Integrated services for large-scale projects

May 25, 2026

Yahya Al Yami, Group CEO of Khalifa Abdulrahman Algosaibi Investment, talks to The Energy Year about growing the group’s building materials business and the competitive advantages of operating within the Saudi industrial ecosystem.

Khalifa Abdulrahman Algosaibi Investment (KAI) is a conglomerate with businesses in catering, construction materials and chemicals, real estate and logistics.

• Saudi Arabia’s project pipeline is creating demand for integrated support services. Growth in oil and gas, infrastructure and regional projects is increasing the need for catering, accommodation, logistics and supply chain services that can be mobilised quickly at scale.
• Saudi manufacturing is becoming more competitive internationally as government measures have facilitated access to land for domestic companies and eased pricing on energy and labour.
• Localised manufacturing capabilities enable Saudi companies to serve the domestic market with greater flexibility, facilitating partnerships with regional and international companies seeking to do business in nearby markets.

Which business segments will drive KAI’s growth strategy in the coming years?
One of our main priorities is the catering business. We hold one of the largest market shares in the oil and gas sector, and have recently expanded in Riyadh, where demand is growing rapidly. Our objective now is to accelerate growth by reinforcing our operational infrastructure and extending our geographical reach.
We are working on a partnership in Oman, and Iraq offers good potential because there is demand for large-scale project support. We are also evaluating opportunities in North Africa. Our advantage is that we manage most of our operations in-house. From supply chain and warehouse management to logistics and human resources, everything is integrated within our organisation rather than outsourced, which gives us the flexibility to move quickly on large projects.

 

What are the main segments you cater for in the oil and gas sector?
In the offshore drilling segment, we supply catering services to around 40% of active rigs, working with operators such as Arabian Drilling, ARO Drilling and ADES Holding. We also operate accommodation facilities for workers through two major complexes, one in Dammam and another in Jubail, each capable of hosting 2,500 people. These are full-service facilities where we manage housekeeping, laundry services and catering. In Khobar, we operate a residential compound with around 220 villas.
Our services are supported by strong logistics and supply chain capabilities, including a large fleet of vehicles, extensive warehouse space, containers, and machinery, which we control internally. This enables us to react quickly to operational needs.

How do you assess the outlook for your construction and building materials business?
We expect demand for building materials to remain strong in Saudi Arabia as the country continues to invest heavily in infrastructure, so that business is another strategic growth segment for us, also regionally. We have a new partnership in Bahrain, and we are starting collaborations with companies from China, Germany and France to strengthen our technological capabilities and grow our commercial reach.
In a joint venture with a Chinese company, we have already started distributing our products to Russia, Turkey, Thailand and Azerbaijan. It is a demonstration that Saudi-based manufacturing can offer competitive quality and pricing in world markets. The industrial ecosystem in Saudi Arabia helps us compete. Government support facilitates access to land and eases pricing pressure on energy and labour inputs, and being able to source raw materials locally further helps cost competitiveness.
Historically, we have been conservative about expanding our industrial footprint. However, rapid development in Riyadh and western provinces has changed that. Today, the environment is highly favourable for growth. We currently operate three manufacturing facilities in the Eastern Province and one in Jeddah, and we are planning to establish another one in Riyadh.

Have you adjusted the structure of the group to pursue these growth opportunities?
We have consolidated several companies under one umbrella that we call the industrial division. One of them is SICAST, our foundry. Historically, foundries have not thrived in Saudi Arabia because few companies were interested in investing. We saw a strategic opportunity and decided to invest, together with our partners, around SAR 500 million [USD 133.2 million] towards developing it.
Today, the facility is fully operational and attracting interest from international companies. For example, we are in discussions with a Canadian manufacturer of wear parts to make their products for the Saudi market, and potentially for distribution in North America as well. SICAST also supplies products for oil and gas and industrial processes, and materials such as carbon steel, duplex stainless steel and nickel-based alloys.

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