The Middle East's top construction contracts of May 2019
The UAE's Arabtec, India's L&T, US's McDermott, and Saudi's Al Fouzan were among last month's most successful contractors
The Holy Month of Ramadan in 2019 started in the first week of May, and the month marked a busy period for the Middle East’s construction industry all the way through to Eid Al-Fitr, declared on 4 June, 2019, with contractors such as America’s McDermott, the UAE’s Arabtec, India’s Larsen & Toubro (L&T), Oman’s Galfar Engineering & Contracting, and Saudi Arabia’s Al Fouzan being among the top contract winners during the month.
Contracts were awarded for significant Middle Eastern construction projects during the month of May 2019, including the UAE’s Museum of the Future and Ruwais refining complex, Oman’s Rusail-Nizwa Road, and 4,100 homes across Saudi Arabia.
The Middle East’s top 10 construction contracts of May 2019 were:
- McDermott wins Adnoc contract for Umm Shaif project in Abu Dhabi
- L&T, Outotec consortium wins $606m Ma'aden gold factory award
- Saudi Arabia's Ministry of Housing, US's Katerra to build 4,100 homes
- Arabtec wins contracts for Dubai’s Villanova and India’s Raheja; Target bags Ellington homes
- Saudi Arabia's Sabic awards $67m contract to Germany's Bilfinger
- Orascom-led JV wins $739m EPC contract for Egypt water plant
- Emaar selects SSH for Dubai's Creek Beach District project
- Oman's Galfar wins $224m Rusail-Nizwa road construction contract
- Al Fouzan wins contract for Saudi Arabia-funded Bahrain medical hub
- Dubai's Museum of the Future to get Sherwin-Williams fire coating
Please note that this list is not a ranking.
McDermott wins Adnoc contract for Umm Shaif project in Abu Dhabi
Early-May 2019 saw American contractor McDermott picked to deliver front-end engineering design (Feed) services on design-competition basis for Phase 1 of Abu Dhabi National Oil Company’s (Adnoc) Umm Shaif Gas Cap Condensate Development project in Abu Dhabi, with the offshore contract also including the submission of an engineering, procurement, construction, and installation (EPCI) proposal for the scheme.
In a statement, the Houston, Texas-headquartered builder said its London office would implement the project’s Feed scope, with support from its offices in Dubai and Chennai, India.
L&T, Outotec consortium wins $606m Ma'aden gold factory award
On 1 May, it was announced that Gold and Base Metals Company, a subsidiary of Saudi Arabian Mining Company (Ma’aden), had awarded a $606m (SAR2.7bn) construction contract to a consortium of India’s Larsen and Toubro (L&T) and Finnish firm Outotec for a two-site Mansorah and Massarah gold mine factory.
The contract, according to a filing on Saudi bourse, Tadawul, included complete EPC, pre-commissioning, start-up assistance, and training services. Initial production is expected to start on the plants in in Q2 2022, followed by commercial production in the following quarter. The mine will produce an average of 250,000 ounces of gold a year.
Saudi Arabia's Ministry of Housing, US's Katerra to build 4,100 homes
Saudi Arabia’s Housing Development Programme – driven by the kingdom’s Ministry of Housing as part of the country’s Vision 2030 economic diversification mandate – has signed an agreement with American construction technology firm Katerra to construct 4,101 homes in the areas of Makkah, Madinah, Al Bahah, Al Jouf, and Qassim.
The deal, signed in the presence of Saudi Arabia’s Minister of Housing, HE Majid bin Abdullah Al-Hogail, will see 2,482 homes built in Makkah, and 1,043 houses built in Al Madinah Al Munawwarah. Al Bahah, Al Jouf, and Qassim will respectively receive 140, 191, and 245 homes under the terms of the agreement.
Arabtec wins contracts for Dubai’s Villanova and India’s Raheja; Target bags Ellington homes
May 2019 was a busy month for Dubai Financial Market-listed construction giant Arabtec Holding. Four days after it announced that Hamish Tyrwhitt would step down as its group chief executive officer, Arabtec Holding, on 19 May, said subsidiary Arabtec Construction had been awarded a $56.3m (AED207m) contract to build 322 villas within Dubai Properties’ Villanova project’s Amaranta phase. At the time, Arabtec’s acting group CEO, Peter Pollard, said the contract marked Arabtec Construction’s “sixth phase at the Villanova development”.
