Text size:

  • Small
  • Normal
  • Large
Emirates Airline was named in the top 10 first class cabins by therichest.com. Find out what position it came here.

Arabtec lands Dh561m Dubai airport contract

Arabtec's expansion into infrastructure work nets it a Dh561 million deal for Dubai International Airport's expansion.

Arabtec, the largest construction company in the UAE, has won a Dh561 million (US$152.7m) contract for the expansion of Dubai International Airport.

The award follows Arabtec's Dh636m contract announced last month for infrastructure work in Saudi Arabia.

"The ability to secure infrastructure work is the key," said Mohammad Kamal, an analyst with Arqaam Capital. "The bulk of the opportunity in the Middle East is in infrastructure."

Arabtec will work on the structure, mechanical engineering and plumbing, systems and finishes for the expansion of Terminal 2. The project will take 25 months, the company said.

Arabtec has won 12 airport-related contracts in recent years, including previous work at Dubai International and Dubai World Central, the company said.

"We are proud to be awarded repeated projects with Dubai Civil Aviation and we very much value this special relationship which we have built over the years," said Greg Christofides, the chief executive of Arabtec.

Arabtec's stock jumped 5.7 per cent on Tuesday, before the announcement, but fell back 1.8 per cent yesterday to close at Dh1.62.

The project will add only about 4 per cent to the company's backlog announced at the end of the third quarter, Mr Kamal said. It stood at Dh14.7 billion at the end of last year, Arqaam estimates.

Arabtec's primary focus has been on residential and commercial projects, markets that have slowed considerably in recent years.

"The bulk of their award wins in 2011 have been in line with core competencies of residential structures," Mr Kamal said. "So any momentum in winning infrastructure work is a welcome development."

Arabtec has been winning deals in Saudi Arabia and Kuwait. But its profit margins have been declining in the face of increased competition for contracts.

Arabtec posted a profit of Dh39.1m for the third quarter, compared with Dh6.8m for the same quarter of 2010.

"Since the release of the [third-quarter] numbers, it appears the market has been awarding Arabtec for backlog growth and balance sheet liquidity and turning a deaf ear to poor margin performance," Mr Kamal said.


twitter: Follow our breaking business news and retweet to your followers. Follow us

Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National