UAE's Arabtec wins contract worth $245 mln in Kuwait

Reuters, Tuesday 8 Feb 2011

Dubai builder Arabtec won a 900 million dirhams ($245.1 million) contract to build part of a university complex in Kuwait, the company said in a statement on Tuesday.

The largest builder in the United Arab Emirates by market value said 60 percent of the Sabah Al-Salem University will be built by the company and the work is expected to be completed in 42 months. It will work on the project along with Kuwait's Combined Group Contracting Company.

The entire project is estimated to be worth 1.5 billion dirhams ($408.5 million). Arabtec will construct four buildings, each having six floors.

Arabtec is expanding overseas to diversify its portfolio away from Dubai's once-booming property sector which has been hit hard by the global financial crisis, as developers slow or cancel projects and jobs are slashed.

The builder won contracts worth 356 million dirhams ($96.92 million) to build an underground car park in Abu Dhabi and residential villas in Egyptlast month. 

The company looks to seek approval from its shareholders for a capital raise through a rights issue of 398.67 million shares at 1 dirham a share. It will also decide on the sale of five-year $150 million worth convertible bonds.

Arabtec shares rose 0.6 percent in early Dubai trade at 0640 GMT. The broader index .DFMGI was down 0.2 percent.

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