Arabtec was established in 1975.
PHOTO BY ARABTEC
DUBAI – The move to dissolve debt-laden Arabtec, which helped build the Burj Khalifa, is likely to threaten thousands of jobs and scores of suppliers and sub-contractors.
Arabtec, one of the biggest construction companies in the UAE, has filed for liquidation after the coronavirus pandemic hit several projects.
When a company goes into liquidation its assets are sold to repay creditors, and the business closes down.
Shareholders have reportedly appointed AlixPartners and Matthew Wilde, or any other person the board considered fit, as liquidator.
Arabtec’s board will have a maximum of two months for discussions with stakeholders before a liquidation application is submitted to courts, the company said in an emailed statement.
Construction companies that sprang up more than a decade ago amid a construction boom in Dubai and the Gulf are facing a reassessment as governments cut back on spending.
Arabtec employs about 40,000 people, making its impending closure a huge blow to employees, suppliers and sub-contractors.
Abu Dhabi-based Arabtec reported losses of Dh794 million ($216 million) in first six months of 2020, citing tight liquidity and limited new projects.
Arabtec, which was established in 1975, has helped build the Louvre in Abu Dhabi and the Burj Khalifa in Dubai. It was valued at Dh30 billion at its peak in 2014 and is now worth Dh795 million.
An analyst at Shuaa Securities said Arabtec has Dh5 billion in receivables and dues, and Dh1.8 billion in outstanding debt. ICA/Expat Media
Sharjah ruler sketched what iconic airport should look like
Dh75 million Dubai Hills villa is most expensive sold in Dubai
Major change to UAE Commercial Law explained
Burj Khalifa lights up in tribute to Diego Maradona
Indian father, daughter drown in Sharjah
VIDEO – Mina Plaza towers demolished in seconds
Dh52 Under Armour Bags, Buy 1 Get 1 and more deals at Dubai Super Sale
Dubai’s first Christmas trees of 2020 sold in Satwa
Ajman fraudsters behind Dh2.8 million scam arrested
Dubai launches new initiative to help visa violators
Can you eat 5 burgers in 5 minutes in Dubai?
Man wins Dh1.2 million Dubai apartment