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.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Contractor appointed for Oman power plants13 May 2026
-
Financial challenge tests Iraq’s resolve13 May 2026
-
-
-
Iraq LNG project delayed until next year13 May 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
-
Contractor appointed for Oman power plants
13 May 2026
A consortium of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility has been appointed as the main contractor on the Misfah and Duqm combined-cycle gas turbine power plants in Oman.
The contracts cover the construction of two independent power producer (IPP) projects, with work scheduled to begin in the third quarter of 2026.
State offtaker Nama Power & Water Procurement (Nama PWP) had previously signed power-purchase agreements (PPAs) for the development and operation of the plants.
The developer’s contract was awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.
The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate, with a planned capacity of 1,600MW.
The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate, with a capacity of 800MW.
According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn).
MEED reported last October that Nama PWP had received three bids for the development and operation of the gas-fired IPPs.
The other bids included a consortium comprising China’s Shenzhen Energy Group and Oman National Engineering & Investment Company, and a lone bid from Saudi Arabia’s Acwa Power.
Synergy Consulting is the financial adviser and lead adviser to Nama PWP for these projects.
In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.
The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.
In March 2025, the same Sepco 3 and Doosan Enerbility consortium signed an engineering, procurement and construction contract with Saudi Electricity Company for the expansion of the Riyadh Power Plant 12 (PP12).
Located about 150 kilometres northwest of Riyadh, the 1,863MW power plant is expected to be completed in 2028.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/16816237/main.jpg -
Financial challenge tests Iraq’s resolve
13 May 2026
On 21 April, as a fragile ceasefire held between the US and Iran, the Trump administration halted a $500m shipment in cash headed for Iraq, as it sought to clamp down on Iranian-backed Shia militias in the country.
That cash, derived from Iraqi oil exports and routed via the US Federal Reserve to the Central Bank of Iraq (CBI), is a vital cog in Iraq’s financial arteries, enabling it to cover foreign exchange demand.
This was not the first time that Iraq’s financial system has felt the US’s warm breath on its neck.
Back in February 2025, the US Treasury Department blacklisted five Iraqi banks from participating in dollar transactions, citing concerns about their role in illicit financial flows that benefited Iran’s Islamic Revolutionary Guards Corps.
Iraq has also itself often circumscribed dollar use within its own financial system.
In July 2023, the CBI banned 14 banks from conducting dollar transactions in a crackdown on dollar smuggling. In February 2024, it banned a further eight banks from dollar transactions as part of a crackdown on fraud and money laundering.
Dollar pressure
The recent halt in US dollar cash shipments has nevertheless added pressure to Iraq’s parallel currency market gap, says Lucila Bonilla, lead emerging market economist at Oxford Economics.
“The gap between the parallel exchange rate has widened noticeably against the official peg, to around 20%,” she says.
“Dollar demand has risen as citizens and traders seek to hedge uncertainty – dollar deposits are up, and there are reports of a notable shift in the composition of cash holdings toward dollars.”
Ratings agencies see the US move on Iraqi dollar use as a challenge, but one that might not prove too onerous.
“Iraq can overcome a short-term war as it has $100bn of reserves and its debt profile is bearable,” says Gilbert Hobeika, a director at Fitch Ratings.
“But a longer-term conflict will hurt Iraq as the economy is reliant on oil revenues and government involvement, while facing at the same time risk from the US stopping delivery of US dollars.”
How persistent the pressure proves will depend largely on the duration of the Hormuz shock and how the relationship with the US evolves.
“Forming a new government that is palatable to the US could ease the pressure, though Iraq’s protracted government formation process adds uncertainty to that timeline,” says Bonilla.
The US-Iran war is putting even more pressure on banks.
“There are uncertainties with regard to depositors,” says Hobeika. “The public sector banks have weak management and governance structures. Financial reporting is weak, and that puts pressure on asset quality and capitalisation.”
If the conflict lasts a long time, the government will start withdrawing funds to pay salaries and contractors.
“That will affect deposits at the public sector banks in the near term,” says Hobeika.
State-heavy system
Iraq’s banking system is dominated by a handful of state-owned banks with a market share of 75%-80%, and then 60-plus private banks competing for the remaining 20%-25% of the pie.
“Private banks have struggled to compete in a market with limited opportunities, small deposit bases and a narrow range of products, often focusing on very basic activities,” says Lea Hanna, an analyst at Moody’s.
“In 2019, we had a wave of Islamic banks getting bans on dealing with US dollars – reducing what had been a primary source of business.”
A few private banks have benefitted since then, namely those with majority ownership by foreign banks such as National Bank of Iraq, a subsidiary of Capital Bank of Jordan, and Bank of Baghdad, a subsidiary of Jordan Kuwait Bank.
