Emirates Steel Arkan, the largest publicly traded building materials company in the UAE, will focus on export opportunities in Asian countries and emerging markets this year after it posted a healthy first-quarter profit, following its merger.
"Good markets for us have been the US, Europe and the Far East. These have been robust markets ... for us and we have a good base in these markets," Saeed Al Remeithi, group chief executive of Emirates Steel Arkan, told The National.
"We are now looking for opportunities in Asian countries and emerging economies."
Net profit for the three-month period to the end of March, climbed to Dh72.6 million ($19.7m), compared to Dh1.2m for the same period in 2021, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded. Better operational performance and higher sales volumes bolstered the company's profitability.
Revenue jumped to Dh2.04 billion during the period, compared to Dh233.5m in 2021. About 90 per cent of the company's revenue this year is expected to come from Emirates Steel while Arkan, which specialises in building materials, will contribute 10 per cent, the company said.
"Our enhanced operational efficiencies and proactive approach to sales were supported by improved levels of demand and higher prices," said Mr Al Remeithi.
Emirates Steel, which completed its merger with Arkan Building Materials in the fourth quarter of 2021 to create an industrial group with assets of Dh13bn, has benefitted from higher sales owing to a strong demand in steel products.
Global steel demand is expected to grow 2.2 per cent this year after seeing a growth of 5.8 per cent in 2021, according to a forecast by the World Steel Association.
Emirates Steel supplies domestic and international markets with steel products such as wire rods, rebars, heavy sections and sheet piles — essential in construction.
Although Emirates Steel Arkan witnessed higher input costs last year, Mr Al Remeithi said the prices of the company's end products helped offset such costs.
Emirates Steel alone had its first quarter net profit surge more than four-fold to Dh6.1m due to higher exports of rebar, sections and sheet piles to regions including Asia and North America.
Sales of rebar, an important component in construction, rose 8 per cent to 462,000 metric tonnes in the first quarter due to increased demand in Asian markets while sheet piles sales grew four-fold, largely driven by exports to North America.
Arkan's net profit rose ten-fold to Dh11.5m in the first quarter following the implementation of a programme to improve the company's organisational structure, the statement said.
The programme helped save about $60m for the company last year and aims to save $150m for the company in the next three years, Stephen Pope, chief financial officer of Emirates Steel Arkan, said.
"We have a target to achieve from our transformation project over the next few years. The target is challenging but we're very much confident of delivering our commitment to the board."
Emirates Steel Arkan 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.
While Emirates Steel has a strong international presence, the management is seeking to start exports of Arkan's products as well, Mr Al Remeithi said.
"We plan to start exporting at least some of Arkan's products internationally this year."
The Abu Dhabi industrial company currently has a total steel production capacity of 3.5 million tonnes a year. Mr Al Remeithi said it is looking to expand production to tap into increased demand for steel but declined to mention a specific target.
Emirates Steel Arkan, which has a strong export network to Europe, also said it does not have any immediate plans to enter any new markets in Europe to fill the gap left by Ukraine, a major steel exporter.
But the company foresees a positive second quarter this year.
"Despite an increase in geopolitical tensions, the outlook for the second quarter is favourable and the efforts we have made to improve the performance of our business units will continue to provide opportunities for further growth.”
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What can victims do?
Always use only regulated platforms
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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
25-MAN SQUAD
Goalkeepers: Francis Uzoho, Ikechukwu Ezenwa, Daniel Akpeyi
Defenders: Olaoluwa Aina, Abdullahi Shehu, Chidozie Awaziem, William Ekong, Leon Balogun, Kenneth Omeruo, Jamilu Collins, Semi Ajayi
Midfielders: John Obi Mikel, Wilfred Ndidi, Oghenekaro Etebo, John Ogu
Forwards: Ahmed Musa, Victor Osimhen, Moses Simon, Henry Onyekuru, Odion Ighalo, Alexander Iwobi, Samuel Kalu, Paul Onuachu, Kelechi Iheanacho, Samuel Chukwueze
On Standby: Theophilus Afelokhai, Bryan Idowu, Ikouwem Utin, Mikel Agu, Junior Ajayi, Valentine Ozornwafor
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
Landfill in numbers
• Landfill gas is composed of 50 per cent methane
• Methane is 28 times more harmful than Co2 in terms of global warming
• 11 million total tonnes of waste are being generated annually in Abu Dhabi
• 18,000 tonnes per year of hazardous and medical waste is produced in Abu Dhabi emirate per year
• 20,000 litres of cooking oil produced in Abu Dhabi’s cafeterias and restaurants every day is thrown away
• 50 per cent of Abu Dhabi’s waste is from construction and demolition
