meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

This article has been unlocked to allow non-subscribers to sample MEED’s content. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s business intelligence, subscribe here

https://image.digitalinsightresearch.in/uploads/NewsArticle/10378440/main4841.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi firm signs $5.4bn oil and gas contract in Algeria

    15 October 2025

    Register for MEED’s 14-day trial access 

    Algeria's national oil and gas company Sonatrach and Saudi Arabia-based Midad Energy have signed a hydrocarbons exploration and production sharing agreement related to Algeria’s Illizi South block.

    The agreement is valued at $5.4bn and has a duration of 30 years, with the option to be extended for an additional 10 years, according to a statement by Sonatrach.

    This contract was signed by Sonatrach CEO Rachid Hachichi and the CEO of Midad Energy North Africa, Sheikh Abdelilah Ben Mohamed Ben Abdellah Al-Aiban, at Sonatrach’s headquarters in Algiers.

    The investments for exploration and exploitation of the block, which is located about 100 kilometres south of In Amenas, will be financed entirely by Midad Energy and include $288m allocated for research investments.

    The contract has a research period of seven years and was singed within the framework of Algeria’s Law 19-13 for hydrocarbons, which came into effect in December 2019.

    ALSO READ: Algeria makes provisional award for downstream project

    In a statement, Sonatrach said: “The work programme associated with this contract will be implemented in strict compliance with environmental protection requirements and in accordance with applicable Algerian regulations.

    “This programme also includes the use of the latest technological and digital solutions,” it added.

    Projected production from the Illizi South offshore development by the end of the contractual period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic metres of marketable gas and 204 million barrels of liquid fuels.

    The expected 204 million barrels of liquid fuels includes 103 million barrels of liquefied petroleum gas (LPG) and 101 million barrels of condensates.

    The latest contract signed by Sonatrach and Midad Energy follows on from an agreement protocol concluded between the two companies on 3 March 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866259/main1744.jpeg
    Wil Crisp
  • Indian company wins gas project contract in Kuwait

    15 October 2025

    Register for MEED’s 14-day trial access 

    State-owned upstream operator Kuwait Oil Company (KOC) has awarded a contract for its planned project to develop a gas sweetening and recovery facility in West Kuwait to Indian contractor Megha Engineering & Infrastructure (MEIL).

    Hyderabad-based MEIL submitted the lowest bid for the tender, at KD69.2m ($225.5m), in February this year.

    The full list of prices that were submitted was:

    • L1 – MEIL (India): KD69.2m
    • L2 – Al-Khorayef (Saudi Arabia): KD74.5m
    • L3 – Mechanical Engineering & Contracting Company (Kuwait): KD94.8m
    • L4 – China Oil HBP Science & Technology Corporation (China): KD97.9m
    • L5 – Spetco (Kuwait): KD99.5m
    • L6 – Jereh Oil & Gas Corporation (China): KD102.8m

    The project uses the build-operate-transfer contract model and has been split into two parts. KOC has informed contractors that the two stages will be performed independently.

    The project execution stage will cover:

    • Licensing
    • Design
    • Engineering
    • Health, safety and environment services
    • Project management
    • Supply
    • Shipment
    • Procurement
    • Construction
    • Testing
    • Mechanical completion
    • Pre-commissioning
    • Commissioning
    • Stabilisation
    • Performance testing of the facility

    The operation and maintenance stage will cover:

    • Operation and maintenance of the facility
    • Performance of all associated safety, quality control and environmental protection services
    • All other inherent and related obligations

    In November 2024, KOC's parent entity, Kuwait Petroleum Corpration (KPC), confirmed that it plans to spend $410bn on its long-term energy strategy.

    Bader Ebrahim Al-Attar, KPC’s managing director of planning and finance, said the company plans to spend the money until 2050.

    The strategy involves raising KPC’s overall oil production capacity to 4 million barrels a day by 2035.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866258/main0806.jpg
    Wil Crisp
  • Firms submit interest for Saudi high-speed rail

    15 October 2025

    Register for MEED’s 14-day trial access 

    Firms expressed interest on 12 October in the Qiddiya high-speed rail project, which will connect King Salman International airport and King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Saudi Arabia's Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, issued the expression of interest notice to the market in September.

    Also known as Q-Express, the railway line will travel at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The project was previously planned to be developed under a conventional model, but will now progress under a public-private partnership (PPP) model.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole – which is understood to include the Public Investment Fund’s proposed 2-kilometre-tall tower – and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Latham & Watkins is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867663/main.png
    Yasir Iqbal
  • Qatar’s Ashghal awards $305m road contracts

    15 October 2025

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded two contracts worth over QR1.1bn ($305m) for the construction of roads and infrastructure networks in the Izghawa and Al-Themaid areas in the northwest of Doha.

    The contract for the first package, valued at over QR688m ($190m), was awarded to local firm Al-Mohannadi for Roads & Trading & Contracting.

    The contract for the second package was awarded to another local firm, Attikat. The value of the contract is QR418.4m ($115m).

    This project involves the construction of a single- and dual-carriageway road network in the area. 

    The scope includes the construction of carriageways, footpaths, parking areas, kerb lines, traffic signs and road markings, pedestrian guard rails, fencing, traffic signals, street lighting, landscaping and irrigation systems.

    The scope also involves surface/groundwater drainage systems, foul water drainage systems, treated sewage effluent irrigation, potable water network systems, electricity networks, a telecommunications infrastructure network and other associated facilities.

    The construction period is three years.

    The proposed development includes a residential area comprising over 1,262 housing plots, 133 utility plots, 32 government plots, 28 open spaces, four commercial centres, nine mosques, two transportation and four education facilities.

    In June 2022, Qatar’s Transport Ministry unveiled the Transportation Master Plan for Qatar 2050. The plan supports 286 projects, including 86 highway schemes, 22 for goods transport, 54 public transport schemes, 21 for pedestrians, 29 cycling schemes and 74 cross-modal and integration projects.

    The future highway schemes entail 37 infrastructure packages totalling 770 kilometres (km), 22 truck schemes and 10 infrastructure and facilities schemes. The public transport programme comprises 30 schemes for upgrading the main 540km public transport network.

    The masterplan also includes long-distance, metro and regional rail network plans.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867823/main.jpg
    Yasir Iqbal
  • L&T announces UAE grid substation award

    14 October 2025

    Indian industrial contracting conglomerate Larsen & Toubro (L&T) has announced several new grid infrastructure orders, including the engineering, procurement and construction of a 400kV substation in the UAE.

    The facility, awarded to L&T's Power Transmission & Distribution business, forms part of the planned 400kV interconnection between Oman and the GCC grid.

    The interconnection will enable a direct 400kV link between Ibri in Oman and Al-Sila in the UAE. It involves around 528 kilometres of overhead transmission lines, expansion of the existing Al-Sila substation and the development of two new 400kV substations, one in each country.

    MEED understands the substation to be built by L&T is a planned 400kV intermediate substation near Madinat Zayed in the UAE.

    L&T also said it has secured an order for the construction of a series of 132kV substations in the Middle East to cater to rising power demand. No other details were given and it is unclear where these substations will be located.

    In Saudi Arabia, the company has received a contract for the construction of 380kV overhead transmission lines associated with the integration of renewable energy power plants.

    It is understood that these contracts are for Saudi Electricity Company's Al-Khurma 1 and Al-Khurma 2 projects in Mecca, for which L&T submitted the lowest bids earlier this year.

    ALSO READ: L&T announces QatarEnergy NGL train project award
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14863247/main4046.jpg
    Mark Dowdall