Al-Bawani finds opportunities amid the crisis

03 September 2020
Business diversification and strictly enforced emergency plans helped the firm navigate tough Covid-19 challenges

Q&A with Fakher al-Shawaf, general manager of Al-Bawani

Q: What type of projects are going ahead in Saudi Arabia? 

Driven by Vision 2030, hospitality, healthcare, aviation and infrastructure (water and power) projects have gained momentum in the marketplace. The public-private partnership (PPP) model is expected to become more prevalent in the near future. 

Q: What are the key challenges for delivering projects in Saudi Arabia?

Saudi Arabia’s business environment in general – including construction – has changed rapidly and in positive ways over the past few years. These fast-paced changes have in some cases put pressure on engineering, procurement and construction (EPC) contractors to maintain project schedules and costs. Contractors have also had to adjust to the organisational structure of new clients, who are adhering to higher standards and following more sophisticated procedures.

Q: How do you expect the Saudi market to perform over the next year?

The global impact of Covid-19 has had a clear knock-on effect on the market outlook and downsized some prospects, especially for megaprojects. The good news is Saudi Arabia’s economic management will minimise the recovery time for the EPC market and a positive trend can be expected by the end of next year.

Q: From a business continuity point of view, how has coronavirus affected Al-Bawani and the construction sector in Saudi Arabia?

Coronavirus was a big challenge and a real test of all companies’ sustainability plans. For Al-Bawani, the business diversification at the group level and strict implementation of company emergency plans helped us to get through the difficult period of lockdowns.

Travel restrictions have impacted the movement of in-kingdom and out-of-kingdom personnel and the timely transportation of goods, leading to delays. Covid-19-related measures have also resulted in additional costs and investments to enhance social infrastructure such as workers’ camps, labour transportation and infection control procedures.

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