Dubai construction needs major project launches
25 April 2023
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> Two billion riders use Dubai Metro
> Residential property close to Dubai metro outperforms market
> Local firm wins Jubail Terraces contract in Abu Dhabi
> Foster designs Dubai’s first vertiport
> Damac launches new project in Dubai Business Bay
> Dubai returns to the iconic with Candy towers project
> Nakheel awards Jebel Ali Village construction contracts
> Bloom appoints contractor for Abu Dhabi project
> Firms seek to qualify for UAE-Oman rail works

Growing demand for property in Dubai combined with a resilient economy have brought winds of optimism to the emirate’s real estate market. At the same time, the government’s handling of Covid-19 and recent measures to improve the business environment have strengthened Dubai’s position as a safe haven.
Over the past year, there has been record demand for premium properties in the emirate, mostly driven by wealthy international buyers from markets such as Russia, India and Europe.
According to a recent report by Luxhabitat Sotheby’s International Realty, Dubai’s super-prime residential market enjoyed a strong start to 2023, with a 24.9 per cent increase in prices per square foot compared with the previous quarter.
The upswing has resulted in developers launching a number of new schemes. Projects announced in recent months include Al-Habtoor Group’s estimated AED9.5bn three residential developments; Shamal Holding’s Baccarat Hotel & Residences in Downtown DubaiDamac Bay by Cavalli.
In Jumeriah Lake Towers, Dubai Multicommodities Centre in partnership with Ellington Properties has launched the AED1.2bn high-rise mixed-use Upper House project, while in Meyan MAG Property Development is developing the AED3bn Keturah Reserve residential scheme.
New masterplans have been conceived too, including the estimated $5.4bn mixed-use Dubai South project announced by Azizi Developments in January 2023.
Dubai is also returning to what it is known for: eye-catching, iconic projects. Later this year, a joint venture of Dubai World Trade Centre and the UK’s Candy Capital is expected to announce a three-tower project billed as a super-prime real estate development in Dubai’s One Central commercial district. The UK firm is known for London’s One Hyde Park, one of the wealthiest property residences in the world.
Slow recovery
Yet a closer look at the number of awarded contracts in the construction and transport sector reveals that the market is still playing catch-up, despite the growing hype.
The value of contracts awarded increased only slightly from $6.8bn in 2021 to $8.42bn in 2022, according to data from regional projects tracker MEED Projects. This is still far off the pre-pandemic level of $13.6bn in 2019. It is also only a fraction of the value of awards in 2016 and 2017, when signed contracts totalled $24.68bn and $26.14bn, respectively.
The backdrop to the weaker value of recent awards is the dearth of major construction contract awards as the government cut spending on major infrastructure projects. This has led to the market being driven mainly by private real estate developers launching smaller projects.
A few exceptions stand out, including the $260m contract awarded in January to China State Construction Engineering Corporation to construct Damac’s Cavalli Casa tower. Moreover, there are clear signs that the trend is changing.
In addition to these projects, there are several other large-scale projects in the works, such as the estimated $1.2bn Waldorf Astoria Hotel by Al-Habtoor Group and Nakheel’s revived Palm Jebel Ali project, for which $4.6bn in funding was secured in November 2022.
The Palm Jebel Ali is about three times larger than the Palm Jumeirah, and will significantly increase the amount of waterfront land available for development in Dubai.
The soon-to-be awarded MGM Resort, Bellagio and Aria Hotels development by local developer Wasl is estimated at $500m. The three hotel resorts will be constructed on a man-made island off the coast in the Umm Suqueim area. The scheme is expected to feature 1,400 hotel rooms and apartments, in addition to retail, food and beverage and entertainment options.
Transport awards
It is hoped that the award of major infrastructure contracts may also restart this year, with the upcoming extension to the Dubai Metro network. After being put on hold, the scheme moved to the design stage in 2022.
The Blue Line project involves constructing more than 20 kilometres of new lines, about half of which are underground, in order to extend the existing Red and Green lines.
Dubai is also considering plans to restart the emirate’s largest construction project, the AED120bn ($33bn) expansion of Al-Maktoum International airport.
The expansion was officially launched in 2014. It involves building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year. An initial phase, which was due to be completed in 2030, will take the capacity to 130 million a year.
Tendering for work on the project stalled with the onset of the Covid-19 pandemic in early 2020.
The margins became negative in the sector, and we cannot compete with the local companies or the government-backed Chinese corporations
International contractor
Contractor sentiment
The sector’s incomplete recovery from the pandemic is confirmed by the net value of contract awards, calculated by subtracting the value of completed work from the value of awarded work.
Since 2018, the value of awarded contracts has been smaller than the amount of completed work, meaning contractors have fewer upcoming jobs.
