KUALA LUMPUR (March 10): MGB Bhd's subsidiary, MGB International for Industry (MGBI), has secured two orders worth RM88.57 million from Saudi Arabia's Sany Alameriah Industrial to supply and install precast elements for the Roshn Alarous development in Jeddah.

Roshn is a national real estate entity in the Kingdom of Saudi Arabia, backed by the sovereign Public Investment Fund which has assets under management exceeding US$700 billion (RM3.09 trillion).   

According to a filing with Bursa Malaysia, the orders are part of a joint venture agreement signed between MBGI and Sany Alameriah Industrial on July 27, 2023 for the supply and installation contracts of a total aggregate minimum amount of 270,000 cubic metres (cu m) of precast concrete products over a three-year period.

These latest orders are headed for Phase 1 of the Al Arous single-family residential units, specifically Zones B and C, as well as public amenities within the Roshn Alarous development.   

The supply and installation orders are to be completed within 14 months and involve about 42,000 cu m of precast concrete products, which translates to the equivalent of 326 residential units. 

The Roshn Alarous development, nicknamed “The Bride of the Red Sea”, will offer more than 2,200 single family units, as well as pedestrian-friendly streets and neighbourhoods, green spaces alongside retail, sports and other recreational amenities.

In a separate statement, MGB said MGBI has also recently received two separate orders to manufacture hollow core slabs for two other projects within the surrounding areas of Jeddah. 

The first order, totalling 6,817 square metres, is for the Mayan project which is worth RM609,130. Meanwhile, the second order is for the Sapac project worth RM139,762.  

Looking ahead, MGB anticipates securing further orders for its precast concrete products for year 2025, reflecting the strong market demand and its growing presence in Saudi Arabia.  

Established in 2007, MGB has evolved into a construction and property development solutions provider, primarily focusing on providing efficient and cost-effective solutions across a wide range of industries, in particular building mass market and affordable living spaces for generational living in Malaysia.  

MGB shares closed one sen or 1.6% higher at 62 sen, valuing the group at RM367 million. Year-to-date the stock is down 16.22%.