Arabtec has no plans to renew talks with Abu Dhabi state fund Aabar Investments on taking a stake in the Dubai builder because its funding needs have eased, its chief financial officer said.

Sovereign fund Aabar, which owns stakes in German carmaker Daimler and commodities trader Glencore, scrapped a $1.7 billion deal to buy a 70 per cent stake in Arabtec through mandatory convertible bonds two years ago at the peak of Dubai's property market collapse.

Aabar recently raised its stake in Arabtec, fuelling speculation it may be interested in the company once again.

'There is no need to renew these discussions,' Ziad Makhzoumi said on Sunday. 'There were discussions earlier of them taking a stake. And now they bought a stake publicly. The board has decided that the convertible bond is not required, further funding is not required. So that is not an option anymore.'

Aabar raised its holding in Arabtec to 5.28pc, making it the largest shareholder. 'We welcome long-term institutional shareholders that show confidence in the company and the market,' he added.-Reuters