EXCLUSIVE: Alec acquires Abu Dhabi contractor Target
16 December 2022
Dubai-based contractor Alec has completed the acquisition of Abu Dhabi contractor Target Engineering Construction Company. The $100m deal creates a contracting group with cross-sector capabilities that hopes to double its turnover in the next five years.
Alec is one of the region’s leading building contractors and is working on landmark projects such as One Zabeel in Dubai and the Natural History Museum in Abu Dhabi.
Target is an engineering, procurement and construction (EPC) contractor working on oil and gas projects including the Borouge 4 petrochemicals complex in Abu Dhabi and the North West Development of the Dalma field, also in Abu Dhabi.
Ambitions to double size
Target, previously owned by Arabtec, has an annual turnover of about AED1.5bn ($408m) and is a significant addition to the Alec business.
“Target will constitute about 30 per cent of our [combined] turnover,” says Kez Taylor, CEO, Alec.
“Going into the future, we see both businesses growing because there is work out there that needs to be executed for both Alec and Target. We see the size of both businesses doubling over the next five years.”
Although Alec and Target are both contractors, their operations are complementary.
“It is a very good fit for us,” says Taylor. “We do complex building jobs; they do oil and gas, energy and marine.”
We have been able to save 11,000 jobs and keep a company working
John Deeb, CFO, Alec
Workforce of 21,000
In terms of manpower, the group is now one of the largest in the region. Target has a workforce of 11,000, and together with Alec’s 10,000, the group has a total workforce of 21,000.
“We feel we have a good cultural mix because they are contractors and are similar to us. When we interact, we talk the same language,” says Taylor.
While both companies will assist one another and work together, in terms of management, Target will continue to have its own management.
“Target will run Target and we will allow them to operate,” says Taylor.
Financial standing
Alec was able to complete the acquisition thanks to its strong financial position.
“We don’t have debt as a business. Over the years, we have actually avoided it. We have a strong balance sheet and that’s why we were in a position to make a move like this,” says Taylor.
Target was available for sale after its previous owner Arabtec filed for bankruptcy in 2020.
“It started when Arabtec went under,” says John Deeb, CFO, Alec. “If you look at Alec in the past, we’ve never really done big acquisitions. We have grown our businesses organically, so we weren’t looking [to acquire].
“Oil and gas was something we had been looking at. We wanted to do something, and then when Arabtec went insolvent, we talked to people about what was good at Arabtec because obviously it wasn’t all bad. Target was the one thing that stood out.”
Bankruptcy law
The Arabtec insolvency has been a key test of the UAE’s bankruptcy law, which came into force in late 2016.
“This deal is one of the first to show how the process works,” says Deeb. “We have been able to save 11,000 jobs and keep a company working.”
Acquisition benefits
The acquisition helps Alec diversify its business and gain access to one of the region’s most active sectors.
“We have focused on the high-end building market. We haven’t done roads, bridges – we decided to stay away from that, but oil and gas is something that does make a lot more sense as the barriers to entry are higher and it’s more challenging work,” says Deeb.
The outlook for investment in projects in the oil and gas sector is backed by strong economic fundamentals and the increasingly important energy transition.
“The UAE has the capacity to produce 4 million barrels a day (b/d) and they want to get it up to 5 million b/d by 2027. In Saudi Arabia, they are producing about 10 million b/d, and they want to increase that to 13 million b/d. That’s a 25 per cent increase for the UAE and a 30 per cent increase for Saudi Arabia. Coupled with that, you have net-zero targets,” says Taylor.
Geographically, the two main markets for the group are Saudi Arabia and the UAE.
“There is a huge amount of work to be done. The market share in the UAE for Alec is about 2 per cent and in Saudi Arabia, we see it being about 1 per cent,” says Taylor.
Saudi gigaprojects gear up for $569bn of contract awards
Construction will also play a key role in helping the UAE and Saudi Arabia achieve their long-term economic aspirations.
“The UAE wants to be the leading country and economy in the world by 2071 and 10 per cent of that GDP is made up of the construction sector,” says Taylor.
“Saudi Arabia and the UAE are closely aligned in terms of their ambitions, and we believe we can play a significant role in achieving this.”
Watch: Saudi Arabia gigaprojects market outlook
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
WEBINAR: Saudi Gigaprojects 2026 & Beyond25 March 2026
-
Diriyah tenders media district north offices25 March 2026
-
Trojena terminates Ski Village steel structure contract25 March 2026
-
Ashghal tenders more infrastructure contracts25 March 2026
-
War likely to boost oil and gas activity in North Africa25 March 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
WEBINAR: Saudi Gigaprojects 2026 & Beyond
25 March 2026
Webinar: MEED in association with HKA Webinar on Saudi Gigaprojects 2026 & Beyond
Tuesday 31 March | 1:00 GST | Register now
Agenda:
As Saudi Arabia’s gigaprojects move from vision to delivery, the kingdom’s projects market continues to evolve at an unprecedented pace. Billions of dollars’ worth of contracts are being awarded across infrastructure, real estate, tourism and critical industries, creating huge opportunities — but also new layers of complexity.
