Time for a comeback

The total value of projects under way in the UAE currently stands at around $1.15 trillion (Dh4.2 trillion) and Abu Dhabi alone accounts for $478 billion of that figure, says BNC Network, a UAE-based independent project tracker firm. “If we go further into detail, Abu Dhabi is home to approximately $125 billion worth of projects under construction,” says Ben D’Souza, Chief Operating Officer at BNC Network. Around 90 per cent of the UAE’s projects at the design stage are in Abu Dhabi, he adds.

“This is not surprising considering the developments outlined in the Abu Dhabi 2030 plan, which include proposed districts like North Wathba and the Capital City — Khalifa C as well as projects like the Al Jimi Revitalisation and Wasat Madinat. The plan also includes increased investment in infrastructure and hospitality,” he says.

“When we compare the construction figures in the UAE against the last quarter of 2011, we can see a growth of 3.1 per cent within projects that are currently in the design, tender and under construction stages. This is also due to the fact that certain projects, previously on hold, are coming back into the market. Moreover, we can expect to see greater positive growth in the UAE, especially, since the Executive Council of the emirate of Abu Dhabi approved of a number of new development projects across Abu Dhabi in January,” says D’Souza.

An official statement said that the Executive Council approved, among others, the budget for the Al Mafraq-Ghuwaifat road, a new Abu Dhabi-Dubai road and a study for the design of Abu Dhabi metro and tram projects, in the transport sector.

Other approved projects include the development of new terminal facilities at Abu Dhabi International Airport, the establishment of 14 new health-care facilities, all the projects submitted by the Abu Dhabi Education Council (Adec) and the construction and development of new industrial zones. The Executive Council also approved the budget for infrastructure works at Khalifa Industrial Zone Abu Dhabi (Kizad), the redesign and construction of the new Al Ain National Museum, the Shams solar plant and the new museums being developed by the Tourism Development and Investment Company (TDIC) in the Cultural District of Saadiyat Island.

“Clients in Abu Dhabi are clear on their needs. Again, with cost as a driver, Abu Dhabi is looking at the feasibility of projects from the inception and making sure that the building works in terms of the investment,” says Ammar Al Assam, Executive Director at Dewan Architects, a leading architectural and engineering consulting firm. “Design-wise, the emirate has always been a contemporary and cutting-edge city — be it schools, office buildings, headquarter offices, government buildings, malls, theme parks or museums. It has also become a sustainable city in terms of design — architects and clients have to work jointly to source the right materials, look at recycling and address various criteria outlined by Estidama, in line with the Urban Planning Council’s guidelines.” He adds that the Abu Dhabi and Dubai markets are offering potential work for the practice in 2012 and it will soon finalise an office in Qatar.

Agrees Riad Kamal, Chief Executive Officer at Arabtec Holding. “I am very optimistic about the market in 2012 — it will see a fruition of a large number of projects. We are waiting for a decision on the Abu Dhabi Airport Midfield Terminal Building, the Four Seasons Hotel project, the Al Ain Hospital and National Housing project. There will be a lot of infrastructure work starting on Reem Island and Sowwah, since buildings are advancing into the completion stage. While certain projects have been put on the back-burner, Abu Dhabi is seeing work continue on the rail project, roadworks, tunnels and sewers sectors,  and expansion plans for Emirates Aluminium (Emal) and Abu Dhabi’s steel industries. There is plenty of work that will come up and we are optimistic about the Abu Dhabi market in 2012,” says Kamal.

Despite a challenging 2011, Guy Mehula, President of Parsons Middle East & North Africa also agreed that the recent announcements by the Executive Council have brought a positive feel to the market. “We were awarded the Yas Island Design Services for Infrastructure and marine works for Zone K Garden Crescent in January and were appointed as design sub-consultant by Zublin who were awarded two major link sewer contracts by the Abu Dhabi Sewerage Services Company (ADSSC),” says Mehula, who adds that Parsons is working on 100 active projects across the GCC.

Parsons is working very closely with the Ministry of Housing in Saudi Arabia across 11 developments wherein it will be responsible for master planning, neighbourhood planning, infrastructure design and the design of various housing types. “Our challenge in 2012 is to support contractors and to make sure that we have got the resources aligned to support their vision for continuing to build the infrastructure for Abu Dhabi.”

Similarly, Drake and Scull International (DSI) is also very optimistic about Abu Dhabi, according to Zeina Tabari, its Chief Corporate Affairs Officer. “We are tendering for a lot of projects and we are very optimistic about Abu Dhabi in 2012. We also hear that there are some new projects in Dubai, Ras Al Khaimah and Fujairah. As for the rest of the GCC, things are going good in Saudi Arabia. We do expect to see a lot more work in Qatar, but by 2013.”

While 2011 was slow for the industry as a whole, Phillipe Dessoy, General Manager of Six Construct, said that he hopes to see a more active 2012 and 2013. “We just reached Dh4 billion work turnover in the UAE and Qatar and are working on projects such as Cleveland Clinic, Yas Mall, Borouge Marine Terminal (Ruwais) and Das island civil works for gas processing facilities. In Dubai, our work on the tramway is progressing at a good pace. We are quite busy and we expect to do much more business in 2012,” adds Dessoy. Shoots of hope?