UAE construction firm Arabtec said on Sunday it would set up real estate development arms in Dubai and Abu Dhabi, and open talks with Egyptian authorities on affordable housing projects in the north African country.

Dubai-listed Arabtec will also search for new investments, partnerships and acquisitions in the Gulf region as part of the company's expansion plan, it said in a statement detailing the resolutions of a December 19 board of directors meeting.

The new property arm, Arabtec Real Estate Development Company will focus on developing lifestyle communities, initially in Abu Dhabi and Dubai, through strategic joint ventures with leading real estate developers and investors in the UAE with plans to expand to other GCC countries and the wider Mena markets, said a top official.

Hasan Abdullah Ismaik, the managing director and CEO of Arabtec Holding, said: “The launch of Arabtec Real Estate marks yet another milestone in the company’s growth story. The new development arm will build on Arabtec’s long-standing track record of delivering high quality real estate developments for more than 20 years.”

The creation of a real estate arm gives Arabtec exposure to a higher-margin development segment of the industry. The new company will carefully assess the opportunities that arise from Arabtec’s strong standing in the sector, he stated.

According to him, Arabtec Real Estate will focus on the significant opportunities available as a developer in the affordable housing segment.

"There is an estimated shortage of over 3.6 million affordable units in key markets in the region, and Arabtec Real Estate plans to rapidly expand in this field, in particular, in key high potential markets, including UAE, Saudi Arabia, Egypt, Algeria and Morocco," stated Ismaik.

"With the real estate industry now showing strong signs of recovery, expanding into the development market presents itself as an attractive proposition. We see high potential in the UAE development market. The UAE has become a global destination attracting people from all parts of the world to develop their careers and enjoy its superb cosmopolitan lifestyle," said the top official.

"We will also leverage our strong presence across the region to establish Arabtec as a leader in both construction and real estate development," he added.-Reuters and TradeAraba News Service