Bloomberg News

Sorouh Expects to Win Government Contracts, Director Says

October 17, 2011

(Updates with comment from managing director in second paragraph.)

Oct. 17 (Bloomberg) -- Sorouh Real Estate PJSC, Abu Dhabi’s second-biggest property developer by market value, expects to win contracts from the government for real estate projects in the next few years, a company official said.

“Sorouh is currently working with the government to win new projects,” Managing Director Abubaker al-Khouri told reporters in Abu Dhabi today. “We got 5.3 billion ($1.4 billion) to 5.4 billion dirhams worth of work from the government over the past two years and we expect a lot more in the next years.”

Sorouh shares slumped 4.3 percent at 11.13 a.m. in Abu Dhabi to 90 fils, the lowest intraday level since December 2005 when the company listed its shares. The stock is down 49 percent in the past year.

The falling share price “has a lot to do with sentiment,” al-Khouri said. “There’s uncertainty internationally. I don’t think it fairly reflects the value of the company.”

--Editors: Tim Farrand, Peter Woodifield

To contact the reporter on this story: Vivian Salama in Abu Dhabi at vsalama@bloomberg.net

To contact the editor responsible for this story: Inal Ersan at iersan@bloomberg.net


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