Arabtec unit awarded $706m Abu Dhabi construction contract

Dubai: Arabtec Holding has won a Dh2.59 billion ($706 million) contract in Abu Dhabi, adding to its burgeoning backlog as the largest construction company in the UAE benefits from a sharp revival in the real estate sector there.

The contract for a mixed-use development on Abu Dhabi’s Al Reem island was awarded to its subsidiary Arabtec Construction, the company said in a statement posted on Tuesday on the Dubai bourse website. The project will consist of a residential tower and a five-star hotel, construction work for which is scheduled to begin in the first quarter and will take three years to complete, it added.

With the new contract, Arabtec said its backlog in 2013 crossed the Dh33 billion mark — a record for the company, in which Abu Dhabi’s Aabar Investments is the single largest shareholder.

The UAE’s property market led by Dubai is witnessing a sharp recovery in prices on the back of a strengthening local economy and amid growing demand from investors seeking relatively safer assets amid unrest elsewhere in the region.