The United Arab Emirates municipalities of Al Ain City and Abu Dhabi City have released a written notice that only Emirates Steel (ESI) products are to be used within their territories in any project, Kallanish learns following an investigation. The rule applies to all government infrastructure and construction projects approved after 17 August.

Al Ain City municipality circular no 11/2021 and Abu Dhabi city municipality circular no 43/2021 were released on 18 August, referring to Administrative Circular # 744 of 2021, regarding the use of Emirates Steel Factory products

The circulars were addressed to engineering and contracting companies asking them to abide by the terms. These say that the municipality will not issue any building permit for any project if not using Emirates Steel products. All contractors are obligated to use Emirates Steel products for all construction including use of rebar in concrete, and consulting offices are required to include the description of Emirates Steel for all construction works on construction plans.

When applying for a building permit: "It will be confirmed when carrying out the on-site technical inspection of the construction work that there is a notice of delivery of materials, and a purchase invoice approved by the project contractor and the supervision consultant." The conformity of materials with this notice must be confirmed and no work will be approved without conformity to the notice.

This move has staggered sector participants and they said they find it unfair, and against the nature of the open market. Steel sector representives visited the municipal governments on Thursday to complain that the prescriptions in the notice were too narrow. Industry sources suggest the notice could shortly be amended to specify that projects must use domestically-produced steel in their projects, but not specifically ESI steel. ESI officials refrained from making comment when approached by Kallanish.

Abu Dhabi-based ESI is a 3.5 million tonne/year steelmaker producing rebar, wire rod, and heavy sections.