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
  • Seven bid for Bahrain highway upgrade

    21 September 2026

    Register for MEED’s 14-day trial access 

    Seven contractors have submitted bids for the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade project.

    According to results published by the Bahrain Tender Board, the firms that have submitted bids include:

    • Nass Contracting Company
    • Haji Hassan Group
    • Almoayyed Contracting Group
    • Mohammed Abdulmohsen Al-Kharafi & Sons
    • Eastern Asphalt & Concrete Production
    • Cebarco Bahrain
    • Kingdom Asphalt

    The contract scope includes expansion works on 2 kilometres of the highway. It consists of a four-lane dual carriageway with service roads on both sides.

    The scope of works also includes excavation and backfill work, construction of stormwater drainage networks, a pumping station, installation of ducts for future utilities, upgraded street lighting, traffic signs and directional signage.

    The project aims to improve traffic capacity, reduce congestion and enhance safety along the transport corridor linking Manama with industrial zones.

    In April, MEED reported that Bahrain had approved a financing agreement framework to fund the construction of the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade.

    In March last year, the Kuwait Fund for Arab Economic Development and the Bahraini government signed a KD10m ($32.4m) loan agreement to fund the second phase of the project, which is expected to cost about $404m.

    This was followed in September 2025 by the appointment of US-based Parsons Corporation on a $1.5m contract to provide pre-contract engineering consultancy services for the project.

    According to data from regional project tracker MEED Projects, construction of the first phase was completed in 2020.

    A joint venture of local firm Nass Contracting and Kuwait’s KCC Engineering & Contracting undertook the main construction works.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19847073/main.png
    Yasir Iqbal
  • Oman reveals Sohar airport and Salalah Thumrait Road plans

    21 September 2026

    Oman is planning a new passenger terminal at Sohar Airport to expand regional air connectivity and strengthen the airport’s role in the national aviation network.

    According to Said Bin Hamoud Al-Maawali, Oman’s minister of transport, communications and information technology, new routes are expected to be announced before the end of the year. Potential destinations include Dammam in Saudi Arabia, Gwadar in Pakistan, and southern Iran.

    The planned terminal and additional routes will give residents of northern Oman more travel options.

    Al-Maawali also provided an update on the long-delayed Salalah-Thumrait truck road, saying the project will be procured through a conventional tendering model rather than a public-private partnership (PPP).

    In August 2023, Oman shortlisted five of eight prequalified teams to compete for the Salalah-Thumrait truck road project, which was set to be the sultanate’s first PPP road project.

    The 67-kilometre road project is specially designed for heavy vehicles. 

    The road is a key link in Dhofar’s transport network, connecting Thumrait with Salalah and supporting movement between the interior and the governorate’s main urban and economic centre.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19794881/main.jpg
    Yasir Iqbal
  • ADES completes acquisition of Saipem’s Saudi drilling business

    18 September 2026

    Register for MEED’s 14-day trial access 

    Al-Khobar-based ADES Holding Company has completed a transaction to acquire Italian oil and gas contractor Saipem’s shallow-water drilling subsidiary based in Saudi Arabia.

    Under the deal, ADES Saudi, an indirect subsidiary of Saudi Stock Exchange (Tadawul)-listed ADES Holding, will acquire Saudi Arabian Saipem, which operates a fleet of five jack-up rigs.

    The fleet includes three owned rigs – Perro Negro 7, Perro Negro 8 and Perro Negro 10 – as well as two leased rigs, Perro Negro 11 and Perro Negro 13. Four of the acquired rigs operate in Saudi Arabia, while Perro Negro 10 operates in Mexico under a charter structure and retains a valid contract in Saudi Arabia.

    ADES began the transaction to acquire Saudi Arabian Saipem in June, when it was estimated to be valued at about $285m. The deal was structured on a debt-free, cash-free basis, which was to be settled entirely in cash upon closing.

    Following completion, ADES operates a fleet of 128 units, comprising 88 offshore units – including 51 premium units – and 40 onshore rigs.

    The transaction also marks ADES’ entry into Mexico, extending the company’s international footprint to 21 countries, and adds approximately SR3.7bn ($992.9m) in backlog as of the completion date.

    The purchase of Saudi Arabian Saipem by ADES Holding follows the company’s takeover of Dubai-based, Oslo-listed Shelf Drilling in November last year, in a transaction valued at $379m. Following the completion of the cash merger, Shelf Drilling was wholly delisted from the Oslo Stock Exchange.