This MEED Live broadcast, in association with HKA, brings together market intelligence and practical expertise to help project stakeholders understand and navigate the risks in this dynamic landscape.
The session will open with Ed James, MEED’s head of content and research, who will deliver a comprehensive 30-minute outlook on Saudi Arabia’s gigaprojects and beyond. Drawing on MEED’s proprietary data and insights, Ed will highlight the scale of opportunity, sectoral trends and the finance shifts shaping the region’s project pipeline.
Following the outlook, Ed will host an in-depth fireside chat with Haroon Niazi, partner at HKA, focusing on the critical theme of contractual risk management. In a market defined by rapid delivery schedules, shifting finance conditions and complex stakeholder ecosystems, Haroon will share strategies for mitigating disputes, safeguarding margins, and building resilient contracts that can withstand uncertainty.
The broadcast will conclude with a live Q&A session, giving the audience the opportunity to engage directly with Ed and Haroon, and to take away actionable insights that will support their involvement in Saudi Arabia’s gigaprojects.
Hosted by: Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. Haroon Niazi, partner, construction claims and expert services lead, International·HKA
Haroon is a dual-qualified Chartered Quantity Surveyor (FRICS) and barrister with over 18 years of experience in the construction industry. He leads HKA’s Construction Claims and Expert Services Line across Europe, the Middle East, and Africa, overseeing a team of more than 200 consultants with responsibility for strategy and delivering the growth plan. His practice focuses on the resolution of complex and high-value construction disputes. He has been appointed as a quantum expert and has delivered expert testimony in international arbitration and litigation, including in the Kingdom of Saudi Arabia. Haroon is known for his ability to analyse, quantify, and communicate the financial aspects of construction claims with clarity and independence.https://image.digitalinsightresearch.in/uploads/NewsArticle/16116602/main.gif -
Diriyah tenders media district north offices
25 March 2026
Saudi gigaproject developer Diriyah Company has tendered a contract inviting firms to bid for the construction of offices in the media district in the second phase of the Diriyah Gate development (DG2).
The tender was released in March, with a bid submission deadline of 27 April.
The scope covers the construction of five office plots comprising nine buildings, spanning over 50,000 square metres (sq m).
The tender follows the Diriyah Company’s award of an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the DG2 area.
The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.
The project will cover an area of 75,365 sq m and is located in the northwestern district of the DG2 area.
In February, Diriyah Company awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan.
The project has a gross floor area of over 31,000 sq m.
The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16114767/main.png -
Trojena terminates Ski Village steel structure contract
25 March 2026
Neom has terminated its contract with Malaysian contractor Eversendai Corporation for the steel structural works on the Ski Village project in Trojena, Saudi Arabia.
In a statement published on its website, Eversendai said it had received an official notice that the termination will take effect from 26 March.
Eversendai is jointly executing the construction works on the project with Riyadh-based contractor Albawani. The contract was formally awarded in March 2024.
In July 2024, UAE-based steel producer Emirates Steel announced that it had signed a steel supply agreement for the Trojena Ski Village project.
In January this year, Saudi Arabia confirmed the postponement of the 2029 Asian Winter Games, which were scheduled to be held at Trojena.
Trojena had been chosen to host the event in October 2022.
This latest public announcement comes shortly after Neom cancelled contracts for the construction of the tunnel sections of The Line in northwest Saudi Arabia.
In a stock exchange announcement filed on 13 March, South Korean contractor Hyundai E&C said that Neom cancelled its contract on 29 December last year.
Hyundai E&C was executing the drill-and-blast section of The Line’s tunnels in a joint venture with Greece’s Archirodon and South Korean counterpart Samsung C&T.
These developments follow a wider strategic review of Neom last year, as Saudi Arabia reassesses priorities under its Vision 2030 programme. With tighter liquidity at the sovereign wealth fund level, resources are being redirected towards projects linked to the Fifa World Cup 2034, Expo 2030, and essential housing, healthcare and education initiatives.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16114360/main.jpg -
Ashghal tenders more infrastructure contracts
25 March 2026
Qatar’s Public Works Authority (Ashghal) has issued two tenders covering infrastructure development in the northern section of the New Industrial Area and the Wadi Al-Banat area.
Ashghal issued the tender for consultancy services for the design of roads and infrastructure in the northern part of the New Industrial Area on 16 March. The bid submission deadline is 26 April.
The project is located in the Small and Medium Industries Area within Zone 81.
The scope includes developing road infrastructure for the northern expansion area, which spans more than 100 hectares, and improving Energy Street by upgrading three signalised intersections. It also includes new access roads and surface-water and groundwater networks.
The project also requires a masterplan study for surface-water and groundwater drainage covering an area of about 2,743 hectares.
The second tender covers the construction of roads and infrastructure in the Wadi Al-Banat area (Zone 70).
