Lim: Being appointed as the main contractor for a significant development in Medina reflects the trust our partners have in our capabilities.
PETALING JAYA: Construction and property development solutions provider, and an LBS Bina Group Bhd subsidiary, MGB Berhad (MGB) announced on Nov 19 that its joint venture company based in the Kingdom of Saudi Arabia (KSA), MGB Alameriah Contracting Company, has accepted a Letter of Award (LA) from Beetah Real Estate Company for the construction of residential and commercial project for Al Madina Al Manowara comprising apartments in the city of Medina, KSA.
The value of the LA is up to approximately RM444mil (the equivalent of approximately Saudi Arabia riyal 400 million), and is MGB’s largest overseas award to date, propelling the group further into the Middle East’s rapidly growing construction landscape.
Transformative development in Medina
The awarded project encompasses the construction of a full-fledged residential commercial development featuring 440 units of apartment across four distinct typologies – A1, A2, B1 and B2. Located in the city of Medina, the project is scheduled to be completed within 30 months, with construction expected to commence on Mar 1, next year.
Medina is the fourth largest city in KSA and has seen an uptick in development. It is one of the fastest growing regional economies that is driven by trade, construction and tourism sectors, with over Saudi Arabia riyal 210 billion around 213 development projects that are underway.
From supplier to main contractor, MGB strategic evolution
MGB’s role in Saudi Arabia has transformed and evolved since its incorporation. The company began as a manufacturer and supplier of precast concrete products.
Through its preparation, relationship building and steadfast belief in its value proposition having a place under the ambitious and transformative Vision 2030, the company stands as a main contractor for a major residential-commercial development in Medina today.
Its progress in the region is a recognition that its capabilities are now world class and its strategy of building trust, reliability and consistency in this region has started to pay off.
Plus, its footprint has now strengthened to a commitment to long-term value creation within KSA.
This project gives MGB a strategic initiative for future opportunities as the KSA continues to take steps to reach its target of 70% homeownership by year 2030, and to reach the top 10 in the Global Competitive Index.
Strengthening long-term growth across the Middle East
The project is another feather in MGB’s cap as the company eyes more projects, as part of its strategy for broader regional expansion.
MGB group executive chairman Tan Sri Ir Dr Lim Hock San expressed his confidence in the group’s growing international footprint:
“This milestone is a proud moment for MGB,” said Lim. “Being appointed as the main contractor for a significant development in Medina reflects the trust our partners have in our capabilities and the strength of our engineering expertise.
“Our progression from supplying precast concrete products to leading a major construction project demonstrates the resilience, growth, and dedication of our team. We are honoured to contribute to a city of such importance and look forward to strengthening our presence in Saudi Arabia as the country continues its remarkable transformation.”
With the acceptance of this LA, the group moves forward confidently in its ambition to become a leading construction and engineering player within KSA.