“Supported by their affiliates, these banks are relatively well run compared to domestic peers and have ample capital buffers,” says Hanna.
“They have captured a large market share of US dollar transfers thanks to their strong US correspondent banking relationships that allow them easier access to US dollars. They have seen a surge in their profitability and an increase in their deposit base.”
Financial reform
The CBI has attempted to introduce reforms to the banking system, as part of a wider effort to enable it to channel funding to the private sector.
In early 2025, it increased the minimum issued and paid-up capital requirement to ID400bn ($305m), along with a requirement to establish correspondent banking relationships for foreign-currency trading. The plan was to increase these in ID50bn increments every six months, to hasten sector consolidation.
However, of Fitch’s rated banks, just two – state-owned Trade Bank of Iraq and Mansour Bank, a subsidiary of Qatar National Bank – met the full capital requirement.
“While a lot of banks managed to increase their capital, a number of them didn’t and have been struggling to improve their systems and compliance with anti-terrorism and anti-money laundering regulations,” says Hobeika.
“These systems take a long time to improve, and it costs the banks too. For that reason, they have agreed with the central bank to postpone implementation to 2027/28.”
The expectation is that the number of private Iraqi banks will shrink from 60 to about half that number by 2028.
“Iraq’s banking sector is undergoing a significant overhaul, with the Central Bank pushing through higher capital requirements, improved anti-money-laundering compliance, and a shift towards commercial banks managing their own international correspondent relationships. These moves are welcomed,” says Bonilla.
But the harder work remains, argues Bonilla: state-owned banks still carry high levels of non-performing loans, weak governance and a history of politically directed lending, while private sector credit remains among the lowest in the region.
“The stakes are high as the IMF estimates that a comprehensive reform of the financial sector, alongside broader governance and regulatory changes, could double Iraq’s non-oil growth potential over the medium term, adding around 4 percentage points to GDP,” says Bonilla.
“For now, the reforms address the plumbing. The structural transformation of a banking system to serve the private sector is still largely ahead.”
Clouded outlook
So far, Iraq’s financial system seems to have averted a worst-case scenario of large-scale deposit withdrawals related to the Iran conflict.
Any deposit withdrawals seem to be more related to the introduction of a digital custom system ASYCUDA (Automated System for Customs Data) aimed at helping the government collect revenues, which saw a lot of traders trying to bypass the custom charges.
“This drove some exporters or traders to source US dollars outside the banking system, in the parallel market, to avoid stricter requirements and up-front payment of customs duties. That has now eased,” says Hanna.
Looking ahead, Fitch anticipates that most government financing is likely to come from the CBI through indirect purchases of government securities.
The central bank’s total claims on the central government represented about 52% of the domestic debt stock and 25% of the total debt stock at end-2024, notes the agency.
It envisages that a smaller portion will come from the government’s cash deposits, anticipated to fall to an average 12% by 2027.
Fitch says the CBI’s balance sheet limits refinancing risks, while the FX reserves are large enough to absorb the expansion of that balance sheet without putting pressure on the exchange-rate peg with the US dollar.
Surging foreign direct investment comes as a source of comfort, with annual inflows rising from around $2bn in 2022 to $5bn-$7bn from 2023 onwards.
Reform of the financial system will remain at the top of the new government’s in-tray.
The regional environment is unconducive to this mammoth task, and it can only hope that an end to the conflict would support ongoing Iraqi efforts to build a financial system comparable to that of some of its Gulf neighbours.
MEED’s June 2026 report on Iraq also includes:
> OVERVIEW: Iraq enters era of resilience, reform and rising risks
> OIL & GAS: Iraqi oil and gas sector in crisis
> POWER & WATER: Focus shifts to delivery of Iraq utilities expansion
> CONSTRUCTION: Momentum builds in Iraq’s post-war construction sectorhttps://image.digitalinsightresearch.in/uploads/NewsArticle/16799540/main.gif -
JinkoSolar signs 2GW deal for Abu Dhabi solar project
13 May 2026
China’s JinkoSolar has signed an agreement with Abu Dhabi Future Energy Company (Masdar) to supply 2GW of photovoltaic (PV) modules for the round-the-clock renewable energy project in Abu Dhabi.
The agreement covers the supply of JinkoSolar’s Tiger Neo series modules for the project, which is being developed by Masdar in collaboration with Emirates Water & Electricity Company (Ewec).
The landmark $6bn project combines a 5.2GW solar PV plant with a 19 gigawatt-hour battery energy storage system (bess).
It entered construction in October 2025 with India’s Larsen & Toubro and Power China working as contractors. It is known as the world’s first gigascale round-the-clock renewable energy project.
