UAE construction giant reports declining profits

The largest construction firm Arabtec in the Arab Gulf region said Sunday that its net income for 2014 fell by 48 percent year-on-year to 241 million dirhams or 66 million U.S. dollars, blaming rising expenses.

In a brief to the Dubai financial market where Arabtec shares are traded, the Dubai-based company said net profits decreased due to overall costs and the increase in administrative expenses.

The firm added that in spite of the drop in profits, it aims to continue to grow organically and through acquisitions.

Arabtec, which built Dubai's landmark buildings such as the world's tallest tower Burj Khalifa (828 meters) and the world's tallest twisted building Cayan Tower, also operates regionally in over a dozen foreign countries such as Saudi Arabia, Syria, Jordan, Palestine and Egypt.

In Egypt, Arabtec plans to build one million homes for the army worth 40 billion dollars. In the Russian city of St. Petersburg, Arabtec is currently constructing the Gazprom tower, headquarters of Russia's first gas explorer and exporter, poised to become the tallest tower in Europe, standing at 400 meters. Endit