By Joanne Bladd
Credit crunch has left firm struggling to 'raise the appropriate finance', expects deal in 2011
Abu Dhabi-based Al Jaber Group is in talks with lenders to alter terms on its debt.
The company, which has AED16bn ($4.4bn) in projects and assets of more than $5bn, expects to reach an agreement with its lenders in 2011, it said in an emailed statement to Bloomberg.
The company “found it difficult to raise the appropriate finance to secure additional work and maintain its expansion in the region” because of the credit crisis, it said.
The Abu Dhabi based holding company is predicting growth of between four and five percent next year, as internal restructuring crimps growth, its COO told Arabian Business earlier this month.
“We won’t see big growth in 2011, [around] 4-5 percent compared to 2010,” said Fatima Al Jaber, COO. “In 2011 we’re looking at consolidating some of our businesses internally [and] looking into reevaluating our resources one way or another.”
Al Jaber said the firm’s building subsidiary, Al Jaber Building, will be involved in the restructuring but declined to give further details.
“I think we’ll be more focused on ensuring that our resourcing policy is cost effective,” she said.
The group, which employs more than 50,000 staff, plans to expand its operations in Saudi Arabia and Qatar. Al Jaber added.