Shares of Dubai's Arabtec drop amid Aabar stake

Markets Update: Dubai's markets fall led by a decline in Arabtec shares, after media reports that Abu Dhabi's Aabar Investments has accumulated a controlling stake in the construction company.

Arabtec's shares were the biggest mover on the Dubai Financial Market in early trading today. (Silvia Razgova / The National)

Arabtec's shares plunged after it emerged that Abu Dhabi's Aabar Investments had accumulated a controlling stake in the company. 
The Dubai-based construction firm's shares fell 5.7 per cent in trading.
Earlier today, Alrroya reported that Aabar had accumulated a 53 per cent stake in Arabtec, citing Khadem Al Qubaisi. Mr Al Qubaisi is chairman of both companies and managing director of International Petroleum Investment Company, a Government-owned investment fund.
Arabtec shares had soared as much as 128.3 per cent so far this year, with traders speculating that a buyer was quietly accumulating the company's shares. The buying coincided with a large run-up in the values of the wider Dubai Financial MarketGeneral Index.
The DFM requires disclosure from any company that acquires more than 5 per cent of the share capital of a listed company.
Currently, two Aabar units are listed as holding a 10.5 per cent stake in the company, having made disclosures to the exchange during the past two months.
A spokesman for the DFM said that the exchange did not track the ultimate parent company of investors in specific stocks.
"We periodically disclose shareholdings of 5 per cent and above on our website, according to regulations," the spokesman said.
He declined to comment on market speculation that Arabtec could be delisted.
The exchange is updating disclosures of company ownership on its website, the spokesman said, stopping short of confirming that Aabar had taken a controlling stake.
Arabtec, which accounts for 9.74 per cent of the weighting of the Dubai Financial Market General Index, pushed the rest of the index down 1.7 per cent to 1,488.24.
Even accounting for the recent sell-off, Arabtec has risen 83.5 per cent so far this year, making up slightly less than half of the gains added by the wider Dubai index so far this year.
Aabar and Arabtec representatives did not respond to requests for comment.

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