Arabtec Holding PJSC, the builder of world’s tallest building, Burj Khalifa goes bankrupt!
Arabtec Holding PJSC is a Dubai-based construction company that was involved with the building of the world’s tallest building, Burj Khalifa. But sadly this company has entered into liquidation. Last week, the company made an announcement of its liquidation.
Arabtec Holding PJSC and its liquidation
Arabtec Holding PJSC has been suffering a loss for the last more than a decade. It started with the financial crunch that hit the world in 2008 and this got deepened with the current coronavirus pandemic. Arab Holding PJSC had constructed the world’s tallest building, Burj Khalifa. The Dubai-based construction company also has several other engineering marvels of the UAE to its credit.
Unable to recover from its debts and losses, the construction company has now made an official announcement about its end. The firm tried its level best to come out of the 2008-2009 financial crisis but was unsuccessful in it. Last year, it has hundreds of millions of dollars in losses and debts. The Chairman of the firm, Waleed al-Muhairi said:
“Despite efforts to pursue legal and commercial entitlements and a restructuring of the company’s finances and operations, the situation in which Arabtec finds itself today is untenable.”
About the firm, Arabtec
Arabtec was founded in 1975. It built a number of skyscrapers in Dubai and other parts of the UAE. Additionally, it has also ventured into the construction of infrastructure required for the pumping of oil and natural gas in the OPEC-member nation. It was closely involved in the construction of Burj Khalifa, the tallest building in the world. It has a height of 2717 feet that is equal to 828 meters.
The company had also built the Louvre Abu Dhabi, Emirates Palace Hotel in Abu Dhabi, and also the major centerpiece of Dubai’s upcoming EXPO 2020 world’s fair. On late Wednesday 30 September 2020, The Dubai Financial Market stopped its trading on Arabtec shares. That marks the end of this firm. Its biggest investor was the sovereign wealth fund Mubadala based in Abu Dhabi.
The financial crunch and Arabtec
Arabtec has struggled since 2009 to come out of the shadow of the financial crisis that hit Dubai in the late 2000s. Its property market collapsed and the city got $20 billion as bailout from Abu Dhabi. And then there was another setback in 2014 in the company. There was a corporate turmoil and it led to its share see a drop of over 60%. It is a big question on why financial regulators did not step in at that time to improve the transparency in the UAE markets. And now in 2020 came the coronavirus pandemic. The lockdown also affected the working of the company and increased its debts beyond repair.
The collapse of Arabtec will have a negative impact on the construction industry of Dubai and the UAE. There are some ongoing projects of the company that also will be affected. Dubai has severely suffered for a decade now and hopes of recovery seem bleak!