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The Burj Khalifa skyscraper, center. Photographer: Christopher Pike/Bloomberg |
Shareholders of United Arab Emirates-based Arabtec Holding PJSC voted to dissolve the debt-laden construction firm, in a move that is likely to impact thousands of jobs as well as scores of suppliers and sub-contractors in the region.
Construction companies that sprung up more than a decade ago as a building bonanza swept Dubai and much of the Gulf are facing a reckoning as governments pull back on spending.
“After considering a number of strategic options, the shareholders of Arabtec Holding have voted to discontinue with the Group and dissolve it due to its untenable financial situation,” a spokesperson said.
The impact on jobs would be “substantial” since the company has about 40,000 employees, Jaap Meijer, head of equity research at Arqaam Capital, said in an interview with Bloomberg Television.
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