The contract was awarded by property giant Nakheel and is phase one of the Al Furjan project, which will provide over 4,000 homes in four communities.
Work will deliver roads, sewage, power, water and lighting. Interserve’s share of the revenue will be £65 million.
Chief executive Adrian Ringrose said: "This is a significant contract for us and demonstrates the continued vibrancy of the construction market in the region. We are proud top be working with a developer of Nakheel’s stature on such an exciting project."