Building our future
To develop social and economic infrastructure efficiently and sustainably, as the result of long-term relationships with our clients and partners
The Group has now achieved eight consecutive quarters of profitability supported by cash from operating activities and a reduction in net debt.
Years in business
1st construction company listed on DFM
Robust revenue growth and operational efficiency driving profitability
+7.8% y-o-y compared to AED 9,141 mn in FY 2017
+72.1% y-o-y compared to AED 212 mn in FY 2017
Margin improved from 2.3% to 3.7%
+72.1% y-o-y compared to AED 212 mn in FY 2017
Margin improved from 1.3% to 2.6%
Solid pipeline of tender opportunities of
AED 48 bn
G&A expenses as a percentage of revenue improved from 3.5% in FY 2017 to 3.0%
|Project Name||Value (AED mn)||From||Description|
|Gas Development*||3,160||ADNOC LNG||Expansion of Phase II|
|AKOYA Oxygen||992||DAMAC Properties||Construction & MEP of villas|
|Infrastructure Project||588||Dubai Municipality||Industrial sewerage system|
|Bu Hasa Project||521||Tecnicas Reunidas||MEP for ADNOC’s oil project|
|Public Realm||311||Expo 2020||Concourses & arrival plazas|
|Residential Towers||353||DAMAC Properties||Construction of two towers|
|Opera District||250||TAV Tepe Akfen||MEP for two towers|
|Villanova||222||Dubai Properties||Construction of villas|
|Uptown Cairo||157||Emaar Misr||Construction of Phase 3 & 4|
|Creekside Horizon||117||Emaar properties||MEP|
Gas Development Expansion (ADNOC LNG), Villas at AKOYA Oxygen (DAMAC Properties), Sewerage Infrastructure (Dubai Municipality), MEP for Bu Hasa Oil Project (Tecnicas Reunidas)
Strengthening regional footprint in selected countries including UAE, KSA, Egypt and Bahrain as well as building presence in the infrastructure space
G&A has seen a consistent reduction to reach 3.0% of revenue compared to 3.5% in FY 2017
Improved receivables collection; debtor days reduced by 31 days from 186 in Q4 2017 to 155 in Q4 2018
Net cash from operating activities improved to AED 924 mn in FY 2018 compared to negative cash from operating activities in FY 2017 of AED 1,337 mn
Net debt decreased by AED 702 mn from AED 1,490 mn in Q4 2017 to AED 787 mn in Q4 2018. Net debt to equity ratio decreased from 1.11x in Q4 2017 to 0.56x in Q4 2018
Awarded in three categories of the Emiratisation Government Accelerator Programme and honoured by H.E. Nasser Thani Al Hameli, the Minister of Human Resources in the Emiratisation Government Accelerator Programme
Within the MENA region, UAE and KSA are the largest construction markets and are set to register the highest growth and offer maximum opportunities in the coming years. Egypt is showing huge potential, underpinned by political stability and population growth.
The majority of the opportunities in the Gulf Cooperation Council (GCC) have been in the Building and Industrial segments.
The UAE construction market is estimated at AED 169 billion in 2019 and expected to grow at a CAGR of 6.8% over the coming five years.
Growth in the UAE construction market is driven by a number of factors including rising oil prices, a growing economy and Expo 2020.
Key focus on strategic alignment of the
Group to its vision, mission and values
Delivering a competitive advantage to the Group
Established in 1975, Arabtec Construction LLC (Arabtec) is the largest subsidiary of Arabtec Holding PJSC and delivers social and economic infrastructure projects including high-rise developments, airport terminals, luxury villas and iconic landmarks. Arabtec has undertaken projects in the UAE, wider GCC, North Africa and Asia.
Target Engineering Construction Company LLC was established in 1975 and is a leading single source EPC contractor with standalone specialties. With operations in the UAE, Qatar and Saudi Arabia, it is part of Arabtec Holding PJSC (owning 98% equity in the Company), the largest UAE-based construction group.
Emirates Falcon Electromechanical Co. (EFECO) LLC was established in 2001 to serve the electromechanical building services sector of the construction industry in the Middle East. The company has branches in Abu Dhabi, Doha, Amman and Riyadh.
Arabtec is fully committed to implementing the highest degree of corporate accountability across its business operations and towards its stakeholders. It proactively contributes to the UAE’s sustainability plans and targets and the sustainable development of other countries where it operates.
Arabtec aims to systematically and continuously improve its sustainability performance, taking into consideration the Group’s sustainability context and stakeholders’ input, as explained in the previous pages.
Arabtec aims to endorse Responsible Construction through its commitments to managing its core strategic responsibilities and the strategic foundations as shown in Arabtec’s sustainability framework:
Arabtec implements a formalised 4-Gate Work-Winning Process that aims to better control the risks related to its commercial and contractual commitments and, by extension, to project execution.
This mandatory process allows Arabtec to optimise the commercial costs of the organisation, to support a tender decision-making process based on objective risk information and to ensure that contractual commitments are in line with the organisation’s objectives and its defined risk appetite.
At each stage, a decision is taken as to whether or not to pursue the commercial opportunity based on a thorough risk analysis that supports the decision-making process through objective risk criteria.
Determine how the opportunity compares with selective better quality opportunities where Arabtec can add value
Consider tender strategies to reduce risk and improve financial outcomes
Prepare and review every tender in full detail, both technically and commercially
Do not submit a tender until the necessary reviews have been carried out and approvals are in place
Ensure significant matters and changes to the tender and/or submission are signed off by an appropriate member of management under the original delegated approval process
Conduct final thorough review and approval prior to signing a contract