Arabtec wins $220m deal to build 5* hotel in Dubai
5-star hotel and serviced apartments tower for Business Bay district
Arabtec has been awarded the main AED810m ($220m) construction contract to a 5-star hotel and serviced apartments tower located in the Business Bay district of Dubai.
The project is set to start in second quarter of 2013 and last 24-months.
The development has a built up area of 125,000m2, and encompasses two towers with 447 rooms and 136 serviced apartments.
Commenting on the award, Hasan Abdullah Ismaik, managing director and CEO of Arabtec, said: “We are pleased to have been awarded a prestigious project of this nature with a distinctive design. This new landmark is expected to play a vital role in supporting the local tourism and hospitality sector, which continues to grow in line with the UAE vision and economic goals.”
He added: “The company is in a very strong position to leverage an extended period of increased activity across the region. With an enhanced senior leadership team, armed with solid financial and risk management capabilities, we are forging ahead with our growth strategy aimed at maintaining the development of existing businesses and expansion into higher-margin areas of construction.”
“Our recently announced dividend policy, which targets a dividend pay-out of at least 10% per annum of our total share capital, aims to provide our shareholders with a regular return on their investment as they participate in our growth. We are now starting work on several major projects, so the company should see a positive impact on earnings towards the end of the year,” he concluded.
The planned dividend payout of at least 10% per annum of its total share capital is expected to take effect from 2013, subject to shareholder approval at its next annual general meeting.
Arabtec recently reported a 20% rise in first quarter 2013 revenue to $421m (AED1.55bn), and the company’s growing portfolio comprises a variety of the iconic developments such as the Fairmont Abu Dhabi and the Louvre Abu Dhabi museum.