Rowad Modern Engineering aims for 50% international business volume – Dailynewsegypt
Mohamed Mahlab, CEO of Rowad Modern Engineering, recently revealed the company’s expansion plan for Egypt and the Gulf markets. The plan involves new investments in infrastructure, industry, and general contracting sectors. Currently, 65% of the company’s business volume comes from the private sector, while the remaining 35% is derived from the public sector, both domestically and internationally.
Tahya Misr Container Terminal
Mahlab stated that the contractual cost for implementing the superstructure work for the “Long Live Misr 1” container terminal project at Damietta Port is approximately $110m. The project is expected to be completed within 18 months, with operational trials beginning as soon as the first phase is finished in 10 months, starting this May.
Sustainability Standards
The project, spanning 750,000 square meters and including numerous port service buildings, has already commenced. It is funded by the International Finance Corporation (IFC), the World Bank’s investment arm, and the European Bank for Reconstruction and Development (EBRD). As a result, all environmental and sustainability standards, as well as local environmental conditions, will be strictly observed throughout the project.
Expansion in Saudi Arabia
Rowad Modern Engineering has secured projects worth SAR 800m in the Saudi market. The company aims to achieve SAR 1bn in 2024 and 2025. Notable projects in Saudi Arabia include the Rabigh Power Plant, a commercial project in Diriyah, and the restoration of the Red Sea Museum in historic Jeddah. Additionally, the company has completed the restoration of the Tarek Abdul Hakim Museum in historic Jeddah, which has been officially opened.
Mahlab said: “We have a stable branch in Saudi Arabia, and our operations there are progressing well, with significant opportunities for expansion and growth. He announced that if any new projects align with our expertise, we are ready to apply for them. Saudi Arabia is a very large country, witnessing periodic economic activity. However, its greatest advantage lies in its vast land area and population, making it a target market for development in the coming period according to the Vision 2030 plan. The Kingdom of Saudi Arabia is committed to achieving many of its international commitments, such as Expo 2030 and the 2034 FIFA World Cup, in addition to the Saudi Vision 2040.”
He highlighted the company’s international expansion plans. Currently, their business volume outside Egypt constitutes approximately 25%, but they aim to increase it significantly to reach 40% to 50% in the coming year. As part of this strategy, they are establishing a branch in Abu Dhabi, which will be their tenth branch outside Egypt.
Exporting Contracting Services
Mahlab emphasized the importance of exporting contracting services. The company actively collaborates with foreign commercial representation offices, leveraging opportunities from Egypt’s substantial national projects. These projects have fueled a construction renaissance, and Egyptian contracting companies have gained expertise and readiness to execute major projects abroad.
He stated: “We are pleased to be part of the state’s strategy in exporting contracting services. Foreign commercial representation offices provide effective support to contractors and enable us to capitalize on numerous opportunities over the past decade. This has led to an increase in the number of companies and the expansion of their expertise, thanks to the large national projects witnessed by Egypt in recent years, representing the largest construction renaissance in modern history. Egyptian contracting companies have gained extensive experience, reputation, and readiness to execute major projects outside Egypt. In my opinion, providing opportunities for Egyptian companies in the contracting sector, along with trust and support in implementing national, industrial, and infrastructure projects, is an important form of support.”
Mahlab believes that projects like Ras El Hekma offer valuable opportunities for Egyptian contractors, even amidst fierce competition, whether they operate as general contractors or subcontractors, and it will be a beneficial step for all participating parties.
Transport Sector
Rowad Modern Engineering has participated in various transportation projects, including the Ain Sokhna Port project and collaboration with Dubai Ports. Notably, they are involved in the Third Ring Road project in Libya, which features several bridges and is executed by a consortium of four Egyptian companies. The estimated cost of this project is €1bn, and it began implementation earlier this year.
Industrial Sector
The company’s focus extends to the industrial sector, where it undertakes significant projects both within and outside Egypt. Their expertise lies in constructing heavy industry factories.
Steel Production
Rowad Modern Engineering is currently executing a groundbreaking project in the Suez area—the first of its kind in the Middle East. This iron manufacturing project aims to produce 800,000 tonnes of iron bars annually, essential for railways. By reducing importation and providing locally sourced iron, they contribute to Egypt’s self-sufficiency. Additionally, the company has successfully established a factory for producing Medium Density Fiberboard (MDF) in Sadat City—a pioneering venture within the Egyptian market and the broader Middle East.
Pharmaceutical Production
Rowad Modern Engineering is currently implementing a pharmaceutical production plant in partnership with EIPICO. This project represents the first of its kind in the field of biopharmaceuticals. The cost of establishing these factories, as part of the contracting work carried out by Rowad Modern Engineering, exceeds approximately EGP 10bn.
Energy Sector
Rowad Modern Engineering has undertaken significant projects in the energy sector. These include the construction of a power station in Beni Suef, Egypt, as well as participation in building the Rabigh power station in Saudi Arabia. Additionally, the company executed a wind power station project in Ras Ghareb and Ataqa and is actively participating in tenders for several wind power projects in Saudi Arabia.
Silos Construction
Mahlab elaborated that his company has successfully implemented a silo in the Port Said port with a capacity of 100,000 tonnes. This silo is likely the first of its kind to be built in Egypt in the past two decades.
Building Sector
Rowad Modern Engineering has a significant track record and extensive experience in constructing administrative buildings, hospitals, and specialized structures that go beyond traditional frameworks. Notably, they executed the Olympic Hall in the capital. Additionally, the company has a distinguished track record in restoring antiquities. Mahlab pointed out that they have three specialized subsidiary companies: one focused on insulation, another on precision construction work, and a third on foundations and deep piles.