UAE's biggest contractor plans to sidestep Dubai downturn by targeting other Middle Eastern markets
Arabtec Construction, the UAE's largest contractor, has announced that it is targeting Saudi Arabia and Egypt in a bid to swerve the Dubai downturn.
In Saudi it has signed a deal with CPC Services Company, a member of contractor Saudi Bin Laden Group, and Prime International Group Services, a subsidiary of a Saudi investment company, to establish Arabtec Saudi Arabia.
The company has an ambitious plan for Saudi. It said: “Arabtec feels that through this alliance, Arabtec Saudi Arabia has the potential of becoming one of the leading construction companies in the kingdom, especially given the enormous volume of projects announced recently by his majesty King Abdulla Bin Abdul Aziz Al Saud to be completed over the next few years.”
In Egypt Arabtec revealed it is bidding for five large projects, in Cairo and elsewhere.
The company is changing tack because of the downturn in the UAE, particularly Dubai. Analysts say that both Saudi and Egypt offer more stability as construction markets as they have stable native populations, as opposed to the UAE's population which is 80% expats.