Arabtec Construction, the contracting division of Dubai-listed Arabtec Holding, secured a Dh222 million contract to build a residential project for developer Dubai Properties.
The scope of work involves construction of 352 villas at Dubai Properties’ Amaranta project at the Villanova scheme in Dubai, Arabtec said in a filing to the Dubai bourse, where its shares are traded. Dubai Properties is the real estate division of Dubai Holding, the Ruler of Dubai’s investment vehicle.
The contract work starts immediately for an expected duration of 20 months and Amaranta is the fifth phase of the project that Arabtec Construction has been involved in, the company said.
"Dubai Properties continues to show confidence in Arabtec Construction…and this award further builds on our solid relationships in our core markets," Hamish Tyrwhitt, group chief executive of Arabtec Holding, said on Thursday.
Dubai Properties’ Villanova scheme is a residential community in Dubailand, located at the intersection of the Dubai-Al Ain Road and Emirates Road, close to main business and retail centres in the emirate.
It is comprised mainly of townhouses, whose design is inspired by contemporary Mediterranean architecture, according to Arabtec.
Arabtec more than doubled its profit year-on-year in the third-quarter of this year to Dh181m, thanks to project wins and an ongoing reorganisation of its business to achieve cost efficiencies and a maintain a sharper focus on project delivery, it reported in November. Revenue grew 12.7 per cent to Dh7.2bn during the period.
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Like other contractors, Arabtec suffered from a three-year slump in oil prices that caused construction activity to dip. However, higher oil prices this year have prompted an uptick in construction and boosted firms' performance. Arabtec reduced its net debt by Dh146m in the last quarter and continues to strive for a zero-net debt position, Mr Tyrwhitt told The National at the time.
The contractor plans to concentrate on the UAE – which accounts for 80 per cent of its business – for the foreseeable future, as well as Saudi Arabia, Bahrain, Kuwait and Egypt,, he said, adding that there are no plans to enter new markets or exit existing ones.
