Afcons bets on Middle East to ride construction boom

Shapoorji Pallonji Group firm to increase exposure to the region with Saudi, Dubai partners

- Nehal Chaliawala

Afcons Infrastructure Ltd, which has so far limited its exposure to the Middle East due to unfavourable contract terms, is looking to increase its business there as the region witnesses a construction boom to diversify from oil money.

The company will work in the region in collaboration with local partners who are familiar with domestic conditions to reduce the execution risk, as per top company executives.

The Shapoorji Pallonji Group company is the most bullish on Saudi Arabia and has set up a 90%-owned subsidiary in the country in July 2023 called Afcons Contracting Co. to handle local projects.

The remaining stake in the Saudi subsidiary is owned by a local partner whose name the company has not disclosed.

The country is spending hundreds of billions of dollars in constructing new cities in the desert, including its ambitious Neom project.

Similarly, in Dubai, Afcons has partnered with local UAE firm National Marine Dredging Co. (NMDC) and India's ITD Cementation to bid for the city's ambitious $8 billion new sewerage tunnel project. The consortium is one of the approved bidders for the project.