UAE

UAE Developers Bring Construction In-House to Tighten Control

27 Aug 2025 • 5 min read
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Anna Fischer
Construction Content Writer
UAE developers are no longer content to hand projects over to outside builders — more are setting up their own in-house contracting divisions to maintain tighter control over costs, timelines, and profits.
dubai burj khalifa tower
dubai burj khalifa tower
Source: freepik
Amid surging demand and ambitious urban growth, more developers are taking construction into their own hands. This shift toward in-house contracting is reshaping how projects are delivered, with a focus on tighter control over timelines, costs, and quality, while also securing a larger share of the profits.
A Reuters report highlights this growing trend. Emaar Properties, the company behind the Burj Khalifa, has launched a new construction arm, Rukn Mirage, under its Mirage subsidiary. They have joined Samana Developers, Ellington, and Azizi, all of which have set up their own contracting divisions over the past two years.
Arada, co-founded by Saudi Prince Khaled bin Alwaleed bin Talal Al Saud, has also confirmed the acquisition of part of an Australian contractor, with plans to integrate it into its UAE operations by 2027.
Dubai’s property boom is fueling the change. Prices have surged by70% in the past four years, supported by government plans to nearly double the city’s population to 7.8 million by 2040. Property launches increased by 83% in 2024, while completions dropped 23% — a clear sign that demand is outpacing delivery.
The rapid expansion has also transformed the labor market. Tens of thousands of new workers, primarily migrant laborers from South Asia, have entered the sector, while high turnover among expatriate staff highlights the intense competition for talent. At the same time, some observers warn of the risks of overheating, noting that construction remains a cornerstone of the UAE economy.

We used to get 25 or 30 contractors bidding for a project. Today, you get hardly two or three.

Imran Farooq

CEO at Samana Developers

Samana initially planned for its in-house unit to handle 20% of its projects. Today, that number is closer to 80–90%.

It’s about balancing speed and flexibility.

Mohamed Alabbar

Founder and Managing Director at Emaar

Financing and Risks

Financing is another key driver. Since off-plan payments are held in escrow until the final inspection, developers are increasingly relying on debt markets to cover land acquisition and operational costs. Timely completion becomes crucial — both to release funds and to sustain investor returns.
But experts caution that in-house construction is not without risks. Gordon Rodger, founder and managing partner at Stonehaven, noted that idle resources can become a problem if sales slow:

When developers try to become builders, they start splitting focus, and that’s when things can get muddy. Additionally, if your master developer can’t sell, you’re left with expensive construction resources sitting idle.

Gordon Rodger

Founder and managing partner at Stonehaven

If the trend continues, analysts expect independent contractors to pivot toward sectors such as infrastructure, manufacturing, or oil and gas to diversify revenue streams. The move toward in-house contracting marks a new phase in the UAE’s property sector — one that promises greater efficiency but also introduces new risks.
For contractors, this shift clearly signals the need to adapt. With fewer bids available, standing out will require specialization, faster delivery, or investment in technology. Expanding into adjacent industries may also help reduce reliance on real estate cycles. The market is evolving quickly, but firms that adjust their strategies can still find strong opportunities in an environment where scale, control, and execution set the pace.
author
Anna Fischer
Construction Content Writer
Anna has background in IT companies and has written numerous articles on technology topics.

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