Business | Construction
Arabtec's backlog to reach Dh40.4 billion by 2013
Arabtec's backlog in the first quarter of 2009 stood at Dh18.8 billion but did not include the Dh10 billion Okhta Centre project in Russia.
- By Suzanne Fenton, Staff Reporter
- Published: 22:48 July 2, 2009
Dubai: Arabtec Holding expects to double its backlog from Dh20.2 billion in 2009 to Dh40.4 billion by 2013.
The GCC has been relatively more resilient compared to other parts of the world due to high levels of reserves.
Arabtec's backlog in the first quarter of 2009 stood at Dh18.8 billion but did not include the Dh10 billion Okhta Centre project in Russia.
"The expected increasing population in the region puts extra burden on infrastructure facilities, demanding spending on meeting infrastructure needs. With more businesses going bankrupt in Europe and the US, highly skilled workers have been eyeing the move to the GCC, where the market is still rather intact," the HC Securities report noted.
However, due to a number of projects suffering delays and even cancellations in some cases, Arabtec's backlog has fallen from Dh57 billion to Dh28.8 billion, including the project in Russia.
Arabtec announced total group profits of Dh945 million as of December 31, 2008, a 77 per cent increase from Dh535 million at the end of 2007.
Of an industry worth around $1.4 trillion, $698 billion worth of civil construction projects are still going ahead, despite the economic situation.
However, 52.8 per cent of civil construction projects have been put on hold as the financial downturn takes its toll on the UAE's previously unstoppable construction industry.
The report adds that around $75.3 billion of projects were either put on hold or cancelled in 2008.
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