| 18 June, 2017

Dubai's Drake & Scull close to signing 3 new projects - CEO

Dubai-based building company Drake & Scull International also said it had not seen any impact from ongoing tensions in Qatar.

Image used for illustrative purpose.
Labourers work at a construction area in Dubai .

Image used for illustrative purpose. Labourers work at a construction area in Dubai .

REUTERS/Ahmed Jadallah
18 June 2017

Dubai-based building contractor Drake & Scull International PJSC (DSI) is close to signing three new projects, the company's CEO said on Sunday.

"We are almost near signing on three good opportunities," Wael Allan said at a press conference in Dubai.

One of the projects will be for a wastewater treatment project, which is a "higher margin" project as it is in the industrial sector, Allan said.

The other two projects are in the United Arab Emirates and are in the mechanical, electrical and plumbing sector. While Allan declined to give any further details, he said they were in "final stages of negotiations".

DSI, like many construction firms in the region, has been hit hard by the low oil prices and an economic slowdown in the sector, the company said in its consolidated financial results published in March.

In February it announced a turnaround and capital restructuring plan, which included a number of cost-cutting measures and capital raising initiatives, after reporting an annual loss 815.3 million UAE dirhams ($221.83 million) for 2016.

Earlier this month, Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic and transport ties with Qatar, accusing it of fomenting regional unrest, supporting terrorism and getting too close to Iran, all of which Doha denies.

Operating across the region, Allan said the Dubai firm had not seen any impact from the ongoing regional rift.

DSI, which is working on the Doha Metro project, has not received any official guidance about doing business in Qatar, Allan said it was currently not bidding for any new business in the Gulf state.

© Zawya Projects News 2017