The contractor followed up this announcement four days later by confirming that India’s Raheja Developers had picked Arabtec Construction in a $60m (AED219m) contract to build its Navin Minar project in New Delhi, which comprises 15 community housing towers, each 15 floors high.
Arabtec was in the news again on 28 May when it announced that another subsidiary – Target Engineering – had won Ellington Properties’ contract for the construction of the Wilton Park Residences project in Dubai’s Al Merkadh area. Worth $52.2m (AED192m), Target’s contract includes construction; mechanical, electrical, and plumbing (MEP); landscaping; and irrigation services.
Saudi Arabia's Sabic awards $67m contract to Germany's Bilfinger
Late in May 2019, it emerged that German builder Bilfinger had won a contract worth $66.8m (SAR250.4m) by Saudi Arabian Basic Industries Corp (Sabic) UK Petrochemicals Ltd that would see the European company providing mechanical, electrical, and instrumentation engineering services, in addition to access insulation, painting, and asbestos management and removal for the Saudi Aramco-backed chemicals giant's Teesside site.
News of Bilfinger’s Sabic win followed its early-May announcement that in Q1 2019, it had been awarded three contracts by Abu Dhabi National Oil Company (Adnoc) for the installation, replacement, and modification services, which its regional unit Bilfinger Middle East would implement for Adnoc's refining unit in Ruwais.
Orascom-led JV wins $739m EPC contract for Egypt water plant
Nasdaq Dubai- and Egyptian Stock Exchange-listed engineering and construction contractor Orascom Construction announced in May 2019 that it had won a $739m EPC contract to build a water treatment plant in Egypt.
According to a stock market missive at the time, the company will work alongside Cairo-headquartered Arab Contractors under a 50:50 joint venture (JV) for the project, which will be the largest treatment plant in Egypt.
Speaking on the contract win, chief executive officer of Orascom Construction, Osama Bishai, said: “We are proud of our involvement in the largest water treatment plant in Egypt.”
Emaar selects SSH for Dubai's Creek Beach District project
Late in May 2019, construction consultancy SSH said it had been chosen to work as lead consultant at Creek Beach District, which is being jointly developed by Emaar Properties and Dubai Holding at the Dubai Creek Harbour megaproject's site.
SSH will deliver architecture, MEP, and structures and public realm coordination services for the project, which will be built in two phases covering a gross floor area of 34.4ha.
Commenting in a statement at the time, SSH said the project would be an “integral link" between the district's Calatrava-designed Dubai Creek Tower & Plaza, and Creek Island Dubai projects.
Oman's Galfar wins $224m Rusail-Nizwa road construction contract
Early in May 2019, Oman-headquartered construction company Galfar Engineering & Contracting confirmed it had been awarded a contract worth $224m (OMR86.3m) for the construction of two additional lanes as part of the Dualisation of Al Rusail-Nizwa Road project by the sultanate’s Ministry of Transport and Communications.
In a statement on Muscat Securities Market, Galfar’s CEO, Dr Hans Erlings, said the project’s completion period was 912 days, with another 60 days to be required for mobilisation work.
Al Fouzan wins contract for Saudi Arabia-funded Bahrain medical hub
Saudi Arabia-based contractor Al Fouzan Trading and General Construction Company – the builder behind Saudi Arabia's 1km-tall Jeddah Tower, which was previously known as Kingdom Tower – was confirmed in mid-May 2019 to have won a contract from Bahrain’s Arabian Gulf University (AGU) to construct King Abdullah Bin Abdulaziz Academic Medical Centre, a project within the Saudi-funded King Abdullah Bin Abdulaziz Medical City.
The university had announced in September 2018 that it was seeking bids from contractors for the construction of the medical hub. The medical city is being funded through a $267m (SAR1bn) grant from the late Saudi King Abdullah bin Abdulaziz Al Saud.
Dubai's Museum of the Future to get Sherwin-Williams fire coating
Cleveland, Ohio-headquartered and New York Stock Exchange-listed Fortune 500 paint and coating manufacturing firm Sherwin-Williams announced in May 2019 that it had been contracted to deliver fire protection technology for Dubai’s Museum of the Future, located on the city's busy Sheikh Zayed Road close to the Emirates Towers.
According to a company statement, Sherwin-Williams will use Phoenix 370-120H water-based intumescent coating for the museum’s structure, which has a fire rating of 120 minutes.