A unit of Arabtec Holding, the Dubai-listed construction firm, has won a Dh408 million contract from Emaar Misr to build two urban projects in Cairo.
Emaar Misr, the Egyptian arm of Dubai's largest listed property developer, awarded the contract to Arabtec Construction to build 449 residential units in the gated community of Uptown Cairo in Moqattam, Emaar said on Sunday in a statement to the Egyptian Exchange, where its shares trade.
Work on the 1.8 billion Egyptian pounds (Dh399m) project is expected to begin immediately, Emaar Misr said in the bourse filing.
Arabtec, which reported a 47 per cent slide in second-quarter net profit as costs and expenses increased, said earlier in August that it is focused on diversifying its backlog geographically and is evaluating opportunities in GCC countries and Mena. Arabtec's net profit attributable to the owners of the company for the three-month period ending June 30 dropped to Dh26m and revenue for the period fell 8.7 per cent to Dh2.18bn. Costs in the second quarter reached Dh2bn and expenses widened to Dh92m.
In February, Arabtec said it was awarded a Dh95m contract by Emaar Misr for the construction and finishing works of 42 residential villas in the developer's Marassi Project located on Egypt’s North Coast.
Emaar Misr has completed 6,514 units and expects to deliver 782 units this year, according to a company presentation.
Emaar Misr's land bank, or the area of land that can be developed, in Egypt reached 4.5 million square metres, according to the company.
Egypt, the Arab world's most populous nation, is seeking to attract foreign investment as it overhauls its economy. Its real estate sector is widely seen as an investment opportunity, given the country's population growth and improving economic stability.
