meed-logo

line1 line2 line3
SIGN IN / REGISTER

EXCLUSIVE: Alec acquires Abu Dhabi contractor Target

16 December 2022

 

Dubai-based contractor Alec has completed the acquisition of Abu Dhabi contractor Target Engineering Construction Company. The $100m deal creates a contracting group with cross-sector capabilities that hopes to double its turnover in the next five years.

Alec is one of the region’s leading building contractors and is working on landmark projects such as One Zabeel in Dubai and the Natural History Museum in Abu Dhabi.

Target is an engineering, procurement and construction (EPC) contractor working on oil and gas projects including the Borouge 4 petrochemicals complex in Abu Dhabi and the North West Development of the Dalma field, also in Abu Dhabi.  

Ambitions to double size

Target, previously owned by Arabtec, has an annual turnover of about AED1.5bn ($408m) and is a significant addition to the Alec business.

“Target will constitute about 30 per cent of our [combined] turnover,” says Kez Taylor, CEO, Alec.

“Going into the future, we see both businesses growing because there is work out there that needs to be executed for both Alec and Target. We see the size of both businesses doubling over the next five years.”

Although Alec and Target are both contractors, their operations are complementary.

“It is a very good fit for us,” says Taylor. “We do complex building jobs; they do oil and gas, energy and marine.”

We have been able to save 11,000 jobs and keep a company working

John Deeb, CFO, Alec

Workforce of 21,000

In terms of manpower, the group is now one of the largest in the region. Target has a workforce of 11,000, and together with Alec’s 10,000, the group has a total workforce of 21,000.

“We feel we have a good cultural mix because they are contractors and are similar to us. When we interact, we talk the same language,” says Taylor. 

While both companies will assist one another and work together, in terms of management, Target will continue to have its own management.

“Target will run Target and we will allow them to operate,” says Taylor.

Financial standing

Alec was able to complete the acquisition thanks to its strong financial position.

“We don’t have debt as a business. Over the years, we have actually avoided it. We have a strong balance sheet and that’s why we were in a position to make a move like this,” says Taylor.

Target was available for sale after its previous owner Arabtec filed for bankruptcy in 2020. 

“It started when Arabtec went under,” says John Deeb, CFO, Alec. “If you look at Alec in the past, we’ve never really done big acquisitions. We have grown our businesses organically, so we weren’t looking [to acquire].

“Oil and gas was something we had been looking at. We wanted to do something, and then when Arabtec went insolvent, we talked to people about what was good at Arabtec because obviously it wasn’t all bad. Target was the one thing that stood out.”

Bankruptcy law

The Arabtec insolvency has been a key test of the UAE’s bankruptcy law, which came into force in late 2016.

“This deal is one of the first to show how the process works,” says Deeb. “We have been able to save 11,000 jobs and keep a company working.”

Acquisition benefits

The acquisition helps Alec diversify its business and gain access to one of the region’s most active sectors.

“We have focused on the high-end building market. We haven’t done roads, bridges – we decided to stay away from that, but oil and gas is something that does make a lot more sense as the barriers to entry are higher and it’s more challenging work,” says Deeb.

The outlook for investment in projects in the oil and gas sector is backed by strong economic fundamentals and the increasingly important energy transition.

“The UAE has the capacity to produce 4 million barrels a day (b/d) and they want to get it up to 5 million b/d by 2027. In Saudi Arabia, they are producing about 10 million b/d, and they want to increase that to 13 million b/d. That’s a 25 per cent increase for the UAE and a 30 per cent increase for Saudi Arabia. Coupled with that, you have net-zero targets,” says Taylor. 

Geographically, the two main markets for the group are Saudi Arabia and the UAE.

“There is a huge amount of work to be done. The market share in the UAE for Alec is about 2 per cent and in Saudi Arabia, we see it being about 1 per cent,” says Taylor. 

Saudi gigaprojects gear up for $569bn of contract awards

Construction will also play a key role in helping the UAE and Saudi Arabia achieve their long-term economic aspirations.

