Morocco's Construction Giant TGCC Expands to Saudi Market
The agreement, announced on Monday, will see TGCC's Middle East subsidiary collaborate on construction projects developed by the Saudi investment group within the Gulf country.
The partnership marks TGCC's entry into one of the world's largest construction markets. Saudi Arabia is projected to become the global leader in the construction sector by 2028, with project values across all sectors expected to reach $181.5 billion, according to a previous report by real estate consultancy Knight Frank.
Naif Alrajhi Investment, a prominent Saudi group, manages a diversified investment portfolio with particular focus on real estate development. The company operates across 14 different sectors both within Saudi Arabia and internationally.
'This alliance with TGCC Middle East aligns perfectly with our vision to contribute to the development of vibrant, forward-looking urban environments in Saudi Arabia and beyond,' said Naif Saleh Alrajhi, Chairman and CEO of Naif Alrajhi Investment. 'We are pleased to collaborate with a partner known for its technical excellence and reliability.'
Founded in 1991, TGCC has been listed on the Casablanca Stock Exchange since December 2021, and has established itself as one of the top construction firms in Africa and the Middle East.
The company has delivered over 1,000 successful projects with a workforce exceeding 14,000 employees globally, generating consolidated revenues of more than MAD 8 billion ($800 million).
The company has become a reference in technically demanding constructions, particularly in the health sector, where it has built projects including Mohammed VI University Hospital, Hassan II University Hospital in Fez, and the Mohammed VI Oncology Center.
TGCC's entry follows its recent focus on Gulf markets after expanding into Libya in recent years. 'This strategic partnership represents a significant step in TGCC's international expansion,' stated Mohammed Bouzoubaa, Chairman and CEO of TGCC.
'We will support the transformation journey that the Kingdom of Saudi Arabia is witnessing within Vision 2030,' Bouzoubaa added.
The Saudi market has attracted numerous foreign companies in real estate development. Egyptian firms like Talaat Moustafa are developing major projects such as 'Banan' city on 10 million square meters in Riyadh at a cost of approximately 31.4 billion Saudi riyals.
Chinese development companies have also shown interest, with a Chinese consortium planning to develop a project comprising 100,000 housing units at a cost of $2.8 billion.
The construction giant also recently made headlines with its acquisition of a 60% controlling stake in STAM (Société de Travaux Agricoles Marocains) in February.
The transaction, valued at MAD 4.3 billion ($430 million), is expected to be completed in the second quarter of 2025, pending approval from the Competition Council.
This strategic move combines TGCC's expertise in building construction with STAM's capabilities in public works, transport infrastructure, and urban development.
STAM reported revenue of approximately MAD 3.7 billion ($370 million) in 2024 and has evolved from its initial focus on agricultural development to become a major player in public works and road construction.
Read also: TGCC Launches Subsidaires to Boost International Construction Footprint Tags: construction industryMorocco Saudi RelationsTGCC
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