Ten projects that will shape Dubai’s future
5 September 2023
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Dubai is back with major projects after several years of subdued activity following Expo 2020 and the Covid-19 pandemic.
Over the past year, plans have emerged for 10 projects across various sectors that will help shape the emirate’s development over the coming decade.
Many of these projects have been planned for years. After stalling during the low-oil-price era of 2015-20, positive economic tailwinds mean many of these schemes are now being revisited by their owners and relaunched.
1. Tower at Creek Harbour |
The most recent relaunch announcement came at the end of August, when Emaar Properties founder Mohammad Alabbar revealed plans to redesign and relaunch the Tower at Dubai Creek Harbour.
The design works are expected to be completed by the first quarter of 2024, and construction slated to begin in the second half of 2024.
Details of the redesigned tower have not been launched, but sources close to the project say it will be tall and feature high-end residential units. This reflects Dubai’s buoyant property market and will stand in sharp contrast to the original design that involved building a 1,000-metre-tall observation tower.
Construction on that project stalled in 2019 after work on the foundations was completed. Two bidders were competing for the estimated $5.5bn contract to build the tower. They were Beijing-based China State Construction Engineering Corporation and a joint venture of the local/Belgian Belhasa Six Construct and Tishman, which US-based Aecom owns.
Belhasa Six Construct completed the raft foundations for the tower in May 2018. France’s Soletanche Bachy finished the piling.
Spanish/Swiss architect and engineer Santiago Calatrava Valls was the main consultant on the project, with the local office of Aurecon, supported by the UK’s RMJM and Dubai-based DEC, acting as local engineer and architect of record. The project manager for the tower was US-based Parsons.
2. Dubai Metro Blue Line |
The Dubai Creek Harbour development in Ras al-Khor will connect to Dubai’s Metro network via the planned Blue Line, which will serve as an extension to the existing Red and Green lines.
Dubai’s Roads & Transport Authority (RTA) is preparing to issue tender documents for the Blue Line.
The Green Line extension will commence from its current terminus at Creek station in the Jadaf area. It will cross over to the Dubai Creek Harbour development and continue through Ras al-Khor, International City, Dubai Silicon Oasis and Academic City, before concluding near the Desert Rose project. The line will have 11 stations.
The Red Line extension will connect its existing terminus in Rashidiya to Mirdif City Centre and continue through Mirdif and Warqaa, before joining the Green Line extension in International City.
The project was put on hold during the Covid-19 pandemic and reactivated in early 2022, when UK-based Atkins and Grimshaw, US-based Parsons and France’s Egis restarted design work.
The last metro project to be completed in Dubai was Route 2020, which connected the Red Line to the Dubai Expo site. The AED10.6bn ($2.9bn) contract to design and build the line was awarded to a consortium of Alstom, Spain’s Acciona and Turkiye’s Gulermak.
3. Deep Tunnels Portfolio |
Another major infrastructure scheme is the Deep Tunnels Portfolio, which involves developing deep-gravity sewage tunnels and treatment plants across the emirate.
In August, Dubai Municipality began the process of appointing a project management consultant to oversee the scheme, which will be developed as a public-private partnership (PPP).
Two sets of deep tunnels will be constructed, terminating at two terminal pump stations at sewerage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta.
The scheme also includes recycled water distribution systems connected to the STPs.
Dubai’s Executive Council approved the project in June and said it would require an investment of about AED80bn ($22bn). It added that the project has been designed to serve the needs of the Dubai population for the next 100 years in alignment with the Dubai Economic Agenda D33 and Dubai Urban Plan 2040.
4. DWTC/Candy tower |
Dubai World Trade Centre (DWTC) and UK-based Candy Capital have formed a joint venture to develop three towers in Dubai’s One Central commercial district.
The mixed-use towers will have two branded residences, two hotels and office space. The construction work involves building three towers. The two taller towers will be connected by a sky bridge containing one of the hotels.
Dubai-based Killa Design has been appointed as the architect for the project.
Candy Capital is a privately held family office established by British entrepreneur and businessman Nick Candy. His best-known property development is One Hyde Park in London, which he developed with his brother Christian. It comprises 86 apartments and three retail units and is considered one of the wealthiest residences in the world.
5. Al-Maktoum International airport |
Dubai plans to restart the emirate’s largest construction project, the AED120bn ($33bn) expansion of Al-Maktoum International airport, also known as Dubai World Central (DWC).
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, aims to take the airport’s capacity to 130 million passengers a year.
Altogether, the development will cover an area of 56 square kilometres.
Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.
Firms were competing for the estimated $2.7bn substructure contract for Concourse 1 and the West Terminal building – the largest contract tendered for the project.
