Saudi Arabia’s Al-Rajhi Contracting has been awarded the estimated AED380m contract to build the new Ras al-Khaimah ring road in the northern emirate.

Al-Rahji Contracting was the low bidder for the contract with a price of AED377m ($103m) for the first option and AED397m for the alternative option. Al-Rahji’s first option price was about 13 per cent lower than the second-lowest bidder, the local Darwish Engineering, which submitted a bid of AED431m. Al-Rahji’s second option price was also about 13 per cent lower than Darwish’s bid of AED459m.

The consultant working on the project is the US’ Parsons International.

In 2008, UAE President Sheikh Khalifa bin Zayed al-Nahyan allocated AED16bn for infrastructure projects in the Northern Emirates. The funds are being spent on improving roads, sewage and drainage systems, and schools and hospitals.