Spotlight
The Arab Contractors
Information last updated on 18 February 2021
ABOUT THE FOUNDER
Osman Ahmed Osman was born on April 6, 1917,[9] in Ismailia, Egypt. His father, an itinerant merchant,[10] passed away when Osman was only three years old, and the family fell into poverty.[11] In 1940, Osman graduated with a bachelor’s degree in civil engineering from Cairo University[12] after he was awarded a scholarship.[13] Osman grew up under British occupation,[14] and from a young age he detested the discrimination Egyptian businessmen endured, fueling his determination to succeed as a businessman.[15]
FOUNDING STORY
Two years after graduating,[16] Osman returned to his hometown to establish the Civil Engineering Company.[17] He had accumulated a modest start-up fund — 180 Egyptian pounds — to build a small office.[18] In the mornings, he would walk around downtown Ismailia to introduce his business and build a network of clients that he would later describe as his “most powerful capital.”[19] Lacking sufficient capital for construction equipment, he at first took on small jobs such as architectural sketching and home restoration.[20]
In 1946, Osman undertook his first real construction project — building a private villa.[21] In 1954, he registered for a commercial license. He was now steering medium-sized projects, but further growth was not possible due to British and other foreign contractors’ stranglehold over large-scale construction in Egypt. He decided to temporarily depart and pursue his career in Saudi Arabia.[22]
GROWTH PHASE
Osman’s move took place amid the oil industry boom in the Gulf, and his business — incorporated as Arab Contractors — flourished as he bid on multimillion-dollar contracts for construction projects across Saudi Arabia and Kuwait.[23] He was approached by political leaders from around the Arab world for projects in Libya, Iraq, the UAE, Jordan, Lebanon, Morocco, Bahrain, and Qatar.[24] At its peak, Arab Contractors had 77,000 employees, making it one of the largest construction companies in the world. Often referred to as a “construction empire,” it undertook massive urban development projects across the MENA region.
In 1958,[25] Osman’s company won a $48 million contract for part of the Aswan High Dam construction.[26] Soon after, Egyptian president Gamal Abdel Nasser nationalized The Arab Contractors,[27] prompting Osman to return home to manage the situation. While Arab Contractors was now officially part of the public sector, a “tailor-made” law was passed to allow Osman to continue running the company. In recognition of the firm’s contribution to the Aswan dam project, it was exempted from many of the socialist government’s wage and job-tenure regulations.[28] During the 1960s and 1970s, Arab Contractors was the largest Arab construction firm in Egypt, with assets that ultimately exceeded $1.5 billion.[29]
In 1970, Anwar El-Sadat became president and reversed his predecessor’s economic policies, opening the door to foreign investments[30] and reviving the private sector. While Arab Contractors remained under state ownership, Osman established a string of private firms to take advantage of Sadat’s economic liberalization.[31] In 1974, the Osman Group was founded by Osman and his four sons — Mahmoud, Ibrahim, Ahmed, and Mohamed — along with their cousins Mohamed and Amr.[32]
During the Sadat era, Osman became a prominent public figure who was presented to the youth as an inspiring symbol of success and power.[33] At one point in the 1970s, he was identified as the second most powerful man in Egypt after Sadat.[34]
When Hosni Mubarak assumed the presidency in 1982, he limited Osman’s influence by not allowing him to invest in new private projects.[35] After years of declining health, Osman suffered from a heart attack and passed away in Cairo in 1999. Members of the second generation had taken over management of the publicly owned Arab Contractors, but the business was now struggling. In 2001, the last member of the family to run the company, Ismail Osman, was removed from his CEO position by the government.
TODAY
Today, Arab Contractors, with no remaining connection to the Osmans, remains in operation. The Osman Group is still owned and run by members of the Osman family’s second generation.
Notes
Photo Credit: Founder of the Arab Contractors Osman Ahmad Osman (left) with the late H.H. Sheikh Zayed bin Sultan Al Nahyan then-ruler of the United Arab Emirates (right). Source: Autobiography "Safahat men Tajribti", P.662.
