Arabtec, SBG 'still in talks' over JV subsidiaries
Negotiations are ongoing over the reported dissolution of four Arabtec and Saudi BinLadin Group joint-venture subsidiaries, according to Arabtec Construction CEO, Raja Hani Ghanma
Arabtec and Saudi BinLadin Group (SBG) have not yet reached a decision over the reported dissolution of four joint-venture subsidiaries in Saudi Arabia.
In March 2015, UAE-based newspaper The National reported that Arabtec had approved a plan to dispose of its equity interest in four Saudi Arabian subsidiaries: Arabtec Saudi Arabia, Arabtec Construction Machinery, Saudi Austrian Arabian Ready Mix, and Efeco Saudi.
But in comments made to Construction Week, Raja Hani Ghanma, CEO of Arabtec Construction, revealed that negotiations between the stakeholders are still ongoing.
When quizzed about the dissolution of the joint ventures, Ghanma said: “We are still in talks with Saudi BinLadin Group for the same; [we] haven’t reached a decision yet.
“We have other [activities] in Saudi Arabia as well, which include our mechanical, electrical and plumbing (MEP), oil and gas, and readymix subsidiaries,” he added.
Arabtec is currently working on a $272m (SAR1bn) contract awarded by Saudi Aramco to build 380 villas in Al Dharan, where the national oil company’s staff compound is located. Ghanma added that the Kingdom will represent a key geographical focus for the contractor in 2016, along with the UAE and Egypt.
Click here to read Construction Week's full interview with Ghanma.