Meed | ACC leverages expertise to tap new markets

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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Colin Foreman

Exclusive from Meed

Contractor wins Riyadh airport sewage plant deal
10 September 2026
Azizi to announce $8bn Sharjah residential community
10 September 2026
Saudi Arabia’s power award activity slows
10 September 2026
Chinese contractor wins NHC Al-Fursan Riyadh deal
10 September 2026
Seven tenders Dammam water park and hotel project
10 September 2026

Contractor wins Riyadh airport sewage plant deal
10 September 2026
The local Safari Company has been selected to build a sewage treatment plant at the King Salman International airport (KSIA) development in Riyadh.

The contract for the facility is yet to be formally signed with King Salman International Airport Development Company (KSIADC), a source close to the project told MEED.

The facility will have a treatment capacity of 92,000 cubic metres a day and is estimated to be worth SR700m ($187m).

In July, MEED reported that Safari was one of seven contractors awaiting a decision on a contract to build the sewage treatment plant.

It is understood that bids were submitted in March, following the tender’s release earlier this year.

The plant will treat wastewater generated by the airport and surrounding developments, including passenger terminals, runways, residential districts, commercial facilities and logistics areas.

The bidders (all local) are:
- Al-Rawaf Trading & Contracting
- Almajal Alarabi
- Nesma Water & Energy
- Safari Company
- Saudi Services for Electro-Mechanic Works
- Washnah Contracting
- Water & Environment Technologies (Wetico)
The project scope includes the construction of the treatment plant, the installation of preliminary, secondary and tertiary treatment systems, sewage collection and conveyance pipelines, pumping stations, and electrical and control systems.

US-headquartered Jacobs is acting as the main project consultant. Commercial operations for the plant are scheduled for 2029.

The sewage treatment plant is one of several water infrastructure packages planned for the airport. KSIADC is also evaluating bids for a separate $30m engineering, procurement and construction (EPC) contract covering potable water and fire water tanks and an associated pumping station. The same seven companies submitted bids for that package.

Earlier in July, MEED exclusively reported that a joint venture of Beijing-headquartered China Civil Engineering Construction Corporation and Dammam-based Mofarreh AlHarbi & Partners had won a deal to undertake the enabling and substructure works for Terminal 6 at KSIA.

That same month, MEED exclusively reported that contract details were being finalised for the main construction contract for the expansion of Hail airport. It is understood that Safari Company was appointed as the contractor for this project.

The terminal expansion works include the south expansion, which encompasses the construction of a new building covering 5,600 square metres. This building will connect to the existing terminal from the southern side.

The expansion will increase the airport’s capacity to about 1.7 million passengers a year by 2030.
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Mark Dowdall
Azizi to announce $8bn Sharjah residential community
10 September 2026

Dubai-based real estate developer Azizi Developments is preparing to launch Azizi Florence, a AED30bn ($8bn) masterplanned community in Sharjah.

Named Azizi Florence, the project will mark the developer’s first venture in the emirate of Sharjah.

The community will include 1,130 villas, over 6,000 townhouses and 3,500 apartments.

Planned as a fully integrated destination, Azizi Florence will combine residential, retail, hospitality, education, leisure, and wellness components, anchored by a 1.7 million-square-foot central park.

The development will be organised into six residential clusters, each featuring its own park, clubhouse, community centre and landscaped gardens.

Azizi Florence is another major addition to the developer’s UAE portfolio.

In April last year, Azizi announced plans to develop the Azizi Milan community in Dubai’s City of Arabia area.

According to media reports, the project will be developed at an estimated cost of AED75bn ($20bn) and will offer over 81,200 residential units.

The developer said the project will cover an area of about 40 million square feet, making it one of the largest mixed-use communities in the UAE.

In 2023, Azizi launched the Azizi Venice project in the Dubai South area. The estimated AED30bn ($8.17bn) mixed-use development will offer more than 30,000 residential units, including 100 mid-rise apartment complexes and 400 villas, two five-star hotels and an opera house.

The development will also include schools, a hospital, cycling and jogging tracks, a 3-kilometre-long swimmable lagoon, water features and landscaped parks.

Dubai real estate developments dominate the UAE’s construction market, with schemes worth over $323bn in the execution or planning stages.

