Arabtec, the contractor based out of Dubai and partly owned by Aabar Investments of Abu Dhabi, is now preparing for a US$650 million rights issue scheduled on June 9. The news was reported by UAE's market regulator last Thursday.

According to a statement from the Securities and Commodities Authority, Arabtec was able to obtain regulatory consent to 'start subscription in new capital shares.'

Arabtec announced last March that the fund to be raised was part of a larger five year expansion plan that includes a capital increase worth US$650 million by 2014's end should it be needed by the company.

The Dubai based firm is well known to be the builder of the Palm Islands in Dubai. It had earlier this year replaced its CEO in a shake up led by the Abu Dhabi sovereign fund Aabar Investments. Aabar is the company's largest investor and recent moves indicate it is tightening its control over the company.