Dhabi Contracting, a leading contractor in the UAE, has announced plans to diversify into the property development market to expand its revenue stream.

The company has three major new development projects in the pipeline in Abu Dhabi, UAE, including an apartment block by Al Raha Beach, a residential building at Saadiyat Marina and a five-star hotel at Ruwais in the Western Region of Abu Dhabi, said a report in The National newspaper.

Bishoy Edward, the chief operating officer, was quoted by the report as saying margins had come under pressure in Abu Dhabi over the past two years, with current tender bids coming in approximately 20 per cent lower than they were two years ago, when there was a greater abundance of work. Undertaking its own development work not only keeps its staff busy, but also allows it to build efficiently and generate recurring income, he said.

Piling and foundation works are under way at the apartment block at Al Raha Beach, which will contain 120 units over 11 floors.

A 13-storey residential block is also being built in the Saadiyat Marina district, close to New York University Abu Dhabi.

The five-star hotel will be operated as an Anantara hotel by Thailand’s Minor Hotels Group. The design phase of the beachfront hotel has just been completed by the consultancy Aecom, the report said.