Strategy for the Federation of Contractors in Islamic 2035 CountriesFrom Cooperation to Integration and Creating Opportunities (3/4)

Editor's Introduction

By: Eng. Fisal Musa

In continuation of our series on developing the contracting sector in the Islamic world, we present the third article of the strategic vision prepared by Dr. Eng. Malek Ali Dongola.

This article moves from theoretical recommendations to a practical institutional framework, proposing the "2035 Strategy for the Federation of Contractors in Islamic Countries" as a long-term roadmap to link contracting companies with investment opportunities, financing, technology, and training.

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By: Dr. Eng. Malek Ali Dongola

We discussed in the previous two articles the importance of sustainable construction in developing countries, then we moved to reviewing a number of recommendations and strategic plans that can help contracting companies in the member states of the Federation of Contractors in Islamic Countries to enhance their competitiveness and keep pace with global transformations in the construction industry.

But the most important question remains: How do we transform this vision into an institutional work program that can be implemented?.

The scale of economic and technological transformations that the world is witnessing, alongside the increasing needs for infrastructure, housing, energy, water and transportation in our countries, makes the coming years an exceptional opportunity to reformulate the role of the contracting sector.

Hence, one can think of launching the "2035 Strategy for the Federation of Contractors in Islamic Countries" to be a long-term framework linking contracting companies with investment opportunities, financing, technology, training and markets.

The goal is not to create more administrative structures, but to build a practical system that makes the Federation a real platform for economic cooperation among contracting companies in the member states, and for the contracting sector to be a practical model for what can be achieved in terms of broader economic integration among the member states of the Organization of Islamic Cooperation.

Vision 2035

The proposed vision can be summarized as building an integrated system for contracting in Islamic countries, capable of competing regionally and globally, contributing to achieving sustainable development and developing infrastructure and enhancing economic integration among member states. To achieve this vision, the Federation's strategy until 2035 can be based on several interconnected strategic axes:

First Axis: A More Integrated Market for Contracting

The first step is to enhance the ability of companies from member states to work across borders. In many cases, companies have the experience and technical capability, but face difficulty in knowing the available opportunities or understanding legislation and registration, qualification and tendering procedures in other markets.

Hence, the Federation can gradually work on developing the concept of the "Integrated Market for Contracting". This does not mean unifying legislation between countries, which requires extensive government arrangements, but rather starting with practical steps that include exchanging information about systems and classifications, facilitating identification of local partners, providing data on projects, qualification requirements, contracting systems, encouraging mutual recognition of company experiences and classifications whenever possible, and political and economic risks, in addition to organizing trade missions and meetings between companies, investors and project owners. The Federation can also prepare a list of companies with specialized capabilities and experiences in areas such as roads, bridges, railways, ports, energy, water and smart cities, allowing the formation of alliances capable of competing in major projects outside member states.

The ultimate goal is to make the movement of contracting companies between the markets of member states easier and clearer, and to build a collective capacity for Islamic contracting companies to compete in international markets, especially in Africa, Asia, Europe and emerging markets.

Second Axis: A Unified Digital Platform for Projects and Companies

In the modern economy, information precedes investment, therefore one of the main initiatives of the strategy could be the creation of a unified digital platform for the Federation of Contractors in Islamic Countries that includes a database of member companies, their specializations and experiences, along with projects, tenders and expected investment opportunities in different countries.

It can also provide basic information about investment, contracting and tax laws and procedures for registering companies and tender requirements in each country, and in more advanced stages, artificial intelligence technologies can be used to match companies with suitable opportunities, or suggest potential partners to form alliances to implement projects.

Thus the platform transforms from a database into a specialized electronic market for the contracting industry and investment opportunities.

Third Axis: Alliances of Contractors in Islamic Countries

Major projects, especially infrastructure, energy, transportation and new cities projects, have come to need financial and technical capabilities that are sometimes difficult to provide within a single company.

