Emirates Steel Arkan, the largest public steel and building materials manufacturer in the UAE, has linked up with Japanese trading house Itochu and JFE Steel in a plan for a ferrous raw material production facility in Abu Dhabi.
The move could bolster the Emirates’ efforts to further lower the emissions of its industrial activities.
ESA, formed after the merger of Emirates Steel and Arkan Building Materials last year, and the two Japanese companies will carry out feasibility studies for the creation of the plant in the UAE capital, the steel manufacturer said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
The plan is intended to meet growing global demand for green steel.
“We are proud to be leading efforts among steel makers in the Middle East to decarbonise amid an intensification of the global drive to curb carbon dioxide emissions,” Saeed Al Remeithi, group chief executive of Emirates Steel Arkan, said.
“If hydrogen reduction becomes an established technology in the production of steel, Emirates Steel Arkan will rapidly harness it to further reduce its carbon emissions.”
The UAE aims to become carbon neutral by 2050 with new investments worth Dh600 billion ($163.4bn) planned in clean and renewable energy sources over the next three decades.
UAE companies are taking steps to reduce emissions in line with the national strategy.
Last year, Emirates Steel signed a preliminary agreement with Abu Dhabi National Energy Company, better known as Taqa, for the supply of green hydrogen to produce low-carbon steel.
Industrial conglomerate Emirates Global Aluminium is also focused on decarbonising its operations and developing its own technology to reduce emissions, Salman Abdulla, executive vice president of health, safety, sustainability, environment and quality at EGA, said at the Global Manufacturing and Industrialisation Summit in Dubai last year.
“Globally, some 80 per cent of the carbon dioxide emitted from steelmaking is the result of using coke in the blast furnace during the iron ore reduction process,” Mr Al Remeithi said.
“The group’s carbon footprint, however, is already significantly lower than that of its global peers thanks to its use of natural gas and advanced direct iron reduction technologies. The use of hydrogen might make our products even more environmentally friendly.”
As per the latest agreement, high grade iron ore will be imported into Abu Dhabi for the production of the ferrous raw material, currently expected to begin in the second half of 2025, and will be supplied to customers operating in Asia, including JFE Steel, ESA said.
Ferrous raw material will initially be produced through an enhanced decarbonised process using natural gas to reduce the iron ore, it said.
“The goal of the project is to create a low-carbon emission iron supply chain,” Jun Inomata, chief operating officer of metals and minerals resources division of Itochu, said.
“In this project, Itochu will be responsible for sourcing the high-grade iron ore, Emirates Steel Arkan will utilise the experience of operation of the direct reduction plant with carbon capture, utilisation and storage facility, and JFE Steel will use the ferrous raw material produced through this project as a steelmaking raw material and promote carbon dioxide emission reduction.”
The project will also make provisions for the adoption of renewable energy power sources as well as green hydrogen for the reduction process, according to the statement.
Established in 1998, Emirates Steel Arkan supplies domestic and international markets with products such as wire rods, rebar, heavy sections and sheet piles.
Last year, the Abu Dhabi company's exports represented 45 per cent of its total sales volumes while the balance was sold within the UAE, where the company maintains a 60 per cent market share.
The company has a total steel production capacity of 3.5 million tonnes a year.
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Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The five pillars of Islam
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
LIVERPOOL%20TOP%20SCORERS
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