meed-logo

line1 line2 line3
SIGN IN / REGISTER

MEED’s 2023 top 10 GCC contractors

28 March 2023

> Improved outlook for the Gulf region’s construction market is not reflected in the 2023 contractor ranking

> Nesma & Partners retains its position as the most active GCC contractor, but its total value of work this year is down 22 per cent on 2022

> Part two of this report, Top 10 GCC contractors by country, can be accessed here

 

The GCC’s construction market is back. After enduring half a decade of low oil prices and capital spending cuts, the region is back with a new generation of ambitious projects that are attracting global attention. 

Dubai may have led previous boom periods with its palm-shaped islands and record-breaking towers, but this time it is Saudi Arabia that is taking the lead with 170-kilometre-long mirrored structures, 400-metre-cubed buildings and, if the plans are approved, a 2-kilometre-tall tower that will be more than twice the height of the current world’s tallest building, Dubai’s Burj Khalifa. 

As the hype builds, the excitement is yet to be reflected in MEED’s contractor ranking for 2023. 

Using data from regional projects tracker MEED Projects, the region’s most active contractor, based on contracts under execution, is Nesma & Partners. While the Saudi firm has retained its position as the most active contractor, its total value of work in 2023 is $5.3bn, down 22 per cent on the $6.8bn of work under execution that it topped the ranking with in 2022.

Further falls

Last year’s second-ranked contractor has fallen even further. Saudi Binladin Group was working on $6.5bn of projects at the execution stage in 2022. In 2023, this has dropped to $4bn, and as the firm’s work on the expansion of the Grand Mosque in Mecca is completed, it may not figure in the ranking in the future.

Last year’s third-ranked contractor has also slid down the rankings. In 2022, India’s Shapoorji Pallonji was working on $5.6bn of projects at the execution stage. This year it is working on $2.9bn. 

Altogether five of the top 10 contractors in the GCC this year have less work than they did last year. If an average of the top 10 is taken, then the number in 2023 has fallen 18 per cent to $3.6bn from $4.4bn last year. 

The five firms that have grown their totals are newcomers to the top 10 this year, the highest-ranked of which is Turkiye’s Limak. 

The contractor’s main project in the GCC is the new terminal building at Kuwait International airport, and a Turkish firm’s presence at number two may be a sign of things to come. After settling political differences with Saudi Arabia and the UAE in 2022, Turkish companies are expected to play a key role in delivering Saudi Arabia’s growing roster of major projects. 

Riyadh, like Neom, will be an important market for contractors over the coming decade

The other newcomers to the top 10 are three Saudi firms, Alfanar, Almabani and Saudi Baytur; and China Harbour Engineering Construction.

Alfanar’s position in the ranking is mostly due to the contract it won to deliver and operate five clusters of community villages on a public-private partnership basis at Neom. That project shows the scale of the Neom schemes that are moving into construction and signals that firms working on the development will perform well in future rankings.

Almabani has been able to secure major contracts on projects in its domestic market. The most recent is the estimated $1.9bn contract that it won this year to deliver the Zone 6 infrastructure works for the Sports Boulevard project that is being developed by the Royal Commission of Riyadh City. 

Riyadh, like Neom, will be an important market for contractors over the coming decade. The city has plans to double in size and major projects that have been launched so far include King Salman airport, New Murraba, Dirriyah Gate, Prince Mohammed bin Salman Nonprofit City, Sports Boulevard, King Salman Park and Qiddiya Entertainment City. 

China Harbour has built its orderbook with project wins in Saudi Arabia and the UAE and is now the second Chinese firm in the top 10. 

The final newcomer is Saudi Arabian Baytur. While it has historical Turkish links, it has been operating as a wholly-Saudi-owned company since 2016.

A significant trend in the GCC ranking is the meagre showing from western contractors

Ranking departures

The five companies that have left the top 10 this year are Qatar’s Urbacon Trading & Contracting Company, Saudi Arabia’s ABV Rock, Kuwait’s Sayed Hamid Behbehani & Sons, Beijing-based China Railway Construction Company and Kuwait’s Mohammed Abdulmohsin al-Kharafi & Sons.

