State oil major dominates the energy sector and is slowly emerging as a major client in civil construction
Controlling the development of the world’s largest proven oil reserves, Saudi Aramco has dominated the oil and gas sector for decades.
The oil major is also emerging as a major force in the construction sector. It completed King Abdullah University of Science & Technology (Kaust) in 2009.
This year, it has awarded a number of large contracts for prestige projects including the SR2bn ($533m) King Abdulaziz Centre for Knowledge & Culture in the country’s Eastern Province and the residential buildings for the King Abdullah Petroleum Studies Research Centre (Kapsarc) in Riyadh.
Aramco’s increasing role in the kingdom’s construction market looks set to continue with a number of large projects currently being tendered, including the commercial facilities and library at Kapsarc.
Aramco has also recently received prequalification documents for the contract to build a 60,000 seat stadium and four other construction packages at its $10bn King Abdullah Sports City development near Jeddah.
The increasing role of the oil company in the kingdom’s construction sector will please large international contractors. The company is well regarded as a fair client and a good paymaster, and with the rest of the Gulf still reeling from the property crash, Saudi Aramco will continue to be a key client for the region’s construction companies.
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