EMSTEEL Signs Landmark Deals To Boost GCC Rail Connectivity, UAE-Oman Economic Ties

EMSTEEL, a leading publicly traded company in steel and building materials, has signed agreements to enhance the transportation of raw materials and expand cross-border rail connectivity within the GCC. These partnerships are aimed at strengthening economic cooperation between the UAE and Oman.

The agreements align with the UAE's Operation 300 billion strategy and Oman's Vision 2040, both of which emphasize industrial growth and regional development in the region. They also seek to optimize the efficiency and sustainability of transporting raw materials for EMSTEEL's cement production.

The agreement between the two parties will allow up to 4.2 million tonnes of raw materials to be transported from Oman to the UAE each year. The partnership will last for an initial 15 years, with the option to extend for another 15 years under similar conditions, WAM reported.

This collaboration offers significant advantages. For EMSTEEL, it guarantees a reliable, cost-effective, and sustainable supply of raw materials essential for cement production.

For Hafeet Rail, the deal strengthens its role in promoting eco-friendly industrial growth by using rail transport to reduce carbon emissions. It also boosts cross-border trade and economic cooperation, supporting the national development plans of both countries.

"This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit," EMSTEEL's Group Chief Executive Officer Saeed Ghumran Al Remeithi.

"It reflects our commitment to sustainability and operational excellence while symbolizing 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," he added.

Mattar Al Badi, CEO of Minerals Development Oman, said that the agreement with EMSTEEL under the Hafeet Rail Project shows the company's commitment to building strong regional partnerships.

He added that it will create new opportunities for the mining and downstream industries in Oman and the UAE. The partnership will also use the Oman-UAE railway network managed by Hafeet Rail and support sustainability efforts by using more efficient and eco-friendly transport solutions.

By reducing dependence on road transport, the project is expected to cut emissions significantly, helping both countries achieve their sustainability goals.