Dubai is the city of skyscrapers. However, there is one building that stands out clearly above all others: the Burj Khalifa. Now the construction company that built it is about to end.
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The construction company Arabtec from the United Arab Emirates, which was involved in the construction of the Burj Khalifa, is bankrupt and is to be dissolved. The company’s shareholders voted for it, as several media unanimously report.
The reason is the enormous mountain of debt of the group listed on the Dubai Stock Exchange. With more than two billion US dollars, the company is in the chalk with banks and customers.
Arabtec’s business also suffered because of the Corona crisis. For example, the world exhibition Expo 2020 was postponed to the end of 2021. In addition, the price of oil collapsed because of the pandemic. For the states of the Arabian Peninsula, which are heavily dependent on the oil industry, this was a severe blow – they canceled several major projects. The construction companies feel that too.
40,000 jobs are threatened at Arabtec
But the industry in the Arab Emirates has not only had problems since Corona. There has been an oversupply of apartments and hotels for years. “In recent years, limited liquidity in the construction sector has had an impact on the progress of Arabtec’s projects, and this has been compounded by the effects of Covid-19,” said Arabtec chief executive Waleed Al Muhairi.
The construction company’s board of directors now has two months to seek talks with those involved in order to possibly prevent liquidation. Up to 40,000 jobs are at risk.
In addition to the Burj Khalifa, which opened in 2010 and is the tallest building in the world at 828 meters, Arabtec also built the futuristic Louvre Abu Dhabi art museum.