Israel-Hamas conflict unlikely to impact projects in Middle East: L&T – ET Infra

Fujairah Port

NEW DELHI: The Middle East Region is a major international market for India’s construction and engineering heavyweight Larsen & Toubro, with a large number of projects in Saudi Arabia. While the ongoing armed conflict between Israel and Hamas has increased the risk of an all out war which may involve several countries in the region, top management of L&T believes that ongoing conflict is unlikely to impact its operations.

“I think the war in the Middle East is an unfortunate development. In our case, most of the orders that we win in the Middle East are in Saudi Arabia and Saudi Arabia, as we speak now, seems to have steered away from entering directly into any kind of conflict or conflicting situation,” said R. Shankar Raman, Whole-time Director and Chief Financial Officer at L&T.

“..given the quality of the programs that they (Saudis) have unleashed, and where we are participating, it is unlikely in our assessment today that the current Israel, Hamas conflict is going to derail the program. In fact, Saudi Arabia has not taken its foot off the accelerator in so far as monitoring the progress of the projects that are under execution,” Shankar Raman said in a post-earnings conference call with journalists on Tuesday evening.

During Jul-Sep quarter, the conglomerate secured its highest ever quarterly order inflow of about Rs 89,200 crore, which was dominated by orders from the Middle East and North Africa and from within the region primarily from Saudi Arabia.

“Of the 892 billion rupees (Rs 89,200 crores) that we have won as orders in quarter two (Jul-Sep), two-thirds of the orders are from international markets. Over 80% of the international orders are from the Middle East, and particularly from the Kingdom of Saudi Arabia,” said Shankar Raman.

In Saudi Arabia, L&T is engaged in energy projects associated with the NEOM Project, launched by Saudi Arabia’s crown prince Mohammed bin Salman Al Saud.

L&T Construction will construct renewable energy infrastructure for the Green Hydrogen plant at NEOM, touted to be the world’s largest and will produce up to 600 tonnes of carbon-free hydrogen per day.

Shankar Raman highlighted that the conglomerate now tops the list of international engineering, procurement, and construction contractors working in the MENA region in terms of value of projects under execution.

  • Published On Nov 1, 2023 at 12:10 AM IST

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