meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Nakheel awards Dubai Islands marine works contract

    9 October 2026

    Dubai-based developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Mar Marine & Building Contracting a contract for marine and beach works on Island B at Dubai Islands.

    The scope includes constructing breakwaters, removing existing rock revetments and forming a new 320-metre beach near the Bay Villas development.

    The contractor will also refurbish existing beach areas and undertake remedial works along approximately 3 kilometres of the island’s western shoreline.

    The works are scheduled for completion in the fourth quarter of 2027.

    The package supports the Bay Villas project, which comprises 636 villas and townhouses on Island B. Nakheel awarded Fibrex Contracting an AED2.6bn ($708m) construction contract for the residential development in August 2025.

    The marine works award follows Nakheel’s AED527m primary infrastructure and utilities contract for Island B, which was awarded to Al-Nasr Contracting Company in April 2026.

    In September, Nakheel awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands. The contract was awarded to local firm Metac General Contracting Company.

    The contract covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings. Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20418469/main.jpg
    Yasir Iqbal
  • Iraq refinery project given regional approval

    9 October 2026

    Plans to establish a 70,000-barrel-a-day (b/d) refinery in the Iraqi town of Qayyarah have been approved by the Nineveh Provincial Council, which has called for the project to be referred to Iraq’s Council of Ministers. The council also recommended that Duhok-based Karband Company, an industrial manufacturer of asphalt products and lubricating oils, be involved in the project.

    The council’s vote follows a meeting held in September between Iraq’s Oil Ministry and Angola’s Sonangol on potentially jointly developing the Qayyarah refinery.

    The planned refinery would allow more of the crude produced in Qayyarah to be processed locally, increasing supplies of petroleum products and reducing the need to transport locally produced crude south for export via the Strait of Hormuz.

    Iraq awarded the Qayyarah oil field to Sonangol in its second licensing round in 2009, with an initial target of around 120,000 b/d.

    A new upstream expansion phase began in January 2025, when Sonangol contracted the Iraqi Drilling Company to drill 10 wells, with an option for three additional appraisal wells.

    An existing refinery in Qayyarah, built in 1955, has a capacity of 20,000 b/d.

    Progress on the new facility has stalled in recent years, with little movement since 2021, when Iraq signed a memorandum of understanding with Sweden’s SEAB and Turkiye’s Limak on developing the refinery.

    Previously, Iraq’s Oil Ministry said the project would include modern units and complex refining technology to produce products meeting Euro 5 standards

    The scope of the project is expected to include:

    • Processing units
    • Storage tanks
    • Distillation units
    • Associated facilities

    The project was first announced in 2018 and has encountered several delays due to funding problems.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20413126/main.png
    Wil Crisp
  • Contractors prepare bids for more Qiddiya infrastructure

    8 October 2026

     

    Saudi gigaproject developer Qiddiya Investment Company (QIC) has tendered a design-and-build contract covering infrastructure works at District 0 in Qiddiya City.

    The scope includes the design, supply, construction, testing, commissioning and defects liability period for Road I in District 17, Road Q in District 19 and the District 18 Ring Road.

    In total, the package covers approximately 17.4 kilometres of roads, including 1.4km of bridge structures.

    Contractors have until 14 October to submit proposals.

    Beirut-headquartered Dar Al-Handasah is the lead design consultant for districts 17 and 19, with a remit that also includes potable water and recycled water storage tanks and pumping stations.

    US-based Jacobs is the lead design consultant for the District 18 Ring Road.

    The tender is the third infrastructure package for Qiddiya’s District 0. The first two packages, tendered in March, remain under procurement, as MEED exclusively reported.

    MEED understands that bid evaluation for these packages is in its final stages and that awards are expected shortly.

    QIC is also advancing plans to develop additional assets at Qiddiya City.

    Last month, MEED exclusively reported that QIC had awarded an estimated $500m-$600m contract to build an e-games arena, known as the Fortress Arena.

    The scope of work includes the construction of an auditorium with a capacity of about 5,100 seats, as well as commercial areas, hospitality facilities and other associated infrastructure.

    The Fortress Arena is one of several major projects within the wider Qiddiya development.

