CONSTRUCTION COMPANIES ARE RUNNING OUT OF CASH

The effects of COVID-19 in the Construction Industry is becoming more evident, as companies start to run out of cash. This comes after Arabtec, the construction giant that was involved in the construction of the Burj Khalifa (tallest building in the world during its topping out ceremony in 2009) has announced their decision to dissolve the company.

According to the company’s chairman, Waleed Al Mokarrab Al Muhairi, “In recent years,” he said, “limited liquidity in the construction sector has impacted the progress of Arabtec’s projects and this has been exacerbated by the effects of COVID-19. Despite efforts to pursue legal and commercial entitlements and a restructuring of the Company’s finances and operations, the situation in which Arabtec finds itself today is untenable.” 

Many companies in the built industry are running out of cash! The situation could get worse as most African countries are struggling to salvage their economies. 

Source: Global Construction Review