The Middle East's top construction contracts of August 2019
EXCLUSIVE: Contractors like McDermott, L&T, and Arabtec were successful with clients like Saudi Aramco and Emaar Misr in Aug
While the summer months are typically associated with downtime in the Middle East’s construction industry, August 2019 continued to buck the trend, with major contractors such as Oman’s Galfar Engineering & Contracting, China’s CNTC and CNPC, America’s McDermott, India’s Larsen & Toubro, and the UAE’s Arabtec Holding and Bond Interiors being among the busy entities that won contracts during the month – from clients such as Brazil’s Vale, Imkan in Abu Dhabi, Expo 2020 Dubai, and Saudi Aramco, the world’s largest oil company – which ended with the announcement of the Islamic New Year (Hijri 1441).
Among the projects for which contracts were awarded in August 2019 were the Ras Markaz Crude Oil Park in Oman, Saudi Aramco’s Hasbah and Karan oil fields, Egypt’s Uptown Cairo, and Saudi Arabia’s Madinah Gate, which is being developed by Knowledge Economic City.
The Middle East’s top construction contracts of August 2019 were:
- Galfar wins contracts from China’s CPECC, Brazil miner Vale
- Imkan appoints China’s CNTC for Pixel in Abu Dhabi
- China National Chemical Engineering Group (CNCEC) wins $490m Mag City contract
- America’s McDermott wins work on Saudi Aramco’s Hasbah, Karan
- Strabag, Andritz Hydro, Ozkar win Dewa deal for $391m Hatta station
- Bond Interiors wins another fit-out contract for Jumeirah Beach Hotel
- UAE’s Arabtec wins Emaar Misr’s Uptown Cairo contracts
- Saudi Arabia’s KEC awards $4m Madinah Gate design contract
- Emas, L&T win EPCI contract for Saudi Aramco’s Marjan
- Expo 2020 Dubai awards modular contract to Saudi Arabia-owned Red Sea Housing
Please note that this list is not a ranking.
1. Galfar wins contracts from China’s CPECC, Brazil miner Vale
Oman-headquartered construction builder Galfar Engineering & Contracting was awarded a subcontract worth $16m (OMR6.1m) by China Petroleum Engineering and Construction Corp (CPECC) for Ras Markaz Crude Oil Park in August 2019.
In a statement on Muscat Securities Market, Galfar’s chief executive officer, Hans Erlings, said the subcontract included pre-site preparation, grading, levelling, earthworks, and blasting activities.
Days later, Galfar said it had been awarded a $2.4m (OMR918,000) contract to work on a project by Brazilian miner Vale SA.
Galfar said in a bourse missive that it had been awarded a contract to deliver civil works and services related to the 4th Ball Mill – Wet Grinding project by Vale SA.
2. Imkan appoints China’s CNTC for Pixel in Abu Dhabi
Abu Dhabi-based developer Imkan appointed Chinese construction company CNTC as main contractor for its seven-tower Pixel development last month, with work due to begin immediately and complete by Q4 2021.
Located within Makers District on Reem Island, Pixel is an 18ha waterfront community comprising 525 residential units.
The contract agreement was signed by Abu Dhabi Capital Group's chief executive officer, HE Abubaker Seddiq Al Khoori; board member of Royal Strategic Partners, Dr Hamad Abdulqadir Al-Ali; Imkan CEO, Walid El-Hindi; and CNTC's vice president, Xinrong Xu.
3. China National Chemical Engineering Group (CNCEC) wins $490m Mag City contract
UAE real estate developer Mag Property Development awarded a contract to CNCEC – which according to its website is directly managed by China’s State-owned Assets Supervision and Administration Commission (Sasac) – for the construction of its Mag City project, which marks Phase 1 of its Mag Eye development in Dubai’s Mohammed Bin Rashid City (MBR City) in Meydan District 7.
Mag City revealed later that week that its CNCEC contract was valued at $490.1m (AED1.8bn).
During a contract signing ceremony held at CNCEC’s headquarters in Beijing, which was attended by chairman of CNCEC, Dai Hegen, and chairman and founder of Mag Group Holding and Mag LD, Talal Al Gaddah, a letter of intent was also signed between the two companies to construct the remaining phases of Mag City for $381m (AED1.4bn).
