Morocco’s TGCC Enters Saudi Construction Market Through Strategic Partnership

Morocco’s leading construction company TGCC has established a foothold in the Saudi Arabian market through a strategic partnership with Naif Alrajhi Investment,according to an announcement made Monday.

The agreement will enable TGCC’s Middle East subsidiary to collaborate on construction projects developed by the Saudi investment group in the Gulf kingdom.

This partnership represents TGCC’s entry into one of the world’s most dynamic 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 real estate consultancy Knight Frank.

“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,” Naif Saleh Alrajhi,Chairman and CEO of Naif Alrajhi Investment,was quoted by several media  outlets as saying.

The Saudi group manages a diversified portfolio across 14 sectors both domestically and internationally,with particular focus on real estate development.

TGCC,founded in 1991 and listed on the Casablanca Stock Exchange since December 2021,has established itself as a leading construction firm in Africa and the Middle East. The company has completed over 1,000 successful projects with a workforce exceeding 14,000 employees globally,generating consolidated revenues of more than MAD 8 billion ($800 million).

TGCC has built a reputation for technically demanding constructions,particularly in the health sector,where its projects include Mohammed VI University Hospital,Hassan II University Hospital in Fez,and the Mohammed VI Oncology Center.

“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.”

The Saudi market has attracted numerous foreign construction companies,including Egyptian firms like Talaat Moustafa,which is developing “Banan” city on 10 million square meters in Riyadh at a cost of approximately 31.4 billion Saudi riyals. Chinese developers have also shown interest,with a consortium planning to build 100,000 housing units at a cost of $2.8 billion.

TGCC 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.