Win-win developments in the Saudi fabrication space

Saudi Arabia

Mohamed Al Kayyani, Saudi Arabia country manager at NMDC Energy, talks to The Energy Year about bolstering the manufacturing ecosystem in Ras Al Khair and the impact of the company’s IPO on business volumes. NMDC Energy is an Abu Dhabi-based EPC company specialising in oil and gas projects and offshore fabrication.

Can you tell us about your recently inaugurated fabrication yard in Ras Al Khair and how you expect it to benefit NMDC Energy’s position in Saudi Arabia?
The inauguration of our new fabrication yard in Ras Al Khair at the beginning of 2025 was a major milestone for both NMDC Energy and Saudi Arabia. We are the first EPC contractor to establish a fabrication yard in the country.
The facility reinforces our position and aligns with Vision 2030, particularly its goal to localise industries and promote the Made in Saudi programme. The yard strengthens the local supply chain by creating an ecosystem with other companies in the area, and it offers benefits such as economic growth and job opportunities for Saudi nationals.
The yard’s location within the Ras Al Khair Special Economic Zone brings advantages such as tax and customs exemptions. It won’t just be a place for manufacturing; it will be a hub for knowledge transfer, as we bring more than 50 years of expertise in fabricating offshore platforms and jackup rigs. We are contributing to the development of the Saudi industry and supporting the government’s long-term goals.

What can you tell us about the yard’s characteristics?
The yard is designed to have advanced capabilities. We have essentially replicated the facilities we have in Abu Dhabi, but with the advantage of starting from scratch, which allowed us to optimise the fabrication line. It includes state-of-the-art equipment and facilities, including modern blasting stations, workshops and integrated systems linking fabrication, storage, erection and load-out.
With a capacity of up to 50,000 tonnes per year, the yard will be able to meet growing demand from clients such as Saudi Aramco in the coming years. Modern equipment reduces our carbon footprint and enhances our operational efficiency so we can deliver high-quality services more quickly.

How will your presence in Saudi Arabia impact your geographical expansion plans?
Saudi Arabia is critical to NMDC’s growth and future prospects. Over the past five years, we have reinjected SAR 5 billion [USD 1.35 billion] in Saudi Arabia. We are committed to this market, and our new yard offers new advantages and positions us as a key player in the Saudi energy industry. The support we have received from Aramco in localising our operations has been exceptional, and the company continues to follow up and ensure the project’s success.
With the Saudi market becoming increasingly attractive to EPC companies, many Aramco tenders now mandate the execution of certain packages within Saudi Arabia, and we are ahead of the curve in meeting these requirements. Our new facilities have improved our standing with Aramco and led to other contractors approaching us for fabrication support. From Ras Al Khair, we can serve markets such as Qatar and Kuwait, which reinforces our global position outside the UAE.

Does belonging to the NMDC Group make you more competitive in Saudi Arabia?
One of the key benefits of being part of the NMDC Group is being able to leverage group resources across functions such as trading, marine and construction – all of which are fully operational in Saudi Arabia. This frees us from relying on subcontractors and gives us a significant advantage in executing projects. For instance, instead of struggling to source dredgers or barges from third parties, we can simply co-ordinate within our group. This flexibility helps us meet tight schedules, particularly in the marine sector, where the availability of equipment is often a constraint.
Being part of the NMDC family gives us continuity and strength. We can share resources, knowledge and expertise among different divisions, which streamlines execution and helps us deliver more efficiently. We also benefit from having experienced professionals in many areas – from dredging to marine services to construction – ready to support any project. This is something that we wouldn’t have as a standalone company.

Can you share details on some projects you are currently working on in Saudi Arabia?
NMDC Energy has been awarded significant contracts by Aramco – in 2023, the total amount was USD 1.82 billion – and we are progressing well on all of them, and the relationship remains strong. We are working on delivering the projects on time and always looking for new opportunities.
Our most recent award from Aramco was in 2023, but we are submitting bids. The market is competitive, so we try to offer sharp pricing and hope that we will hear good news.

How do you see your relationship with Saudi Aramco evolving, and what are your expectations moving forward?
Our relationship with Aramco is much more than just transactional; it’s truly a partnership. Aramco is a fair and competitive company, and we earn our projects based on the quality of our proposals and our competitive pricing. We expect to continue winning projects in Saudi Arabia, given the focus on localisation. Our established presence and strong track record will enable us to take a leading role.

How has your IPO impacted your relationships with clients, vendors and employees?
The IPO has enhanced our credibility in the market. It has shown stakeholders that we are financially stable, which in turn assures them that we can handle large-scale projects and continue to meet deadlines. Clients assess the financial health of companies before awarding contracts. The IPO has demonstrated that we are financially sound and transparent.
Additionally, going public has helped us attract talent. Potential employees can see that we are a strong international company with a solid future. Over the past year, our staff has grown by more than 25%, as we have been recruiting people in preparation for upcoming projects. We are not just thinking about Vision 2030; we always try to prepare for whatever may come next.

What are NMDC Energy’s plans for the next five years?
It has been a remarkable journey. What we have achieved over the past few years feels like a dream come true. We never imagined the IPO and the fabrication yard in Saudi Arabia could be completed so quickly. Only a year ago, we were talking about starting construction, and now the yard is operational, and we are already seeing results. People are on board, and our recruitment campaigns in the Philippines, India and Nepal have been successful. The company’s growth has been incredible. When I first arrived, we had only 200 people. Today, we have more than 600 employees, and we will be hiring an additional 1,850 workers before June 2025.
With the team and resources we have in place, we are on track to hit our targets and continue growing. Every day we are closer to realising our vision. With our management’s leadership and support, we can continue achieving great things in Saudi Arabia.

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