Boosted by subsidiaries and Saudi rollout
Alec Engineering and Contracting ( Alec), one of the largest construction firms in the Middle East region, achieved 29% year-on-year (YoY) revenue growth in 2024, driven by strong performance from its subsidiaries and the company’s expansion into Saudi Arabia from neighbouring UAE.
This solid growth also coincided with a significant increase in workforce size, which surged by 46%, bringing Alec’s total workforce to 40,000.
The expansion of Alec’s operations, particularly in Saudi Arabia, is a key focus of the company’s strategy. As part of its strategic vision, Alec has diversified its business lines beyond traditional construction, establishing itself as a leader in fit-out, modular construction, and data centres. These new lines of business have contributed significantly to the company’s overall growth.
Barry Lewis, Alec CEO, stated: “Our construction-adjacent business lines have become market leaders in their own right, and they now form a significant part of our overall offering.”
He also highlighted the expansion of AJI Rentals, Alec’s heavy equipment rental arm, which established a presence in Saudi Arabia in 2024. The company also opened a new facility in Dubai, further strengthening its presence in the UAE.
Alec’s strategic acquisition of Target Engineering has also contributed to the company’s success. In 2024, Target won several large-scale engineering, procurement, and construction projects, including major contracts with MMBD, Borouge, and Dalma Gas Development. These projects have boosted Alec’s position as a key player in the regional construction sector.
The company’s expansion in Saudi Arabia has been particularly noteworthy, with Alec achieving a 29% revenue increase in Saudi Arabia and the UAE.
Lewis noted: “We have built a robust ecosystem of talent, production facilities, supply chains, and logistics in the UAE, and replicating this success in Saudi Arabia was the natural next step. In just two years, we have become recognised as one of the most trusted construction firms in the Kingdom, driven by a portfolio of complex, high-value developments.”
Among Alec’s landmark projects in Saudi Arabia are the Qiddiya Waterpark and Qiddiya Speedpark, which are poised to significantly enhance the Arabian Gulf country’s entertainment and tourism sectors.
Looking towards the future, Alec plans to continue pushing the boundaries of the construction industry by adopting new technologies. One key area of focus is the modularisation of construction and mechanical, electrical, and plumbing (MEP) works, for which the company has set up large-scale production facilities in the UAE.
Additionally, Alec’s recently announced robotics strategy aims to automate 5% of its construction activities through advanced robotic solutions by 2030.
Through its subsidiary, Advanced Engineered Solutions (AES), which specialises in turnkey building envelope solutions, Alec targets large-scale cultural, hospitality, and leisure developments. The company is eager to collaborate with visionary architects who push conventional design boundaries.
John Deeb, Alec COO and CFO, stated: “We will continue to challenge perceptions of our industry through advancements in technology, sustainability, and operational efficiency.”
As Alec enters 2025, it will focus on consolidating its gains, streamlining operations, and further enhancing outcomes for its clients and stakeholders as several large contracts enter significant phases of activity.
Hero image: Alec’s expansion into Saudi Arabia from neighbouring UAE, is a key focus of the company’s strategy. Credit: Lara Jameson
