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SAUDI ARABIA - Real Estate & Construction

Mohammed Abdul Nayeem

Chairman, Masah Construction Company

Bio

A civil engineer by profession, Mohammed Abdul Nayeem migrated to Saudi Arabia in 1993, working in key positions with leading Saudi construction entities SBG Group, Al Rashid, and El Seif Group on various projects in the Kingdom. In 2007, he started Masah Construction Company to build the infrastructure for Dr. Sulaiman Al Habib healthcare initiative. Some of the company’s landmark projects include Sahafa Hospital (the largest healthcare facility in the MENA region), the Red Sea International Airport Air Taxi Terminal, and Ajdan Walk and Rise.

"Saudi Arabia is filled with opportunities across all sectors."

Mohammed Abdul Nayeem, Chairman of Masah Construction Company, talks to TBY about the state of the local construction sector, maintaining leadership, and the best opportunities at present.

Can You Provide an Overview of Masah Construction’s Journey since its inception and the company’s positioning within the Saudi construction sector?
I founded Masah Construction Company in 2007 with Mohammed Al Habib to build the foundations for Dr. Sulaiman Al Habib’s Medical Group to become the number-one healthcare provider in the private sector in the Kingdom with a portfolio of 19 Hospitals and over 1900 beds. We have since diversified into new sectors, working for signature clients, notably the Public Investment Fund, the Ministry of Defense, Ajdan, Oud Real Estate, Albasateen, constructing landmark projects across the nation expanding into the aviation, hospitality, mixed used, and residential sectors. The construction industry in Saudi Arabia is evolving rapidly, and over the last five to six years, we have prepared ourselves to meet the rising demand as the country becomes one of the world’s top destinations. We have invested in an in-house design technology, plant, and equipment and human capital to keep pace with the growth. Every year we set and meet our targets, and what started as a small company has grown significantly to become one of the leading construction companies in the Kingdom.

How does Masah Construction maintain its leadership position despite the competition in the market?
There are many companies in the market, however clients select Masah because of our commitment. When we sign a contract, we deliver on time with quality results, which is a personal characteristic known in the industry and has helped us maintain our leadership position. Our investment in an in-house design team, bringing leading professionals to direct our department and providing them with skilled design, BIM technologies, and resources has enabled us to distinguish ourselves from our competition primarily in providing design and value engineering services during tender and post contract, which ensures that our clients’ investments are optimized.

Masah Construction has delivered impactful projects such as building the terminal for the Red Sea International Airport. Can you discuss the significance of these projects for the company?
Completion of the main terminal building’s structure and full turnkey delivery of the air taxi terminal is an example of the trust that clients place with us. As a case example we agreed to undertake the air taxi terminal at the request of Red Sea Global as a partner on a fast-track basis with the project being delivered in just over nine months from excavation to the first plane landing, opening the revenue stream to their hotels. The opening was the highlight of the developer’s year and we undertook the challenge and delivered, an opportunity missed by our competitors who stated that it was too difficult and could not be achieved. Red Sea Global continued its trust in us by awarding further contracts to build the infrastructure of their phase two hospitality offerings on Shura Island, the Amaala wellness center, a USD200 million investment that is on track for delivery, and our latest award to deliver the South Community Residencies on Laheq Island. This year we delivered Sahafa Hospital for Dr. Suliman Habib Medical Group, which is one of the largest private hospitals in the GCC and MENA region, located in the north of Riyadh. Despite starting construction during the pandemic, the facility was opened within three and half years and is the signature healthcare project in our portfolio, reaffirming our status as the sectors leading construction company. Completion certification from the Ministry of Defense & Aviation (MODA) for 300 residential units, including villas and apartments, with full facilities like schools, play areas, treatment plants, and healthcare, creating a self-sustaining village in the desert, was another milestone in our journey. In our pipeline we have several landmark projects, particularly in the private sector, which involves a built up area exceeding ½ million sqm. We are currently positioning ourselves to win SAR2-5 billion in projects in 2025. Every year our company grows by more than 50% in terms of revenue and deliverables and this growth will continue through 2030. We are diversifying into the residential, healthcare, and hospitality sectors, expanding into every corner of the market.

What are the greatest opportunities within KSA for Masah Construction and how is the company capitalizing on them?
While we are working across Saudi Arabia, we are primarily focused on Riyadh due to upcoming major events, such as Expo and the World Cup. With significant projects under the Public Investment Fund (PIF), we have established a specialized team to concentrate on the city’s development. We have brought in expert designers specifically for Riyadh, while continuing work in the western and eastern regions as well. Demand is high, and to meet this, we are bringing in expertise from other countries through joint ventures. We are in the final stages of introducing new industries to support the local demand and enhance our capabilities. Our primary focus remains on construction and we aim to climb the league table to start challenging the top five. We are also concentrating heavily on real estate, with several ongoing projects. Our strategy is to strengthen our foothold in both the private and public sector to meet the growing demand.

In terms of design and infrastructure, what trends are you seeing in Saudi Arabia right now?
Saudi Arabia is filled with opportunities across all sectors. For example, some areas are designated for Salmani architecture, which means only certain architectural styles are allowed. We are adjusting to these regulations while also responding to the huge demand in both premium and regular sectors. We only take on projects that align with our strengths, and our ability to consistently deliver has earned the trust of top corporations. This trust is a key factor in securing our position in the market.

What changes do you anticipate in real estate construction development in the next five years?
There are several major projects that cannot be delayed or canceled, like stadiums and facilities for upcoming sports events. We are preparing for these by aligning with professional companies through joint ventures, ensuring we have the right design engineers and specialists in place. Our focus is on proactively meeting the demand, and we are positioning ourselves to succeed by enhancing our engineering, commercial, and project management teams to tackle the challenges ahead.

Can you highlight the main partnerships that have been pivotal for the company?
Masah Construction is focused on collaborating with large corporates and the real estate sector. We are exploring PPP models and have signed agreements with NEOM. We are also working on the build, operate, and transfer (BOT) model, with our first BOT contract expected to be signed in November to build a hospital with an investment that will be paid for over 30 years. We are collaborating with companies from Dubai, Turkey, India, and China to fill gaps in areas like infrastructure and interior design through joint ventures. This allows us to leverage specialized skills in sectors where we lack expertise.

What is the company’s vision for 2025?
The Eastern Province is rich with opportunities in oil, gas, and petrochemical projects, led by companies like ARAMCO, SABIC, and SEC. Masah Construction has set up a regional office dedicated to specialized projects in this sector. Over the past three to five years, we have achieved more than 50% growth, and while it is challenging to maintain this pace at the top, we are confident in our ability to do so. Even in times of reduced demand, we convert challenges into opportunities. With around 2,000 employees currently and up to 6,000 with our joint ventures, we are committed to securing the trust of our clients and staff as we move forward.

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