Kingdom, UAE key growth markets in GCC, says DSI

18 April 2013
RIYADH - Dubai's Drake & Scull International (DSI) has been awarded a set of contracts in Saudi Arabia and the UAE worth $180 million.

The company said the engineering and general contracting contracts are for three government complexes in Makkah, Abu Dhabi and Sharjah.

DSI said it is currently gearing its operations to mobilize on projects sites immediately.

The estimated completion date for the government facility in Abu Dhabi is Q1 2015 whereas the facilities in Makkah and Sharjah are due for handover in Q4 2013 and Q2 2015, respectively.

Khaldoun Tabari, CEO of Drake & Scull International, said: "Saudi Arabia and the UAE continue to be our main growth markets in the GCC as we have managed to secure a series of consecutive contracts in these areas year to date.

"These latest projects will shortly start contributing to the revenue stream and profitability of the company as productivity on site increases."

The company closed last year with a record high backlog of AED9.1 billion.

The contracts are the latest wins for the company which also include a $49.1 million mechanical, electrical and plumbing contract for a residential development in Qatar.

It is the latest in a series of multimillion deals successfully sealed by the wholly owned subsidiary of Drake and Scull International (DSI), a regional market leader in the integrated design, engineering and construction segments of civil contracting, mechanical, electrical and plumbing (MEP), water and power, rail and oil and gas.

"This latest project will definitely push our momentum towards the second quarter of this year and beyond as we benefit from market drivers such as the upcoming World Cup and aggressive national development initiatives," Karem Akawi, area general manager, Drake and Scull Qatar, said.

He said mobilization on the latest project will start immediately with an estimated completion date set for the fourth quarter of 2014.

Doha, in particular, will continue to see major infrastructure projects emerge this year and "we are well equipped to compete in major tenders, particularly in the MEP and utilities sectors this year," he added.

Earlier this year, Drake and Scull Qatar was awarded a QR304 million contract for the design, supply, installation and commissioning of all MEP works of a mixed-use real estate development project in Doha.

In February, Drake & Scull Qatar, a unit of DSI, also won a QR304 million ($83.5 million) contract for a mixed-use development project in Doha.

DSI reported a higher fourth-quarter profit in February as the firm's projects in Saudi Arabia gained momentum.

The company, in which Goldman Sachs bought warrants worth $40 million, reported a fourth-quarter net profit of $12.5 million, the company said in a statement on Dubai's bourse.

© The Saudi Gazette 2013


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