FCC in Abu Dhabi tie up

Spanish-based Fomento de Construcciones y Contratas (FCC) has signed a joint venture with Abu Dhabi's Commodore Contracting Company to take part in the UAE's infrastructure development programme.

The two companies will launch joint bids for transport infrastructure, services and public building projects with an estimated value of US$ 200 to 700 million (€ 137 to 480 million), in Abu Dhabi and Dubai as well as other emirates.

FCC, one of Europe's largest infrastructure and environmental services companies, said the tie-up consolidated its footprint in the region. Through its Austrian subsidiary Alpine, FCC built the Dubai Cricket Stadium in 2008 and has a US$ 100 million dollar € 68.4 million) construction project - owned by Abu Dhabi National Oil Company and Austrian Borealis - underway at Borouge in Abu Dhabi.

Earlier this year, FCC signed a joint venture with Qatar's Petroserv to bid jointly for key infrastructure projects ahead of Qatar's 2022 World Cup.

This latest agreement is part of FCC's global expansion strategy that has taken the company into over 50 countries to date, and which it hopes will lead to at least 60% of its revenue coming from outside Spain.

Chairman and CEO Baldomero Falcones said, "We're very proud to have a partner like Commodore that is well-established in the region. This is a great opportunity and a significant milestone for us, which has come about in part thanks to the excellent relationship between Spain and Abu Dhabi.''

Finding local partners to develop key infrastructure projects has been key to FCC's expansion in the Gulf and MENA (Middle East and North Africa) region, it said. Examples included Qatar (Petroserv), Algeria (ETRHB Haddad) and Egypt (Orascom).

FCC recently reported an improvement in profit of +9,8% for the first quarter of 2011 compared with the same period of 2010. Activities outside Spain largely compensated for the ongoing problems in the Spanish construction and cement businesses.