Dubai World-owned developer Nakheel has awarded Arabtec Construction a US $816 million (AED3 billion) contract to build the first 1,500 homes at its Al Furjan development.
The scope of work involves the construction of villas and terrace homes.
Construction will begin in August and the first homes are expected to be delivered in the third quarter of 2010.
Set over 5.4 million m2 south of Ibn Battuta Mall and adjacent to Discovery Gardens and The Gardens, Al Furjan will have more than 4,000 homes. Combined with apartments, hotels and commercial and mixed-use plots in surrounding developments, this will result in a day-time population of about 90,000 people.
Riad Kamal, chairman, Arabtec, said: "We have undertaken a number of major projects with Nakheel across Dubai, but this is our first opportunity to work with them on one of their residential projects."
Nakheel's Dubai portfolio includes The Palm Jumeirah, The Palm Jebel Ali, The Palm Deira, The World, Waterfront, The Universe, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Ibn Battuta Mall and International City.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.