Arabtec and Samsung to make joint bid for giant projects

Updated 18 April 2013
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Arabtec and Samsung to make joint bid for giant projects

Arabtec, the contractor part-owned by Abu Dhabi fund Aabar, signed an agreement with Korea’s Samsung Engineering Co. to jointly form a new company that will focus on large energy and power-related projects in the region.
The Dubai-based builder, which is planning a $1.8 billion capital increase as part of its expansion drive, said the new firm would be 60 percent owned by Arabtec and headquartered in of Abu Dhabi.
Samsung Engineering would own the remaining 40 percent, the two companies said in a joint statement.
Under the terms of the agreement, the new firm will exclusively bid for projects in oil and gas, power and infrastructure segments in the Middle East and North Africa, in contracts ranging between $ 3 billion and $ 10 billion, the statement said.
Arabtec is keen to expand into the oil and gas construction business and is also set to acquire the remaining 40 percent it does not already own in UAE oil and gas construction firm Target Engineering, according to sources familiar with the plan.
Arabtec replaced its chief executive in February as part of the shake-up led by Aabar, which has been tightening its grip on the group.
Hasan Abdulla Ismaik, managing director and CEO of Arabtec, said, “We have a successful history partnering with Samsung Engineering’s sister company, Samsung C&T. We have already worked together on some of the region’s highest profile projects, including Burj Khalifa.”
He added: “This JV is the logical next step in the relationship between the two companies. Arabtec-Samsung Engineering will be well-positioned to capitalize on the exciting growth opportunities in oil and gas, power and infrastructure. Samsung Engineering is already the leading EPC contractor in MENA, with their experience and track record of successfully executing large scale projects, Arabtec has the right partner to achieve its strategic goals in EPC.”
Park Ki-Seok, Samsung Engineering’s President and CEO, said: “Samsung Engineering is currently executing major projects in the UAE, worth $ 9 billion. Through this partnership with Arabtec to form a JV, we hope to expand our presence in MENA as well as contributing to the development of the local UAE community.”
Khadem Al Qubaisi, chairman of Arabtec Holding, said “Our partnership with Samsung Engineering is evidence of our growth strategy being put into action. The Joint Venture will be a powerful alliance of two market leaders with complementary skills in engineering, procurement and construction. We are currently considering further joint ventures, with world class companies to progress other areas of Arabtec’s growth strategy.”


‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

Updated 23 October 2018
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‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

  • Ellen Wald said there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative
  • Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to other potential business partners

RIYADH: An American expert on US-Saudi business affairs believes that the withdrawal of some senior business leaders from the investment conference that opens in Riyadh today does not reflect the Kingdom’s commercial attractions.
Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” told Arab News that there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative in the Saudi capital, and that many business people were still looking to do business there.
“I think the big pull out of CEOs is not really reflective of the corporate interest in the Kingdom because we see them sending their next level of executives along. So to some degree it (the CEO pullout) is symbolic. I think what they experience here this week will have an effect,” she said.
Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to potential business partners in other parts of the world.
“In terms of attracting foreign investment, Saudi Arabia could have strategic leverage with Russia and China, and a unique opportunity to work on cutting edge technolgies,” she said.
Wald was speaking at an event organized by the King Abdullah Petroleum Studies and Research Center to discuss her book. She said that Saudi Arabia had a greater need for technology and know-how than for cash investment.
“With regard to foreign investment, it is not about extracting money, but about extracting expertise. The Saudi model has been to hire outside industrial talent, for example the Public Investment Fund and its cinema partner AMC. They are buying expertise in the same way that the Saudis bought in expertise with Aramco, all those years ago. Eventually they (PIF) will buy the cinemas out or bring in somebody else to run them,” she added.