Two recent construction awards in Dubai have given much-needed encouragement as the market moves towards the summer.

Dubai’s Roads & Transport Authority (RTA) has awarded contracts for two road construction projects totalling nearly $400m. As a Dubai government entity, the awards show that despite concerns that spending is being reined in to focus on projects supporting Expo 2020, the government is still investing in new infrastructure schemes.

Both awards are about the same size in terms of value. Beijing-based China State Construction Engineering Corporation has been awarded a AED710m ($193m) contract to build the next section of the Shindagha corridor scheme, while Turkey-based Mapa Gunal has been awarded a AED712m contract for the latest phase of construction work on the upgrade of the Al-Ain highway.

The awards also give added confidence that other major contracts tendered by government of Dubai entities will proceed. The largest currently out to tender is the estimated AED10bn substructure contract for Concourse 1 and the West Terminal building at Al-Maktoum International airport for Dubai Aviation Engineering Projects (DAEP).

The contract awards build on a positive first-quarter performance. According to regional projects tracker MEED Projects, there were $3.3bn of construction and transport awards in Dubai during the first three months of the year, and $3bn of contracts completed – delivering a net gain of about $300m during the quarter.

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