The contract covers the delivery of more than 1.7 million square metres of connected basement footprint, housing the people-mover tunnels, baggage handling systems, ground services road network and other back-of-house technical and support facilities.
6. Palm Jebel Ali |
Dubai released details of the new masterplan for Palm Jebel Ali, an artificial island located south of Jebel Ali Freezone, in June.
Double the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature over 80 hotels and resorts and a diverse range of entertainment and leisure facilities.
It includes seven connected islands, catering to approximately 35,000 families. The development also emphasises sustainability, with 30 per cent of public facilities powered by renewable energy.
MEED reported in January that local developer Nakheel had approached contractors to complete the reclamation works for Palm Jebel Ali.
As with Palm Jumeirah, it is estimated that it could take around 20 years for Palm Jebel Ali to reach its full development potential. Nakheel has previously secured AED17bn ($4.6bn) in funding to expedite the development of various projects, including the Dubai Islands and other waterfront schemes.
The upcoming dredging contract for Palm Jebel Ali is anticipated to involve 5-6 million cubic metres of material, contributing to the completion of the man-made offshore island.
While reclamation work for Palm Jebel Ali is mostly finished, the project was put on hold in 2009. Nakheel had made some progress with infrastructure development, including the construction of bridges on the island by Samsung C+T.
7. The Oasis by Emaar |
Another major masterplanned development was launched by Emaar Properties in June. The $20bn Oasis by Emaar covers a total land area of more than 9.4 million square metres, close to Dubai Investments Park. The project involves building over 7,000 residential units along with water canals, lakes and parks. It will also include the development of a 150,000 sq m retail area.
8. The Island |
Another project that has been restarted in recent years is The Island, which Wasl is developing.
Located off the coast of Umm Suqeim, near the Jumeirah public beach, it is expected to feature 1,400 hotel rooms and apartments, in addition to retail, food and beverage and entertainment options. The 10.5-hectare island will include properties featuring the MGM, Bellagio and Aria hotel brands.
The developer is close to appointing a contractor to build the development after bids were submitted earlier this year.
Tender documents for the contract were previously issued in 2020, when the project was being delivered with a consultancy team led by South Africa’s Mirage.
Germany’s Kling Consult is now the project manager.
9. Al-Habtoor Tower |
The $1bn Al-Habtoor Tower project is located at Al-Habtoor City, next to Dubai Water Canal, on a 7,500 sq m plot. The tower, which the developer describes as one of the largest buildings in the world, will have three basement levels, a seven-storey podium and 73 floors of residences. The built-up area will be 350,000 sq m.
Its construction is technically challenging because the tower will be built above an existing parking basement that serves the already completed buildings at Al-Habtoor City.
Al-Habtoor had the option of demolishing the basement. Instead, it decided to employ a top-down approach to the construction that involves piling down through the basement, while at the same time starting construction above ground.
The top-down approach is expected to reduce the construction time by about one year, meaning the tower will be completed in 1,000 days or roughly three years.
China Railway 18th Bureau Group was appointed as the main contractor in May.
10. Dubai Pearl |
After two aborted attempts, development is expected to start again at the Dubai Pearl site, located north of Dubai Media City close to the Palm Jumeirah.
The structures erected for the previous project have been demolished this year. Dubai Holding, which now owns the land, has held a design competition and is in the final stages of selecting the winning architect.
Local project management firm North 25 is overseeing the design competition.
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Abu Dhabi and US firms form $25bn power joint venture
20 March 2025
Abu Dhabi-based critical infrastructure-focused sovereign investor, ADQ and US-headquartered Energy Capital Partners (ECP) have agreed to establish a 50:50 partnership in new build power generation and energy infrastructure.
ECP is the largest private owner of power generation and renewable facilities in the US.
The firms plan to make total capital investments of more than $25bn across 25GW worth of projects, with the US as the primary focus.
The combined initial capital contribution from the partners is expected to amount to $5bn.
“The partnership will focus on serving the needs of data centers and industrial centers in the US and selected other international markets over the long-term,” ADQ said in a statement on 19 March, a day after UAE National Security Adviser and Abu Dhabi Deputy Ruler, Sheikh Tahnoon bin Zayed Al- Nahyan met with US President Donald Trump at the White House.
ADQ said the partnership aims to service the growing power needs of data centres, hyperscale cloud companies and other energy-intensive industries.
“As the continuity and quality of power supply is crucial for these high-growth industries, the need for captive power plants that are in proximity is often a pre-requisite,” ADQ said.
The partnership is focused on meeting these needs over the long term with its mandate including greenfield development, new build and expansion opportunity projects.
A portion of the capital may also be allocated towards opportunities in selected other international markets.
