Leveraging over 45 years of experience in the utilities sector, Alfanar Projects is expanding its horizons globally, placing a particular emphasis on sustainable and renewable energy. In a recent exclusive interview since its rebranding, Jamal Wadi, President of Alfanar Projects, provided insights into the company’s strategic direction, ongoing ventures, and alignment with Saudi Arabia’s ambitious infrastructure and energy objectives.

Recently, Alfanar Projects rebranded and evolved into a global project developer, offering engineering, construction, and tech solutions. Considering Saudi Arabia’s current infrastructure landscape, what solutions can Alfanar Projects provide to the kingdom and the region?

As a key division of the Alfanar Group, we have been around for more than 45 years – initially only as a regional contractor for the utilities industry and eventually, through the establishment of our development arm, we expanded globally by conceiving and constructing infrastructure, renewable energy, and green fuels projects.

In Saudi Arabia, we enjoy a coveted position as a leader in engineering construction for the transmission and distribution business of the grid industry. We also have in-house capabilities for civil works, MEP, testing and commissioning, operation and maintenance, as well as the largest facility in the Middle East for rewinding, repairing, re-engineering, and life assessment studies of power transformers, motors, and generators—also, steel fabrication and facilities management.

Combining our qualified workforce of engineers and professionals along with construction equipment and all our business units, we have the advantage and capability to execute end-to-end projects flawlessly within the contractual period.

Additionally, Alfanar Projects works across multiple industries like water, grid, infrastructure, renewable energy, process, digital, and healthcare. We have also delivered successful projects for leading utilities providers in UAE and Bahrain.

With a strong portfolio of renewable energy projects, how does Alfanar Projects intend to expand within the new energy sector and address climate change?

Through our project development arm, Alfanar Global Development, we have built a robust portfolio of 1.75 GW renewable energy projects, and are now looking to advance in the green hydrogen sector as well. Around COP27 last year, we signed a PDA with the Suez Economic Zone in Egypt to produce green hydrogen. The business intends to invest $10 billion by 2030 in green hydrogen projects and integrated facilities to capture 700,000 tonnes of CO2 in the future.

Within Saudi Arabia, we are aligned with the Saudi Green Initiative and are investing in renewable energy technologies such as wind and solar energy. We are also constructing a 110 MW solar photovoltaic power plant with a floating solar system for SWCC’s Jubail desalination plant.

When it comes to decarbonising the mobility industry, we are constructing electric vehicle charging stations and building the largest sustainable aviation fuel (SAF) facility in the UK that will decarbonise the UK’s aviation sector.

As Alfanar Projects diversifies and digitises, how is it partnering locally and globally to boost construction capabilities as well as prioritise sustainability?

As part of Alfanar Group, we have created history in the kingdom for the seamless rollout of the largest smart metre project in the region. This was possible only through collaboration with our technology partners. The smart metering project has helped the utility increase the grid’s energy efficiency and benefited the end user by monitoring their energy consumption.

When it comes to advancement in the digital infrastructure domain, we have also collaborated with partners while constructing data centres in the country to host critical data of national importance.

The healthcare development business of the group – Alf Healthcare – is strengthening its supply chain with international partners for medical equipment distribution and has secured an operations contract for Red Sea Global’s Coastal Village Hospital in a JV with our overseas partners – Steward Healthcare International.

Given Saudi Arabia’s focus on PPPs for social infrastructure, what challenges and opportunities will arise for private construction and engineering firms, and how do they impact the kingdom’s economic growth and job creation?

The whole world has its eyes on Saudi Arabia, and rightly so. As the largest Arab economy, the kingdom is witnessing tremendous growth driven by increased investment in local manufacturing and a growing young population. There has been a surge in demand not only for basic infrastructure but also for entertainment and hospitality projects as the average family’s spending power has increased in addition to a growing female workforce.

The Saudi government is actively promoting the private sector’s participation in building the infrastructure to meet these needs, and we are proud to play our role. When it comes to challenges, some of them range from an inadequate supply chain to a shortage of talented professionals to meet market demands.

Alfanar Projects is committed to mitigating these challenges by building the local supply chain, developing and training local talents, and implementing the best project management practices for these ambitious projects. Furthermore, we are actively hiring more women in our Saudi offices to address the gender gap.

Alfanar Global Development, the project development arm of Alfanar Projects, recently invested SAR 10 billion in a PPP with NEOM to develop sustainable residential communities. Can you elaborate on the significant progress with the project’s mobilisation and execution, and what part will Alfanar Projects play in this project?

As mentioned earlier, Alfanar Projects has in-house capabilities, a wealth of experience, assets and a workforce to offer end-to-end solutions for such mega projects. NEOM has evaluated the credentials of Alfanar Global Development in terms of our commitment to fulfilling the projects in the given timeline as a developer.
Mobilisation is in full swing, and project execution is progressing at a promising step. In 2023, we will be completing the project’s first phase and handing over the accommodation to 13,000 residents. The grand completion is expected by the end of 2024, with more than 50,000 residents accommodated.