The Dubai-based construction company that helped build the world’s tallest building and other marvelous buildings in the UAE announced that it would enter liquidation, the final step in a long collapse from the country’s economic crisis a decade ago affected by the coronavirus pandemic.
Arabtec chairman, Waleed al-Muhairi, said in a statement that after years of setbacks, Arabtec’s projects were severely hit by the economic fallout of the pandemic. Arabtec’s board will have a maximum of two months “to allow for discussions with the main stakeholders before a liquidation application may be submitted to the competent courts,” the company said.
The impact on jobs would be “substantial” since the company has about 40,000 employees. “After considering a number of strategic options, the shareholders of Arabtec Holding have voted to discontinue with the group and dissolve it due to its untenable financial situation,” a spokesperson said.
The liquidation plan is meant “to maximize value for stakeholders through a controlled and efficient program,” Arabtec Chairman Waleed Al Muhairi wrote. “Our current priority is to ensure that everyone directly affected by this decision is treated fairly during this challenging time.”
Post Your Comments