Abu Dhabi: With projects worth billions of dollars under execution and development, Abu Dhabi is going full steam ahead to build a modern global city that would create new infrastructure and create wealth to sustain its future generations, experts say.
The emirate has been in the midst of a construction boom, especially over the last decade which has helped diversify its economy.
While doing so, Abu Dhabi has been able to buck the global economic slowdown as it channelled its vast pool of oil income surplus to build physical assets at home.
As the UAE turns 40, Abu Dhabi can look back with pride on what it has achieved.
Skyscrapers which dot the city's landscape today were non-existent 40 years ago. Old timers recall that before the emirate started exporting oil in the 1960s ordinary people lived in tents and makeshift houses made of sun-dried palm leaves.
"In the 1950s and early 1960s, the affluent people lived in houses made of mud, stone and wood in Abu Dhabi. In the 1970s, small buildings no more than three to five storeys were built," recallsEmirati Abdullah Rashid Al Hammadi.
New jobs
"The second generation of buildings came up during the 1980s. These were up to 12 floors. Starting in the mid-1990s, buildings of more than 25 storeys started being built in Abu Dhabi, a trend which has continued to this day," he added.
By creating new jobs and attracting talent and expertise from around the world, Abu Dhabi is the engine of sustainable long-term economic growth in the region, one that promises to provide one of the highest standards of living in the world for a large number of its residents.
Add to this high safety and security of life and property, tax haven status and ideal business climate and you have a perfect place for high net worth expatriates.
"The big ticket projects cumulatively run to hundreds of billions of dollars," said Giyas Gokkent, chief economist at the National Bank of Abu Dhabi.
"The common thread in these is to exploit Abu Dhabi‘s comparative advantage whether in energy endowments or plenty of sun in the case of the hospitality sector. Iconic projects will create positive externalities and put Abu Dhabi on the map as a destination."
David Dudley, regional director and head of the Abu Dhabi office for Jones Lang LaSalle, a global property advisory firm, said Abu Dhabi has made a massive commitment to developing a world class city and remains committed to this long-term vision.
"The 2030 urban plan, supported by the transport master plan, remains a visionary response to set the route-map for future city development," Dudley said.
"In parallel, the Economic Vision sets the long-term strategy to diversify the economy from reliance on oil to new high growth sectors. Challenges remain in the short-term due to a reduction in demand and rising supply, however the government has reacted positively by consolidating projects and re-prioritising strategic investment," he added.
"Medium-term prospects remain extremely positive, driven by the government's vision and commitment to invest in city building and econ-omic development, supported by the abundance of private and sovereign wealth," Dudley said.
Railway
To further strengthen the UAE's transportation network, Union Railway is set to construct 1,200km of railway routes in the nationwide project valued at Dh40 billion to be completed by 2018.
The rail network will carry freight as well as passengers and will connect the emirates and link the UAE to Saudi Arabia via Ghweifat in the west and to Oman via Al Ain in the east. The project will be completed in three phases.
Phase I of the project incorporates the Shah-Habshan-Ruwais route — with the link between Habshan and Ruwais scheduled to be completed in early 2013 and that between Shah and Habshan by the end of 2014.
Phase II involves the construction of the remainder of the Abu Dhabi Emirate Network and a connection to Dubai — covering vital areas such as Mussaffah and the Khalifa and Jebel Ali ports.
The third phase entails the implementation of the rest of the network in Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain.
In addition, the emirate has identified aviation and high-end business and leisure tourism as key elements in its econ-omic growth strategy.
It's reaching out to the world through its fast-expanding airline Etihad Airways and continues to build tourist attractions such as golf courses, museums and malls, the global financial crisis notwithstanding.
Towards this end, Abu Dhabi has completed a Formula One race track and a Ferrari theme park on Yas Island, which are proving to be major tourist magnets.
The Louvre Abu Dhabi and the Zayed National Museum on the Saadiyat Island, as well as the Guggenheim Museum, construction have been delayed.
A Warner Bros theme park in collaboration with the Hollywood film studio is also in the pipeline.
There will be more than 26,000 hotel rooms in Abu Dhabi by 2012.
The Abu Dhabi Tourism Authority (ADTA) drew up a five-year strategic plan under which it aims to attract 2.7 million hotel guests a year by 2012.