Mekdam Holding to shore up presence in high-growth sectors

25/03/2025 06:14 AST

Mekdam Holding is "aggressively" pursuing opportunities within the QR3bn pipeline under negotiation as it seeks to strengthen its presence in high-growth sectors such as technology and engineering.

"As Mekdam Holding Group looks ahead to 2025 and beyond, the focus remains on accelerating profitability, expanding market reach, and enhancing financial sustainability," the Qatar Stock Exchange listed entity said in its board report, placed before shareholders at the annual general assembly meeting, which approved 2024 results and the bonus shares.

On strengthening the presence in high-growth sectors, Mekdam said it included technology services, engineering solutions, and security systems so as to ensure steady revenue growth and diversification.

"As we look to the future, we are motivated by the remarkable strength and resilience of the Qatari economy, which continues to evolve and unlock vast opportunities across a wide range of sectors," said Sheikh Mohamed bin Nawaf bin Nasser bin Khalid al-Thani, Mekdam Holding chairman.

The company, which is leveraging strong backlog of secured contracts (QR2.6bn), said its subsidiaries possess several key advantages that position them to capitalise on local, regional, and international trends within the information, communication and technology or ICT sector.

Some of these opportunities arise from the macroeconomic factors, while others are directly tied to the subsidiaries' unique competitive strengths, the report said.

In 2024, Mekdam signed new contracts totalling QR861mn, with ongoing projects valued at QR2.6bn. The remaining value of works to be completed is QR1.5bn. The company has submitted proposals for projects amounting to approximately QR3bn, with an expected success rate of 20% to 30%, based on historical data.

The subsidiaries - Mekdam Technology Solutions, Mekdam Software, and Mekdam CAMS - have established strong relationships with government agencies, with government contracts accounting for 58.6% of their revenue in 2024.

"Given their size, the quality and diversity of their services, and their strategic positioning, the subsidiaries are well-placed to take full advantage of the growing demand and evolving requirements in the ICT sector," it said.

The perceived market opportunities for the subsidiaries are growth of the Qatari economy, alignment with Qatar Vision 2030 and its emphasis on ICT development, increasing awareness of cybercrime and the need for enhanced security, demand for businesses to stay aligned with cutting-edge technologies, such as automation, robotics, cloud computing, and shortage of qualified personnel in the ICT sector.

The company is aiming not only to further optimise capital structure and reduce financial liabilities, reinforce self-sustaining operational capabilities but also to maximise cash flow generation through efficient receivables management and project execution.

Mekdam Holding is strengthening its financial flexibility to ensure that the group is well-positioned for strategic investments and shareholder returns.