    The combined Shelf Drilling-ADES entity has been operating as a global player in shallow-water drilling in the world’s most prolific basins, with a fleet of 83 offshore jack-ups, including 46 premium jack-ups and 40 onshore rigs. The acquisition expanded ADES Holding’ global footprint from 13 to 19 countries, allowing entry and deeper operational integration into Southeast Asia, India, West Africa, the North Sea and the broader Mediterranean.

    Saudi Arabian Saipem generated revenues of SR636m ($170m) in 2025, highlighting the scale of the business being transferred.

    The divestment aligns with Saipem’s broader industrial strategy of reducing exposure to mature shallow-water drilling markets and concentrating resources on deepwater and harsh-environment offshore projects, where technical complexity and barriers to entry are generally higher.

    These segments have attracted growing investment in recent years as operators pursue offshore developments in regions such as the North Sea, Brazil, West Africa and the US Gulf of Mexico.

    For ADES, the acquisition further expands its presence in the Middle East offshore drilling market, particularly in Saudi Arabia, one of the world’s largest offshore jack-up rig markets, driven by activity from Saudi Aramco.

    Saipem previously said proceeds from the transaction will be used in accordance with the objectives outlined in its industrial plan. The Milan-listed company was advised on the transaction by Moelis & Company as financial adviser and Clifford Chance, together with AS&H Clifford Chance, as legal counsel.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19795697/main5616.jpg
    Indrajit Sen
  • SAR tenders design review consultancy for GCC rail link

    18 September 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia Railways (SAR) has issued a request for proposals (RFP) for a design management and review consultant to oversee engineering works on the GCC railway network, the latest step in advancing the long-delayed regional rail link.

    The RFP was issued on 9 September, with a submission deadline of 18 October.

    The tender seeks a consultant to manage, audit and verify deliverables produced by SAR's separately appointed design services consultant, rather than carry out the design itself. The tendering for the design services consultancy is currently in progress.

    Construction will be tendered separately through competitive bidding once designs are approved.

    The GCC railway will run for about 672 kilometres (km) inside Saudi Arabia, linking the kingdom's existing network to Kuwait, Qatar, the UAE and Bahrain, with four sections of about 141km, 200km, 151km and 21km, respectively.

    The line is planned as a single-track, non-electrified corridor for mixed freight and passenger traffic, with a maximum axle load of 32.4 tonnes and passing loops for bidirectional working.

    The appointed consultant will develop a design management and review plan covering governance, interdisciplinary coordination and stage-gate approvals, and will issue formal review and audit reports against SAR's requirements and international standards.

    The scope also covers stakeholder engagement, interface management and oversight of land acquisition activity tied to the design consultant's land acquisition plan.

    Key design stages are expected to take about 16 months: four months for concept design, six for preliminary design and six for issued-for-construction design, each with four weeks of contingency.

    SAR has asked bidders to mobilise a core team from day one. These must include a project director, engineering and design manager, stakeholder manager and lead document controller, all based at SAR's offices, with minimum experience thresholds ranging from three years for junior operators up to 25 years, including 15 in rail, for the project director role.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to cover about 2,186km in total.

    The route length within each member state is as follows:

    • UAE – 684km
    • Saudi Arabia – 672km
    • Oman – 306km
    • Qatar – 283km
    • Kuwait – 145km
    • Bahrain – 36km

    The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80km/h–120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19783331/main.gif
    Yasir Iqbal
  • Tender issued for Libyan gas project

    17 September 2026

    An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

    The bid submission deadline is 2pm today (17 September) Libyan time.

    The scope of the project includes provision of:

    • An environmental baseline study (EBS)
    • An environmental impact assessment (EIA)
    • An environmental management plan (EMP)

    The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

    MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

    The joint venture owns and operates six major oil and gas fields across the North African country.

    According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:

    • Libyan environmental legislation
    • Ministry of Environment requirements
    • NOC environmental guidelines
    • Applicable international environmental standards and best practices

    The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

    The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    It has six main packages:

    • Onshore package
    • Offshore Structure A
    • Offshore Structure E
    • Subsea pipeline package
    • Site preparation work
    • Carbon capture and storage facility

    Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

    Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

    The existing onshore complex includes housing, processing units, storage facilities and export facilities.

    It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

    The planned expansion of the complex will involve:

    • Construction of a new fourth gas processing train
    • Construction of a third condensate train
    • Construction of a third natural gas liquids fractionation train
    • Construction of a fourth sulphur recovery unit train
    • Installation of a hydrogen sulphide enrichment unit
    • Installation of a sulphur recovery unit
    • Construction of other associated facilities

    The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748920/main.png
    Wil Crisp