Therefore, one of the goals of the 2035 strategy should be to encourage the emergence of strong alliances between contracting companies in member states. The future in the contracting industry will not always be for the largest company, but for the alliance most capable of gathering expertise, financing and technology.

When a large project for railways, ports, airports, or water and energy stations is offered, there should be a mechanism that helps specialized companies from several countries to get acquainted and form an alliance capable of competing.

There is a company that has engineering expertise, another that has local experience, a third that has technology, and a fourth that has the ability to manage large projects; together they can turn into a strong competitive entity.

Fourth Axis: Project Financing and Guarantee Mechanisms

One of the biggest obstacles to the external expansion of contracting companies is the issue of financing and guarantees, therefore a strategic dialogue should be opened with financing, development institutions, banks and Islamic financial institutions to study the development of a mechanism for financing and guaranteeing contracting projects implemented by companies from member states.

It does not necessarily have to start with creating a huge financial fund; the beginning may be through agreements and partnerships with existing financial institutions. This mechanism can help finance feasibility studies, guarantee exports and engineering services, provide letters of guarantee, support sustainable projects and encourage partnership between the public and private sectors.

Engineering expertise without financing may not reach the project, and financing without qualified companies will not create real development.

Fifth Axis: Sustainability and Green Transition

By 2035, sustainability standards, energy efficiency and emission reduction will have more influence on competition for projects, especially international projects funded by development institutions, therefore our companies should not look at sustainability as an additional requirement, but as a future competitive advantage.

The Federation can launch a program entitled "Sustainable Contractor", which includes indicative standards, training programs and incentives for companies that achieve progress in energy and water efficiency, waste management, use of local and recycled materials, and emission reduction. It is also possible to consider establishing an annual sustainability index in the contracting sector in member states, which helps spread best practices and encourage positive competition.

Sixth Axis: Academy of Contractors and Digital Transformation

The most important assets of the contracting industry are not equipment or machinery, but people and expertise.

For this reason, an Academy of the Federation of Contractors in Islamic Countries can be established in cooperation with universities, institutes, training centers and national federations, and the Academy works through face-to-face training and electronic platforms, so that its programs become available to engineers, project managers and workers in various countries, and training areas include project and contract management, Building Information Modeling BIM, artificial intelligence, risk management, sustainability, occupational safety, cost management, and dispute resolution. A program for exchanging engineers and experts between companies can also be launched, so that knowledge and expertise transfer between countries in an institutional manner.

Seventh Axis: Market Studies and Information Center

Any successful strategy must be based on data, and hence a center for contracting market studies and markets can be established to follow up on the volume of projects, economic trends, building material prices, regulatory changes, investment opportunities and risks in member states, and the Center issues an annual report entitled: "Contracting and Infrastructure Sector Report in Islamic Countries", and this report, over time, can become a reference for companies, investors, governments and financing institutions interested in the markets of member states.

Eighth Axis: Localizing the Industry of Building Materials and Equipment

The construction industry cannot be developed sustainably without a strong base of building materials, equipment and related services industries, and hence the Federation can work to enhance cooperation between contracting companies and manufacturers and suppliers in member states, and encourage the establishment of partnerships to produce building materials and equipment that many countries import from outside the region. A database of manufacturers, suppliers and service providers can also be created, helping contracting companies to access more diverse and competitive sources of materials and equipment, and encouraging an increase in the local and Islamic component in projects.

Ninth Axis: Governance and Legislation

The success of economic cooperation between contracting companies in member states needs a clearer and more trustworthy environment, especially with regard to contracts, qualification, registration, taxes, labor and dispute settlement, therefore the Federation can create a specialized program to monitor legislation and regulations governing the contracting sector in member states, and prepare guidance manuals that help companies understand the requirements of working in different markets. It is also possible to prepare indicative models for contracts and professional practices in cooperation with national federations and specialized legal entities, benefiting from the best international experiences.

