Abu Dhabi to award $7b in contracts

Dubai: Abu Dhabi is expected to award $7 billion (Dh25 billion) worth of construction contracts this month, amidst the continuing progress of many developments which are attracting contractors and investors alike.

In addition to the government's focus on construction to address the requirement for built space, another factor driving construction activity is the emirate's aim to increase its foreign direct investment (FDI), which according to latest data hit approximately Dh31.5 billion in 2007.

Of this, real estate and rents account for the largest share at approximately Dh11.84 billion or 38 per cent of the total FDI.

On the back of the continuing stabilisation of construction material prices in the region, construction company Danube has opened three other branches in the UAE — in RAK, Fujairah and in Deira, Dubai, in addition to its retail store in Abu Dhabi.

"Demand is being driven primarily by the Abu Dhabi Government's consumption and its unwavering efforts to promote the emirate as a leading business and tourism hub via improvements in infrastructure and major construction projects," said Rizwan Sajan, Chairman of Danube Building Materials.

"Abu Dhabi has become a key market for us, given the astounding amount of construction activities in the emirate.

"We are expecting to generate excellent business amidst the positive projections directed towards this market, and with this in mind, we continue to invest in product and business development to further enhance our product range and services to exceed customer expectations," he added.