Efforts and Initiatives of the Arab Contractors Union to Grant Preference to Arab Contractors in Projects Funded by Governments and Arab Funding Institutions

As part of its continuous efforts to enhance the participation of Arab contractors in the implementation of major Arab projects funded by governments and Arab financing institutions, the Arab Contractors Union has been working tirelessly to enable Arab contractors to compete fairly with large foreign companies that enjoy substantial support from their countries. The goal is to fully utilize and enhance the technical and human resources of national companies so they can shoulder the burden of development and reconstruction in affected Arab countries. These efforts also aim to conserve foreign currency reserves by reducing reliance on foreign companies, create employment opportunities for Arab labor in the face of rapid population growth, eliminate unemployment, boost national income, strengthen Arab economies, provide liquidity, and stimulate vital sectors such as construction material industries in Arab countries.

Following the decision of the Economic and Social Council during its session at the Arab League Headquarters on September 8, 2004, to activate the role of Arab financing institutions in Arab development—ensuring an effective financing role for the Arab private sector—the Arab Contractors Union proposed increasing the developmental, financial, and integrative role of these funds through the adoption of incentive policies to support Arab contractors. These policies would shield them from the dominance of foreign companies.

To this end, the Union addressed the Arab League, the Council of Arab Ministers of Housing and Reconstruction, and called for encouraging Arab governments and financing institutions to adopt preferential policies for Arab contractors in tenders funded by Arab governments and institutions. The aim is to boost their chances of securing contracts and protect the Arab construction industry.

Major Actions Taken Over the Past Four Years:

1. Dec 24, 2019: The Union sent a letter to the Secretary-General of the Arab Economic Unity Council proposing the inclusion of a preference percentage for Arab contractors in tenders funded by Arab governments and financial institutions.
2. Jan 4, 2020: A letter was sent to the President of the Union of Arab Banks urging support for the preference proposal, with similar efforts directed at the President of the Egyptian Banks Union.
3. Jan 14, 2020: A letter was sent to the Director of Environment and Housing at the Arab League requesting support for the Union’s preference proposal, resulting in a recommendation to prepare a memo for the 37th session of the Council of Arab Housing Ministers.
4. Oct 11, 2020: The Secretary-General of the Union participated in the Advisory Technical Committee of the Arab Housing Ministers Council and proposed granting preference to Arab contractors.
5. Oct 24, 2020: A reminder letter was sent regarding the meeting with the Director of Arab Economic Integration at the Arab League.
6. A comprehensive memo on the importance of the preference policy was prepared and followed up until it was included on the agenda of the Scientific Advisory Committee.
7. Dec 21, 2020: During the 37th session of the Arab Housing Ministers Council chaired by the Tunisian Minister of Housing, the Union’s proposal was reviewed and referred to the Economic and Social Sector for further action.
8. The recommendation was documented in the official record of the Council on pages 16–17 under item nine.
9. Aug 22, 2021: A letter was sent to the Secretary-General of the Economic Unity Council detailing all the Union’s efforts and requesting follow-up.
10. Sep 2021: A high-level meeting was held between Union leadership and the Secretary-General of the Economic Unity Council to further discuss the proposal.
11. Oct 11, 2021: A full dossier of correspondence and documents was submitted to the Director of Arab Economic Integration.
12. The Union developed a detailed vision of the preference percentage and provided a study on preference laws for local products in Arab countries to support its proposal.
13. Dec 14, 2021: During the Fourth Arab Ministerial Forum on Housing and Urban Development and the 38th session of the Housing Ministers Council in Jordan, the Union’s President renewed the call for preference.
14. The proposal was then referred to the Economic Integration Department for review.
15. Continuous coordination efforts were undertaken with key departments and officials at the Arab League.
16. Mar 30, 2022: The proposal was presented at the 4th meeting of the Arab Services Trade Liberalization Committee, which recommended circulating the proposal to member states for feedback.
17. Oct 22, 2022: The Union sent a memo proposing a 7% preference margin, noting it is lower than most Arab legal standards.
18. Feb 2, 2023: The Union protested the Services Trade Committee’s refusal to discuss the proposal and requested it be escalated to higher authorities within the Arab League.
19. Feb 14, 2023: The Union submitted comprehensive documentation on the issue to multiple departments within the Arab League.
20. Oct 15–17, 2023: At the 69th session of the Scientific Advisory Committee, the Union presented a summary of its efforts. The Secretary-General submitted a recommendation:

“In order to activate the role of the Arab contractor and protect him from the dominance of foreign companies supported by their countries, the Arab Contractors Union recommends inviting Arab funding institutions and governments to include a preference percentage for Arab contractors in tenders they fund. This would enhance their opportunities, ensure the growth of the Arab construction industry, create real job opportunities, preserve foreign currency reserves, and support national economies in all Arab countries.”

Ongoing Coordination:

The Arab Contractors Union continues close coordination with:

• The Arab League’s General Secretariat,
• The Arab Economic Unity Council,
• The Council of Arab Housing Ministers,
• The Arab League’s Department of Organizations and Services Council,
• The Department of Housing and Water Resources.

The Union also maintains regular contact with Dr. Jamal El-Din Gaballah, Director of the Housing and Water Resources Department, and has submitted urgent memos to Dr. Ali Al-Maliki (Assistant Secretary-General), and Dr. Bahgat Abu Al-Nasr, Director of Arab Economic Integration.