Arabtec Holding, a leading construction company in the Middle East, said it has received approval in principle from the Securities and Commodities Authority (SCA), the UAE's stock market regulator, for its recapitalisation programme.

The proposed structure of the recapitalisation programme is subject to the completion of Arabtec's 2016 full-year financial audit and final approval from SCA.

Arabtec reported a wider fourth-quarter loss on February 13, and its board said it was seeking shareholders' approval for a Dh1.5 billion ($408.4 million) rights issue to recapitalise the company.

Arabtec Holding chairman Mohamed Thani Murshed Al Rumaithi dubbed the recapitalisation move as a positive step forward for the company and said it will provide the foundation for building a successful and sustainable future for the group.

"The full commitment of our largest shareholder, Aabar Investments to the recapitalisation programme represents a huge vote of confidence in the Board and in the continuing strength of our business," he stateed.

"The group will soon release an investor presentation that will outline Arabtec's current position and its futire strategy," he added.-TradeArabia News Service