Dubais projects market is having a busy summer with nearly $6bn of construction contracts out to tender, according to data from MEED and regional projects tracker MEED Projects.
The value of work out to tender will increase sharply when Emaar Properties tenders the contract to build the shopping mall at the Dubai Creek Harbour development. MEED reported in late July that t the developer plans to tender the contract, which is expected to be worth AED15bn-18bn in early August.
The other major projects that are out to tender are Azizi Properties skyscraper on Sheikh Zayed road, A tower at the Burj 2020 District, the automated people mover for Al-Maktoum International airport, infrastructure at Dubai Waterfront, Avenues Mall at Dubai Silicon Oasis, a hotel and resort on Deira Islands, the Six Flags theme park, and a tower Dubai Marina.
Contractors in the emirate say that they are almost overwhelmed by the volume of tenders that have been issued this summer and companies are having to be selective and decide which projects they bid for. We are very busy tendering, and we can only price so much work properly, so we have to decide what the best opportunities for us are, says a local contractor.
The challenge for firms is to decide what the best opportunities are. There are a lot of opportunities, but many of them are not good opportunities, says another local contractor. Designs are often not complete, the tender is rushed, we need to price in risk accordingly, and clients budgets will not allow that because the business plans are already stretched.
|Dubai projects out to tender|
|Dubai Aviation Engineering Projects (DAEP)||Automated People Mover||500|
|Nakheel||Madinat al-Arab infrastructure||450|
|Nakheel||Cluster B at Deira Islands||300|
|Nakheel||Cluster C at Deira Islands||300|
|Nakheel||Cluster A at Deira Islands||300|
|Nakheel||Cluster D at Deira Islands||300|
|Nakheel||Mixed-use towers at Dragon City||272|
|DMCC||Burj 2020 District tower||272|
|Lulu Group||Dubai Silicon Oasis mall||272|
|Nakheel||RIU Hotel and Resort||182|
|Dewa||Expansion of Jebel Ali power plant||150|
|Emaar||Opera District Act One and Act Two||150|
|Dubai Parks and Resorts||Six Flags||136|
|Source: MEED Projects/MEED|
There is also a concern that the peak in tendering activity may not last as contracts that are procured later may not be ready for the Expo in 2020. We could be seeing the final push for major projects that want to be ready in time for the Expo, says an international contractor.