Al Kathiri Holding’s Subsidiary Wins SAR 82.7 Million Contract for Electromechanical Works at Melaa Project in Jeddah

: A Significant Milestone for Al Kathiri Holding

Al Kathiri Holding (SASE:3008), a leading company in Saudi Arabia’s construction and building materials sector, has achieved another significant milestone. The company recently announced that its subsidiary, Msandh Alemdad, has secured a contract worth SAR 82.7 million from the National Housing Company (NHC). This agreement is for electromechanical works at the prestigious Melaa project in Jeddah, Saudi Arabia.

This development represents a major step forward for both Al Kathiri Holding and the broader Saudi real estate sector, aligning with the country’s ambitious Vision 2030 initiative. The contract reinforces the company’s reputation as a key player in the construction industry and highlights its commitment to delivering high-quality services and products to large-scale housing projects.

Overview of the Contract

The awarded contract covers electromechanical works for 295 residential units in Jeddah. The project, set to be completed within six months, is part of Saudi Arabia’s ongoing efforts to expand its housing sector and provide high-quality living spaces for its growing population.

Electromechanical works are a crucial aspect of residential construction, encompassing essential systems such as electrical wiring, plumbing, heating, ventilation, and air conditioning (HVAC). By securing this contract, Msandh Alemdad will play a vital role in ensuring the efficiency, safety, and sustainability of the housing units in the Melaa project.

The Role of Al Kathiri Holding in Saudi Arabia’s Construction Industry

Al Kathiri Holding has established itself as a leader in the Saudi construction sector, particularly in providing top-quality building materials and infrastructure solutions. The company’s focus on innovation, sustainability, and excellence has made it a trusted partner for major government and private-sector projects.

Msandh Alemdad, the subsidiary undertaking this contract, specializes in electromechanical services, offering expertise in modern construction techniques and advanced engineering solutions. The awarding of this contract is a testament to the company’s capabilities and dedication to delivering projects that meet the highest industry standards.

Impact on Al Kathiri Holding’s Growth and Market Position

Winning this SAR 82.7 million contract is expected to have a significant positive impact on Al Kathiri Holding’s financial performance and market standing. The company has confirmed that the financial benefits from this project will begin to be reflected in the third quarter of 2025.

This contract adds to Al Kathiri Holding’s growing portfolio of successful projects, further solidifying its reputation as a key contributor to the kingdom’s real estate and infrastructure development. With Saudi Arabia investing heavily in its construction and housing sectors, Al Kathiri Holding is well-positioned to benefit from future opportunities in the market.

Alignment with Saudi Vision 2030

Saudi Arabia’s Vision 2030 is a transformative initiative aimed at diversifying the country’s economy and reducing its dependence on oil. A major component of this vision is the development of modern infrastructure and housing projects to accommodate the needs of a rapidly growing population.

The Melaa project in Jeddah, supported by the National Housing Company (NHC), is part of these broader efforts to enhance urban living standards and create sustainable communities. By securing a critical role in this project, Al Kathiri Holding is actively contributing to the realization of Vision 2030’s goals.

The Growing Demand for Housing in Saudi Arabia

Saudi Arabia has been experiencing a surge in demand for residential housing, driven by factors such as population growth, urbanization, and government-backed housing initiatives. The kingdom’s housing market is undergoing a transformation, with a strong emphasis on affordability, quality, and modern living standards.

The National Housing Company (NHC) is at the forefront of this transformation, launching various large-scale residential projects to meet the increasing demand. The Melaa project in Jeddah is one such initiative, aimed at providing high-quality housing options for Saudi citizens.

By participating in this project, Al Kathiri Holding is not only strengthening its business prospects but also contributing to the overall well-being of Saudi families by ensuring they have access to safe and comfortable homes.

Technological Innovations in Electromechanical Works

The construction industry is witnessing rapid technological advancements, particularly in electromechanical works. Companies are increasingly adopting smart technologies, energy-efficient solutions, and automated systems to enhance the functionality and sustainability of buildings.

Msandh Alemdad, as a subsidiary of Al Kathiri Holding, is committed to leveraging the latest innovations in electromechanical engineering. By implementing state-of-the-art systems in the Melaa project, the company aims to enhance energy efficiency, reduce environmental impact, and ensure long-term sustainability.

Challenges and Opportunities in the Construction Sector

While the Saudi construction sector presents immense growth opportunities, it also comes with its share of challenges. Some of the key challenges faced by companies include fluctuating material costs, supply chain disruptions, and labor shortages. However, firms like Al Kathiri Holding have been able to navigate these challenges successfully by adopting strategic planning, efficient project management, and technological advancements.

The awarding of the Melaa project contract reflects Al Kathiri Holding’s resilience and adaptability in a competitive market. By continuing to invest in skilled manpower, cutting-edge technology, and sustainable practices, the company is well-positioned to overcome industry challenges and drive long-term growth.

Future Prospects for Al Kathiri Holding

With the Saudi government’s continued investment in housing and infrastructure projects, the future looks promising for companies operating in the construction sector. Al Kathiri Holding is expected to play a vital role in shaping the kingdom’s urban landscape by participating in key projects and expanding its range of services.

In addition to the Melaa project, the company is likely to explore further opportunities in residential, commercial, and industrial developments. By maintaining its commitment to quality, innovation, and customer satisfaction, Al Kathiri Holding can strengthen its market position and achieve sustained success in the coming years.

: A Major Step Forward for Al Kathiri Holding

The SAR 82.7 million contract awarded to Msandh Alemdad for electromechanical works at the Melaa project in Jeddah marks a significant achievement for Al Kathiri Holding. This project not only reinforces the company’s reputation as a leading player in Saudi Arabia’s construction sector but also aligns with the kingdom’s broader economic and infrastructural development goals under Vision 2030.

As the financial impact of this contract is expected to be reflected in Q3 2025, Al Kathiri Holding is well on its way to further growth and success. With a strong track record, a commitment to excellence, and a strategic focus on innovation, the company is set to continue making substantial contributions to Saudi Arabia’s booming real estate market.

The Melaa project stands as a testament to the transformative changes taking place in the kingdom’s housing sector, and Al Kathiri Holding’s role in this progress highlights its dedication to building a better future for Saudi citizens.