The tender was issued on 16 March, with a bid submission deadline of 12 May.
The scope includes the development of about 25 kilometres of roads.
The latest tender follows Ashghal’s announcement earlier this month of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).
According to UK analytics firm GlobalData, Qatar’s construction industry is expected to expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.
According to the Planning & Statistics Authority, Qatar’s construction value-add grew by 6.6% year-on-year in the first half of 2025.
GlobalData expects the industry to grow at an annual average growth rate of 4.6% in 2027-29, supported by investments in construction, energy and infrastructure projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16114076/main.gif -
War likely to boost oil and gas activity in North Africa
25 March 2026
Register for MEED’s 14-day trial access
The US and Israel’s ongoing war with Iran is likely to boost oil and gas project activity in North Africa, as the high-price environment encourages the region’s national oil companies to push ahead with projects that will allow them to increase exports.
In recent weeks, international oil and gas prices have stayed consistently far higher than levels seen before the US and Israel launched their attack on Iran on 28 February, killing Iran’s Supreme Leader, Ali Khamenei.
For the past two weeks, the price of Brent crude has remained above $90 a barrel and has hit a high of more than $109.
Similarly, the Dutch TTF natural gas benchmark has stayed above €45 per megawatt hour and hit a high of more than €62, up from €31 prior to the 28 February attack.
Gulf disruption
Over the same period, the long-term outlook for oil and gas exports from the GCC and Iraq has dimmed significantly as disruption to transport through the Strait of Hormuz has continued and damage to key regional oil and gas infrastructure has increased.
Damage to infrastructure has included attacks on oil and gas fields, as well as strikes on oil refineries, storage facilities and gas processing plants.
This damage means that even if the disruption to the transport of oil and gas via the strait ends quickly, the war will have a long-term impact on oil and gas production and exports in the GCC and Iraq.
On 18 March, Saad Sherida Al-Kaabi, QatarEnergy’s CEO and minister of state for energy affairs, said Iranian strikes on Ras Laffan Industrial City – home to the world’s largest liquefied natural gas (LNG) production and export facility – had knocked out about 17% of its LNG export capacity.
He said the attacks were expected to cause an estimated $20bn in lost annual revenue and that repairs could take three to five years to complete.
In Bahrain, the Sitra oil refinery, which has a throughput capacity of 405,000 barrels a day (b/d), has been attacked and damaged, leading Bapco to declare force majeure.
Strikes also hit the Ras Tanura refinery in Saudi Arabia, as well as the Habshan gas processing complex in the UAE.
North Africa
The high-price environment and the long-term impact of the ongoing conflict represent an opportunity for North Africa’s oil-producing nations, especially the region’s biggest oil and gas exporters: Algeria and Libya.
Higher prices will dramatically increase government revenues for these countries, giving them more capacity to invest in infrastructure projects, while also providing a significant financial incentive to boost production in the short term.
Both Algeria and Libya are close to European markets that have relied on oil and gas from the GCC and Iraq, and neither country relies on the Strait of Hormuz to transport exports.
The two countries also appear to be seeking to accelerate oil and gas projects at a time of heightened demand from energy-importing nations to secure reliable supplies.
Libya push
Earlier this month, MEED revealed that talks were under way at Libya’s National Oil Corporation (NOC) to potentially launch a new licensing round to award some of the unawarded exploration blocks from the 2025 licensing round.
In the downstream sector, Libya also seems to be pushing to progress projects.
Recently, US-based KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery Project in Libya’s southern city of Ubari.
Algeria drive
Algeria is also advancing projects in the country’s oil and gas sector.
On 8 March, Algeria’s president signed a decree ratifying the development agreement for a $5.4bn oil and gas project in the country’s Illizi South block.
The decree approved a contract signed in Algiers on 13 October 2025 between Algeria’s national oil and gas company Sonatrach and Saudi Arabia’s Midad Energy North Africa.
The contract granted both companies the rights to explore and exploit hydrocarbons in the Illizi South area.
The total investment of about $5.4bn will be fully financed by Midad Energy, including approximately $288m allocated to the exploration phase.
Amid disruption to global LNG supplies from Qatar, Italy and Spain are currently in talks with Algeria in an effort to secure increased LNG shipments from the North African country.
Algeria’s prime minister has also received requests from Asian countries, including Vietnam, seeking to secure both gas and oil shipments.
It is unclear how much spare capacity Algeria has to supply LNG to new customers, as much of the country’s production is sold in advance under long-term supply agreements.
However, current market conditions are still expected to increase the country’s revenues significantly, as Algiers is likely to be able to command much higher prices in any new agreements.
While the ongoing war is expected to deepen the crisis for many companies operating in the GCC and Iraq oil and gas sector, the opposite could be true for companies established in Libya and Algeria.
Although in recent years these two countries have been viewed as having more challenging business environments than the UAE or Saudi Arabia, companies that have invested in building positions in North Africa’s oil- and gas-exporting states could be well placed to make windfall profits.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16112991/main1320.png