Indian Economy News

Indian giants Larsen & Toubro (L&T), Afcons win big in West Asia's Rs. 20,07,370 crore (US$ 235 billion) infra push

India’s leading engineering and construction companies, Larsen & Toubro (L&T) and Afcons Infrastructure, are becoming key players in West Asia’s infrastructure boom, securing billion-dollar contracts as project awards in the Gulf Cooperation Council (GCC) region surge to Rs. 20,07,370 crore (US$ 235 billion) in 2024—more than double the annual average from 2015 to 2022, according to UK brokerage Investec. L&T’s international business has more than doubled its overseas order inflows to over Rs. 2,00,000 crore (US$ 24.10 billion) in FY25 from around Rs. 90,000 crore (US$ 10.80 billion) in FY23. Saudi Arabia and the United Arab Emirates (UAE) accounted for over 60% of FY25 international orders. L&T has transitioned from a subcontractor to a long-term agreement contractor for Saudi Aramco, gaining access to large-scale offshore oil and gas projects, power transmission, infrastructure, and hydrocarbon operations. By FY25, it is expected to hold around 10% of the market share in hydrocarbons and over 8% in infrastructure within the GCC. The order pipeline remains strong, with FY26 estimates nearing Rs. 19,00,000 crore (approximately US$ 228.80 billion), two-thirds of which are tied to hydrocarbons.
Afcons Infrastructure is poised for a strategic leap with its bid for Dubai’s Rs. 1,87,924 crore (US$ 22 billion) sewerage project, which involves constructing 75 kilometres of deep tunnels, 220 kilometres of link sewers, and two main treatment plants. Part of a joint venture, Afcons is in advanced discussions with two of the three shortlisted Build-Operate-Transfer concessionaires, having pre-qualified in 2024 and tendered for key packages since early 2025. Its potential share could be worth Rs. 21,355–25,626 crore (US$ 2.5–3 billion), nearly matching its current annual order intake. Regional shifts favour Indian players, with South Korean firms scaling back and Chinese contractors spread thin across smaller packages. Elevated oil revenues drive state spending, with key projects including Dubai Airport expansion of Rs. 2,98,970 crore (US$ 35 billion), Riyadh Airport development of Rs. 1,70,840 – 2,56,260 crore (US$ 20–30 billion), rail and metro tenders across the UAE, Saudi Arabia, and Kuwait, and over 20 gigawatts (GW) of power generation capacity under planning or bidding. Other Indian firms, such as G R Infraprojects, KNR Constructions, and H.G. Infra, are also exploring opportunities in the region through pre-qualification and joint ventures.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.