Arabtec, Samsung Engineering Form Joint VentureZainab Fattah
Arabtec Holding PJSC, the Persian Gulf’s largest publicly traded construction company, formed a venture with Samsung Engineering Co. to further its expansion in the oil and gas industry.
Arabtec-Samsung Engineering will be 60 percent owned by Arabtec and 40 percent owned by Seoul-based Samsung Engineering. Management will be appointed shortly, according to a statement by the two companies today.
The joint venture will “undertake large-scale projects in oil & gas, power and infrastructure in the Middle East and North Africa,” the companies said. Arabtec-Samsung will bid for contracts ranging from $3 billion to $10 billion in value. Samsung Engineering currently has a $10 billion contract backlog in the regions.
Arabtec, which helped build the world’s tallest tower in Dubai, in February replaced its management and said it plans to more than double its market value. The Dubai-based company also said it’s planning to raise 6.4 billion dirhams ($1.7 billion) through a bond and share sale. The proceeds will be used to bolster the company’s oil-and-gas installation business and expand its affordable housing capacity, Arabtec said in March.
Yesterday, Arabtec signed a 10-year agreement to lease the 59-floor office tower in Abu Dhabi where Arabtec Construction and Arabtec-Samsung Engineering will be based, the company’s Chief Executive Officer Hasan Ismaik said.