Drake & Scull International PJSC - Comprehensive Analysis Report

Summary

Drake & Scull International PJSC (DSI) is a leading regional company specializing in integrated design, engineering, and construction, with a heritage dating back to 1881 in the UK and its first Middle East office established in Abu Dhabi in 1966. Registered as a Public Joint Stock Company in the UAE on January 21, 2009, and listed on the Dubai Financial Market, DSI has a mission to safely deliver world-class projects through its core values of People, Innovation, Passion, and Integrity, while promoting environmental protection and sustainable community development. The company's vision is to leverage its brand and heritage to become a global market leader, emphasizing engineering excellence, optimal shareholder value, and best practices in corporate governance and transparency. DSI has recently undergone significant financial restructuring, exiting a challenging period to refocus on operational efficiency and growth across its diverse high-performance sectors.

1. Strategic Focus & Objectives

Core Objectives

DSI's main business objectives revolve around a strategic revitalization following its recent restructuring. These objectives include:
Revitalizing operations to enhance overall organizational health and efficiency.
Controlling costs rigorously to improve profitability and financial stability.
Ensuring the timely and high-quality delivery of current projects.
Actively pursuing and winning new projects to expand market share and revenue streams.
Driving productivity and growth across all business segments.

Specialization Areas

The company provides end-to-end solutions across several key sectors, demonstrating its expertise and unique value propositions:
Engineering (MEP): Specializing in Mechanical, Electrical, and Plumbing solutions, including Design & Build (DB) and Engineering, Procurement, Construction (EPC) projects.
General Contracting: Offering comprehensive construction and management services for large-scale projects.
Oil & Gas: Delivering end-to-end EPC services for onshore and offshore oil facilities, from process design to facility startup.
Water & Wastewater Treatment: Executing projects and services related to water, wastewater treatment, and renewable energy, primarily through its subsidiary, Passavant Energy & Environment.
Rail & Infrastructure: Developing and delivering critical systems and services for stations, depots, and tunnels, catering to increasing investment in this sector within the Middle East.

Target Markets

DSI's primary market segments span the GCC and the wider Middle East, with an extended reach into Europe and parts of North Africa. The company maintains established offices in the UAE, Saudi Arabia, Qatar, Kuwait, Oman, Egypt, Jordan, Algeria, and India, strategically positioning itself to serve these diverse regions.

2. Financial Overview

Funding History

Drake & Scull International PJSC has successfully completed a comprehensive financial restructuring in recent years.
Debt Restructuring (2024): The company completed a debt restructuring process that involved writing off 90 percent of its Dh4.18 billion ($1.1 billion) in financial and commercial debts. The remaining 10 percent of liabilities to financial and trade creditors (with debts exceeding AED 1 million) are being settled through the issuance of mandatory convertible sukuk, which will convert into shares five years from the date of issuance. Creditors with debts less than Dh1 million received cash settlements totaling Dh13.6 million.
Capital Increase (May 2024): DSI successfully completed a capital increase, raising over AED 450 million. The capital increase was targeted at 600 million UAE Dirhams, distributed over 2.4 billion shares, with a discounted subscription price of 25 fils per share.
Fund Utilization: The net proceeds from this capital increase are intended to enhance working capital, fund capital expenditures, support ongoing operations, and facilitate future growth, including potential acquisitions.
Impact on Company Growth: This capital infusion, coupled with debt write-offs, has provided a stable financial foundation, allowing for the resumption of strategic growth initiatives and project execution.
Trading Resumption: DSI's shares resumed trading on the Dubai Financial Market in May 2024, following a six-year suspension.
Financial Performance (H1 2025): The company reported a net profit of Dhs6.5 million for the first half of 2025, compared to Dh3.8 billion in the same period last year (the prior-year figure was significantly boosted by a one-off restructuring gain). Revenue for H1 2025 climbed 57 percent year-on-year to Dhs77.9 million, supported by project momentum in India, Tunisia, Romania, and Jordan. Gross profit for the same period rose to Dhs5.9 million.
Recent Revenue: The latest twelve months revenue ending September 30, 2025, was $45.25 million USD.
Historical Revenue: Revenue for fiscal years ending December 2020 to 2024 averaged $120.7 million, with reported revenues of $49.6 million in 2020, $40.94 million in 2021, $22.07 million in 2022, $25.55 million in 2023, and $27.68 million in 2024.

