MIRA
INFORM REPORT
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Report Date : |
27.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
ARAB CONTRACTORS
SAE |
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Registered Office : |
26 El Gomhouria
Street, Cairo |
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Country : |
Egypt |
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Date of Incorporation : |
1940 |
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Com. Reg. No.: |
59522, Cairo |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Operates in
fields ranging from various water projects to building waste water stations. Execution of all projects
serving the transportation area Engaged in the
construction of electrical power plants, as well as high voltage distribution
networks. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : ARAB CONTRACTORS SAE
Also Known As : OSMAN AHMED OSMAN AND CO
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Registration Date : 1940
Commercial Registration Number : 59522, Cairo
Issued Capital : £E 296,245,000
Paid up Capital : £E 296,245,000
Total Workforce : 70,000
Line of Business : Engineering and construction.
Financial Condition : Undetermined
Payments : Prompt
COMPANY NAME
ARAB CONTRACTORS
SAE
ALSO KNOWN AS
OSMAN AHMED OSMAN AND CO
ADDRESS
Registered & Physical Address
Location : 26 El Gomhouria Street
Town : Cairo
Country : Egypt
Telephone : (20-2) 3935011 / 3935455 / 3935223
Facsimile : (20-2) 3925728 / 3937674
Email : info@arabcont.com
Premises
Subject operates
from a large suite of offices that are owned and located in the Central Business
Area of Cairo.
Branch Office (s)
Subject has 37 branches in a network covering the whole of Egypt,
including the following
·
67 El Sultan
Hussain Street
Alexandria
Tel : (20-3) 4828628
Fax : (20-3) 4839406
·
South Valley
Branch
El Sadat Road
Aswan
Tel : (20-97) 308004 / 5
Fax : (20-97) 308006
·
North Delta
Branch
15, Mostashfa El Amm Street
Mansoura
Tel : (20-50) 374788
Fax : (20-50) 374784
·
East &
Middle Delta Branch
Ibrahim El Desokee Street
Tanta
Tel : (20-40) 337065 / 344339
Fax : (20-40) 349327
·
Red Sea Branch
Hurgada
Tel : (20-65) 547163
Fax : (20-65) 547163
·
El Kantara
Shark
Sinai
Tel : (20-64) 720445
Fax : (20-64) 721005
Subject also has a further 28 branches located overseas in Africa, the
Middle East, Asia and Europe.
KEY PRINCIPALS
·
Ismail Osman Chairman
& President
·
Adel Ayoub Senior
Vice President
·
Rizk El
Shenawy Vice
President
·
Said Azmy Vice
President
·
Zein El Sadat Vice
President
·
Ibrahim Mahlab Vice
President
·
Mahmoud Mohamed
Ahmed Vice
President
·
Mohamed El
Nabawy Board
Member
·
Amin Mobasher Board
Member
·
Hatem Abou El
Enein Board
Member
·
Ahmed Shaaban Board
Member
·
Nabil Kamel Board
Member
·
Hani Baleigh Board
Member
·
Noah Meshref Board
Member
·
Mamdouh El
Badawy Board
Member
·
Osama Shawky Board
Member
·
Abdallah
Gebril Board
Member
·
Faisal Mortada Board
Member
LEGAL FORM & OWNERS
Date of Establishment : 1940
History : Osman Ahmed Osman, the founder of Arab
Contractors, died on 1st May 1999,
aged 82. Osman started his career as a civil engineer in Ismailiya in
the early
1950s, carrying out construction work in the
British-occupied Suez Canal Zone.
He established the reputation of Arab
Contractors on the work the company did
on the earth-fill section of the Aswan High
Dam project in the 1960s.
Arab Contractors was nationalised by
President Nasser, but was accorded
special privileges that have allowed the
company to effectively operate as a
private firm. Arab Contractors made an
important contribution to the Egyptian
army’s successful crossing of the Suez in
the 1973 war with Israel, by
developing a system of high pressure hoses that
weakened the Israeli
defences. In 1974, President Sadat appointed
Osman as Minister of housing
and reconstruction, a move that aroused some
controversy at the time. Osman
withdrew from active involvement in the
company during the 1980s, and Arab
Contractors is now run by his nephew, Ismail
Osman. With some 70,000
employees it is still the leading Egyptian
construction firm, but has now to
operate in a much more competitive
environment than was the case during the
heyday of the company’s founder.
