Submissions of interest must be provided to the Trustee of the Bankruptcy Proceedings case within five business days of the publication of the announcement. Arabtec Engineering Services provides micro-tunneling, service lines and road construction, sewerage networks and lifting works.
It was in early January 2021 that Arabtec Holding began bankruptcy proceedings after all efforts to inject new capital or attract new investors failed. Arabtec was once one of the biggest contractors in the Gulf, having been associated with landmarks such as the Burj Khalifa and the Louvre in Abu Dhabi.
At the time of its bankruptcy, Arabtec was weighed under mounting losses in the billions, which occurred in a tightening project market. The impact of the 2020 pandemic further hampered new projects during the year. Arabtec also had significant exposures to creditors, and when new funds to shore up the business could not be found, voluntary liquidation was the only solution.
Arabtec had several subsidiaries, some of them supporting projects outside the UAE. Selling part of the core units would thus be an integral part of the bankruptcy proceedings, and this is exactly what is done with Arabtec Engineering Services.
Some of the contracts recently won by Arabtec Holding have since been awarded to new contractors.
With strong real estate demand, developers in Dubai are back to off-plan launches, which translates into higher project activity. The next four months will likely see more tenders, most of which will relate to property development.