Nakheel Awards $204M Infrastructure Contracts for Palm Jebel Ali Project

Staff Writer

Jun. 17, 2025

Nakheel awards $204M (AED 750M) in contracts for roads and utilities on Palm Jebel Ali, advancing Dubai’s major waterfront expansion project.

Nakheel awards $204M in contracts for roads and utilities on Palm Jebel Ali

Nakheel, a subsidiary of Dubai Holding Real Estate, has awarded three major infrastructure contracts for Palm Jebel Ali, with a combined value exceeding $204 million USD. The projects are expected to be completed by the fourth quarter of 2026. (Source: WAM)

Nakheel, the developer behind Dubai’s iconic Palm island series, has issued construction contracts exceeding $204 million (AED 750 million) to support vital roads, utilities, and foundational works across the Palm Jebel Ali development. This investment marks a significant step forward for the 13.4 square-kilometer island project.

Bringing Palm Jebel Ali to Life

Acting on directives aligned with Dubai’s 2040 Urban Master Plan, the awarded contracts serve as the first major phase in building out the man-made island, which aims to double the size of the original Palm Jumeirah. The infrastructure work encompasses segments of the crescent and the frond areas, laying the groundwork for subsequent residential, hospitality, and leisure developments.

Essential Roads and Utilities Deployment

The construction scope includes the installation of primary and secondary road networks throughout the island, as well as vital utility systems such as water, electricity, sewage, and stormwater drainage. According to Nakheel, completing these foundational systems is critical to enabling future phases involving villas, resorts, and community facilities.

Palm Jebel Ali aerial render. (Image: Nakheel)

Strategic Fit with Dubai’s Growth Vision

Nakheel’s investment directly supports Dubai’s long-term vision of expanding waterfront real estate and enhancing urban connectivity. As part of this broader master plan, Palm Jebel Ali is poised to feature approximately 80 hotels and resorts, alongside extensive housing and leisure areas. The latest contracts ensure the island is operationally ready to receive developer attention and investor interest.

Project Revival and Renewed Interest

Originally put on hold following the 2008 global financial crisis, Palm Jebel Ali was officially revived in 2023. Since then, market demand for luxury beachfront property in Dubai has surged. Premium villa plot releases and branded residences targeting affluent buyers have led to quick sell-outs, underlining the development’s growing appeal.

Timeline and Outlook

Nakheel expects the infrastructure works to be completed within the next 18 to 24 months, enabling the launch of construction on residential plots and resort facilities soon after. The timely delivery of these utilities and transport links will be pivotal to sustaining investor confidence and maintaining momentum for Palm Jebel Ali’s next phases.

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