Arabtec Holding PJSC explained

Arabtec Holding PJSC
Type:Public company
Founder:Riad Burhan Kamal
Founded:1975
Parent:Mubadala
Location City:Shaikh Zayed Road Al Quoz St.04, Dubai.
Location Country:United Arab Emirates
Industry:Construction
Services:Residential Developments, Commercial developments, Hotels, Infrastructure, High Rise Development, Super High Rise Development On - and Offshore Oil and Gas and Industrial Projects
Revenue:5.66 billion AED (2012)[1]
Net Income:139.2 million AED (2012)
Assets: 12.59 billion AED (2012)
Num Employees:42,000
Fate:Bankrupted

Arabtec Holding PJSC, Dubai's most heavily traded and largest construction group in GCC together with its subsidiaries, provided construction services for residential, commercial, oil and gas, infrastructure, power, facilities management, and property development sectors in the United Arab Emirates and internationally. It operated through Construction; Mechanical, Electrical and Plumbing; Oil & Gas, Infrastructure and Power; and other segments. The company was involved in the construction of high-rise towers, buildings, and residential villas, as well as drainage, electrical, mechanical, and plumbing contracting, and civil and infrastructure construction works. It also engaged in real estate investment, development, leasing, and management activities. In addition, the company manufactured precast panels and steel structures, as well as ready-mixed concrete

Arabtec had executed a number of high-profile construction projects, including the Burj Khalifa (the tallest building in the world), the fit out of Burj Al Arab (fourth tallest hotel in the world that was constructed by Al Habtoor Engineering Enterprises in partnership with Murray & Roberts), Louvre Museum in Abu Dhabi, Terminal 1 of Dubai International Airport and the passenger terminal of Dubai World Central International Airport (now Al Maktoum International Airport).[2] [3]

Arabtec had business agreements with a number of major construction conglomerates across the world, including the Saudi Binladin Group.

On September 30, 2020, Arabtec filed for liquidation due to its untenable financial position following the fallout from the coronavirus pandemic.[4] On October 25, 2022 a Dubai court declared Arabtec and its subsidiaries bankrupt and approved liquidation of its assets.

Overview

Arabtec Construction is a multinational construction company that is headquartered in Dubai, United Arab Emirates, where it is one of the leading companies in its sector.[5] Arabtec Construction was established in Dubai in 1975 and has completed a number of projects in different construction sectors such as High Rise Developments, Hotels and Hotel Interiors, Office Blocks, Commercial Developments, Industrial Projects, Major Airport Developments, Stadiums, Infrastructure and Drainage works, Offshore Oil and Gas Installations and Residential Complexes.[6] [7]

Growth in Dubai was followed by geographical diversification and local and international expansion. Arabtec Construction has associated companies based in Abu Dhabi, Jordan, Pakistan, Qatar, Russia, Saudi Arabia and Syria. Arabtec Construction operates under Arabtec Holding PJSC. The group now consists of 13 subsidiaries, each one providing end-to-end contracting services across the construction value chain.[8]

Initial Public Offering

Arabtec Holding was the first privately held company as well as the first construction company to go public in the UAE. The company was listed on the Dubai Financial Market (DFM)[9] in 2005 and since the IPO the stock has been one of the most traded in the region. In 2010 Dubai Financial Market awarded Arabtec Holding as the most traded stock from year 2000 to 2010.[10]

Sponsorship

Arabtec on May 14, 2014 signed an sponsorship agreement with Premier League giants Manchester City F.C. to sponsor the football club for 3 years.[11]

History

Founded in 1975, Arabtec took advantage of the emerging markets in the UAE during the construction boom of the 1970s. Arabtec Construction started as a construction company specialized in high tech civil engineering and infrastructure works.

During the 1980s Arabtec began an involvement with the oil and gas sectors in Abu Dhabi.[12] In 1995 Arabtec diversified into airport work which played a key role in the company's expansion and its rise to become one of the top contractors in Dubai. In the 1990s Arabtec also expanded into the villa sector. The expansion into villas and housing led to the creation of a division called Arabtec Living, which marked a key milestone in the expansion and growth of the company. As early as in 1976 Arabtec made its first foray into high rise construction.

In 2011, Arabtec formed a joint-venture with Raheja Developers of India.[13] Raheja Developers awarded construction contracts worth US$204 million to the JV.[13] The company's first project is to construct a 56-story, 196m (643feet) residential complex, known as Raheja Revanta, in Gurgaon.[13]

In 2013, Arabtec formed a joint-venture with Samsung Engineering of South Korea. They will collaborate to undertake large-scale projects in oil & gas, power and infrastructure in the Middle East and North Africa. Arabtec-Samsung will bid for contracts that range from $3 billion to $10 billion in value.[14] [15]

In August 2012, Arabtec won AED11 billion contract to build the new airport in Abu Dhabi (Midfield Terminal Building) in JV with Turkish TAV and CCC (TCA-JV).[16]

