Indonesia's PT Wijaya Kriya, a giant in the construction sector, and Adel Mekki Contracting Est. of Saudi Arabia signed the partnership after obtaining the approval of the Saudi Arabian General Investment Authority (SAGIA) to work in the local market.
According to Adil Makki Contracting Est. Executive Chairman Adil Makki, his establishment and PT Wijaya Kraya of Indonesian were in talks for a year because of the many requirements sought by the Indonesian company in the matter of selection of partners around the world.
Makki explained that the term of the contract is ten years from the date of signing, subject to renewal.
The entry of the Indonesian giant in the construction and contracting sector and such international companies is expected to contribute to the revitalization of this sector and bring in new expertise. This is especially so as companies like PT Wijaya Kraya have achieved outstanding successes in the construction sector not only in Indonesia but also in international markets, Makki added.
Muammar Atawi, chairman of the contractors committee at Jeddah Chamber of Commerce and Industry (JCCI), said this is the first time that an Indonesian giant in the contracting and construction sector has entered this market.
This is proof of the vitality of this market and its continued growth with huge projects despite recession in many international markets.
Sergar, chairman of PT Wijaya Kraya of Indonesia, said he was delighted to enter the Saudi market and establish a strategic relationship with Adil Makki Contracting Est.
He pointed out that the entry of PT Wijaya company Kraya into the Saudi market follows the endorsement of the work undertaken by the Indonesian company in the other Arab, Gulf and international markets.
PT Wijaya Kraya, established in 1960, specialized in the construction of buildings and infrastructure for government, and soon expanded its activities to include various energy and industrial and construction projects.
Its share of the construction market in Indonesian exceeds 35 percent. It has 2,000 engineers and technicians, and more than 20,000 workers.
He claimed the company ranks number one in the construction sector, adding that it has pursued a plan for overseas expansion. Since 2007, it entered the UAE, Algerian and Libyan markets, and has its presence in Myanmar, Malaysia, Brunei and East Timor.
He emphasized that his company's joint operation in the Kingdom will compete for government projects, especially infrastructure and architecture.
We expect to win contract bids worth more than $200 million here during 2016, he said, adding that his company, which has been certified by SAGIA as a foreign investor in 2015, is already studying more than $40 million worth of Saudi projects, including housing and commercial centers.
Source: Arab News