ACC leverages expertise to tap new markets
23 November 2022
The UK government announced in October that it will provide funding support for the construction of 10 modern office buildings for a ministerial city in Benin’s largest city Cotonou.
The firm leading the construction is Arabian Construction Company (ACC), and the West African project is the latest example of how the Abu Dhabi-headquartered contractor has used the experience it has developed in the UAE and the Middle East to become an international construction company operating across multiple countries and continents.
ACC was founded in Lebanon in 1967 and early in its history set up a base in Abu Dhabi. From there, it grew to become one of the Middle East’s leading construction companies, offering a range of services to its clients.
“We cover almost every aspect of the construction sector, although we are better known, and receive more attention, for high-rise and the more complex type of buildings,” says Maher Merehbi, ACC’s CEO.
“Among the more recent examples of our flagship projects are Sky View and Address Fountain Views in Downtown Dubai, and the Central Market towers, and Etihad Towers in Abu Dhabi.”
As the UAE has developed over the past 50 years, ACC has had the opportunity to work on a wide range of projects. “The UAE has offered a tremendous diversity of work,” says Merehbi.
“A strong recognition should be given to the standard and quality of projects the country has delivered over the past 20 or 30 years. As the UAE has been continuously evolving, this has contributed substantially to the expertise that we have acquired as we grew and evolved with it. Very few cities or countries can claim to have the same quality projects.”
ACC is leading the construction of office buildings for a project in Benin
Building expertise
Developing project and construction management expertise have been key factors in ACC’s success.
“When you run such complex projects, project management and construction management are the essential tools for successful delivery,” says Merhebi.
“As projects grew in complexity and in size, we developed enhanced and more advanced construction management and project management techniques that allow us to maintain both quality and control.
“Control not only focuses on delivering on time, but delivering a high standard that maintains the projects’ performance to the expectations of the employer.”
In addition to traditional contracting, design-and-build contracts have been used as an alternative method of project delivery.
“This is an avenue we have tackled, and we have executed several projects on that model,” says Merhebi.
“Design-and-build is one of the better ways of delivering projects if you wish to do away with the traditional problems of design and specifications modifications or incomplete or misadapted designs. While it relieves the employer from certain risks, it allows the contractor a certain degree of flexibility on the construction methodologies, but it also allocates more responsibility to the contractor.”
ACC has also taken the design-and-build model a step further by becoming a co-developer in some projects.
“Seasoned developers appreciate that early involvement of the contractor, and the design-build approach, protect the employer from certain risks. This has opened up interesting opportunities where we will take a stake in the equity, and that allows the interests of the contractor and developer to be truly aligned,” says Merehbi.
“Partnering is a little bit unbalanced when all the parties involved do not have an aligned objective. For example, the employer stands to gain from reducing payments to the contractor while the contractor gains from an increase in project payments.
“Clearly such a situation establishes limitations on the partnering concept. For better alignment of interests between the employer and contractor, the contractor’s role extends beyond merely providing construction services. The contractor is more involved and has a larger contribution to the project.”
Tapping new markets
Outside Lebanon and the UAE, ACC expanded across the region in the 1970s and has worked in most Middle Eastern markets.
“With high oil prices, the economies were growing fast and there was a lot of demand in the market. For ACC, the economic boom in the region meant expansion was the natural avenue,” says Maher.
Moving into new markets showed that even neighbouring countries with similar economic drivers can be quite different when it comes to contracting.
“Every market is unique in its own way. You have to recognise that there are market variances in the way business is carried out, distinctive cultures and customs, and the way the supply chain works is also different. A contractor has to recognise these differences very quickly and adapt. Often contractors enter a market without the willingness or the ability to conform and integrate,” says Merehbi.
ACC has expanded from the Middle East, establishing a strong base in Egypt, and also into South Asia with work in Pakistan in the 1990s, and then in India in the 2010s. The firm also took steps to enter the European market with work in Cyprus and is now pursuing projects in Greece. ACC is also active in Africa with projects such as the ministerial complex in Benin.
