Arabtec Holding (Arabtec) has announced that its subsidiary, Arabtec Construction, has been awarded an AED1.7 billion project to build a 1,100 villas in Mohamed Bin Zayed City in Fujairah. The project will have a total built up area of c430,00 sqm. Construction will commence imminently with completion expected within 2.5 years.   This brings the total awards secured to date to AED4.8 billion in 2016, adding up the abovementioned contract to the AED2 billion contract from Aldar Properties, announced earlier this year, and the AED1.1 billion contract announced earlier this month. This is in addition to the USD1.1 billion Letter of Intent in Bahrain, which the company received jointly with Turkey-based contractor, TAV Construction, which is yet to be signed as a contract. Our numbers incorporate AED4.5 billion in new awards for the year (up from AED2.8 billion in 2015), which is now surpassed and is therefore subject to an upgrade. That said, our FV implies 38% downside potential to the current market price, and trading multiples are demanding, with a 2017e PER of 36.4x, and EV/EBITDA of 17.6x. We maintain our Sell rating on the name. (Mai Attia, Sara Boutros, Company disclosure)