Reports are coming out that shareholders of Arabtec Holding have authorised the Dubai-listed construction company to file for liquidation, as announced in an internal company email sent out on Wednesday.
“Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation,” stated the email.
The email also mentioned that the company had been assessing its position “since reporting a first-half loss on lower revenue in a weak construction market.”
According to Reuters, the shareholders have also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator.
A general assembly was held on Wednesday to determine whether to continue operating or to dissolve the company following the COVID-19 pandemic and the increasing costs.
The assembly was held under an article of UAE law which requires companies to vote on whether to continue operating in the event of accumulating losses that amount to half of their issued share capital.
Arabtec is credited with building two of the country’s most iconic landmarks, Burj Khalifa in Dubai and the Louvre in Abu Dhabi.