Urbacon’s departure may be short-lived. The firm has experienced a sharp decline in the total value of its projects at the execution stage this year following the completion of projects in the domestic Qatari market ahead of last year’s World Cup.

As construction activity remains slow in Qatar the firm has begun expanding overseas and this year has secured significant orders from Saudi Entertainment Ventures (Seven) for the construction of entertainment centres in Saudi Arabia. 

China Railway’s departure may also be temporary. It has completed work on the UAE’s federal Etihad Rail network, which resulted in it dropping out of the top 10 this year. It may return if it is able to secure work on the raft of regional rail projects that are moving towards the construction phase.  

One other significant trend in the GCC ranking is the meagre showing from western contractors. The only western firm in the top 10 this year is Italy’s Webuild, which has $4.5bn of work at the execution stage. 

With most western contractors continuing to exercise caution when approached to bid on projects in the GCC, it is unlikely that this trend will change in the near future.

Looking ahead to next year’s ranking, Nesma will be a strong contender for the top spot again. In February, the Public Investment Fund (PIF) confirmed that it has invested $1.3bn in four local construction companies to support the handling of projects in the kingdom. 

Nesma was one of the firms that the PIF acquired shares in, along with AlBawani Holding Company, Almabani General Contractors Company and El-Seif Engineering Contracting Company.

The PIF said the investment will allow the firms to scale up their capacity, adopt advanced technologies and improve local supply chains. 

At a time when many contractors in the region are still struggling with financial issues, these companies will now be well placed to play a leading role in the rapidly growing Saudi market. As major contract awards are secured over the next year, these firms will likely also be leading the ranking in 2024.

Top 10 GCC contractors by country 

MEED's April 2023 special report on Saudi Arabia includes:

> ECONOMY: Riyadh steps up the Vision 2030 tempo

> CONSTRUCTION: Saudi construction project ramp-up accelerates

> UPSTREAM: Aramco slated to escalate upstream spending

> DOWNSTREAM: Petchems ambitions define Saudi downstream

> POWER: Saudi Arabia reinvigorates power sector

> WATER: Saudi water begins next growth phase

> BANKING: Saudi banks bid to keep ahead of the pack

https://image.digitalinsightresearch.in/uploads/NewsArticle/10708379/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Dewa retenders pumping stations package

    18 March 2025

    State utility Dubai Electricity & Water Authority (Dewa) has retendered a contract to build pumping stations and related facilities in the emirate.

    The contract covers the construction of a pumping station (PS6) catering to the 30 million imperial gallons (MIGD) a day Ghafat Idah reservoir complex and another pumping station on Endurance Road (PS21), phase one, stream A. 

    The contract covers all electro-mechanical and supervisory control and data acquisition (Scada) works.

    Dewa expects to receive bids for the retendered contract by 15 May.

    The tender requires interested firms to submit a bid bond of AED5m ($1.37m).

    Dewa first tendered the contract in April last year and received six bids three months later.

    Local contracting company Sawaed Alqafelah General Contracting (Syed Contracting) submitted the lowest bid of  AED78.76m ($21.44m). 

    Japan's Torishima Pump Manufacturing Company – the only non-local bidder – offered the second-lowest bid of AED86.05m, with an optional offer of AED85.12m.

    The other bidders and their offers were:

    • Danway Electrical & Mechanical (local): AED99.4m
    • Binghalib Technology (local): AED179.24m (main); AED 174.96m (option one)
    • Green Oasis General Contracting (local): AED200.18m
    • Emarat Aloula Contracting (local): AED242.69m (main); AED239.08m (option one)

    Three companies declined to bid for the contract, including India's Larsen & Toubro, the local Lindenberg Emirates and United Engineering Construction.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13502735/main.jpg
    Jennifer Aguinaldo
  • Tabreed confirms $408m Palm Jebel Ali deal

    17 March 2025

    Abu Dhabi-headquartered National Central Cooling Company (Tabreed) has signed a concession agreement with Dubai Holding Investments, part of Dubai Holding, to provide district cooling services for Palm Jebel Ali in Dubai. 

