Burj Khalifa builder Arabtec Holding to shut down, files for liquidation

Abu Dhabi

UAE headquartered Arabtec Holding, the builder of the tallest building in the world Burj Khalifa, is on the verge of closing down and is planning to file for liquidation as per media reports.

It is learned that the company is debt-laden and the shareholders have voted to dissolve. The move is likely to threaten thousands of jobs and scores of suppliers and subcontractors in the Persian Gulf.

"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," the company said in a statement.

In the first half of the financial year, the company recorded a loss of $216 million and there were not many future projects under its belt

Arabtec’s board will have a maximum of two months “to allow for discussions with the main stakeholders before a liquidation application may be submitted to the competent courts,” the company said.

The impact on jobs would be “substantial” since the firm has about 40,000 employees, Jaap Meijer, head of equity research at Arqaam Capital, told a news channel.