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Sun 9 Feb 2014 09:59 AM

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Dubai's Arabtec Holding says will set up five new subsidiaries

Two units will focus on infrastructure projects inside and outside the UAE, others will focus on water and energy project and Egypt

Dubai's Arabtec Holding says will set up five new subsidiaries

Dubai-based builder Arabtec Holding, in which Abu
Dhabi state fund Aabar owns a major stake, said on Sunday it would set up five
new subsidiaries as it expands into new markets and infrastructure projects.

The move follows Arabtec's strategic decision to
evolve from a local contractor into a multinational development company as its
finances are boosted by its relationship with Aabar and a recovery in Dubai's
property market.

Two of the units will focus on infrastructure
projects inside and outside the United Arab Emirates, one will focus on water
and energy projects and one will concentrate on the Egyptian market, it said in
a bourse statement.

Arabtec's shares rose 1.6 percent in the early
morning trading on Sunday following the announcement.

Arabtec will also set up an investment firm,
Arabtec Capital, to provide financial services both to other Arabtec units and
outside companies.

Arabtec has been expanding aggressively since the
arrival of a new chief executive, Hasan Abdullah Ismaik, early last year. He
was backed by Arabtec's biggest shareholder, Abu Dhabi's Aabar.

The fund has a 22 percent stake in Arabtec and last
week signed a $6 billion contract with the firm.

Arabtec has also won a series of other contracts in
Abu Dhabi, including high-profile projects such as development of Abu Dhabi's
main airport and the Louvre museum there, since Aabar began building a major
stake in the firm in 2012.

Expanding abroad, Arabtec secured a $1.55bn
contract to build a resort in the Aqaba area of southern Jordan last month.

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