The Dubai builder Arabtec says it has gained approval in principle for a recapitalisation programme it announced earlier this month.

The approval was granted by the Securities and Commodities Authority, Arabtec said in a statement posted to the Dubai Financial Market.

Mohammed Al-Rumaithi, chairman of Arabtec, said the move “will provide the foundation for building a successful and sustainable future for the group”.

The proposed programme involves a AED1.5 billion rights offering. The price of the new shares to be issued is still to be determined, Arabtec said.

Upon completion of the offering, the paid-up captial of the group would increase from AED4.6 billion to AED6.1 billion, the statement said.