Dubai construction giant Arabtec posts $627 million loss

DUBAI, United Arab Emirates – The Dubai construction company that helped build the city’s record-breaking Burj Khalifa and many other buildings in the United Arab Emirates says it lost more than $600 million last year as building slows amid a slump in oil prices.

Arabtec Holding’s preliminary results released Sunday show a loss of 2.3 billion dirhams ($626.7 million) in 2015. That compares with a profit of 215 million dirhams a year earlier. Sales fell 12 per cent to 7.3 billion dirhams.

Arabtec says results were hurt by “the continuing difficult environment … and the challenging economic backdrop,” as well as several “poorly performing projects.”

Backed by Abu Dhabi’s state-run Aabar Investments, the company has cut costs following the abrupt departure of its then-CEO in 2014. It says it plans further cuts this year.