Indian giants L&T, Afcons win big in West Asia's $235 billion infra push

L&T focuses on transport and energy in Saudi Arabia, UAE; Afcons eyes Dubai Sewerage Project and urban tunnels as West Asia's project pipeline booms

India’s top engineering and construction companies, Larsen & Toubro (L&T) and Afcons Infrastructure, are emerging as major players in West Asia’s infrastructure boom, securing billion-dollar contracts as project awards in the Gulf Cooperation Council (GCC) region surge to $235 billion in 2024—more than double the annual average from 2015 to 2022, according to a report by UK brokerage firm Investec.

 

L&T’s growing international footprint

L&T’s international business is now significantly anchored in West Asia. Overseas order inflows have more than doubled to over ₹2 trillion in the financial year 2024-25 (FY25) from around ₹900 billion in FY23. Orders from Saudi Arabia and the UAE alone accounted for over 60 per cent of FY25’s international orders.

 

L&T has evolved from a subcontractor to a long-term agreement (LTA) contractor for Saudi Aramco, giving it access to large offshore oil and gas projects. It has also secured contracts in power transmission, infrastructure, and hydrocarbons, pushing its GCC market share in hydrocarbons to around 10 per cent and infrastructure to over 8 per cent by FY25.

 

Its order pipeline remains robust, with FY26 estimates nearing ₹19 trillion, two-thirds of which is tied to hydrocarbons.

 

Afcons bids on Dubai’s $22 billion sewerage project

Afcons Infrastructure is set to make a strategic leap with its bid for the $22 billion Dubai Sewerage Project. The project includes the construction of 75 kilometres of deep tunnels, 220 kilometres of link sewers, and two main treatment plants. Afcons, part of a joint venture, is in advanced talks with two of the three shortlisted BOT concessionaires. The company pre-qualified for the project in 2024 and has been tendering for key packages since early 2025.

 

If secured, Afcons’ share could be worth $2.5-3 billion—almost matching its current annual order intake.

 

Regional shifts aid Indian players

South Korean firms are scaling back due to past margin losses, while Chinese contractors are spread thin across smaller packages, the Investec report noted. Italian giant Saipem currently has the largest share of ongoing contracts, but L&T is the most active Indian player.

 

Over 50 Chinese firms have won orders in the region, though none rank in the top five individually.

 

Oil revenue fuels state spending

Elevated oil revenues remain the primary driver of state spending in West Asia. Over $235 billion worth of projects are currently under bid evaluation, with major upcoming projects including:

• Dubai Airport expansion ($35 billion): Infrastructure works and transport links
• Riyadh Airport ($20–30 billion): Development tenders in phases
• Rail and Metro projects: Active tenders in the UAE, Saudi Arabia, and Kuwait
• Power generation: Renewables and conventional energy with over 20 GW of capacity under planning or bidding

 

L&T continues to target transport and energy projects, while Afcons is expanding into urban and tunnel infrastructure. Other Indian firms like G R Infraprojects, KNR Constructions, and H.G. Infra are also exploring the region through pre-qualifications and potential joint ventures.