$2.4bn deal is shot in the arm for Leighton shares

Shares in Leighton Holdings Ltd, Australia’s largest building company, surged in Sydney on Thursday after its Dubai unit won a $2.4 billion development contract.Leighton stocks soared 13 percent to A$22.99 on the Australian stock exchange, the most since Oct. 13, after shedding 62 percent this year, newswire Bloomberg reported.

Al Habtoor Leighton Group on Wednesday won the Gulf's single largest construction contract to develop the Dubai Pearl, comprising four 73-story towers, a hotel and retail facilities.

Al Habtoor Leighton Group managing director David Savage said the combined strength of Al Habtoor and Leighton was a key factor in securing the project.

“The Al Habtoor Leighton Group is one of the few contractors with the capacity and capability to take on a project of this magnitude. We look forward to working with Dubai Pearl to deliver this iconic project."

He added: "This puts our uncompleted work at record levels, with Dubai remaining the largest component of our business. The project confirms our position as the UAE’s leading construction group."

Construction on the project, contracted by Pearl Dubai FZ LLC, will begin in January. Al Habtoor Leighton was established in September 2007 after the merger of Al Habtoor Engineering with the Gulf operations of Leighton International.

Pearl Dubai said the deal was the largest single contract of its kind in the Gulf Arab region.

The contract’s main components cover structural and civil works, MEP (mechanical, electrical and plumbing), finishes, landscaping and internal infrastructure.

Earlier this year, Dubai Pearl had invited leading international and regional contracting companies to bid for the project.