Arabtec expands in Egypt following Dubai losses

Firm awarded US $53 million contract to deliver Hanging Gardens project

Arabtec, Amer Group, Hanging Gardens, Golf Porto Sokhna, riad kamal

A contract worth US $53 million has been awarded to Arabtec Holding Co to deliver Amer Group Holding’s Hanging Gardens project. 
The Golf Porto Sokhna project will be a 2.2 million m² residential mixed-use resort, featuring 726 apartments and Egypt’s only 18-hole mountain-top golf course.
The joint project follows a difficult year for the Dubai-based firm, which has seen a 16.4% decline in share prices, according to Bloomberg.
Revenues are expected to fall from around $2 billion in 2009 to between $1.5 and $1.75 billion in 2010 and as a result the company is looking to move into stronger markets. Net profit for Q2 dropped 40%.
“This award comes as part of the company’s strategy to diversify geographically outside of the U.A.E.,” chief executive Riad Kamal said in the statement.
"The point is to facilitate our entry into the Egyptian market by working with a partner. We aim to be one of the leading contracting firms that can compete in this market," he added.
The Egyptian government say the strength of the industry in Egypt has helped the economy grow 5.6%, with the construction sector alone expanding 12.5% in the third quarter.

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