This is in line with a forecast by GlobalData, which projects that the output of the UAE construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities and residential construction projects.

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Yasir Iqbal
Saudi Arabia’s power award activity slows
10 September 2026

Saudi Arabia’s power market has seen a sharp fall in contract awards in 2026 following a major wave of renewable energy investment last year.

According to regional project tracker MEED Projects, about $3.38bn of power sector contracts were awarded in the kingdom as of early September, compared with $27.5bn in 2025, $54.2bn in 2024 and $26.1bn in 2023.

The relatively low level of contract awards this year has partly been influenced by a shift towards wider infrastructure such as battery energy storage systems (bess) and transmission projects, alongside delays in the procurement of renewable energy projects under the National Renewable Energy Programme (NREP) Round 7.

In September, Saudi Power Procurement Company (SPPC) awarded four Group 1 storage service agreements representing more than SR4.35bn ($1.16bn) of investment. The projects will provide a combined 2,000MW of capacity and 8,000MWh of storage.

Three bess projects, Al-Muwyah, Haden and Al-Kahafa, were awarded to a consortium of Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company. Another consortium of France’s Engie and Haji Abdullah Alireza & Co won the contract for the remaining Al-Khushaybi bess project.

Transmission awards

The battery storage projects are part of a broader shift towards the infrastructure needed to support Saudi Arabia’s expanding power system, with transmission accounting for most of the contracts awarded this year, reaching $3.35bn in new awards.

The largest is the estimated $500m contract awarded to Alfanar Projects in March for the 500kV overhead transmission line linking Saudi Arabia’s Eastern and Central operating areas. The 508-kilometre project will have a transmission capacity of 3,000MW.

Saudi Energy, formerly Saudi Electricity Company, is implementing a $58.7bn grid investment programme through 2030, including 130 high-voltage substations, about 12,900km of overhead transmission lines and 1,100km of underground cables.

Saudi Energy is the largest owner by value so far this year, accounting for about $1.9bn of contract awards, while SPPC has awarded more than $1.1bn in new contracts.

The focus on storage and transmission follows strong growth in renewable generation investment in 2025. Wind power contract awards reached $4.4bn, while 11 major solar contracts were also awarded.

In May 2025, developers signed $8.3bn of power purchase agreements with SPPC for five solar plants and two wind farms with a combined capacity of 15,000MW, somewhat inflating last year’s figures. The projects, backed by the Public Investment Fund, reached financial close in November.

Renewables projects

The next major phase of renewable procurement is now moving through the tender process. The seventh round of NREP, tendered in January, will add 5,300MW through four solar and two wind projects.

Based on the procurement timeline for the Round 6 projects, which were tendered and awarded in 2026, it was reasonable to expect Round 7 to follow a similar schedule.

However, according to one developer, rising supply costs have been a factor in recent deadline extensions for these projects, with those involved “waiting till these come down”.

With the latest bid submission deadlines set for September, the timing of the procurement process means contracts from NREP Round 7 may now fall into 2027 rather than materially lifting this year’s total.

The solar projects comprise the 1,400MW Tabarjal 2, 600MW Mawqqaq, 600MW Tathleeth and 500MW South Al-Ula independent power projects (IPPs). The round also includes the 1,300MW Bilgah and 900MW Shagra wind IPPs.

This helps explain why Saudi Arabia’s power sector contracting could remain relatively subdued in 2026 despite a substantial volume of projects progressing through procurement.

Project pipeline

According to MEED Projects, about $5.1bn of power projects are currently under bid evaluation and a further $7.3bn are at the main contract tender stage.

Solar projects make up the largest share, at about $5.1bn, or 41% of the total. There continues to be relatively strong diversification, with cable and overhead-line projects accounting for about $3bn, followed by wind at $2.2bn, oil and gas-fired power at $1.1bn and substations at about $1bn.

Renewable energy remains a particularly significant part of the development programme. Saudi Arabia raised its renewable energy target to 130GW by 2030 in 2023 and needs to add roughly 20GW of capacity a year to meet it.

Large-scale storage is also expected to continue expanding. The latest SPPC projects build on five bess facilities awarded by Saudi Energy through National Grid Saudi Arabia to Alfanar in 2025. The facilities have a combined capacity of up to 2,500MW, equivalent to about 10,000MWh.

