Posted on 13 Jan 2026
Leading real estate developers and contractors in the United Arab Emirates have raised concerns with senior government officials over elevated domestic rebar prices and wide margins between billet and rebar, market sources tell Kallanish.
During a meeting held around ten days ago, industry representatives compared UAE rebar prices with those in other global markets and called for measures to address what they described as persistently wide spreads. However, sources say they were informed at senior level that Emirates Steel, the state-owned producer, remains the market price setter and that no policy shift is expected.
One source says contractors urged authorities to ease rebar imports from Türkiye and other lower-priced origins. Türkiye supplied around 70,000 tonnes of rebar to UAE last year versus zero a year earlier, according to Turkish foreign trade data, although this supply is not seen materially impacting the UAE market.
However, market participants note that large minimum cargo sizes of around 30,000t, combined with storage constraints and the risk of surface oxidation during prolonged storage, have discouraged import activity. A 10% import duty also limits the economic viability of overseas purchases, the source adds.
Meanwhile, new developments have emerged in the secondary market. Saudi Arabia-origin rebar is currently being offered by a stockist based in Jebel Ali Free Zone at around AED 2,300/tonne ($626) delivered, although payment terms remain unclear.
Sources say end-user purchasing patterns are shifting in the secondary market, affecting sales volumes. Supply constraints linked to maintenance shutdowns at the benchmark mill, particularly for 40mm rebar, have reduced availability, prompting some buyers to turn away from traditional suppliers.
Sales of Oman-based Jindal and UAE’s Union rebar in the retail market have also softened slightly. These are traditionally the highest-priced suppliers in this market. Demand for AGSI and Qatar Steel FZE material has increased, supported by comparatively lower prices.
This week, the benchmark mill's rebar in the retail market is at AED 2,670-2,690/t ($727-732), and at AED 2,520-2,550/t for Jindal and Union, and AED 2,500-2,2510/t for other suppliers. These are on a delivered and against credit basis, excluding 5% VAT.
Azizi Holding, one of the largest real estate developers in the UAE, applied to Khalifa Economic Zone Abu Dhabi (Kezad) to build a rebar rolling mill in July 2024. Azizi was looking for a nearly 300,000-square-metre plot of land to build a 600,000 tonnes/year rebar rolling mill that could start production no earlier than the fourth quarter of 2026. The project is progressing, but execution is reported to be running behind the original timeline
Source:Kallanish
