Arabtec shares surge after former CEO increases stake

Shares in Dubai’s Arabtec surged yesterday after former chief executive Hasan Ismaik reportedly increased his shareholding in the builder.

The minor stake increase from 11.81 per cent from 11.91 per cent saw the stock up more than 14 per cent with more than 414 million shares changing hands, according to UAE daily The National.

Ismaik was appointed Arabtec CEO in February 2013. Under his leadership the company signed a $40bn project to build one million homes in Egypt and set a target to become one of the world’s top 10 contractors by the end of 2018.

His shareholding in the Dubai Financial Market-listed company had risen to 29 per cent by June 2014, when he resigned after the company saw its share price plummet.

By the end of 2014, the company’s shares had lost 60 per cent of their value and Ismaik had reduced his stake to 11.81 per cent after selling 16 per cent to Arabtec’s largest shareholder Aabar Investments in November, it was reported.

In 2015, Arabtec shares continued their decline due to doubts about the Egyptian project, a slowdown in the construction sector and declining confidence in the regional and global economies.

The company’s shares closed at 1.44 yesterday from 1.26 the previous day.