CAIRO: The United Arab Emirates-based company Arabtec Construction will launch its subsidiary in Egypt next week to develop the project of one million affordable houses in collaboration with Egypt’s Armed Forces, the company announced Wednesday.
Arabtec is considering establishing the company in foreign currency to avoid potential losses from the currency exchange rates, it told CNBC Arabia. The Commercial International Bank (CIB) is set to carry out the arrangement of the domestic funds, added the company.
Early this month, Arabtec called on Egyptian and Emirati construction companies to submit registration requests to join the execution of a 1 million-unit project in cooperation with the Military Engineering Authority (MEA).
“Preference would be given to Egyptian and UAE construction and engineering companies,” Youm7 quoted Hasan Ismail, managing director of the UAE construction company, who resigned Wednesday to concentrate on his other business interests according to the company spokesperson.
Arabtec previously announced it would construct the units in the beginning of 2014 with a total investment of $40 billion and the project is expected to be completed in 2020.
Arabtec Egypt also announced its intention to offer part of its shares at the Egyptian Stock Exchanges in the upcoming period in light of expansion plans for investments in Egypt.
The offering would range between 20 to 25 percent of its shares, a source at Arabtec Egypt told Finance and Business Newspaper.