Under these circumstances, companies that specialise in major construction projects are looking to other markets.
“The UAE market is too calm. There is not enough work for us,” a local contractor tells MEED. “We are looking to expand our activity to Saudi Arabia. The work is there now.”
Some international companies, having faced long payment delays or financial losses, have left the region. “The margins became negative in the sector, and we cannot compete with the local companies or the government-backed Chinese corporations,” said one international contractor.
As it stands, there are over $42bn of projects in the bid, design and study stages in Dubai, according to MEED Projects.
If major projects, such as the Al-Maktoum airport expansion, move into construction, they will provide a major boost for Dubai’s construction and transport industry.
This month's special report on the UAE includes:
> GOVERNMENT: Abu Dhabi strengthens its position at home
> ECONOMY: UAE economy steers clear of global woes
> BANKING: UAE lenders chart a route to growth
> UPSTREAM: Strategic Adnoc projects register notable progress
> DOWNSTREAM: Gas takes centre stage in Adnoc downstream expansion
> POWER: UAE power sector shapes up ahead of Cop28
> WATER: UAE begins massive reverse osmosis buildup
> CONSTRUCTION: Dubai construction needs major project launches
Exclusive from Meed
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Decision imminent on Dubai sewerage tunnel contracts24 April 2026
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Dubai scales up its metro ambitions23 April 2026
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Sports Boulevard tenders Wadi Hanifa road works23 April 2026
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Masdar to develop renewables projects in Montenegro23 April 2026
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Related Articles
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Decision imminent on Dubai sewerage tunnel contracts24 April 2026

A final decision on the first two packages of the flagship Dubai Strategic Sewerage Tunnels (DSST) project is imminent, with two remaining bidders having submitted best and final offers.
The AED80bn ($22bn) public-private partnership (PPP) scheme comprises three packages: J, W and Links.
According to a source, two consortiums led by Etihad Water & Electricity (UAE) and Vision Invest (Saudi Arabia) were recently invited to submit final bids for packages J and W, which were tendered last November.
The winning consortium is expected to be formally confirmed in the coming weeks once the required approval process is completed, the source said.
MEED had previously reported that three consortiums were bidding for the project, which is being procured by Dubai Municipality’s sewerage and recycled water projects department.
These included:
- Consortium 1: Led by Plenary Group (Australia) alongside Itochu (Japan) and Infrastructure Holding (UAE)
- Consortium 2: Led by Vision Invest (Saudi Arabia) alongside Suez Water Company (France)
- Consortium 3: Led by Etihad Water & Electricity (UAE) alongside Tamasuk Holding (Saudi Arabia) and Alkhorayef Water & Power (Saudi Arabia)
It is understood that the consortium led by Pleneray Group has since been dropped from consideration for the contract.
As MEED previously reported, the bid packages include equity partners, an appointed operator and a construction contractor.
Of the bidders still in contention, MEED understands that Vision Invest plans to act as operator for that consortium, while Suez will lead construction.
In the other consortium, EtihadWE plans to take the operator role, with construction led by France’s Veolia.
Large-scale sewerage network
The DSST masterplan project covers the construction of two sets of deep tunnels terminating at pump stations at Warsan and Jebel Ali Sewage Treatment Plants (STPs). It also includes over 200 kilometres of sewer links.
Construction work was previously categorised in multiple packages under the Warsan Strategic Tunnel Scheme (Package W) and the Jebel Ali Strategic Sewerage Scheme (J1 North, J2 South, J3 Jebel Ali Links).
These packages have now been restructured and renamed.
The bid submission deadline for the third 'Phase 2 Links' package, meanwhile, was recently extended.
The new deadline is June 30.
The three packages are being procured under 30-year design, build, finance, operate and maintain concession models.
The DSST project aims to convert Dubai’s sewerage system from a pumped network to a gravity-based system, enabling the emirate to replace existing sewage pumping stations and meet long-term capacity needs.
The programme also marks the first time the municipality will implement In-Country Value (ICV), a local content programme that promotes economic benefits.
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Dubai scales up its metro ambitions23 April 2026

Dubai’s rail sector has rarely seen such a concentrated burst of procurement activity as it has in the past year.
Within the space of a few months, Dubai’s Roads & Transport Authority (RTA) has moved simultaneously on three distinct fronts: tendering design consultancy for the Route 2020 extension that will connect the Expo 2020 metro station to Al-Maktoum International airport; inviting study-and-design bids for a 55-kilometre Airport Express Line linking Dubai International airport to Al-Maktoum International airport; and culminating in Dubai Ruler Sheikh Mohammed Bin Rashid Al-Maktoum’s approval of the AED34bn ($9.2bn) Gold Line, a 42km fully underground route that the emirate is calling the largest transportation project in its history.
