Azizi Developments Buys AED2.1 Billion of Construction Equipment to Cut Reliance on Rentals

The purchase covers thousands of assets across the group's main operating companies, including Gardenia Contracting, Freesia Electromechanical Contracting and Royal Infra Contracting, as well as Azizi's own factories. The assets are managed by the company's asset, equipment and stores management division.

The largest items listed are 113 tower cranes, 13 jib cranes, 77 personnel hoists, 229 suspended platforms, 70 heavy transport trucks and more than 500 buses for carrying staff and workers.

Why Azizi Is Buying

Azizi said owning an integrated fleet would give it full operational independence, remove its dependence on outside rental companies and speed up project delivery. The company said the shift has already cut its reliance on externally rented trailers by more than 80% because it can now allocate resources more efficiently in-house.

Group chief executive Farhad Azizi said that owning the equipment and running the whole operating chain gives the company control over quality, schedules and speed of execution. He described the purchase as an investment in the company's assets and staff, and a way to keep its promises to customers.

The company said the equipment purchase is part of a wider plan to expand its asset base across heavy machinery, foundation works, precast concrete, interior fit-out, joinery and aluminium. The new assets have already been put to work across its projects, which Azizi values in the billions of dollars, to speed up delivery of residential and mixed-use developments.

What It Signals

The move is a step towards vertical integration for a Dubai developer that already uses group contracting companies to build its projects. Developers that own their cranes, hoists and transport carry more capital on their balance sheets. In return they have more control over timing and are less exposed to rental availability and pricing when many projects are running at once. Azizi did not say how the AED2.1 billion was financed or over what period the equipment was bought.