Tenth Axis: Establishing a Dispute Settlement Mechanism

Mechanisms or specialized centers for arbitration and for assistance in mediation and settlement of commercial disputes between member companies must be created and developed, providing a faster and less costly means of resolving disputes before resorting to judicial procedures or international arbitration, in order to create greater clarity, confidence and contractual security for companies wishing to work outside their local markets.

Eleventh Axis: Risk, Crisis and Supply Chain Management

The contracting industry focuses heavily on risk forecasting, specifically fluctuations in material prices, inflation, and geopolitical disturbances, so a "Supply Chain Early Warning Network" must be created to predict shortages of basic materials or price increases in member states, and to develop tools for exchanging surplus building materials and equipment between projects in different countries to reduce waste and costs.

Twelfth Axis: Reconstruction and Rapid Intervention

Many Islamic member states are going through challenges and destruction of infrastructure due to natural disasters and wars or internal armed conflicts, so it is possible to launch an "Islamic Reconstruction Initiative" to prepare alliances ready to intervene immediately after disasters occur, and immediately after stability in countries that have suffered from wars and conflicts.

Thirteenth Axis: Community Responsibility

Launching a community participation program to ensure employment and transfer of expertise to local workers and engineers in the project-owning state, and obligating and encouraging companies to benefit the communities surrounding project sites and develop remote areas.

Road Map: From 2027 to 2035

So that the strategy does not remain just a vision, it can be implemented in three stages:

First Stage: 2027–2029 — Building the Institutional Infrastructure

This stage focuses on creating a database of companies, launching the digital platform, preparing a map of opportunities and projects, starting training programs, and signing cooperation agreements with financial and development institutions. During it, a limited number of initiatives and model projects that can show tangible results are also selected.

Second Stage: 2030–2032 — Building Alliances and Expansion

The focus is on forming alliances between companies of member states, increasing joint projects, developing financing and guarantee programs, and expanding training, digital transformation and sustainability programs. An annual forum for infrastructure projects and investment can also be organized that brings together contracting companies with governments, developers, banks and financing institutions.

Third Stage: 2033–2035 — Competition and International Integration

In this stage, the goal is for companies and alliances of member states to move to a greater level of international competition. If we succeed in building databases, qualifying companies, developing alliances, and improving access to financing, our companies will be in a better position to compete for projects inside and outside our countries. Here the Federation transforms from an institution linking contractors to each other into a platform for exporting expertise, contracting and engineering, and one of the executive partners in the project of economic integration among Islamic countries.

How Do We Measure Success?

Clear performance indicators must be defined and measured annually, such as the number of companies registered on the platform, the number of opportunities and projects traded, the number of alliances established between companies of member states, the value of joint contracts, the number of engineers and workers trained, the volume of financing provided for projects, and the percentage of companies applying sustainability and digital transformation standards.

An annual report can also be issued to measure the progress of the 2035 strategy, showing what has been achieved, the challenges that have emerged, and the objectives required for the following year.

The Strategy is the Beginning, Not the End

The contracting sector differs from many other sectors, in that it is linked to almost all aspects of development: housing, transportation, energy, water, industry, tourism, health, education, cities and infrastructure.

And when contracting companies move between countries, design and consulting companies, building materials factories, equipment, financial services, technology, and specialized labor move with them, and for this reason contracting can be one of the practical gateways to achieving economic integration among our countries.

Hence, the 2035 strategy for the Federation of Contractors should not be the end of the vision, but its beginning.

If we can build within the contracting sector a successful model based on linking companies with projects, financing, expertise and markets, then this model can be part of a larger economic vision for the Organization of Islamic Cooperation, linking various economic sectors, institutions and the private sector in one system.

And this calls for raising the next question:

Can the experience of integration in the contracting sector turn into a broader model for activating the economic power of the fifty-seven member states of the Organization of Islamic Cooperation?..

This is the subject of the next article.