Public Contracts : Jackpot for Moroccan Leaders

Moroccan construction giants are among the big winners of the government’s ambitious investment program in infrastructure by 2030. Benefiting from the national preference clause and a strategy of vertical integration and diversification of their activities, these groups are winning big in the most important public tenders launched by the authorities in recent months.

Big novelty: these Moroccan groups now often bid alone, in a «Tout Corps d’État» (TCE) mode, with the formation of consortia with foreign partners becoming the exception rather than the rule.

Leading companies in the construction sector, such as SGTM, SGTM, and Jet Contractors, have largely managed to stand out in this public investment race, which is distinguished by the magnitude of the amounts committed. For example, for football stadium construction or renovation projects, which mobilize a public budget of 9.5 billion dirhams, it’s almost a perfect strike for the trio of companies.

Order books have also been significantly replenished in recent months, with an increasingly predominant share of public contracts. Thus, for a company like Jet Contractors, the share of orders from public entities increased from 62% in the first half of 2023 to 72% in the first half of 2024 (part of these orders are executed internationally).

Overall, major public clients are increasingly trusting these large Moroccan groups. It must be said that the development of their ability to respond to different tenders in single lots provides several advantages to the project owners: a single point of contact, better coordination of work, control of the entire production chain and deadlines…

While several major contracts have already been awarded to them, and other tenders are underway for ancillary projects related to the organization of upcoming sports competitions that Morocco is preparing to host, the main national players in the construction sector are rubbing their hands more than ever.

SGTM is on… all fronts

This is the case for the «Société Générale des Travaux du Maroc» (SGTM) (the General Company of Works of Morocco ), a historical leader in the sector, with an impressive catalog of major projects to its credit (Safi port, Marrakech Grand Stadium, National Library, Cheikh Zayed Hospital in Rabat, Moulay El Hassan Bridge, Rabat bus station, etc.)

The Kebbaj family group, founded in 1971, is at the forefront to fully benefit from this favorable situation, as evidenced by the major contracts it has managed to secure recently. In terms of stadiums, the group was awarded, in August 2024, by the National Agency for Public Equipment, the contract for the general earthworks of the Grand Stade Hassan II in Benslimane for 356 million dirhams.

The group, which increased its stake to 100% in the cement company Novacim (1.4 million tons of cement per year) last October, also secured the contract for the Prince Moulay Abdellah Stadium in Rabat for an estimated amount of 400 MDH and that of the athletics stadium in the capital for an amount of 544 MDH.

SGTM, which is already contributing to the construction of the mega-project of the Port Dakhla-Atlantique, in tandem with Somagec, and the strategic project of the «Autoroute de l’eau» in consortium with Somagec, STAM, and SNCE, has also successfully positioned itself in the highly lucrative market of high-speed rail line civil engineering between Kénitra and Marrakech. In December 2024, the group was awarded by the ONCF the execution of earthworks and civil engineering works in the Bouregreg valley for more than 2 billion dirhams.

On the transport infrastructure side, SGTM secured the contract for the construction of the viaduct over Oued Sakia El Hamra, the largest in the country, for 1.38 billion dirhams, as part of the Tiznit-Dakhla expressway. The Kebbaj group also secured the contract for the construction of the future Hay Riad station in June 2024 for 187 MDH, as well as the tunnel of the LVG planned in Rabat, in tandem with the Chinese Sinohydro for 1.4 billion dirhams.

TGCC : Verticalization and Diversification

TGCC is another major player in the Moroccan construction sector that has significantly expanded its order book thanks to recent state tenders. Strongly present in healthcare, education, and hospitality, the listed group has notably secured several contracts for the construction or upgrading of football stadiums.

The group, founded and led by Mohammed Bouzoubaâ, indeed won, in November 2024, the contract for the construction of the Al Barid Stadium in Rabat for nearly 700 million dirhams. According to several sources, TGCC also won contracts for the major stadiums in Agadir and Fez, as well as a significant part of the renovation of the Marrakech stadium.

In a duel with its competitor SGTM, TGCC is also eyeing the construction market for the Grand Stadium of Benslimane, which is expected to be awarded soon.

In terms of transport infrastructure, TGCC also got its share of the high-speed rail line Kénitra-Marrakech civil engineering market, securing a lot of earthworks and civil engineering works for over 2.8 billion dirhams.

In fact, the group is reaping the benefits of a profitable verticalization and diversification strategy. The vertical integration strategy is being implemented through the creation of specialized subsidiaries in various construction trades, such as coating, layout, carpentry, or concrete production.

The goal is to become a comprehensive company integrating the main expertise, which gives it greater control over the value chain and, consequently, better competitiveness in responding to tenders.

In terms of diversification, TGCC wishes to significantly develop its presence in the public works market, particularly in dams, ports, and civil engineering works.

The recent announcement of an agreement to acquire 60% of the capital of the STAM group, a major player in public works particularly active in dam construction, and which also owns VIAS, the national leader in road works, follows this logic.

Jet Contractors : From Facades to Comprehensive Services

Initially specialized in building envelopes and structures, the Jet Contractors group has also gradually transformed into an integrated group with several specialized subsidiaries, capable of managing turnkey projects in comprehensive services.

This integration allows the group not only to position itself on major projects but also to better manage risk in a context of strong competition.

Jet Contractors’ ability to participate in major tenders comes from its ability to intervene in all construction trades: design, structural work, specialized structure and carpentry, second work (carpentry, wood, metal, aluminum, ironwork, partitions, locksmithing…).

This integrated offer has enabled the Casablanca Stock Exchange-listed group to secure markets like the Oujda station, the Rabat-Ville station, or the Central School of Casablanca, won thanks to the proposal of an integrated offer.

In recent months, the group has been able to access even more important public contracts. It notably won a lot worth 2 billion dirhams in the framework of the high-speed rail line civil engineering market. In terms of sports infrastructure, Jet Contractors secured, in December 2024, the contract for the future multi-purpose hall planned in the Bouregreg valley in Rabat, for 260 million dirhams, as well as the external development of the Mohammed V Stadium in Casablanca, for 69 million dirhams.

The group also secured, last October, its first contract in dams, winning the contract for the completion of the reconstruction of the Sakia Al Hamra dam in Laâyoune, for 256 million dirhams.