A new steel plant planned for Mussafah, Abu Dhabi, will cater to UAE demand and fulfil some of the surging requirements of the Middle East, the project’s promoters say.

Dubai Investments, a diversified investment conglomerate  listed on  the Dubai Financial Market, announced a joint venture with Abu Dhabi National Company for Building Materials PSC (Bildco) to set up the plant with annual capacity of 300,000 tonnes of reinforced steel bars and investment of Dh250 million ($68.07 million).

Dubai Investments’ wholly owned subsidiary Dubai Investments Industries (DII) will hold 51 per cent of the stake with Bildco accounting for the remainder shares. An MoU was signed by Mohammed Al Raqbani, general manager of DII, and Dr Nasser Saif Al Mansoori, board member of Bildco. The new plant is expected to go on stream by the end of 2017 at the Industrial City of Abu Dhabi (ICAD) III in Mussafah.

According to industry estimates, the steel sector in the UAE has witnessed a steady upswing over the past few years and is expected to grow by nearly 5 per cent in the next three to four years, thanks mainly to growing demand from the oil and gas and construction sectors with demand expected to be strong from infrastructure developments for Expo 2020.

A ‘STRATEGIC FIT’

Khalid Bin Kalban, managing director and CEO of Dubai Investments, said: “Dubai Investments’ joint venture for the Bildco steel plant is a major step forward to not only cater to the domestic demand for steel with rampant construction across the UAE, but also capitalise on surging market requirements for steel across the Middle East. Dubai Investments has a strong portfolio in the building materials domain and this joint venture with Bildco for steel rebars is a strategic fit to further strengthen the company’s leadership in the sector.”

Saif Darwish Al Ketbi, chairman of Bildco, remarked: “Since its inception, Abu Dhabi National Company for Building Materials has contributed significantly to the growth and building of infrastructure in the UAE, earning an unmatched reputation as an innovative company. Bildco’s joint venture with Dubai Investments is aimed at creating new demand for steel across the UAE and region and is a significant milestone in its growth plans.”

The construction sector is the biggest consumer of steel in the Middle East, accounting for an estimated 90 per cent of steel use. As a result, the market for steel rebars in the UAE and the GCC is expected to grow consistently in the next decade, according to a Dubai Investments’ spokesman.

The company has 19,800 shareholders and a paid-up capital of Dh4 billion. Incorporated in 1995, it has grown exponentially with investments in a number of businesses across three core sectors – real estate, manufacturing and the financial sector across the UAE and the Middle East.

Dubai Investments currently has over 40 subsidiaries and joint ventures under its portfolio, across a wide array of industries and continues to seek new investment opportunities in new sectors, locally and internationally, as part of its strategic expansion plans.