    MEED reported in January that talks were under way for a contract to develop new district cooling plants on Palm Jebel Ali, with an initial capacity of 25,000 refrigeration tonnes (RTs).

    Tabreed said the system will address the need for approximately 250,000 RTs of cooling capacity and require an estimated investment of AED1.5bn ($408m) over multiple phases, making it one of the largest district cooling plant projects ever awarded in the UAE.

    In a statement, Tabreed said the agreement establishes a joint venture, with Tabreed holding a 51% stake and Dubai Holding Investments retaining the remaining 49%.

    Tabreed’s major shareholders, sovereign investor Mubadala (42%) and French utility developer Engie (40%), supported the firm’s proposal to develop the project.

    Tabreed CEO Khalid Al-Marzooqi and Dubai Holding Investments CEO Omar Karim signed the agreement in the presence of senior officials from Tabreed, Dubai Holding, Mubadala and Engie. 

    The construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027.

    The deal is subject to customary approvals.

    Tabreed acquired an 80% stake in Emaar Property’s Downtown Dubai district cooling business at a cost of AED2.48bn ($675m) in 2020.

    Tabreed raised AED700m ($190.6m) via an inaugural, five-year green sukuk as the first issuance under its new $1.5bn trust certificate issuance scheme, the firm said in early March.

    The firm reported a revenue of AED2.4bn and a net profit before tax of AED624m in 2024, representing a 4% increase over 2023, excluding one-offs.

    Its Ebitda increased by 5% year-on-year to AED1.25bn, with an improved margin of 51%. Net profit after tax stood at AED570m, up 32% compared to AED431m in 2023.

    Mixed-use developments in the region commonly deploy district cooling. The process involves using a central chiller plant to cool water, which is circulated to multiple buildings to provide cooling.

    It is considered more energy-efficient, consuming at least 20% less electricity than conventional air-cooled or individual water-cooled air conditioning systems.

    Photo credit: Tabreed

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13498692/main.jpg
    Jennifer Aguinaldo
  • Alkhorayef wins four water contracts

    17 March 2025

    The local firm Alkhorayef Water & Power Technologies Company has won the contract to operate and maintain four water treatment plants in Saudi Arabia.

    The water treatment plants are located in Wadi Aldawaser, Alsalil, Alsafa in Najran and Alwajid.

    According to a company filing, the contract is worth SR58.78m ($15.7m).

    Saudi Water Authority, formerly Saline Water Conversion Company (SWCC), awarded the contract to Alkhorayef on 16 March.

    In July last year, Saudi Arabia’s National Water Company (NWC) awarded contracts to install new water and wastewater connections across six regions in Saudi Arabia.

    The 36-month contracts, described as blanket purchase agreements, were worth SR190.8m ($50.8m).

    The water and wastewater connections will be located in Al-Qassim, Hail and Jizan and in the north, south and central sectors of the kingdom’s Eastern Region.

    MEED’s April 2025 report on Saudi Arabia includes:

    > POWER: Saudi power sector enters busiest year
    > WATER: Saudi water contracts set another annual record
    > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
    > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
    > CONSTRUCTION: Reprioritisation underpins Saudi construction
    > TRANSPORT: Riyadh pushes ahead with infrastructure development
    > BANKING:     Saudi banks work to keep pace with credit expansion

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13498519/main.jpg
    Jennifer Aguinaldo
  • Firms prepare Al-Zarraf solar PV bids

    17 March 2025

     

    Prequalified firms have approximately three months to form consortiums and prepare proposals for a contract to develop Abu Dhabi’s fifth utility-scale solar photovoltaic (PV) independent power project (IPP).

    State utility Emirates Water & Electricity Company (Ewec) prequalified 16 companies that can bid for the Al-Zarraf solar IPP, also known as PV5, which will have a capacity of 1,500MW.

