It’s that time of the year where MEP Middle East compiles its list of Top 25 MEP Contractors.
As with all lists, determining the ranking did involve an objective and a subjective approach. Objective because rankings can be measured with concrete revenue figures and project values.
And subjective because not all values are available and one needs to factor in other market dynamics. We feel we have done our best in putting together this list and we are sure it is open for debate.
The questionnaire that we sent out to you was designed such that we acquire all the required details to make an informed decision.
As always, there were a few who did not participate in the process. In addition, some of the information supplied were insufficient. Like we have said before, the more information you provide, the better the ranking!
This year you will see several new contenders competing for the position. Over the last couple of years, we all have been witnesses to the market volatility.
Several big players have reduced in their visibility. This decline of big MEP firms has in turn given a lot of opportunities to the new players.
Therefore, in this year’s list, we have tried to be as meticulous as possible in the ranking, by also considering the current economic conditions.
Market analysts reveal that the UAE infrastructure is the most advanced in the GCC region with well connected transport systems and an array of unimaginable structures.
In 2015, as reported by World Economic Forum – Global Competitiveness Report, UAE infrastructure ranking stood at the 17th position on grounds of highly developed infrastructure with great macroeconomic environment and resilient institutions.
In addition, post the announcement of Dubai Expo 2020 event, the UAE has set aside a budget amounting to $4bn (AED17bn) till the year 2020. The investment will reportedly spread over different sectors broadly covering housing, roads, railways, schools, health facilities and public buildings. Abu Dhabi is considered as the next destination for investors eyeing long term growth. The UAE has earmarked $27bn (AED100bn) to be invested till 2030 and majority of it will be used in real estate and transportation sector.
However, talking to several MEP contractors during the course of compiling this list, we also gathered the view that the GCC is speculated to be under financial constraints which could impact the execution of the big plans.
One contractor said that MEP contractors end-up “squeezed” at the end of projects to compensate for all types of delays that were caused by other parties during the course of the contract. Such a recurring problem, in unfairly risk apportioned contracts, has left many MEP contractors in financial difficulties and in some cases forced them to cease business. In addition, cash flow is such an important element in MEP contracting, as you need to be able to accurately forecast the cash flow for a project.
We, as an industry, all need to identify the opportunities in the next few years along with the ongoing challenges to build a realistic view of the market.
We all know that an MEP contractor’s role is important and exclusive, particularly in the current market environment. Thus, we believe you are all winners. Being in the list is a big deal!
See the list below: