The consortium composed of Orascom Construction and Arab Contractors is set to complete the construction works at its EGP10 billion project, related to the tunneling works at the Suez Canal, within 18 months. Construction works have started four months ago, according to Ahmed Abbas, an executive with Arab Contractors.   We had highlighted OC as our pick within our MENA contractors coverage, despite our bearish view on construction activity and thus the operational performances of contractors in MENA. We believe OC stands out with its unique exposure to the infrastructure story in the region in general and in Egypt in particular, with projects such as the above, which we believe still holds. We also favour OC’s exposure to the developed markets, especially the US, which we believe puts OC in a better position vis-à-vis its regional peers, especially when it comes to prospects of receivables collection – a major concern for contractors currently operating within the MENA markets. Risks include lower awards from Saudi Arabia, given the volatility of oil prices and as the company absorbs the repercussions of the imposed restrictions on Binladin winning new contracts. The stock trades at a PER of 7.3x for 2016e and 2017e, and EV/EBITDA ratios of 3.8x and 4.1x, respectively. (Al Borsa, Mai Attia, Sara Boutros)   Orascom Construction (DU): USD5.90 as of 21 February 2016, Rating: Buy, FV: USD9.06 per share, MCap: USD696 million, OC DU / OC.DI