Contractor appointed for $1.4bn Jubail Island project in Abu Dhabi

The Jubail Island project is being built on a natural island in Abu Dhabi emirate. (WAM)
Updated 19 May 2019

Contractor appointed for $1.4bn Jubail Island project in Abu Dhabi

  • Project will be open to foreign property investors
  • Gulf Contractors Company to carry out enabling works

LONDON: A contractor has been appointed to carry out initial works for a $1.4 billion island development in Abu Dhabi.

Gulf Contractors Company won the enabling works contract for the Jubail Island project in the UAE capital, the company behind the development said.

The works under the contract are scheduled for completion in January 2020, according to the Jubail Island Investment Company (JIIC), the UAE state news agency WAM reported.

Enabling works generally involve major earthworks and grading of a site, ahead of the installation of infrastructure such as roads, utilities, and other facilities. 

Over 2.5 million cubic meters of material will be excavated and placed to create the formation level for over 40 kilometers of roadways and more than 800 residential properties as part of the contracted works, according to WAM.

The giant Jubail Island project will span six “investment zone villages” and will be home to between 5,000 and 6,000 residents, according to the developer. 

The project, which has 13 kilometers of waterfront and is being built on a natural island in Abu Dhabi emirate, is slated for completion in the fourth quarter of 2022.

“Offering housing, commercial, leisure and freehold investment opportunities particularly for Emiratis and expatriates is a central planning element for Jubail Island,” said Mounir Haidar, managing director of JIIC.

“Today’s announcement confirms the timely delivery of the newly launched project in conformity with leading construction and environmental standards.”

Abu Dhabi in April amended its real estate laws, lifting restrictions on foreigners owning freehold properties in certain free zones in the emirate.


Saudi mall operator Arabian Centres bucks retail malaise as profits surge

Updated 21 August 2019

Saudi mall operator Arabian Centres bucks retail malaise as profits surge

  • Mall operator defies online shopping pressure by lowering discounts to tenants, boosting occupancy and rental revenues

LONDON: Arabian Centres, the Saudi mall operator which went public in May, said first-quarter consolidated net profit almost trebled to SR227 million ($60.53 million) as occupancy edged higher across its shopping centers. Revenues increased by about 2.5 percent over the year to SR572.5 million.

The results helped to propel the group’s shares 3 percent higher on Tuesday.

The group said that it boosted performance by offering lower discounts to its tenants which helped to drive rental revenues. Like-for-like occupancy across all malls increased  to 93.2 percent from 92.4 percent in the year earlier period. Finance costs fell by about 65 percent from a year earlier to SR73.9 million.

FASTFACT

 

27 - Arabian Centres plans to expand its mall portfolio to 27 within four years.

Retailers across the Middle East are coming under increased pressure as more consumers shop online, while at the same time, tourists are spending less in dollar-pegged economies because their purchasing power has been cut by the strength of the greenback. Still, in Saudi Arabia, the under-served retail market is expected to receive a boost from rising investment in the entertainment sector, especially new cinemas.

“Faced with the rising challenge of online shopping, the brick-and-mortar retail segment has sought to diversify its offering to secure its customer base, providing an increased range of leisure and entertainment facilities,” said Oxford Business Group, in a report analyzing emerging trends in the Saudi retail sector.

“The reintroduction of cinemas to the Kingdom in April last year ... is expected to increase retail footfall,” it said.

Arabian Centres, majority-owned by Fawaz Alhokair Group, listed its shares on the Tadawul stock exchange in May — the first to do so in the Kingdom under Rule 144a, allowing the sale of securities, mainly to qualified institutional buyers in the US.

The group aims to expand to 27 malls within four years.