Local real estate developer Nakheel has awarded three construction contracts totalling AED2.3bn ($627m) for the construction of retail centres in Dubai. The centres are due to be completed in 2018.

The largest deal, valued at AED1.17bn, was awarded to the local United Engineering Construction (UNEC) for the construction of the Deira Islands Night Souq and Boardwalk.

Once completed, the souq will stretch almost 2 kilometres along Deira Islands’ waterfront, and feature 5,300 shops and nearly 100 quayside cafes and restaurants.

The second-largest contract was awarded to the local Ginco General Contracting for the construction of the Warsan Souq.

The AED775m deal involves the construction of a new retail complex between Sheikh Mohammed bin Zayed Road and Manama Road, next to International City. Once completed, it will have 1,170 shops including two department stores, and 30 cafes and restaurants with indoor and outdoor dining.

The final contract, valued at AED353.75m, was awarded to Gulf Technical Construction Company for The Circle Mall at Jumeirah Village Circle. Located between Sheikh Mohammed bin Zayed road, Al-Khail Road and Hessa Street, the mall will have 235 shops, a multi-screen cinema, and a health clinic, as well as cafes, restaurants and a food court. 

Biggest portfolio

Nakheel says its retail project portfolio is expected to become the biggest in the UAE, with 10 new large-scale developments and a growing collection of community retail centres at various stages of development. In total these projects will add more than 10 million square feet of leasable retail space, adding to the 3.4 million sq ft already in operation at its Dragon Mart and Ibn Battuta Mall developments.

Earlier in October, Nakheel awarded a AED819m contract for the construction of The Palm Tower to a local joint venture of Trojan General Contracting and National Projects & Construction (NPC).

The 52-storey, five star hotel and residential complex will be built on the Palm Jumeirah

The 240-metre tower will have 504 apartments, a 290-room five-star hotel, and dining and leisure facilities such as a rooftop infinity pool, and a restaurant and viewing deck.

The Palm Tower will be connected to Nakheel Mall. In 2014, Nakheel signed a AED1.2bn deal to build the Nakheel Mall on the Palm Jumeirah with UNEC and the local Actco General Contracting Company.

The 418,000-square-metre mall will have five retail levels with more than 100,000 sq m of retail space, three basement parking levels with 4,000 spaces, 300 shops, two anchor department stores, a nine-screen cinema, medical centre and fitness complex. There will also be a roof plaza with food and beverage outlets. The project is expected to be completed in 2016.

The Palm Tower will also offer direct access – via a bridge and walkways – to Palm Jumeirah’s beach clubs, including Nakheel’s Club Vista Mare and Palm Promenade West Beach projects.

The Palm Tower is one of 10 hotels being constructed by Nakheel as part of its expansion into the hospitality sector.  Others are located at Deira Islands, Ibn Battuta Mall and Dragon City.