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Oct 15 2012

Dubai's Arabtec Says Unit Wins AED423 Mln Contract in Abu Dhabi

Monday, Oct 15, 2012

DUBAI (Zawya Dow Jones)-- Arabtec Holding (ARTC.DFM), in which Abu Dhabi's Aabar Investments is the single largest shareholder, said Monday its construction unit was awarded a 423 million U.A.E. dirham ($115.3 million) contract in the U.A.E. capital.

Arabtec Construction received a letter of award to build 411 villas and associated external works for Baniyas Residential Development in Abu Dhabi for housing U.A.E. citizens, the Dubai-based company said in a statement posted on the emirate's financial market website.

Arabtec has won several Abu Dhabi contracts this year, including a $3 billion deal--in a consortium--to construct a terminal building at the emirate's international airport.

Hasan Abdulla, the company's managing director, noted Monday that "the emirate of Abu Dhabi is one of our very important clients".

Analysts expect Aabar's increased involvement in the construction company will boost its chances of winning more lucrative contracts in the oil-rich emirate.

Over the past three years, Arabtec has sought to expand its portfolio of projects in Abu Dhabi and abroad, including India and Egypt, as contracts dried up in Dubai and contractor margins were slashed to become more competitive as the global economic downturn took its toll.

Arabtec shares closed down 0.4% at AED2.6 Sunday.

Write to Nikhil Lohade at nikhil.lohade@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

15-10-12 0554GMT


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