Hong Kong-based contractor CSHK has won an Dh860 million ($234.1 million) contract to build two residential towers on Reem Island in Abu Dhabi.

Construction firms are increasingly turning to Abu Dhabi to drive business in the UAE after a sharp decline in Dubai's real estate sector led to billions of dollars worth of construction projects being scaled back or cancelled.

The 33-month contract was awarded by local developer Tamouh last week, CSHK's director Melvyn Ford told Reuters late on Sunday.

 'We are looking to expand in Abu Dhabi and we are starting to look at infrastructure there as well,' Ford said. 'There is a lot of work there but everything is becoming more competitive.'    

CSHK is the local arm of Hong-Kong-based China State Construction Engineering.

Ford said the company's construction portfolio in the UAE was about 3 billion dirhams, but was looking to add another 1.5 billion dirhams in 2009.

The firm is the latest contractor to win a deal in Abu Dhabi.

London-based MEED reported in its latest issue South Africa's Murray & Roberts was part of a joint venture awarded a 2 billion dirham contract to build a new hotel in the capital. - Reuters