Arabtec starts work in Saudi Arabia

Arabtec Construction, the UAEÔÇÖs largest contractor by market value, has started groundwork on its first building project in Saudi Arabia, according to chairman Riad Kamal.Excavating started last week on a development in Riyadh, while the company was already seeking further opportunities for contracts in the country, Kamal said in an interview. ┬á┬áArabtec Construction, a subsidiary of Arabtec Holding, is eager to tap growth opportunities in the GulfÔÇÖs largest economy as Dubai's property sector slows. ┬á┬á┬á┬á ÔÇ£The potential is excellent for us in Saudi,ÔÇØ said Kamal, without specifying the details of the Riyadh project.┬á Its first few contracts were already in place through CPC Services, one of its partners in the kingdom, but thereafter Arabtec hoped to bid for new proposals itself, Kamal said. ┬á┬á The company said last month it had formed a joint venture with CPC Services, a member of the Saudi bin Laden Group, and Prime International Group Services, to take advantage of infrastructure and construction spending in the country.Turnover for the new subsidiary in its first year would be around $400 million, expected to grow to around $934 million in two years, said Kamal.It has already relocated a 60-strong management team from its Dubai headquarters to Saudi and is in the process of moving a labour force of 2,000 to the kingdom.