Structure

Almabani General Contractors was established in Jeddah in 1972 by the late Sheikh Kamal Adham, who was an adviser to two Saudi kings and a leading local businessman.

The firm was set up with an initial market capitalisation of SR500,000 ($133,000) and, in the 38 years since, Almabani has grown to become one of Saudi Arabia’s leading contracting companies. During this time, the company’s capital has been increased twice to the current level of SR30m.

Capitalising on the oil boom, which began soon after its launch, Almabani found itself well-placed to secure high-profile construction contracts. These included high-rise towers, road projects, as well as major airports, runways and associated facilities.

Having gained experience in the local projects market, the firm began its regional expansion by securing a number of upgrade projects for Lebanon’s road network in 1982.

In 1991, it moved into Oman, where it oversaw the civil works for the delineation of the border between Saudi Arabia and Oman, under a contract worth $28m. The firm also undertook civil works for the border delineation between Oman and Yemen in 1993-94, in a deal worth $15m. Almabani returned to work in Lebanon in 1993-94 to participate in the reconstruction programme in the country following its 15-year civil war, undertaking a number of infrastructure projects.

The company recorded a turnover of around $500m in 2009. The firm has a management board of six people, headed by current owners Sara Adham and Nehme Tohme, who is also chairman. Joseph Daher is executive vice-president of operations and oversees all the construction work undertaken by the firm. Almabani has some 8,500 employees and 400 staff, including administrators and engineers.

Operations

Almabani specialises in infrastructure and aviation construction projects, and its project portfolio is split evenly between the two.

Infrastructure projects the firm has recently undertaken in Saudi Arabia include sewerage networks in Jeddah, civil works for power projects and desalination plants. Currently, the company’s geographic focus is on its home market of Saudi Arabia, where it is closely associated with a raft of  government infrastructure projects.

The firm’s largest contract under way is the $410m road tunnel project under Riyadh airbase in the centre of the capital for Arriyadh Development Authority, a state-backed development agency. Beating bids from local firms, Saudi Binladin Group, Saudi Oger and Shibh al-Jazira, and Beijing-based China Harbour Engineering Company, Almabani is building three tunnels with a total length of 3.3km. The project is aimed at alleviating traffic congestion in Riyadh. Currently, vehicles have to take a detour around the airbase, which covers an area of 5 square kilometres.

The scope of the contract, which was awarded in August 2009, also includes building bridges and roads. The project completion date is set for July 2012.

Almabani is responsible for 80 per cent of all aviation-related contracting work in Saudi Arabia, according to Dahar and enjoys a close working relationship with the Jeddah-headquartered General Authority of Civil Aviation (Gaca). The firm is currently working on a contract to repair and upgrade seven airport runways around the kingdom at Najran, Al-Taif, Burayadah, Hail, Al-Wajeh, Ar Ar and Qourayat.

Ambitions

Although it has talked of opportunities in Abu Dhabi, Qatar and even Iraq, the global economic slowdown has stalled the firm’s ambition to expand into new markets. Instead Almabani is focusing on winning infrastructure contracts that are being pushed through by the Saudi government to stimulate the kingdom’s economy. The company is eyeing two tenders dealing with the expansion and upgrade of King Abdulaziz airport in Jeddah.

With a combined value of $5bn, the contracts would substantially boost the company’s revenues. The work will involve the construction of a new terminal and infrastructure works including design and build runways, tunnels and a light railway system. The closing date for the tender has been extended to 29 March.

Almabani is also hoping to work on a $300m sewerage project outside Jeddah. The scheme involves the construction of 15km of 3,000 millimetre sewer tunnels, 30 metres below ground. The firm also intends to bid for a $260m contract covering the extension of King Abdullah Road East in Riyadh.

Almabani is targeting an average annual revenue growth of 25-30 per cent.