This paper presents the challenges faced during micro-tunnelling process in Emirates of Dubai. In permeable grounds, the loss of slurry increases the cutter head torque and reduces penetration rates. Overcut is formed to provide space for converging ground and enables the evenly circulation of lubricant flow on the pipe line, as such buoyancy effects of fluid lubrication act on the pipe to lessen the drag during jacking. Micro-tunnelling techniques are used to reduce penetration resistance within the pipe string by providing sufficient uniform overcut and continuously injecting polymer lubricants. It is also observed that as the Urban area in Dubai is surrounded by built structures and numerous underground services, a special consideration is required to protect these services especially DEWA ED Cables. Also, the high ground water table, fractures within the rock and proximity of creek makes things very difficult to reduce the water table level in launching / receiving Pit and have difficulties in breaking the hard ground within the Pit. At Wafi Interchange, proposed development for the extension of interchange had to be incorporated in the alignment and accordingly standard pipe fittings to be introduced in the alignment. There are services towards Sheikh Butti palace (launching pit side) and on the other side (receiving pit). Ongoing construction of Al Jaliliya children’s hospital requires close coordination and safety related issues to be addressed prior to mobilization of heavy equipment at the proposed micro-tunnelling area. The receiving pit at Emarat petrol pump was also critical and special approval from RTA is required to close one lane at the heavy traffic along the service road, parallel to sheikh Rashid road. The removal of ground water was another challenge because near Sheikh Butti palace the drainage network was not completed and hence special arrangement was to be made to discharge the water near the creek, for which DM environment approval are to be sought.