Arabtec has signed an agreement to set up a joint venture with a South Korean engineering and construction company to build metro lines, railways, ports and tunnels in the Middle East and Africa.
In a statement yesterday, the UAE’s largest listed construction company said it had signed an agreement with GS Engineering and Construction (GSE&C) to pursue heavy infrastructure engineering and construction projects across the region.
The news comes less than two months after Arabtec launched a joint venture with the engineering arm of another South Korean conglomerate, Samsung, to expand into more complex engineering and “big ticket” infrastructure works in the Middle East and North Africa.
The venture announced yesterday, Arabtec-GS Infrastructure, is to be incorporated and headquartered in Abu Dhabi and managed by executives from both Arabtec and GSE&C.
Arabtec-GS Infrastructure hopes to capitalise on the estimated US$600 billion of infrastructure projects that are planned to be built in the GCC over the next six years, of which more than $220bn are for railways.
GSE&C, which was part of the LG conglomerate until 2005, specialises in building heavy infrastructure projects in South East Asia and the Middle East. The company is currently building an 18-kilometre metro line in Doha, and a marine jetty in Ruwais in Abu Dhabi emirate.
It is also working on five metro projects in Singapore and building the first metro in Ho Chi Minh, Vietnam. It has a backlog of US$4.2bn.
Arabtec and GSE&C said the new joint venture would combine their buying power in procurement.
Earlier this year, Arabtec completed a Dh4.7bn rights issue aimed at diversifying the company into more complex oil and gas-related infrastructure projects as well as affordable housing and away from the company’s traditional contracting operations, which were hit hard during the global financial crisis.
“Another key component of the company’s five-year growth strategy is being put in place through this exciting new joint venture with GS,” said Hasan Abdullah Ismaik, the managing director and chief executive of Arabtec Holding.
“This partnership demonstrates further progress being made on diversifying the business into other high margin and high growth segments of engineering and construction. GS has a proven track record in the region, which further complements our expertise in the infrastructure sector and will allow both parties to capitalise on a range of new opportunities in this fast-growing sector,” he added.
“The joint venture brings together two like-minded industry leaders with complementary skills and capabilities,” said Lim Byeong Yong, the president and chief executive of GSE&C.
“The partnership works well with our existing backlog of projects already under way in the region as it will help us grow and expand it.”
lbarnard@thenational.ae
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
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The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
A Bad Moms Christmas
Dir: John Lucas and Scott Moore
Starring: Mila Kunis, Kathryn Hahn, Kristen Bell, Susan Sarandon, Christine Baranski, Cheryl Hines
Two stars
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
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Price: Exact regional pricing TBA