New 5-star hotel in Dubai for $217 million
Dubai-based Arabtec Holding, one of the major construction companies in the Middle East & North Africa (Mena) region, said yesterday it has been awarded a Dh810 million contract to build a 5-star hotel and apartments in Business Bay Dubai.
In a statement, Arabtec said the project is set to commence in the second quarter this year with expected completion in the second quarter of 2015. Located in the heart of Dubai, the development has a built up area of 125,000 square metres and encompasses two towers with 447 rooms and 136 serviced apartments.
“This new landmark is expected to play a vital role in supporting the local tourism and hospitality sector, which continues to grow in line with the UAE vision and economic goals,” said Hassan Abdullah Ismaik, Arabtec’s managing director and chief executive, adding the company is in a “very strong position to leverage an extended period of increased activity across the region.”
“Our recently announced dividend policy, which targets a dividend pay-out of at least 10 per cent per annum of our total share capital, aims to provide our shareholders with a regular return on their investment as they participate in our growth. We are now starting work on several major projects, so the company should see a positive impact on earnings towards the end of the year,” said Ismaik.
Mohammad Ali Yasin, managing director at NBAD Securities told Gulf News the award of a major contract to Arabtec shows a “natural progression of recovery in the UAE’s real estate sector.
“Earlier, we were seeing projects under development getting completed. Now, new projects are coming up which shows the appetite of investors to buy off-plan property in the UAE has gone up significantly, which will reflect positively on the contracting companies,” said Yasin, adding the liquidity in the banking sector in the UAE has improved to levels not seen since 2008 fuelling banks’ appetite to fund new projects.
Arabtec’s stock on the Dubai Financial Market (DFM) rose 3.33 per cent, closing at Dh2.17, buoyed by the award of the new contract.
Arabtec said the planned dividend payout of at least 10 per cent per annum of its total share capital is expected to take effect from 2013, subject to shareholder approval at its next Annual General Meeting.
Arabtec recently reported a 20 per cent rise in first quarter 2013 revenue to Dh1.55 billion. The company’s growing portfolio includes a variety of the world’s iconic developments such as the world’s tallest tower Burj Khalifa, Emirates Palace, the Fairmont Abu Dhabi and the Louvre Abu Dhabi.
In April, Abu Dhabi’s real estate major Aldar Properties and Arabtec said in a joint statement yesterday that they have reached an agreement in which Arabtec will take a long-term lease for all of the World Trade Centre Abu Dhabi commercial tower being developed by Aldar.
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