AlRawaf Contracting
More than a contractor: AlRawaf Contracting, a partner in all endeavors
Khalid Ibrahim AlRawaf, CEO, AlRawaf Contracting highlights the slew of new opportunities available in the Saudi Arabian market due to the government’s diversification efforts and the company’s role as a leader in corporate transformation.
Saudi Arabia’s Vision 2030 economic development plan has instigated a surge in new infrastructure projects, with local construction companies stepping up to the plate to take on this new level of activity. The sector, which is believed to be worth around 70.3 billion in 2024, is expected to rise in market size by almost 30% to 91.36 billion by 2029 as new projects are given the green light across the nation. Lead local private players such as AlRawaf Contracting are leaning on their established expertise and market size to develop new capacities and modernize the business ecosystem. The contractor has worked alongside more than 25 different collaborators on more than 160 mega projects, including the Green Riyadh urban forestation development and the 10,200-square-mile NEOM smart city. The construction giant’s CEO, Khalid Ibrahim AlRawaf, sees the state’s current blueprint as a unifying banner for all entities in Saudi Arabia: “The Vision 2030 strategy encompasses not only state-owned enterprises but has also spearheaded an overarching alignment across the private sector. Our goal is to ascend to the level of prominent companies that Vision 2030 relies on.”
AlRawaf Contracting was established in 1996 as an institution that converted into a public entity in 2000 with a focus on building roads. In the decades that followed, the Buraydah-based company grew rapidly, taking on larger and more complex construction works in Saudi Arabia such as military complexes, telecommunications assets and water facilities, with contracts worth more than $1 billion. In 2021, the contractor divided its diversified activities through the establishment of Sakif Holding Company, which oversaw the operations of AlRawaf Contracting and the following three sister entities: Rafa Company that works in the hydrocarbons sector with a focus on gas station infrastructure; Telad Real Estate that works on housing alongside Saudi Arabia’s Ministry of Housing; and Falcom Industries Company that provides concrete, asphalt and precasted building materials by emerging in the mining industry for extracting raw materials necessary to manufacture. “We are now at a stage of trust with private companies, quasi-governmental entities and ministries,” said AlRawaf. “We currently focus on solutions for roads, buildings, water and energy, with a workforce primarily specialized in electromechanical and civil engineering.”
One of Vision 2030’s top priorities is encouraging the employment of local workers under its Saudization program, with a target of having unemployment rates between 4% and 7% by 2030. In the last quarter of 2023, this number declined to an all-time low of 7.7% due to a large upswing in female employees joining the workforce, the creation of new non-oil entities and a surge in nationalized programs targeting the private sector. National leaders such as AlRawaf Contracting have reshaped their human resources strategies to support these goals. “We view employee retention as a vital aspect of corporate sustainability. We are pleased to note that our employee turnover rate is exceptionally low considering the company's size,” said AlRawaf. The contractor has achieved these targets through the creation of an internal management team comprising legal and financial teams. “Upholding ethical standards is paramount for us, including work ethics, legal compliance, environmental responsibility and occupational safety,” he said. “We have a dedicated environmental management team that meticulously evaluates each project's environmental impact, and we are dedicated to maintaining and enhancing this aspect to the best of our capabilities.”
AlRawaf Contracting is also embodying the country’s relentless pursuit to digitize by not only integrating new technologies into its operations, but also by staying ahead of the competition in terms of engagement. A specific information technology team has been created to actively sift through up-and-coming digital tools and collaborate with potential partners. “We introduce and attract responsible technology companies, assess their financial viability and future advantages, and then implement them,” said AlRawaf. “What is notable here is our steadfast readiness to incorporate new technologies into our work without hesitation due to our innovative and consistently vigilant research team.” The company has maintained long-established partnerships with construction technology entities such as Japan’s Komatsu and South Korea’s Hyundai. At the end of 2023, the company hired the latter equipment provider to boost its fleet of excavators by 100. The new assets will be used to build an underground water pipe connecting the city of Dammam in the Eastern Province to Riyadh.
Moving forward, the AlRawaf Contracting aims to continue taking advantage of fresh prospects in the local market. “Although we have considered moving into international markets, the Kingdom currently has ample opportunities for expansion. We will hold on until we decide the right time,” said AlRawaf. “However, potential alliances with American contracting companies are being considered in the future.” The CEO emphasized the company’s unique partnership style as paramount in attracting new and greater contracts: “It is important for us to emphasize that we are more than a contractor; we are a partner in all endeavors. The success of each project reflects the success of our clients, which is our main objective.”
