x Abu Dhabi, UAEThursday 27 July 2017

Arabtec quits Burj Al Alam talks

Arabtec had been tipped to win the contract after talks with Fortune Group, the developers.

Arabtec has pulled out of contract negotiations to build the 500 metre high Burj Al Alam, which is slated to be the emirate's second tallest building. Arabtec had been in talks with Fortune Group, the developers, about the deal estimated to be worth Dh2.9bn (US $800mn) since the beginning of this year and was tipped to win the contract. "We've dropped out of negotiations," said Thomas Barry, the general manager at Arabtec. He declined to elaborate further.

A spokesperson at Fortune Group said the company was continuing negotiations with a number of other contractors for the job and was expected to award a contract by the third week of October, with work beginning soon after. "We're close to finalising the contract," said the spokesperson, who asked not to be named. "In construction, you can't force anyone to take on your project. Both the client and the contractor needs to get the most out of (the deal)."

Mr Barry also confirmed that Arabtec had won a Dh2.4bn contract from The Sunland Group, a predominantly Australian developer, to build the Atrium, a residential building planned for the Madinat al Arab component at Nakheel's Waterfront development. agiuffrida@thenational.ae