Depa Secures $96 Million Contracts in Saudi Arabia

PC: SaudiGulf Projects

Dubai-Based Fit-Out Company Expands Presence in Saudi Market

Depa – the Dubai-based interior fit-out company – Monday announced two major contracts worth 360 million riyals ($96 million) in Saudi Arabia, highlighting for the company its continued expansion in the Kingdom.

The new contracts won by Depa’s principal business unit Depa Interiors will be intended for the fit-out works of two major landmark projects within Saudi Arabia, yet the company has decided to stay mum over further information relating to the nature of the said projects.

This not only strengthens Depa’s presence in the Saudi market but also cements its position as one of the leading fit-out contractors in the region.

Previous Saudi Wins

This latest contract announcement comes after Depa secured another major deal back in July. The company, through its Depa Interiors unit, was awarded a contract worth SAR 140 million for fit-out work on a luxury boutique hotel located at Triple Bay in Amaala, Saudi Arabia. Amaala is part of Saudi Arabia’s ambitious Red Sea tourism project and will be focused on luxury and wellness.

Strong Financial Turnaround

With Depa announcing two major contracts, its latest successes, the company’s excellent financial recovery is likely to continue for the rest of this year. After going through tough times, Depa saw a remarkable turn in the first six months of this year as the company reported a net income of Dh46.3 million compared to a net loss of Dh49.7 million for the same period last year.

This mark-to-mark change in financial performance is indeed a true reflection of how effective Depa’s current strategy has been. Its focused approach, particularly at targeting and securing some prestigious contracts in highly profitable markets such as Saudi Arabia, has started to pay dividends. It would appear that their labors in these high-value sectors are now beginning to bear fruit and become the key driver for this trend change and indicative of long-term success.

Conclusion and Outlook

With Saudi Arabia continuing to invest heavily in landmark developments and luxury projects, Depa, along with other companies, would be in a position to benefit from Saudi Arabia’s efforts at transforming its economy in an effort to eventually diversify sources of income away from oil. Securing such contracts further underlines the opportunities available in the rapidly growing construction and development sectors within the Kingdom.

These latest achievements further seal the company’s position as a key player in the region, with a strong outlook for continued growth and profitability, while taking on more projects in Saudi Arabia and the wider Gulf region.