Arabtec’s recovery on the stock market
continued to have a positive effect on the Dubai Financial Market (DFM), with
both ending the day on double-digit gains.
Dubai's main index climbed 4.41 percent
as shares in Arabtec jumped 14.7 percent.
Among other top gainers on Sunday were Gulf
General Investments Company (GGICO), up 13.8 percent; the bourse operator Dubai
Financial Market, up 12.5 percent and Union Properties (also recovering from a
significant drop last week), which was up 10.5 percent
The main loser on the DFM was Almadina
for Finance and Investment Company, which was down 9 percent.
Last week’s Arabtec press conference appears to be having the desired effect on the
Chairman of the company, Khadem Al
Qubaisi, assured investors that there would be no delisting of Arabtec from the
DFM, and no cancellation of projects, which he said are “all going according to
Despite a recent drop in shareholding by
Aabar, he said the state-backed investment company will look at increasing its
stake in the future.
“The cooperation between Arabtec and
Aabar is very strong and now I think we are reaching an era where it is
stronger than before,” he said.
While further assurances were given
about its relationship with Samsung Engineering, he said Arabtec would
restructure and “focus on the core business, which is construction”.
When asked about the share price, Al
Qubaisi said: “I’m not going to talk about the share price. At the end of the
day, my job is to manage this company and my job is to report to the
shareholders and to be transparent with the shareholders.
“My advice to the shareholders is to
study the company very well to reach the target or the price based on the
studies, not based on speculation.”
Meanwhile, the change in management at
Arabtec will not affect any future joint-venture bids with Samsung Engineering,
the South Korean construction giant has said.
Speaking to The National newspaper, a
spokesperson said the company has been aware of developments at the UAE
“Samsung has been in steady contact with
Arabtec. Even though there are changes in the top management of Arabtec, there
will be no impact on the [joint venture]. The project proposals will be
executed as planned,” a spokesman for Samsung Engineering told The National.
The joint venture was signed last
September, aimed at targeting large-scale oil & gas and infrastructure
projects in the region.