Algammal to set up three industrial complexes in Saudi Arabia, Libya, and Iraq
Algammal is set to build three industrial complexes in KSA, Libya, and Iraq: Home-grown contracting firm Algammal for Contracting is gearing up to establish three industrial complexes in Saudi Arabia, Libya, and Iraq, the group’s 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.
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About the group: 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.
A regional footprint. 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.
Industrial expansion: 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).
What we know about the regional projects: 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.
Navigating currency challenges: 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’s operations in foreign markets supports the group’s financial standing, Farouk said, adding that the group has not been affected by import restrictions as it has sufficient stock to complete ongoing projects.
The construction and infrastructure sector is undergoing a major transformation, with caps on government investments 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.