Drake & Scull to continue Dubai projects

Newly-listed Dubai contractor Drake & Scull International does not plan to stop projects due to the economic slowdown and intends to buy four companies by the end of the year, its chief executive said.

The United Arab Emirates' construction sector is suffering a sharp slowdown as developers halt or postpone projects and thousands of jobs are slashed. But CEO Khaldoun Tabari believes Drake & Scull is well positioned.

"We feel that we will achieve 25 per cent growth in 2009 and believe we will weather the storm because of the cash we have," Tabari told Reuters late on Monday, adding the company had no plans to halt any existing projects.

Drake & Scull – which specialises in mechanical, engineering and plumbing businesses – raised Dh1.2 billion ($327 million) in an initial public offering in July, a time when the Gulf Arab region was experiencing a construction boom.

Its shares slumped as much as 30 per cent below their IPO price on Dubai bourse debut in March. On Tuesday they changed hands for Dh0.71, compared with the Dh1 price at which it sold shares to the public last July.

Tabari said Drake & Scull plans to acquire a civil contracting company in Saudi Arabia and three electromechanical companies in Kuwait, Qatar and Saudi by the end of the year. The company has said it plans to spend as much as Dh500 million on acquisitions. 

 

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