SPPC has also issued the request for proposals for the second phase of its independent bess programme in Saudi Arabia. The Group 2 programme comprises six independent storage provider projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration. Developers are due to submit bids in October.

The timing means the Group 2 projects could contribute to contracting activity in 2027, alongside this next batch of renewable projects under NREP Round 7.

Nuclear power could provide another potential source of activity over the next 12 months. The US and Saudi Arabia signed a civil nuclear cooperation agreement in July, providing the legal foundation for a long-term, multibillion-dollar nuclear partnership.

While the agreement is unlikely to translate immediately into major contract values, further progress on Saudi Arabia’s nuclear programme could add another area of activity in the sector as the kingdom moves into 2027.

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Mark Dowdall

Chinese contractor wins NHC Al-Fursan Riyadh deal

10 September 2026

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Beijing-headquartered China Airport Construction Group (CACC) has won a contract for the main construction works on the Al-Ruba project, located within the Al-Fursan master development in Riyadh.

The Al-Fursan project developer, National Housing Company (NHC), awarded the contract.

The scope covers the construction of 48 eight-storey buildings, comprising 2,556 residential apartments.

CACC is already working with NHC to deliver the Rehab Al-Sadan residential project at the Al-Sadan development in Jeddah.

It comprises the delivery of about 1,400 residential units across several buildings.

In 2023, NHC and Saudi Arabia’s Housing Ministry signed investment agreements totalling more than SR24bn ($6.4bn) to launch the Al-Fursan residential project.

Al‑Fursan is described as the largest scheme in terms of area and number of housing units that NHC is implementing in partnership with other real estate developers.

For the district’s first phase, 18 real estate development agreements were signed with companies including Retal Urban Development Company and Sumou Real Estate Company.

NHC also signed four consultancy contracts to manage projects and supervise implementation of phase one and the deployment of comprehensive infrastructure works.

Other deals involved the development of facilities, including commercial and recreational areas, hospitals, health and sports centres, mosques and schools.

MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and become one of the 10 wealthiest cities in the world.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Seven tenders Dammam water park and hotel project

10 September 2026

Saudi Entertainment Ventures (Seven), a wholly owned subsidiary of the Public Investment Fund, has tendered a contract for the main construction package of its Dammam Water Park and Hotel project in the Al-Hamra district.

The bid submission deadline is 14 October.

The waterfront development sits on a 324,300-square-metre (sq m) plot.

In July, MEED exclusively reported that Seven was preparing to shortlist general contractors for the project.

Seven is seeking firms capable of delivering a lump-sum, turnkey solution for both the water park and a 321-key lifestyle hotel. Construction is expected to take 24 months from contract award.

The water park is designed around five themed zones and will feature what is billed as the world’s first double-tornado/triple-wave waterslide.

The park will include 21 major rides and attractions, 21 food and beverage outlets, 66 cabanas, parking for 1,100 vehicles and a daily peak capacity of 4,500 guests.

Slide procurement has already been completed directly by Seven. The selected contractor will be responsible for locally sourcing slide towers, integrating them with rockwork and secondary steel, and installing the units.

Detailed design and issued-for-construction packages are complete.

Marine works, piling, dewatering and site utilities are being progressed separately by the existing early works contractor.

The hotel component covers roughly 31,700 sq m of gross floor area and will offer 321 guest rooms, four F&B outlets, spa and wellness facilities, a family pool, and meeting, incentive, conference and exhibition space.

The new contractor’s scope includes superstructure concrete works, façade and roof works, mechanical, electrical and plumbing, interior fit-out and landscaping.

Seven will consider only contractors with demonstrated experience delivering water parks with complex aquatics, theming and rockwork – either directly or through clearly defined subcontractor partnerships – along with a track record in high-end turnkey hotel fit-outs.

Construction of Seven’s Dammam entertainment complex is under way. In October 2023, Saudi Binladin Group won contracts worth around SR5bn ($1.3bn) from Seven to build two entertainment destinations in the Dammam and Al-Khobar areas of the kingdom’s Eastern Province.

The Al-Khobar entertainment complex is being built on reclaimed waterfront land. The complex spans around 300,000 sq m and is also known as ‘The Waves’.

The Dammam entertainment complex spans 360,000 sq m and is being built on reclaimed land on the Dammam waterfront.