    Industry sources say up to five consortiums are being formed to bid for the contract as of mid-March.

    The 10 firms that may bid as managing members of the bidding consortiums are: 

    • AlJomaih Energy & Water (Saudi Arabia)
    • EDF Renewables (France)
    • International Power (Engie)
    • Jera Nex (Japan)
    • Jinko Power (Hong Kong)
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Korea Western Power Company (Kowepo)
    • Marubeni Corporation (Japan)
    • SPIC Hunaghe Hydropower Development Company (China)
    • Sumitomo Corporation (Japan)

    The following six companies may bid as consortium members:

    • Alfanar Company (Saudi Arabia)
    • Alghanim International General Trading & Contracting (Kuwait)
    • China Power Engineering Consulting Group International Engineering Company (CPECC, China)
    • Etihad Water & Electricity (UAE)
    • Orascom Construction (Egypt)
    • PowerChina International Group (China)

    Ewec received expressions of interest for the contract from 20 companies and consortiums in October last year and issued the tender in January.

    It expects to receive bids for the contract by 12 June, one of the sources said.

    Like the first four solar IPPs tendered by Ewec, the Al-Zarraf solar IPP will involve the development, financing, construction, operation, maintenance and ownership of the solar PV plant and associated infrastructure.

    The successful bidder or consortium will enter into a long-term power-purchase agreement with Ewec as the sole procurer of electricity.

    Ewec opened the bids for its fourth utility-scale solar project, the Al-Khazna solar IPP or PV4, on 30 October.

    Engie offered a levelised cost of electricity (LCOE) of AED fils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by roughly 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AED fils 5.54126/kWh.

    A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AED fils 5.86311/kWh. 

    Ewec is expected to award the Al-Khazna solar IPP contract to Engie around the second quarter of this year, as MEED reported.

    Successful PV bidders

    In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.

    Four years later, in 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV, which was inaugurated last year.

    In April 2024, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.

    Ewec forecasts that at least 18,000MW of solar PV will be in operation by 2035, supporting the realisation of the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

    The programme envisages renewable and clean energy sources meeting 60% of the emirate’s total power demand at the end of the forecast period. 

    MEED’s April 2025 report on Saudi Arabia includes:

    > POWER: Saudi power sector enters busiest year
    > WATER: Saudi water contracts set another annual record
    > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
    > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
    > CONSTRUCTION: Reprioritisation underpins Saudi construction
    > TRANSPORT: Riyadh pushes ahead with infrastructure development
    > BANKING:     Saudi banks work to keep pace with credit expansion

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13498422/main.jpg
    Jennifer Aguinaldo
  • Contractors submit final offers for Diriyah Arena district

    17 March 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Diriyah Company has received the last and final offers from firms for the contract to build the Arena Block assets in the Boulevard Southwest section in the DG2 area of the Diriyah gigaproject.

    MEED understands that final proposals were submitted last week and the award is expected shortly for the multibillion-riyal package, which consists of mixed-use facilities, including offices.

    Tendering activity is also progressing on several other major schemes at Diriyah, including the Royal Diriyah Opera House project. It is understood that the bid evaluation has reached the final stages and the contract will likely be finalised in March.

    In January, the client also asked firms to prequalify for a contract to build a new museum in the DG2 area of the Diriyah project.

    MEED previously reported that Diriyah Company had asked firms to prequalify for another contract covering the infrastructure development works in the DG2 area of Diriyah.

    Developed by Diriyah Company, the Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it covers 14 square kilometres and combines 300 years of history, culture and heritage with hospitality facilities.

    The company awarded several significant contracts last year, including two major contracts worth over SR16bn ($4bn). These include an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.

    In late July, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.

    In December, MEED reported that Diriyah Company had awarded an estimated SR5.8bn ($1.5bn) contract to local firm Nesma & Partners for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.

    Once complete, Diriyah will have the capacity to house 100,000 residents and visitors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13497960/main.jpg
    Yasir Iqbal