Algammal for Contracting has announced plans to establish three new industrial complexes in Saudi Arabia, Libya, and Iraq. The group’s vice president, Mohamed Farouk Hafeez, recently detailed this ambitious expansion, which focuses on underground infrastructure essential for modern urban and industrial needs.
Founded in 2003, Algammal began its journey as a subcontractor in the electrical infrastructure sector and has since evolved into a formidable player in the contracting industry. By 2008, the company had ventured into pipeline and electrical networks, eventually becoming a leading general contractor known for its work on infrastructure, industrial projects, and housing developments. With established branches in Libya and a newly opened location in Saudi Arabia, Algammal is poised for further international growth.
The planned complexes will produce underground infrastructure pipes vital for water, electricity, gas, and internet supply in industrial and smart cities, as well as data centers. This expansion aligns with Algammal’s strategy to form alliances with major contractors across the region, including in the UAE, Oman, and Iraq.
The group’s venture into the industrial sector has been marked by the creation of subsidiaries like Ajyad for General Contracting and Metal Works, and Hafar Al Batin Concrete. Through the Egyptian Global Industrial and Contracting Corporation (EGICCO), Algammal continues to offer a wide range of international services.
In Saudi Arabia, Algammal recently secured a license to construct a facility with an annual production capacity of 36,000 to 40,000 tons, backed by investments exceeding SAR 200 million (approximately USD 53 million). The group is also in the process of obtaining a license for a similar project in Libya, where it plans to establish a local contracting arm to cater to regional demands. Meanwhile, initial plans are underway for launching a contracting company and industrial complex in Iraq.
To mitigate the impact of foreign exchange fluctuations, Algammal is increasing the local content ratio in its operations to 80-90%, relying less on imports, except for specialized cables. This strategic move, along with foreign exchange revenues from international operations, bolsters the group’s financial resilience, ensuring stability amid market challenges.
As Algammal for Contracting embarks on this new chapter, its commitment to innovation and regional growth underscores its role as a key player in the Middle East and North Africa’s industrial landscape.
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