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P Mohamed Ali

P Mohamed Ali

Managing Director, Galfar Engineering
Ahmad Suleiman Abdulaziz Al Rajhi
Khaldoun Tabari

A surprise selection at number seven in this year’s Power 100 is Oman-based Galfar Engineering’s P Mohamed Ali, which was made after careful consideration.

We liked his determination to go into Saudi and Iraq but more interestingly his commitment to using local sub-contractors.

This is an area that will become increasingly important to big-spending governments and we believe Galfar sets a hugely influential example for our industry.

Speaking in February at the company’s annual vendors’ meet Dr Ali said: “Currently, we work out of Oman, India and Kuwait. We have plans to expand to countries such as Saudi Arabia and Iraq in the future. As we grow, our main aim will always be to focus on the critical activity of the business and to subcontract the rest to local contractors.”

Galfar is a multi-disciplined engineering, construction and contracting firm whose work includes oil & gas expertise as well as roads, infrastructure and even hospital builds.

In Salalah it is building the $38 million cardiac unit as well as the Batinah Expressway, where Galfar has a $361 million eight-lane section of 45km including interchanges, overpasses, a bridge and 223 box culverts.

Last year the Sultan of Oman said a minimum of 10% of any government contract value must be sub-contracted. Dr Ali said: “We at Galfar have always sub-contracted our activities.

“Currently, 15% of our business is subcontracted. Presently, we procure nearly OMR200m ($519.5m) of services from the local market, hiring equipment worth OMR20,000 ($52,000) every day.”

Last month it announced that it has won two new contracts worth $49.6m. The larger, worth $39m, is a two-year deal covering pipeline and fabrication works at the Safah & Wadi Latham oilfield. The contract was awarded by the Occidental Petroleum Corporation.

The second contract is a $10.6m project to build a series of new buildings for Oman Medical College at its Sohar campus.

The wins come on the back of newly-filed accounts for the first quarter of 2013 which show that the company increased year-on-year net profit by 55% to $6.9m as contract income grew by 29% to $192m.

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Stephen Flint
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Patrick McKinney
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Construction Week - Issue 765
Jun 29, 2020