Construction & Real Estate

Damac expands offsite manufacturing with new 17,000-sqm factory

DUBAI
Damac expands offsite manufacturing with new 17,000-sqm factory

UAE-based Damac Properties is championing offsite manufacturing to accelerate construction, enhance quality and improve efficiency. Through its wholly owned offsite manufacturing division, the Dubai developer has invested more than AED44 million ($12 million) in a multi-line factory spanning over 17,000 sqm. 

The facility manufactures X-Panel and smart building solutions, with an installed X-Panel production capacity of one million square metres annually.

Damac’s production model is certified as a Modern Method of Construction under the Dubai Municipality MMC framework. Dubai Municipality has also formally approved the X-Panel and PPVC systems, supporting more streamlined regulatory approvals for developments using these solutions.

Speaking on the sidelines of Wetex 2026, Mohammed Tahaineh, Chief Projects Officer at Damac Properties, said: "Offsite manufacturing brings industrial precision and consistency to construction. Producing components in a controlled environment while site activities progress allows us to simplify installation, strengthen quality control and support faster, more predictable delivery."

"It also reduces material waste and on-site activity, demonstrating how construction efficiency can deliver both operational and environmental benefits," he stated.

Approximately 10,000 pods are included in Damac’s current project pipeline, while around 30 km of boundary walls across Damac Lagoons and Damac Islands use the X-Panel solution.

In Damac’s factory-controlled production, components are manufactured under standardised conditions, relatively unaffected by weather. Once delivered to site, components such as bathroom pods can be installed using cranes, replacing activities that typically require up to 14 specialised contractors, including masonry and concreting teams. This method reduces the number of trades operating on site, minimises finishing work at height and lowers dust, noise and vehicle movement. 

Material waste reduces from more than 7% of materials delivered to a traditional construction site to less than 1.5% in a factory environment, an approximately 78% reduction. Offcuts can be segregated more effectively, diverting waste from landfill.

X-Panel uses 50% less concrete and steel per unit than baseline precast systems, delivering an associated reduction of up to 50% in embodied carbon per unit. Its enhanced expanded-polystyrene core improves thermal performance, helping reduce operational HVAC energy demand over a building’s lifecycle.

By integrating offsite manufacturing across its development portfolio, Damac is applying greater precision, consistency and efficiency to large-scale construction.