Middle East Foundation eyes tenders worth Dh1bn in GCC
Jun 10,2009
The Middle East Foundation Group said it is bidding for tenders worth more than Dh1 billion across the GCC. The company, currently working on the Dubai Metro project, said it hopes to win some of these key contracts.
Aidroos Hassan, Executive Chairman of the Middle East Foundation Group told Emirates Business that the company is looking towards expanding its operations to other markets in the region.
"All these years we have been occupied with the UAE. But today we are looking to other countries within the region. We are focusing on Saudi Arabia, Qatar and Iraq," said Hassan.
"We are also currently bidding for a project in Abu Dhabi valued at Dh550 million. We have also bid for a project in Saudi Arabia valued at Dh170m."
According to Hassan, some leading contractors from Iraq have approached the company with business propositions in their country.
"We have even sent our delegation to study the market. It looks promising. They are even talking about the possibility of building a metro in Baghdad and we have plans to enter into a joint venture with a major contractor in order to bid for the project," he said.
He added that the experience of working with Dubai Metro would be beneficial.
Middle East Foundation is specialised in foundation engineering, providing a range of geo-technical services including piling, ground improvement techniques, diaphragm walls, secant walls, grouting and steel sheet piling. Its current portfolio includes Burj Dubai, Dubai International Airport, Dubai Metro and several other projects. It is also currently working on the piling and foundation works on two buildings in Business Bay, Burj Al Alam, Al Bateen Tower near Sheraton, a project in Abu Dhabi with Ghantoot, Sky Villa, a building in Dubai Marina, 63A in Business Bay and the Roads and Transport Authority's headquarters.
"We have already completed the diaphragm wall of the RTA project. We have also completed the diaphragm wall on Sky Villa and are now working on the piling," he said.
Middle East Foundation entered into an agreement with Emaar in 2007 to be the only contractor for piling and foundation work on all its projects until 2011.
"Those were the days when Dubai had too many projects but very few contractors. Developers were very keen to tie up with a contractor so that they could start work immediately. The situation is totally different now," said Hassan.
According to him, 2008 has been an excellent year for the company, whereas 2009 will continue to produce good results.
"Our turnover in 2008 was very good. If we manage to win most of the tenders that we have bid for, there will be no reason for concern," Hassan added.
The Middle East Foundation Group, which initially started as a piling and foundation contractor, later expanded its activities to other speciality areas.
In 1999, the company branched out and formed its own dewatering division.
"We saw a major opportunity there and today have managed to create a niche within the dewatering industry. In 2003, we started our own post-tensioning section, which was followed by a ready mix unit in 2004," said Hassan. "Last year when there was much shortage of ready-mix concrete, having our own facility really helped us. We have two batching plants capable of producing 240 cubic metres of ready-mix concrete per hour."
The current ongoing projects of the post-tensioning section include the RTA's road project that lies parallel to Al Khail Road.
"We are only involved in the piling works on the project whereas the main contractor is Gunal Contracting. We also working on the post-tensioning of Interchange Number 8 and are working with a Japanese company. We are working with Besix on the bridge at the entrance to The Palm Deira and we are also working on the bridge for Tecom with Wade Adams," Hassan said.
"We are a fully UAE-owned company and the only one to develop the post-tension diaphragm wall. Normally, when they were doing marina work they were using an old system called the keyhole, which took away 25x8 metre of land. Using the new system, we have reduced it to just 80cm. We have had international companies such as Halcrow to review our design and we have also got it approved by Dubai Municipality," he added.
Many of Middle East Foundation's current bids are competitive tenders.
"The majority of our cost is based on material prices, especially, steel and cement. These two products alone constitute about 60 per cent of our cost. So any fluctuation in the prices of these materials will have an impact on the project cost," Hassan added.
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