Australian construction firm Leighton Holdings Limited on Friday said its Middle East construction interests “remained at high levels” despite the debt issues in Dubai.
The company said in a press release that it achieved a 160 percent increase in profit after tax of $289m for the six months to December 2009.
It saw the region providing “a good base of construction work…for the forseeable future”, the company added.
“Construction in the Middle East remains at high levels, despite the recent issues in Dubai, with oil and gas, commercial and economic infrastructure projects continuing to support the market, whilst investment in education and other social infrastructure is expected to grow,” said chief executive Wal King in a statement.
“The opportunities in the Middle East will provide a good base of construction work for the Habtoor Leighton Group for the foreseeable future,” King said.
“The Group is well placed with a very strong competitive base in Australia and leverage – both directly and indirectly – to the growth markets of Asia and the Middle East,” he added.
King said total revenue, including joint ventures and associates, was down 1 percent to $9bn versus $9.1bn last year while the company’s order book was boosted by the award of $11.7bn worth of new work including the $430m Khalifa Port in Abu Dhabi.
More than 400 projects with a total value of more $300bn have been placed on hold or cancelled altogether in the UAE, according to Dubai-based research house Proleads Group in July 2009.
The number of cranes in Dubai has slumped by around 50 percent from peak construction levels and current orders have ground to a halt, a leading crane manufacturer said last month.
“For the last couple of months it is zero, totally dead,” David Semple, managing director of Manitowoc Cranes, said of the number of orders the company has received from Dubai.
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