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Wednesday, 14 April 2010

Arabtec dumps Abu Dhabi on Nakheel payment hopes

The UAE’s largest construction company Arabtec announced that it has abandoned plans to sell a 70 per cent stake to an Abu Dhabi sovereign wealth fund, a move originally seen as an emergency bailout in view of late payments in the wake of the Dubai real estate crash last year.

Arabtec shares jumped on the news that investors took as a sign that the company is now financially secure. There was no immediate statement from the company but analysts said the group’s prospects had improved markedly since the Dubai World debt rescheduling proposal that includes the resumption of payments to contractors.