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Shohidul Ahad-Choudhury, the head of mergers and acquisitions (M&A) at Arabtec Holding, said he is keenly watching the facilities management (FM) segment in the MENA and GCC’s construction industries, and will drive Arabtec to optimise its commercial potential.
“Most (in the industry) seem to forget facilities management operations,” said Ahad-Choudhury. “Civil and industrial management services are a huge market for us. Just alone in UAE, Saudi Arabia and Qatar, the market will be worth $900 billion over the next 25 years.
“The real money in building and construction is in service management – 8% of the value of the building is cash flows generated from looking after the building or facility post-construction. Arabtec is keen on expanding into this lucrative market,” Ahad-Choudhury said.
He added that Arabtec’s strategy will be to enter various markets in the MENA region which account for 15% of the total global market.
“The MENA market is worth 15% of the total global market, which is worth $14 trillion. We hope to capture these markets through strategically planned M&A operations.
“Arabtec is well-positioned to capitalise on the $1.3 trillion-wroth oil and gas, construction and infrastructure markets in MENA. Countries such as Iraq, Russia and Algeria will continue to be major drivers of growth in the region. We are proud of the inroads we have made into Egypt, which is currently growing as much as 15% per annum.”
Ahad-Choudhury joined Arabtec in March 2013, weeks before the company formed a joint venture with Samsung Engineering .