Shareholders of United Arab Emirates-based Arabtec Holding PJSC voted to dissolve the debt-laden construction firm that’s been grappling with mounting losses.
“After considering a number of strategic options, the shareholders of Arabtec Holding have voted to discontinue with the Group and dissolve it due to its untenable financial situation,” a company spokesperson said.
Construction companies that sprung up more than a decade ago as a building bonanza swept Dubai and much of the Gulf are facing a reckoning as governments pull back on spending. Firms have struggled for years with project delays and thin profit margins — in January, Australia’s CIMIC Group took a $1.23 billion write off on its 45% stake in BIC Contracting and exited the Middle East.
Arabtec’s move is likely to hit scores of suppliers and sub-contractors in the UAE.