The “Emsteel” group, recognized as one of the leading companies in steel and construction materials production in the region, reported a net profit of 188 million dirhams for the first half of 2025, reflecting a growth of 7.7% compared to 174.5 million dirhams during the same period in 2024.
Revenue rose by 9%, reaching 4.3 billion dirhams, compared to 3.956 billion dirhams in the first half of the previous year.
The group announced its financial results for the first half, showcasing robust operational performance.
Sales of finished steel products increased by 24% year-on-year, amounting to 1.616 million tons, driven by elevated demand and full utilization of production capacity, allowing for the conversion of semi-finished products into finished ones that better serve customer needs.
Similarly, sales of cement and clinker saw a growth of 21% year-on-year, totaling 1.613 million tons. “Emsteel” achieved revenues of 4.3 billion dirhams, a 9% increase compared to the first half of last year, despite a 4% annual decline in the average prices of steel and a decrease in semi-finished product sales during the first half of 2025, which accounted for 9% of the revenue from the steel division in the same period of 2024.
The group reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of 540 million dirhams in the first half of 2025, reflecting a 6% year-on-year increase, with a profit margin of 12.6%, slightly down from 12.8% during the same period in 2024.
Engineer Saeed Ghamran Al-Rumaithi, CEO of the “Emsteel” group, stated to reporters upon announcing the group’s financial results for the first half that U.S. tariffs will have an indirect impact on their exports by affecting the group’s clients seeking to export to the U.S.
He added that while the U.S. market is significant, sales to it represent only about 2-3% of their overall products; hence, the impact will be long-term and indirect.
He further noted that the biggest challenge for the group comes from China and its steel products, which are being directed towards other markets, leading to an anticipated increase in Chinese steel exports to the region.
Al-Rumaithi called for clear legislation to protect the market from dumping practices related to Chinese steel products.
He expressed hope for regulations that would shield domestic products and safeguard them from unfair competition.
He mentioned that China exported 118 million tons last year, with expectations of 125 million tons in 2025, including 30 million tons in just the second quarter.
Al-Rumaithi emphasized the group’s strong competitive position, noting that they export products to 70 countries. He pointed out that consumers consider not just price but also quality and proximity to product sources, which differentiates them in the local market.
Regarding future plans, he indicated that “Emsteel” is focused on increasing production capacity. The group operates 16 advanced plants with a total annual production capacity of 3.5 million tons of steel and 4.6 million tons of cement. They are also investing over 600 million dirhams in an asset enhancement project in (ICAD 1), which will boost the group’s production capabilities.
On the outlook for steel and cement prices, the CEO mentioned that they cannot control market prices. They expect an increase in demand in the near future, but external factors will influence global price dynamics. Nonetheless, they remain optimistic about good local market conditions and foresee a rise in demand there.