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
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Egypt seeks to accelerate gas pipeline project with Libya

    10 November 2026

    Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.

    Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.

    Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.

    Egypt is currently trying to address an energy squeeze that has escalated ​due to elevated global liquefied natural gas (LNG) prices since the ​start of the US-Israeli war on Iran in February of this year.

    In his statement, Abdelatty called ‌for ⁠cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export ​it.

    He also said that Abdulsadek would ​visit ⁠Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

    The ⁠statement ​did not provide ​details on costs or the status of the projects.

    Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.

    In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg
    Wil Crisp
  • Omani company signs Kuwait drilling contract

    10 November 2026

    Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).

    Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.

    The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.

    The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.

    “It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”

    He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”

    In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png
    Wil Crisp
  • Adnoc Drilling wins $315m Kuwait offshore rig deals

    10 November 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.

    The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.

    While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.

    The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.

    It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.

    On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.

    KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.

    The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.

    The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.

    This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg
    Wil Crisp
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal