When will Arabtec Holding shareholders get a break?
Despite an aggressive push to gain revenue from new contracts around the Gulf, analysts said the company's woes seemed far from over. But they added there was a glimmer of hope on the horizon.
Yesterday, the company's stocks fell 0.55 per cent to Dh1.80 a share as HSBC downgraded its rating of Arabtec, the Gulf's largest construction firm, to "underweight".
Violent protests in Egypt are also raising doubts about projects in which Arabtec is involved, including a joint venture with Amer Group working on projects said to be worth 300 million Egyptian pounds."The biggest concern for us are receivables on hold," said Majed Azzam, a property analyst at Alembic HC Securities.
"Given the situation and sentiment in the market with prices declining there's still fear that we'll see more deterioration of receivables in the UAE."
The outlook for the Dubai property sector is still weighing on Arabtec's prospects, Mr Azzam added. But he said the picture was not all bad for Arabtec.
"We like the move to issue new equity because this allows it to explore new opportunities in other growth markets," Mr Azzam said. "They were very successful going into Qatar and Saudi Arabia through JVs [joint ventures], but to get your own work you need a bigger balance.
"Arabtec and other contractors are trying to avoid the UAE and go into other countries. Everyone's trying to get a piece of Saudi Arabia and Qatar."
But Alfred Fayek, the head of Mena equity sales at EFG-Hermes, said other Gulf markets could still provide a boost for Arabtec.
"Arabtec should be poised to add some life to [its stock price] as one of the performers in the market during the coming year," Mr Fayek said. "But not because of what's going on in the UAE", rather because of projects elsewhere in the Gulf.
"Everything's cooling down here in the UAE right now," he said. "It's quite clear that there won't be any big revenues coming from Dubai, at least this year."
ghunter@thenational.ae
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
COMPANY%20PROFILE
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Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
The low down
Producers: Uniglobe Entertainment & Vision Films
Director: Namrata Singh Gujral
Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark
Rating: 2/5
A%20QUIET%20PLACE
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Zodi%20%26%20Tehu%3A%20Princes%20Of%20The%20Desert
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EEric%20Barbier%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EYoussef%20Hajdi%2C%20Nadia%20Benzakour%2C%20Yasser%20Drief%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
The%20specs
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
3/5
At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan