Abu Dhabi makeover on course

Abu Dhabi: Despite the current global financial crisis, a majority of Abu Dhabi's real estate and infrastructure projects are going ahead, with developers and government entities pumping in billions of dirhams to create an ultra-modern city conforming to global living standards, industry experts and government officials say.

With massive investments in the industrial, tourism, civil aviation and real estate sectors, Abu Dhabi city and its surrounding areas are all set to get a complete makeover by 2015.

The aim is to become a top holiday and residential destination of choice, patronised by affluent holidaymakers and top-notch professionals from around the world.

Real estate investment advisory firm Jones Lang LaSalle's managing director of Middle East and North Africa (Mena) region Blair Hagkull told Gulf News that Abu Dhabi is among the best positioned cities in the world for large projects to be realised because of the strength of its government's vision and ability to think long term.

"The global economic situation has forced many countries and companies to think short-term and make tactical decisions at the expense of strategic long-term initiatives," said Hagkull. "Abu Dhabi is well positioned to weather the storm," he added.

According to Falah Al Ahbabi, general manager of the Abu Dhabi Urban Planning Council (UPC), some $200 billion (Dh734 billion) will be pumped in by 2013 into various infrastructure projects in the emirate.

The government's share will be 40 per cent and the rest will come from the private sector. To boost its non-oil income and as part of its diversification strategy the capital of the UAE is looking to cash in on its extensive natural bounty.

Abundant sunshine, desert safaris, pristine beaches, multiple options for shopaholics and exceptionally good law and order make Abu Dhabi an irresistible holiday option for high net worth visitors.

"Tourism is a critical element in the overall development of Abu Dhabi. It will stimulate and diversify the economy, generate new private sector opportunities and elevate the Emirate's international standing," the Executive Council of Abu Dhabi says in its policy agenda. There will be more than 26,000 hotel rooms in Abu Dhabi by 2012 and business tourism is a key focus of the emirate's tourism strategy, the chairman of the Abu Dhabi Tourism Authority, Shaikh Sultan Bin Tahnoun Al Nahyan, said recently.

ADTA has a five-year strategic plan under which it hopes to attract 2.7 million hotel guests a year by 2012. The emirate has about 12,000 hotel rooms at the moment.

Abu Dhabi got a big boost as an emerging global tourist destination last year when the UK's largest online travel agent, expedia.co.uk, selected the emirate as one of the world's top 10 destinations to visit that year.

The UAE's national airline Etihad Airways is aiming to fly 25 million passengers a year by 2020 and expand its network to up to 100 business and leisure destinations.

Etihad flew six million passengers last year and the airline currently flies on 50 routes, which include destinations in the Middle East, Europe, North America, Africa and Asia.

The appeal of Abu Dhabi will be further enhanced with the creation of world-class residential and entertainment facilities and the arrival of several globally-recognised hotel brands, a plan on which both the city's property developers and urban planners are working hand in hand.

Abu Dhabi-based real estate developer Aldar Properties PJSC's development projects across the portfolio exceed $72 billion.

They include hotel projects, residential projects, shopping centres and a Ferrari theme park on Yas Island which will have a Formula 1 track ready before the first Formula 1 race in Abu Dhabi later this year.

In addition, a Warner Bros theme park in collaboration with Hollywood film producer Warner Bros Entertainment will be built by Aldar. Sorouh Real Estate PJSC is also developing residential, commercial and hotel projects with a missionary zeal.

It has announced to date projects which are cumulatively worth more than Dh50 billion and they will be completed by 2013.

Some of the other major property developers such as Al Qudra, Hydra Properties and Damac are executing ambitious residential and mixed-use developments within the emirate.

Abu Dhabi-based Capitala unveiled its $6 billion development Arzanah during the last Cityscape in Abu Dhabi in May 2008. The project is scheduled for completion in 2015.

The Tourism Development and Investment Company (TDIC), which manages the development of real estate assets held by the Abu Dhabi government, is investing Dh40 billion on its own and sub-contractors Dh60 billion in the development of Saadiyat island, a project scheduled to be completed by 2018.

To further improve connectivity, a 10-lane Shahama-Saadiyat highway linking the Shahama-Dubai-Abu Dhabi road to Abu Dhabi city is being built at an estimated cost of Dh5.43 billion.

In addition, Abu Dhabi Industrial Cities (ICAD-I, II, III) developed by ZonesCorp, have attracted investments of more than Dh30 billion from local and foreign companies.

Dredging and reclamation is currently underway at Khalifa seaport in Taweelah for which Dh5.5 billion is to be spent. The first phase of Khalifa seaport will become operational in mid-2012.

Looking ahead, the government of Abu Dhabi plans to spend Dh2.5 billion on building high-quality housing to accommodate up to 180,000 workers, which will take care to a large extent of the shelter problems faced by the low income earners in the emirate. Aldar is also building world-class labour accommodation in Musaffah.