    Other projects include the Dragon Ball theme park, Prince Mohammed Bin Salman Stadium, a horse-racing venue, a performing arts centre, the Speed Park, the National Tennis Centre, Six Flags Qiddiya City and Aquarabia water park.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has grown significantly in recent years.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20384978/main.jpg
    Yasir Iqbal
  • Chinese contractors begin Jordan rail construction

    8 October 2026

     

    Register for MEED’s 14-day trial access 

    Beijing-headquartered firms China Civil Engineering Construction Corporation (CCECC) and China First Highway Engineering Company (CFHEC) have started construction work on the Aqaba-Al-Shidiyeh-Maan Railway project in Jordan.

    The 403-kilometre rail network is divided into six packages. CCECC is executing packages one to four, while CFHEC is undertaking packages five and six.

    The scope of work covers constructing railway tracks, about 55 bridges, six tunnels and related structures.

    The project aims to link Aqaba with key mining and production sites and the Maan logistics zone, establishing an integrated system for transporting bulk cargo and containers between ports, production centres and inland logistics facilities.

    The network is expected to carry around 16 million tonnes of phosphate and potash each year from production sites to Aqaba’s ports.

    In April 2025, a French-Swiss joint venture of Egis and Arx was awarded the project’s design consultancy contract.

    The estimated $2.5bn project is being developed by the Jordan-UAE Railway Company, which is jointly owned by Abu Dhabi’s L’imad Holding and Jordanian entities including the Jordan Phosphate Mines Company, the Government Investments Management Company, the Social Security Investment Fund and the Arab Potash Company.

    Jordanian and UAE officials attended a groundbreaking ceremony held earlier this week to mark the formal start of construction work.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20371915/main.jpg
    Yasir Iqbal
  • Iraq discusses starting operations at $3.78bn refinery project

    8 October 2026

    Iraq’s Minister of Oil, Basem Muhammad Khudair Al-Abadi, has met with Japanese officials to discuss plans to commission the fluid catalytic cracking (FCC) unit at the Basra refinery upgrade project, according to a ministry statement.

    The meeting was attended by the Japanese Embassy’s executive officer as well as representatives from the Japan International Cooperation Agency (Jica) and Japan-based JGC, which is the main contractor on the project.

    According to the ministry, discussions focused on direct implementation steps and coordination between Iraqi authorities and the Japanese partners to bring the unit online using Japanese refining technologies.

    Iraq’s South Refineries Company (SRC) sent JGC notice of the main contract award for the Basra refinery upgrade project’s FCC package in August 2020.

    JGC was awarded the contract in consortium with South Korea’s Hyundai E&C.

    The official contract signing ceremony was held in Baghdad on 1 October 2020.

    The contract awarded to JGC, which uses the engineering, procurement, construction and commissioning model, was worth $3.78bn.

    Project delays

    The project has faced issues related to the ongoing regional conflict, which started when the US and Israel attacked Iran on 28 February.

    JGC evacuated its personnel from the site in the southern oil hub of Basra following the start of the regional war, stopping work on the project, which was in its final stages of construction.

    In August, JGC signed an agreement to restart work.

    The project will produce around 5 million litres a day of gasoline and 7 million litres a day of diesel.

    The FCC package is part of a broader project to upgrade the Basra refinery.

    Oil Ministry officials said in late 2025 that the Basra refinery upgrade project aims to slash Iraq’s fuel import bill and convert heavy refining residues into high-value petroleum products.

    The project site is located about 12 kilometres east of Iraq’s southern city of Basra.

    The wider upgrade project is installing new facilities on land adjacent to the existing Basra refinery, including a vacuum distillation unit and a diesel desulphurisation unit.

    In April 2021, France’s Axens won a contract to provide four process technologies to SRC for the Basra refinery upgrade project.

    The technologies that SRC selected are:

    • Diesel hydrotreatment unit (Prime-D)
    • Vacuum gasoil (VGO) hydrotreating unit
    • VGO fluid catalytic cracker unit
    • Oligomerisation unit (polynaphtha)

    In addition, Axens is providing catalysts and adsorbents and proprietary equipment, training and technical services.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20366574/main.png
    Wil Crisp