meed-logo

line1 line2 line3
SIGN IN / REGISTER

Dubai construction prepares for shift in 2024

10 November 2023

 

Register for MEED's guest programme 

Dubai’s construction market is preparing to make a pivotal shift next year as the emirate’s focus switches from real estate to public infrastructure projects such as Dubai Metro’s Blue Line, which is expected to be tendered and move into construction next year.

The Dubai government budget statement for 2024, released on 6 November, highlighted the anticipated shift.

In the statement, Abdulrahman Saleh al-Saleh, director general of the Department of Finance (DoF) for the Government of Dubai, said: “Despite the completion of many strategic projects, the activation of the public-private partnership law, and the development of project financing through long-term financing means the government has allocated 8 per cent of total expenditures to construction projects.

“This sends a strong signal to the private sector about Dubai’s determination to continue developing its infrastructure and delivering more strategic development projects.”

Overall spending for Dubai government entities in 2024 has been set at AED79.1bn ($21.6bn), which means AED6.328bn will be spent on construction. This is a 34 per cent increase on the spending planned for 2023, when 7 per cent of AED67.5bn was allocated to construction.

 

While there has been a significant increase in construction spending planned for 2024, the total still falls short of the budgeted spending set before the pandemic. In 2020, there was AED7.698bn of spending planned; in 2019, there was AED9.2bn.

Over the past two years, the Dubai government and its government-related entities (GREs), including property developers Emaar Properties and Nakheel, have focused on the real estate sector and, more specifically, residential projects funded by off-plan sales.

According to regional projects tracker MEED Projects, the Dubai government and its GREs have awarded $9.8bn of construction and transport contracts since the start of 2021, with $6.8bn or 69 per cent of those for the construction of buildings sold off-plan.

 

The resurgent property market with booming off-plan sales has enabled Dubai’s construction sector to have its best year in 2023 since 2017. It is on course to nearly double the total value of contract awards recorded in 2022.

The strength of the off-plan market was best demonstrated in late September, when hundreds of home buyers queued overnight to buy villas on Palm Jebel Ali, which had been on hold since 2009.

The strong market demand meant that by early November, there had been $17.8bn of construction and transport awards in the emirate. This put it on course to surpass the $18.1bn of awards in 2018, although still lower than 2017's $23.5bn of awards in the midst of an infrastructure spending spree ahead of Expo 2020.

Market correction

The prospect of more government infrastructure spending in 2024 comes as questions arise over whether Dubai’s real estate boom can be sustained.

While real estate prices keep going up, data has been released in the fourth quarter of this year that suggests growth may be slowing.

CBRE’s latest report says that in October 2023, the number of transactions in Dubai’s residential market totalled 6,407, a drop of 23.6 per cent compared to the previous year.

Most importantly for the construction sector, which relies on building new projects, the report also said that off-plan sales fell by 57.2 per cent over the same period. Secondary market transactions grew by 29.5 per cent.

Previous cycles have shown that a correction can either be fast or slow. In 2008, induced by the global financial crisis, there was a sudden price collapse. In 2016, following the late 2014 drop in oil prices, there was a steady decline in prices that lasted several years.

 

Although concerns may remain over the property market, residential real estate still accounts for over half of the construction and transport projects planned in Dubai.

According to regional projects tracker MEED Projects, there are $74bn of projects at the pre-execution phase, which includes study, design, main contract bid and main contract prequalification. Of that $74bn total, 57 per cent are residential projects, while another 24 per cent are mixed-use real estate projects, typically including a significant amount of residential real estate.

The mix is unlikely to change unless the project pipeline changes and other major infrastructure projects are launched.

Of the pre-execution construction and transport projects that are not residential or mixed-use, only Dubai Metro’s Blue Line project is valued at over $500m, with an estimated cost of $2.5bn.

MEED’s November 2023 special report on the UAE includes: 

> COMMENT: UAE eyes global leadership role
> POLITICS: Abu Dhabi networks on the global stage
> ECONOMY: UAE economy maintains robust growth
> BANKING: UAE banks enjoy the good times
> UPSTREAM: Hail and Ghasha galvanises UAE upstream market
> DOWNSTREAM: Adnoc spurs downstream gas expansions
> POWER: UAE closes ranks ahead of Cop28
> WATER: UAE ramps up decarbonisation of water sector
> PROJECTS: Top 10 UAE clean energy projects
> CONSTRUCTION: UAE construction sector returns to form
> TRANSPORT: UAE aviation returns to growth

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11289897/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai inflation slows to 5.3% in July

    24 August 2026

    Dubai’s annual inflation rate slowed to 5.3% in July, down from 5.7% in June, as a decline in transport costs eased pressure on consumer prices, according to Emirates NBD.

