Shareholders of Arabtec approved a $1.75bn capital raising programme on 13 April.

The Dubai-based company is majority-owned by Abu Dhabi-based Aabar Investments, which has been tightening its grip on the group. Last month, Arabtec restructured its management, appointing Hasan Ismaik as its chief executive officer (CEO).

The company had said previously that the funds would be raised through a rights issue and debt issuances. It plans to raise the money in stages with AED2.4bn ($653.46m) to be raised through a rights issue before the end of June.

Most of the capital raised will go towards growth in its oil and gas, infrastructure and power business (55 per cent) and a quarter will go towards building affordable housing projects. The remaining 20 per cent will go into strengthening existing businesses and systems enhancements.

According to MEED Projects, Arabtec is bidding for $2.7bn of contracts expected to be awarded this year, including $572m-worth of projects being developed by Aabar.