Arabtec awarded resort project in Egypt.
to its policy of securing business in overseas markets, as the only way to offset what has become a massive recession in
terms of active development contracts in its own backyard.
Arabtec Egypt confirmed on the 17th of October 2010, that it had been awarded a contract by Egyptian property developer Amer
Group to build the Hanging Gardens project at the Golf Porto Sokhna resort overlooking the Red Sea.
Golf Porto Sokhna is a master planned residential and multi-purpose vacation resort, the Hanging Gardens section of the
development consists of six buildings containing a spread of 726 apartments. The value of the contract to Arabtec is slightly
more than US$ 53 million and the construction term in 14 months.
The new relationship with Amer as a developer is likely to be beneficial to Arabtec in the long term. The Amer Group is a major
establishment player in EgyptAAEs hospitality industry and well known for its prestigious resorts, such as Porto Marina and Porto
Golf on the northern coast as well as Porto Sokhna on the Red Sea. Plus the group stated only this week, that it sees sufficient
pristine land tracts across Egypt's coasts and deserts to justify a further twenty editions of the firm's residential and commercial
developments. This projected enlargement would more than double its current hospitality empire.
Once again in keeping with its foreign policy, Arabtec Saudi Arabia also received an order from the Saudi Binladin Group to
construct 5,000 villas at a confirmed value of 5 billion Saudi Riyals (US$1.33 billion). The firm has now taken orders for work in
Abu Dhabi, Qatar and Saudi Arabia on the Arabian Peninsula. Nevertheless, it also reported last month that it may restart work
at Nakheel's Al Furjan project in Dubai. Arabtec's last quarter close backorder book stood at US$ 6 billion.
One of the largest construction companies in the Middle East region, Arabtec Holding has bid for contracts in a variety of countries
such as Azerbaijan, Turkmenistan and Angola. It also has a planning approval stage contract for the gigantic 400 metre Gazprom
tower located in St. Petersburg in Russia; currently the subject of much heated debate in terms of the building's effect on the
city's status as a Unesco world heritage site.
Copyright Andy McTiernan. All rights reserved.
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|Publication:||Andy McTiernan Property & Economy Bulletin|
|Date:||Oct 22, 2010|
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