    The bank said the slowdown supported its view that price growth peaked at mid-year, and it expects inflation to continue easing through the rest of 2026. Monthly price growth slowed to 0.1% in July, from 0.4% in June, the weakest pace since February.

    Transport was the clearest sign of the moderation. Annual price growth in the category slowed to 11.9% in July, from 18.1% in June, as transport costs fell 3.7% over the month. Fuel and lubricant inflation eased to 24.1% year on year, from 48.3%, tracking a decline in local petrol prices.

    Petrol remains the main swing factor in the emirate’s inflation. Transport contributed 1.1 percentage points to headline inflation in July, down from 1.7 percentage points in June. Emirates NBD said the relief may prove temporary, with Super 98 petrol prices climbing 5.9% in August to leave them 33.8% higher than a year earlier. The bank expects headline inflation to edge higher in the August figures before easing again later in the year.

    The UAE deregulated petrol and diesel prices in 2015 and reviews them monthly against global prices, meaning changes in global fuel costs pass through to consumers quickly. Transport, which includes fuel, accounts for 9% of Dubai’s consumer price index basket.

    Housing remained the largest contributor to inflation even as its impulse faded. Housing and utilities, which account for about two-fifths of the basket, added 2.8 percentage points to headline inflation. Annual price growth in the category slowed to 7.0%, from 7.4% in January.

    Food inflation edged up to 7.8% year on year, from 7.6% in June, which the bank attributed to lingering supply-chain disruption from the regional conflict. Inflation in restaurants and hotels accelerated to 4.5% year on year, from 1.7% in June.

    Emirates NBD forecasts inflation of 2.9% by year-end but said risks to that projection were tilted to the upside, given lingering pressures in food and housing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18961735/main1839.jpg
    Colin Foreman
  • Libya oil project on track for 2027 completion

    24 August 2026

     

    The project to develop a workers’ camp at Libya’s Erawin oil field is on track for completion next year, according to industry sources.

    The project, estimated to be worth about $50m, is being executed by the Libyan oil services company Al-Saraya Al-Hamara, headquartered in the city of Sebha.

    The Libyan company was awarded the contract in February 2025.

    The scope of the project includes:

    • Construction of an accommodation camp
    • Construction of the camp maintenance warehouse
    • Construction of the camp office
    • Construction of a fire brigade shelter
    • Construction of a kitchen and mess hall
    • Construction of a mosque
    • Construction of a laundry room
    • Construction of a clinic
    • Construction of parking facilities
    • Installation of a fire and gas system
    • Installation of a power generator
    • Construction of associated facilities

    The client on the project is Zallaf Libya Oil & Gas Exploration & Production Company.

    Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation.

    The Erawin field development project is located about 800 kilometres south of Tripoli and 100km southwest of the El-Sharara field.

    Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

    The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

    Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the early production facility project in 2019.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18953632/main.jpg
    Wil Crisp
  • Tunisia extends bid deadline for gas pipeline project

    24 August 2026

    State-owned Tunisian Company of Electricity & Gas (Steg) has extended the bid deadline for a project to develop gas pipelines in the North African country.

    Earlier this year, the project was tendered with a bid deadline of 15 July. The new deadline is 30 September 2026.

    The scope of the project includes conducting studies, procuring equipment and materials, and performing construction work.

    Steg has received financing from the Islamic Development Bank to fund the project.

    The tender has been split into two packages.

    The first pipeline runs from the Tunisian town of Mourouj, in the suburbs of Tunis, to the town of Zriba.

    Along this route, the pipeline will be split into two sections.

    The first extends from Mourouj to the town of Fouchana, which lies to the south of the capital.

    Under existing plans, the pipeline will have a diameter of 20 inches and extend for 3.8 kilometres.

    The second section will extend for 43km to Zriba and have a diameter of 24 inches.

    The contract for package one has a 450-day completion period.

    The project’s second package focuses on a gas pipeline extending from Zriba to the town of M’saken.

    This pipeline will extend for 78km and have a diameter of 24 inches.

    The contract for this package also specifies a 450-day completion period.

    The procedure for the tender of both packages is an international call for tenders under the Islamic Development Bank guidelines for design, supply and installation.

    The Middle East and North Africa (Mena) region is currently seeing a surge in oil and gas pipeline projects as countries attempt to diversify routes through which hydrocarbons can be transported.

    The increased concerns about overreliance on a small number of transportation routes are a result of the regional conflict that started when the US and Israel attacked Iran on 28 February.

