Middle East Conflict to Accelerate Opportunities for L&T, Says Subramanian Sarma

Infrastructure major Larsen and Toubro is witnessing a shift in opportunities emerging from the Middle East, as ongoing geopolitical tensions reshape the region’s energy and infrastructure priorities. Subramanian Sarma, Deputy Managing Director and President of L&T, highlighted that the current conflict is acting as a catalyst for faster decision making, energy diversification, and capacity expansion across key markets.

According to Sarma, countries in the Middle East are now actively working to reduce their dependence on traditional energy routes such as the Strait of Hormuz. This has triggered discussions around alternative evacuation routes, including cross country pipelines and new access points through regions like Oman, the Red Sea, and the Mediterranean. These developments are expected to open up significant opportunities for infrastructure and engineering companies.

He also noted that clients in the region are pushing to accelerate ongoing projects in order to bring capacities online much sooner than initially planned. At the same time, there is a growing interest in adding new capacities, particularly in energy and industrial infrastructure. This dual push is creating a strong pipeline of projects for companies like L&T.

The Middle East currently contributes around 36 percent of L&T’s total order book, underlining its strategic importance. The company has a strong presence in sectors such as energy transition, power infrastructure, and hydrocarbon projects across countries including Saudi Arabia, the UAE, Qatar, and Kuwait.

Sarma further indicated that once the conflict stabilizes, there could be a surge in new project announcements, especially in reconstruction and capacity expansion. Governments in the region are expected to move quickly on projects that can deliver immediate output, creating opportunities for multiple contractors.

Despite the ongoing tensions, L&T’s operations in the region remain largely stable, with the majority of its project sites continuing without disruption. The company is also proactively managing supply chain challenges by exploring alternative logistics routes.

Overall, the evolving geopolitical landscape is not only reshaping risks but also unlocking new growth avenues for infrastructure players in the Middle East.