RAK Steel, the second-largest producer of rebars in the UAE, is investing $15 million to increase its production capacity for deformed steel reinforcement bars to 750,000 tonnes, a 50 per cent increase over its current capacity by the end of this year.

The move is part of a long-term strategy to cater to the gradual upturn in construction activities across the country, according to Ajay Aggarwal, the company’s CEO. RAK Steel is a joint venture with Ras Al Khaimah Investment Authority (Rakia).
“We want to be in a position to take advantage of the recovery,” says Aggarwal. “There has been a gradual resurgence in construction activities across the UAE, buoyed by the continued growth in tourism and residential development projects in all emirates. RAK Steel has accordingly received a marked increase in demand and now we are running to full capacity; this has been a key factor that has motivated us to push through with our expansion initiatives.”
The increase in capacity is expected to further boost the company’s market presence. “While several other companies follow obsolete standards, RAK Steel is one of the few worldwide that have adopted the latest BS specifications, an important factor that will further reinforce the company’s premium-quality brand in the market,” says Aggarwal.
“Furthermore, we believe that the entire country has managed to limit the impact of the global financial crisis through pro-active government intervention and various forms of stimulus packages. In about two years, we expect the construction market to get back to pre-2008 levels and thereafter maintain a growth trend of around 5 per cent. Our expansion initiatives are part of Rakia‘s grand design to cope with the present and future demand of the construction sector and ultimately complement the development initiatives across different industries, providing the backbone for a truly diversified and robust economy,” he says.
RAK Steel produces deformed reinforcement bars with diameters ranging from 8 mm to 40 mm in variable lengths of 6 to 18 m to both British and American standards. The company uses the superior Temperit process for manufacturing the rebars, which are certified by the Dubai Central Laboratory Department of Dubai Municipality for product quality and conformance to standards. It has also secured certification from Cares, a non-profit organisation based in the UK whose quality certification is recognised worldwide. The UAE is currently RAK Steel’s primary market, while it also exports its products to Oman, Saudi Arabia, Bahrain, Qatar and Iran.
Beyond raising the capacity of existing production lines, RAK Steel has launched a preliminary planning process towards becoming an integrated steel mill.