Al-Futtaim Carillion boosts forecast to Dhs6bn following huge contracts win

The group began its two-day showcase of its UAE operations to a select gathering of leading international analysts and investors in Dubai.

The presentation moves to Abu Dhabi.

The two-day briefing follows Wednesday's visit to the UAE by the Right Honourable Gordon Brown, the UK Prime Minister, and Lord Mandelson, the UK's Secretary of State for Business, Enterprise and Regulatory Reform.

The UK Prime Minister and Business Secretary were accompanied by a number of senior UK businesses leaders, including Carillion Chief Executive, John McDonough.

Following the visit it was announced that Al-Futtaim Carillion had been selected for contracts for Dhs3.6bn of major construction work in Dubai and Abu Dhabi.

In Abu Dhabi, Al Futtaim Carillion signed a Heads of Terms agreement for an Dhs3bn long-term contract to build the Al Muneera phase of Aldar's
Dhs60bn Al Raha Beach development.

The contract is due for completion in April 2011 and will involve the provision of a 14-storey office building, eight 14-storey apartment buildings, 148 townhouses and 11 luxury villas facing the development's canal and waterfront.

This is Al-Futtaim Carillion's second major project for Aldar in Abu Dhabi, having been awarded an Dhs1.5bn contract for the Race Track Hotel on Yas Island in June of this year.

In Dubai, Al-Futtaim Carillion has been selected by the German Business Park FZCO to deliver its German Business Park project, which is expected to be worth more than Dhs600m and completed in less than two years.

Lord Mandelson said: "The UK and the Gulf have a long-established business relationship. In the current climate it is even more important than ever that we seize every opportunity for long-term economic growth. Al-Futtaim Carillion is already a leading contractor in the Gulf. These two agreements representing £600m [Dhs3.6bn] of business will make an important contribution to the economies of both the UK and the UAE."

Mr. McDonough added: "Over the past 35 years, Al-Futtaim Carillion has established a strong reputation for delivering high quality projects for Government and blue-chip customers. Our selection for these prestigious projects further enhances that reputation."

"We look forward to working closely with Aldar and the German Business Park FZCO to deliver these projects and to developing strong, long-term relationships to support delivery of their future investment plans, including the substantial development programme that Aldar has in Abu Dhabi over the next 10 years."

"Our order book and pipeline of probable new orders in the Middle East remains strong and we are firmly on track to achieve our previously announced objective of broadly doubling the sales revenue of our joint venture businesses in the region to an annual run rate of over Dhs6bn by the end of 2009, of which Carillion's share will be over Dhs3.6bn."

During Thursday's meeting with analysts and investors Carillion confirmed that it remains firmly on track to broadly double the revenue of its businesses in the Middle East and North Africa. Carillion stated the Group expects to make strong progress in 2008 and deliver materially enhanced earnings in 2009.