The statement cited a recent report by the International Energy Agency (IEA) stating the world’s electricity consumption is forecast to rise at its fastest pace in recent years.
The growing need of data centers and industrial electrification partly account for the surging consumption.
In the US, for instance, a substantial increase in electricity demand is expected to add the equivalent of California's current power consumption to the national total over the next three years.
Recent research also forecasts that global power demand from data centres will increase by 50% by 2027 and by as much as 165% by the end of the decade, driven by the expansion of AI and high-density data centres.
The US Department of Energy estimates that data centre load growth has tripled over the past decade and is projected to double or triple by 2028.
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QatarEnergy LNG receives bids for decarbonisation project
20 March 2025
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QatarEnergy LNG has received bids from contractors for a carbon dioxide (CO2) sequestration complex project covering its liquefied natural gas (LNG) production operations in Qatar’s Ras Laffan Industrial City (RLIC).
Once commissioned, the planned sequestration facility will be capable of capturing 4.3 million tonnes a year (t/y) of CO2 from QatarEnergy LNG’s production operations in RLIC.
Contractors submitted bids for the project, estimated to be valued at $2bn-$2.5bn, by the deadline of 13 March, sources told MEED.
The following contractors are among those that are understood to have submitted bids for engineering, procurement and construction (EPC) works on the QatarEnergy LNG CO2 sequestration project:
- Chiyoda (Japan) / Consolidated Contractors Company (Greece/Lebanon)
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The EPC scope of work on the project covers the following:
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- Installation of two new electric-driven compressors
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- New power substation for power import from Kahramaa 35MW
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QatarEnergy LNG awarded Australia-headquartered consultancy Worley a contract in September 2023 for the execution of the front-end engineering and design (feed) work on the project, as well as to prepare the EPC scope of work.
North Field LNG expansion
Meanwhile, QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, continues to press forward with its North Field LNG expansion programme.
The estimated $40bn North Field LNG expansion programme aims to raise Qatar’s total LNG production capacity from 77.5 million t/y to 142 million t/y in three phases.
QatarEnergy is understood to have spent almost $30bn on the two phases of the North Field LNG expansion programme, North Field East and North Field South, which will increase its LNG production capacity from 77.5 million t/y to 126 million t/y by 2028.
EPC works on the two projects are making progress.
QatarEnergy awarded the main EPC contracts in 2021 for the North Field East project, which is projected to increase LNG output to 110 million t/y by this year. The main $13bn EPC package, which covers the engineering, procurement, construction and installation of four LNG trains with capacities of 8 million t/y each, was awarded to a consortium of Japan’s Chiyoda Corporation and France’s Technip Energies in February 2021.
QatarEnergy awarded the main EPC contract for the North Field South LNG project, worth $10bn, in May 2023. The contract covers two large LNG processing trains, each with a capacity of 7.8 million t/y, and was awarded to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company.
When fully commissioned, the first two phases of the North Field LNG expansion programme will contribute a total supply capacity of 48 million t/y to the global LNG market.
In February 2024, QatarEnergy announced the third phase of its North Field LNG expansion programme. To be called North Field West, the project will further increase QatarEnergy’s LNG production capacity to 142 million t/y when it is commissioned by 2030.
The North Field West project will have an LNG production capacity of 16 million t/y, which is expected to be achieved through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The new project will draw feedstock for LNG production from the western zone of Qatar’s North Field offshore gas reserve.
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Teams form for Al-Sila wind IPP
20 March 2025
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Prequalified developers have started to form consortiums to bid for a contract to develop a wind farm in Abu Dhabi.
In February, Abu Dhabi state offtaker Emirates Water & Electricity Company (Ewec) invited prequalified developers to submit their proposals for the contract.
According to an industry source, Ewec expects to receive bids for the Al-SIla wind independent power project (IPP) by 31 July.
The 140MW Al-Sila wind IPP will have a generation capacity of up to 140MW. When fully operational, it will more than double the existing wind generation capacity in the UAE.
Ewec has prequalified 10 firms as managing partners, which "are free to bid either individually or as part of a consortium with other prequalified bidders". These are:
- Acciona (Spain)
- Alfanar (Saudi Arabia)
- AlJomaih Energy & Water (Saudi Arabia)
- EDF Renewables (France)
- Envision (China)
- International Power (Engie, France)
- Jera (Japan)
- Marubeni (Japan)
- SPIC Huanghe Hydropower Development Company (HHDC, China)
- Sumitomo (Japan)
Ewec prequalified six firms as consortium members, which can bid as part of a consortium with a managing partner listed above.
These are:
- Alghanim International (Kuwait)
- China Energy Overseas Investment Company (China)
- Etihad Water & Electricity (local)
- Ming Yang Smart Energy Group (China)
- Orascom Construction (Egypt)
- PowerChina International Group (China)
The Al-Sila wind project will involve the development, financing, construction, operation, maintenance and ownership of the wind farm and associated infrastructure.
