Arabtec Holding has posted a 40 per cent drop in second-quarter profits as Dubai's property sector continues to struggle and a Dh2 billion ($544.7 million) contract was suspended in Saudi Arabia.
The UAE's largest construction company yesterday announced profits of Dh111.1m for the quarter, compared with Dh183.9m in the same period last year. Profits for the first half of the year fell 29 per cent to Dh245.6m, the company said.
While Arabtec has broadened its geographical reach in recent years, continuing stress in markets close to home was a driving factor for the fall in profits.
The value of the company's contracts had shrunk from about Dh28bn at the start of the year to Dh22bn, mainly because of cancelled projects in Dubai.
Profits were also dented by the cancellation of a major contract in Saudi Arabia, where Arabtec set up an office in March last year to capitalise on a huge pipeline of projects. It was awarded a Dh2bn deal to build Lamar Towers in Jeddah but the project was removed from its order book after work was suspended this year.
"There has been no progress on the project and we could not agree how to move forward, so we took it off the backlog," said Ziad Makhzoumi, the chief financial officer of Arabtec.
Dubai's Cayan Investment and Development, which had formed a partnership with the Saudi company Zahran Real Estate to develop Lamar Towers, is also no longer involved in the project, said a spokesman for Cayan.
In what could be the most challenging period in its history, Arabtec had a glimmer of good news last month when it said it received 40 per cent of what it was owed by the troubled Dubai World property developer Nakheel.
But work has yet to resume on Al Furjan, the 1,500-villa community Nakheel has said it will focus on finishing as it looks to a Dh38.56bn debt restructuring.
A number of property buyers in longer-term projects by Nakheel, the company behind Dubai's Palm islands and The World archipelago, were allowed to switch their investments to Al Furjan.
"We know it's one of the projects that will continue soon," Mr Makhzoumi said. Arabtec is also hoping a major project in Russia goes ahead soon.
The company has the main construction contract for St Petersburg's 400-metre-tall Okhta Centre tower, valued at Dh10bn when it was awarded in 2008.
But the start of work was delayed after the UN Educational, Scientific and Cultural Organisation warned St Petersburg's historic centre could be struck off the World Heritage List if the tower were built.
Even though Arabtec won three contracts in Abu Dhabi in June worth a combined Dh747bn, Chet Riley, an analyst at Nomura, warned the third quarter might also be challenging, "particularly with the summer and Ramadan".
In April, Arabtec abandoned a deal that would have seen Aabar Investments, based in Abu Dhabi, take a 70 per cent stake in it.
Riad Kamal, the chief executive of Arabtec, said in May the two companies were still working towards a strategic partnership.
Meanwhile, the company is seeking new work in Libya, Turkmenistan, Azerbaijan and Angola as it weathers the slowdown in the UAE.
It has also been approached to build a 100,000-seat stadium on the outskirts of Baghdad.
agiuffrida@thenational.ae
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FINAL RESULT
Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)
Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2
Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross
MATCH INFO
Day 2 at Mount Maunganui
England 353
Stokes 91, Denly 74, Southee 4-88
New Zealand 144-4
Williamson 51, S Curran 2-28
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
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if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Schedule:
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
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Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
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Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
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“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
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Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
LAST-16 EUROPA LEAGUE FIXTURES
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
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Seasons 2003/04 - 2008/09
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Zayed Sustainability Prize
Mohammed bin Zayed Majlis
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If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
'Nope'
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Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
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1. Fasting
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3. Hajj
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- Keyhole surgery under general anaesthetic
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- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari
The five pillars of Islam
