Nakheel, a leading property developer in Dubai, has awarded a contract worth more than Dh1.2 billion ($326 million) for the construction a mall on Palm Jumeirah to two UAE firms.

The Nakheel Mall contract was awarded to United Engineering Construction (Unec) and Actco General Contracting Company, a report in the Gulf News said. Work is expected to start soon.

Nakheel Mall will be constructed by selected business partners — New Mall Limited — through a build, operate and transfer mechanism, according to a company statement. Nakheel will manage the project until the transfer date, it said.

The mall will cover an area of 418,000 sq m. It will have five retail levels with more than 100,000 sq m of shop space. Nearly half of available leasing space in the mall is already booked, it said.

Nakheel is also expected to award the construction contract for The Palm Tower, a hotel and residential complex, soon, it said.