Arabian Bemco: MEED Assessment

26 November 2009

The company is faces increased competition from Asian contractors, but by focusing on client relations and key alliances it should hold its ground

Arabian Bemco in numbers

  • $2bn - Current turnover
  • $5bn - Annual turnover targeted in the next three to five years
  • $53m - Paid-up capital

Source: Arabian Bemco

Since its inception in 1965, Arabian Bemco has built up a strong portfolio of projects, thanks in large part to Saudi legislation requiring international firms operating in the country to have a local partner.

The experience the company has gained from working with international companies has enabled it to extend its activities beyond the kingdom’s borders to other markets in the GCC and the wider Middle East.

The scale and complexity of the projects has increased over time and today the company is a well established EPC contractor in the region, capable of undertaking fast-track contracts.

It has focused on sectors such as power, water and industry, which have been the key areas of investment in the region over the past decade and continue to attract infrastructure spending in the Gulf.

The region’s well-documented additional requirements for power and water production capacity over the next 20 years will provide a constant supply of business opportunities for Arabian Bemco and its affiliate companies. District cooling is also predicted to be a big growth sector in the coming decade, particularly in Saudi Arabia, which has the largest population in the region.

The company is subject to increasing competition in the region from Asian contractors, particularly Chinese firms, which were able to gain a foothold during the peak of the construction boom, when EPC contractors were in short supply in the Middle East.

But a renewed focus on client relations and strategic alliances should enable it to hold its ground.

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