FECON, Nakheel turning joint ideas into reality

The two businesses met in mid-March to discuss co-operation

In mid-March, Foundation Engineering and Underground Construction JSC’s (FECON) leadership met with Ali Rashid Lootah, the chairman of Nakheel Group, one of the world’s leading property and infrastructure developers. During their meeting in Dubai, the two sides made great efforts to translate their joint ideas into reality.

At the meeting with their foreign counterparts, FECON chairman Pham Viet Khoa and overseas director Do Tran Nam voiced their future investment plans and discussed co-operative opportunities in both Dubai and in the Vietnamese market. Specifically, FECON leaders introduced the projects that the company is implementing in Vietnam, and proposed that Nakheel Group become a joint investor.

For its part, Nakheel shared their specific investment plans, and introduced a raft of upcoming projects underway in Dubai where FECON can carry out the construction of foundation and infrastructure.

These open discussions, together with FECON’s proven commitment to drop anchor in overseas markets, are expected to materialise in a commitment to cooperate between the two sides.

FECON envisages opening a representative office in Dubai next month to prepare for approaching projects, as well as for the Expo Dubai 2020. This super-event, which is estimated to attract 25 million visitors, will run for six months from October 20, 2020 to April 10, 2021. FECON’s presence in Dubai will also allow it to proactively court investment from Middle Eastern investors who are seeking development opportunities in Vietnam.

Over recent years, FECON has stepped up its efforts to find business and investment opportunities as well as up-and-coming partners in overseas markets. Specifically, the company has given priority to researching and seeking co-operative opportunities in Dubai, Myanmar, and regional markets, as well as calling private investors from Japan, the Czech Republic, and the United Arab Emirates to come on board FECON’s projects in Vietnam.

Most recently, in November 2014 FECON took part in The Big 5 in Dubai – one of the five largest construction exhibitions in the world – as a construction business representing Vietnam at the event.

Last year, the company’s total asset value hit nearly VND2.2 trillion ($102.8 million), and its revenue amounted to VND1.354 trillion ($63.2 million). Its post-tax profits surpassed VND135 trillion ($6.3 million) and earning-per-share (EPS) was VND3,042. This year, the company is set to post the revenue of VND1.8 trillion ($84 million), and profits of VND160 billion ($7.4 million).

Nakheel Group is one of the top five groups in the UAE in real estate investment and infrastructure development with an iconic portfolio of famous artificial island projects like Palm Jumeirah Island and The World Island.

With an ardent wish to realise the vision of Dubai for the 21st century, Nakheel Group is implementing a string of urban projects, as well as commercial, retail, and entertainment centres to make Dubai a world-class destination of innovative ideas.

In Vietnam, Nakheel Group plans to invest in the 125 hectare Halong Star urban and tourism complex in the northern province of Quang Ninh costing $550 million. The group is also keen on studying available investment opportunities in the province’s Van Don Economic Zone.

Nakheel Group chairman Ali Rashid Lootah is scheduled to visit Vietnam late next month.