Meed | UAE construction sector returns to form

UAE construction sector returns to form

12 October 2023

This package on the UAE’s construction sector also includes:

> Dubai starts construction of Expo Valley
> Emaar appoints contractor for Creek Harbour project
> Arada awards Jouri Hills Dubai construction contract
> Contractor appointed for Damac Hills developments
> Consultant appointed for $8.17bn Azizi Venice project
> Abu Dhabi tenders Mid Island Parkway packages

On 20 September, hundreds of people queued to buy property on Dubai’s Palm Jebel Ali. The rush to purchase units on the project, which stalled in 2008, is the latest sign of a return to form for the UAE’s construction sector.

The buoyant market conditions have prompted major UAE real estate developers to restart halted long-term projects.

In the past year, government-controlled developer Nakheel has released details of new masterplans for Palm Jebel Ali and the offshore islands it has reclaimed off the Deira Corniche, known as Dubai Islands.

Both developments are more high-end, low-rise developments that better reflect the dynamics of the post-pandemic market.

Nakheel also restarted the construction works on its Palm Beach towers project in Palm Jumeirah. Previously known as Palm Gateway, the project was rebranded and relaunched in October 2022.

Construction stopped in 2019 after structural concrete work had been completed for about 10 levels of the towers.

Indian contractor Shapoorji Pallonji will deliver the project.

Emaar Properties also announced the comeback of Dubai Creek Tower. The scheme made no significant progress after concrete pile cap works were completed in 2018.

First launched in 2015, the project was billed as the world’s tallest man-made structure, surpassing the height of Dubai’s Burj Khalifa. The project is being redesigned, which is expected to be completed by the first quarter of 2024. Construction is slated to begin in the second half of 2024.

Towering ambitions

The favourable market conditions have led another Dubai-based private developer, Azizi Developments, to restart plans to construct what it said would be the world’s second-tallest tower.

The plan to restart work on the rebranded AED3bn ($817m) 122-storey Entisar Tower project received a boost when Azizi purchased a plot of land on Sheikh Zayed Road next to World Trade Centre Metro Station 2 from Meydan.

UK-based Atkins worked on the tower's design for Azizi Developments after an original design was prepared for Meydan by Dubai-based AE7.

Demolition at the Dubai Pearl site in 2023, viewed from the MEED office in Dubai Media City

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 construction work on the project stalled after the global financial crisis of 2008-09. 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.

Market overview

With more than $356bn-worth of private real estate developments and public building and housing programmes planned or under way, the UAE is the region’s second-biggest construction projects market, after Saudi Arabia.

After a dismal performance in 2020 due to the Covid-19 pandemic and economic downturn, the construction sector is on course for a strong comeback.

In 2021, contract awards worth about $10bn were recorded, an increase of 13.5 per cent over the previous year.

Continuing the same momentum, 2022 also grew by about 50 per cent to reach the $15bn mark, further increasing investor confidence.

According to data from regional projects tracker MEED Projects, the $17bn-worth of contract awards in 2023 has already surpassed the full-year total achieved in 2022.

The prospects for the rest of this year are promising. Nearly $8bn of contracts are already at the bid evaluation stage, and another $2bn are at the main contract bid and prequalification stages.

Projects pipeline

Renewed work opportunities for construction companies are presented by the restart of projects and new announcements in the UAE.

Real estate schemes dominate the country’s list of future projects.

In July, Emaar announced The Oasis project, which covers a total land area of more than 9.4 million square metres close to Dubai Investments Park. The $20bn 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.

In October, Azizi Developments unveiled the Azizi Venice project in Dubai South. The AED30bn ($8.17bn) mixed-use development will offer over 30,000 residential units, including 100 mid-rise apartment complexes, 400 villas, two five-star hotels and an opera house.

Early this year, Mohamed Alabbar launched the $3.5bn Ramhan Island project off the coast of Abu Dhabi. The development will consist of 1,800 villas, 1,000 residences, a hotel and a marina. The project is being developed through Eagle Hills Development Company.

In July, Aldar Properties and the Abu Dhabi Housing Authority announced the AED8bn ($2.2bn) Balghaiylam Abu Dhabi residential project.

The project is scheduled to be completed by 2026 and will include 1,743 housing units. It is part of the Abu Dhabi government’s plan to employ public-private partnerships (PPPs) to provide affordable housing for its citizens through real estate schemes developed by approved developers.

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Yasir Iqbal

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.

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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

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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.

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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.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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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.