Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a AED169m ($46m) contract for the construction of the internal roads and utilities for the 636-unit Bay Villas development at Dubai Islands.

The contract was awarded to the local firm Al-Nasr Contracting Company.

This is the second major contract recently awarded by Nakheel for the Bay Villas project. In August, MEED reported that Nakheel had awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands.

The contract includes the construction of 636 villas.

The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features over 59km of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

The offshore island project gained renewed momentum in 2022 when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.