C.A.T. Group

C.A.T. Group, an acronym for Contracting and Trading, is a pioneering Middle East engineering and contracting firm, renowned for its unwavering commitment to excellence. Hannah Barnett spoke to the KSA Area Managing Director Ricardos Najm to learn what makes this innovative company purr.

Like its feline namesake, C.A.T. Group is smart and agile, assisting clients through multiple construction and engineering-oriented skillsets across the world.

“Our distinct advantage lies in our blend of historical depth, commitment to progress, focus on sustainability, empowerment of our people and unwavering dedication to the success of our clients,” said Ricardos Najm, KSA Area Managing Director. “This comprehensive approach sets us apart, making us a trusted partner.”

A history of nine lives

Founded in 1937 by Emile Bustani, an MIT graduate in civil engineering, C.A.T. began with a modest yet significant project: installing a bathroom for the General Manager of the Iraq Petroleum Co. The task was financed by the sale of a gold ring gifted by Mr Bustani’s

mother, symbolising the dedication and sacrifice at the core of C.A.T. Group.

Initially, C.A.T. secured contracts with the British forces and several foreign oil companies, notably IPC. During this period, Shukri Shammas and Abdallah El Khoury , who had significant experience with IPC in contracting and trading respectively, laid the foundation for their future collaboration. This partnership, formalised in 1941, enhanced C.A.T. Group's capability to address diverse demands.

Over the decades, C.A.T. has contributed to the monumental growth of the energy industry and infrastructure in the Middle East, becoming synonymous with high-quality and timely project delivery. The company constantly ranks in the top 5 for pipeline construction in the ENR Global Sourcebook.

“One major milestone was the establishment of corporate governance in

C.A.T. GROUP I PROFILE

1994,” explained Mr Najm, “which was considered an avant-garde step for a family-owned business in the Middle East at the time.”

C.A.T. has now completed over 2,000 projects and installed over 25,000km of pipeline. The company boasts 18,000 employees and over 4,700 pieces of equipment and machinery, spread across the Middle East and West Africa. Annual turnover is around $800 million. “However, we focus on outcome and not on volume; we are very selective of clients and projects,” Mr Najm added. Indeed, the company has been involved in many impressive large-scale projects, including the Master Gas System Phase II for Saudi Aramco. Locations were scattered over a wide geographical area, meaning covering long distances to supply construction and support materials for a $75 million – $250 million project.

Serving the energy transition

Energy is at the core of C.A.T. Group, and the company is supporting the energy transition in several ways. For instance, C.A.T. has increasingly

focused on the gas subsector, especially on the midstream and light processing side, as well as the development of green hydrogen.

C.A.T. is actively supporting clients in carbon capture and sequestration too, typically via pipelines transporting captured CO2 to injection sites.

“We are trying to find feasible solutions on the capture side,” Mr Najm explained. “By aiding clients find economical technologies for carbon capture, we contribute to the energy transition and the push for decarbonisation.”

Clearly, C.A.T. will play a large role in the future energy mix, whatever direction the industry takes.

“The transition to new energy sources is not always obvious because of the lack of econometric drivers, while the technologies and regulations still need to develop,” Mr Najm

explained. “The solar PV sector is a good example of how accelerated growth occurred as the technology matured, making it cheaper to produce power from solar compared to conventional plants.

“The industry has been disrupted with new opportunities such as distributed production, virtual plants, microgrid management and power wheeling. We are prepared for the next big thing in the energy industry.”

Sustainable operations

The recent establishment of an official C.A.T. sustainability department underlines the company’s commitment to leading the way in sustainable business practices.

“Our approach to sustainability is rooted in the belief that building a resilient and responsible business is essential for

enduring success,” said Mr Najm. “From the very beginning, our mission has been a vision of lasting impact. This philosophy has driven us to implement sustainable practices that not only enhance our operational efficiency and reduce our environmental footprint, but also solidify our foundation for a future where our business continues to thrive.”

The department has developed a comprehensive strategy that aligns with the company’s vision of being a sustainable contractor of choice, setting ambitious targets that reflect a dedication to environmental stewardship and social responsibility.

“At the core of the department is the environmental aspect; over a decade ago, there wasn’t that focus,” said Mr Najm. “Now, we are measuring the company’s carbon footprint which is the first step towards improving it. If we can’t measure it, then we can’t improve it.”

Carbon footprint has already been reduced at C.A.T. by incorporating hybrid vehicles into the company fleet, embracing renewable energy sources to power operations and conserving water through advanced treatment technologies.

Working relationships

It is clear that C.A.T. Group’s dedication to sustainability and green initiatives reflects a deep-seated commitment to the future. This means that as well as reducing its environmental impact, the company also fosters a culture of responsibility and innovation within its team. C.A.T. is therefore always striving to empower its workforce and was the first company in the Middle East region to have a female team member receive prestigious industry certification.

C.A.T. also promotes a client-centric approach, ensuring that the unique needs of each project are met by delivering tailored solutions. A reputation for reliability and quality, combined with the ability to consistently complete challenging projects ahead of schedule, solidifies the com pany’s position as a preferred contractor.

“As we look at our clients and their willingness to pay for our services, balancing the value captured between ourselves and our suppliers is key,” said Mr Najm. “We emphasise fairness, which relies on a deep understanding of the supply chain and the market’s dynamics.

“Suppliers end up wanting to work with C.A.T. Group. They don’t see us as a risky client and, as such, we get better payment terms with them. This takes years of nurturing and a centralised procurement network, whereby we keep track of the performance of our suppliers and their workloads. This helps us chose the most suitable suppliers for our projects and our clients.”

It is clear that whether working with suppliers, clients or its own staff, C.A.T. is guided by the uniting force of its company values, reflected by its family-owned status.

“Family values are deeply rooted in the company and its culture,” Mr Najm concluded. “We are here to stay, and our existence depends on the strong relationships we have formed with our clients, employees and communities.

“The nature of our work is very demanding and stressful. Many of us work in remote locations for long hours, away from our home countries and families. However, the reward comes when we see a project completed and realise that we have contributed to a country’s vision and growth. We want everyone that works for us to reach home safely, so we stress on having safety encrypted in the DNA of every C.A.T. person.” n