Arabtec to build two colleges in Kuwait in JV
UAE builder to work with Combined Group Contracting for AED1.5b job
Arabtec Construction, the main building arm of Arabtec Holding, is to build two colleges in Kuwait in a joint venture with Combined Group Contracting, according to a statement.
The UAE’s biggest construction firm will take an $245million share of the total $410million contract, according to Bloomberg.
Arabtec has won a number of contracts since the start of the year as it seeks to diversify its project activities across the Gulf. These wins include an $60million contract to build the underground car park at the Adnoc headquarters in Abu Dhabi, along with an agreement to provide enabling, structural and MEP and other work for two residential towers, also in the UAE capital. It will also build staff accommodation in Fujairah, the most eastern emirate.
Last month, Arabtec Egypt for Construction was awarded a contract from Emaar Misr for Development to build 74 residential villas and 30 town houses in Egypt. But the company was also rocked by a strike by workers, a dispute settled on 26 January.
The company’s shares have fallen 14.7% since the start of the year, closing at AED1.75 on Monday. Nishit Lakhotia, senior analyst at Securities & Investment Corporation, recommended a ‘buy’ rating on the stock on 3 February.
Combined Group Contracting Compnay is a Kuwait-listed contractor that covers oil, roads and infrastructure, as well as tunnelling, and it has a division for special projects for jobs that do not fall into traditional categories. Its share price has also seen a strong rise from mid-September, settling around the KD2,040 since 14 December.