Masdar had earlier selected JinkoSolar and JA Solar as preferred suppliers for solar PV modules, and CATL (Contemporary Amperex Technology) as preferred supplier for the bess segment.
The project is designed to provide baseload renewable power and address intermittency challenges associated with solar generation. The developers said the scheme will serve as a model for similar projects internationally.
JinkoSolar said the Tiger Neo modules supplied for the project are based on N-type TOPCon technology and have been adapted to meet the technical requirements of the development.
Senior executives from both companies attended the signing ceremony in Abu Dhabi, including Mohamed Jameel Al-Ramahi, CEO of Masdar, and Charlie Cao, CEO of JinkoSolar.
Jinko has won several major contracts in recent years, including a contract to supply solar PV modules with a capacity of 3GW for Saudi Arabia’s Haden and Al-Khushaybi solar projects.
It also recently announced the signing of a 2GW solar PV module supply agreement with China Energy Engineering Corporation (CEEC) for Saudi Arabia’s Phase Six Khurais PV project.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/16813268/main1816.jpg -
Dubai opens prequalification for Jebel Ali STP expansion
13 May 2026
Dubai Municipality has issued a request for qualifications for the Jebel Ali sewerage treatment plant (STP) expansion – phase 3 project.
The DS150/3 project will be delivered under a public-private partnership (PPP) model on a design, build, finance, own, operate and transfer basis.
The project involves the development of a new water resource recovery facility with an ultimate treatment capacity of up to 1 million cubic metres a day (cm/d).
It is being procured through Dubai Municipality’s Sewerage and Recycled Water Projects Department and will be delivered through a two-stage operational approach over a 30-year concession period.
The bid submission deadline is 18 June.
UK-headquartered Deloitte is acting as financial adviser, Aecom as technical adviser and CMS as legal adviser.
Dubai Municipality said the project will also include additional land uses and community-focused amenities as part of broader sustainability and urban integration objectives.
Phase one and two expansion
In April, the deadline was extended for contractors to submit bids for an engineering, procurement and construction (EPC) contract covering the expansion of the Jebel Ali STP phases one and two.
Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.
The upgraded facility will be capable of treating an additional sewage flow of 100,000 cm/d, with the expansion estimated to cost $300m.
The new bid submission deadline is 11 June.
UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
https://image.digitalinsightresearch.in/uploads/NewsArticle/16812872/main.jpg -
Iraq LNG project delayed until next year
13 May 2026
Register for MEED’s 14-day trial access
Iraq’s first liquefied natural gas (LNG) import terminal, which has an estimated project value of $450m, is now expected to become operational in 2027 due to delays caused by the regional war and disruption to shipping through the Strait of Hormuz.
Work on jetty reinforcement and fixed terminal infrastructure at the Port of Khor Al-Zubair has been delayed, according to a statement from US-based Excelerate Energy, which is contracted to develop the facility.
In its statement, the company said: “We are revising our full-year guidance to reflect the delayed startup of our Iraq terminal due to the ongoing conflict in the Middle East.”
It added: “The Iraq project fundamentals remain unchanged. Looking ahead, we continue to have confidence in our sequenced earnings growth through 2028.”
In October 2025, Excelerate signed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first LNG import terminal.
The integrated project includes a five-year agreement for regasification services and LNG supply, with extension options, and a minimum contracted offtake of 250 million standard cubic feet a day (cf/d).
Excelerate said: “Jetty reinforcement and construction of the fixed terminal infrastructure have been delayed temporarily due to the conflict in the Middle East and the terminal is no longer expected to commence operations in the third quarter of 2026 as previously disclosed.
“Project startup is now expected in 2027. The long-term fundamentals supporting the project remain unchanged, driven by chronic power shortages and limited domestic gas processing capacity in Iraq.
“Current conditions further reinforce the country’s need for reliable and scalable LNG import infrastructure and construction will resume as conditions allow.”
Earlier this year, Iraq’s Ministry of Electricity said that the terminal was on track to come online on 1 June, ahead of expected gas shortages during the summer months.
Then, in late April, the ministry said the project had been delayed by several months and was expected to come online in August at the earliest.
Although Iraq is Opec’s second-largest oil producer after Saudi Arabia, it is a net natural gas importer because its lack of infrastructure investment has meant that, until 2023, it flared roughly half of the estimated 3.12 billion cf/d of gas produced in association with crude oil.
Iraq’s reliance on flaring associated gas instead of gathering and processing it has prevented the country from fully realising its potential as a gas producer and forced the Iraqi government to rely on costly gas and electricity imports from Iran.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16803348/main.jpg