Demand for steel in Mena is rising at one of the quickest rates in the world. Now a UAE-Saudi partnership is looking to satisfy it.
ABU DHABI // Seizing an opportunity to meet an increasing demand for steel in the region, upstart company United Iron and Steel (UIS) chose Abu Dhabi as an ideal place to invest Dh1 billion and set up a manufacturing plant.
The World Steel Association says demand for the metal in the Mena region is expected grow by 4 per cent this year, increasing to 4.7 per cent in 2016 – some of the steepest growth rates in the world.
Company chairman Sheikh Mohammed Al Rahbani, from Saudi Arabia, said UIS was positioned well to capitalise on those forecasts by choosing Abu Dhabi.
The location decision was based on a number of factors, including the right infrastructure and security that accompanies political stability.
Sheikh Mohammed said: “We realised that they have fantastic infrastructure, including a low cost for energy.
“This is an incentive for investors. It’s the right environment.”
He said the new Mussaffah facility would produce painted and galvanised steel – a product where the alloy is treated with a protective, rustproof coating. It will be used for a variety of applications, including construction and home appliances.
Seventy per cent of the GCC’s galvanised steel is imported, he said.
But the initial goal of UIS – a joint venture between Saudi Arabia’s Safid Group and the UAE’s Abdul Jalil Group – is not to compete with large-scale steel manufacturers, but to produce 250 metric tonnes. Its first full year of production is expected to be 2017.
By 2019, the company’s goal is to operate at capacity, producing as much as 500 metric tonnes of steel each year.
At full capacity, the plant will require 20 megawatts of electricity.
Describing Abu Dhabi’s hydro costs as “cheap”, Sheikh Mohammed said the lower operating expenses would offer a competitive advantage.
Logistically, the new plant will be close to local and regional markets.
“Abu Dhabi is quite close to Dubai and only a day’s drive to Riyadh, with good roads too,” he said.
Potential export markets also include the rest of the GCC, North Africa and Europe. Sheikh Mohammed said the Riyadh-based Safid group will purchase about a fifth of the factory’s output, and a company in Abu Dhabi will buy a tenth.
He said setting up a business in the UAE was similar to what could be experienced in Europe.
“I would describe it as an easy process, I’m really happy with the system,” he said.
“Everything has gone smoothly, we had all the support of the government; we had no challenges at all.”
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Made in the UAE
An increasing flow of locally produced goods is positive news for the UAE’s energy dependent economy, but increasing manufactured exports will require overcoming some significant obstacles.
This five-part series profiles companies, products and goods, all made in the UAE.
■ Made in the UAE: Credibility supplied by Strata's high flyers
■ Made in the UAE: Home grown success, one cup at a time
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esamoglou@thenational.ae
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
A State of Passion
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Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Killing of Qassem Suleimani
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
SCORES
Yorkshire Vikings 144-1 in 12.5 overs
(Tom Kohler 72 not out, Harry Broook 42 not out)
bt Hobart Hurricanes 140-7 in 20 overs
(Caleb Jewell 38, Sean Willis 35, Karl Carver 2-29, Josh Shaw 2-39)
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Types of policy
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
RESULT
Manchester City 1 Sheffield United 0
Man City: Jesus (9')
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