    The conflict severely disrupted oil and gas flows through the Strait of Hormuz, highlighting the importance of having a diverse range of import and export routes.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18953537/main.jpg
    Wil Crisp
  • Contractors confirm $683m Oman power plant contract

    21 August 2026

    Register for MEED’s 14-day trial access 

    China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility have confirmed their involvement as contractors on the 1,700MW Misfah combined-cycle gas turbine (CCGT) project in Oman.

    In a statement, Sepco 3 said it signed the contract on 20 August. On 21 August, Doosan disclosed a KRW930bn ($683m) contract with Jabel Power, the project company for the Misfah plant. The contract runs from 20 August 2026 to 1 April 2029.

    The same consortium signed the engineering, procurement and construction (EPC) contract for the 890MW Duqm CCGT power plant in June. At the time, Doosan disclosed a contract worth about $350m.

    In May, MEED exclusively reported that the group had been appointed as the main contractor for the two power plants, subject to the official signing.

    State offtaker Nama Power & Water Procurement (Nama PWP) had previously signed power-purchase agreements (PPAs) for the development and operation of the plants.

    The developer’s contract was awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.

    As MEED understands, construction works have already commenced on the power plant projects. A China-based procurement listing in June shows that civil works procurement was under way for the Misfah independent power producer (IPP).

    The civil package F tender covered piling, reinforcement cages, concrete works and pile testing, with work scheduled to start in July and finish by November

    As reported in July, Germany’s Siemens Energy will supply power generation technology and long-term service agreements for the Misfah and Duqm IPP projects.

    This includes the supply of six F-class gas turbines, six generators and 20-year long-term service agreements for the equipment.

    The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate. The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate.

    According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn).

    Synergy Consulting is the financial adviser and lead adviser to Nama PWP for these projects.

    In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.

    The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.

    In March 2025, the same Sepco 3 and Doosan Enerbility consortium signed an EPC contract with Saudi Electricity Company to expand Riyadh Power Plant 12 (PP12). Located about 150 kilometres northwest of Riyadh, the 1,863MW power plant is expected to be completed in 2028.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18911106/main.jpg
    Mark Dowdall
  • Adnoc plans new offshore-to-onshore oil transport pipeline

    20 August 2026

     

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company is moving ahead with an ambitious plan to build an oil pipeline network that will transport oil from its main offshore oil processing islands in the Gulf to its onshore crude export terminal in Jebel Dhanna, Abu Dhabi.

    The planned pipeline network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport those volumes across 300 kilometres inland to the Jebel Dhanna terminal.

    According to sources, the proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Abu Dhabi’s Jebel Dhanna to the emirate of Fujairah, and is expected to be commissioned in 2027.

    The Abu Dhabi energy giant has awarded a contract for concept studies and front-end engineering and design (feed) to Abu Dhabi-based NT Energies, a joint venture of Abu Dhabi-based contractor NMDC Energy and France’s Technip Energies, sources told MEED.

    NT Energies is expected to carry out the concept studies and feed on a “fast-track basis”, with the work anticipated to take seven months, sources said.

    A kick-off meeting between the client and the appointed consultant took place on 6 July, sources added.

    Additionally, Adnoc has appointed Australia-headquartered Worley to provide project management consultancy (PMC) services, sources further said.

    West-East oil pipeline

    In May, Adnoc said it was accelerating work on the West-East crude transport pipeline project from Jebel Dhanna to Fujairah, upon directions from its board.

    The West-East pipeline project involves constructing a cross-country pipeline to transport crude from Adnoc’s export terminal at Jebel Dhanna to the Fujairah terminal, covering a distance of about 520km.

    The pipeline will double Adnoc’s crude export capacity through Fujairah on the Indian Ocean coast and enable shipments to bypass the geopolitically volatile Strait of Hormuz.

    Crude will be sourced from Adnoc’s offshore processing centres at Das, Zakum and Umm Lulu islands before being stored at new storage facilities to be built at the Jebel Dhanna terminal.

    The pipeline will be segmented into three sections:

    • Jebel Dhanna to Habshan main pumping station (MPS) – 115km
    • Habshan MPS to Sweihan depot – 254km
    • Sweihan depot to Fujairah terminal – 153km

    Adnoc awarded Egyptian contractor Engineering for Petroleum & Process Industries (Enppi) an engineering, procurement and construction management (EPCm) contract for the project in February 2024.

    Adnoc’s total spend on EPCm works could be as high as $3bn, MEED previously reported.

    Sources have told MEED that Adnoc has, in turn, appointed state-owned China Petroleum Pipeline (CPP) and locally based Bin Asheer to carry out construction works on the three segments of the West-East pipeline network.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18887774/main0639.jpg
    Indrajit Sen