Emsteel enters key deals with Oman's MDO, Hafeet Rail

Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, has forged strategic partnerships to streamline raw material sourcing from Oman and cross-border rail transport.

The agreements have been signed with Hafeet Rail Infrastructure, the region’s first cross-border rail network connecting Oman and the UAE, and Minerals Development Oman (MDO), the premier mining entity in Oman.

The primary agreement, signed with Hafeet Rail Infrastructure, highlights how Emsteel and Hafeet Rail will collaborate closely to undertake specific roles and responsibilities.

Hafeet Rail will develop an integrated logistics solution to ensure the seamless transportation of limestone and red shale. Leveraging the region’s first cross-border railway and built to the highest standards of efficiency and reliability, this service will optimise supply chain operations and enhance connectivity across key markets, said Emsteel.

As the primary end-user of the transported materials, Emsteel will operate the Emsteel Rail Transfer Facility in Al Ain, UAE. This facility will be equipped with state-of-the-art railcar unloading stations, conveyor systems, and stockpile management systems to seamlessly integrate limestone and red shale — key raw materials sourced from Oman — into Emsteel’s cement production process.

The agreement would secure the transport of raw materials from Oman to the UAE for up to 4.2 million tons per year. The partnership has an initial term of 15 years, with an option to extend for a further 15 years on similar terms.

This partnership provides significant strategic benefits. For Emsteel, it ensures a cost-effective and sustainable supply chain that supports the company’s growth in cement production. For Hafeet Rail, the agreement strengthens its role as a key enabler of environmentally responsible industrial growth, reducing carbon emissions through rail transport, promoting cross-border trade, and driving economic integrationin alignment with the national strategies of both countries.

Emsteel has also formalised an agreement with Minerals Development Oman. Under the terms of this agreement, MDO will oversee the sourcing of the quality of industrial minerals, thereby guaranteeing compliance with the rigorous standards established by Emsteel.

For MDO, this project signifies Oman’s potential to effectively harness its mineral resources to foster regional industrial development and stimulate economic growth.

The landmark agreements highlight a shared commitment to efficient, sustainable transportation of raw materials critical to Emsteel’s cement production, while also aligning with the UAE’s Operation 300bn strategy and Oman’s Vision 2040, the company said.

Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer, Emsteel, said: “This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit. It reflects our commitment to sustainability and operational excellence while symbolising the growing economic collaboration between the UAE and Oman. By leveraging regional resources and infrastructure, this partnership demonstrates how we can collectively drive industrial growth and build a more sustainable future.”

Eng Mattar Al Badi, CEO of Minerals Development Oman, stated: “The cooperation we signed today with Emsteel as part of the Hafeet Rail Project demonstrates Minerals Development Oman’s commitment to strengthening strategic regional partnerships and unlocking new opportunities for the evolution of the mining and downstream industries in Oman and the UAE. This collaboration takes advantage of the significant potential of the Oman-UAE railway network led by Hafeet Rail. Furthermore, it supports our sustainability initiatives by implementing more efficient and environmentally friendly logistics solutions.”

The construction and infrastructure development phase is scheduled to enable operations by December 31, 2026. This ambitious timeline reflects the partners’ commitment to operational efficiency and long-term industrial growth. Additionally, by reducing reliance on road transport, the project is expected to significantly lower emissions, contributing to sustainability goals in both nations, the statement said.

Emsteel Group remains committed to delivering high-quality, sustainable solutions to meet the region’s industrial and construction needs. As the UAE’s leading publicly listed steel and building materials company, it continues to pioneer initiatives that drive regional growth and economic collaboration, the company said.