#24 Arabtec Holding
The largest market listed construction contractor in the UAE has known better days. Arabtec, in a joint venture with Samsung E&C, built the worlds tallest building, Burj Khalifa, for Emaar Properties and the company has collaborated with Dubais largest developer on many other noteworthy projects.
However the company has suffered in recent years. It booked a $640mn loss in 2015 and recently posted its sixth straight quarterly deficit. The contractor blamed increased costs and tough market conditions for a loss of AED 46.4mn ($12.6mn) in the three months to March 31, though that was an 83 percent improvement compared with a loss of AED 279.8mn in the corresponding leg of 2015. Revenue for the period rose to AED 1.94bn from AED 1.79bn a year earlier.
Arabtec is currently undergoing a restructuring and has hired AlixPartners as an advisor for the process. The company is looking at streamlining its operations by shedding a number of related businesses to focus on its core capability of construction.
Despite the tough times the company has managed to add four good project wins so far this year, including a AED 1.7bn ($462m) contract to build a 1,100 unit villa project for UAE nationals in Fujairah. It was also awarded a AED 1.1bn contract to build a 50-storey twin-tower project in Dubai. Earlier this year, Arabtec was awarded a contract to build Bahrains new $1bn airport terminal in partnership with TAV Construction. And the year began with a AED 2bn project to build 1,017 villas for Aldar Properties as part of its prominent West Vas development, in Abu Dhabi. Things are beginning to look up.
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