Emirates Steel Arkan signs $2bn deal

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The five-year contract is worth $2 billion. (WAM)
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  • Under this agreement, Bahrain Steel will supply high-grade iron ore oxide pellets annually to Emirates Steel Arkan.
  • Saeed Ghumran Al Remeithi, Group CEO at Emirates Steel Arkan, said the agreement will also cement ties within the GCC.

Abu Dhabi, UAE — Emirates Steel Arkan (ESA) has signed a five-year iron-ore pellets (IOP) supply contract with Bahrain Steel Company (BSC).

The contract, valued at approximately $2 billion, was formalized at the Industrial Partnership for Sustainable Economic Growth initiative, held recently in Bahrain.

Under this agreement, Bahrain Steel will supply high-grade iron ore oxide pellets annually to Emirates Steel Arkan. This partnership is poised to significantly impact the iron and steel industry within the region, fostering sustainable economic growth and exemplifying the potential of cross-border collaborations, the firms said.

Saeed Ghumran Al Remeithi, Group CEO at Emirates Steel Arkan, said, “Through this strategic partnership, we aim to not only foster integrated industrial growth, ensure a stable supply chain and enhance the foundations of our steel manufacturing capabilities, but also strengthen economic ties within the GCC.”

He added that this initiative aligns with the UAE’s vision of bolstering partnerships and multilateral cooperation, as well as the goals of the Integrated Industrial Partnership for Sustainable Economic Development, launched in 2022 to achieve integration in resources, capabilities and experiences owned by the partnership countries.

Dilip George, Group CEO at Bahrain Steel, said, “We are honored to play a crucial role in supporting the economic development initiatives outlined in the Industrial Partnership for Sustainable Economic Growth. The five-year contract underscores our commitment to delivering high-quality iron ore oxide pellets to meet the evolving needs of Emirates Steel Arkan.”

The signing ceremony, which is part of the collaborative initiative comprising the UAE, Egypt, Jordan, and Bahrain, marked a key milestone in fostering economic ties within the region.

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