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Wed 4 Jan 2012 10:38 AM

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Arabtec inks $152m deal for Dubai airport expansion

Win is part of Dubai Airport’s plan to splash nearly $6bn on growth by 2020

Arabtec inks $152m deal for Dubai airport expansion
Ziad Makhzoumi, CFO of Arabtec Holding

Dubai's Arabtec Construction, a unit of Arabtec Holding,
said on Wednesday it had won a AED561m ($153m) contract for the expansion of
Dubai International Airport.

The project, which includes structural works, engineering,
mechanical and site works for Terminal 2's expansion, will take 25 months, the
company said in a statement to the Dubai bourse.

The contract win marks Arabtec’s twelfth in the civil
aviation sector, the company said, and forms part of Dubai Airport’s plan to
invest nearly $6bn in expanding its terminals by 2020.

Parent company Arabtec Holding posted third quarter net
profits of AED39.1m
($10.6m) in October, up from AED6.8m a year earlier, but
did not specify a reason for the jump in net profit.

The firm said revenues for the period were AED1.1bn, down
from AED1.3bn a year earlier.

Arabtec was among dozens of contractors that bore the brunt
of Dubai’s property collapse in late-2008. More than half of developments in
the city were scrapped or put on hold in the wake of the financial crisis,
leaving construction firms scrabbling for cash as project finance dried up.

Arabtec told Arabian Business in September it had yet to
receive 60 percent of the money it is owed for projects completed before the
onset of the global financial crisis.

The company said in October it had a backlog of projects
worth around AED15bn ($4.08bn) in all of its markets, as it seeks to expand
outside its domestic market

Arabtec said last year it plans to increase its Saudi
workforce to 25,000 in bid to make the Gulf kingdom its largest market. The
company is also bidding for work in Qatar, as the tiny Gulf country prepares
infrastructure for the soccer World Cup in 2022.

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