Abu Dhabi's Sorouh Real Estate and Egypt's Orascom Construction Industries said they would set up a firm in the UAE to fill a gap in construction services.

Orascom, Egypt's largest builder by market value, will hold a 50 per cent stake in Emirates Foundation, which will 'specialise in geotechnical engineering and foundation works', Sorouh said in a statement on the Abu Dhabi bourse website.

'There is a noticeable shortage in construction services for piling and foundation work in the region which is hindering the progress of many large-scale projects,' OCI chief executive Nassef Sawiris said in the statement.

Other partners in the venture are Hydra Commercial Investments and Capital Investment, Sorouh said.
Emirates Foundation would likely have capital of $80 million financed through debt and equity, it added.

Sorouh, Abu Dhabi's second-biggest developer by market value, has more than 45 billion dirhams ($12.25 billion) of projects under development. - Reuters