ABU DHABI :Dubai builder Arabtec has submitted a proposal to Egypt’s government to construct 13,000 homes in the North African country, the firm’s chairman told Reuters on Monday.
In March 2014, Arabtec signed a memorandum of understanding to build 1 million homes in Egypt by 2020 – equivalent to about 550 per day – but the two parties have failed to agree final terms and this new proposal is entirely separate, said chairman Mohamed Thani Murshed al-Rumaithi.
“We assume they will accept soon,” he told Reuters on the sidelines of a conference in Abu Dhabi, declining to give more details.
Arabtec’s losses over the past four quarters total 2.06 billion dirhams as its costs rose and it took provisions.
“2015 will be a very, very tough year. That’s the reality because of the losses the company has faced,” said Rumaithi, who became chairman in May.
Several senior executives have left Arabtec in the past 18 months, including its chief executive and chief financial officer, while its shares have fallen 85 percent from a May 2014 peak as it struggled to turn provisional agreements for projects into firm contracts.
The company’s largest shareholder is Abu Dhabi state fund Aabar, which holds a 36 percent stake, according to the Dubai Financial Market.