DUBAI, May 23 (Reuters) - Dubai-based contractor Arabtec

ARTC.DU , part-owned by Abu Dhabi state fund Aabar Investments, will begin subscription for a $650 million rights issue on June 9, the UAE's market regulator said on Thursday.

The company got regulatory approval to "start subscription in new capital shares," according to a statement from the Securities and Commodities Authority (SCA).

Arabtec had said in March that the fundraising was part of a five-year expansion plan, which could include a further capital increase of $650 million by the end of 2014 if needed. [ID: nL6N0CCA5F]

Arabtec, builder of Dubai's famous palm islands, replaced its chief executive earlier this year in a shake-up led by Aabar, its largest shareholder, which has been tightening its grip on the group. ID:nL6N0BR6QK

(Reporting By Mirna Sleiman; Editing by Dinesh Nair)

((Mirna.Sleiman@thomsonreuters.com)(+971559374644)(Reuters Messaging: mirna.sleiman.thomsonreuters.com@reuters.net))

Keywords: EMIRATES ARABTEC/