The Middle East is a burgeoning hub for construction activity. Seven countries in the region have awarded at least $1.6 billion worth of construction contracts during the first half of 2022. Saudi Arabia and the United Arab Emirates (UAE) in particular are developing some of the world’s most ambitious and exciting infrastructure projects, including the 78-story Museum of the Future (Dubai) and the $500 billion planned megacity NEOM (Saudi Arabia). According to Mordor Intelligence, the construction market in the Middle East is expected to grow at a 5 percent compound annual growth rate by 2027.
This means plenty of commercial and residential build opportunities for the region’s leading contractors, which include ALEC and Orascom Construction. The following is a closer look at these companies and the two other contractors selected to the shortlist for the Construction Business News (CBN) 2022 Contractor of the Year Award.
1. ALEC
Founded in 1999, ALEC is the fourth-most valuable contractor in the Middle East and North Africa (MENA) based on Forbes’ methodology, which considers company age, number of employees, value of projects completed, and value of projects under construction. In addition to construction services, ALEC operates separate business divisions for mechanical, electrical, energy, fitout and refurbishment projects, equipment rental, advanced engineering, and data center solutions. Since its inception, ALEC has won dozens of industry awards, including 19 for Contractor of the Year and 12 for Project of the Year.
For 2022, ALEC completed major projects like the KSA Pavilion at Expo 2020 Dubai and the Dubai Hills Mall. Accessible from Downtown Dubai and other nearby areas via Al Khail Road and Umm Suqeim Street, the Dubai Hills Mall is a world-class shopping center with a variety of outlets and restaurants. It also houses a first-of-its-kind indoor roller coaster that blends reality and cinematic special effects in a 2.5-minute ride extending high above the Dubai skyline.
In February, ALEC was awarded an SR2.8 billion contract to develop Saudi Arabia’s first-ever water theme park at Qiddiya, a planned city being constructed outside of Riyadh. In the past, ALEC has delivered projects such as SeaWorld Abu Dhabi, Dubai Marina Mall, Vida Hotel, and Oasis Hospital. The firm also made the CBN shortlist for Fitout Firm of the Year, Fitout Project of the Year, HSE Initiative of the Year, Retail Project of the Year for Dubai Hills Mall, and Commercial Project of the Year for Mobility Pavilion.
2. Orascom Construction
The most valuable construction company in the Middle East based on Forbes’ methodology, Orascom Construction is an Egyptian firm with nearly 75 years of history. Launched in 1950, Orascom generated $1.7 billion in revenue in the first half of 2021 and signed $920 million of new project contracts in Egypt during the same time. It is building the Grand Egyptian Museum and supporting other projects, including the Greater Cairo Metro and the Burullus Power Plant.
As of August 2022, Orascom had signed more than $2.4 billion in project awards for the calendar year. It added $1.8 billion of new awards in Q2, representing a 55 percent year-over-year increase. While 70 percent of those projects are in Egypt, the company is active throughout MENA and the US.
3. Sobha Contracting
Sobha Contracting is a comprehensive contractor that provides a range of building services for corporate clients such as Dell, Bayer Material Science, Infosys, and Huawei Technologies. The company has more than 275 projects in its portfolio covering more than 42 million square meters. Most of its projects are in India, including the Institute of Public Enterprise Hyderabad, Infosys Multiplex Mysuru, and Taj Vivanta.
One of Sobha’s most notable projects in 2022 is Hartland Waves, a 35-story residential tower in the Dubai district of Mohammed Bin Rashid Al Maktoum City. The project is also a finalist for CBN’s Innovative Project of the Year and Residential Project of the Year.
4. China State Construction Engineering Corporation
The China State Construction Engineering Corporation (CSCEC) is the world’s largest construction company by revenue and maintains a major presence in the Middle East. Founded in 1957, it launched its first overseas office in Kuwait during the 1970s and has since completed regional projects like the Burj Qatar, the New Hindiya Dam in Iraq, and Trump International Golf Club in Dubai.
CSCEC is also building the central business district (CBD) in the New Administrative Capital (NAC) of Egypt. The first phase of the project spans 505,000 square meters and includes several office buildings, hotels, and apartments, in addition to the 385.8-meter-high Iconic Tower. CSCEC also built and delivered the Cairo International Conference Center in Egypt.
“This is an architectural miracle created by China and Egypt together,” the CSCEC said of the NAC in its 2020-21 sustainability report. “The CBD project will become not only the new landmark of Egypt but also a symbol of the country’s modernization.”
CSCEC also made the CBN shortlist for MEP Contractor of the Year, HSE Initiative of the Year, Hospitality Project of the Year, and Infrastructure Project of the Year.