meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11213744/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Read the March 2026 MEED Business Review

    3 March 2026

    Download / Subscribe / 14-day trial access

    Saudi Arabia’s priorities have shifted over the past decade, with officials at February’s Private Sector Forum confirming a reprioritisation since 2016 that includes postponing the 2029 Asian Winter Games in Trojena and scaling back projects such as The Line in response to global economic uncertainty.

    In 2026, the Public Investment Fund’s role as the main driver of development is shifting towards greater private sector involvement, a transition examined by MEED editor Colin Foreman in the latest issue of MEED Business Review.

    March’s market focus is on Egypt, where the country’s crisis mode is giving way to a cautious revival. 

    This edition also reports that the region’s downstream sector may face subdued project spending in 2026 due to flattening demand and weak margins.

    In the latest issue, we disprove the Ramadan slowdown story, present exclusive leadership insight from Jacobs on delivering Saudi Arabia’s next phase of rail growth and outline some important lessons learnt from a power plant decommissioning. We also talk to senior executives at Enersol, Lamar Holding and Metito. 

    We hope our valued subscribers enjoy the March 2026 issue of MEED Business Review. 

     

    Must-read sections in the March 2026 issue of MEED Business Review include:

    > AGENDA: Saudi Arabia’s private sector picks up the baton

    > RAMADAN: Data disproves the Ramadan slowdown story

    INDUSTRY REPORT:
    Downstream
    > Chemicals producers look to cut spending
    > Global petrochemical project capex set to rise until 2030

    > LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth

    > POWER: Lessons learnt from a power plant decommissioning

    > INTERVIEW: Abu Dhabi’s Enersol charts acquisitions path

    > INTERVIEW: Lina Noureddin, CEO of Lamar Holding, on the evolving PPP landscape

    > INTERVIEW: Contract award marks Metito’s return to municipal projects

    > MARKET FOCUS EGYPT: 
    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    > MEED COMMENTS: 
    >     Winter Games delay raises uncertainty for Saudi construction
    > Duqm petrochemicals revival provides fillip to Gulf projects market
    > Solar deals signal Saudi Arabia’s energy ambitions
    > Hydrogen bridge awaits bankable contracts

    > GULF PROJECTS INDEX: Gulf index leaps upward in 2026

    > JANUARY 2025 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The war that (almost) no one wants

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839736/main.gif
    MEED Editorial
  • Firms prepare Port of Duqm consultancy bids

    3 March 2026

    Oman’s Port of Duqm has issued tender notices inviting consultants to bid for two packages by mid-March.

    The scope of the first tender covers the consultancy services for inspection, scope preparation and supervision of the sewage treatment plant.

    The bid submission deadline is 18 March.

    The scope of the other tender includes the consultancy services for port marine traffic assessment/simulation and impact study.

    The bid submission deadline for this package is on 17 March.

    Both tenders were floated late last month.

    The Port of Duqm is a deepwater, multipurpose port on Oman’s Arabian Sea coast, developed within the Special Economic Zone at Duqm (Sezad).

    Its location outside the Strait of Hormuz is a key advantage, positioning Duqm as a strategic alternative gateway for cargo moving between the Gulf, the Indian subcontinent and East Africa, and supporting Oman’s push to grow non-oil trade and port-led industry.

    Designed to handle a mix of cargoes, including containers, dry bulk, breakbulk and liquid bulk, the port forms part of a wider Duqm complex that also includes a major dry dock and large industrial land allocations for energy, manufacturing and logistics projects.

    As the port and SEZ expand in phases, consultancy tenders typically reflect the next steps in delivery and operations, covering engineering and technical studies, commercial assessments, and readiness planning tied to new terminals and industrial tie-ins.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15840397/main.jpg
    Yasir Iqbal
  • Diriyah awards Pendry superblock package

    3 March 2026

     

    Saudi Arabian gigaproject developer Diriyah Company has awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the second phase of the Diriyah Gate development (DG2).

    The contract was awarded to the local firm Saudi Constructioneers.

    The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.

    The project will cover an area of 75,365 square metres (sq m) and is located in the northwestern district of the DG2 area.

    Contractors had submitted final proposals for a contract in September last year, as MEED reported.

    The tender was issued in June last year.

    The latest contract follows the Diriyah Company’s award of a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan.

    The contract was awarded to the joint venture of local firm BEC Arabia and Indian contractor Ashoka Buildcon.

    The project has a gross floor area of over 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15778187/main.jpg
    Yasir Iqbal
  • Local firm to develop $598m Muscat tourism project

    3 March 2026

    Oman’s Ministry of Heritage & Tourism has signed an agreement with local firm Sorouh Al-Qurm Real Estate Company to build an integrated tourism complex in the Al-Qurm area of Muscat.

    The project will be developed with a total investment estimated at RO230m ($598m).

    Planned across more than 165,000 square metres (sq m), the development will include two four-star hotels offering over 400 rooms, alongside leisure components such as an indoor games hall and trampoline attractions.

    The site will also incorporate commercial spaces and freehold residential units, among other amenities.

    The agreement was signed by Sayyid Ibrahim Bin Said Al-Busaidi, minister of heritage and tourism, and Khaled Khudair Mashaan, chairman of Al-Argan International Real Estate Company, who signed as the authorised representative for Sorouh Al-Qurm Real Estate Company.

    GlobalData forecasts that the Omani construction industry will expand at an average annual growth rate of 4.2% from 2025 to 2028.

    Growth in the country will be supported by rising government investments in renewable energy and transport infrastructure, as well as in the housing sector, as part of the Oman Vision 2040 plan.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839476/main.jpg
    Yasir Iqbal
  • Firms to build Jeddah Islamic port logistics zone

    3 March 2026

    The Saudi Ports Authority (Mawani) has signed an agreement with Dammam-headquartered Sultan Logistics to develop a new logistics zone at Jeddah Islamic Port’s Al-Khumra site.

    According to a statement posted by Mawani on X, the project will cover about 200,000 square metres and represents an investment of SR250m ($66m).

    Planned facilities include warehouses, designated areas for storing and servicing dry and refrigerated containers, and a re-export section.

    Mawani said the development is intended to strengthen the port’s position on the Red Sea by upgrading service quality, supporting private sector participation and contributing to Saudi Arabia’s broader economic diversification goals.

    Jeddah Islamic Port currently operates 62 multipurpose berths and can handle up to 130 million tonnes a year.

    The latest agreement follows Mawani’s April 2025 signing of more than SR500m ($133m) in agreements with local firms to develop two logistics parks at King Abdulaziz Port in Dammam, as reported by MEED.

    In a statement, Mawani said that in 2024, it launched and inaugurated eight logistics parks with an estimated investment of about SR3bn ($800m).

    The firm said: “These investments are part of the broader development of over 20 logistics centres under Mawani’s supervision across Saudi ports, with total investments over SR10bn ($2.6bn).”

    GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    The infrastructure construction sector is expected to grow at an average rate of 6% in 2025-28, supported by government investments in rail, dams and road infrastructure projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15838212/main.gif
    Yasir Iqbal