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Abu Dhabi set for a facelift
Project spending in Abu Dhabi, which occupies 85 per cent of the UAE's land mass, is expected to cross Dh1.2 trillion ($327 billion) in the coming years, according to a study by the Abu Dhabi Chamber of Commerce and Industry.
- WAM
- Published: 23:55 October 17, 2007
Abu Dhabi: Project spending in Abu Dhabi, which occupies 85 per cent of the UAE's land mass, is expected to cross Dh1.2 trillion ($327 billion) in the coming years, according to a study by the Abu Dhabi Chamber of Commerce and Industry.
The construction sector will take the major share of this investment, absorbing more than Dh850 billion ($230 billion), a far different figure from that forecast earlier by the Construction Planning Council, which put it between Dh500 billion and Dh600 billion.
Abu Dhabi is in the early stage of a massive development programme that will transform the emirate into a vibrant destination.
The government has begun implementing a strong economic reform programme that opens its real estate market for foreigners. As a result, developers have began pumping large sums into projects, and some are in various stages of development.
The government is spending $6.8 billion in airport development while a similar amount is being spent on grooming the UAE national carrier, Etihad Airways, which will carry a large number of tourists to the city in the coming years.
The chamber's study reiterated that the construction sector will continue to position itself at the forefront of all economic activities in the emirate in the years to come.
Steady surge
Both the growth rate and the volume of investment in this vital sector will record a steady surge. A number of vital projects and most modern townships planned will attract investors and tourists from around the world to the safe haven of the emirate, the study said.
The study also pointed out that the growth rate witnessed by the construction sector is not a matter of chance, but an outcome of the well studied plans and policies adopted in the emirate. The construction sector has ensured an unfailing return of 12 per cent, and up to 20 per cent in some cases.
The study also predicted that total production in this sector will reach the equivalent of Dh46 billion and the number of workers will exceed 237,000 by the end of this year.
It also warned the government to avert any possible recession in this vital sector by way of enacting controls on prices of building materials, which have risen 100 per cent in certain cases.
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