In the dazzling skylines of the UAE, major developers are rewriting the rulebook. Once reliant on external contractors, players like Emaar Properties, Samana, Ellington, Azizi, and Arada are bringing construction in‑house—setting up their own contracting units to gain tighter control, unlock cash flow, and maximize profits. But with great ambition comes new risks. Here’s the full story.
Why the Shift to In-House Construction?
- Booming Real Estate Market
Dubai’s property market is soaring. Prices have climbed 70% during the four years up to December 2024, while its government plans to double the emirate’s population to 7.8 million by 2040 - Escalating Demand, Slowing Completions
Launches surged by 83% in 2024—but completions lagged by 23% as developers struggled to keep pace - Fewer Contractor Bids, Higher Costs
With demand skyrocketing, competition among contractors has plunged. Samana notes bids now come from just two or three firms, compared to 25–30 previously
Countdowns & Cash Flow: Why Internalizing Builds Makes Sense
1. Faster Deliveries → Quicker Access to Escrow Funds 💸
Projects are often funded by buyer payments held in escrow until handover. Developers need completed projects to release those funds—hence, in-house construction speeds up cash flow.
2. Better Control Over Costs, Quality & Timelines ⏱️
By internalizing construction, developers like Emaar—through its new unit Rukn Mirage—can directly manage standards and execution
3. Higher Profit Margins 📈
Forgoing the contractor’s markup means developers can retain more value under their own roofs.
4. Strategic Self-Reliance
Owning the full development pipeline—land, construction, handover—aligns with national objectives to reduce reliance on external entities
Spotlight on Developers
- Emaar Properties – Launched Rukn Mirage, its in‑house construction arm under the Mirage subsidiary. A hybrid model: some projects are internal, others outsourced
- Samana Developers – Originally aimed for 20% of projects via its new unit; now handles 80–90% internally, illustrating just how steep contractor shortages have become
- Ellington & Azizi – Have also established their own contracting operations in the last two years
- Arada – Took a unique route: acquired part of an Australian contractor in 2025, planning full integration into its UAE workflow by 2027
Risks on the Horizon: When Control Becomes a Burden
Bringing construction in-house isn’t risk-free. Analysts warn of several pitfalls:
- Diluted Focus = Operational Risk
Gordon Rodger of Stonehaven cautions that developers juggling land acquisition, sales, marketing, funding, and now construction may stretch teams too thin - Idle Capacity During Downturns
If the market softens, in-house assets—plants, pre-cast yards, equipment—could sit unused, weighing heavily on the balance sheet - Less Opportunity for External Contractors
As developers internalize work, independent contractors may pivot to sectors like infrastructure, oil & gas, or manufacturing
Fast Facts at a Glance
| Developer | In-House Strategy | Key Motivation |
|---|---|---|
| Emaar | Rukn Mirage; hybrid model | Better quality control, balanced sourcing |
| Samana | 80–90% projects in-house (originally 20%) | Bid scarcity, faster timelines |
| Ellington, Azizi | Launched internal contracting units | Boost cash flow and reduce outsourcing |
| Arada | Acquired part of Australian contractor; integrate by 2027 | Secure expertise and future efficiencies |
Wrap-Up: A Smart Move—With Caution
The UAE’s developers are seizing the moment—transforming their business models to increase efficiency, margins, and resilience. In-house construction offers:
- Quicker access to funds
- Tighter project control
- Greater profit potential
- Alignment with national industrial strategies
However, these gains come with sharper challenges:
- Complex internal management
- The danger of overcapacity
- Operational risks in a volatile real estate market
As Dubai continues its growth trajectory, this strategic shift could reshape how its skyline—and its real estate industry—evolves. The power balance is shifting: developers now control more of the building process—but with greater control comes greater responsibility.
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