Oman’s Al Jazeera Steel Products improved profitability during the first half of 2026 despite lower sales volumes and challenging regional market conditions, although consolidated group earnings declined as higher operating and finance costs offset stronger operating performance.
During January-June 2026, group steel sales declined 1pct YoY to 256,985 tons, while revenue eased 1pct to OMR 75.61 mln (USD 198.97 mln). Consolidated net profit fell 6pct to OMR 3.88 mln (USD 10.22 mln).
On a standalone basis, the parent company posted a 13pct increase in net profit to OMR 4.84 mln (USD 12.75 mln) despite a 3pct decline in sales volume to 253,788 tons and a 2pct fall in revenue to OMR 74.62 mln (USD 196.37 mln).
The divergence between the group and parent company results was mainly attributable to higher administrative expenses and finance costs at the consolidated level, despite improved gross profitability.
The company said profitability improved through stronger procurement, agile supply chain management, cost optimization and a greater focus on higher-margin products and markets. It added that business conditions remained challenging following the escalation of the Middle East conflict since late February 2026, citing weaker demand, higher logistics costs and continued geopolitical uncertainty.
As part of its regional expansion, the company said its KEZAD subsidiary in the UAE has been successfully commissioned and commenced operations. The project comprises a 450,000 tons per year medium section mill located in Khalifa Economic Zone Abu Dhabi (KEZAD), which will strengthen the company’s product offering and manufacturing footprint in the GCC.
Al Jazeera Steel Products Co. SAOG is a leading manufacturer of tube and structural steel in the Middle East. The company’s facility produces tubular products, merchant sections, and rebars, with four tube-making lines having a total capacity of 300,000 tons per annum. Additionally, the merchant bar mill has a capacity of 300,000 tons per annum. The company exports to more than 40 countries across the Middle East, Africa, Europe and North America, and recently expanded its manufacturing footprint with a new production facility at KEZAD in the UAE.
1 USD / 0.38 OMR