Goldman Sachs invests $40 million in Dubai contractor

Dubai, United Arab Emirates (4E) – Investment bank Goldman Sachs International has invested in Dubai-based contractor Drake & Scull International (DSI) buying $40 million worth of warrants representing 8.5 percent of the company’s market capitalization.

The warrants mature in five years but the New York-based Goldman Sachs can buy shares in DSI after two years, according to Dubai’s second-largest contracting company.

Osama Hamdan, the chief financial officer of DSI, said the company looks forward to working together with Goldman Sachs in the future.

The Goldman Sachs investment follows DSI’s signing of a $120 million loan with Emirates NBD Bank, First Gulf Bank, HSBC Bank Middle East and Mashreqbank on Wednesday, Goldman Sachs coordinated the loan which will be used for the contractor’s expansion in North Africa and Asia.

GSI reported a 93 percent drop in third quarter profits ending in September compared to the same period last year due to rising cost and falling revenues.

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