{"id":654687,"date":"2024-11-06T00:00:00","date_gmt":"2024-11-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/algammal-for-contracting-to-set-up-three-industrial-complexes-in-saudi-arabia-libya-and-iraq\/"},"modified":"2024-11-06T00:00:00","modified_gmt":"2024-11-06T00:00:00","slug":"algammal-for-contracting-to-set-up-three-industrial-complexes-in-saudi-arabia-libya-and-iraq","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/algammal-for-contracting-to-set-up-three-industrial-complexes-in-saudi-arabia-libya-and-iraq\/","title":{"rendered":"Algammal for Contracting to set up three industrial complexes in Saudi Arabia, Libya, and Iraq"},"content":{"rendered":"

Algammal is set to build three industrial complexes in KSA, Libya, and Iraq:<\/strong> Home-grown contracting firm Algammal for Contracting<\/a> is gearing up to establish three industrial complexes in Saudi Arabia, Libya, and Iraq, the group\u2019s vice president Mohamed Farouk Hafeez told EnterpriseAM. These complexes will focus on underground infrastructure pipes essential for water, electricity, gas, and internet supplies in industrial cities, smart cities, and data centers. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

About the group:<\/strong> Founded in 2003, Algammal initially started its journey with subcontracting for electrical infrastructure projects. Over time, the group expanded into general contracting. By 2008, the company entered the pipeline and electrical networks sectors as a certified subcontractor for major contractors, evolving into a prominent general contractor for infrastructure, electrical networks, industrial projects, commercial buildings, and housing projects. The group currently has a branch in Libya and opened its latest branch in Saudi Arabia eight months ago, as it continues to push forward with its international expansion plans.<\/p>\n

A regional footprint.<\/strong> The company has established alliances with pre-qualified major contractors in several Arab countries, including Libya, the UAE, Oman, Saudi Arabia, and Iraq, according to Farouk.<\/p>\n

Industrial expansion:<\/strong> Expanding in the contracting sector paved the way for the group to step foot into the industrial sector, launching subsidiaries like Ajyad for General Contracting and Metal Works, Algammal Transportation and Services, and Hafar Al Batin Concrete. The group provides international services through Egyptian Global Industrial and Contracting Corporation (EGICCO<\/a>).<\/p>\n

What we know about the regional projects:<\/strong> The group recently obtained a license to build a complex in Saudi Arabia with an annual production capacity of 36-40k tons of various products and investments exceeding SAR 200 mn (c. USD 53 mn). It is also awaiting a license for another complex in Libya, with a plan to open a contracting arm there to meet local project demands. Meanwhile, early-stage plans are in place for launching a contracting company and industrial complex in Iraq, according to Farouk.<\/p>\n

Navigating currency challenges:<\/strong> To mitigate the impact of exchange rate fluctuations, Algammal is working to increase the local component ratio in its operations to 80-90%, and only import specialized cables. FX revenue from the group\u2019s operations in foreign markets supports the group\u2019s financial standing, Farouk said, adding that the group has not been affected by import restrictions<\/a> as it has sufficient stock to complete ongoing projects.<\/p>\n

The construction and infrastructure sector is undergoing a major transformation<\/strong>, with caps on government investments<\/a> opening the door for private sector players. This shift allows banks to finance guarantees for larger projects in Egypt and abroad, Farouk told us, adding that the government continues to implement national projects, offering diverse opportunities for private sector contractors.<\/p>\n

Major projects in progress:<\/strong> Algammal secured three construction packages for the Egypt-Saudi Arabia electrical interconnection<\/a> project. The project \u2014 carried out by Italian cable manufacturer Prysmian<\/a> \u2014 involves laying eight 500kV DC cables across the Gulf of Aqaba and preparing and installing ground cables.<\/p>\n

The project\u2019s size:<\/strong> Egypt and Saudi produce a combined 160 GW of electricity every year and the interconnection will transport the 3 GW at 500 kV along 1.3k km using overhead power lines and a subsea cable across the Red Sea, potentially supplying power to 20 mn people.<\/p>\n

The progress so far:<\/strong> The company has completed about 75% of its work on the project, including laying seven underwater cables, with the eighth underway. The groundwork is expected to be completed in less than 30 days.<\/p>\n

Remember:<\/strong> Egypt aims to kick off the trial operation<\/a> of the first phase of the USD 1.8 bn power interconnection in April 2025, ahead of the original May date<\/a>. The first phase \u2014 which will see 1.5 GW of the planned 3 GW come online \u2014 is set for completion by June 2025.<\/p>\n

Algammal is also working on several major projects, including:<\/strong><\/p>\n