Arcadis is winding down Middle East operations due to payment issues but remains optimistic about its future and ethical practices.
- Alan Brookes revealed Arcadis’s decision to exit the Middle Eastern market, citing prolonged payment delays and safety standard concerns.
- The CEO expressed positive sentiments regarding the impact of the new Labour government in the UK on the civil engineering sector.
- Brookes highlighted the importance of recruitment and diversity within Arcadis, focusing on a planet-positive future.
- Arcadis aims to complete its exit from the Middle East by the end of the year, maintaining commitments to current clients.
Arcadis, led by CEO Alan Brookes, has decided to wind down its operations in the Middle East. The driving force behind this move is primarily financial, with Brookes explaining that payment delays from clients have been unsustainable. He recounted instances where payments were received years after the work was completed, exemplifying the strain on cash flow. Additionally, Brookes mentioned that some clients disregarded health and safety standards, further justifying the company’s exit strategy.
The controversy surrounding major projects in the Middle East, like Neom, has also influenced Arcadis’s decision. Brookes confirmed that Arcadis is no longer involved in the Neom project, having ceased taking new projects in the region for the past two years. He emphasised that the company’s priority is ensuring a respectful withdrawal, fulfilling existing obligations without compromising ethical standards.
In the UK, the advent of a new Labour government is seen positively by Brookes. He praised the establishment of Great British Energy and the government’s push for devolution, suggesting these initiatives align with Arcadis’s goals for sustainable growth. Brookes particularly noted the government’s planning reform approach, which aims to balance national interest with local dissent, as a much-needed catalyst for development.
Recruitment and maintaining a skilled workforce are pivotal for Arcadis. Brookes discussed challenges such as attracting talent for critical projects like the Great Grid Upgrade and retaining staff. He revealed that Arcadis conducts regular surveys to understand employee needs and expectations, which has led to a stronger alignment with the company’s mission to accelerate a planet-positive future.
Arcadis is committed to diversity, targeting a 40% female workforce and supporting various employee affinity groups. Brookes highlighted the company’s ongoing efforts to increase female representation and enhance inclusivity. He reported that Arcadis is currently progressing well with its 2024-2026 strategy, experiencing growth and profitability, while actively reducing its environmental impact.
Arcadis is strategically positioning itself for future success by addressing current challenges and aligning with sustainable and ethical standards.
