Arabtec Wins Dhs810m Contract In Dubai

Dubai contractor Arabtec, part-owned by Abu Dhabi state fund Aabar, won a project worth Dhs810 million ($220.5 million) to build a five-star hotel and serviced apartment tower in Dubai, it said in a bourse statement on Wednesday.

Arabtec Holding expects a series of recent contract wins to boost its 2013 earnings and the firm is targeting a dividend payout of at least 10 per cent for the year, its chief executive said.

The company, which diversified to other Gulf states amid Dubai’s property downturn, has won several contracts in recent months, especially in oil-rich Abu Dhabi where its top shareholder and state investment firm Aabar is based.

It is currently part of a consortium building a $2.9 billion airport terminal in Abu Dhabi and a branch of the famous Paris Louvre museum.

“We are now starting work on several projects, so the company should see a positive impact on earnings towards the end of the year,” Hasan Ismaik, Arabtec’s chief executive officer said in the statement.

A planned dividend payout of at least 10 per cent per annum is expected to take effect from 2013, he said. The company did not pay a dividend in 2012.

Ismaik was appointed as CEO in February as part of a management shake-up led by Aabar, which has been tightening its grip on the group.

The new management announced plans for a $1.8 billion capital increase as part of its expansion strategy and also inked a joint venture deal with Korea’s Samsung Engineering Co.

The company is set to begin subscription for a $650 million rights issue on June 9.