Dubai Contracting Company (DCC) has won a Dh1 billion plus contract from IFA Hotels and Resorts for the first phase of the Kingdom of Sheba resort at Palm Jumeirah.

Abdallah Yabroudi, CEO of DCC, said this was the third IFA project DCC is working on.

"This is a very exciting project and we look forward to collaborating on future projects with IFA Hotels & Resorts," he said.

Wissam Otaky, Business Development Manager of DCC, said: "The contract was obtained through negotiations. It has become the most common practice for awarding contracts these days and is convenient for both parties. Work on the project is scheduled to start soon. We have also appointed two project managers to work on the project."

DCC is currently establishing the site office, he added.

The first phase of the construction includes the residential component – Balqis Residence – and the Fairmont Heritage Place, the private residence club.

Balqis Residence comprises 300 sea-view residences, from villas and townhouses to apartments and penthouses.

Richard Haddon, Vice-President of Construction, Dubai, at IFA, said: "We are pleased to have negotiated this contract with DCC. The construction will begin with the raft foundations as all piling works have recently been completed."

Werner Burger, President and COO of IFA, said: "We have already established a healthy working partnership with DCC on past projects in Dubai, including our Fairmont Palm Hotel and Resort on the trunk of the Palm Jumeriah and we couldn't be more pleased to be teaming with them once again."

Located on the crescent of Dubai's Palm Jumeirah, the Kingdom of Sheba is modelled on classic Arabian architecture and will consist of five separate and unique elements.

Managed by Fairmont Hotels and Resorts, the resort will include Balqis Residence, Fairmont Heritage Place, Fairmont Kingdom of Sheba (hotel), Kingdom of Sheba Vacation Club and a traditional souq (retail plaza), covering 141,500 square metres of prime property on the island. DCC is presently working on at least 15 different projects in the UAE.

"We are constantly being approached about new tenders and negotiations on new projects. We have a supply system in place to deal with the shortage of raw materials," said Otaky.