Dubai’s Drake & Scull expects to turn profitable in 2017, says CEO

Dubai-listed Drake & Scull International (DSI) is expected to turn profitable this year on approving its new capital restructuring plan and proceeding with high-yield projects, chief executive Wael Allan told Argaam in an exclusive interview.

The contractor will only focus on its core mechanical electrical and plumbing (MEP) business rather than other activities, including general contracting.

The role of Dubai-based Tabarak Investment, which will become a strategic partner of DSI, will not only be limited to injecting AED 500 million in capital but will also extend to developing business plans for the contractor.

Meanwhile, DSI will also reduce presence in overseas markets and will shut down some representative offices, including that of India.

DSI faces several challenges in Saudi Arabia and Qatar, while its operations are running smoothly in Dubai, Allan added, describing Dubai as a promising market.

The third phase of the Makkah Jabal Omar development is a cause of the company’s losses, with overdue receivables of AED 720 million.

DSI, however, is close to collecting receivables from another project, which has recently faced some obstacles.

The contractor’s shareholders approved on Sunday issuing new shares to its strategic partner, Tabarak Investment at AED 1 per share and increasing capital by AED 500 million.