Arabtec to build thousands of new villas at Dubai’s Al Mira Residences and Arabian Ranches

The two contracts, awarded by Emaar Properties, are Arabtec’s second major new business awards since former managing director Hasan Ismaik left the company last year.

Villas in Arabian Ranches in Dubai. Pawan Singh / The National

Arabtec has been awarded two contracts worth a total of Dh375 million from Emaar Properties in its second major new business win since its managing director, Hasan Ismaik, left the company last year.

Arabtec said that its Arabtec Construction subsidiary had won a Dh209m contract to build town houses at Emaar’s Al Mira Residences in Dubai by May next year.

A company spokesman said that the new contract was separate from the Dh1 billion contract that Arabtec and Emaar announced in March to build 1,582 town houses at the Mira community, the first phase of Emaar’s master development Reem.

It also said it had won a Dh166m contract to build more villas at Emaar’s nearby Arabian Ranches extension by March next year.

The two contract wins are Arabtec’s second major new business awards since former managing director Hasan Ismaik left the company last year.

Mr Ismaik, the architect of Arabtec’s ambitious expansion strategy the company had been following during the earlier part of the year, left Arabtec in a shock move on June 17. That triggered a crisis in the firm’s share price in July and August as it cut highly paid and new mergers and acquisitions staff as well as its chief operating officer, chief information officer and chief risk officer.

It also sent the company’s shares The plummeting share price also dragged ing down the rest of the Dubai bourse and prompting prompted shareholder Aabar to hold an emergency press conference last summer in order to reassure shareholders that the company was not about to be taken over. Last week Arabtec revealed it had won two contracts through its Target Engineering subsidiary worth a total of Dh560m from Abu Dhabi National Oil Company.

“In realising such achievements the company relies on active and prudent instructions and the persistent follow up by the board of directors,” Arabtec said in a statement to the DFM.

“These are backed by tremendous efforts exerted by the management team, which were characterised by the successful thorough structuring process which included the development of business mechanisms over the past six months.”

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