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UAE-based Arabtec Holding has signed a Memorandum of Understanding (MoU) with South Korea's GS Engineering and Construction to form an infrastructure joint venture
The joint venture will pursue large-scale heavy infrastructure engineering and construction projects across the Middle East and North Africa (MENA) region, including metro, railway, bridge, port and tunnel projects, and will operate under the name Arabtec – GS Infrastructure LLC.
Arabtec has confirmed that the management team of the new joint venture, which has yet to have been appointed, will consist of executives from both partners and will be based in Abu Dhabi.
Lim Byeong Yong, President and CEO of GS Engineering and Construction said, "The growth in infrastructure expenditure in this region is substantial and we believe that our partnership with Arabtec is the perfect vehicle to solidify our operations in the Middle East, as well as contribute to the growth of its infrastructure sector and future generations of engineers."
GS has been involved in a number of major infrastructure projects across the GCC region in recent years, including the 18 km-long Doha Metro Red Line in Qatar, which was awarded to the firm in 2012. The Seoul-based construction and engineering giant is also currently building the marine jetty works in Ruwais in the UAE.
Arabtec's list of completed projects includes the world’s tallest building Burj Khalifa in Dubai and Abu Dhabi's Emirates Palace Hotel.
Arabtec Holding managing director and CEO, Hasan Abdullah Ismaik, remarked, “Another key component of the company’s five year growth strategy is being put in place through this new joint venture with GS.
"This partnership demonstrates further progress being made on diversifying the business into other high-margin and high-growth segments of engineering and construction. GS has a proven track record in the region, which further complements our expertise in the infrastructure sector and will allow both parties to capitalise on a range of new opportunities in this fast growing sector."