ICD-controlled Ssangyong wins Royal Atlantis contract, eyes expo, world cup projects

Investment Corporation of Dubai acquired a controlling stake in the firm last year

South Korea’s Ssangyong Engineering & Construction has reportedly won the contract to build the new $1.4bn Royal Atlantis resort on the Palm Jumeirah alongside Belhasa Six Construct and is eyeing a number of regional projects.

The Kohn Pedersen Fox- designed hotel complex will include 780 guest rooms and suites and 232 serviced residents.

At the end of last year, Korean media reported that Ssangyong had won $1.6bn of deals in Dubai. This was said to include the Royal Atlantis, a $370m unnamed office building and the $386m Palm Gateway project.

“It is very meaningful for us to secure a construction project in Dubai again, our first deal in 13 years,” a Ssangyong E&C spokesman told The Korea Times. “The city is full of skyscrapers and dozens more will be built in the coming years. We were able to secure mega projects base on our advanced knowhow and expertise in constructing artistically-shaped, high-rise structures over the years. We will continue to win more deals in the UAE and nearby Middle Eastern countries.”

However, according to UAE daily The National, the company has not yet landed the deal to build the three-tower Palm Gateway complex above the Palm Monorail Gateway terminal.

The company had submitted a bid alongside joint venture partner China State Construction Engineering Corporation but Nakheel is still in the process of evaluating bids, Middle East managing director, Joon Hun Kim told the paper.

Ssangyong made a loss on its last regional project the Grand Hyatt in 2003, and had since concentrated on projects in South Asia including Singapore’s famous Marina Bay Sands Hotel.

Investment Corporation of Dubai acquired a controlling stake in the company in January 2015 for an estimated Dhs 666.7m after financial problems in its home market led the company to apply for receivership to reschedule its debts in 2013.

Kim told The National the ICD acquisition had given the company more confidence in applying for regional projects, including airports and infrastructure. He said it was interested in participating in Expo 2020 projects, and the construction of two or three Qatar 2202 FIFA World Cup stadiums in a joint venture with Saudi Binladin Group.

Last month, Ssangyong was also named as the main contractor for the $1bn ICD Brookfield Place tower being built at DIFC, in a joint venture with Brookfield Multiplex.