Back in 1977, Saudi Arabia was on the brink of an economic transformation, fueled by its vast oil reserves. The country’s infrastructure was rapidly developing, yet there was a growing need for specialized construction services to support this expansion.

It was against this backdrop that Kabbani Construction Group (KCG) was founded as a subsidiary of the giant Isam Khairi Kabbani (IKK) Group, making it ideally positioned to play a pivotal role in the nation’s development.

While initially set up as a roofing contractor in Jeddah, over the years KCG established its own subsidiaries specializing in an enormous range of services. Today, it consists of 24 companies and a presence across eight countries, making it the largest specialized contractor in the Gulf Cooperation Council and Middle East and North Africa (MENA) regions and one of the largest in the world.

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KCG CEO Hatem Salaheldin joined the company in 1998 as a young graduate, first helping set up and run the company’s Egypt branch and later United Arab Emirates, Qatar, Oman and Kuwait. Thanks to his extensive experience and leadership, Salaheldin was invited to take over as CEO in late 2012.

“Our success is thanks to our unique business model,” he tells The CEO Magazine. “I don’t think there is another Saudi company that has expanded like we have. Usually, it’s the other way around, with foreign contracting companies from abroad opening branches in Saudi Arabia.

“Many Saudi contractors feel that Saudi Arabia is their ground and that it’s difficult for them to work elsewhere. KCG has done exactly the opposite, going outside our comfort zone and proving that we grow anywhere.”

KCG’s growth has followed the region’s development, covering all the hot spots such as special economic zone NEOM, as well as Diriyah, Qiddiya and historical and archeological sites across the Kingdom. KCG and its subsidiaries have played a key role in the construction of many landmark projects, including the RSG Desert Rock Hotel, Masar Makkah, Abu Dhabi International Airport, Riyadh Metro Line 3, the Infinity Bridge Dubai, the Grand Egyptian Museum and many more.

To date, KCG has more than 11,000 employees globally and currently operates more than 450 active projects (turnkey; engineering, procurement and construction; and specialized construction and engineering services) that are worth more than US$1.87 billion.

“Many contracting companies typically rely on unskilled labor, whereas our employees are all highly skilled because of the nature of our work,” Salaheldin explains. “Nobody else has the same variety of expertise as us, to my knowledge, which gives us an edge. We also spend a lot on talent development, digitalization, sustainability, total quality management and safety.

“These are core aspects of how we do business rather than something we do to satisfy our clients.”

As a result, business has never been better for KCG, with revenue tripling between 2013 and 2023, yet Salaheldin is confident there is still more room for growth.

“It took us 10 years to triple our revenue; we intend to triple it again within the next three-to-five years,” he says.

Bold vision

Part of Salaheldin’s confidence stems from his commitment to supporting Saudi Vision 2030, a comprehensive plan launched by the Kingdom of Saudi Arabia in 2016 aimed at diversifying the economy away from oil dependency and transforming various sectors. This is based on three main pillars: a vibrant society, a thriving economy and an ambitious nation.

The vision promotes economic diversification through investments in industries like tourism, entertainment, healthcare and renewable energy. It also aims to improve infrastructure, education and healthcare services while enhancing the quality of life for its citizens.

For Saudi Arabia, Vision 2030 signifies a shift toward a more sustainable and diversified economy, aiming to reduce unemployment rates, increase foreign investment and boost the private sector’s contribution to the GDP.

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In response, KCG recently established a new company called IKK Energy that is dedicated to providing solar and other forms of renewable energy systems for residential, commercial, industrial, oil and gas and utility-scale projects across the region, including the Saudi market.

Vision 2030 also includes a National Transformation Program that aims to support digital transformation within all industries and sectors in the country. As part of this, KCG has established a dedicated digital unit task force, which has recently worked hard to incorporate building information modeling and digital construction techniques and methods.

This enables KCG to provide broad and detailed views of all phases of a project, helping mitigate or avoid problems that can stall a project, which will help transform the country into a more functional and sustainable environment.

“We were one of the first companies in the region to adopt digital technology to help solve engineering conflicts before we reached them,” Salaheldin explains. “This has allowed us to solve many problems, and it’s been greatly appreciated by our clients.”

Beyond just developing Saudi Arabia’s infrastructure, KCG is fully embracing all three pillars of Saudi Vision 2030.

Equal opportunities

In line with the aim to create a vibrant society, KCG is actively hiring and promoting women in the workplace. The company has hired over 500 women since 2016, an increase of over 500 percent from previous years, including female engineers and professionals spread across the hierarchy.

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Saudi Vision 2030 also aims at providing equal opportunities for everyone – men and women, young and old – so they can contribute to society to the best of their abilities.

