The UAE contractor Drake & Scull expects to expand its market share in Qatar as the country ramps up infrastructure spending ahead of the Fifa 2022 World Cup.
Yesterday, its subsidiary in Qatar won a 400 million Qatari riyal (Dh403.4m) contract to do the mechanical, electrical and plumbing work at a new mall in Qatar.
Drake & Scull Qatar will start work in the first quarter of next year. The three-storey Mall of Qatar will be in Al Rayyan and will be completed in June 2015, the company said.
“Qatar is witnessing an upsurge in project tenders and contracts awarded, as there is larger construction spending geared towards achieving its ambitious infrastructure development plans to facilitate the 2022 Fifa World Cup,” Drake & Scull said.
The company, which specialises in mechanical, electrical and plumbing installation, won two projects in Qatar earlier this year.
The first was worth 304m riyals for a property development project in Doha. The second contract was worth 180m riyals for a residential project.
The Qatari unit has also won a number of other local projects since 2006, such as the Four Seasons Hotel, the Qtel Tower and the Doha Land project.
Karem Akawi, the area general manager for Drake & Scull Qatar, said the company was executing projects across district cooling, hospitality and residential sectors. We anticipate positive development in the rail sector, as we have cemented strategic alliances with leading international rail experts to address the challenges and needs of Qatar Rail.”
Drake & Scull also expects a growth in the water and waste sectors in Qatar, he said.
Last week, the Dubai-listed builder Arabtec denied that it was in discussions about a merger with Drake & Scull.
Speculation of a deal between the two intensified after Arabtec completed a Dh2.4 billion rights deal this summer aimed at growing the company.
The two contractors have been working increasingly closely together this year on projects that the Louvre Abu Dhabi on Saadiyat Island.
Drake & Scull shares closed flat yesterday. However, year-to-date the stock is up 94 per cent on the Dubai Financial Market.
In November, it reported a sixfold increase in profits after picking up a clutch of new orders. Drake & Scull net income rose from Dh3.9 million to Dh23.8m during the third quarter.