In 2015, Arabtec posted a loss of $626 million.[17]

In 2016, Arabtec won the US$1.1 billion contract to build a new terminal at Bahrain International Airport under the name of Bahrain International Airport Modernization Program having a Joint Venture with a Turkish Company called TAV Construction; together the company is referred as ATJV in Bahrain.[18]

Liquidation

Arabtec Holding shareholders authorised the board to file for liquidation due to its undefendable financial position following the bad economic condition due to the coronavirus pandemic.[19] [20] [21] [22]

On October 25, 2022 Dubai court declared Arabtec and all its subsidiaries bankrupt and approved liquidation of its assets [23]

Labour Welfare

In 2016, Arabtec was awarded a 5 star rating Taqdeer Award.[24] The Taqdeer Award, launched by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai is the first of its kind in the world that seeks to recognise companies for their labour policies and efforts, so as to inspire them to further improve their labour practices. Arabtec was evaluated based on factors considered for the ratings, which include labour policies, facilities and infrastructure, health and safety, labour security, recruitment and wages, justice and transparency, labour relations and other indicators.[25]

Controversy

In a 2009 BBC Panorama program, Arabtec was exposed as treating their migrant workers inhumanely. The program showed how Arabtec failed to provide its workers with basic amenities to live with conditions deteriorating rapidly across the camp.[26]

Armed with secret cameras, BBC reporters sneaked into the camp to be met with the smell of raw sewage. Sewage had leaked out all over the camp, and workers had to create a network of stepping stones to cross it and get back to their accommodation blocks.[26]

Documents which had been obtained by the BBC clearly show that a month previous to the television crews' visit, the Dubai municipality described the sewage situation at the site as critical. Arabtec had also been fined 10,000 AED,[26] which is approximately £2,000, for neglecting hygiene standards and allowing sewage to overflow into accommodation used by workers.[26]

Arabtec said it did not accept that there were unsanitary conditions at any of its camps' toilets. It blamed the workers, saying, despite training, their "standards of cleanliness and hygiene are not up to your or our standards".[26]

Joint ventures and subsidiaries

Major services and projects of ARABTEC

Arabtec is one of the largest contractors for civil and infrastructure works, having executed several notable projects such as the Burj Khalifa, completed in January 2010 the tower is the tallest in the world standing 828 metres above ground.

Major projects executed or under progress[2] -

Expansion plans

Arabtec Construction has announced plans to expand into the emerging markets of the Middle East and North Africa (MENA region). Plans are set to enter Algeria, Angola, Azerbaijan, Libya, and Turkmenistan.

Arabtec was in 2009 ranked as the 104th largest Global Contractor, based on the total firm contracting revenue, according to the Engineering News Record.[43]

