Carillion says that it is expecting losses in the Middle East and is provisioning £325m ($418m) to cover those costs.
The UK construction company says that it expects to provision a total of £845m, largely for four problem projects. In a briefing to analysts on 10 July it would not reveal which projects they were for commercial reasons, but it did confirm that three were in the UK and one is in the Middle East.
One challenging project for Carillion in the Middle East is Phase 1b on the Msheireb development in Doha – a contract it secured in 2011. It is understood that the project client has brought in Lebanons Consolidated Contractors Company (CCC) to assist with the completion of the works.
Qatar is one of the three Middle East markets that Carillion says it plans to exit. The other two are Saudi Arabia and Egypt. It has also sold 50 per cent of its interest in Carillion Alawi in Oman.
The future of other Middle East business units, such as the UAE joint venture company Al-Futtaim Carillion, is also uncertain as Carillion says that it is currently in the sale process for three other businesses and the disposal of these assets could raise £125m.