Dubai's Meydan has relaunched work on a $1.25 billion grandstand at a race course, appointing new contractors for the project which had been cancelled in January, a magazine reported.

Work has restarted on Nad Al-Sheba grandstand after Meydan appointed China State Construction Engineering Corporation and Dubai's Mammut Building Systems to complete the project, London-based Meed said.

Malaysian engineering firm WCT Bhd and Dubai's Arabtec Holding are seeking at least $460 million in compensation after their contracts to build the racecourse were cancelled.

Both firms are initiating a civil suit and arbitration proceedings against the developer over an alleged breach on contract for cancelling the deal. A spokesman for Meydan was not immediately available for comment. - Reuters