Awards

Company awards

Project awards

Notes and References

  1. Web site: Arabtec Holding Co (ARTC:DFM). https://archive.today/20130628202222/http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ARTC:UH. dead. 2013-06-28. businessweek.com. 2013-04-21.
  2. http://www.arabtecuae.com/ProjectsByStatus.aspx?id=3 Completed projects
  3. Web site: Who Are the Biggest Losers of Arabtec's Liquidation?. 2020-10-11. Al Bawaba. en.
  4. News: Al Sayegh. Hadeel. 2020-09-30. Arabtec shareholders vote to liquidate the Dubai construction firm - email. Nasdaq. 30 September 2020.
  5. https://archive.today/20120716195414/http://www.africanmanager.com/site_eng/detail_article.php?art_id=18105 Arabtec to hire thousands of new staff
  6. http://www.arabtecconstruction.com/AboutUs.aspx Arabtec Construction: About Us
  7. News: Dubai developer Arabtec's shareholders approve capital raise. Reuters.com. 2013-04-13. 2013-04-21. Praveen. Menon.
  8. Web site: Arabtec Holding . 2010-07-13 . 2021-03-09 . https://web.archive.org/web/20210309145341/https://www.arabtecholding.com/ . dead .
  9. http://dfm.ae//pages/default.aspx?c=1011&smb=ARTC: DFM
  10. http://www3.dfm.ae/pages/default.aspx?c=502&nid=12201 DFM
  11. Web site: 2014-05-14. Arabtec Signs Regional Sponsor Agreement with Man City. live. https://web.archive.org/web/20160311005831/http://mcfc.co.uk/News/Club-news/2014/May/Arabtec-Signs-Regional-Sponsor-Agreement-with-Man-City. 2016-03-11. Manchester City.
  12. Web site: Arabtec Holdings (ARTC.DU). taib.com. 2006-10-02. 2013-04-21.
  13. http://www.livemint.com/2011/11/05005625/Raheja-forms-JV-with-Dubai82.html Raheja forms JV with Dubai’s construction firm Arabtec
  14. News: Arabtec and Samsung Engineering Form Joint Venture. Zainab Fattah. Bloomberg.com. 2013-04-17. 2013-04-21.
  15. Web site: Arabtec and Samsung to make joint bid for giant projects. Arabnews.com. 2013-04-18. 2013-04-21.
  16. Web site: 2012-05-07. Arabtec-TAV-CCC wins Midfield Terminal contract. 2020-10-10. Construction Week Online Middle East. en.
  17. Web site: Dubai's Arabtec reports $626m loss for 2015. 2020-10-10. ArabianBusiness.com. en.
  18. Web site: 2016-01-25. TAV Construction and Arabtec win contract for new Bahrain terminal. 2020-10-10. The Moodie Davitt Report. en-GB.
  19. Web site: NASDAQ.
  20. Web site: REUTERS. 2020-10-07. Burj Khalifa builder Arabtec's liquidation shakes foundations of Gulf construction business. 2020-10-10. Daily Sabah. en.
  21. Web site: Arabtec shareholders authorise board to wind up firm: Report. 2020-10-10. aljazeera.com. en.
  22. News: 2020-10-01. Burj Khalifa Builder Arabtec Set To Fall Into Liquidation. en. Bloomberg.com. 2020-10-10.
  23. Web site: Dubai Court declares Arabtec bankrupt, approves liquidation of its assets . 2022-10-27 . gulfnews.com . en.
  24. Web site: Taqdeer awards construction companies for their best labour practices.
  25. Web site: Taqdeer awards construction companies for their best labour practices. 2020-10-10. gulfnews.com. en.
  26. News: Dark side of the Dubai dream . BBC News . 2009-04-06.
  27. Web site: Austrian Arabian Ready Mix . 2010-07-13 . 2021-04-11 . https://web.archive.org/web/20210411010218/http://www.aacdxb.ae/ . dead .
  28. Web site: House of Equipment . 2010-07-13 . 2018-11-23 . https://web.archive.org/web/20181123094656/http://www.hoeuae.ae/ . dead .
  29. Web site: Arabtec Construction - Qatar. arabianbusiness.com. 2013-04-21.
  30. Web site: Arabtec Precast (APL). zawya.com. 2013-04-21.
  31. Web site: Company Overview of Nasser Bin Khaled Factory Ready Mix Concrete Co. LLC. https://archive.today/20130628201129/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=62416472. dead. June 28, 2013. businessweek.com. 2013-04-21.
  32. Web site: EFECO . 2010-07-13 . https://archive.today/20130117054811/http://www.arabtecconstruction.com/efeco/home.aspx . 2013-01-17 . dead .
  33. Web site: Arabtec India . 2012-08-17 . https://web.archive.org/web/20130331025132/http://www.arabtecindia.com/ . 2013-03-31 . dead .
  34. Web site: Company Overview of Arabtec Engineering Services Llc. https://archive.today/20130628203802/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=224011930. dead. June 28, 2013. Businessweek.com. 2013-04-21.
  35. Web site: Company Overview of Arabtec Construction Syria Llc. https://archive.today/20130628214327/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=100544728. dead. June 28, 2013. businessweek.com. 2013-04-21.
  36. Web site: Arabtec Pakistan (pvt) Ltd.. Pakistanbusinessjournal.com. 2013-04-21.
  37. http://www.target.ae/ Target Engineering Construction Company
  38. http://www.gsifz.ae/ Gulf Steel Industries
  39. Web site: Polypod Middle East . 2010-07-13 . https://web.archive.org/web/20110706064857/http://polypod.ae/ . 2011-07-06 . dead .
  40. Web site: Arabtec Egypt Nets Amer Group Contract. arabianbusiness.com. 2013-04-21. 2013-04-21.
  41. News: Dubai builder Arabtec launches venture with Samsung Engineering. Dinesh Nair. Reuters. 24 September 2013.
  42. Web site: Raheja Developers in JV to build tallest towers in NCR. India Today. 14 March 2015. 5 November 2011.
  43. Web site: Pagina non trovata - CMC - Cooperativa Muratori Cementisti Ravenna . 2010-07-13 . https://web.archive.org/web/20110708165859/http://www.cmcra.com/img/articoli/536/ENR-09-TIC.pdf . 2011-07-08 . dead .
  44. Web site: Arabtec Holding PJSC . www.arabtecholding.com . 26 January 2022 . https://archive.today/20120721175132/http://www.arabtecholding.com/CertificateDetails.aspx?id=13 . 21 July 2012 . dead.
  45. http://www.ameinfo.com/149052.html AME Info
  46. http://www.zawya.com/story.cfm/sidZAWYA20071217113542/Arabtec%20won%20%22The%20Company%20of%20the%20Year%22%20Award%20for%202007 Zawya
  47. http://www.emaar.com/index.aspx?page=press-release-details&id=809 Press Release Emaar
  48. http://www.estatesdubai.com/2009/06/cayans-infinity-tower-at-dubai-marina.html Estates Dubai
  49. http://www.ameinfo.com/177527.html AME info
  50. http://www.abudhabiluxuryhomes.com/about/awards.php Dubai Luxuary Homes

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