Arabtec nets $631m deal for Qatar mega project

Arabtec Holding said on Tuesday it has been awarded a contract from Msheireb Properties for the execution of phase two of its $5.5bn mega project Msheireb Downtown Doha.

The QR2.3bn ($631m) deal involves the construction of a built-up area of about 370,000 sq m comprising 10 buildings.

The deal has been won by a consortium of Arabtec Construction UAE and Arabtec Construction Co Qatar, a statement said.

"The pace of construction at Msheireb Downtown Doha continues to accelerate and the involvement of Arabtec further asserts our commitment to the highest standards of quality, reliability and sustainability," said Mohammad Al Marri, chief officer for design and delivery at Msheireb Properties.

The mixed-use Msheireb Downtown Doha Phase 2 will have an estimated 99 residential units, 3,102 parking spaces, as well as commercial, retail, hotel, hospitality and community-based facilities.

It will include the region's first MGallery hotel as well as a mall covering around 42,000 sqm over four levels and featuring 100 stores, restaurants and a cinema.

Hasan Ismaik, managing director of Arabtec Holding, said: "It is an honour for us to be involved in such an esteened project and I would like to thank Msheireb Properties for providing us this exciting opportunity... We very much look forward to contributing to the continued developer of Msheireb Downtown Doha."

The Msheireb scheme will transform a 31-hectare site in the centre of Doha, recreating a way of living that is rooted in Qatari culture.

Due for completion in 2016, the mixed-use scheme will see Msheireb Properties construct more than 100 buildings to offer housing, workspace, cultural and community facilities, while preserving key heritage buildings.

It is the latest contract won by Arabtec following recent awards including the Abu Dhabi International Airport expansion and the Lakhta Centre in St Petersburg.

Last month, Arabtec Holding beat analysts' expectations despite posting a 10.5 percent fall in third-quarter profit.

The builder made a profit of AED35m ($9.5m) in the three months to September 30, compared with AED39.1m in the same period in 2011.

The builder has also gradually shifted its focus to Saudi Arabia and Qatar over the last few years as its home market of Dubai continued to be impacted by the property market collapse.

However, a gradual recovery has prompted some developers to restart stalled projects.