During the past decade, the structure of the contracting industry in the Gulf Cooperation Council (GCC) region has changed dramatically, with marked shifts in the type, complexity, and size of contracting projects. Customers are launching projects of a larger scale and budget, have become more sophisticated, and are setting ever-higher standards for quality, timeliness, and overall performance. In addition, cross-border and cross-sector competition has increased significantly. Financing requirements, furthermore, are higher and more rigorous, while the complexity of projects is placing new demands on supply chains, equipment needs, and human capital capabilities.
Although overall growth in the contracting industry has allowed market participants to continue to succeed in this changing environment, they must start adapting their overall strategies and operating models to the demands of the new environment, or risk losing out to others. Contracting companies must pursue strategic imperatives with the potential to affect every aspect of operations, including supply chain management, human capital development, systems integration and investment, and other critical functions. In addition, contractors will need to assess where they want to compete. Firms going through that process successfully will emerge with a stronger position from which to build their market share and profitability.