Arabtec Holding has won a $705 million contract for a project in Abu Dhabi. The Dubai based builder, which earned repute for building the emirates' palm shaped islands, will construct a five star hotel and a residential tower on Al Reem Island. The project is expected to be completed in three years. The deal has reportedly brought the company’s backlog of contracts to a record AED 33 billion. A shake up at Arabtec following its strengthened connection with Aabar, the company’s largest shareholder, has led to optimism among investors that more business would be generated in the UAE capital. Incidentally Al Reem Island, located just off Abu Dhabi's coast and spread across 6.5 million square metres, is the largest property development in the emirate.
Work orders worth $60 million for substations intended to power King Abdullah Economic City (KAEC) in Saudi Arabia has been bagged by ABB. The Swiss power giant has been commissioned by Saudi Electricity Company (SEC) to design, supply, install and commission an expansion of the 380 kV Haramain high-speed railway (HHR3) substation, which supplies electricity to KAEC at 110 kV. The 173 sq km knowledge hub is located along the coast of the Red Sea, around 100 km north of Jeddah, and an hour away from Mecca. KAEC has been planned with a view to make Saudi Arabia one the world's top ten investment destinations by attracting foreign capital which could aid the Kingdom’s largely oil driven economy to diversify. The substations will lead to strengthening of the transmission grid and will boost power supplies to support economic growth.
Dubai based Drydocks World has been commissioned to construct the largest rig ever built for the North Sea. The company will be building a jack-up rig or self-elevating structure known as CJ-80 for Drill One Capital which will be completed in 2017. The deal worth $730 million is expected to further bolster the fortunes of the group, which has undergone a multi-billion-dollar debt restructuring. Drydocks World earnings reached around $110 million in 2013 and the company’s minders expect further improvement during 2014-2015. The company is eyeing opportunities in the oil and gas and renewables sectors in Europe, with wind power in Germany being an area of particular interest. It is also looking to improve business closer home.
Authorities in Oman are all set to formulate comprehensive strategy for transport in that country. It is reported the Ministry of Transport and Communication, Supreme Committee for Town Planning along with public and private sector organisations are on the verge of developing a short-term (till 2020) as well as long-term( till 2040) national strategy. The requirements for ports, airports, railways and various other projects in different areas of the country will be factored in while preparing the blueprint, authorities from the Ministry of Transport and Communications said. A comprehensive study would be done ahead of the plans and an effort would be made to identify private and public sector development opportunities across various areas of the transport sector.
Authorities in Bahrain have given the clearance for the much delayed $52.7 billion indoor ski resort. The theme park called Muharraq Grand Garden – which includes an ice arena and indoor ski slope – was stalled for the last two years citing concerns that it would lead to damage to sewage and water networks. The project located near the Bahrain International Airport includes a three-storey shopping centre, business centre, indoor sports arena, outdoor pitches, aquatic museum, karting track, mosque and an elderly home, will take two and half years to complete. Incidentally there is a ski resort at the Mall of the Emirates in neighbouring Dubai and another is being built at the Mall of Egypt in Cairo.
Government and private financing is expected to accelerate the execution of infrastructure projects in Saudi Arabia. According to a new National Commercial Bank report, investments in mega projects will encourage commercial banks to raise their lending profile. The emergence of sukuk and Public Private Partnerships has provided both government and private entities the ability to diversify their financial exposure, while still hedging against project risk. Therefore Saudi bank credit for construction activities will continue to grow into 2014. As per the report, in the wake of the global economic crisis non-residential construction significantly grew from five percent of nominal gross domestic product (GDP) in 2006 to an estimated six percent in 2013. The infusion of $66.66 billion into the housing market is expected to lead to improved conditions. The value of awarded contracts in the construction sector between 2008 and the third quarter of 2013 reached a staggering SR1.2 trillion, of which 68 percent, or SR805bn, was spent on infrastructure-related projects. While the power sector accounted for 29 per cent of the total contract awards for infrastructure related projects, the transportation sector followed with 22 per cent and the residential real estate sector at 12 percent.