In line with this, KCG values talent and abilities above all else, giving everyone, regardless of their age or gender, the chance to showcase their skills and talent in a diverse, respectful and collaborative environment that supports growth.

Another part of the vision is reducing unemployment in the Kingdom. KCG is playing its part in this as well, by looking for Saudi nationals to employ at all levels, while also providing recent Saudi graduates with training programs to help introduce and integrate them into the workplace.

Recently KCG participated in the Wadaef Job Fair, an event that was organized by the Asharqia Chamber of Commerce under the patronage of His Royal Highness Prince Saud bin Naif bin Abdulaziz, Governor of the Eastern Province, in support of the governmental efforts of nationalizing jobs and to increase participation of Saudi nationals in all markets.

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“Working with Kabbani Construction Group has been a remarkable experience. Its commitment to excellence and innovation aligns perfectly with HB Fuller’s mission to deliver high-performance building adhesive solutions for the roofing and waterproofing industry. Together, we’ve built a strong partnership, contributing to high-quality and sustainable construction projects.” – Senthil Viswanathan, Business Director – Middle East, HB Fuller

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“I’m really proud of how KCG and other Saudi contractors have risen to the challenges during this booming market,” Salaheldin says.

“They have developed fast and didn’t hold onto old ways of doing business. We are very proud of our progress so far and are determined to continue to contribute in the strategic projects of Vision 2030.”

Powerful partnerships

In the dynamic and ever-evolving construction industry, the importance of forging strong business partnerships cannot be overstated.

Successful collaborations are the backbone of any large-scale project, ensuring seamless coordination and efficient execution – processes that KCG has put significant effort into refining.

“Our department that deals with the supply chain, like logistics, procurement and total quality management, works in close partnership with our vendors, whether they are contractors or suppliers, to understand how they work and help them work with us,” Salaheldin says.

“It’s all about identifying their preferred channels of communication, how they communicate and upload their data, so we can always communicate effectively between parties.

“Our strong partnerships with our suppliers ensure that projects get delivered on time, with the right quality, with the least environmental impact and as safely as possible.”

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“We are thrilled to work with Kabbani Construction Group. The company’s commitment to excellence, efficiency and their attention to detail consistently enhances project quality. Kabbani’s professional approach ensures seamless execution and timely delivery, fostering a reliable partnership. With its expertise, we look forward to building a better tomorrow through continued successful collaborations.” – Emiel Vis, Regional Commercial Director, BELUX/South EU/Middle East, Carlisle Construction Materials

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Having a thorough knowledge of the supply chain, the project and the customer also has important implications for pricing, Salaheldin says.

“If I don’t effectively explain the project scope to my vendor, they will add risk contingencies,” he adds.

“There are many things that can jack up the price and which result in neither of us being satisfied. But if I give them a clear scope, clear contract, clear guidance and they know that this is a financially solid company, they usually are very competitive, and this is the way we work with them.”

Defining success

While KCG’s business is clearly booming, for Salaheldin, success depends more on the company’s reason for being.

Since its earliest days, KCG’s mission has been to provide the MENA regions with local and reliable services and products for a variety of sectors. This includes creating employment for thousands of personnel and in-house training for hundreds of young Saudi graduates to benefit the graduates themselves, their communities and KCG’s parent company, the IKK Group.

KCG is also committed to ensuring highly ethical conduct, maintaining a quality work environment and a results-oriented approach; together, these are the critical measures of success.

“When we talk about success, we have to step back a little and review our core values,” Salaheldin explains. “Did we achieve our mission and vision? We always embrace good, innovative ideas. We want to make a difference.

“We are very diversified, yet it’s a very unified company with a very warm atmosphere, and we always develop ourselves. If we can achieve all this in line, of course, with our vision and mission, then we can call our work a success.

“When we see so many talented employees who have grown and developed within the business who are able to help the company to achieve the core values, this is another success. Yet, of course, any company is built to make profits, so we have to still consider the financial aspect, but it must be aligned with our values and mission.

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“Going forward, we are going to be very selective. We have a solid foundation of clients who come to us to solve problems thanks to our ability and reputation. We have the experience, the skills and the equipment. Everything is geared toward the future. As a result, it’s my ambition to start contributing to multibillion-dollar projects, which we were not doing in the past.”

As KCG looks ahead, its focus is certain to remain on innovation, sustainability and excellence. By embracing cutting-edge technologies, fostering powerful partnerships and supporting the strategic objectives of Saudi Vision 2030, it is not only redefining industry standards but also solidifying its role as a transformative force in modernizing the Middle East.