Rather than entering new markets as a management contractor that relies on managing local contractors, for ACC, entering new markets is a major commitment that requires investment in local operations.
“Contracting carries a lot of risks. Relying on third parties to execute the majority of construction activity creates high uncertainties. We pay particular attention to the reputational impact of our projects and prefer to execute our own works,” says Merehbi.
“While there are undoubtedly reputable companies in various disciplines, executing through the project management methodology still leaves some exposure. So instead of managing someone else’s execution strategy, we would rather make our own and manage our own team.”
Self-performing is important in markets where supply chains do not cover the entire spectrum of services, such as in some African countries.
“ACC has fully deployed in Africa. We operate there as we do in any of our other markets. We go through the full process and cycle of hiring, training and monitoring. That is what being a contractor is about,” says Merehbi.
Financing is also a key element of winning work in Africa, although Merehbi says this is no different from other markets.
“Financing is a key element in every market,” he says. “In certain areas with a growing economy, funding is more easily available. In other areas, the contractor may be required to contribute to the funding.”
Instead of managing someone else’s execution strategy, we would rather make our own and manage our own team
Raising finance
Funding projects has become more challenging with rising interest rates, but Merehbi expects a mixed impact depending on the nature of the project.
“There are short- or medium-term projects that require early pay back and profit generation and then there are projects that are inherent to a country’s infrastructure and capture economic benefits over a longer period. Higher interest rates affect categories of projects differently,” he says.
“For example, if you are building a hospital that is state-run, then the government’s primary objective is to supply the medical services, and if it can afford it, then it will go ahead and do it. Commercial profit would not be the primary objective in this case. A private developer will probably take a different approach; if the funding becomes too expensive it may choose to postpone the project.”
As market dynamics change, selecting the right projects will remain critical. This is particularly important for ACC as the business, unlike many of its competitors, is still privately held.
“We are a family business. We are managing family assets. If the project makes commercial sense, we will go for it. We will take the risks that contractors are expected to take; it is part of the job, but we are not driven by accumulation of backlog for end-of-year reporting,” says Merehbi.
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Foreign interest in Syria’s oil and gas sector is growing as the government moves to revive the industry and elevated global energy prices improve the economics of new developments.
A series of agreements signed in recent months has attracted some of the world’s largest energy companies, raising expectations that investment and production could accelerate.
However, despite growing optimism, significant security, financial and regulatory challenges remain, which could constrain the pace of growth for years to come.
Military control
Optimism among foreign businesses about potential opportunities in the country was boosted in January this year when Syria’s central government regained control of most of the country’s oil and gas assets.
On 13 January 2026, the Syrian government launched an offensive against the Kurdish-led Syrian Democratic Forces (SDF) in the territories of the Democratic Autonomous Administration of North and East Syria.
The offensive was initially focused on eastern Aleppo Governorate, around the towns of Deir Hafer and Maskanah, and was expanded on 17 January to include Raqqa, Deir ez-Zor and Al-Hasakah Governorates.
The offensive eventually led to Syria’s Omar and Conoco fields being seized, as well as the Tanak, Rmeilan and Suwaydiyah fields.
The Omar field is Syria’s largest oil field and the Conoco field hosts Syria’s largest gas processing plant, which previously supplied several power stations, including the Jandar plant in Homs, one of the country’s largest.
Before the outbreak of the Syrian civil war in 2011, this field produced about 10 million cubic metres of natural gas a day.
On 18 January, an agreement was signed under which Damascus assumed administrative and security control over all major oil and gas assets previously held by the SDF in the northeast of the country.
Wider market
The push to take control of the oil and gas assets came ahead of the US and Israel attacking Iran on 28 February, which led to a regional conflict and disrupted shipping through the Strait of Hormuz.
Disruption in the waterway – which normally transports about 20 million barrels a day (b/d) of oil and refined products, as well as around 20% of the world’s liquefied natural gas – triggered a surge in global energy prices and sent oil companies scrambling to develop resources that did not rely on the strait as an export route.
Syria is increasingly being viewed as a potential option for major oil and gas development projects due to its significant unrealised reserves and its geographic position across the Mediterranean from consumer markets in Europe.
