Shareholders of Dubai-based developer Arabtec, part owned by Abu Dhabi state fund Aabar Investments, approved a $1.8 billion capital increase program, paving the way for its regional expansion plans, the company said on Sunday.
Arabtec, one of the builders of Dubai’s famous palm islands, replaced its chief executive last month in a management shake-up led by Aabar, its largest shareholder, which has been tightening its grip on the group.
The company had said previously that the funds would be raised through a rights issue and debt issuances. It plans to raise the money in stages with Dhs2.4 billion ($653.46 million) to be raised through a rights issue before the end of June.
The company will use the cash raised from shareholders across four of its business areas. Some 55 per cent will help to support growth in its oil and gas, infrastructure and power business and 25 per cent will go on building affordable housing projects.