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Demand for low-carbon and fully traceable steel in the United Arab Emirates (UAE) is rising as regulators tighten standards and developers pay more attention to the effects of carbon, Arabian Gulf Steel Industries (AGSI)’s chief executive officer Asam Hussain told Fastmarkets on Monday November 17.
The steel producer has positioned itself at the center of this transition, supported by its Net-Zero Steel platform, which earned the “Sustainable Product of the Year – Construction Material” award at the Middle East and North Africa Green Building Awards in November.
AGSI produces Net-Zero Steel using a fully electric steelmaking route based on 100% locally recycled raw materials. The process does not rely on iron ore, coke, or other high-emitting inputs found in a conventional blast furnace route, Hussain told Fastmarkets on the sidelines of the Middle East Iron and Steel Conference and Exhibition at Madinat Jumeirah Conference Center in Dubai on Monday.
Through efficiency improvements, circular input streams, and a clean-energy electric process, AGSI has achieved one of the lowest verified emissions intensities globally.
Its emissions profile stands at 0.14 tonnes of CO2 equivalent per tonne of crude steel, which is around 95% lower than traditional blast furnace-based steelmaking, and the company’s products are verified as carbon-neutral under PAS 2060. Every tonne used in construction enables a significant reduction in embodied carbon without developers needing to change specifications.
The UAE’s steel market has strengthened over the past year, driven by sustained activity in real estate and infrastructure, Hussain said.
Monthly rebar demand in the country has grown from 350,000 tonnes in January to 500,000 tonnes in November, market participants told Fastmarkets, linking it to the strong construction activity.
AGSI’s installed capacity – 720,000 tonnes of billet, 960,000 tonnes of rebar and 240,000 tonnes of sections – places it among the region’s largest recyclers of locally sourced scrap.
Even with expanded output, AGSI estimates it can meet only about 15% of the UAE’s long-product demand with certified Net-Zero Steel, which reflects the large size of the market and the increasing interest in certified low-carbon steel.
“Demand for certified, traceable and lower-carbon materials continues to rise as project developers and contractors place greater emphasis on embodied carbon performance,” Hussain told Fastmarkets.
According to AGSI, the Carbon Border Adjustment Mechanism (CBAM) is set to reshape steel trade by favoring producers with verified low-carbon footprints and transparency, pushing high-emissions mills to higher costs and encouraging more regional, traceable supply chains.
With concerns over low-priced, poorly verified imports rising, Hussain said the priority should be tighter checks and clearer standards instead of relying on protectionist measures.
As the UAE pushes deeper into low-carbon manufacturing, the producer remains focused on expanding its Net-Zero Steel platform and supporting national sustainability goals, with decarbonized steelmaking already playing a central role in how it operates.
AGSI aims to expand its construction-focused products, such as angles and channels, only where there is clear market demand and without compromising its Net-Zero Steel production model. “Sustainable growth comes from reinforcing what we do well rather than expanding for the sake of diversification,” Hussain told Fastmarkets.
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