Leighton wins $650m UAE building orders

Leighton secured a $520 million contract to build the JAFZA convention centre in Dubai and a $130 million order to build two hotels in Abu Dhabi for theme-park developer Aldar Properties PJSC, the Sydney-based company said in a statement yesterday.

"These new contracts are further evidence of the tremendous opportunities for growth in the Arabian Gulf region," David Savage, managing director of Leighton International, said in the statement.

Chief Executive Officer Wal King is expanding in the Gulf amid growth in demand for the company's construction and engineering services. The UAE is home to some $220 billion of construction projects, more than any other Gulf state, as the country uses record oil revenue to diversify the economy by building hotels, airports and factories.

Leighton in September agreed to pay A$870 million ($760 million) for 45 per cent of Dubai-based Al Habtoor Engineering, increasing its role in one of the world's fastest-growing real estate markets. Both orders were gained through Al Habtoor.

Leighton won a $550 million contract to develop part of Saadiyat Island in the U.A.E. in September and last month received a $290 million order to build the JW Marriot Hotel in Abu Dhabi. Leighton rose A$3.28, or 5.5 percent, to A$62.69 at the close of trading in Sydney. The stock has more than doubled this year, making it the fourth-best performer on the benchmark S&P/ASX index this year.