UAE Developers Turn to In-House Contracting to Gain Greater Control Amid Property Boom

UAE

UAE: Developers in the UAE are increasingly setting up in-house contracting arms to gain greater control over construction timelines, costs, and quality, as the country’s property boom continues. Emaar Properties, the builder of the Burj Khalifa, confirmed the establishment of Rukn Mirage under its subsidiary Mirage, joining Samana Developers, Ellington, and Azizi, which have all launched in-house units over the past two years. Arada, co-founded by Saudi Prince Khaled bin Alwaleed bin Talal Al Saud, said it acquired part of an Australian contractor this year, with plans to integrate it into UAE operations by 2027. 

The trend comes as Dubai’s real estate market surges, with prices up 70% over four years to December 2024 and property launches rising 83% in 2024, even as completions dropped 23%. Developers have struggled to attract bids from external contractors, with some reporting only two or three bidders per project compared to 25–30 previously. Samana Developers now handles 80–90% of its projects internally, up from an initial 20%, CEO Imran Farooq told Reuters. 

Source: Economic Times