By Ed Attwood
Dubai’s largest builder saw net profit of $7.9m for the period, but expenses nearly doubled
Arabtec, Dubai’s largest builder by market value, saw its profits fall by 74 percent in the second quarter as general and administrative expenses soared.
The Dubai firm said made a net profit of AED28.9m ($7.9m) for the three months ending June 30, down from AED11.1m in the year-earlier period, as expenses nearly doubled to AED94.1m.
The construction major also saw revenue drop by 5.1 percent to $331m, Arabtec said in a statement to Dubai’s bourse on Sunday.
In the first quarter, Arabtec saw its profits slump by 80 percent due to falling revenues and the drying up of work in the UAE, its core market.
The company currently has a backlog of projects worth around AED15bn ($4.08bn) in all of its markets by the end of the year, but it is increasingly looking to expand overseas to diversify away from Dubai's once-booming property sector, which has been blighted by oversupply and a lack of demand, with developers slowing or cancelling projects.
Arabtec said in June it would expand its Saudi workforce to 25,000 as it hopes to make the Gulf state 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.
Emaar Properties awarded Arabtec’s Egyptian subsidiary a $36.8m contract to build 170 villas at the end of June.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.