The project will follow Abu Dhabi’s IPP model, where developers enter into a long-term power-purchase agreement with Ewec as the sole procurer of electricity.
Ewec expects the project to generate enough clean electricity to power 36,000 homes, displacing 190,000 tonnes of carbon dioxide annually.
It will also directly contribute to Abu Dhabi’s Clean Energy Strategic Target 2035, which calls for 60% of electricity production to be generated from renewable and clean sources.
Together with the existing UAE wind assets, the new project will increase the UAE’s wind generation capacity to approximately 240MW, laying the foundation for further wind energy expansion, according to Ewec’s latest Statement of Future Capacity Requirements report.
In October last year, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for several wind power plants in Abu Dhabi and the emirate of Fujairah, with a combined capacity of over 100MW.
Their locations and capacities are:
- Sir Baniyas Island (Abu Dhabi): 45MW
- Delma Island (Abu Dhabi): 27MW
- Al-Sila Abu Dhabi: 27MW
- Al-Halah (Fujairah): 4.5MW
Masdar developed the 103.5MW wind power projects, which use “the latest technology and innovation to capture low wind speeds at utility scale, adopting advances in material science and aerodynamics to make wind power possible in the country”.
The Al-Sila wind farm takes the total number of IPPs that are at various procurement stages in Abu Dhabi to seven. The other schemes are:
- Al-Nouf combined-cycle gas turbine (CCGT) plant: 3,300MW
- Taweelah C CCGT plant: 2,500MW
- Madinat Zayed open-cycle gas turbine plant: 1,500MW
- Al-Khazna solar IPP: 1,500MW
- Al-Zarraf solar IPP: 1,500MW
- Battery energy storage system 1: 400MW
These IPPs have a total combined capacity of over 10.7GW.
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Barakah 2 talks may start in two years
19 March 2025
Discussions for the next phase of the UAE's nuclear power plant in Barakah may be delayed by around two years, a source familiar with the plans tells MEED.
The 5.6GW Barakah nuclear power plant's four reactors entered full operations in September last year, which has intensified speculation about when the procurement process for the plant's next phase could start.
"I think they might be considering comparing the tariffs between the next nuclear power plant and the round-the-clock renewable energy project," the source said, referring to the 5.2GW solar photovoltaic plus 19 gigawatt-hour battery energy storage system project in Abu Dhabi, which Abu Dhabi Future Energy Company (Masdar) is developing.
The round-the-clock project is expected to deliver 1GW of 'baseload' renewable power.
In addition, the state utility, Emirates Water & Electricity Company (Ewec) does not foresee an additional 2.8GW of nuclear energy installed capacity until 2039, which implies that – given the average 10-year construction period for nuclear power plants – procurement talks "will only likely start sometime between 2027 and 2028".
Prior to the Barakah nuclear power plant's completion, Hamad Alkaabi, the UAE's permanent representative to the Austria-based International Atomic Energy Agency, was quoted as saying that the tendering process for the UAE's next nuclear power plant could start before the end of 2024.
The government has yet to budget for a second power plant or decide on the size or location of such a project, but Alkaabi said it is possible that a tender could be issued this year, the Reuters report, published in July 2024, said.
However, indications started to emerge in December that the planned second phase of the nuclear power plant could be delayed.
MEED has requested a comment from Emirates Nuclear Energy Company.
Expansion plans
The next phase of the Barakah power plant, comprising reactors five to eight, has been in the planning stage since 2019, according to regional projects tracker MEED Projects.
The UAE became the first Arab state to operate a nuclear power plant when the plant's first reactor became operational in 2021.
Each of the four reactors at the Barakah nuclear power plant can produce 1,400MW of electricity.
The entire plant reached full commercial operations approximately 16 years after Abu Dhabi first announced the project in 2008, and 12 years after construction works commenced on Unit 1.
READ THE MARCH MEED BUSINESS REVIEW – click here to view PDF
Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
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Chinese firm wins Damac Riverside villas construction
19 March 2025
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Dubai-based real estate developer Damac Properties has appointed Chinese contractor China Nuclear Industry No. 22 Construction Company (CNNCC) as the main contractor to build its Damac Riverside villas project.
The 594-unit residential project is located in the Dubai Investment Park area.
The project award follows Damac's appointment of CNNCC as the main contractor for its Damac Casa tower.
Damac Casa is a 43-storey residential building being built in the Al-Sufouh 2 area of Dubai.
Dubai’s heightened real estate activity is in line with GlobalData’s forecast that the construction industry will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects.
The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.
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