Construction Firm Reduces Accumulated Losses Significantly

Drake & Scull (DSI), a Dubai-based construction firm, has significantly reduced its accumulated losses from Dh5 billion to just over Dh2 billion by the end of 2024. The company is actively pursuing legal cases to recover outstanding receivables, with a recent court victory in January ordering its former CEO and another official to pay Dh151.9 million. This progress follows the approval and implementation of a restructuring plan by a Dubai Court in late 2023, which concluded in June 2024.

DSI is also focused on securing receivables from previous years, a process enhanced by the restructuring. Operationally, the company is making strides, including forming alliances to potentially secure contracts in Egypt and Saudi Arabia, along with a recent project win in India. Within the UAE, DSI has been awarded contracts worth Dh1 billion, strengthening its market presence and future revenue streams.

Sheikh Theyab bin Tahnoun bin Mohammad Al Nahyan, Chairman of DSI, emphasized the company's shift towards project execution, rebuilding client trust, and creating shareholder value. He highlighted the Dh1 billion project award as evidence of renewed market confidence and the alignment of the UAE and GCC's infrastructure investment plans with DSI's core strengths.

For 2024, DSI reported a net profit of Dh3.76 billion, a significant turnaround from a Dh267 million loss the previous year. This was largely due to a Dh3.79 billion write-back of liabilities resulting from the restructuring plan. Revenues for 2024 were Dh103.7 million, with a gross profit increase to Dh5.3 million. Sheikh Theyab noted that 2024 marks a new chapter for DSI, with strategic debt reduction and fresh capital injection strengthening the balance sheet and enabling a focus on sustainable growth.