These projects form a key part of the Dubai Rail Network Plan 2032, which outlines the development of six public transportation schemes comprising a mix of metro, passenger and high-speed rail lines.
The most prominent feature of the plan is the addition of new lines to Dubai Metro’s existing network, representing a systematic effort to support the shift of Dubai’s economic centre of gravity towards Dubai South and the vast development corridors in between.
The city is also seeking to stay ahead of the curve by investing heavily in infrastructure. Data from regional projects tracker MEED Projects shows that the emirate has awarded over $14bn-worth of transport projects in the past two years alone, with several other multibillion-dollar schemes still moving through the planning stages.
All of this work is being carried out in line with the Dubai 2040 Urban Master Plan, which forecasts the emirate’s population will reach 5.8 million by 2040 – a clear indication of the scale of daily movement the city must accommodate.
Project progress
Dubai Metro Gold Line
On 21 April, Sheikh Mohammed officially announced the launch of the new AED34bn ($9.2bn) Gold Line project.
The line will be a fully underground network spanning over 42 kilometres, with 18 stations.
It will run from Al-Ghubaiba in Bur Dubai to Jumeirah Golf Estates.
The Gold Line will connect with Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger network.
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the project.
Stage one covers concept design; stage two, preliminary design; stage three, preparation of tender documents; stage four, construction supervision; and stage five, the defects liability period.
Airport Express Line
Procurement has started for another metro line extending from Dubai International airport (DXB) in Al-Garhoud to Al-Maktoum International airport (DWC) in Jebel Ali.
Earlier this month, the RTA invited consultants to bid for a contract to study and design what is referred to as the Airport Express Line.
The proposed line will stretch about 55km and include five stations that will provide passengers with facilities such as remote airline check-in, baggage drop-off and security screening.
The new line will run from the Red Line metro station at DXB through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing on to DWC.
There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch toward Business Bay, where another station will be built.
Expo 2020 route extension
Dubai is also undertaking the Route 2020 extension of its metro system, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Consultants submitted their bids earlier this month for the design contract.
The extension will run for about 3km and feature two stations.
The existing Route 2020 metro link is a 15km line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
Dubai Metro Blue Line extension
Construction progress on the Dubai Metro Blue Line extension is expected to reach 30% by the end of 2026, according to official accounts.
In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project.
The contract was awarded to a consortium of Turkiye’s Limak Holding, Mapa Group, also of Turkiye, and the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).
The Blue Line will connect the existing Red and Green lines. It will be 30km long, with 15.5km underground and 14.5km above ground.
The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.
The project is scheduled for completion in September 2029.
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Contractors form teams for Bab Gas Cap main plant project23 April 2026

Contractors have formed consortiums to participate in the main tendering exercise for a major project involving the development of infrastructure to process incremental gas output arising from the unlocking of gas caps at the Bab onshore hydrocarbons development in Abu Dhabi.
As part of its 2030 upstream production increase goals, Abu Dhabi National Oil Company (Adnoc Group) is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field development – Thammama A, Thammama B, Thammama F and Thammama H. While the Thammama A, B and H reservoirs are estimated to collectively produce 1.45 billion cubic feet a day (cf/d) of gas, output from the Thammama F gas cap is expected to be at a rate of 396 million cf/d.
Existing trains at the Habshan processing complex in Abu Dhabi will be unable to handle the new gas volumes. Therefore, Adnoc Group subsidiary, Adnoc Gas, is required to build new facilities to process an additional volume of up to 1.85 billion cf/d of raw gas when its parent company starts production from the Bab gas caps.
Adnoc Gas is planning to build a gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipeline networks and other ancillary units, as part of the broader Bab gas cap development project. It has divided the engineering, procurement and construction (EPC) scope of work on the project into four packages:
- EPC package 1 – Main Bab gas cap plant
- EPC package 2 – Early civil works
- EPC package 3 – Pipelines
- EPC package 4 – Non-process area works
Abu Dhabi Securities Exchange-listed Adnoc Gas issued an expression of interest (EoI) document to contractors for the main EPC tendering process for the main Bab gas cap plant on 10 February. The company had set an initial EoI submission deadline of 17 February, which it later extended until 20 February, with contractors submitting responses by that date, MEED previously reported.
Following the completion of the prequalification phase, contractors that expressed interest formed the following teams to compete in the main contract tendering round, according to sources:
- Larsen & Toubro Energy Hydrocarbon (India) + Samsung E&A (South Korea)
- Saipem (Italy) + NMDC Energy (UAE)
- Technip Energies (France) + JGC Corporation (Japan) + Sinopec (China)
- Tecnimont (Italy) + China Petroleum Engineering and Construction Corporation (CPECC)
Adnoc Gas is expected to issue the main EPC tender for the central Bab gas plant in May, sources told MEED.
