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The Middle East's top construction contracts of October 2019

US's McDermott, Larsen & Toubro, UK's Foster + Partners, and Oman’s Galfar Engineering & Contracting won major contracts

October 2019 was a busy month for contractors in the Middle East [representational image]
Pixabay
October 2019 was a busy month for contractors in the Middle East [representational image]

With 2020 just a month away, the Middle East’s construction sector has been enjoying a stellar year in terms of new project launches, contract awards, and project completions.

From The Red Sea Project to Duqm Refinery, Etihad Rail to Saudi Aramco, and the kingdom’s Ministry of Housing, construction activities were at their peak in the month of October.

Contractors including US’s Mcdermott, India’s Larsen & Toubro (L&T), UK’s Foster + Partners, and Oman’s Galfar Engineering and Contracting remained top gainers, winning new contract awards worth hundreds and millions of dollars.

The Middle East’s top construction contracts of October 2019 were:

1. Foster + Partners wins design contract for TRSDC’s Red Sea Airport
2. Sinohydro Corporation, CMCE bag 4,867 homes contract from Saudi ministry of housing
3. Galfar wins $18.7m worth contracts for Duqm Refinery from Italy’s Saipem
4. Arabtec's Target wins $75m Saudi Aramco contract for Qatif GOSP-1
5. ISG wins fit-out contract for UOWD's new campus in Dubai Knowledge Park
6. Hitachi Rail STS bags $435.6m Etihad Rail contract
7. India’s L&T Construction wins contract for 220kV UAE substation
8. GTCC, Ghantoot Gulf win $267m Dewa contract for Al-Shera'a headquarters
9. South Energy wins retrofit contract for Dubai South’s street lighting
10. US’s McDermott wins Amiral Complex contract from Saudi Aramco, Total

Please note that this list is not a ranking.

1. Foster + Partners wins design contract for TRSDC’s Red Sea Airport

The Red Sea Development Company (TRSDC), developer of Saudi Arabia's The Red Sea Project, has awarded UK-based architectural and design firm Fosters + Partners the design contract for the destination’s international airport, which is expected to serve 1m annual tourists and visitors, at a peak of 900 passengers per hour, by 2030.

READ MORE: TRSDC awards Red Sea airport design contract to Fosters + Partners

The contract, which was awarded after competitive tendering, will see the airport have its architecture informed by the natural beauty of the surrounding landscape, while incorporating an eco-friendly and sustainable design.

The airport is due for completing in 2020, the developer said in a statement at that time.

2. Sinohydro Corporation, CMCE bag 4,867 homes contract from Saudi ministry of housing

Saudi Arabia’s Ministry of Housing has signed two agreements with Sinohydro Corporation and China Machinery Engineering Corporation (CMEC) Saudi Contracting Company to build 4,867 housing units in 15 cities and governorates across six regions in the kingdom, with the contracts being awarded as part of the ministry’s Vision 2030 push to provide housing units to needy families.

READ MORE: Sinohydro, CMEC picked to build 4,867 homes for Saudi government

According to the report, Sinohydro will construct 3,753 housing units in total, including 1,732 in Aseer; 1,399 in Jazan; 444 in Al-Baha; and 178 in Makkah.

CMEC Saudi Contracting Company will be responsible for the construction of 1,114 units, with 814 units in Al-Jouf and 300 in the Northern Border area.

3. Galfar wins $18.7m worth contracts for Duqm Refinery

Muscat Securities Market-listed Galfar Engineering and Contracting — which was recently awarded a subcontract worth $59.9m (OMR23m) by Italy’s Saipem to work on Oman’s $7bn (OMR2.69bn) Duqm Refinery — has won a $16.4m (OMR6.3m) civil works contract from an unnamed client.

READ MORE: Oman engineering company Galfar wins $16m civil works contract

In another contract award, Galfar also won a $2.7m (OMR1m) subcontract from Italian oil and gas contractor Saipem to deliver structural steel erection work for pet coke and sulphur storage shelters at Duqm Refinery, a $7bn (OMR2.69bn) integrated complex that is being developed through a partnership between Oman Oil Co and Kuwait Petroleum International in Special Economic Zone in Duqm (Sezad).

READ MORE: Saipem picks Oman's Galfar for $3m Duqm Refinery subcontract

4. Arabtec's Target wins $75m Saudi Aramco contract for Qatif gas oil separation plant-1

The UAE’s Dubai Financial Market-listed (DFM) contractor Arabtec Holding said in a stock market missive that its subsidiary, Target Engineering Construction Co, had been awarded a $74.6m (SAR280m; AED274.2m) engineering, procurement, and construction (EPC) contract by Saudi Aramco to upgrade a produced water disposal facility at Qatif’s gas oil separation plant (GOSP-1) in Saudi Arabia’s Eastern Province.

