China Harbour Engineering Company has secured AED150m ($41m) contract for marine and infrastructure works at AED1bn ($272m) Al Hamra's Falcon Island project in Ras Al Khaimah, UAE.
As part of the work, expected to commence in March, China Harbour will develop Venice-like canal and private beaches.
Work is due for completion by October 2016.
Designed to house the first LEED Platinum Certified real estate, Falcon Island will feature 150 villas and mansions.
Al Hamra real estate general manager Benoy Kurien described the central canal as a 'little piece of Venice in the Middle East'.
Kurien said: "This is the lifestyle that we are creating at Falcon Island: a retreat from the fast pace of the big cities, a place where families can enjoy some of the finer things in life and establish the perfect balance between elegance and sustainability."
To be developed as part of the marine and infrastructure contract, the canal will split the island into two.
The island will be completely powered by solar technologies and would be integrated with hybrid district cooling systems, which provide temperature control at a fraction of conventional costs.
Smart technologies will also be installed as standard, allowing residents to assume control over energy consumption and home automation.
China Harbour Engineering Company general manager Li Guowei said: "Through these developments we've demonstrated our ability to work to the highest standards and specifications, and we are delighted to be taking charge of the marine and infrastructure works at Falcon Island."
Image: Falcon Island will feature 150 villas and mansions, complete with European architecture and interiors. Photo: courtesy of Falcon Island.