The Middle East’s construction and real estate market has gathered steam over the past year, led by the strong recovery in the UAE. The rebound in property prices, which began in Dubai in 2012 and Abu Dhabi last year, has resulted in new project launches, off-plan sales and a surge in investor confidence.

The improved sentiment has been felt across the region with firms in the UAE, Saudi Arabia, and Qatar all making the MEED 100.

Leading the way as the region’s largest listed real estate developer is Dubai-based Emaar Properties, which rose nine places to 14 as the company launched a raft of new residential, retail and hospitality projects in 2013. The developer recorded a net profit of AED2.6bn last year, an increase of 21 per cent compared with 2012.

Emaar’s real estate sales in Dubai tripled to AED12bn, following the launch of several properties in Downtown Dubai, Emirates Living and Arabian Ranches. The company also unveiled Dubai Hills Estate, the first phase of Mohammed bin Rashid City (MBR City), a joint venture with the local Meraas Holding; and a waterfront city built on the Dubai Creek, also part of MBR City, as a joint venture with Dubai Holding. MBR City is a new tourism megaproject announced in 2012 that will house the world’s largest shopping mall and more than 100 hotels. Emaar also unveiled Vida Hotels and Resorts, its new hospitality concept aimed at younger business and tourism travellers, and Dubai Inn, its new affordable hotel brand.

The second highest-placed real estate and construction firm was Qatar-listed Ezdan Holding, which dropped seven places to 22. The firm is expected to be a key beneficiary of the build-up to the Fifa World Cup in 2022, and has already signed an agreement with the Qatar Bid Committee 2022 to build 50,000 housing units ahead of the event. The company’s net profit soared to QR1.07bn in 2013, an increase of 289 per cent from QR275m in 2012.

The next-placed real estate firm at position 29 is Saudi Arabia’s Jabal Omar Development Company, the firm behind the $5bn redevelopment of Mecca. It has jumped 54 places since 2011, reflecting the progress it has made on its major projects. Most recently, the company awarded an $800m contract to UAE-based Ruwad Construction Company for the fourth phase of the redevelopment of Mecca. When completed, the Jabal Omar scheme will comprise 37 towers.

Abu Dhabi-listed Aldar Properties made the MEED 100 for the first time, entering at position 37 with a market capitalisation of $7.26bn, following its merger with Sorouh Real Estate, approved in March 2013. Aldar’s net profit jumped 67 per cent to AED2.25bn last year.

The company is heavily involved in the Abu Dhabi government’s drive to build affordable homes for locals. It is currently building 2,300 homes for Emiratis in schemes worth AED5.7bn, having already developed or delivered 6,744 units. In February, Aldar said it planned to develop 1,000 new apartments across Abu Dhabi from Al-Bateen to Raha Beach.

Also entering the list for the first time is Dubai-based construction firm Arabtec Holding, which debuted at 70th position with a market capitalisation of $4.2bn. The fortunes of Arabtec have changed dramatically since May 2012, when Abu Dhabi government-controlled investment vehicle Aabar Investments became its largest shareholder. Before the acquisition, the firm was active in Abu Dhabi, but its success was limited. According to regional projects tracker MEED Projects, the company secured more than $1bn of work in Abu Dhabi between 2005 and 2011, but failed to pick up the big-ticket contracts it was able to win in Dubai.

That quickly changed, however. In 2012, Arabtec was part of a consortium – with Turkey’s TAV and Athens-based Consolidated Contractors Company (CCC) – that won the $2.85bn contract to build the Midfield Terminal building at Abu Dhabi International airport. Then, in 2013, it pick up a $653m contract to build the Louvre museum in joint venture with Spain’s San Jose and the local affiliate of Saudi Oger, along with the $272m contract to build the Fairmont hotel development.

As well as seeing its backlog swell, Arabtec has been working on international mergers and acquisitions

In Febuary this year, Arabtec was awarded the largest ever construction deal in the UAE, worth $6bn, for the design and construction of 37 towers across Dubai and Abu Dhabi, by Aabar. This was followed in March by the signing of a $40bn contract with the Egyptian government for the development and construction of 1 million low-income housing units. It has also won a AED2.6bn contract to build a mixed-use development on Abu Dhabi’s Reem Island and a AED5.7bn deal to build Jordan’s first themed tourist destination, the Red Sea Astrarium.

As well as seeing its backlog swell, Arabtec has been working on international mergers and acquisitions to support its expansion across the Middle East and Africa. It bought up remaining shares in its subsidiaries Target Engineering and Emirates Falcon Electromechanical Company, and formed a joint venture for oil and gas projects with South Korea’s Samsung Engineering. It is also close to finalising a partnership with another South Korean firm, GS Engineering & Construction for heavy infrastructure projects.

Arabtec, which listed on the Dubai Financial Market in January 2005, has seen its share price rise in the past year from just over AED2 to AED 5.67. The firm’s management says it is considering a series of IPOs from 2015 to strengthen its presence in markets outside the UAE.