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.”


UAE banks told to make credit checks on customers before issuing cheque books

Updated 2 min ago
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UAE banks told to make credit checks on customers before issuing cheque books

  • The central bank said it had told banks in a circular to issue new customers with a cheque book containing a maximum of 10 individual cheques

DUBAI: The United Arab Emirates central bank has told banks to carry out credit checks with the country’s credit bureau on customers before issuing them with cheque books, the regulator said on Monday.
The central bank said it had told banks in a circular to issue new customers with a cheque book containing a maximum of 10 individual cheques.