Dubai: Arabtec Construction, a subsidiary of Dubai-listed Arabtec Holding, has been awarded a Dh1.46 billion contract by Wasl Asset Management Group for the construction of a mixed-use tower in Dubai.
The 63-storey building, known as Wasl Tower, is located on Shaikh Zayed Road and is being developed by Wasl. The tower will also house a Mandarin Oriental hotel, which is due to open in November 2020.
“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 chief executive officer of Arabtec Holding, in a statement on Sunday.
He added that the repositioning of the company coupled with catalyst events such as the Expo 2020 will provide Arabtec with a path to a “sustainable future”.
Arabtec currently has a project backlog of around Dh17 billion.
The company is in the middle of a recapitalisation programme that aims to turn around financial performance. It launched last week a Dh1.5 billion rights issue, on which trading ended on Sunday. The rights issue will be followed by a capital reduction plan to extinguish Dh4.6 billion in accumulated losses.
Arabtec’s share prices ended on Sunday 10.8 per cent higher to reach Dh0.792.
