Vehicles move towards the skyline of Dubai with the world's tallest building, Burj Khalifa.(AP Photo/Kamran Jebreili)
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Dubai's two biggest builders are turning to bank borrowing to help fund projects as a rise in late payments from their customers takes the shine off a booming construction market. Arabtec Holding PJSC, the contractor that helped push Dubai stocks into a bear market in June, said money owed by clients had risen to 8.8 billion dirhams ($2.4 billion) through the second quarter, from 7.2 billion dirhams at the end of 2013 . Drake & Scull International, the emirate's second-largest publicly traded builder, took two term loans totaling about 199 million dirhams in the first half, according to its financial statements. Arabtec's debt climbed by 392 million dirhams in the second quarter to 1.29 billion dirhams.Arabtec reported an 11 percent rise in second-quarter profit to 103 million dirhams. Drake & Scull's profit for the period dropped to 25.9 million dirhams from 44 million dirhams a year earlier.Arabtec's debt-to-equity ratio is around 22 percent, compared with 54 percent for Drake & Scull, Shuaa's Safieddine said.
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