US$50 million RAK Steel factory inaugurated
Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, inaugurated the US$50 million RAK Steel factory set up at the Al Ghail Industrial Park on Sunday evening. RAK Steel, a joint venture between Ras Al Khaimah Investment Authority (RAKIA) and Indian and Omani investors, has a capacity to manufacture 500,000 tonnes of deformed steel reinforcement bars (rebars) per year. The energy- efficient and environment- friendly steel rolling mill has a built up area of 16,000 square metres.
RAK Steel produces rebars from 8mm to 40 mm diameter in variable lengths of 6 to 18 metres to both British and American standards.
The establishment of RAK Steel comes at a time when the demand for steel is at an all time high, fuelled by the current construction boom in the UAE and the Middle East region. The Gulf Organisation for Industrial Consulting (GOIC) recently estimated that the UAE would use 44- 66 million tonnes of rebar products over the next 15 years. The value of projects under construction in the UAE alone is estimated at US$ 220 billion, while it is in excess of US$ 800 billion in the GCC as a whole, which would further boost the demand for steel.
Speaking at the function, Sheikh Saud said, according to WAM, that the new steel factory would contribute towards enhancing the ready availability of construction materials in the UAE, to meet the rapid development currently underway in the country. According to him, opening of RAK Steel marks the addition of yet another successful enterprise in the growing line of industries setting up base in the emirate. "The Government of Ras Al Khaimah is moving forward with its agenda of providing an investor friendly atmosphere which enables investors tap the competitive advantages available in the emirate across various sectors," Sheikh Saud added.
Dr. Khater Massaad, CEO of RAKIA and Chairman of RAK Steel, said, "RAK Steel has been established in line with the vision of H.H. Sheikh Saud bin Saqr Al Qasimi of making RAK and the UAE self sufficient in all building related materials. RAK Steel, which commenced commercial production in February 2008, will become the second largest producer of rebars in the UAE, and will effectively cater to the growing demand for steel in the region. The Gulf region has one of the highest per capita consumption levels of steel products in the world; at about 440 kgs, it is far higher than the world average of 182 kgs".