The other three packages remain in the main contract tendering stages, the sources said.
Prior to issuing the EoIs for the Bab gas cap development project packages, Adnoc Gas completed an early engagement process with contractors in September and October last year, as MEED previously reported.
In December last year, Adnoc Gas awarded the front-end engineering and design (feed) works for the Bab gas cap development project, which will increase its gas processing capacity by about 20%, to Australia-based consultancy Worley. The feed contract has a duration of more than 1.2 million man-hours, making it the largest-ever engineering job awarded by Adnoc Gas.
Adnoc Gas currently has a capital expenditure (capex) commitment of $20bn for the 2023-29 period, which is on course to increase to about $28bn as the company strives to achieve final investment decisions (FID) on the second and third phases of its rich gas development programme this year.
The first phase of the RGD project is under construction. Adnoc Gas awarded $5bn-worth of engineering, procurement and construction management (EPCm) contracts in three tranches for phase one of the RGD last June – the company’s largest-ever capital investment.
The second and third phases involve building a natural gas liquids fractionation train at the Ruwais gas processing facility and a new gas processing train at the Habshan complex, respectively, Peter Van Driel, the company’s chief financial officer, had earlier told journalists on a call.
MEED, in March, reported that Adnoc Gas had selected main EPC contractors for both the Ruwais NGL Train 5 and the Habshan 7 gas processing train projects, which are estimated to be valued at around $4bn each. Adnoc Gas is yet to officially award the EPC contracts for the two projects.
Adnoc Gas’ capex commitment could exceed $30bn when the company achieves FID on the Bab gas cap development project, which is currently expected later this year, Van Driel previously said.
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Sports Boulevard tenders Wadi Hanifa road works23 April 2026

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Saudi Arabia’s Sports Boulevard Foundation has issued a tender inviting firms to bid for a contract to build a road and associated infrastructure in the Wadi Hanifa area of Riyadh.
The bid submission deadline is 27 April.
The scope includes construction of an 11.4-kilometre road and associated infrastructure, including public realm works, utilities and security systems.
The scheme is the latest package to progress on Riyadh’s Sports Boulevard project.
The Sports Boulevard Foundation is also evaluating bids for its Global Sports Tower in the development’s Athletics District.
The 130-metre-tall Global Sports Tower will have a gross floor area of 84,000 square metres (sq m) and will include more than 30 sports facilities. The tower will feature what is billed as the world’s tallest indoor climbing wall, at 98 metres, and a 250-metre running track.
Sports Boulevard will run across Riyadh from east to west. Once complete, it is intended to be the world’s longest park, stretching more than 135 kilometres.
The project is divided into multiple districts, including the Wadi Hanifah, Arts, Urban Wadi, Entertainment, Athletics and Eco districts, as well as Sands Sports Park.
The large-scale development aims to transform central Riyadh – currently dominated by major highways – into a recreational corridor.
Sports Boulevard will include 4.4 million sq m of public realm and landmark buildings. Along with the Global Sports Tower, there will be a Centre for Cinematic Arts and a 2,000-seat amphitheatre.
It will also deliver more than 2.3 million sq m of mixed-use commercial, residential and retail space, alongside sports facilities, around the park, known as the Linear Park.
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Masdar to develop renewables projects in Montenegro23 April 2026
Abu Dhabi Future Energy Company (Masdar) and Elektroprivreda Crne Gore (EPCG) have agreed to establish a 50:50 joint venture to develop and operate renewable energy projects in Montenegro.
The planned projects include solar photovoltaic (PV), wind, hydropower, pumped-hydro storage and battery energy storage systems.
The joint venture will be headquartered in Niksic in western Montenegro and is intended to support Montenegro’s domestic energy needs while also enabling the export of renewable electricity to the Western Balkans and Southern Europe, Masdar said in a statement.
The companies plan to leverage an existing sub-sea interconnection with Italy. Montenegro is connected to Italy via a 600MW HVDC submarine cable, enabling electricity exports to the Italian market.
Masdar has an existing presence in Montenegro through its investment in the 72MW Krnovo wind farm.
The developer has recently accelerated foreign investment plans as part of its broader expansion. In April, it signed a binding agreement with France’s TotalEnergies to establish a $2.2bn joint venture to develop, build and operate renewable energy projects across Asia.
The combined business will have 3GW of operational capacity and 6GW of projects in advanced development, targeted for commissioning by 2030.
Masdar is targeting a global renewable energy portfolio of 100GW by 2030. It recently reached 65GW, two-thirds of the way to that target.
The company plans to deploy an additional $30bn-$35bn in equity and project finance by 2030, adding an average of 10GW of new capacity each year.
This expansion will be funded through a mix of equity, green bonds and long-term project financing.
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