Syria’s production currently stands at around 110,000 b/d, down from a peak of 380,000 b/d in 2011, according to a report published by the US-Syria Business Council in April.
The country’s recoverable oil reserves are estimated at 2.5 billion barrels, and Syria also has significant gas reserves.
In April, Yousef Qiblawy, chief executive of the state-owned Syria Petroleum Company (SPC), said his organisation aimed to double national production before 2027 and boost output to 800,000 b/d by the end of 2029, not including offshore production.
He said: “Before the takeover of the northeast, we were producing 10,000-15,000 b/d.
“Currently, we are producing 100,000 b/d, and the plan now is to double this production number by the end of this year.”
He also expressed optimism about the outlook for projects in Syria’s portion of the Mediterranean Sea, saying: “New offshore and onshore exploration is also starting … there are 15 or 17 brand new green blocks, untouched in Syria, with huge reservoirs of oil mainly, and some gas.”
So far, no offshore wells have been drilled in Syrian waters.
In 2013, Russia’s Soyuzneftegaz signed an offshore exploration agreement with Damascus, but the project was abandoned during the civil war and never progressed to drilling.
Making deals
In recent months, a range of significant deals and meetings has raised expectations for the future of Syria’s oil and gas sector.
On 11 May, SPC announced plans for Syria’s first-ever offshore oil and gas exploration project.
The deep-water project is being carried out in partnership with US-based Chevron and Qatar’s UCC Holding.
SPC said that it had, together with Chevron and UCC Holding, defined the boundaries of the offshore block, paving the way for finalising contracts and starting technical operations this year.
The three companies previously signed a preliminary deal in February to evaluate offshore oil and gas exploration in Syrian waters.
On 12 May, France’s TotalEnergies, state-owned QatarEnergy and US-based ConocoPhillips signed a memorandum of understanding (MoU) with SPC relating to the exploration of Syria’s offshore Block 3.
Under the terms of the preliminary deal, the companies will carry out a technical review of the area.
The agreement also established a framework for technical and commercial discussions related to exploration activities on the block.
ConocoPhillips also signed another MoU in November last year, along with Houston-headquartered Novaterra Energy, focused on developing several gas fields and launching exploration programmes.
This MoU included an agreement to rehabilitate the gas plant at the Conoco field in Deir ez-Zor province.
At the time, Qiblawy said the agreement was expected to boost the country’s gas production by 4-5 million cubic metres a day within a year.
On 8 May, the Croatian oil company INA and Hungary’s MOL announced that they had held a series of meetings with SPC focused on exploring options to restart INA’s oil and gas operations in Syria.
They said a joint technical team established by INA and SPC was assessing the feasibility of INA resuming operations on its Syrian concessions by evaluating operational, technical, commercial and regulatory conditions.
In 2011, oil and gas production at INA’s Syrian concessions had reached 37,300 barrels of oil equivalent a day.
By the time the company suspended operations in Syria in 2012, it had invested approximately $1.1bn in the country and had built a gas processing plant at the Hayan gas field.
Resuming activities
In April, the managing director of London-headquartered met with Syria’s president, Ahmed Al-Sharaa.
Gulfsands is the official operator of Syria’s Block 26, but for 15 years after the start of the Syrian civil war, it could not access the asset.
The company declared force majeure in late 2011 and, until recently, it was under the control of the Kurdish-led SDF.
In a statement released after the April meeting with Syria’s president, John Bell confirmed that his company had recently regained access to Block 26, which he described as “an important milestone for Gulfsands and for Syria”.
He added: “This development provides a strong foundation for the recommencement of operations and investment.
“We are now back on the ground in Syria, working closely with SPC to accelerate towards a full resumption of activities.”
Bell also said that, as a result of a global drive to diversify away from “traditional choke points like the Strait of Hormuz”, Syria had the potential to become “a new world energy hub”.
In April, Saudi Arabia’s ADES Holding Company signed an implementation contract with SPC to develop several gas fields in Syria.
