Dubai’s Arabtec wins $400m contract to build 2020 Tower

Dubai-based contractor Arabtec has announced the securing of a Dhs1.46bn ($397.4m) contract from Wasl LLC for the construction of the 63-storey 2020 Tower in Dubai.

In a bourse filing Arabtec, which appointed a new CEO of its construction subsidiary earlier this month, said the contract was awarded based on its track record of delivering mixed-use developments.

Read: Dubai’s Arabtec appoints new CEO of construction subsidiary

The building, previously known as Wasl Tower, is set for completion in 2020 and includes a Mandarin Oriental Hotel.

Read: Mandarin Oriental announces plans for second Dubai hotel

“The long term outlook for the construction and engineering sector in our key geographic markets remains positive, especially in the UAE, where the majority of our projects are located,” said Hamish Tyrwhitt, group CEO of Arabtec Holding

“With the combination of the strategic repositioning of the business, strong industry fundamentals and catalyst events such as Expo 2020 fast-approaching, we believe that the year ahead will see Arabtec continue on its path to a successful and sustainable future.”

Arabtec is seeking to return to growth after reporting its first quarterly profit since 2014 earlier this month.

It made a net profit attributable to shareholders of Dhs18m ($4.9m) in the three months ending March 31, compared to a loss of Dhs46.4m in the prior-year period.

Read: Dubai’s Arabtec reports first quarterly profit since 2014

The company is also undertaking a Dhs1.5bn rights issue, which officially ends today, as part of a recapitalisation plan.

The company has a project backlog worth approximately Dhs18bn ($4.9bn), equivalent to more than two years of revenue, it said.