Al Jazeera Steel Products Co. reported a 93pct surge in net profit for 2024, reaching OMR 7 mln (USD 18.3 mln), up from OMR 4 mln in 2023, according to its latest financial statement. Revenue rose 3pct YoY to OMR 146.68 mln (USD 379.9 mln), compared to OMR 142.4 mln the previous year.
The company attributed its strong profit growth to a sharper focus on profitability, optimized sales, inventory management, and cost control. It also benefited from a rebound in the construction sector and new project awards, particularly in Saudi Arabia and the UAE, while construction activity in Oman remained steady.
In 2024, production volume increased 1pct YoY to 452,357 tons, while sales volume remained stable at 476,789 tons.
Chairperson Amal Suhail Salim Bahwan noted that geopolitical events continued to impact the global economy, a trend expected to persist. While China’s domestic consumption growth fell short of expectations, stimulus measures are anticipated to take effect soon. Meanwhile, European economies stagnated, and global markets closely watched U.S. economic policies under the new administration.
Despite challenges in developed markets, the GCC remained a stronghold for steel consumption, supported by major projects in Saudi Arabia and the UAE. Regional project awards hit a record USD 264 bln in 2024, with Saudi Arabia leading at USD 144.3 bln, a 22pct increase YoY, while the UAE and Oman held steady at USD 81 bln and USD 11 bln, respectively.
Investment trends in the GCC shifted in 2024, with increased focus on power, oil, and transport over construction. In response, Al Jazeera Steel upgraded its tube mills to serve the oil and gas sector in Oman and secured American Petroleum Institute (API) approval for its monogram, expanding its industry reach. It also enhanced its merchant bar mill to offer higher-end construction materials.
Looking ahead, the company expects 2025 may bring some geopolitical resolutions, though trade war concerns persist. Markets are closely monitoring U.S. tariff policies and rising Chinese imports, which could pose challenges. Despite external uncertainties, Al Jazeera Steel remains cautiously optimistic, anticipating continued government-led infrastructure investments and sustained interest from international investors in the residential sector.
Established in 1996, Al Jazeera Steel Products Co. is a major steel producer with operations divided into two business segments: a tube mill and a merchant bar mill. The company’s tube mill facilities consist of four production lines with a combined annual capacity of 300,000 tons. The merchant bar mill also has an annual capacity of 300,000 tons and produces a range of steel products, including channels, angles, flats, squares, rounds, and rebars. In Saudi Arabia, Al Jazeera operates a subsidiary focused on importing and selling steel products made at its main plant in Oman. As part of its expansion strategy, the company is establishing a 450,000-ton medium section mill in Kezad, Abu Dhabi, UAE.
1 USD / 0.38 OMR
