The shareholders of Arabtec have voted to liquidate the company due to the untenable financial situation.
The shareholders of Arabtec have voted to liquidate the company due to the untenable financial situation.Construction companies in the Gulf region are facing a reckoning as governments pull back on spending due to the difficult situation created by the coronavirus pandemic. The shareholders of the Arabtec Holding PJSC, builders of Louvre Abu Dhabi and the world’s tallest skyscraper, the Burj Khalifa held a general assembly meeting on September 30, 2020. They decided to discontinue and dissolve the company which posted a net loss of AED 794 million in H1 2020. Shareholders planned liquidation to maximize value for the stakeholders through a controlled and efficient program. Waleed Al Mokarrab Al Muhairi, Chairman of Arabtec, said that the company is in bad condition and no restructuring can be done. The liquidation application is expected to be submitted to the competent courts after discussion with the main stakeholders. The move will affect thousands of jobholders and contractors.