“The UAE wants to be the leading country and economy in the world by 2071 and 10 per cent of that GDP is made up of the construction sector,” says Taylor.

“Saudi Arabia and the UAE are closely aligned in terms of their ambitions, and we believe we can play a significant role in achieving this.”

Watch: Saudi Arabia gigaprojects market outlook

https://image.digitalinsightresearch.in/uploads/NewsArticle/10443479/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Qiddiya plans $7bn theme park hub near Paris

    25 August 2026

    Saudi Arabia’s Qiddiya Investment Company plans to develop a mixed-use leisure destination worth about €6bn ($7bn) at Cergy-Pontoise in the Ile-de-France region, in one of the largest Saudi investments in French tourism infrastructure to date.

    The plan was set out in a joint statement issued on 24 August at the close of a state visit to France by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud. France and Saudi Arabia signed a memorandum of understanding (MoU) covering the project during the two-day visit.

    The destination will bring together entertainment, leisure, hospitality, culture and sport, according to the joint statement. Current plans envisage up to three major entertainment anchors, hotels and complementary leisure experiences, with the €6bn figure covering the full development lifecycle.

    One of the three parks is expected to be manga-themed, according to the French presidency. The themes of the other two have not been disclosed. The parks will be built and opened in stages, with construction expected to take several years. No opening date has been given.

    The parks are expected to create about 22,000 direct jobs, according to the French presidency, compared with about 20,000 at Disneyland Paris. Cergy-Pontoise lies about 30 kilometres northwest of Paris.

    Qiddiya is a subsidiary of the Public Investment Fund, Saudi Arabia’s sovereign wealth fund. Its flagship project is a giga-scale entertainment, sports and cultural city on the outskirts of Riyadh, one of several gigaprojects under Vision 2030.

    The theme park plan was among a wider set of agreements reached during the visit. Both sides welcomed the announcement of 21 agreements and MoUs at a French-Saudi investment roundtable, spanning energy, industry, financial services, transport and logistics, health, culture, tourism and artificial intelligence. Bilateral trade reached about $11.8bn in 2025.

    It is not the first time Saudi capital has backed a French theme park. Kingdom Holding Company was a longstanding investor in the operator of Disneyland Paris, first taking a stake in 1994 and participating in successive recapitalisations before Walt Disney Company moved to near-full ownership in 2017.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18987274/main.png
    Colin Foreman
  • Masdar shelves Abu Dhabi green hydrogen project

    25 August 2026

     

    Abu Dhabi Future Energy Company (Masdar) has decided to cancel a planned project to build a green hydrogen plant in Abu Dhabi that would have supplied up to 100MW of renewable hydrogen to local steelmaker Emsteel for green steel production.

    After contractors submitted bids for the project last year, Masdar asked bidders in the first quarter of this year to extend the validity of their proposals until the end of August to allow “more time to study and evaluate bids”, according to one source.

    However, Masdar issued a notification to all bidders on 1 August stating that it had decided to cancel the project, sources told MEED.

    Contractors that submitted bids for the Masdar green hydrogen project included:

    • Envision (China)
    • Larsen & Toubro (India)
    • PowerChina (China)
    • Samsung E&A (South Korea)
    • Sinopec (China)

    Masdar did not respond to MEED’s request for comment on the information.

    In its current steelmaking process, Emsteel uses hydrogen produced by steam reforming of natural gas as a reducing agent to extract iron from iron ore. The core objective of Masdar’s planned project was to install a 100MW electrolyser at Emsteel’s main manufacturing hub in Musaffah, Abu Dhabi, to supply green hydrogen for future clean steel production.

    Masdar initiated work on the project in 2024 by awarding a front-end engineering and design (feed) contract to locally based NT Energies, a joint venture of Abu Dhabi’s NMDC Energy and France-based Technip Energies.

    Masdar then sought proposals last year for engineering, procurement, construction, demolition (if needed for brownfield activities), pre-commissioning, commissioning, start-up, and two years of operations and maintenance (extendable up to 20 years) at the planned facility.

    Contractors submitted bids by the end of the year, according to sources.

