Dubai-based Arabtec Construction has won an AED2.59 billion ($705 million) contract to build a 61-floor block of flats and hotel complex in the Shams area, Arabtec Holding said.

The project, to be constructed on a plot area of 32,000 m2 as part of Al-Reem Island, and a built up area of around 350,000 square meters, will also host a five-star hotel offering 400 guestrooms and 200 serviced apartments.

The project will be a valuable addition to the versatile offering of the Al-Reem Island, claimed to be the largest development in Abu Dhabi and the first of its kind in the region to be developed on a natural island.

The project, designed by the Architecture and Planning Group, is scheduled to begin in the first quarter of 2014 and will be completed within three years.

“Arabtec has been actively involved in delivering a host of infrastructural, tourist and cultural projects that constitute some of the major components of Abu Dhabi’s urban evolution as envisaged in Plan Abu Dhabi 2030,” said Hasan Abdullah Ismaik, MD & CEO of Arabtec Holding.

“This is the first happy tiding of the new year. And there are many on the way. These will be announced in due course. We are confident that 2014 will be a special year not only in terms of new awards but also with regard to the progress of implementation of our growth strategy and the striking of more local and international partnerships to take Arabtec to higher levels of success,” he added.

With the new contract award, Arabtec’s 2013 backlog in 2013 crosses the AED33 billion limit, catapulting to unprecedented levels and exceeding the records in the company’s 38 year history.

Arabtec’s top list of completed projects includes iconic buildings such as the world’s tallest building, the Burj Khalifa in Dubai, and Abu Dhabi landmark, the Emirates Palace Hotel, as well as other technically challenging work on airports and related infrastructure.