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.
Exclusive from Meed
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Kuwait awards $381m oil project23 September 2026
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Kuwait refinery project on track for year-end completion23 September 2026
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Contractor wins $208m Almoosa hospital MEP contract23 September 2026
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UAE to develop integrated waste-to-resource pilot23 September 2026
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Contractors prepare Oxagon Highway 55 bids23 September 2026
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Related Articles
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Kuwait awards $381m oil project23 September 2026
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State-owned upstream operator Kuwait Oil Company (KOC) has awarded an oil project contract worth KD117m ($381m) to India’s Megha Engineering & Infrastructure (Meil).
The Supreme Purchasing Committee for Kuwait Petroleum Corporation (KPC) approved the contract last month, paving the way for the official award.
The project focuses on a water separation unit at the Al-Rawdatain facility in Kuwait.
The water separation facility will be developed at Gathering Centre 25 (GC-25), along with a pumping facility at GC-30.
The project will deliver a wide-ranging upgrade of processing and utility infrastructure, including new low-pressure separation and gas-handling equipment such as a three-phase wet separator package, a gas knock-out drum and associated low-pressure gas pipelines, as well as a high-integrity pressure protection system and a high-pressure flare.
Meil will develop the new three-phase low-pressure wet separation facility at GC-25.
The main process equipment will include two wet separator packages, each with a capacity of 150,000 barrels of liquid a day, and a low-pressure gas knock-out drum with a capacity of 53 million standard cubic feet a day, together with associated gas-handling facilities.
The facility will also incorporate an effluent water treatment and transfer system, including an effluent water balance tank equipped with microbubble flotation and induced gas flotation systems, as well as transfer pumps.
Additional GC-25 facilities will include fuel gas treatment, chemical injection, oil recovery and flare connections, along with firewater and deluge systems.
The scope also covers control and safety systems, substations, and associated civil, structural, mechanical, electrical and instrumentation works.
At GC-30, the project will focus on treated-water filtration and high-pressure injection infrastructure.
The scope includes nutshell filters and associated feed pumps with a combined capacity of approximately 500,000 barrels of water a day.
Booster and injection pumps will transfer treated effluent water to designated injection wells.
Additional facilities at GC-30 will include fuel gas treatment, sludge collection and disposal systems, oil recovery systems, control and safety systems, substations, laboratory and workshop facilities, and associated civil, structural, piping, mechanical, electrical and instrumentation works.
The project also includes transfer pipelines connecting GC-25, GC-15 and GC-30.
Meil will carry out modifications to existing tanks at GC-30, as well as process and utility tie-ins, electrical and instrumentation modifications and other infrastructure required to integrate the new facilities with KOC’s existing assets.
Meil’s responsibilities cover the project lifecycle from design and engineering through procurement, construction, testing, pre-commissioning, commissioning, start-up and performance testing.
The contract also includes operation, maintenance, repair and insurance responsibilities for the designated facilities during the applicable operations and maintenance period.
Seven companies submitted bids for the project last November.
The full list of bids was:
- Meil (India) – KD117m ($381m)
- Mechanical Engineering & Contracting Company (Kuwait) – KD130m
- Spetco (Kuwait) – KD158m
- Al-Kharafi (Kuwait) – KD164m
- China Oil HBP Science & Technology (China) – KD169m
- Alghanim International (Kuwait) – KD169m
- Jereh Oil & Gas Engineering (China) – KD191m
In October last year, KOC awarded Meil a separate contract for a project to develop a gas sweetening and recovery facility in west Kuwait.
Meil submitted the lowest bid for that tender, at KD69.2m ($225.5m), in February 2025.
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Kuwait refinery project on track for year-end completion23 September 2026

A $65m project to replace a substation at the Mina Al-Ahmadi (MAA) refinery is on schedule to be mechanically complete before the end of the year, according to industry sources.
The project is being executed by India’s Larsen & Toubro (L&T), which was awarded the contract in October 2024.
One source said: “This project is approaching completion and is currently on schedule to be completed before the end of the year, although it could still see delays related to the ongoing regional conflict.”
The client is state-owned downstream operator Kuwait National Petroleum Company (KNPC).
Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEW) is also involved in the project and will provide final approvals and sign-off.
The scope of the project includes:
- Construction of a substation
- Installation of transformers
- Installation of medium-voltage switchgear
- Installation of low-voltage auxiliary systems
- Installation of network protection systems
- Installation of disconnecting switches
- Installation of surge arrestors
- Installation of feeder breakers and cubicles
- Installation of low-voltage A/C and D/C equipment
- Installation of battery banks and battery chargers
- Installation of related relay and control panel boards
- Installation of fire alarm and fire protection equipment
- Installation of a SCADA system
- Installation of cables
- Civil works
- Associated facilities
The current project to replace a substation at the MAA refinery closely resembles another project tendered by KNPC more than a decade ago, which L&T also won.
