DUBAI: Dubai construction heavyweight Arabtec is focusing on winning projects in new markets following the downturn in Dubai and does not require any additional funding, its chief executive said on Monday.
The largest builder in the United Arab Emirates by market value suffered when Dubai’s real estate sector collapsed in the wake of the global financial crisis, leaving several projects unfinished and developers and construction firms indebted.
Arabtec shares have shed 30 percent so far this year.
"We’ve tendered in Turkmenistan, Azerbaijan, Angola…some of this work may come our way in the very near future," Riad Kamal said at a conference.
Arabtec has no plans for new capital raising, with funding coming from advance payments on its projects, he said.
Last week, Arabtec’s chief financial officer said in an interview the firm has bid for enough work to achieve AED7.4 billion ($2.02 billion) worth of orders.
Kamal said on Monday he was told the firm will receive 40 percent cash payment from troubled developer Nakheel, "this week or next week," while the remainder, to be in the form of a bond, is expected three months later.
Nakheel, developer of some of Dubai’s most iconic landmarks is currently restructuring billions in debt payments.
As part of the proposals, Nakheel’s trade creditors have been offered full repayment, with 40 percent in cash and 60 percent in the form of an Islamic bond which has a 10 percent annual return.
Arabtec’s shares closed 2.2 percent lower in earlier trading on Monday, underperforming Dubai’s index which eased 1.2 percent.