Dubai developers bring construction in-house as demand surges

DUBAI: In a city famed for transforming desert into skyline, developers are taking the building process into their own hands as they seek to turbo-charge a property boom and maximise cash flow.

A growing number of major UAE developers are setting up in-house contracting firms, after long relying on third-party contractors. The move is aimed at increasing control over construction timelines, costs and quality standards, and ultimately, securing a larger share of profits, though it could also carry risks.

In a previously unreported sign of the trend, Emaar Properties EMAR.DU, which developed the Burj Khalifa, has established Rukn Mirage under its subsidiary Mirage, a spokesperson told Reuters. Emaar joins developers such as Samana Developers, Ellington, and Azizi, all of which have launched in-house contracting units in the past two years.

Arada, the developer co-founded by Saudi Prince Khaled bin Alwaleed bin Talal Al Saud, also confirmed in a statement to Reuters that they acquired part of an Australian contractor this year and plan to integrate it into UAE operations by 2027.

The shift comes as Dubai’s real estate surges, with prices up 70 per cent over four years to December 2024 and a government plan to double the population to 7.8 million by 2040.

Property launches rose 83 per cent in 2024, though completions fell 23 per cent, industry data shows.

The boom has fuelled a new influx of workers, including migrant labourers mainly from South Asia, with high rates of turnover among expatriate staff. It has also led to fears of a downturn in a sector that remains crucial to the UAE economy.