Abu Dhabi to invest Dh240 billion to expand infrastructure and livability programmes

Abu Dhabi: Abu Dhabi plans to double its population capacity under a new 2040 urban plan, backed by more than Dh240 billion in infrastructure projects aimed at sustaining economic growth and improving quality of life, according to Mohamed Ali Al Shorafa, Chairman of the Department of Municipalities and Transport and Etihad Rail.

Speaking at Abu Dhabi Finance Week 2025, Al Shorafa said the government expects to invest more than Dh240 billion in infrastructure over the next seven to ten years, spanning housing, transportation, healthcare, and education. “A lot of people think infrastructure is construction. But when you look at infrastructure, it touches a lot of different economic sectors,” he said, adding that spending on these assets “generates an economic cycle across hospitality, healthcare, education, construction, and transportation.”

Al Shorafa underlined the role of the private sector in this expansion. “This cannot be done only by the government developer. That’s why we are involving the private sector in many programs, because the more infrastructure is there, the more we can generate economic sustainability, growth, and increase our resident exposure to Abu Dhabi.”

Livable and lovable: the next strategy

Beyond physical investments, Abu Dhabi is refining how urban growth affects quality of life. “We developed a new strategy for livable and lovable,” Al Shorafa said. “It’s not only the physical assets, but also non-physical aspects and the quality of those assets and how they contribute to nationals and residents.”

He pointed to the emirate’s “livability program,” launched a year and a half ago with 140 indicators across sectors including education, public spaces, and healthcare access. “At the beginning of 2026, we are producing our 2.0 program. It will include 120 different components of quality of services related to our infrastructure, from education to cycling tracks to accessibility to healthcare and social services.”

Smart City initiatives and autonomous transport

Abu Dhabi’s Smart City program, launched two and a half years ago, has introduced technologies such as autonomous vehicles on city roads. “We’ve moved up five positions to become fifth in the IMD Smart City Index,” Al Shorafa said. “This tells you that our leadership’s north star has already been implemented and is being developed.”

He said the city’s transport systems now use artificial intelligence for data analytics and planning. “We are using AI in our urban planning, identifying where the right development zones should be, and what transportation or utilities are needed,” he said. “The faster we can introduce AI into policymaking, the easier life becomes. The reflection is on the people living here.”

Attracting global investors and long-term capital

Al Shorafa said investor confidence in Abu Dhabi’s infrastructure and real estate sectors has risen sharply, with growing interest from international pension funds and private equity firms. “We’ve been seeing a lot of interest from private equity companies and pension funds that see Abu Dhabi as a great opportunity for long-term returns,” he said. “They understand the credibility of the Abu Dhabi government and that we are developing what is needed for the future, not only what’s needed now.”

Strong demand has also driven up property values. “Prices are coming up, and we see a lot of attraction from international real estate development companies, not only UAE nationals,” he said. “This tells you there’s a lot of interest from people moving their families, businesses, and even planning retirement in Abu Dhabi.”

Infrastructure as a driver of diversification

Al Shorafa said infrastructure investment continued to underpin the UAE’s diversification goals by stimulating construction, manufacturing, and transportation. “We see a lot of manufacturing companies setting up in Abu Dhabi because of the magnitude of infrastructure projects that are coming,” he said. “The transportation sector is becoming a very important contributor to GDP, especially with new infrastructure projects coming online.”

He credited Abu Dhabi’s coordinated investment ecosystem for the pace of development. “It’s very important that we are all working together to attract investors that can add value. It’s not only about the money, it’s about adding value to what we are trying to do.”