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Abu Dhabi, UAEWednesday 22 August 2018

GFH awards $150m construction contract to Chinese company for Dubai project 

Hong-Kong listed company gets contract for construction and financing of up to 85% of GFH's Dubailand project

Bahrain-based GFH Financial Group awards $150m contract to Hong-Kong listed China Machinery and Engineering Corporation for its Dubailand project. Reuters
Bahrain-based GFH Financial Group awards $150m contract to Hong-Kong listed China Machinery and Engineering Corporation for its Dubailand project. Reuters

Bahrain's GFH Financial Group awarded a contract worth about $150 million (Dh552m) to a Chinese engineering company for construction and financing of its Dubailand project amid an influx of business deals between China and the UAE.

GFH awarded the engineering, procurement and contracting deal to state-owned China Machinery and Engineering Corporation (CEMC) to handle 85 per cent of its California Village project, the Manama-based company said in a statement on Sunday to the Dubai Financial Market, where its shares are traded.

"The contract will see financing provided by Chinese banks under an insurance policy to be issued by state government agencies of China," GFH said.

The announcement for the Dubai-based project follows a three-day visit by Chinese president Xi Jinping to the UAE that culminated in a slew of business agreements in sectors ranging from energy to aviation.

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The Bahraini company reported a 56 per cent drop in its full-year net profit citing a decline in income and difficult market conditions.

The investment bank, whose shares are listed in Bahrain, Kuwait and Dubai, is seeking approval from Saudi Arabia’s market regulator to cross-list on the Tadawul stock exchange, the region’s biggest bourse by market capitalisation.

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