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Drake & Scull Wins New $720m Saudi Contract

Drake & Scull Wins New $720m Saudi Contract

The contract is to build the third phase of the Jabal Omar development in Mecca.

Dubai’s Drake & Scull International, in which Goldman Sachs bought warrants worth $40 million, said its joint venture with Arabian Construction Co won a new contract in Saudi Arabia valued at 2.7 billion riyals ($719.96 million).

The contract is to build the third phase of the Jabal Omar development in Mecca, Drake said in a statement on Dubai’s bourse.

The company, which specialises in mechanical, engineering and plumbing operations, said its share will be 50 per cent of the overall value of the contract.

The third phase of the Jabal Omar scheme will involve the construction of four hotel towers with a total built up area of 400,000 square metres. The Towers will also include a five-star and three-star hotel.

Drake has been gradually expanding its operations outside of Dubai following a slowdown in the emirate’s once-booming real estate sector. It has announced a series of contract wins this year in Abu Dhabi and Saudi Arabia.

The contracting firm’s third-quarter profit plunged 93 per cent, widely missing analysts’ forecasts as it hard hit by higher costs and falling contract revenue.

Shares of Drake have dropped 6 per cent this year.

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