4. America’s McDermott wins work on Saudi Aramco’s Hasbah, Karan
American contracting and engineering heavyweight McDermott was, in August 2019, awarded engineering, procurement, construction, and installation (EPCI) contracts from Saudi Arabian oil company Saudi Aramco for its Hasbah and Karan fields.
As part of the ‘large’ contract — which is valued between $50-250m (SAR187.5-937.5m) — McDermott will provide EPCI services for a production deck module (PDM) in the Hasbah gas field and carry out hook-up and modification works in the Karan field, located offshore in the Arabian Gulf.
Engineering work for the project will be carried out in Saudi Arabia, and fabrication is planned from McDermott’s Jebel Ali facility in the UAE.
5. Strabag, Andritz Hydro, Ozkar win Dewa deal for $391m Hatta station
Dubai Electricity and Water Authority (Dewa) awarded a consortium of Strabag Dubai, Strabag AG, Andritz Hydro, and Ozkar a construction contract for the $391.2m (AED1.4bn) pumped-storage hydroelectric power station – for which EDF is consultant – at Hatta.
The project is part of the Comprehensive Development Plan for Hatta unveiled on 7 November, 2016 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to contribute to diversifying the energy mix in addition to developing Hatta to meet its social, economic, and environmental development needs.
The project has an expected life span of 80 years and is scheduled to be commissioned by February 2024.
6. Bond Interiors wins another fit-out contract for Jumeirah Beach Hotel
Bond Interiors was awarded a contract to deliver additional fit-out works at Jumeirah Beach Hotel, a five-star property that it renovated ahead of its relaunch in 2018, marking a repeat win for the Dubai-based company.
Jumeirah Beach Hotel is operated by Jumeirah, which is owned by Dubai Holding.
According to an August 2019 report by Construction Week’s sister title Commercial Interior Design, Bond Interiors will deliver a three-storey fitness club, the Fika restaurant, and a spa within Jumeirah Beach Hotel.
7. UAE’s Arabtec wins Emaar Misr’s Uptown Cairo contracts
Dubai Financial Market-listed (DFM) Arabtec Holding announced details of its $111.4m (AED409.4m) Emaar Misr contracts for the Uptown Cairo development in Egypt, with the builder stating that Arabtec Construction would develop Celesta Hills and The Fourteen Golf Residences as part of its deals.
Confirmed in August 2019, Arabtec said its $81m (AED298m) Celesta Hills contract included construction work for Phases 2 and 3 of the project, with work expected to complete in 38 months.
For The Fourteen Golf Residences Phase 1, Arabtec will develop 270 residential units within a period of 27 months under a contract worth $29.9m (AED110m).
8. Saudi Arabia’s KEC awards $4m Madinah Gate design contract
In August, Tadawul-listed Knowledge Economic City (KEC) awarded a $3.6m (SAR13.6m) contract to Canada-based project planning firm IBI Group for the Madinah Gate masterplanned project, with the company set to carry out engineering and detailed design work for the project.
In a stock market filing, KEC said that the contract would be completed in two phases and implemented during a period of 42 weeks.
9. Emas, L&T win EPCI contract for Saudi Aramco’s Marjan
Indian contracting heavyweight Larsen & Toubro’s (L&T) engineering and construction arm, L&T Hydrocarbon Engineering (LTHE), won an engineering, procurement, construction, and installation (EPCI) contract alongside Singapore-headquartered Emas AMC in August 2019 for Saudi Aramco’s Marjan Increment Development Project.
L&T said its scope of works included four tie-in platforms, one tie platform module, and nine production deck modules (wellhead decks), in addition to the installation of 217km-long subsea pipelines across 25 segments, and 145km of subsea cables across 16 segments.
10. Expo 2020 Dubai awards modular contract to Saudi Arabia-owned Red Sea Housing
Red Sea Housing Services Company Dubai, a UAE-based subsidiary of Saudi Arabian Stock Market-listed (Tadawul) Red Sea International Company, signed a $15m (SAR56m) contract with Expo 2020 Dubai to supply modular structures for the World Expo in August 2019.
In a bourse missive, the parent company said that the contract would last for duration of 20 months, starting from August 2019 to April 2021.