Al Mahhar keeps options open on expanding its manufacturing base for the energy sector

Bullish on Qatar’s macroeconomic prospects, Al Mahhar Holding is exploring options on expanding its manufacturing base for the energy sector over the medium term and aims to diversify into renewables.

“We are evaluating the feasibility of expanding into in-house manufacturing, assembly, and system integration for specific energy sector products and equipment in Qatar over the medium term,” said Al Mahhar Holding board report, tabled before shareholders at the recent annual general assembly meeting, which approved the 2024 results and dividend.

The report highlighted that its commitment to In-Country Value (ICV) is evident through the leadership as a low-voltage switchgear assembler and explosion proof devices manufacturer in Qatar.

“We aim to build on this expertise by expanding into higher voltage and control equipment solutions, continuously developing local capabilities in the energy and renewable sectors,” Al Mahhar Holding said.

It is also expanding capabilities in digital fields and system integration to further enhance its Qatari credentials, it said, adding additive manufacturing is emerging as a key area in the energy and renewables sectors.

“Al Mahhar Holding is positioning itself to capitalise on these advancements by investing in local capabilities in Qatar,” the report said. Seeking to diversify beyond traditional energy markets with a particular focus on renewables, electrification, and water conservation; it said through the adoption of world-class digital solutions, “we aim to improve efficiencies and enhance the competitiveness of our customers.”

Specifically, in the renewables sector, it is focusing on developing technologies and solutions to reduce emissions in Qatar, with plans to increase its market share. “Al Mahhar Holding is positioning itself to play a key role in this transition,” it added.

“Al Mahhar Holding Company is uniquely positioned to drive sustained growth in the energy industry, with plans to expand into future energy segments and solidify our footprint in the hydrocarbon downstream industries,” said Fahad Hussain Alfardan, its chairman, who presided over the meeting.

Highlighting that its goal is to offer a comprehensive range of products and services; the report said it plans to acquire additional agencies, grow customer base, and ensure high-quality service, including maintaining a stock of spare parts and providing staff training.

“In parallel with developing more in-house capabilities, we remain open to investing in new joint ventures and collaboration agreements to further local capabilities,” it said.

Expecting “significant” potential to expand its product and service offerings in Qatar’s energy sector, Al Mahhar Holding is exploring opportunities across the entire value chain, including upstream, midstream, and downstream.
“We believe QatarEnergy’s ongoing localisation programme (Tawteen) is a key catalyst for these opportunities,” it said. On the opportunities for 2025; it said diversification into renewables as solar, wind, and hydrogen can enhance their portfolios to meet changing market demands.

Innovations in carbon capture, energy efficiency, and alternative fuels offer growth opportunities for energy and infrastructure companies, it said, adding investments in new infrastructure projects, especially in emerging markets, will boost economic growth and create jobs. Meeting ESG or environment, social and governance criteria will attract investment and drive innovation in sustainable technologies, the report said.

In the infrastructure sector, Al Mahhar Holding is focused on enhancing profitability by improving efficiencies and restructuring processes.