UAE announces a $2 billion iron ore supply contract with Bahrain
Emirates Steel Arkan (ESA) and Bahrain Steel Company (BSC) have signed a major five-year iron ore pellet supply agreement.
Formalized as part of Bahrain's Industrial Partnership for Sustainable Economic Growth plan, this $2 billion transaction is a critical deal. This agreement strengthens and expands the long-standing cooperation between Bahrain Steel and Emirates Steel Arkan.
Key Agreement Details
This all-inclusive deal stipulates that Bahrain Steel will supply Emirates Steel Arkan with premium iron ore oxide pellets on a yearly basis. As an example of the potential of cross-border partnerships, the strategic alliance is expected to have a significant effect on the iron and steel industry in the region and promote sustainable economic growth.
Strategic Growth and Economic Ties
Eng. Saeed Ghumran Al Remeithi, Group CEO at Emirates Steel Arkan, emphasized the strategic significance of the partnership. The alliance aims not only to foster integrated industrial growth and ensure a stable supply chain but also to enhance the foundations of steel manufacturing capabilities. Furthermore, the partnership aligns with the UAE's vision of strengthening collaboration and promoting multilateral cooperation within the GCC. The initiative is in harmony with the goals of the Integrated Industrial Partnership for Sustainable Economic Development, launched in 2022 to achieve resource integration among partner countries.
Historic Collaboration for Growth
Bahrain Steel's Group CEO, Dilip George, emphasized the historic nature of this partnership, signaling the start of a new chapter in both companies' growth and cooperation. Their commitment to providing Emirates Steel Arkan with high-quality iron ore oxide pellets that meet its changing needs is reflected in the five-year deal. The cooperation is thought to be a vital component of the Industrial Partnership for Sustainable Economic Growth's economic development programs.
Aligned with the National Vision
The partnership not only addresses the immediate needs of the involved entities but also aligns with broader national visions for economic development, regional collaboration, and resource integration. The significance of this contract extends beyond its financial value, representing a commitment to mutual growth and sustainable practices within the iron and steel sector.