On 18 May 2015, KNPC signed a contract with L&T to build a new 240MW substation at the MAA refinery, valued at KD21.866m.
The new substation, known as M20, was designed to replace an existing substation that was considered old and obsolete.
Mohammed Al-Mutairi, who was KNPC’s chief executive at the time, said the substation building would be explosion-proof and use state-of-the-art control systems.
He said the station’s capacity would increase from 180MW to 240MW, supplying most of the refinery’s electricity needs.
Given the similarities between the two projects, L&T has been able to reuse some designs, creating efficiencies, according to industry sources.
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Contractor wins $208m Almoosa hospital MEP contract23 September 2026
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Riyadh-based construction firm BEC Arabia has won a SR781m ($208m) contract for the mechanical, electrical and plumbing (MEP) works at Almoosa Hospital in Al-Khobar.
Saudi Arabia’s Almoosa Health Company awarded the contract.
The hospital complex consists of two towers: a 24-storey in-patient tower with 380 beds, and an 11-storey tower with 224 clinics and 113 additional treatment spaces.
It will be built on a 45,000-square-metre site.
A podium spanning the ninth and 10th floors will connect the two towers.
The hospital will also include parking for 1,700 cars.
BEC Arabia won the SR656m ($175m) main construction contract for the hospital in November last year.
In August 2025, MEED reported that Almoosa Health Company had announced it had secured a sharia-compliant credit facility worth SR650m ($173m) from Banque Saudi Fransi.
In a statement published on the Saudi stock exchange (Tadawul), the company said the seven-year facility would be used to support its expansion and growth strategy.
Lebanon’s Dar, US-based Perkins&Will and French design firm Pierre-Yves Rochon designed the project.
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UAE to develop integrated waste-to-resource pilot23 September 2026
Emirates Biotech and United Arab Emirates University (UAEU) have launched a pilot project in Al-Ain that could provide a model for larger waste-to-resource facilities.
The project involves developing the UAE’s first integrated organic-waste valorisation pilot plant, which will test whether food waste and compostable packaging can be processed together to recover resources and reduce waste sent to landfill.
Located near the UAEU campus, the 40kg-a-day facility will process organic waste to produce renewable biogas and nutrient-rich compost. The project is intended to generate technical and operating data that could support the development of larger-scale facilities.
Emirates Biotech and UAEU will design, build and operate the pilot plant as part of a two-year research project running from August 2026 to August 2028. Installation and commissioning are expected to be completed by August 2027.
The plant will combine anaerobic digestion and composting. Anaerobic digestion will convert the organic waste into renewable biogas, while the resulting digestate will be composted to produce nutrient-rich compost.
A laboratory-scale assessment will also examine the potential to convert the biogas into renewable hydrogen.
Food waste accounts for nearly 40% of daily municipal solid waste in the UAE, according to Emirates Biotech, and much of it is currently disposed of in landfills.
The pilot will therefore assess the technical and operational feasibility of recovering value from two waste streams through a single integrated process.
If successfully scaled, Emirates Biotech says an integrated organic-waste valorisation plant could reduce CO₂ emissions by 89% compared with landfilling.
The project is expected to provide a scalable and modular model for converting food waste and compostable packaging into renewable biogas and compost, with the findings intended to inform the development of larger waste-to-resource facilities.
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Contractors prepare Oxagon Highway 55 bids23 September 2026

Contractors are preparing to submit bids on 28 September for a design-and-build contract for permanent upgrade works on Highway 55 in the kingdom’s Oxagon region.
The first phase of the project includes constructing 14 kilometres of road, with two lanes in each direction. It also includes one bridge and three interchanges.
The project duration is 22 months.
Highway 55 connects the Red Sea coast with the mainland in northwestern Saudi Arabia. It is currently the only road providing north-south connectivity between Duba and the Neom region.
MEED reported exclusively in August 2025 that contractors had submitted responses to an expression of interest notice that Neom had issued earlier that month.
The project is expected to support cargo movement from Duba Port to other parts of the kingdom and the wider region.
Last year, Neom tested a pilot initiative by handling a shipment that travelled from Cairo via the Port of Safaga, across the Red Sea to the Port of Neom, and then inland to Erbil, Iraq.
In a statement, Neom said: “The shipment travelled through an intermodal corridor spanning over 900 kilometres, marking a significant milestone in the kingdom’s transformation into a regional and global logistics hub.”
The Port of Neom is located on the Red Sea near the Arar border, a key entry point into Iraq.
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