Parsons secures Rua Al Madinah contract; DAMAC appoints China State for Cavalli Tower; Abu Dhabi’s new MTB; P&O Maritime and Mammoet agreement

It’s contract awards galore this week at Construction Week Middle East. With the top 11 contracts story set as the backdrop, this week saw major bucks flying with companies taking a step forward to secure big projects in the region.

In The Construction Digest this week, we highlight some of the biggest stories in the industry including Abu Dhabi’s new Midfield Terminal Building (MTB), the scope of Parsons’ contract for the Rua Al Madinah project, the top 11 construction contracts in January 2023, and more.

Scope of Parsons’ Rua Al Madinah contract worth $15 million

US-headquartered construction consultancy Parsons’ Rua Al Madinah project scope has emerged after the company was selected by Saudi Arabia’s Rua Al-Madinah Holding Company (RAMH) to work on the mixed-use real estate development in the holy city of Al-Madinah Al-Munawarah.

The New York-listed Parsons’ Rua Al Madinah scope includes providing construction project management consultancy and contract administration services through the $15 million contract. 

China State Construction wins $241mn DAMAC contract

DAMAC Properties has officially awarded China State Construction Engineering Corporation with the main works construction contract for its 71-storey Cavalli Tower.

The contract, valued at approximately $241 million, was awarded by DAMAC to finalise the main works construction of the luxurious high-end residential tower in Dubai Marina. At completion, Cavalli Tower will feature premiere interior designs by renowned Italian fashion house Roberto Cavalli and breathtaking views of the Palm Jumeriah.

The design of the tower was the brainchild of award-winning architect Shaun Killa, who also designed the captivating Museum of the Future in Dubai.

Top 11 construction contracts won in January 2023

January has evidently been a busy month for companies confirming construction contracts in the Middle East. With projects being launched left and right, it’s no surprise the sector is backing up its project pipelines with massive contracts and appointments. 

From new coastal hotels and million-dollar refurbishment contracts to rail infrastructure and ethylene plants, the month of January saw a variety of construction contracts in the Middle East awarded to some of the biggest contractors in the region. 

Check out the full list below.

Abu Dhabi is opening a new airport by the end of the year

The UAE’s Abu Dhabi Midfield Terminal Building’s (MTB) opening is reportedly scheduled to take place around December 2023.

Citing the Momberger Airport Information, Airports Council International World (ACI World) reported the MTB’s opening will likely take place on 2 December, the UAE’s National Day. 

Upon completion, Abu Dhabi MTB is expected to accommodate up to 11,000 passengers per hour or about 45 million passengers annually. 

Abu Dhabi’s terminals 1 and 2 are expected to be shut down permanently, while T3, the latest addition, “will likely be mothballed”, ACI World reported.

Mammoet and P&O signs transportation deal for Red Sea’s Sheybarah villas

The UAE’s P&O Maritime Logistics and Netherlands-headquartered Mammoet have signed a contract for the transportation of Sheybarah Island villas for Saudi Arabian gigaproject developer Red Sea Global (RSG).

The Sheybarah Island Resort is a cornerstone project and part of the Saudi Vision 2030. It will consist of a total of 73 prefabricated villas, some of which will hover above the island’s diverse ecosystem.

Stainless steel orbs for the villas were conceptualised by Oppenheim Architecture, based in Miami and designed by Killa Design. 

DAMAC Date Centres to go live in KSA

DAMAC Data Centres, a global digital infrastructure provider owned by the DAMAC Group, will go live with facilities in Riyadh and Dammam, Kingdom of Saudi Arabia (KSA) before the end of 2023.

The company announced at LEAP 2023 that a further 35 megawatts IT capacity will be built in addition to the 20 megawatts already under construction.

Each facility will launch with 5 megawatts IT capacity in Q4 2023, followed by a further 5 megawatts in Q1 2024. Both facilities will deliver a full 55 megawatts of IT capacity by 2025. The investment in the Kingdom of circa $600 million is part of $1 billion data centre development strategy.

Also read!

Saudi Arabia’s real estate market shows fragmented performance in 2022

Saudi Arabia’s real estate sectors have recorded fragmented performance across cities and asset classes over 2022, according to global commercial real estate services and investment firm CBRE’s Saudi Arabia Real Estate Market Review Q4 2022 report.

Looking at Saudi Arabia’s office sector figures, occupier demand remained strong over the last quarter of 2022. This was particularly so in Riyadh, where stock levels remain anaemic at best, and many upcoming developments are mostly fully pre-leased.

Read the full report below.

That's all for this week. Thank you for reading!

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