Orascom Construction Industries (OCI), Egypt's top listed builder, said it saw little material impact from Dubai's debt crisis and would focus its UAE operations on Abu Dhabi.

Orascom Construction shares slid 7.8 per cent yesterday (November 30) on fears the Dubai debt crisis would hit its operations in the UAE.

"This is not very material ... We now have limited exposure in Dubai," said Omar Darwazah, investor relations manager at OCI. He said 4.5 per cent of OCI's $7.2 billion backlog was related to Dubai.

Dubai rocked the financial world on November 25 when it said it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree to a standstill on billions of dollars of debt as a first step to restructuring.

Darwazah said OCI would turn its focus to Dubai's oil-exporting neighbour, Emirates capital Abu Dhabi, which accounts for around 15 per cent of OCI's backlog.

"The situation in Abu Dhabi in general is very healthy versus Dubai," he said. "Abu Dhabi is a great market for us to continue our backlog there."

The firm cancelled $200 million worth of projects in the UAE in early 2009, the lion's share of which was in Dubai, Darwazah said, calling the share decline "an over-hype".

Beltone Financial said in a research note that OCI's exposure to Dubai was not significant and was limited to Burj Dubai, which is almost complete, and the Al Safouh transit system, a government transportation project.

"These are two very robust projects," Darwazah said. "The Safouh project will not be impacted because it is an infrastructure project that has to be finished off. In a worst-case scenario, infrastructure projects will end up being on top of the spending agenda." – Reuters