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Thu 6 Nov 2008 12:18 PM

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UK's Carillion expects to double GCC revenues

UK's second largest builder predicts $1.6bn run rate by end of 2009, as part of joint venture.

Carillion, the UK’s second biggest builder, revealed on Thursday it is on track to double revenues from its operations in the GCC and North Africa to a run rate of more than 6 billion dirhams ($1.6 billion) by the end of 2009.

Al-Futtaim Carillion, which is 49 percent-owned by the British company, said it had been selected for contracts totalling 3.6 billion dirhams of major construction work in Dubai and Abu Dhabi.

In Dubai, Al-Futtaim Carillion has just won a contract with the German Business Park FZCO to deliver its German Business Park project, which is expected to be worth more than 600 million dirhams and completed in less than two years.

In Abu Dhabi, the company said it signed a heads of terms agreement for an 3 billion dirham long-term contract to build the Al Muneera phase of Aldar's 60 billion dirham Al Raha Beach development.

Due for completion in April 2011, the contract will involve the building of a 14-storey office building, eight 14-storey apartment buildings, 148 townhouses and 11 luxury villas facing the development's canal and waterfront.

It is Al-Futtaim Carillion's second major project for Aldar in Abu Dhabi, having been awarded a 1.5 billion dirham contract for the Race Track Hotel on Yas Island in June of this year.

The announcements followed the visit to the UAE by UK Prime Minister Gordon Brown and Lord Mandelson, the UK's Secretary of State for Business, Enterprise and Regulatory Reform.

Lord Mandelson said: "In the current climate it is even more important than ever that we seize every opportunity for long-term economic growth. Al-Futtaim Carillion is already a leading contractor in the Gulf. These two agreements representing £600 million ($952 million) of business will make an important contribution to the economies of both the UK and the UAE."

Carillion chief executive John McDonough said the company looked forward to supporting delivery of Aldar’s development programme in Abu Dhabi over the next 10 years.

He said: "Our order book and pipeline of probable new orders in the Middle East remains strong and we are firmly on track to achieve our previously announced objective of broadly doubling the sales revenue of our joint venture businesses in the region to an annual run rate of over 6 billion dirhams by the end of 2009, of which Carillion's share will be over 3.6 billion dirhams."

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