Engineer Saeed Ghamran Al Rumaithi, CEO of Arkan Group and CEO of Emirates Steel stated that the industrial sector is at the heart of the UAE vision, which seeks to accelerate the pace of economic diversification in the country. Saeed Ghamran explained that the strong results achieved by Emirates Steel Arkan” during the first quarter of 2022 emphasize the essential role played by the Group as the most prominent national company operating in the iron and steel manufacturing sector, building materials and construction to support local growth and enhance the “Made in UAE” brand.
Al-Rumaithi said in an interview with “Al-Khaleej”: “The strong performance of the Group during the mentioned period is the result of the gains of business consolidation that enhanced revenues and cross-selling opportunities that resulted from the successful merger between “Emirates Steel” and “Arkan Building Materials” in the last quarter of 2021. The Group’s net profit during the first quarter of this year amounted to 72.6 million dirhams, compared to 1.2 million dirhams for the same period in 2021, driven by high levels of operational efficiency and the application of a proactive approach to increasing rebar, iron wire coils, heavy structural sections and pivot panels sales at the local and global levels.”
Al-Rumaithi added, “The Company has been strengthening its competitive position by taking more measures that enhance value for shareholders, manufacturing high-quality products that meet the needs of our customers, and adopting production lines that are characterized by the highest levels of safety, effectiveness and efficiency, as well as production plants with extremely low carbon emissions. Emirates Steel Arkan has a leading position in the local market, as we provide 65% of the local market’s needs of rebar, coils of iron wire, heavy structural sections and pivot panels.
At the same time, the company continues to enhance its export markets, to 56 countries, with an increase of 50% over 2019.
He also added, “The Company is currently aiming to expand its customer base to include manufacturers, in addition to its existing customers in the field of building materials, as work is currently underway to provide new iron products to complement its wide range of high-quality products that it offers to its customers in various markets. The company is manufacturing high-value-added products using the latest innovative, cutting-edge technologies and environmentally friendly processes that use much less energy than traditional coal-fired blast furnaces, allowing us to increase our current levels of CO2 capture.”
Al Rumaithi stated that the future growth prospects of the Group are promising and said, “We will continue to reap the fruits of the merger between Emirates Steel and Arkan Building Materials during 2022. Based on expectations, steel operations will contribute 90% of the Group’s annual revenue. We have officially adopted “Emirates Steel – Arkan” as our brand name and changed our trading symbol on the Abu Dhabi Securities Exchange to “EMSTEEL”.
Over the coming years, the Group will remain committed to enabling the growth and economic diversification goals of the UAE in line with the objectives of the national strategy for industry and advanced technology, “the 300 billion project.
The economic performance of the UAE constitutes a bright spot in the history of global achievements, and we are proud of our great country’s continuation on the right path towards achieving strong growth in the medium and long term.”
He concluded by saying: “According to a report by “Mordor Intelligence”, the construction industry in the country is expected to grow by 4.69% annually between 2022 and 2027, to reach $133.5 billion, and we are proud to continue our support for the wheel of economic growth in the UAE by providing our products for large projects. Like Etihad Rail and Guggenheim Abu Dhabi, and internationally, rising commodity prices amid supply chain disruptions present growth opportunities, as the group is well positioned for the long-term to benefit from strong demand from the local and global construction and manufacturing sectors.”