Local construction company Arabtec Holding has reported first-quarter profits of AED62.5m ($17m), marking a 97.3 per cent quarter-on-quarter rise. However, compared with the same period last year, the firm’s net profits marked a decline of 25.7 per cent, as a result of higher construction costs.

Net revenues rose to AED1.55bn, an increase of 20 per cent compared to the last quarter of 2012. The UAE continues to be the main contributor to its revenues, though profits from Saudi Arabia and Qatar are rising.

It is targeting a dividend payout of at least 10 per cent over the 2013 fiscal year.

Last month, Arabtec Holding announced it had signed a memorandum of understanding (MoU) with South Korea’s Samsung Engineering to form a joint venture company to work on projects across the Middle East.

Arabtec recently won the contracts for the construction of a new Fairmont Hotel in Abu Dhabi and Abu Dhabi’s Louvre museum, worth AED1.1bn and AED0.8bn respectively.

The contractor recently restructured its management, after Abu Dhabi investment fund Aabar Investments bought a controlling stake in it.