Arabtec recorded a net loss of 774.5 million dirhams in 2019, due to weak income from construction works amid the scarcity of liquidity in the sector.
Construction company Arabtec Holding intends to file a request for liquidation due to heavy financial losses in the wake of the Covid-19 outbreak, and on Wednesday, the company's shareholders approved the board's plan to liquidate.
The Reuters news agency, citing sources, said that shareholders had authorized Arabtec to appoint Alex Partners, Matthew Wilde, or any other person or persons the board of directors considers suitable as a liquidator.
"Unfortunately, in light of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt the liquidation and dissolution plan due to the company's unstable financial situation," the company said in a statement.
Arabtec Holding recorded a net loss of 774.5 million dirhams in 2019, indicating weak income from construction work amid the lack of liquidity in the construction sector.
The company is also in the process of appointing a consultant to work on the capital and debt restriction plan after reporting losses and weak revenues in the first half of 2020.
The company has participated in some of the most important projects in the United Arab Emirates, such as the Louvre Museum, Burj Khalifa, the expansion of Dubai International Airport, Al Maktoum International Airport, and others.