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

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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.

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