Sharjah-based Aliya secures Dubai contracts worth Dh1.3b

Dubai: Sharjah-based Aliya Contracting recently bagged Dh1.3 billion worth of projects in Dubai and Ajman, a top official said.

"These include a Dh500 million Triple Towers project," Nazir Ahmad, chairman of Aliya Contracting Co, said.

"Besides, we have been awarded a Dh140 million project in Saudi Arabia and another three buildings with a value of Dh250 million," he said.

The company, which has been in existence for 25 years engaged in constructing smaller buildings, is planning to enter the real estate development market.

"We have already purchased some plots for our own projects. We are going to build two towers, each worth Dh165 million, at Park View on the Emirates Road," said Ahmad, who came to the UAE from Pakistan in 1983.

The company employs 600 people.

"With the new projects at hand, we are planning to hire more people to manage the forthcoming projects," he said.

"Right now, we are managing a total of 25 project sites in the UAE."

The UAE's construction sector is witnessing perhaps the fastest growth in three decades with thousands of projects currently being under execution.

Challenges

The fast-track growth is also posing a stiff challenge to the contractors, who are finding it difficult to cope with rising prices of building materials, soaring operating cost and cost of manpower.

"Prices of steel doubled in eight months while other raw materials have also become expensive. We could possibly absorb five to seven per cent price escalation, not anything beyond that," Ahmad said.

"A lot of contractors are now fixing materials and are buying in advance to save them from the risks of price escalation," he said.

"We are also putting a price escalation clause in the contracts. Beyond a certain limit, we cannot manage the projects. Luckily, most developers are aware of the fact and that's why they also respond positively."

Ajman, the UAE's smallest emirate, has witnessed a major boost in real estate and construction activities, which has driven the demand for materials and manpower, while pushing the land price up.