Shares in the Dubai builder rose by more than 5% after 100,000 housing units get green light by Egyptian government
Arabtec shares on Thursday rose by 5.24% after the Dubai builder said the first phase of a $40 billion housing deal in Egypt had finally been given the go-ahead.
The Dubai Financial Market-listed firm said the Egyptian government had approved the construction of 100,000 units, with the contract set to be signed soon, prompting Arabtec shares to rally to close at Dh2.41.
The news lifts at least some of the uncertainty surrounding a deal to build a million homes in the North African country, which Arabtec struck a year ago with the Egyptian army. Talks reportedly stalled over the number of units Arabtec would return to the Egyptian government in lieu of land payments.
“The company appreciates the Egyptian government’s approval of the initiative to implement the first phase of the project, consisting of 100 thousand units in the cities of Obour and Badr in the Arab Republic of Egypt,” Arabtec said in a bourse statement.
“Accordingly, the Company will, at the earliest opportunity, be signing the final contract for the first phase with the new Urban Authority of the Egyptian Ministry of Housing.”
Arabtec, Dubai’s largest listed builder, is 36.11% owned by Abu Dhabi government fund Aabar.