Abu Dhabi-based Arabian Gulf Steel Industries LLC (AGSI) has signed a memorandum of understanding with real estate developer Fakhruddin Properties to support the use of low-carbon steel in upcoming developments.
Under the MoU, AGSI will act as Fakhruddin’s steel partner, focusing on integrating low-carbon materials at the design and engineering stages rather than a conventional supply-only arrangement.
AGSI’s low-carbon steel will be specified across relevant projects to support Fakhruddin’s decarbonization strategy. The companies will also explore a closed-loop model, whereby recycled steel generated within Fakhruddin’s developments could be reprocessed by AGSI and supplied back into future projects.
Asam Hussain, CEO of Arabian Gulf Steel Industries, said reducing embodied carbon requires closer collaboration between material producers and developers, adding that the partnership supports the integration of circular material flows with low-carbon steel production.
The partnership is expected to support circular supply chains and aligns with the UAE Net Zero 2050 Strategic Initiative, aimed at reducing emissions through local manufacturing and responsible material use.
AGSI is a privately owned steel producer and the largest scrap recycler in the UAE, with current annual production capacity of 720,000 tons of billet, 1 mln tons of rebar, and 240,000 tons of light and medium sections. The company has achieved net-zero emissions at its Abu Dhabi plant, becoming the first net-zero steel plant in the MENA region.