UAE Project Contract Valuation

Dubai engineering firm Drake & Scull (DSI) will have an independent valuation firm assess the contract value for its infrastructure work on the Arabian Hills project in Dubai. The UAE's Securities & Commodities Authority (SCA) will appoint the firm to ensure the contract's "fairness and competitiveness." The project, spanning 6.2 million square meters, is valued at over Dh1 billion and involves infrastructure development for Arabian Hills Investment & Real Estate Development. DSI stated that the valuation process was transparent and based on independent engineering consultant reports, with "minor deviations from market benchmarks."

The Arabian Hills project is a significant win for DSI, representing one of its largest contracts since the Dubai Courts approved its turnaround strategy. This project involves comprehensive infrastructure oversight, including excavation, water and sewage networks, road connections, lighting, and treatment plants. The project's duration is over three years, with an additional one-year warranty period. Notably, the agreement does not require bank guarantees, which reduces the financial burden on DSI.

DSI anticipates a profit margin between 8% and 10% from the Arabian Hills project. This contract marks a substantial step in DSI's growth and expansion strategy, following its struggles against liquidation.