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Local firm Arabian Construction Company (ACC) has been awarded an estimated AED2.5bn ($680m) construction contract to build about 500 villas at the Ramhan Island development in Abu Dhabi.

The contract was awarded by the local firm Eagle Hills, which is led by Mohamed Alabbar, the founder and chairman of Emaar Properties.

Earlier in December, MEED exclusively reported that the client had awarded Egyptian construction firm Hassan Allam a contract to build about 321 villas on Ramhan Island.

Located off the coast of Abu Dhabi, the Ramhan Island development spans an area of over 4 million square metres.

The overall development includes the construction of 1,800 villas, 900 residences, a hotel and retail facilities.

Eagle Hills signed an agreement with US-based hotel operator Marriott International in July to build a Ritz-Carlton Reserve hotel on Ramhan Island.

The property will feature 50 private one- to four-bedroom villas, including floating villas. The development is expected to open in 2029.

Mohamed Alabbar launched the Ramhan Island development in May this year.

GlobalData expects the construction industry in the UAE to expand by 4.6% in real terms in 2024, supported by improved investments in transport, industrial and residential construction projects. Private sector investments in the real estate sector will also support the industry’s growth this year. 

The construction industry is expected to register an annual average growth of 3.8% in 2025-28, supported by investments in transport, housing and renewable energy projects.