READ MORE: Arabtec's Target wins $75m Saudi Aramco contract for Qatif GOSP-1

Target’s scope of works includes the installation of a water oil separation vessel; water disposal pumps; water injection pumps; low-pressure de-gassing tank water draw-off pumps; and a pipeline to transfer oily water from Ju’aymah Terminal to Qatif’s GOSP-1.

5. ISG wins fit-out contract for UOWD's new campus in Dubai Knowledge Park

UK-headquartered contractor ISG has won a fit-out contract for the new campus of University of Wollongong in Dubai (UOWD), with the six-floor structure in Dubai Knowledge Park due to open in September 2020 ahead of Expo 2020 Dubai.

The building's interiors have been designed by Woods Bagot and project management services are being delivered out by Abu Dhabi-based consultancy Alexander Mac.

READ MORE: ISG wins contract for UOWD's new campus in Dubai Knowledge Park

ISG’s scope of work for the 1.9ha campus — on which ground was broken in February 2017 — includes design validation, completion of the base build, and fit-out of the entire structure from a shell and core finish.

Additionally, the company will also deliver infrastructure services for complex’s IT systems and data rooms, and manage service providers and supply chain partners for the project.

6. Hitachi Rail STS bags $435.6m Etihad Rail contract

Etihad Rail – the developer and operator behind the eponymous 1,200km federal railway network connecting Abu Dhabi and Dubai, as well as Khalifa Port, Khalifa Industrial City, and Jebel Ali Port – has awarded a $435.6m (AED1.6bn) systems and integration contract for Stage 2 works to Italy-based transport systems company Hitachi Rail STS, which is owned by Japan’s Hitachi.

READ MORE: Etihad Rail awards $436m contract to Italy's Hitachi Rail STS

The Hitachi Rail STS power system will become the longest distribution network in the country, running for a length of 800km and handling 11 kV of power.

Etihad Rail’s locomotives will be equipped with a European signalling system (ETCS Level 2), which will ensure that trains can move between GCC countries without stopping at the borders.

7. India’s L&T Construction wins contract for 220kV UAE substation

India's Bombay Stock Exchange-listed contractor Larsen & Toubro (L&T) has secured a design, supply, and construction order for a UAE substation, with L&T Construction’s power transmission and distribution business to work on the 220kv government project.

The UAE-based project is among a series of orders gained for the contractor across the region.

READ MORE: India’s L&T Construction wins contract for 220kV UAE substation

8. GTCC, Ghantoot Gulf win $267m Dewa contract for Al-Shera'a headquarters

A consortium of Ghantoot Transport & General Contracting (GTCC) and Ghantoot Gulf Contracting has been awarded a $267m (AED982m) contract to develop the next phase of Dubai Electricity and Water Authority’s (Dewa) Al-Shera’a headquarters.

Located in Jadaf, the contract brings the total cost of developing the 200ha building to $272m (AED1bn), with construction expected to complete in 30 months.

READ MORE: GTCC, Ghantoot Gulf win $267m Dewa contract for Al-Shera'a HQ

The headquarters will comprise 15 floors, a basement, and four floors of car parking, which can facilitate more than 5,000 people.

The building will have 20,000m2 of photovoltaic solar panels rated to 4,000kW, and 1,000m2 of building integrated photovoltaics, with the structure to generate 6,500MW/h of renewable energy each year.

9. South Energy wins retrofit contract for Dubai South’s street lighting

South Energy, the energy systems arm of Dubai South, has won a contract to retrofit street lighting within the 145km2 Dubai South development –  home to Al Maktoum International Airport and the Expo 2020 Dubai site – by replacing 4,550 streetlights with energy-efficient LED units.

READ MORE: South Energy wins retrofit contract for Dubai South’s street lighting

As part of the contract, South Energy will act as an energy services company (Esco) for a period of 10 years, overseeing the financing, development, implementation, operation, and maintenance of the project.

10. McDermott wins Amiral Complex contract from Saudi Aramco, Total

New York Stock Exchange-listed (NYSE) American contracting giant, McDermott International has won a contract to provide licenses, basic engineering package, extended basic engineering, training, technical services, and supply of proprietary equipment for Amrial Complex in Saudi Arabia from the world’s largest oil producer, Saudi Aramco and Total Raffinage Chimie (Total).

In a statement, the contractor said that once complete the complex could become one of the largest mixed feed crackers in the world.

READ MORE: McDermott wins Amiral Complex contract from Saudi Aramco, Total

As part of the large contract — which the company values between $50m (SAR187.5m) and $250m (SAR937.7m) — McDermott's Lummus Technology will provide licensing and engineering services for its olefins technology, low pressure recovery that covers refinery off-gas recovery and treating, and pygas hydrotreating.

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