Abu Dhabi state-fund Aabar Investments bought a 21.6 per cent stake in Dubai builder Arabtec for a value of Dh827.6 million ($225.32 million), an income statement by the fund's parent firm IPIC showed on Thursday.

The stake purchase shows Aabar valued Arabtec at around $1 billion. Arabtec currently has a market value of $1.2 billion following an 88-per cent surge in the share price in 2012.

Aabar, which owns stakes in high-profile names such as German carmaker Daimler and commodities trader Glencore, has been quietly building its stake in Arabtec this year through market purchases.

The Abu Dhabi firm first raised its Arabtec stake to disclosure levels in March when it emerged it owned 5.3 per cent in the builder. It later doubled the stake to 10.5 per cent through another subsidiary.

Arabtec eventually said in May that the fund owns a 20.8 per cent stake in the company.

Aabar had dropped a $1.7 billion bid for a 70-per cent stake in Arabtec two years ago. Months later, Aabar delisted from the Abu Dhabi bourse after it was taken private by IPIC.

Arabtec may also secure joint projects from Aabar on the back of a $2 billion deal signed between the fund and China State Construction Engineering Corporation this year, the income statement showed.

The deal would develop real estate projects in Abu Dhabi and would 'identify potential joint projects including those in which Arabtec Holding may be involved', the statement said.

The agreement signed in May would see Industrial and Commercial Bank of China providing Aabar with funding, while China State Construction will be the contractor. – Reuters