US President Donald Trump has proposed a $5 billion fund to rebuild crucial energy infrastructure in the Middle East that sustained damage during the Iran war. The initiative sits alongside a $300 billion Iran reconstruction fund.
So far, the Trump administration has pitched American firms to lead the Gulf rebuild work, but this could be a bigger opportunity for major Engineering, Procurement, and Construction (EPC) firms.
EPC players like Larsen & Toubro (L&T), Kalpataru Projects International, KEC International, Afcons Infrastructure, and KEI Industries have significant exposure to the Gulf.
L&T derives 37% of its total order book from the Middle East, while 71% of its Rs 4.07 lakh crore international order book sits in the Gulf.
Kalpataru pivots most of its oil and gas (O&G) business to the region and can reap the benefits of this opportunity through its $100 to $500 million bids with Aramco, ADNOC, Kuwait, and Qatar on O&G deals.
West Asia is expected to drive KEC International Ltd.'s Rs 9,000 crore to 10,000 crore in fiscal 2027. The region makes up 25% of its total order book.
Similarly, the Gulf is KEI Industries Ltd.'s single-largest export market, and it is targeting a 17% to 18% export mix in the current fiscal.
Afcons Infrastructure Ltd.'s operational performance in the overseas market exceeds its domestic market performance, with margins higher by 200 to 300 basis points (bps). The Middle East is part of its 16% international revenue mix.
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