KABBANI Construction Group (KCG) sees 2008 as the year which consolidated its reputation as the region’s leading specialised contractor and placed it firmly on a steady path towards expansion.

The Jeddah-based group, which comprises specialised contracting divisions, offers a spectrum of expert services and solutions in the construction and engineering sectors. With a complete IT overhaul already in motion and a new marketing vision conceptualised, KCG is hiring young blood, managers and experts of high calibre in a bid to develop on its promises of better and speedier construction services.
Over the years, KCG has seen steady growth and even the current global crisis has not dampened its spirit or affected its overall performance.
“The global financial downturn hasn’t affected KCG. We have been handling the backlog of projects from 2007,” says Abdel Kader Malak, marketing officer research and development at KCG. “This apart, our core works are for governmental organisations, which haven’t been affected as much as the private sector. Projects such as the King Abdullah Economic City (KAEC), King Abdullah University of Science and Technology (Kaust) and King Saud University are good examples of solid contracts where funding hasn’t been interrupted during this crisis.”
He expects the current year — despite the global credit crunch — to continue to bring major projects to KCG, allowing it to maintain a steady growth rate.
Over the year, the company aims to raise the bar in the construction sector as it continues to bring the best in specialised contracting and engineering into the region.
KCG has 10 independent divisions operating in the country and elsewhere in the region offering a diverse range of services and manned by some 3,500 employees. These include BMC, which specialises in waterproofing and thermal insulation; CRES — concrete repair and industrial flooring; Cosma — construction and maintenance; Sintec — security and networking; Sogec — specialised oil and gas engineering; IIC — industrial insulation and cladding; PMD — pools and marine; CMD — construction management; OMC — operations maintenance and contracting; and Inspectech — infrastructure management solutions.
KCG was awarded many projects last year during which it registered a commendable financial performance compared to 2007.
Malak attributes the company’s success last year to its highly-qualified personnel, constant dynamic management, continuous market monitoring, increase in resources and new international affiliations.
One such interesting and challenging project being undertaken by the company is the Dammam underpass repair project. KCG is the primary subcontractor to the main contractor Sinopec International Petroleum Service Corporation on the project.
Elaborating on the project, Malak says: “The project aims to rehabilitate the underpass, which had experienced certain failures resulting in critical water leakages, concrete cracks, horizontal movement and other effects. KCG is executing vital jobs entailing the provision of waterproofing solutions, concrete repairs, structural inspection and the monitoring of the underpass to ensure its safety and structural integrity during and after completion of its rehabilitation.”
Four KCG divisions are involved in the project:
• BMC is responsible for the waterproofing works, which is a challenge because of the high water table at the site;
• CRES is executing the repairs to the concrete slabs, walls, expansion joints and others elements;
• Inspectech is performing all the required inspections and tests to evaluate the structure during the repairs. It will also install and implement technological systems that will allow the client to monitor the structure in the years to come.
• The Research and Development (R&D) division of KCG, the technical backbone of the contract, has been closely involved in the study of the project and has specified state-of-the-art materials and systems to ensure its success.
“The project, which has received extensive media coverage over the past year, is a typical example of how KCG utilises all its expertise, technical and human resources, international affiliations and partnerships to make sure that the job is performed to the most professional engineering and contracting standards,” Malak comments.
In addition to contracting works, KCG is constantly adding new products and seeking new affiliations, scouring the global engineering arena for new and better solutions. The company’s dedication to training personnel and attending local and international seminars/exhibitions allows each division to expand and invest in new technologies, he points out.
The company has also witnessed considerable organic growth. Among such developments, Inspectech, which became an independent division in 2007, began operations in a big way last year and concluded the year on a successful note.
“Inspectech is the only specialised entity in the region that provides infrastructure solutions, non-destructive testing, structural asset management, assessment, evaluation and recommendation services that facilitates owners to maintain and monitor their existing structures,” Malak points out.
Another newly-established division within the group is Operation, Maintenance and Contracting (OMC), which aims to provide the best services in civil, electrical and mechanical contracting and maintenance. OMC is led by highly-skilled engineers who have had long years of experience in the region.
KCG has also focused its attention over the past few years on its R&D division, and has provided it with all the necessary resources to study the market, attend international exhibitions and symposiums, perform pilot projects or trials, and coordinate with potential suppliers/partners that the group may benefit from.
The R&D is responsible for all new products that the group launches on the market, right from the point of first contact, to product launch, introductory seminars, sales and marketing of the product/system until it has gained acceptance in the market.
The responsibility for the product is then transferred to the most relevant division.
Commenting on this division’s performance, he says: “The R&D department has had a very fruitful year. It introduced new concrete repair products and suppliers such as Vandex (concrete protection and waterproofing), QED, SPF and PipeMedic (for pipe renovation). It also conducted seminars and road-shows for new partners Kryton (Canadian waterproofing specialist and manufacturer), BDI (American bridge testing experts), QuakeWrap (American specialist manufacturer of carbon fibre-reinforced polymer for strengthening of structures). Among other achievements, the division also arranged training seminars for the group’s new engineers (Discovery Programme).
Turning to the Saudi market, Malak is optimistic about prospects for the construction sector despite the current downtrend.
“There is a slight slowdown mainly due to the global crisis and contractors have to be more cautious before signing new contracts especially when the projects involve multinational suppliers, who have been more severely affected. But in general, the construction sector is very positive with all the new mega projects such as the KAEC and Kaust in progress.”
A number of new government-funded projects will be launched, he says, whereas private-owned projects such as towers and commercial centres may be stalled.
“Saudi Arabia has undergone major changes over the past five years, with construction and urban development being at the core of this movement. It is certainly a good market for a contractor, whether there is crisis or not.”
Kabbani Construction Group has been present in the market since 1980, when it opened its main office in Jeddah. Since then, the company has undergone a steady expansion, and has evolved from a roofing subcontractor to a leading specialised engineering company.
The company has been an approved contractor for Aramco since 1990 and has successfully undertaken hundreds of projects under general service contracts.
The company has main offices in Riyadh and Dammam. It is represented throughout the kingdom and the Gulf region by local offices and affiliates (in the UAE, Qatar, Egypt, Lebanon and Syria).