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Tuesday, 9 May 2017

Dubai's Good Times on Hold as Construction Companies Feel Pain - Bloomberg

Dubai's Good Times on Hold as Construction Companies Feel Pain - Bloomberg:

"Investors in United Arab Emirates construction stocks can remember the good days -- when oil above $100 a barrel encouraged a seemingly endless stream of lucrative projects. Now, with crude priced at half that, companies are trying to rebuild their balance sheets.

The downturn has translated into pain for investors in two of the largest construction companies in the U.A.E. Arabtec Holding Co. has slumped 90 percent from its May 2014 record, while Drake & Scull International PJSC is down 78 percent from its June 2014 peak. They took on too much debt as oil earnings prompted Gulf Cooperation Council countries to commission developments, said Majd Dola, a senior research analyst at Abu Dhabi-based Al Ramz Capital."



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