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Arabtec subsidiaries are going, going,… gone!MENA

Arabtec subsidiaries are going, going,… gone!

Construction giant Arabtec (ARTC) is on a liquidation spree as it prepares to sell two of its subsidiaries, Target Engineering and Arabtec Engineering Services, according to reports. The company, which has a series of other subsidiaries, is behind some pretty legendary buildings, including Dubai’s Burj Khalifa and the Louvre Abu Dhabi. However, Arabtec reported a net loss of around USD 215m in the first half of 2020 as it was badly impacted by COVID-19.

The Dubai-listed builder said it is now considering auction sales to get the most out of its assets and hopes the funds raised will be used to pay debts and salaries.

why it matters
Arabtec is surely not the only company in the construction industry that has struggled with carrying on with projects because of limited liquidity regionally, made worse by the pandemic. Time will tell which other companies in the sector have been hit hard too.