NMDC Boosts Profits by 20% in First Half, Earnings Hit AED 1.8 Billion

NMDC Group Defies Market Headwinds with 20% Profit Surge in First Half 2025

Abu Dhabi-based NMDC Group has emerged as a standout performer in the Middle East's infrastructure sector, posting a robust 20% increase in net profits to AED 1.8 billion during the first half of 2025. The conglomerate's strong financial results, driven by expanding regional operations and a massive AED 100 billion pipeline of potential projects, signal the growing momentum behind the Gulf's infrastructure development boom despite broader market uncertainties.

Financial Performance Highlights Operational Excellence

NMDC Group's first-half revenues climbed 10% year-on-year to AED 13.4 billion, but the real story lies in the company's improving profit margins. The 20% jump in net profits significantly outpaced revenue growth, indicating enhanced operational efficiency and cost management discipline—a critical factor as construction companies worldwide grapple with inflationary pressures on materials and labor.

The second quarter alone saw revenues reach AED 7.1 billion, up 5% annually, while quarterly net profits of AED 971 million represented an 18% year-on-year increase. This consistent margin expansion suggests NMDC has successfully navigated the cost inflation that has squeezed many infrastructure players globally.

Massive Project Pipeline Signals Long-Term Growth

Perhaps more telling than current financials is NMDC's project visibility. The group maintains AED 66.2 billion worth of projects under execution, with AED 15.1 billion in new awards secured by the end of Q2. Most significantly, the company is actively bidding on projects worth approximately AED 100 billion—a pipeline that could sustain growth for years to come.

This project momentum reflects the broader infrastructure investment wave across the Middle East and North Africa region, where governments are diversifying economies away from oil dependence while preparing for events like Saudi Arabia's NEOM project and ongoing Expo legacy developments in the UAE.

Strategic Expansion Through Acquisitions and Partnerships

NMDC's growth strategy extends beyond organic expansion. During Q2 2025, the group's logistics and technical services unit completed a 70% acquisition of UAE-based Imdad, a specialized oilfield services provider. This move diversifies NMDC's portfolio deeper into the energy services sector, positioning it to benefit from both traditional oil operations and the region's emerging energy transition projects.

The timing appears strategic—as Gulf states balance continued oil revenue optimization with renewable energy investments, companies offering integrated services across both sectors gain competitive advantages.

Industrial Localization Strategy Gains Traction

At the "Made in UAE 2025" forum, NMDC signed five strategic agreements aimed at expanding domestic manufacturing capabilities and supporting regional infrastructure growth. This aligns with the UAE's broader industrial localization strategy, similar to Saudi Arabia's SAMI program and other Gulf initiatives to build domestic industrial capacity.

For investors, this represents a shift from pure contracting toward higher-margin manufacturing and integrated solutions—a model that has proven successful for industrial conglomerates in South Korea and Germany.

Market Implications and Regional Context

NMDC's performance comes as regional infrastructure spending accelerates across multiple fronts. The UAE continues major projects like the Dubai 2040 Urban Master Plan, while Saudi Arabia's Vision 2030 megaprojects create spillover opportunities for UAE-based contractors with regional expertise.

The company's ability to maintain growth amid "market challenges"—as management diplomatically described current conditions—suggests strong competitive positioning. Unlike pure-play construction companies, NMDC's integrated model spanning engineering, procurement, construction, and now expanded services provides more stable revenue streams.

Chairman Mohamed Thani Al Rumaithi emphasized the group's role in supporting UAE's industrial development strategy through "innovation and industrial integration," while CEO Yasser Zaghloul highlighted the company's technical capabilities and accelerated localization efforts.

For the broader market, NMDC's results indicate that well-positioned infrastructure players with diversified portfolios and regional scale can thrive even as global construction markets face headwinds. The company's success may signal a maturing phase for Gulf infrastructure development, where execution expertise and integrated capabilities matter more than pure project scale.