Dubai’s Drake & Scull said on Monday that it had won a contract worth QAR400 million ($110 million) for mechanical, electrical and plumbing work at the Mall of Qatar, which is now under construction near Doha.
Work on the project is scheduled to start in the first quarter of next year and is slated for completion in June 2015, the company said in a statement on Dubai’s bourse.
Shares in Drake & Scull, which are up 93 per cent year-to-date, have been buoyed by speculation of a possible merger with Arabtec as well as by Dubai’s strengthening economy and real estate market, and expectations that the firm may win contracts related to Dubai’s hosting of the 2020 World Expo.
However, Dubai’s Arabtec denied last week what it called “recent market and media speculation” that it was looking to buy Drake & Scull.
“Arabtec Holding confirms that there have been no discussions between the management of both companies about a potential deal, and there are no current plans to acquire Drake & Scull either in full or in part,” it said in a bourse filing.
In May, Drake & Scull’s chief executive Khaldoun Tabari said he had no plans to sell his stake in the company, though he added that there would be more partnerships on projects with Arabtec.