The company “Alec Holding,” owned by the “Dubai Investment Corporation” and specializing in engineering and construction, anticipates business opportunities in the UAE and Saudi Arabia amounting to approximately 7 trillion riyals, according to CEO Barry Lewis in an interview with “Asharq.”
On Monday, “Alec” announced its plans to list its shares on the Dubai Financial Market through an initial public offering (IPO) of 20%, and previous reports from “Bloomberg” indicated that this process could potentially raise up to $500 million.
Lewis indicated that he sees significant business prospects in both the UAE and Saudi markets. He noted, “In our target market, we identify approximately 2.8 trillion dirhams in opportunities in the UAE, while in Saudi Arabia, there are likely around 4.3 trillion riyals,” bringing the total to over 7 trillion riyals across both markets.
Regarding the timing of the IPO, Lewis stated, “The timing for the initial public offering is suitable for us, as we are at a turning point in the market. Since 2022, we have two strong pillars in our business growth strategy: the first is our expansion into Saudi Arabia, and the second is our strategic acquisition of the Target Company, which has allowed us entry into the energy sector.”
The company operates through two main divisions: “Alec Construction,” which specializes in construction and engineering, and “Target Engineering Construction,” focused on energy sector contracting, providing services in both onshore and offshore fields.
As for the objectives of the IPO, Lewis explained that, in addition to enhancing financial markets in the emirate, it represents an opportunity for the company to embark on a new growth chapter, offering more transparency for its clients and allowing them to gain insights into governance practices. It would also enable easier access to capital that may be needed in the future.
This IPO marks the second of its kind in the Dubai Financial Market this year, following the successful sale of the “Dubai Housing REIT” owned by “Dubai Holding,” which raised over half a billion dollars earlier in the year.
Discussing the key locations the company is focusing on, primarily targeting large and iconic projects, the CEO highlighted that their main focus is in Abu Dhabi, where they see numerous opportunities in the entertainment and leisure sector, citing the anticipated “Abu Dhabi Disneyland” theme park project announced earlier this year, along with the “Abu Dhabi Sפאר” entertainment project, similar to a Las Vegas venture in the United States. He added, “In Ras Al Khaimah, there is also significant growth potential with the upcoming Wynn Resort.”
The company participates in the “Wynn Marjan” project in Ras Al Khaimah, which Lewis describes as a unique opportunity for them to enter that market.
As for the company’s strategy in Saudi Arabia, Barry elaborated that it focuses heavily on Vision 2030 projects such as “Qiddiya” and “Diriyah Gate,” emphasizing that they see a targeted market filled with substantial business opportunities. He concluded, with Riyadh hosting “Expo 2030,” “We anticipate many opportunities based on our experience from Expo Dubai.”