Arabtec Construction LLC (Arabtec), set up in 1975, is the biggest auxiliary of Arabtec Holding PJSC and conveys social and financial foundation ventures, including tall structure improvements, air terminals, extravagance estates, and famous milestones.
It has attempted ventures in the UAE, more extensive GCC, North Africa, and Asia. It has built both skyscrapers and the infrastructure needed to pump oil and natural gas in this OPEC-member nation.
Built Burj Khalifa
It helped make the Burj Khalifa, the centerpiece of modern downtown Dubai that at 2,717 feet (828 meters), is the world’s tallest building.
It also built the Louvre Abu Dhabi, Abu Dhabi’s Emirates Palace hotel, and a significant centerpiece of Dubai’s upcoming Expo 2020 world’s fair.
Running out of money
Arabtec has been enduring since Dubai’s 2009 budgetary emergency. The firm finished a year ago with countless dollars owing debtors and misfortunes.
Arabtec Holding PJSC made the declaration on Wednesday recommending the company’s end had come.
Arabtec chairman, Waleed al-Muhairi, said, “after years of setbacks, Arabtec’s projects were severely hit by the pandemic” in a statement published by Abu Dhabi’s state-linked newspaper “The National. ”
Arabtec’s corporate unrest in 2014 additionally observed it haul down the Dubai Financial Market by a fourth of its incentive as its offers fell over 60%, bringing up issues concerning why budgetary controllers didn’t step in and over straightforwardness in UAE markets.
Next Move
Arabtec’s next move is likely to hit scores of suppliers and sub-contractors in the UAE. Jaap Meijer, head of equity research at Arqaam Capital, told a news channel that the impact on jobs would be “substantial” since the firm has about 40,000 employees.
Arabtec had already laid off 300 staff, including engineers and project managers, and 3,000 contracted laborers, which amounted to roughly 20% from each category in June.
It had also cut the pay of its then existing staff between 10% to 40%.
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In the first quarter of 2020, the UAE economy shrank by 1% year on year, with non-oil gross domestic product down by 3% instead of hydrocarbon GDP, which rose by 3.7% yearly.
This job loss of 40,000 workers will affect the GDP of UAE majorly.