In a statement, SPC said the scope of the deal with ADES included executing maintenance and development works on existing wells, in addition to drilling new exploratory wells within the agreed operational areas.
It added that it expected the deal to increase gas production by 25% within the first six months and by 50% by the end of this year.
Industry insiders are also watching US-based HKN Energy, which has close ties to the Trump administration, after Qiblawy said in January that the company had expressed interest in entering the Syrian oil and gas sector.
In April, a statement from the US-Syria Business Council said an MoU with HKN was “in the pipeline”.
Over recent months, expectations have been building about a potential deal involving US-based oil and gas companies Baker Hughes, Hunt Energy and Argent LNG.
In July last year, Jonathan Bass, chief executive of Argent LNG, said that the three companies were planning to develop a masterplan for Syria’s oil, gas and power sector.
It was later reported, in February this year, that the three US-based companies were planning to form a consortium for oil and gas exploration and energy production in northeast Syria.
The consortium is expected to become involved in approximately four to five exploration blocks.
Commenting on his company’s plans in Syria, Argent LNG’s chief executive said: “We're very excited to be realising the visions of US President Donald Trump and Syrian President Ahmed Al-Sharaa, bringing the country forward from darkness to light.”
In a separate statement in April, Hunter Hunt, chief executive and chairman of Hunt Oil Company, said: “President Sharaa’s vision is bold, it is comprehensive, and it is full of execution and getting things done … We like what we see on a forward-looking basis.”
Challenges remain
While SPC’s Qiblawy has outlined ambitious targets to increase oil and gas production and international interest in the sector is growing, significant obstacles remain.
A report published by the US-Syria Business Council in April highlighted several risks facing prospective projects. Among the most significant is the threat posed by Islamic State, particularly to pipeline infrastructure crossing remote desert regions.
The report warned that securing large stretches of sparsely populated territory remains difficult, increasing the risk of attacks on critical energy infrastructure.
It also highlighted the possibility of renewed conflict in northeastern Syria, where the SDF previously controlled many of the country’s most important oil and gas assets. According to the report, the current ceasefire remains fragile and any deterioration in relations could reignite territorial disputes.
Beyond security concerns, international investors continue to face substantial financial and regulatory hurdles.
Although sanctions on Syria have been eased considerably, the country remains designated by the US as a State Sponsor of Terrorism. As a result, licences are still required for many controlled exports, including oilfield equipment, software and technology.
Restrictions also remain on support from international financial institutions. The US Export-Import Bank and the US International Development Finance Corporation continue to face limitations on their ability to support projects in Syria, constraining access to capital for large-scale developments.
These factors suggest that progress towards SPC’s production targets is likely to be slower than official projections imply.
Nevertheless, if Syria can continue to improve security conditions, strengthen political stability and maintain a supportive investment environment, the country’s oil and gas sector has the potential to deliver steady production growth over the coming years.
For international energy companies seeking opportunities outside traditional export routes and geopolitical chokepoints, Syria is increasingly emerging as a market with significant long-term potential, albeit one accompanied by substantial risk.
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Iranian drones hit Kuwait International airport’s Terminal 1
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Brigadier General Saud Abdulaziz Al-Otaibi, official spokesman for the Ministry of Defence, blamed the strikes on “criminal Iranian aggression”. He confirmed that the injured had been evacuated for medical care and stated that the armed forces remain in a state of complete readiness to secure the state.
The incident is the third major drone strike on the hub in recent months. On 1 April, a drone strike hit fuel tanks managed by Kuwait Aviation Fuelling Company, sparking massive fires. On March 28, another multi-drone raid severely damaged the airport’s primary radar systems.
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Consortium signs PPA for Taweelah C power plant
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The agreement, which will run through to 2050, was signed with Abu Dhabi National Energy Company (Taqa), Al-Jomaih Energy & Water Company (Saudi Arabia) and Sembcorp Industries (Singapore), the utility said in a statement.
Taqa will own a 60% stake in the project, with the international consortium holding 40%. The ADX-listed company will also own 40% of the project’s operations and maintenance company, while the international consortium will own 60%.
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Local contractor wins Oman water transmission contract
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