Arabian Gulf Steel Industries LLC (AGSI), the Abu Dhabi-based steel manufacturer and recycler, has signed a strategic Memorandum of Understanding (MoU) with Fakhruddin Properties to support the integration of low-carbon steel solutions across its future development portfolio, as per the press statement. 

The agreement marks a significant step in strengthening the UAE’s sustainable construction ecosystem, bringing together a developer and local steel manufacturer in a, forward-looking partnership focused on reducing embodied carbon in real estate projects.

Under the MoU, AGSI will serve as Fakhruddin’s steel partner, supporting the integration of low-carbon steel across future developments. The collaboration moves beyond a traditional supply relationship, focusing on the integration of lower-carbon materials at the design and engineering stages of projects.

Asam Hussain, CEO of Arabian Gulf Steel Industries, said: “Reducing embodied carbon in the built environment requires sustained collaboration between material producers and developers. Partnerships such as this reflect our continued engagement with developers who are prioritising measurable emissions reductions in their projects. By extending our circular manufacturing model into the construction ecosystem, we are bringing together circular material flows and low-carbon steel production to support lower-carbon construction across the UAE” 

Commenting on the announcement, Yousuf Fakhruddin, CEO, Fakhruddin Properties, said, “The transition to Net Zero construction requires more than incremental change - it requires ecosystem collaboration. Through this partnership, we are aligning development strategy with material innovation, ensuring that sustainability is embedded from concept through completion. By integrating sustainable steel and exploring circular supply models, we are strengthening local value chains while contributing meaningfully to the UAE’s Net Zero 2050 agenda.”

As part of the collaboration, AGSI’s low-carbon products will be specified and utilised across relevant Fakhruddin developments to reduce embodied carbon emissions and support the company’s long-term decarbonisation roadmap.

AGSI produces low-carbon construction steel from 100% locally sourced recycled materials and operates with one of the lowest carbon intensities in the region, with its Abu Dhabi facility verified as carbon-neutral. Built on AGSI’s integrated recycling and manufacturing model, the partnership represents a strong example of local circular economy collaboration within the UAE.

Both parties will also explore a closed-loop model in which recycled steel materials generated within Fakhruddin’s ecosystem may support AGSI’s production processes, with AGSI supplying finished low-carbon steel back into Fakhruddin’s projects. This circular approach aims to reduce waste, enhance material traceability, and support sustainable lifecycle management of construction materials, building on AGSI’s circular steel production model based.