Arabtec Saudi wins Binladin $1.33bn villa deal
Project will see 5000 villas built in Saudi's Eastern Province
Arabtec Saudi Arabia, a unit of Dubai-based construction firm Arabtec Holding, on Monday said it had received an order from Saudi Binladin Group to construct 5,000 villas with an agreed value of SR5bn ($1.33bn).
The deal, which involves a new housing project in the Eastern Province of Saudi Arabia, will take place over a period of 48 months, Arabtec Saudi Arabia said in an emailed statement.
“The award of this project demonstrates the strategic importance of the Saudi market for Arabtec,” Riad Kamal, CEO of Arabtec Holding, said. “This is the second major project awarded to Arabtec Saudi Arabia, the first being 46 buildings, part of the Princess Noura University project in Riyadh.”
One of the largest construction firms in the Gulf, Arabtec has been at pains to diversify its order book away from Dubai, in the wake of a sharp correction in the property market there.
The firm has bid for contracts in countries as diverse as Azerbaijan, Turkmenistan and Angola, in addition to secure work closer to home in markets such as Abu Dhabi, Saudi Arabia and Qatar.
At the end of the last quarter Arabtec Holding had a AED22bn order book backlog, its chief financial officer Ziad Makhzoumi said in a previous interview.
“At the end of the last quarter our backlog was AED22bn (around $5.98bn) including Russia,” he said in reference to a project to build a tower in Russia for Gazprom OAO.