    The project involved green hydrogen production using alkaline water electrolysis, with a total installed electrolyser capacity of 100MW.

    The scope of work involved building electrolyser stacks and modules, hydrogen separation and compression units, associated utilities and storage systems, and electrical, instrumentation and control systems.

    It also included tie-ins to pre-defined interface points, including (but not limited to):

    • a grid power supply connection to the MOSF substation in Musaffah that exists within the Emsteel complex and is operated by Taqa Transmission
    • a water supply connection to a nearby Taqa Distribution network

    Supporting infrastructure included a substation, a motor control centre, and ancillary plant buildings and facilities.

    Masdar’s planned 100MW electrolyser project at the Emsteel facility would have represented a step up from a previous pilot project by the two Abu Dhabi-owned companies.

    The partners inaugurated a pilot green hydrogen plant at Emsteel’s manufacturing complex in Musaffah in October 2024. It incorporates a 2.1MW electrolyser and is designed to support the production of up to 5,000 tonnes of green steel a year.

    This made Emsteel the only steelmaker in the Middle East to use green hydrogen to produce green steel on a pilot basis.

    “Sustainability is central to Emsteel’s innovation, competitiveness and long-term growth. Today, approximately 89% of our steel business electricity consumption comes from clean sources, and our steel carbon emissions intensity is around 40% lower than the World Steel Association global average,” Michael Rion, chief commercial officer of Emirates Steel, part of Emsteel Group, told MEED in a recent interview.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18911651/main0611.jpg
    Indrajit Sen
  • Oman invites bids for Musandam renewables study

    25 August 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued a request for proposals (RFP) for techno-economic consultancy services to assess the feasibility of renewable energy options in Musandam Governorate.

    The study will examine solar photovoltaic (PV), wind and hybrid renewable energy configurations. It will also assess battery energy storage systems (bess) and other renewable energy and energy storage technologies.

    The consultant will be required to determine which technologies are technically and economically justified for the governorate.

    The bid submission deadline is 24 September.

    The Musandam power system is served primarily by the 123MW Musandam independent power plant (IPP), which began operating in 2017. The governorate has historically relied on small diesel-fired units, but has been seeking to move away from diesel-fired power generation for several years.

    Nama PWP has previously said it was exploring renewable energy options in Musandam to meet future additional capacity requirements.

    Its latest seven-year statement, released in March, forecasts peak electricity demand in Musandam to rise from 91MW in 2024 to 130MW in 2031, an average annual increase of 5%. Average demand is forecast to rise from 52MW to 73MW over the same period.

    The plan says demand growth is being driven by distribution-level load and projects aimed at boosting tourism, economic and commercial activity. 

    Separately, the utility recently invited bids for financial and commercial consultancy services covering three 1GW solar IPPs targeted for commercial operation by the second quarter of 2030.

    The bid submissions deadline is 10 September.

    The three projects covered by the financial and commercial consultancy tender are understood to also be part of the 4GW programme, for which a technical advisory tender was issued on 15 July.

    Bidding for this tender closes on 26 August.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18983679/main.jpg
    Mark Dowdall
  • US launches sanctions campaign against Iran

    25 August 2026

    The US has launched a sweeping sanctions campaign against Iran and the entities that trade with it, imposing measures on almost 60 individuals, companies and vessels while expanding the reach of secondary sanctions across five sectors of the Iranian economy.

    The campaign, named Operation Economic Outcast, was announced on 24 August by US treasury secretary Scott Bessent, who described it as an economic D-Day for Iran. He said Washington’s objective was to sever every economic lifeline sustaining the Iranian regime.

    The treasury’s Office of Foreign Assets Control (Ofac) issued five sectoral sanctions determinations under Executive Order 13902, covering digital assets, technology, gold, aviation and shipping. The determinations allow Ofac to sanction any person operating in those sectors, regardless of location. Washington said Iran uses cryptocurrency for sanctions evasion, seeks advanced technology for its weapons programmes, uses gold to stabilise the rial, and relies on commercial aviation and shipping networks to move fighters, weapons and oil revenue.

