Indian infra giants L&T, Afcons bag billion-dollar deals amid West Asia's building boom

A report by UK-based brokerage Investec pegs project awards in the region at $235 billion in 2024—more than double the yearly average between 2015 and 2022.

L&T expands deeper into West Asia

L&T’s global operations are now heavily centred in West Asia, with overseas order inflows more than doubling in FY25 to over ₹2 trillion, compared to roughly ₹900 billion in FY23.

Projects from Saudi Arabia and the UAE contributed over 60 percent to its international order book this fiscal.

The company has transitioned from working as a subcontractor to becoming a long-term agreement (LTA) contractor for Saudi Aramco—an upgrade that has opened doors to major offshore oil and gas assignments.

It also bagged contracts in sectors like hydrocarbons, power transmission, and general infrastructure, lifting its market share in the GCC’s hydrocarbons segment to about 10 percent and in infrastructure to over 8 percent.

The outlook remains strong: L&T’s order pipeline for FY26 is estimated at nearly ₹19 trillion, with hydrocarbons accounting for two-thirds of that.

Afcons targets $22 billion sewerage project in Dubai

Meanwhile, Afcons Infrastructure is aiming for a breakthrough with its bid in Dubai’s $22 billion Sewerage Project, which involves building 75 kilometres of deep tunnels, 220 kilometres of link sewers, and two central treatment facilities.

Afcons is part of a joint venture and is in advanced discussions with two of the three shortlisted BOT concessionaires.

The firm had pre-qualified for the project last year and began submitting bids for critical packages earlier in 2025.

If the project comes through, Afcons could secure a share worth between $2.5 billion and $3 billion—matching the scale of its current annual order intake.

Favourable shifts open doors for Indian players

The Investec report points to a shift in the regional competitive landscape. South Korean contractors are pulling back after past profit margin setbacks, while Chinese firms—although present in large numbers—remain scattered across smaller packages.

Italian firm Saipem holds the largest share of ongoing projects, but L&T stands out as the most active Indian company in the region.

More than 50 Chinese companies have won contracts, yet none feature among the top five individual players.

Oil earnings continue to drive public investment

Elevated oil revenues remain a key force behind the GCC’s spending spree. Currently, around $235 billion worth of projects are under bid evaluation. Some of the biggest upcoming developments include:

Dubai Airport expansion ($35 billion): Infrastructure and transit development
Riyadh Airport project ($20–30 billion): Phased construction tenders underway
Metro and rail projects: Active bidding across Saudi Arabia, the UAE, and Kuwait
Power generation: Over 20 GW of renewable and conventional capacity under planning or in the bidding stage

L&T continues to focus on energy and transportation contracts, while Afcons is expanding into urban infrastructure and tunnelling.

Other Indian infrastructure firms, including G R Infraprojects, KNR Constructions, and H.G.

Infra, are also exploring opportunities through pre-qualification rounds and potential joint ventures.