Mr. El Haggar (Abu Dhabi)
Real estate projects in Abu Dhabi have led the growth of the construction and contracting sector in Abu Dhabi, with real estate companies continuing to award more contracts for new projects, committed to completing them according to the specified timetables.
Aldar Properties recently announced the award of 49 contracts worth a total of AED 22 billion for a series of key projects, including infrastructure, residential, commercial and mixed-use projects across Abu Dhabi in 2023. The contracts were awarded to 36 companies in the UAE, with nearly 50% of the value – AED 10.5 billion – being reinjected into the local economy, in line with the National Value Added Programme targets.
A recent study by the British company Global Data stated that residential construction has captured the highest share in the country’s construction market, with the real estate sector continuing to grow, supported by the continued launch of more new real estate projects, noting that the value of the construction sector in the UAE reached about $94 billion last year.
Real estate officials and contractors confirmed to Al-Ittihad that the successive awarding of more contracts in the real estate sector in Abu Dhabi supports activity in the contracting and construction sector in the country.
The “Dari” digital platform for real estate services affiliated with the Department of Municipalities and Transport in Abu Dhabi revealed the registration of 32 new real estate projects in Abu Dhabi from the beginning of 2024 until the beginning of this July.
New contracts
Adel Abdullah Al Breiki, CEO of Aldar Projects, confirmed that Aldar’s award of 49 contracts with a total value of AED 22 billion during 2023 reflects the continuous development witnessed by Abu Dhabi, explaining that these projects provide office spaces and a diverse experience, in addition to infrastructure projects.
He explained that these awarded contracts include the implementation and delivery of residential projects that include villas, townhouses and apartments, in addition to Class A office spaces, retail spaces, schools and main highways in some of the most developed areas in the Emirate of Abu Dhabi, including Yas Island, Saadiyat Island and the Al Shamkha area.
53% of these contracts were awarded to implement projects affiliated with Aldar, while the remaining 47% of the contracts were allocated to implement projects commissioned by the Abu Dhabi government.
In 2023, Aldar appointed Trojan General Contracting, in partnership with Arabian Construction Company, to implement the first two phases of the Saadiyat Lagoons project on Saadiyat Island, while it assigned Inovo Build to implement the third phase of the project. Aldar also awarded a contract to Inovo Build to develop the project and implement infrastructure works in the Saadiyat Grove project.
On Yas Island, Aldar has appointed Fibrex to develop residential units at Yas Park Gate and Yas Park Views, Arabian Construction Company to build a Class A office tower, and Norol to build villas and infrastructure at Fay Al Reeman 2.
Aldar has also appointed Trojan General Contracting to develop villa units and implement infrastructure works in the Belghilem project.
In addition, Aldar has appointed National Projects & Construction Company, Nile & Bin Harmal Hydro Export, Noor Al Sahraa General Contracting and City Construction General Contracting to implement major infrastructure projects.
Tenders
Bloom Holding announced last March the appointment of Emirates Support Maltauro as the main contractor for the construction of Casares, the third phase of Bloom Living in Abu Dhabi. The company confirmed that construction work on the first two phases of the project, Cordoba and Toledo, is progressing at a steady pace, with approximately 60% of the total construction work completed on Cordoba phase, which is scheduled for delivery in the fourth quarter of 2024. The Toledo phase has also witnessed the completion of more than 23% of the total construction work, with its units scheduled for delivery in the second quarter of 2025.
Q Properties, a subsidiary of Q Holding, announced last August that it had awarded the AED 1.755 billion contract to Trojan General Contracting to build the first phase of the Reem Hills villas in Abu Dhabi. Trojan General Contracting will build 218 fully sold luxury villas in the project. In March 2023, Q Holding Group signed a AED 470 million contract with National Projects and Construction Company (NPC) to implement infrastructure and road works related to the first phase of the Reem Hills project on Reem Island.
Last April, Jubail Island awarded a contract worth AED 327 million to Dar Al Enshaat General Contracting Company to build its new destination, Jubail Views, in Souq Al Jubail Village, which consists of 242 residential units.
contracting companies
In turn, Salem Mohammed Al Marzouqi, General Manager of Dream City Transport and General Contracting Company, confirmed that the successive launch of more new real estate projects enhances the activity of contracting companies, explaining that large contracting companies benefit primarily from these projects, but small and medium-sized companies may also benefit from these projects through subcontracting.
Al Marzouqi stated that the largest proportion of small and medium enterprises’ work is focused on citizen loan housing projects, calling for granting more opportunities and facilities to small companies to contribute to real estate projects in cooperation with major companies.
A recent report by Kamco Invest revealed that the total value of projects awarded in the UAE jumped by 2.7 times year-on-year in 2023 to reach an all-time high of $79.5 billion (AED 292 billion), compared to $29.7 billion in 2022, with the construction sector once again accounting for the largest share of new projects in the UAE, accounting for 44% of all UAE projects in 2023, valued at $35 billion (AED 128.5 billion), compared to $19.1 billion in 2022.
The report indicated that in 2023, construction projects worth more than $17.5 billion (AED 64.2 billion) will be awarded across various real estate asset classes, such as residential, commercial, hospitality and retail sub-sectors.
Contracting contracts
Data issued by the BNC Network showed that the value of contracting contracts concluded in the UAE grew by 99% during 2023, reaching about 347.8 billion dirhams ($94.78 billion), compared to 174.58 billion dirhams ($47.57 billion) during 2022.
Real estate maintained its lead, accounting for about 54% of the total value of contracts concluded in the UAE during 2023, after growing by 39% to reach AED 188 billion ($51.26 billion), compared to AED 135 billion ($36.8 billion) during 2022, followed by contracting contracts concluded in the oil and gas sector, while utility projects came in third place.
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