Acquisition of DSQ Fuels Horizontal Expansion For DSI

Reflects confidence in the Qatar economy, company says

Drake & Scull International PJSC has announced the completion of the acquisition of Drake & Scull International Qatar, LLC (DSQ), a Mechanical, Electrical and Plumbing (MEP) contracting company in Qatar.

According to DSI, the decision to acquire DSQ came following a series of stringent financial and legal due diligence and feasibility studies carried out by SHUAA Capital, PricewaterhouseCoopers and Al Tamimi & Company.

“With this move, we have made significant progress in meeting our strategic objective to increase DSI presence in the region, thus enhancing our access to a broader range of construction opportunities,” said Khaldoun Tabari, CEO, DSI PJSC.

Calling the acquisition a reflection of the company’s confidence in the Qatar economy, with its tremendous longterm growth potential, Tabari added: “DSQ is a prominent player in the market with strong management that brings us complementary capabilities and greater geographical diversification. Reaffirming our ongoing commitment on profitability, the acquisition will also have an immediate positive impact on both our backlog and bottom-line performance, with strong potential for continued growth going forward.”

According to IMF forecasts, Qatar’s real GDP growth is projected to rise by seven per cent in this year alone, which will result in greater government expenditure on construction and infrastructure.

DSQ, which was established in 2006, has undertaken a number of prestigious MEP projects, including the West Bay Complex and QTEL Headquarters, and more recently, the New Doha International Airport project (NDIA). The company’s backlog stands at Dh166 million as of January 2010, which would be entirely executed and consolidated by DSI PJSC as of January 1, 2010.