Drake & Scull limits general contracting to UAE
Drake & Scull International has revealed that it will no longer offer civil or general contracting services outside of the UAE
Drake & Scull International (DSI) has revealed that it will no longer offer civil or general contracting services outside of the UAE.
The firm’s general and civil contracting activities will be limited to the Emirates through its subsidiary, Gulf Technical Construction Company (GTCC), according to chief executive officer, Wael Allan.
However, DSI's chief emphasised that the company would continue to offer mechanical, engineering, and plumbing (MEP) services in all of its home markets, including Saudi Arabia and Qatar.
Commenting during an interview with Construction Week, Allan said: “It’s important for us to be highly selective when it comes to the opportunities that we pursue in the future. This will involve [drawing back] from certain geographies and returning to our home markets.
“DSI will no longer offer civil or general contracting services outside of the Emirates. From now on, we will limit these activities to the UAE through our subsidiary, [GTCC].”
DSI has recorded net profit losses for the past two financial years. In 2016, the company succeeded in narrowing this deficit by $40.6m (AED149.1m), achieving a net loss of $214.4m (AED787.5m), compared to the $255m (AED936.6m) figure reported during the previous year.
Allan said that in light of the ultra-competitive nature of general contracting markets outside of the UAE, DSI would focus future efforts on its core segments, such as MEP.
“In markets like Saudi Arabia, general contracting is extremely competitive,” he explained. “We’ve seen what has happened to businesses like Saudi Binladin Group (SBG), Saudi Oger, and others. There is pressure on prices, and [general contracting] really isn’t DSI’s core competency in those countries.
“The UAE is also a very competitive market in this respect, but DSI has invested enough in its general contracting capability in the Emirates [to succeed]. It’s our back yard, and our clients are extremely satisfied with GTCC’s performance,” Allan added.
To read the full interview with DSI's Wael Allan, check out issue 644 of Construction Week.