Ahmad Zaki eyeing RM300m Saudi deals

By Sharen Kaur
Published in NST on March 19 2010

Ahmad Zaki Resources Bhd (AZRB) (7078) , a construction group, is eyeing contracts worth some RM300 million in the Middle East as it seeks to grow.


Managing director Datuk Wan Zakariah Wan Muda said the contracts are for building and infrastructure projects in Saudi Arabia.

"These are small developments. We are studying the market and expect to make a bid within the next one to two months," Wan Zakariah told Business Times in an interview in Kuala Lumpur recently.

For the year to December 31 2009, AZRB posted a net profit of RM20.7 million on revenue of RM458.1 million.

Wan Zakariah said there are bigger projects worth several billion ringgit coming up in Saudi Arabia to build among others, highways, universities, hospitals and airports.

The Saudi government has also budgeted a huge sum to upgrade the road and rail network and is calling for tenders, he added.

"We will bid for some of these projects. We are ready to embark on new jobs as some of our existing projects in Saudi Arabia are nearing completion and we would like our plate full," Wan Zakariah said.

AZRB has four existing projects in Saudi Arabia worth almost RM900 million.

It has two jobs valued at RM330 million from main contractor Saudi Oger Ltd, to construct faculties and apartment blocks for the King Abdullah University of Science & Technology in Jeddah.

The third contract worth some RM350 million is to construct and develop in two phases the Al-Faisal University Campus in Riyadh.

AZRB has built the faculties while it expects to finish constructing the apartment blocks in two years, and the Al-Faisal University by year-end.

In May last year, AZRB won a RM185.5 million contract from Saudi Oger to build reinforced concrete structures for Tower H1-A of the Jabal Omar Development in Mecca.

"We aim to be a long-term player in the Middle East. Working in a foreign country is not always easy. You must know the environment and have the right contacts and talent to build yourself a good track record," Wan Zakariah said.

AZRB made inroads into the Middle East in 2005 and landed its first job in Saudi Arabia in the same year.

Wan Zakariah said AZRB is also looking for projects in the United Arab Emirates and Oman.

The company will use the Malaysia Services Exhibition 2010 (MSE 2010), scheduled next month in Dubai, as a platform to seek more opportunities.

AZRB is one of 150 exhibitors at MSE 2010, to be held from April 13-15 at the Dubai International Convention and Exhibition Centre.

-ENDS-