ARABTEC, the contractor part-owned by Abu Dhabi state fund Aabar, has signed a joint venture agreement with Korea’s Samsung Engineering Company to form a new company that will focus on large energy and power-related projects in the region.

The Dubai-based builder, which is planning a $1.8-billion capital increase as part of its expansion drive, said the new firm would be 60 per cent owned by Arabtec and headquartered in the UAE capital of Abu Dhabi.

Samsung Engineering would own the remaining 40 per cent. The partnership builds on the growing political and economic ties between Abu Dhabi and South Korea, with Korean companies also leading the construction of the UAE’s first nuclear power plant, a project worth around $20 billion.

Under the terms of the agreement, Arabtec-Samsung Engineering will bid for projects in oil and gas, power and infrastructure sectors in the Middle East and North Africa, for contracts ranging between $3 and $10 billion.