Drake & Scull Wins Contracts Worth $87 Million
The Dubai firm secures contracts in Saudi Arabia and the UAE ahead of Q3 profit announcement.
Drake & Scull has won three new contracts in the GCC worth a combined total of around Dhs318.5 million ($86.7 million) the firm said in a statement on Tuesday.
The Dubai-listed contracting company secured mechanical, electrical and plumbing contracts for a commercial development in Saudi Arabia worth around 83 million riyals.
The firm also won contracts for a government administration facility and a hospitality venue in Abu Dhabi worth Dhs115 million and Dhs118.5 million.
Analysts forecast a 29 per cent drop in profit compared to the same period last year when Drake & Scull announces its third quarter earnings later this week.
In an exclusive interview for Gulf Business‘s December issue, Drake & Scull’s chief executive officer, Khaldoun Tabari, said a lack of capital funding and collection of payments continue to plague the region’s construction industry.
Tabarai said: “Although liquidity is improving – since real estate developers and contractors can now get financing from less stringent banks – the risk is from clients: can you get your money back?”