Arabtec will set up 5 subsidiaries
Dubai-based builder Arabtec Holding, in which Abu Dhabi state fund Aabar owns a major stake, said on Sunday it would set up five new subsidiaries as it expands into new markets and infrastructure projects.
The move follows Arabtec's strategic decision to evolve from a local contractor into a multinational development company as its finances are boosted by its relationship with Aabar and a recovery in Dubai's property market.
Two of the units will focus on infrastructure projects inside and outside the United Arab Emirates, one will focus on water and energy projects and one will concentrate on the Egyptian market, it said in a bourse statement.
Arabtec's shares rose 1.6 per cent in the early morning trading on Sunday following the announcement.
Arabtec will also set up an investment firm, Arabtec Capital, to provide financial services both to other Arabtec units and outside companies.
Arabtec has been expanding aggressively since the arrival of a new chief executive, Hasan Abdullah Ismaik, early last year. He was backed by Arabtec's biggest shareholder, Abu Dhabi's Aabar.
The fund has a 22 per cent stake in Arabtec and last week signed a $6 billion contract with the firm.
Arabtec has also won a series of other contracts in Abu Dhabi, including high-profile projects such as development of Abu Dhabi's main airport and the Louvre museum there, since Aabar began building a major stake in the firm in 2012.
Expanding abroad, Arabtec secured a $1.55 billion contract to build a resort in the Aqaba area of southern Jordan last month.
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