Contractor to build five-star hotel in the media district
Arabtec Holding, the Dubai-listed construction contractor, has said that it has been awarded a $92.56 million contract for the execution of a five-star hotel in Dubai.
The announcement was made in a statement released to the Dubai Financial Market, where it is listed. However, the contractor did not provide further details about the project, who the client was or what the timeline for development was.
The building is expected to be built in Dubai Internet City or the immediately adjacent Dubai Media City free zone.
Arabtec has recently won a number of projects, part of an effort by the contractor to seek more construction contracts to increase revenues and turn around its financial performance.
In August, the company reported $63.43 million in losses attributable to owners for the first half of 2016. This was a significant improvement on the $271.7 million in losses reported for the first half of 2015.
Despite this, the figures were over three times higher than the $16.33 million losses the market was expecting from the contractor. Arabtec has said that it hopes to break even in 2016, with a return to profitability targeted in 2017.
In September 2016 it was revealed that Tasameem Real Estate, an Abu Dhabi-based company owned by Sheikh Mansour bin Zayed Al Nahyan, had become the second-largest stakeholder in the builder, with 8.29% of the company owned.
Former chief executive Hasan Ismaik was previously the largest stakeholder in the company, with 12% of shares. However, he is no longer listed as one of the company’s biggest shareholders on Dubai Financial Market. Aabar Investment continues to hold 36.11% of the contractor.