Emerging Middle Eastern Industrial Equities: Undervalued Infrastructure Plays with Government-Backed Tailwinds

The Middle East is undergoing a seismic shift in its economic and industrial landscape, driven by $3 trillion in active infrastructure projects across the GCC and Saudi Arabia's $1.3 trillion allocation aloneTop 12 Middle East Mega Projects Reshaping...^[1]. As governments pivot toward Vision 2030 and similar diversification strategies, industrial equities with deep government ties and exposure to construction booms are emerging as compelling long-term investments. Among these, National Cement Company (NCC), NMDC Energy, and UCC Holding stand out for their EBITDA resilience, strategic positioning, and alignment with regional megaprojects.

National Cement Company: A Pillar of Stability in a High-Growth Sector

National Cement Company (DFM:NCC), a UAE government-linked entity, exemplifies the region's industrial resilience. In Q2 2025, the company reported revenue of AED 500 million and EBITDA of AED 150 million, reflecting a 4.17% sequential revenue increase and 4.35% rise in net incomeNational Cement Company Approves Q2 Financials^[6]. These figures underscore NCC's ability to maintain profitability amid volatile market conditions.

NCC's dominance in cement production positions it as a critical supplier for megaprojects like Etihad Rail and the Red Sea Project. With the Middle East & Africa infrastructure construction market projected to grow at a 5.51% CAGR through 2030Middle East & Africa Infrastructure Construction Market Size and Share^[2], NCC's government-backed stability and essential role in construction value chains make it a defensive play in a high-growth sector.

NMDC Energy: Scaling EBITDA Resilience Through Diversified Projects

NMDC Energy, a leading EPC contractor, has demonstrated exceptional financial agility. In Q1 2025, the company's net profit surged 25% year-on-year to AED217 million, while revenues jumped 75% to AED3.7 billionNMDC Energy continues growth momentum into 2025 with robust Q1 financial results^[3]. This performance was fueled by a AED56.3 billion project backlog and new contracts like the Lower Zakum LTDP-1 offshore development for ADNOC.

NMDC's expansion into decarbonization initiatives—such as offshore wind and green hydrogen—positions it to capitalize on Saudi Arabia's NEOM and the UAE's Net Zero 2050 goals. Its inclusion in the MSCI small-cap index in February 2025 further highlights its appeal to passive investorsNMDC Energy continues growth momentum into 2025 with robust Q1 financial results^[3].

UCC Holding: A Hidden Gem in Government-Linked Infrastructure

UCC Holding, a Qatari conglomerate, operates in energy, construction, and concessions with a focus on high-impact projects. While direct EBITDA figures for 2025 remain undisclosed, industry benchmarks suggest its valuation could align with energy-sector EBITDA multiples of 5.1x–6.8xEBITDA Multiples by Industry & Company Size: 2025^[5].

The company's $7 billion Syria Power Revival Initiative—a consortium-led effort to build 4,000 MW of gas turbine plants and a 1,000 MW solar facility—exemplifies its strategic alignment with government prioritiesSyria signs $7 billion power deal with Qatar's UCC Holding-led consortium^[4]. Additionally, UCC's involvement in Saudi Arabia's Qiddiya and Diriyah projects, as well as its 3D-printed schools and LEED-certified developments, highlights its innovation-driven approachTop 12 Middle East Mega Projects Reshaping...^[1].

Strategic Rationale for Investors

The Middle East's infrastructure boom is underpinned by three tailwinds:
1. Government Funding: Projects like NEOM and the Duqm Refinery Expansion are backed by sovereign wealth funds and tax incentivesTop 12 Middle East Mega Projects Reshaping...^[1].
2. Sustainability Shifts: Decarbonization initiatives are creating demand for EPC contractors with green expertiseNMDC Energy continues growth momentum into 2025 with robust Q1 financial results^[3].
3. Global Capital Flows: Sukuk markets and 100% foreign ownership policies are attracting international investorsTop 12 Middle East Mega Projects Reshaping...^[1].

For investors, NCC offers defensive growth, NMDC Energy provides scalable EBITDA resilience, and UCC Holding represents a high-conviction play on government-linked innovation. Together, they encapsulate the Middle East's transition from oil dependence to diversified industrial powerhouses.