Arabtec Construction, the UAE’s largest contractor by market value, has started groundwork on its first building project in Saudi Arabia, according to chairman Riad Kamal.
Excavations started last week on a development in Riyadh, while the company was already eyeing further opportunities for contracts in the country, Kamal said in an interview.
“The potential is excellent for us in Saudi,” said Kamal, without specifying the details of the Riyadh project.
Its first few contracts were already in place through CPC Services, one of its partners in the kingdom, but thereafter Arabtec hoped to bid for new tenders itself, Kamal said.
The company announced last month it had formed a joint venture with CPC Services, a member of the Saudi bin Laden Group, and Prime International Group Services, to take advantage of ongoing infrastructure and construction spending in the country.
Arabtec has a 45 percent stake in Arabtec Saudi Arabia, with CPC and Prime holding 35 percent and 20 percent respectively.
Turnover for the new subsidiary in its first year would be around $400m, expected to grow to around $934m in two years, said Kamal.
It has already relocated a 60-strong management team from its Dubai headquarters to Saudi and was in the process of moving a labour force of 2,000 to the kingdom.
Arabtec Construction, a subsidiary of Arabtec Holding, is keen to tap growth opportunities in the Gulf’s largest economy as Dubai's property sector slows.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.
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