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Arabtec’s Orders to Help Cushion Dubai Property Slump

DUBAI — Arabtec Holding PJSC, the United Arab Emirates’ biggest construction company, expects its more than Dh43 billion ($11.7 billion) order book to help it cushion the impact of a slump in Dubai’s property industry.

“The rate of growth in Dubai will 
fall substantially in 2009 although it will not be negative,” Ziad Makhzoumi, Arabtec’s chief financial officer, said 
in a phone interview on Wednesday.

Growth in the neighbouring emirates of Abu Dhabi and Qatar “will be much greater,” he added.

Arabtec, whose shareholders include private equity firm Abraaj Capital Limited, operates in the UAE, Qatar, Jordan, Syria and Pakistan, although Dubai contributes more than 50 per cent of its orders, Makhzoumi said.

The group includes more than 10 companies such as Austrian Arabian Ready Mix Concrete Company and is the contractor for Burj Dubai, the world’s tallest building being developed by Emaar Properties PJSC.

No Job Cuts

Arabtec has “no immediate plan” to cut its workforce of about 52,000 as none of its projects have been delayed, although some future orders may be rescheduled or redesigned, Makhzoumi said.

These changes “will not have a major impact on our business because of our backlog,” he added.

Nakheel PJSC, the Dubai-owned 
developer of three palm-shaped islands in the Gulf, said on November 30 it 
will cut its workforce by 15 per cent, or 
500 jobs, as it scales back some of its projects. Emaar, the Middle East’s 
largest real-estate developer, said on November 13 it was reviewing recruitment policies, while Damac Holding, a closely held property developer based in Dubai, said on November 11 it had eliminated 200 jobs, or 2.5 per cent of its workforce.

Arabtec is being “prudent” and “planning for a slowdown to make sure we are not caught unprepared if there are major changes in the market,” Makhzoumi said.

The company may move people across projects if necessary although some people recruited for specialised developments may leave when those are completed, he added.