Emsteel Boosts Middle East Connectivity with Oman's MDO & Hafeet Rail Deals
Deal News | Feb 06, 2025 | Zawya
Emsteel, a prominent steel and building materials manufacturer, has solidified strategic partnerships with Hafeet Rail Infrastructure and Minerals Development Oman (MDO) to enhance raw material sourcing and logistics. The alliance with Hafeet Rail focuses on using the region's first cross-border rail network to facilitate seamless transportation of limestone and red shale, integral to Emsteel's cement production, between Oman and the UAE. This agreement will ensure an annual transportation capacity of up to 4.2 million tons, securing a cost-effective and sustainable supply chain for Emsteel, with an initial contract term of 15 years, extendable by another 15 years. Concurrently, the agreement with MDO ensures the quality and compliance of minerals sourced from Oman, underscoring the potential of Oman’s resources to drive economic growth. These partnerships align with the strategic national visions of the UAE and Oman, emphasizing environmentally sustainable logistics and cross-border trade. The collaboration signifies a mutual commitment to economic integration and regional industrial development.
Sectors
- Logistics and Transportation
- Mining
- Construction Materials
Geography
- Oman – The agreements involve sourcing raw materials and leveraging transport infrastructure within Oman, emphasizing its strategic role in the partnership.
- United Arab Emirates – As the location of Emsteel and primary operational base for the rail transfer facilities, UAE is crucial to the load-out and use of transported materials.
Industry
- Logistics and Transportation – This industry involves the efficient management and transport of goods. The Emsteel and Hafeet Rail partnership highlights the logistical efforts to streamline raw material transportation using cross-border rail infrastructure.
- Mining – This industry consists of the extraction of valuable minerals. Minerals Development Oman plays a critical role in sourcing quality industrial minerals for Emsteel.
- Construction Materials – Emsteel operates in the building materials sector, critically relying on raw materials like limestone and red shale for cement production.
Financials
- 4.2 million tons per year – The annual capacity for raw materials transportation from Oman to the UAE as per the agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Emsteel | Target Company | Company | A leading publicly listed steel and building materials manufacturer in the UAE. |
| Hafeet Rail Infrastructure | Transport and Logistics Partner | Company | Operator of the region's first cross-border rail network connecting Oman and the UAE. |
| Minerals Development Oman (MDO) | Raw Material Supplier | Company | Oman's premier mining entity responsible for sourcing quality industrial minerals for Emsteel. |
| Eng Saeed Ghumran Al Remeithi | Executive | Person | Group Chief Executive Officer of Emsteel. |
| Eng Mattar Al Badi | Executive | Person | CEO of Minerals Development Oman. |