UAE-based EMSTEEL, one of the region’s largest publicly traded steel and building materials manufacturers, has announced its preliminary (unaudited) financial results for 2024.
The company reported revenues of AED 8.3 bln (USD 2.25 bln), a 6pct decline from AED 8.9 bln in 2023, attributed to fluctuations in global steel prices, heightened competition, and shifting demand trends amid economic uncertainties in key markets.
EMSTEEL’s profitability was impacted by an influx of low-priced Chinese steel exports, which pressured prices in its core markets, including the GCC, Europe, and the U.S. Despite this, the company posted a solid profit before tax of AED 432 mln (USD 117.6 mln) and a net profit after tax of AED 392 mln (USD 106.7 mln). Net profit was supported by the reversal of a COVID-era impairment, contributing AED 189 mln (USD 51.4 mln).
In 2024, EMSTEEL recorded EBITDA of AED 892 mln (USD 243 mln) with a margin of 10.9pct, down from 14.2pct in 2023. However, fourth-quarter EBITDA surged 81pct from Q3 to AED 247 mln (USD 67.2 mln), driven by rising UAE construction activity, which bolstered rebar demand and allowed for improved price realization and capacity utilization.
The Emirates Steel division generated AED 7.6 bln (USD 2 bln) in revenue, with an EBITDA of AED 680 mln (USD 185 mln), impacted by challenging global market conditions. The Emirates Cement division reported AED 0.8 bln (USD 200 mln) in revenue and EBITDA of AED 212 mln (USD 57.7 mln). The Pipes & Other segment, classified as assets held for sale amid an ongoing divestment process, recorded revenue of AED 156 mln (USD 42.4 mln).
Group CEO Eng. Saeed Ghumran Al Remeithi highlighted EMSTEEL’s resilience in navigating a volatile market and reaffirmed its commitment to innovation and sustainability. He emphasized the company’s pilot green hydrogen project with Masdar as a key step in decarbonizing the steel sector. He also pointed to the UAE’s expanding construction sector, with USD 772 bln in ongoing and upcoming projects, as a critical driver of future demand for sustainable steel and building materials. With 52pct of projects still in planning, design, or tender stages, EMSTEEL is well-positioned to support the nation’s economic and infrastructure growth.
Headquartered in Abu Dhabi, EMSTEEL has a production capacity of 3.5 mln tons of steel and 4.6 mln tons of cement annually. The group exports to over 70 markets, accounting for 30pct of its sales. The company offers a diverse range of steel products, including wire rod, rebar, heavy sections, and sheet piles.
1 USD / 3.67 AED