Legal Form :
Societe Anonyme Egyptienne
- SAE (Egyptian Joint Stock Company)
Commercial Reg. No. : 59522, Cairo
Issued Capital : £E 296,245,000
Paid up Capital : £E 296,245,000
Name of Shareholder (s) Percentage
·
Government of
Egypt 100
%
Note to the Legal Form
The Egyptian Company Law provides that the capital of a Societe Anonyme Egyptienne - SAE – should not be less than £E 500,000 if shares are offered to the public and £E 250,000 if not. If shares are offered to the public they are freely transferable, if not, transfer may be restricted. Liability of shareholders is limited.
LINE OF BUSINESS
Operations : Subject’s activities are performed by the
following divisions :
- Water & Sewage
Division
Arab Contractors operates in fields ranging from various water projects
to building waste water stations. The firm is considered a leader in the area
of water utilities in the Middle East.
- Public Buildings
Division
Leader of the building market in the Middle East, the company relies on
its technical clout and commercial approach to confirm its position as an
expert in general contracting.
- Transportation
Division
This field comprehensively includes execution of all projects serving
the transportation area, including roads, highways, flyovers, underpasses,
bridges, tunnels, harbours and airports together with the related maintenance
works.
- Housing Division
Arab Contractors has great experience in designing and executing the
various housing projects such as residential towers and residential complexes
in new cities.
- Quarries &
Ready-mix Concrete Division
Subject is a major construction company and due to the continuous need
for several specialised activities to support its work this division was established
with the aim of supplying concrete and cement as well as other building
materials.
- Power Stations
& Electrical Networks
Engaged in the construction of electrical power plants, as well as high
voltage distribution networks.
- Agriculture &
Irrigation
Agriculture and Irrigation is considered one of the main sectors for the
Egyptian government. Arab Contractors is considered one of the major companies
in this field in the Middle East, starting with High Dam international project
and project of widening and deepening the Suez Canal and the colossal project
of Salheia land reclamation and agriculture. Subject covers work such as
irrigation structures, siphons, navigation locks and barrages, as well as
bridge and dam protection and maintenance.
- Factories &
Mines
The company’s track record over more than half a century in this field
indicate the unique ability to handle any volume, specialisation and capacity
of the required industrial projects. Activities in this sector include factory
construction for the production of cement, aluminium, iron, coke, chemicals,
fertilisers and foodstuff, as well as the construction of mines for phosphate
and coal.
Import Countries
: Europe, Asia, the Far
East and the United States of America.
Subject has a
workforce of approximately 70,000 employees.
FINANCIAL HIGHLIGHTS
Companies registered in Egypt are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.
BANKERS
·
National Bank
of Egypt
24, Sherif Street
Cairo
Tel : (20-2) 3924175
·
Misr
International Bank (MIBANK)
Alfy Street
PO Box : 631
Cairo
Tel : (20-2) 5931002
Fax : (20-2) 5912306
Subject also holds accounts with the following banks :
·
Banque du
Caire
·
Banque Misr
·
Suez Canal
Bank
·
Mohandes Bank
·
National
Societe General Bank
·
National
Investment Bank
·
Islamic
International Bank for Investment
·
Arab National
Bank
PAYMENT HISTORY
Subject’s payment
record is reported to be met in a generally prompt manner.
GENERAL COMMENTS
Over the course of
more than half a century, Arab Contractors has successfully undertook a variety
of engineering, construction, environmental, industrial, mining, power and
transportation projects.
Arab Contractors is
a major worldwide engineering and construction firm with annual revenues in
excess of US $ 1.25 billion. The company’s experience encompasses more than
1,500 projects in 29 countries with contracts underway on three continents.
Maximum suggested
credit figure: US$ 1,500,000
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)