Arabtec’s Target lands contracts worth total of Dh289m after share recapitalisation

Arabtec has announced that its specialist oil and gas and infrastructure arm, Target Engineering Construction Company ( Target), has won four new contracts worth a combined Dh289 million.

The company said that the projects include work on a high- rise development in Dubai’s Business Bay, the installation of industrial process tanks in Taweelah, Abu Dhabi, substation upgrades at Das Island in Abu Dhabi, and a cofferdam removal and revetment construction in the Western Region.

“Target Engineering over the years has developed a strong experienced workforce, solid financial standing, and evolved into a key player within the region with core capabilities of delivering complex projects in the industrial oil & gas, social infrastructure, marine and high-rise tower sectors,” said Chaouci Yassine, the chief executive of Target Engineering. He added that the new awards demonstrated the firm’s range of expertise.

The Arabtec Holding chief executive, Hamish Tyrwhitt, said: “Target, together with the group’s other operating entities, demonstrates our integrated capabilities but also our core strength, giving us the ability to pursue a broad range of projects. We continue to focus on the UAE as our core market and are optimistic on the outlook of the sector.”

Arabtec has recently com- pleted a share recapitalisation, which has included a Dh1.5 billion rights issue, injecting new capital into the business and writing off about Dh4.6bn of historic losses with a view to supporting a turnaround plan for the business drawn up by Mr Tyrwhitt and his management team.

The plan focuses on its three main operating divisions: Target; Arabtec Construction; and the MEP ( mechanical, electrical and plumbing) contractor Efeco – as well as divesting non- core businesses and re- covering historic debts.

Target is the third of these three businesses to announce contract wins over the past three days.

On Tuesday, Arabtec announced that its construction arm had secured a Dh353m contract to build the UAE Pavilion at the Expo 2020 site in Dubai, while Efeco said on Monday that it had secured a Dh113m deal to carry out MEP works at two 37- storey residential towers at Emaar Properties’ Dubai Creek Harbour project.

Target’s announcement is the third Arabtec contract win announced in the last three days