1.297 billion, up from AED1.165 billion at the end of 2025. The company also secured an additional AED227 million under an existing working capital facility during the quarter to boost short-term liquidity, bringing its total available cash to AED1.524 billion.
To secure its downstream commercial pipeline and raw material supply chain, Emsteel finalised several commercial agreements during the quarter. The group signed memoranda of understanding with real estate developers Modon and Mered to collaborate on steel solutions for future property projects, and partnered with Metal Park to develop an integrated processing, storage, and logistics hub in Abu Dhabi.
On the supply side, Emsteel signed a five-year, AED600-million freight contract with Oldendorff Carriers to transport 5.2 million tonnes of iron ore pellets annually, aimed at stabilising supply reliability against broader global logistics uncertainties.
Al Remeithi states: “Emsteel has delivered a strong start to 2026, with resilient revenue performance and significantly improved profitability driven by disciplined cost optimisation and operational efficiency across the business. Our results reflect the strength of our integrated platform and our ability to adapt to evolving market dynamics while continuing to support the UAE’s industrial growth.”
“In light of ongoing regional developments, we remain attentive to potential impacts on market conditions and supply chains. While the outlook continues to evolve, we are taking a measured and flexible approach, prioritising resilience, operational agility, and disciplined risk management to navigate uncertainty and support our customers and stakeholders,” he adds.