Dubai’s DSI says capital reduction to be completed by end of Q3

Dubai-based contractor Drake & Scull International (DSI) expects to complete a plan to reduce its capital by 75 percent by the end of the third quarter, deferring the process by one month, its chief executive said on Sunday.

“The capital reduction is to allow the capital injection to come in and that’s a positive as it will allow us to win new work and carry on,” chief executive Wael Allan told reporters on the sidelines.

Read: Dubai’s Drake and Scull to talk with banks about existing debt

Acting chief financial officer Feras Kalthoum said DSI’s business has not been affected by Qatar’s rift with some of its Gulf neighbours, but it is not bidding for new business in that country.

He said the company has not received any official guidance about doing business in Qatar.

DSI been battling a depressed Gulf construction market, as governments rein in spending on infrastructure schemes after oil prices declined.