[1] Osman Group – About Osman Group. http://www.osman.net/og/about.php. 18 Feb. 2021
[2] Mughal, Waqar. “The Arab Contractors – Top Construction Companies in MENA 2021.” Forbes Lists, https://www.forbesmiddleeast.com/lists/top-construction-companies-in-mena/the-arab-contractors-osman-ahmed-osman-co/. 18 Feb. 2021
[3] Business was effectively born in Ismailia, but incorporation took place in Cairo
[4] Refinitiv
[5] Refinitiv
[6] The Arab Contractors Company Awarded the Best Contracting Company in Uganda for 2018| The Arab Contractors. https://www.arabcont.com/english/Release-2018-1317. 18 Feb. 2021
[7] Refinitiv
[8] Refinitiv
[9]‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0. 18 Feb. 2021
[10] ‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0. 18 Feb. 2021
[11]عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download.
. P. 35. 18 Feb. 2021
[12] حامد, محمد. “عثمان أحمد عثمان.. 21 عاما على رحيل معلم مشروعات مصر الكبرى.” الوطن, 30 Apr. 2020, https://www.elwatannews.com/news/details/4722633. 18 Feb. 2021
[13]عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download. 18 Feb. 2021
[14] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. P. 15-45. 18 Feb. 2021
[15] History – The Arab Contractors. https://www.arabcont.com/english/history.aspx. 18 Feb. 2021
[16] عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download.
- 60. 18 Feb. 2021
[17] ‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0. 18 Feb. 2021
[18] عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download. P.61. 18 Feb. 2021
[19] عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download. 18 Feb. 2021
[20] عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download. 65. 18 Feb. 2021
[21]عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download.P.85. 18 Feb. 2021
[22] عثمان، عثمان أحمد, and ʻUthmān Aḥmad ʻUthmān. Ṣafaḥāt min … tajribatī. al-Maktab al-Miṣrī al-Ḥadīth, 1981. bobcat.library.nyu.edu, https://books-library.net/free-623667449-download. p. 149. 18 Feb. 2021
[23] ‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0 .18 Feb. 2021.
[24] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013, pp. 15–45. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. 18 Feb. 2021
[25] حامد, محمد. “عثمان أحمد عثمان.. 21 عاما على رحيل معلم مشروعات مصر الكبرى.” الوطن, 30 Apr. 2020, https://www.elwatannews.com/news/details/4722633. 18 Feb. 2021
[26] ‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0. 18 Feb. 2021
[27] ‘Uthman, ‘Uthman Ahmad (6 April 1917 – 1 May 1999) | Biographical Dictionary of Modern Egypt – Credo Reference. https://search.credoreference.com/content/entry/bdmodegypt/uthman_uthman_ahmad_6_april_1917_1_may_1999/0. 18 Feb. 2021
[28] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. P. 15-45. 18 Feb. 2021
[29] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. P.15-45. 18 Feb. 2021
[30] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013, pp. 15–45. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. P. 15-45. 18 Feb. 2021
[31] Business diversification (ISBN 2865378985, P.215): « Si l’on tient compte des sociétés créées par celles dans lesquelles Arab Contractors, Arab Contractors Investment et l’Arab Contractors Employees Fund ont des participations, on atteint le chiffre de plus de 150 sociétés dans lesquelles Osman Ahmed Osman détient des intérêts ».
[32] Osman Group – About Osman Group. http://www.osman.net/og/about.php. 18 Feb. 2021
[33] Baker, Raymond. “1. How to Build a Better Future: Osman Ahmed Osman and the Arab Contractors.” Sadat and After: Struggles for Egypt’s Political Soul, Harvard University Press, 2013, pp. 15–45. www.degruyter.com, https://doi.org/10.4159/harvard.9780674280434.c4. P.15-45. 18 Feb. 2021
[34] Beinin, Joel. “Political Islam and the New Global Economy: The Political Economy of an Egyptian Social Movement. (Undetermined).” CR: The New Centennial Review, vol. 5, no. 1, Spring 2005. http://proxy.library.nyu.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=hus&AN=509791300&site=eds-live P. 111–39. 18 Feb. 2021
[35] ISBN 2865378985, P.219
To cite this article please use:
“The Arab Contractors” Family Business Histories Research Project, New York Unviersity Abu Dhabi and Tharawat Family Business Forum, 20 Mar. 2023, familybusinesshistories.org/spotlights/the-arab-contractors