Sustainability is at the heart of the Al-Khodari business model and the firm boasts a strong balance sheet. The contractor has been able to maintain a high profit margin at about 20 per cent by keeping its asset base lean, auctioning off surplus machinery twice a year.

Its latest auction of equipment in December raised $14.8m, which exceeded the book value of these assets. Al-Khodari also looks for projects that can be served through its wide range of subsidiaries.

This level of profitability is impressive in the contracting sector, where many firms chase high turnover work at the expense of their margins, leaving them vulnerable to fluctuations in the fortunes of clients.

Retail investors that were nervous of investing in the contracting business may be reassured if Al-Khodari is successful in its ambition to secure long-term public-private partnership contacts. The structure of the company with its cross-sector operations, maintenance experience and building materials divisions means that it is well placed to offer good value over such long-term agreements.

Since the IPO, Al-Khodari has announced a series of contract wins, which have contributed to the rising share price. Major deals include the construction contract for Saudi Arabian Mining Company  and a $23m airport deal in Umm Almelh for the Interior Ministry.

The firm’s commitment to modernisation is admirable and with its professional management team and dedication to delivering strong margins, it appears to be on the right track for a successful future.