    The measures build on earlier determinations targeting Iran’s financial, petroleum and petrochemical sectors.

    Ofac also sanctioned close to 60 entities, individuals and vessels across multiple jurisdictions, including UAE-based entities, over alleged involvement in nuclear and missile procurement, cyber operations and oil revenue networks. The designations named a network of brokers, companies and shadow fleet vessels operating across the UAE, Hong Kong, China, Singapore, Switzerland and other regions to transport Iranian oil and channel revenue to the Islamic Revolutionary Guard Corps.

    Among those designated were shipping brokers and bunkering firms based in the UAE that Washington said facilitated Iranian oil shipments and provided services to sanctioned vessels. The treasury also identified several shadow fleet tankers as blocked property, saying they had moved millions of barrels of Iranian crude and petroleum products, mainly to China.

    Separately, the treasury targeted a procurement network spanning the Middle East and East Asia that it said supported Iran’s acquisition of proliferation-sensitive equipment, along with a cyber group directed by Iran’s Ministry of Intelligence & Security.

    Bessent said Washington was pressing governments to shut down Iran-related activity within defined timelines, warning that entities facilitating money laundering or sanctions evasion for Iran risked being cut off from the US financial system. He declined to name specific countries.

    The campaign follows the UAE’s own move against Tehran. On 19 August, the UAE suspended all trade, commercial exchanges and financial transactions with Iran with immediate effect, citing regional escalation. The UAE has historically been one of Iran’s most significant trading partners, with much of the relationship built on re-export trade routed through Dubai.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18983152/main.jpg
    Colin Foreman
  • Kuwait tenders $3.3bn gas processing facility

    25 August 2026

     

    State-owned Kuwait Gulf Oil Company (KGOC) has issued the tender for the development of an onshore gas plant next to the Al-Zour refinery, according to industry sources.

    The project budget is estimated at $3.3bn, and the bid deadline is 29 December, with a meeting for contractors scheduled for 14 September.

    The tender was issued on 23 August.

    The proposed plant will have the capacity to process up to 632 million cubic feet a day of gas and 60,000 b/d a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    In February, MEED reported that at least seven companies had shown interest in participating in the tender.

    Contractors that sent representatives to previous meetings to discuss the project include:

    • Samsung E&A (South Korea)
    • Larsen & Toubro (India)
    • Tecnicas Reunidas (Spain)
    • Saipem (Italy)
    • Hyundai Engineering & Construction (South Korea)
    • Hyundai Engineering Company (South Korea)
    • JGC (Japan)

    The tender process is using a fast-track model, which means that Kuwait’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

    Capt typically reviews the technical and commercial evaluations of bids and verifies that the bidding process is competitive.

    It is understood that not requiring Capt to approve this tender is expected to speed up the tender process.

    Iran disputes ownership of the field, referring to it as Arash.

    Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

    The Dorra field’s close proximity to Iran could make development difficult due to current security concerns.

    The offshore elements of the wider Dorra field development project are expected to be especially difficult to protect from attacks from Iran.

    Earlier this month, MEED revealed that Al-Khafji Joint Operations (KJO) had selected contractors for two major offshore packages under the Dorra field facilities development project.

    KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company and Kuwait Petroleum Corporation subsidiary KGOC, has divided the engineering, procurement and construction (EPC) scope for the Dorra gas production project into four packages: three offshore and one onshore.

    US-based McDermott International has secured offshore package 2A, valued at about $1.5bn, according to sources.

    A consortium of India’s Larsen & Toubro Energy Hydrocarbon (LTEH) and Italian contractor Saipem has secured package 2B, sources told MEED.

    Estimated at about $3.7bn, package 2B is the largest of the three offshore EPC packages under the Dorra field facilities project.

    MEED reported in March that the LTEH/Saipem consortium had emerged as the lowest bidder for offshore package 2B.

    Contractors submitted bids for offshore packages 2A and 2B by the 9 March deadline, MEED previously reported. Bid validity was understood to expire on 15 August, prompting KJO to issue letters of intent to the selected contractors earlier this month, sources said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18964461/main.png
    Wil Crisp