Imkan, an Abu Dhabi-based developer, awarded a contract worth Dh236 million to Dhabi Contracting to build the first phase of Al Jurf Gardens a project along the UAE's coast between Dubai and Abu Dhabi.
The first phase of the project will include villas, a private beach, a marina and a wellness retreat.
Dhabi Contracting will construct 146 residential and two show villas over a total area of 5.78 hectares at Sahel al Emarat, Imkan said on Sunday. The project is scheduled to be completed in 2022.
"Our priority in choosing a construction partner for this project was to work with one that shares our ethos and beliefs," said Imkan's chief executive Walid El Hindi. "We are confident that Dhabi will play a vital role in the smooth delivery of Al Jurf to the best standard while – most importantly –protecting Al Jurf's natural habitat and ecosystem."
Set up in 1983, Dhabi Contracting's project portfolio includes Al Khail Avenue Mall, Adnoc's villas in Ruwais and Le Royal Meridian Abu Dhabi.
"As a company that has played a major role in the growth of the UAE, with its numerous specialised developments, we will be drawing on our unrivalled expertise to bring to life this premium lifestyle concept," said Dhabi Contracting's general manager Samy Edward.
Al Jurf will also house Sha Emirates, a branch of European wellness clinic and retreat, Sha Wellness.
A wholly owned subsidiary of Abu Dhabi Capital Group, Imkan has a portfolio of 26 projects worth Dh100 billion in different countries such as the UAE, Egypt, Morocco, Seychelles and Sri Lanka.
Last year, it launched Le Carrousel, a 10ha development along the Atlantic coast in Morocco. The total investment in the mixed-use project is 1.5bn Moroccan dirhams (Dh558m).
The company is also looking to expand in Egypt, where it purchased a 67.17ha plot from the Egyptian government to develop a mixed-use project in New Cairo near the American University campus for 4bn Egyptian pounds (Dh934m) last year.
In Abu Dhabi, Imkan's projects under development include Pixel, a mixed-use scheme in its Makers District development on Reem Island; Nudra, a luxury beachside villa community; and Sheikha Fatima Park, with retail and food and beverage outlets.
The UAE's real estate market is expected to face strong headwinds in the near term due to the coronavirus pandemic and low oil prices, consultancy Core said in a report last month.
However, the stimulus measures introduced by authorities are expected to help the property sector recover from the current situation.
The UAE Central Bank introduced a Dh100bn stimulus package this year, and later increased it to Dh256bn.
The regulator reduced reserve restrictions on bank deposits and expanded its Targeted Economic Support Scheme to cushion the economic blow of the Covid-19 outbreak.