Saudi Arabia’s construction market has an estimated value of USD 70 billion with an impressive forecasted CAGR of 4.5% from 2023 to 2028 In a recent conversation, we spoke with Grankraft’s CFO, Iyengar, and learned more about the company’s journey into the Kingdom.
Saudi Arabia’s construction market has an estimated value of USD 70 billion with an impressive forecasted CAGR of 4.5% from 2023 to 2028. The Kingdom’s consistent ranking the MENA’s construction, in terms of the value of projects awarded for 4 consecutive years, coupled with positive workforce and workload projections, make it a lucrative arena for construction companies. The anticipation of increased profit margins and an 89% surge in business inquiries underscore the market’s vitality.
One of our construction expansion leaders, Grankraft has been working closely on projects based in Saudi for a while, Ramesh Iyengar, CFO at Grankraft looks back on the company’s journey in the Kingdom, “We have been working on Saudi projects since 2020, including Riyadh Metro and Riyadh Airport, and that gave us a glimpse into what opportunities the Kindom holds.”
In a recent conversation, we spoke with Grankraft’s CFO, Iyengar, and learned more about the company’s journey into the Kingdom.
An opportunity turned into market expansion
Embracing Saudi’s dynamic market, Grankraft pursued expansion into the Kingdom, partnering with AstroLabs to navigate this new chapter swiftly and efficiently. Today, Grankraft, has grown to over 800 team members, with three production facilities and a strong market presence across the GCC with footprints in Europe, Africa, and Asia.
For over two decades, Grankraft has been at the vanguard of customized construction, recently making its mark with the iconic Sheybarah Hotel on the Kingdom’s Red Sea island. This landmark project was merely a prelude to the remarkable trajectory that would lead Grankraft to Saudi Arabia, inspired by the country’s potential under the Saudi Vision 2030.
Grankraft’s path to expansion was punctuated by the Sheybarah Hotel project, a beacon of hyper-luxury on the Red Sea, showcasing their expertise in specialized metals and full contracting. This venture underscored the importance of expert guidance when tackling new territories.
While incoming companies know they can benefit from favorable conditions in which to set up their operations in the Kingdom, the AstroLabs on-ground team supported Grankraft in approaching the right organizations and fulfilling the requirements to attain these advantages faster and smoother.
Leading Innovation in Construction
Grankraft’s innovative edge is best illustrated by its flagship projects, such as the Oman Across Ages Museum and the Sheybarah Hotel, part of The Red Sea Development. These ventures embody Grankraft’s ability to realize complex, visionary designs, transforming innovative plans into tangible, luxurious spaces that harmonize with their surroundings. The meticulous craftsmanship that went into the Sheybarah Hotel villas—using mirror-finished stainless steel to reflect the sea and sky—exemplifies Grankraft’s dedication to creating immersive environments that redefine luxury.
The CFO of Grankraft expressed the need for a market entry partner and said, “I would recommend company that is looking to expand to Saudi to find a local market entry partner like AstroLabs who can identify the needs from the authorities and use their local know-how to fast-track the process of expansion for businesses.” By advising on the partnership structure and navigating administrative hurdles, AstroLabs ensured that Grankraft could focus on what it does best: innovating and constructing.
The collaboration was also significant in addressing Saudization, a crucial aspect of doing business in Saudi Arabia. AstroLabs’ position as a leading local talent source enabled Grankraft to meet employment quotas, integrate into the local economy, and proceed with its projects, thus aligning with the nation’s Vision 2030 goals.
The company’s proficiency in managing intricate projects from design to execution has bolstered its reputation for excellence. This reliability and the early demonstration of capabilities through mockups have instilled client confidence, crucial for the project’s success and Grankraft’s sustained growth in the region.
The Future is Bright for Grankraft
In conclusion, Grankraft’s journey to and within Saudi Arabia, supported by AstroLabs’ expert guidance, is more than a success story—it’s a blueprint for symbiotic international partnerships. It demonstrates the strategic harmony of maintaining independence while leveraging local expertise, contributing to the Kingdom’s ambitious vision, and cultivating a self-sustaining business ecosystem. This is a narrative not just of constructing buildings but of building a legacy that resonates with the future of global construction innovation.