There are significant Spanish construction and infrastructure players active in Israel today. In recent years, some of these large Spanish stock market leaders have engaged in rail and water infrastructure projects within this Middle Eastern country, expanding their operations beyond Europe into a high-demand market.
Sacyr began its involvement in Israel in 2009 with a landmark award worth €300 million to design and build a desalination plant. That project marked a milestone as one of the first large-scale foreign ventures in the country’s history. The concession was shared with the local company Minrav, which owns 33% of the project. Construction spanned 30 months and was designed to produce 100 million cubic meters of desalinated water each year, addressing critical water security needs in the region.
FCC (Fomento de Construcciones y Contratas) had been prequalified in 2006 alongside General Electric and Israeli IDE for a desalination plant, but the project did not advance to tender.
Another area of Israeli infrastructure attracted attention when a company led by Florentino Pérez secured a 2015 contract to electrify a 420-kilometer railway corridor. The deal was valued at €480 million, with €46 million allocated for the construction of 385.8 kilometers and €434 million earmarked for maintenance over ten years. In addition, in railway infrastructure, the company TIPSA is involved in the ongoing construction of light rail systems in the country, contributing to a growing urban transit network.
One of ACS’s subsidiaries was accused by the Do Not Occupy coalition of working in Israeli-occupied settlements in Palestine, as reported in 2021. Similar debates have affected other major European players, including CAF and Madrid GMV, which have faced scrutiny for building light rail stops on territories widely recognized by Spain and the United Nations as Palestinian areas. The sequence began with a formal complaint by the Committee of Solidarity with the Arab Cause, prompting the Ministry of Industry, Trade and Tourism to request clarifications from the involved companies.
What are companies looking for?
Large Spanish firms pursue opportunities in regions with foreign financing networks, often aligned with the Organization for Economic Co-operation and Development (OECD), a group Israel has joined since 2010. In practice, infrastructure needs in these markets can outpace those of many developing economies, opening doors for multinational contractors who can deploy advanced technology and project-management capabilities on large-scale schemes.
Industry observers note that some projects are strategically targeted for international firms that bring specialized expertise. The aim is to deliver critical infrastructure—such as water treatment, desalination, and rail electrification—while meeting local regulatory standards and timelines. This approach allows contractors to operate efficiently in environments where the legal and financial landscape may require careful navigation.
Another facet involves temporary engagements. Companies may enter a market for a specific assignment, execute the task, receive payment, and depart. This model emphasizes rapid deployment, clear scope, and a lighter long-term legal footprint, enabling firms to contribute to essential projects without a broad, permanent domestic footprint. In practice, such arrangements rely on trusted partnerships with local firms and robust risk management to safeguard returns and ensure compliance with regional norms.
As the region’s infrastructure ambitions persist, Spanish groups emphasize governance, transparency, and social responsibility. They seek clarity around project eligibility, procurement rules, and potential alignment with international standards. The broader context includes workforce development, local content requirements, and the potential for long-term collaboration with local suppliers and engineers. These elements shape how European contractors position themselves in Israel and similar markets, balancing opportunity with responsibility.