Site Group progresses Saudi growth prospects

Site Group International (ASX: SIT) is moving full steam ahead with their Saudi Arabian regrowth plan, after signing new training agreements between their Maharat Construction Training Centre (MCTC) and seven contracting companies. The MCTC has experienced 100% year on year growth to March, and the company has recently reaffirmed its revenue guidance of ~$31 million in 2025.

Site Group International (ASX: SIT) is moving full steam ahead with their Saudi Arabian regrowth plan, after signing new training agreements between their Maharat Construction Training Centre (MCTC) and seven contracting companies. The MCTC has experienced 100% year on year growth to March, and the company has recently reaffirmed its revenue guidance of ~$31 million in 2025.

The agreements mean that 200 new students will begin studying an Associate Diploma of Construction Safety. On top of this, Site’s MCTC scaffolding program is ready to launch, and the company has received interest from customers that indicate the need for 3,000 trained scaffolders.  

The burgeoning US$1 trillion Saudi economy provides a significant growth opportunity for Site, recording an estimated real GDP growth of 8.7% and a budget surplus of US$27.68 billion in 2022. The Kingdom of Saudi Arabia (KSA) government’s ‘Vision 2030’ initiative aims to build a thriving and diversified economy, decrease unemployment rates and increase the participation of women in the workforce.

Prior to the pandemic, the company’s operations in the KSA grew over 50% from FY18-19. This level of pace has picked up again, with Site’s KSA revenue growing over 100% from FY21-22. According to their forecasts, Site’s operations in the KSA have them on track to achieve revenue of over $25 million in 2025 when their current facilities hit capacity. This forecast does not include the opening of more training facilities in KSA, capacity increases for existing sites or further opportunities in the wider region such as Bahrain.

Mohammed Akbery, CEO of Site MENA, said, “We are proud to support the Maharat Construction Training Centre in their efforts to develop a skilled workforce for the construction industry in the Kingdom of Saudi Arabia. The Diploma of Construction Safety program,  developed by Site, demonstrates our commitment to providing high-quality, industry-relevant training that meets the needs of both employers and employees in the region.”

Site has demonstrated their ability to deliver programs that are relevant to the infrastructure project in the region. As the the demand for qualified construction personnel increases, Site will continue to respond by expanding its training portfolio and fostering strong relationships with industry partners like Saudi Aramco, to ensure a steady supply of trained and competent professionals in the construction sector.

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