MEED: How has Almabani been affected by the downturn in the Gulf over the past 12-18 months?

Joseph Daher:I would say that 99 per cent of all Almabani contracts are with the government. It is true that the private sector was affected to some degree by the slowdown but with the government it was quite the opposite. They injected a lot of capital into the economy to ensure large projects continued.

Some contracts were extended by three years and so we have a healthy backlog. Since we work purely on government projects, we did not feel the heat. We have not invested time or money in Dubai, where the crisis has been felt, so we have been fully-shielded.

Are you concerned there will be a surge of Dubai-based contractors looking to get into Saudi Arabia andgrab a piece of the market?

Of course, we expect more competition in Saudi Arabia, but it is not an easy place to work. Those not used to the market cannot just turn up and secure work.

It requires time to acquaint yourself with the market conditions, the regulations, visas and affiliated issues. So, while I expect more competition, it doesn’t frighten those of us who have been here and working in the market for more than 30 years.

I know that firms such as [Lebanon’s] Arabian Construction Company and [the UAE’s] Arabtec have come over here but they have established joint-ventures, which is a good move. Without a joint venture, it would be difficult to get into this market. Imagine if we went to Dubai in the middle of a boom cycle, it would be hard for us without a local partnership.

Is Almabani seeking to enter joint ventures with such firms then?

Some firms have approached us and we have spoken to some, but, no, there is nothing to announce yet. We have not had a platform whereby we felt the partnership would bring added value to our company or the market.

Would you look into other GCC markets again?

We have obviously looked at places such as Abu Dhabi and also Iraq. For the latter, if there was political stability and security, then obviously it would be a promising market. As the [Iraq] market stands, we simply would not take the risk with our staff to enter the market, it isn’t safe enough. And as it is, the Saudi market is very strong and as long as the boom is going on, there really is no need to look outside the market.

So Almabani is not seeking to expand its presence outside the kingdom?

Expansion is not envisaged for the time being. Saudi Arabia is a prosperous country and has shrugged off the consequences of the economic crisis. As a result, it is even stronger than ever and I see little wisdom in leaving now. The market is not saturated. It needs more qualified contractors and there is still plenty of room for expansion.

Which projects are Almabani hoping to secure in the coming months?

Probably, the most exciting for us are the two tenders for King Abdulaziz airport in Jeddah. They cover everything from the construction of a new terminal to the ancillary projects. Combined, the contracts are valued at $5-6bn and would make a huge impact on the firm winning it. There are a number of other firms bidding: Saudi Binladin Group, Saudi Oger in joint venture with [South Africa’s] Murray & Roberts, Al-Rajhi Group with [Turkey’s] TAV, J&P [of the UK], CCC [Greece’s Consolidated Contractors Group] and the local El-Seif Engineering Contracting. But we are confident we can do this.