By Joanne Bladd
Deal for 726 apartments at Red Sea resort, deal part of bid to diversify order book
Arabtec Egypt, a unit of Dubai-based construction firm Arabtec Holding, on Sunday said it had received an order from Amer Group to construct the Hanging Gardens project in Egypt, a project valued at AED195m ($53.1m).
The project forms part of the Golf Porta Sokhna resort, a residential and mixed-use vacation resort that overlooks the Red Sea. The development consists of 726 apartments spread across six buildings.
The project has an anticipated completion period of 14 months.
“This award comes as part of the company’s strategy to diversify geographically outside of the UAE,” said Riad Kamal, CEO of Arabtec Holding, in an emailed statement.
One of the largest construction firms in the Gulf, Arabtec has been at pains to diversify its order book away from Dubai in the wake of a sharp correction in the property market there.
The firm has bid for contracts in countries as diverse as Azerbaijan, Turkmenistan and Angola, in addition to secure work closer to home in markets such as Abu Dhabi, Saudi Arabia and Qatar.
Earlier this month, Arabtec Saudi Arabia received an order from Saudi Binladin Group to construct 5,000 villas with an agreed value of SR5bn ($1.33bn).
At the end of the last quarter Arabtec Holding had a AED22bn order book backlog, its chief financial officer Ziad Makhzoumi said in a previous interview.
“At the end of the last quarter our backlog was AED22bn (around $5.98bn) including Russia,” he said in reference to a project to build a tower in Russia for Gazprom OAO.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.