Forging a greener future: EMSTEEL's group CEO on rethinking steel, sustainability and innovation
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As the UAE accelerates toward its industrial and sustainability goals under initiatives like Operation 300bn, Engineer Saeed Ghumran Al Remeithi, group CEO of
In this interview, Al Remeithi discusses how the company is leveraging AI, green hydrogen, carbon capture, and smart manufacturing to decarbonise operations, improve efficiencies, and expand its
Innovation is a term that's frequently used in many sectors today. What does it mean in the context of industries such as steel and building materials in the UAE, a nation now renowned for its unique blend of policies, vision, and resources that allow companies to scale innovation for global impact?
The UAE is a hub for innovation due to its forward-thinking regulatory framework and supportive ecosystem, which includes a commitment to sustainable development. For us, being part of this ecosystem allows us to develop scalable, exportable innovations, helping us address challenges and create solutions that can have a global impact.
The UAE's vision enables us to innovate with purpose, focusing on tangible needs rather than simply changing for the sake of change.
With shares of 10% in Abu Dhabi's manufacturing activity output and 60 per cent in the UAE's steel market, we are proud to be a pillar of the country's industrial sector.
We have launched a range of all-encompassing and strategic initiatives to support national Emiratisation goals and drive the future of the UAE's critical manufacturing sector in line with the national Operation 300bn strategy, reinforcing the UAE's position globally as a leader in advanced industries.
Additionally, we see innovation as a strategic differentiator that enables us to future-proof our business against market disruptions, global supply chain challenges, and shifting regulatory landscapes.
Through smart manufacturing, AI-powered automation, and sustainable steel production, we are setting a benchmark for the region's industrial transformation.
Tell us more about EMSTEEL's approach to innovation and how it has translated into growth.
Between 2020 and 2024, our innovation and investment expenditure at EMSTEEL grew by 127 per cent. This significant growth reflects our focus on integrating innovation into our operations, particularly in sectors like steel and building materials that play such a key role in modern infrastructure and urbanisation.
This commitment to innovation is not only advancing our industrial capabilities but also ensuring that we're contributing to sustainability and economic development on a larger scale.
One key driver of our growth is our focus on digitalization and advanced manufacturing techniques. By adopting predictive maintenance using AI, IoT-based real-time monitoring, and process automation, we have significantly improved operational efficiency, reduced downtime, and optimised resource consumption.
Furthermore, our expanding global footprint — with exports reaching over 70 countries — is a direct result of our commitment to product innovation and high-performance, low-carbon steel solutions.
Our continuous investment in R&D, strategic partnerships, and green technologies is ensuring long-term sustainability and resilience in an evolving industrial landscape.
Steel and cement are critical sectors, but they also face major challenges, particularly when it comes to emissions. What are the environmental impacts of these industries, and how are you addressing them?
Both steel and cement production are significant contributors to global CO₂ emissions, with steel accounting for 7-9 per cent of direct emissions from fossil fuels and cement production accounting for another 7-8 per cent. These industries face increasing pressure to transition to more sustainable, low-emission alternatives.
We are committed to reducing emissions while maintaining competitiveness. For instance, by 2030, we aim to reduce our greenhouse gas emissions by 40 per cent from 2019 levels, with the ultimate goal of achieving net-zero emissions by 2050. This focus on clear targets and emissions reductions is essential for driving long-term sustainability.
In addition to carbon capture technologies and green hydrogen steelmaking, we are implementing closed-loop water recycling systems, waste heat recovery initiatives, and alternative raw materials to further enhance our environmental performance.
Our sustainability agenda aligns with Abu Dhabi's Industrial Strategy, which emphasises industrial decarbonisation, energy efficiency, and responsible resource management to establish the UAE as a leader in low-carbon industrial production.
Can you share some specific examples of how innovation is being integrated into your operations to address these challenges?
One key innovation is carbon capture technology. We are the first steelmaker in the world to capture a portion of our CO₂ emissions, which allows us to operate with a carbon intensity 45 per cent lower than the global average.
Additionally, we partnered with Masdar to launch our pilot project, the first-of-its-kind in MENA, which uses green hydrogen to extract iron from iron ore, a key step in steelmaking. The pilot project is now fully operational and has successfully commenced the production of green steel.
With a capacity of 2.1 MW, the pilot project can produce 368 tonnes of green hydrogen a year, enabling the production of up to 5,000 tonnes of green steel annually. The groundbreaking project will abate up to 3,680 tonnes of CO₂ per annum — equivalent to the carbon sequestration of approximately 168,000 trees and the carbon emissions of approximately 800 passenger vehicles.
The green hydrogen pilot project is a direct reflection of Abu Dhabi's Low Carbon Hydrogen Policy, which aims to establish hydrogen as a critical clean energy source. This policy plays a vital role in ensuring economic growth, sustainability, and energy security, further strengthening the UAE's position as a leader in the global hydrogen economy.
We have already signed an MoU with leading Abu Dhabi-based developer Modon, reflecting a strategic alliance to affirm them as the first real estate developer to use low-carbon steel in the UAE.
The group has also made significant strides in advancing our ambitious Low-Carbon Iron Supply Chain project. A comprehensive feasibility study is currently underway for this transformative initiative, with the goal of positioning Abu Dhabi as a global leader in sustainable steel production.
Beyond emissions reduction, we are also exploring AI-driven efficiency models, blockchain for supply chain transparency, and advanced material science innovations to further enhance our sustainability efforts.
Besides environmental impact, how does innovation contribute to operational efficiency or product improvement?
Innovation isn't just about reducing emissions; it's also about making our day-to-day operations more efficient and effective.
For example, we use high-tensile steel, which reduces overall steel consumption by 18-24 per cent, contributing to more sustainable and efficient construction practices.
Additionally, we've integrated AI into our safety protocols, using smart cameras to detect missing protective equipment and unsafe behaviour, which has significantly reduced worker accidents and enhanced safety standards across our operations.
We have also announced the launch of our Asset Enhancement Programme — a strategic initiative with a CapEx of approximately Dhs625m.
Phase 1 of the enhancement program will focus on upgrading our production capabilities. This includes the introduction of a new generation of high-strength rebars and advanced heavy-section products, significantly expanding our product portfolio to cater to evolving market demands for sustainable construction.
Phase 2 of the enhancement programme ensures the production of high-carbon and special alloy billets required for the new product range.
The GCC market currently relies on imports for VA-grade wire rod products, with demand expected to grow at a CAGR of 7-10 per cent over the next decade.
By overcoming existing mill limitations and expanding our product portfolio, we are poised to enhance innovation for key sectors including infrastructure, energy, industrial applications, petrochemicals, and automotive components.
Beyond production, digital twins and predictive analytics are playing a crucial role in our operations, allowing us to minimize maintenance costs, optimize logistics, and reduce waste generation.
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