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Tue 3 May 2011 03:28 PM

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DSI wins $49m Abu Dhabi deal, warns of ‘severe’ competition

UAE capital is second biggest contributor to DSI's order book, says CEO Khaldoun Tabari

DSI wins $49m Abu Dhabi deal, warns of ‘severe’ competition

Dubai-based
contracting giant Drake & Scull International won an AED180 ($49m) contract
for an unnamed government project in Abu Dhabi, the company said Tuesday.

The
contract takes DSI’s project wins to AED2.8bn as of May 2011, a rise of 200
percent on the same period a year earlier, the company said in an emailed statement.

The
UAE capital has become the second largest contributor to DSI’s order book as
key construction projects come online, CEO Khaldoun Tabari said.

“We
have observed significant progression in the momentum of project awards during
the first quarter of 2011,” he said. “As major urban projects are coming
onstream, we see severe competition.”

DSI
has been rapidly expanding its operations outside Dubai, where house prices
have plunged some 60 percent since their peaks in 2008 as a result of the
financial crisis, securing work in Egypt, Qatar and Oman.

The
company said in April it was eyeing acquisitions as it seeks to enter the competitive
Indian market later this year.

DSI
last month acquired the Riyadh-based International Centre for Contracting Co in
a deal valued at AED128m.The buyout marked the second acquisition by Drake in
Saudi after it bought 65 percent of Drake & Scull International Saudi WLL
for AED243m in November last year.

Drake
& Scull posted a net profit of AED162m for the twelve months to December
31, 2010, down from AED280m in 2009 as competition and acquisition costs took a
toll on revenues.

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