Dubai-based real estate developer Meraas Holding, which is part of Dubai Holding, has awarded a AED690m ($188m) contract for the construction of the fourth phase of the Nad Al-Sheba Gardens community in Dubai.

The contract was awarded to local firm Bhatia General Contracting.

The scope of the contract covers the construction of 92 townhouses, 96 villas and two pool houses.

The contract award comes after Dubai-based investment company Shamal Holding awarded an estimated AED80m ($21m) contract to UK-based McLaren Construction last year for the Nad Al-Sheba Gardens mall.

The project covers the construction and interior fit-out of a two-storey mall, covering an area of approximately 12,600 square metres.

In March, Meraas awarded an estimated AED2bn contract ($544m) to build its Design Quarter residential project in Dubai Design District to Abu Dhabi-based Arabian Construction Company.

The development will comprise three buildings offering over 558 residential apartments. Construction is expected to be completed in 2027.

The UAE’s heightened real estate activity is in line with UK analytics firm GlobalData’s forecast that the construction industry in the country will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects. 

The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.