3. Product Pipeline

Key Products/Services

DSI is actively building a renewed project pipeline, focusing on high-value contracts and strategic diversification. Its services encompass integrated design, engineering, procurement, construction, and commissioning.
Arabian Hills Project (UAE):
Description: Two major contracts for infrastructure works, power works, street lighting, and the construction of a Sewage Treatment Plant.
Value: Combined value exceeding AED 1 billion.
Development Stage: Recently secured contracts (early 2025).
Target Market/Condition: Large-scale infrastructure and utility development within the UAE.
Key features and benefits: Significant revenue generation, strengthening DSI's presence in the UAE infrastructure sector, and contributing to national development.
North Balqa Wastewater Treatment Plant (Jordan):
Description: Construction and development of a wastewater treatment facility.
Value: Dhs215 million.
Development Stage: Secured contract.
Target Market/Condition: Public utility infrastructure for water security and environmental management in Jordan.
Key features and benefits: Addresses critical public health and environmental needs, expands DSI's footprint in regional water infrastructure.
Water Treatment Plant (Maharashtra, India):
Description: Development of a water treatment plant.
Value: Dhs169 million.
Development Stage: Secured contract.
Target Market/Condition: Industrial and municipal water supply solutions in India.
Key features and benefits: Reinforces DSI's expertise in water treatment solutions, taps into a growing Indian market.
Commercial Real Estate Development (Majan, Dubai):
Description: DSI's first self-owned commercial real estate development project.
Development Stage: Embarking on the project.
Target Market/Condition: Diversification into real estate asset ownership and development in Dubai.
Key features and benefits: Diversifies revenue streams beyond pure contracting, potential for higher margins and asset value appreciation.

4. Technology & Innovation

Technology Stack

Drake & Scull International leverages advanced technological platforms and methodologies to enhance project delivery and operational efficiency.
Integrated Management Systems: The company operates with fully Integrated Management Systems certified to ISO 9001:2015 (Quality), ISO 14001:2015 (Environmental), and ISO 4500:2018 (Occupational Health and Safety) standards. These certifications ensure adherence to leading practices in building, health, safety, environmental, and energy management.
Project Information Management: DSI partners with Aconex, a Software-as-a-Service (SaaS) platform, for collaborative project information management. This platform facilitates:
Enhanced document control across offices and project operations.
Increased productivity through streamlined workflows.
Reduction in physical printouts, supporting sustainability efforts.
Recovery of lost time by improving communication and information access.
Enterprise Resource Planning (ERP): The company is implementing Oracle's JD Edwards EnterpriseOne, an integrated application suite for ERP, which is being rolled out across its various markets. This system aims to centralize and optimize core business processes.
Building Information Modeling (BIM): DSI has increased its adoption of Building Information Modeling (BIM) through Aconex's Connected BIM capabilities. This enables:
3D analysis of construction designs for comprehensive visualization.
Identification of structural weaknesses and potential design flaws.
Analysis of heat signatures and other performance metrics.
Development of optimized design solutions.

While DSI utilizes these advanced systems and strategic partnerships for technology, there is no publicly available information regarding proprietary technologies or specific patents held by the company.

5. Leadership & Management

Executive Team

Drake & Scull International PJSC is led by an experienced team of professionals:
H.H. Shaikh Theyab bin Tahnoon Bin Mohammad Al-Nahyan
Position: Chairman of the Board.
Professional Background: Over twenty years of experience.
Muin El Saleh
Position: Group Chief Executive Officer (CEO).
Professional Background: Reappointed CEO in November 2024, previously served from June 2017 to October 2019. Over 25 years of extensive experience in the engineering, construction, and infrastructure sectors, with executive leadership roles at prominent firms across the Middle East and international markets.
Key Contributions to the company: Focuses on revitalizing operations, strengthening project delivery, and positioning DSI for sustainable growth.
LinkedIn Profile: https://www.linkedin.com/in/muin-el-saleh-3a56247
Mr. Khalid Sukhon
Position: Group Chief Financial Officer (CFO).
Professional Background: Appointed in May 2025. Over 25 years of international and regional experience in finance, investment, and enterprise transformation. Previous roles include senior finance positions at National Bonds Corporation (Group CFO), Al Hilal Bank, Aldar Properties (Provis Estate Management), KPMG, and PwC. Holds a Master's degree in Finance and Investment from the University of Exeter (UK) and a Bachelor's degree in Accounting from the University of Jordan.
LinkedIn Profile: https://www.linkedin.com/in/khalidsukhon/
Mr. Ahmed El-Bayouk
Position: Group General Counsel and Head of Legal.
Professional Background: Appointed in May 2025. Joined DSI from Dentons & Co. Deep expertise