Arabtec Construction awarded two projects
UAE contractor wins tower and residential mandates worth AED 623m
Arabtec Construction has secured a letter of award for two projects in the UAE worth a combined AED 623 million.
The main building subsidiary of Dubai-listed Arabtec Holding is to provide enabling, structural and MEP work as well as fit-out and landscaping for two residential towers in Abu Dhabi and a staff accommodation in Fujairah.
The first tower will consist of three basement levels, a ground floor, five podium floors and 40 residential floors; the second tower will have two level basements, a ground floor, five podium floors and 35 floors on top. The total built up area for the two-year project is 90,000 m2 and is a contract worth AED 552 million.
It will also design and build staff accommodation in Ishwais in Fujairah, the eastern-most emirate. The building will be 16 floors high with two podiums and a basement over a built-up area of 14,000 m2. It will take 16 months to complete and is a contract worth AED 71 million.
The company refused to disclose the identity of the private developer that awarded the contracts.
Arabtec said it is embarking on an aggressive expansion plan across the Middle East, with Saudi Arabia a key focus, along with Syria and Egypt. “At Arabtec we will continue to focus on Abu Dhabi, as there are still a lot of projects there,” said CEO Thomas Barry at the ConstructionWeek conference in Abu Dhabi.
"Some may be a bit slow to come to fruition, and margins will be tight because of competition from other local contractors looking for work there.
"But our major focus will be Saudi Arabia. They'll be spending around $400 billion over the next few years to improve residential areas, hospitals, schools, rail.” In October the company recently secured a US $1.33 billion contract from Saudi Binladen to build 5,000 villas, which includes a residential project in the Eastern Province.
"The Egypt and Syrian markets will also be important for us. There are some big projects in Damascus. In Egypt they tend to carry out some large projects, so those will be big targets for us as well,” he said, adding that he was upbeat about Qatar.
At the end of the last quarter Arabtec Holding had a AED22bn order book backlog, its chief financial officer Ziad Makhzoumi told reporters in October.
The company’s shares did not trade yesterday and remain at AED 2.04.