Meed | Dubai construction needs major project launches

Dubai construction needs major project launches

25 April 2023

Related reads on the UAE's construction and transport sectors:

> 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

https://image.digitalinsightresearch.in/uploads/NewsArticle/10784019/main.gif

Eva Levesque

Exclusive from Meed

Jedco maps next phase of Jeddah airport expansion
22 September 2026
Contractor wins $105m Medina university hospital deal
22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
Kuwait halves drilling contractor pool
22 September 2026
Abu Dhabi expects 45% emissions cut as electricity demand rises
21 September 2026

Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19877992/main.jpg

Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

https://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg

Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19866218/main.jpg

Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg

Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

Register for MEED’s 14-day trial access

Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.