Abu Dhabi: The chief executive officer of Arabtec Holding, the UAE's largest construction company by market capitalisation, said yesterday it is owed dues of Dh3.6 billion with Dubai government and quasi-government entities owing 80 per cent of the total dues.

"The outstandings for Arabtec stand at Dh3.6 billion& 80 per cent of this outstanding amount is owed by Dubai government and quasi-government entities," Riad Kamal told reporters on the sidelines of a news conference here.

At the news conference, Abu Dhabi-based International Capital Trading (ICT) announced the award of a Dh1.6 billion contract to a joint venture comprising Arabtec Construction LLC and National Projects and Construction LLC.

Shares of Arabtec on the Dubai Financial Market (DFM) rose on the news of contract award. Arabtec shares ended yesterday 7.95 per cent higher at Dh2.55 a share.

"The total (project) development cost, inclusive of everything, is Dh2 billion," said Haytham D. Haidar, the chief operating officer at ICT.

"Given the current market conditions, we are confident that our decision today emphasizes the faith we have in the foundations that underpin the economy of our emirate and the Abu Dhabi market," said Hamad Abdullah Al Shamsi, ICT's chief executive officer.

He said the Corniche project will be funded partly through equity and through borrowings from a consortium of banks comprising the Abu Dhabi Commercial Bank, First Gulf Bank and the National Bank of Dubai.

The development on the Abu Dhabi's Corniche includes two buildings comprising a 64-storey residential tower, a 50-storey hotel and office tower and a retail podium. The entire project is to be completed by the last quarter of 2011.

The cost of the Abu Dhabi project was revised downward from Dh2.7 billion - Dh2.8 billion estimated last year.

Separately, Arabtec's Kamal said the company's backlog of projects is currently valued at Dh28.4 billion compared with a backlog valued at around Dh44 billion about the same time a year ago.

He said Arabtec has been short-listed for two projects cumulatively valued at Dh3 billion in Abu Dhabi. As well, he said Arabtec has projects in Saudi Arabia, Doha, Syria and Jordan.

"We are bidding for projects in Lebanon, Libya and Algeria," said Kamal, adding that a proposed $3 billion project in Russia will be finalised by the end of this month.

Kamal said he expects the construction industry to come out of the slump by the end of this year.