Dubai's Arabtec may merge with Kuwait, Saudi firms - report

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Dubai's largest contractor Arabtec Holdings is in merger talks with Kuwait's Combined Group Contracting Co and Saudi Arabia's Saudi Oger to create a pan-Gulf construction firm, Kuwaiti newspaper Al-Qabas claimed on Wednesday, citing unnamed sources.

Arabtec last week reported it had swung to a profit in the second-quarter, on the back of business growth in Saudi Arabia and the United Arab Emirates.

Arabtec, part-owned by Abu Dhabi state fund Aabar Investments, made a second-quarter net profit of AED92.4m ($25.16m), compared with a loss of AED11.6m in the corresponding period in 2012, it said in a bourse statement.

The earnings beat average estimate of five analysts polled by Reuters who expected a quarterly profit of AED51.5m.

Revenue for the second-quarter was AED1.6bn against AED1.3bn in the prior-year period.

Arabtec, which raised $650m through a rights issue in July to support its expansion plans, has won a series of contracts this year especially in oil-rich Abu Dhabi where its top shareholder and state investment firm Aabar is based.

Arabtec has won a series of contracts this year, especially in oil-rich Abu Dhabi where its top shareholder and state investment firm Aabar is based.

It also won new contracts in Kazakhstan, Saudi Arabia, Egypt, Jordan and has an order backlog of AED24.4bn, it said in the statement.

The company said that its agreed joint venture with Korea's Samsung Engineering that was announced in April is still in the process of being finalised.

Arabtec shares fell 2.8 percent in Dubai bourse on Thursday ahead of the results. They have risen 34.4 percent year-to-date.

An Arabtec spokesperson was not immediately available for comment when contacted by Arabian Business.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

Qatar's labour requirements

Qatar's labour requirements

Qatar’s Supreme committee has published worker welfare standards...

$40bn housing deal may signal Gulf investment push into Egypt

$40bn housing deal may signal Gulf investment push into Egypt

Egypt's economy is recovering only slowly from the turmoil that...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew