The contract was awarded by project developer Meydan LLC to WCT's 50:50 joint venture with Arabtec Construction LLC, a wholly owned unit of Arabtec Holding PJSC, WCT said in a letter to the Kuala Lumpur Stock Exchange.

Construction will begin immediately and is expected to be completed in two years, in time for the 2010 Dubai World Cup, the world's richest horse race, Meydan LLC said in a separate statement.

Meydan Racecourse, designed by Malaysian architect Teo Ah Khing, will feature a kilometer-long (0.6 mile) grandstand building with a capacity of up to 60,000 people, and will include a luxury hotel, more than 10 restaurants and a museum, the developer said.

WCT, which built the Formula 1 race tracks in Malaysia and Bahrain, is also partnering Arabtec Construction in a stormwater and sewerage project at Dubai World Central international airport.

Analysts said the racecourse project -- a brainchild of Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the United Arab Emirates and Ruler of Dubai -- represents WCT's fifth major contract for the year.

The project will lift WCT's construction order book to 7 billion ringgit (US$2 billion; euro1.44 billion) and potentially offers net margins of around 8-10 percent, Wong Chew Hann, a construction analyst with Aseambankers, said in a report.

"WCT is our top pick in the construction sector," he said, citing a target price of 8.10 ringgit (US$2.3; euro1.7) for WCT shares.

Trading in WCT shares was halted early Tuesday. WCT closed at 6.60 ringgit (US$1.9; euro1.37) Monday. Trade will resume 0630 GMT Tuesday.

Wong Ming Tek, an analyst with Hwang DBS Vickers Research, said the racecourse project will lift WCT's earnings to 118.7 million ringgit (US$34 million; euro24.5 million) in the year ending Dec. 31 2007, up 35 percent from 2006.

He forecast the earnings to rise further to 161.1 million ringgit (US$46 million; euro33 million) in 2008 and to 190.7 million ringgit (US$54.5 million; euro39.3 million) in 2009.