Dhabi Contracting has announced its intention of moving into the property development market in order to diversify its revenues, due to the pressure contractors’ margins are facing, The National reported.
The company is planning on building 3 major development projects, to include building an apartment block by Al Raha Beach, a residential building at Saadiyat Marina, and a hotel at Ruwais, in the western region of Abu Dhabi.
Margins have been under pressure in Abu Dhabi over the past two years, with tender bids coming in approximately 20% lower than they were two years ago. Undertaking its own development work not only keeps its staff busy, but also allows it to build efficiently and generate recurring income, Chief Operation Officer, Bishoy Edward said. The company has a turnover of AED 6 billion and a workforce of more than 6,500,
“Being a contractor gives me an advantage. I know how much this building will cost me. If a contractor tells me it is going to cost AED 100 million, then I know that I can build it for AEd 50 million,” he added.
Construction works for the apartment block at Al Raha Beach, which will include 120 units over 11 floors, is currently underway.
An apartment block of 13 storeys is also being built in the Saadiyat Marina district, close to New York University Abu Dhabi, while the company is negotiating with the university a lease deal for the entire building.
The third project will be a five-star hotel in Ruwais that operate as an Anantara hotel by Thailand’s Minor Hotel Group, which is much needed in the area as demand outstrips supply.
Dhabi Contracting Company is one of the most modernized contracting companies in the UAE, and focuses on introducing innovative state of art technologies, design, planning, development, and execution of projects.