Multiple construction OEMs sign deals to make equipment in Saudi Arabia

Multiple industrial licences and memorandums of understanding (MOUs) were signed at Heavy Equipment Connect (HEC) 2026 in Dammam, Saudi Arabia.

The inaugural show, which ran from 2-4 February saw international and domestic manufacturers, Saudi contractors and developers, and dignitaries including H.E. Eng. Khalil Bin Salamah, the Kingdom’s Vice Minister of Industrial Affairs at the Ministry of Industry and Mineral Resources, all congregate at Dhahran Expo in the east of the country.

Industrial licences promise more manufacturing in Saudi Arabia

Saudi conglomerate Abdel Hadi A. Alqahtani & Sons (AHQ Group) received industrial licences to produce Saudi Arabia’s first domestically produced rough terrain cranes and reach stackers. The move involves an investment of SAR 500 million (US$113.3 million).

Wolffkran formally received an industrial licence to produce cranes in Saudi Arabia during a two-day conference as part of the HEC show (Image courtesy of NIDC)

In addition to signing an MOU with show organiser, the National Industrial Development Center (NIDC), to explore more investment opportunities in the heavy equipment sector, the company has also formed a joint venture with German machinery manufacturer Sennebogen via AHQ’s subsidiary PWS equipment division, with an estimated investment value of SAR220 million (US$58.7 million).

Sennebogen’s managing director Erich Sennebogen told Construction Briefing that the joint venture meant the “next level” of co-operation with PWS in terms of machine sales and service for its crawler lattice boom cranes. “There is a lot of excitement in the market – wherever you look there is construction activity and as we have seen at HEC, the increase in investment in Saudi Arabia [by OEMs] is phenomenal. I think that Saudi has a fantastic future and we are happy to be part of that,” Sennebogen said.

Separately, German-Swiss tower crane manufacturer and rental company Wolffkran also received an industrial licence at the show.

A SAR 400 million (US$106.7 million) investment will see Wolffkran manufacture tower cranes in Saudi Arabia not just for the Kingdom itself, but for the wider Middle East North Africa (MENA) region.

Multiple MOUs signal growing collaboration between international and Saudi firms

Meanwhile, other international manufacturers signalled their intent to produce more machinery in Saudi Arabia, often in collaboration with local companies.

The National Industrial Development Center (NIDC), Chinese OEM Sany, and Al Alameriah joined forces by signing an MOU for the localised production in the Kingdom of screeners and crushers, with an investment value of SAR 475 million (US$126.7 million). The deal recognises the fact that the Saudi Arabian mining sector is rich in minerals and metals, with an estimated $2.5 trillion worth of national reserves.

Liebherr signed an MOU with NIDC to explore localisation opportunities for concrete mixer manufacturing in Saudi Arabia (Image courtesy of NIDC)

NIDC also signed MOU with Liebherr to explore localisation opportunities for concrete mixer manufacturing, with the deal worth an estimated value of SAR 65 million (US$17.3 million).

Additionally, AHQ is partnering with Chinese OEM LiuGong, with the two signing an MOU announced at HEC 2026 to localise production of excavators and wheel loaders.

AHQ also signed an MOU with India-based construction equipment manufacturer Action Construction Equipment (ACE) to advance collaboration in manufacturing, engineering, and market development of tower cranes, backhoe loaders and pick-and-carry cranes, with an estimated investment of SAR 600 million (US$116.9 million).

ACE head of international business Ajay Malik told Construction Briefing that the company aims to become a big name in the Kingdom and in the wider Gulf Cooperation Council (GCC) and noted that the fact that a lot of machinery operators from India and Pakistan work in the region and are already familiar with ACE’s machines could prove an advantage for the OEM as it grows.

H.E. Eng. Khalil Bin Salamah, Vice Minister of Industrial Affairs, Ministry of Industry and Mineral Resources (left), takes a tour of the outdoor demonstration area at HEC 2026 (Image courtesy of NIDC)

Separately, there was an agreement between NIDC and Saudi company Bin Harkil, which is increasing its industrial footprint by investing in local manufacturing for components like high-quality buckets and booms for global manufacturers. It has now signed an MOU to support the further localisation of heavy equipment components with an estimated investment of SAR 115 million (US$22.4 million).

To further advance its specialised manufacturing, Bin Harkil also entered into an agreement with Dutch specialist earthmoving equipment company Snijder for the manufacture of long-reach excavators for industrial demolition and deep excavation.

And Ben Harkil has also entered a partnership with South African company Rosond for the manufacturing of drilling rigs for mining exploration, supporting large-scale projects across the Kingdom of Saudi Arabia.

Investment deals

On the sidelines of HEC 2026, two investment contracts were also signed between the Saudi Authority for Industrial Cities and Technology Zones (MODON) and Abunayyan Holding Company. The project aims to provide equipment and machinery rental services for factories located within the Second Industrial City in Riyadh and the MODON Oasis industrial city in Jeddah.

‘A new industrial era’

A panel discussion featuring Sennebogen managing director Erich Sennebogen; Matar Al Khateeb, CEO of AJIL Financial Services Company; Andrei Geikalo, CEO, MyCrane; and Oner Ozyilmaz, chief technology officer of AHQ. It was moderated by KHL Group’s Steven Webb (Image courtesy of NIDC)

Commenting on the successful conclusion of HEC 2026, for which Construction Briefing’s parent company KHL Group was media partner, Hassan Al-Shehri, senior manager machinery and equipment at the NIDC, said, “This is more than the launch of the Heavy Equipment Connect Forum & Expo - it is the beginning of a new industrial era.

“In its inaugural edition, over SAR 4 billion (US$1.1 billion) in joint ventures were formed, MoUs were signed, and industrial licenses were awarded to investors. A powerful signal that the future of heavy equipment manufacturing is being shaped here, and it is being shaped now.

“As Saudi Arabia accelerates its mining and construction gigaprojects, global OEMs are not just observing the opportunity - they are seizing it. By establishing their production lines in Saudi Arabia, they are positioning themselves at the heart of one of the world’s most ambitious growth stories.

“At National Industrial Development Center, we are proud to stand alongside them - enabling stronger supply chains, advancing localisation, and building a resilient industrial ecosystem that will define the next chapter of heavy industry in the Kingdom.

“The momentum has started - and this is only the beginning.”