UAE: Arabtec-Egypt 1 million homes MoU cancelled
Arabtec has submitted a revamped proposal to build 13,000 homes in Egypt following disagreement over the initial MoU, chairman Mohamed Al Rumaithi revealed
A deal between Dubai contractor Arabtec and the government of Egypt, pertaining to the construction of one million homes in the North African country, has reportedly been cancelled.
Arabtec will consequently build 13,000 homes in the country.
The firm inked a memorandum of understanding with Egypt's government in March 2014, but both parties failed to find common ground with the agreement's terms and conditions.
A new proposal has been submitted for the construction of 13,000 homes, Mohamed Thani Al Rumaithi, Arabtec's chairman, confirmed.
"We assume they will accept soon," he told Reuters.
Rumaithi, who assumed his responsibilities at Arabtec in May 2015, said 2015 would be a difficult year for the firm, which reported losses worth $257m (AED945m) for the third quarter of 2015.
"2015 will be a very, very tough year. That's the reality because of the losses the company has faced," he said.