Dubai Developers Bring Construction In-House: What It Means for International Contractors
A recent report by Reuters has highlighted a striking shift in Dubai’s construction landscape: major developers are increasingly taking
A recent report by Reuters has highlighted a striking shift in Dubai’s construction landscape: major developers are increasingly taking the building process into their own hands. Emaar, Samana, Azizi, and Ellington have all launched in-house contracting divisions, seeking greater control over costs, timelines, and quality standards, while also maximising profit margins.
At first glance, this vertical integration appears logical. Developers are under pressure to deliver faster, avoid penalties, and unlock escrowed cash needed for shareholder distributions and expansion. Dubai’s 2040 Master Plan aims to roughly double the population by 2040. Official documents cite a resident population of about 5.8 million by 2040, while some sources reference a 7.8 million daytime population. In this context, streamlining the pipeline from land acquisition through to handover seems efficient.
The New Self-Sufficient Developer
The Reuters report makes clear how far this trend has gone. Samana Developers, for example, initially intended to allocate only 20 percent of its projects to its in-house contracting arm launched in 2024. Within a year, that figure had jumped to 80 to 90 percent. Emaar Properties, the developer of the Burj Khalifa, has established Rukn Mirage under its subsidiary Mirage. The company has stated that while some projects will be executed by Rukn Mirage, others will continue to be outsourced.
The logic is straightforward. Developers want greater control over programme and delivery. They want to minimise reliance on a contracting market that once saw 25 to 30 firms competing for bids but today often fields only two or three. They want to reduce exposure to costly delays, which can trigger court action and force multimillion-dirham repayments. They also want to capture more profit in a booming market where prices have risen 70 percent in just four years.
The Risks of Going In-House
Should the market turn down, these newly built internal capacities could become liabilities. Idle plant, equipment, pre-cast yards, and payrolls could weigh heavily on balance sheets. What looks like self-reliance in a boom could be seen as overreach in a downturn.
What This Means for International Contractors
For international contractors, the shift raises important questions. Global firms such as Samsung C&T, Besix/Six Construct, and Multiplex have historically played a role in shaping Dubai’s skyline through landmark projects such as the Burj Khalifa, Index Tower, Emirates Towers, and developments in Dubai Marina. Their presence in Dubai and the wider region demonstrates how international expertise has been interwoven with the city’s growth.
Looking ahead, the role of such firms in Dubai’s private real estate sector will depend on how developers balance their new in-house capabilities with continued collaboration with external contractors.
Market Dynamics
Developers may gain higher margins in the short term through internal delivery, yet the long-term appeal of Dubai as a hub has always included international participation. If most residential and commercial projects are delivered internally, international firms may direct more of their focus to government-led infrastructure, energy, or industrial projects.
For companies weighing regional investment, the decision involves comparing Dubai’s evolving developer-led model with opportunities in neighbouring markets such as Saudi Arabia’s giga-projects or other international markets with more open procurement systems.
The Long Game
Emaar has what can be described as a hybrid approach. It has created an in-house contracting subsidiary but has also confirmed that some projects will continue to be outsourced. Other developers may adopt similar strategies that combine in-house capability with selective outsourcing.
Dubai’s real estate sector has long been its showcase, where global firms delivered landmark towers and complex mixed-use schemes. Preserving space for international expertise in this sector would help ensure the city retains the broad appeal that has made it a global construction hub.
Conclusion
The move toward in-house contracting offers developers gains in certainty, control, and profitability. At the same time, Dubai’s long-standing success has been built on collaboration with leading international firms that helped shape its iconic skyline. Continuing to provide opportunities for both in-house capacity and external expertise will reinforce Dubai’s position as a global construction hub renowned for innovation, inclusivity, and partnership.
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