Arabtec sets up Saudi unit
Dubai, March 7, 2009
Dubai's Arabtec Holding said on Saturday it has set up a Saudi arm called Arabtec Saudi Arabia, with expected turnover in its first year of over SR1.5 billion ($400 million).
'This is a natural expansion in our activity in the region,' Arabtec CEO Riyad Kamal told a news conference, adding turnover would rise to up to SR5 billion within three years.
The new entity is 40 per cent owned by Arabtec, with 35 per cent taken by CPC Services, a member of the Saudi Binladin Group, and 20 per cent by Prime International Group Services, Arabtec said.
Arabtec, the United Arab Emirates' largest construction firm, posted fourth-quarter net profit of about SR184.8 million ($50 million), down from SR191.9 million a year before and missing analyst forecasts.
Dubai's property sector is suffering from a slump in prices after a six-year building boom spurred by the emirate's move to allow foreign investors to buy properties and buoyant regional growth during an oil price rally.
Arabtec and Malaysian engineering firm WCT are seeking at least $460 million in compensation for a Dubai race course that was cancelled in January, WCT has said.
Arabtec's shares closed 1.94 percent lower at 1.52 dirhams a share on Thursday.-Reuters