Abu Dhabi to award $40bn construction deals
Abu Dhabi, February 27, 2011
UAE capital Abu Dhabi is expected to award construction contracts worth $39.8 billion this year, an increase of 12 per cent compared to last year, according to a new report.
Ventures Middle East in its latest report pointed out that even as the regional economy continued on the cautiously optimistic path to recovery, Abu Dhabi had awarded contracts worth $562.8 billion in energy, infrastructure and buildings sectors.
Recent figures gathered by Ventures showed that, amid economic slowdown in 2010, the construction industry in Abu Dhabi witnessed fresh contracts awarded valued at $35.5 billion; 66 per cent of the value of contracts awarded in UAE for 2010.
The total value of all construction projects in the UAE capital is currently calculated at $562.8 billion, the report added.
The latest figures come as the UAE capital is set to host the second edition of CityBuild Abu Dhabi, taking place from April 17 to 20, at Abu Dhabi National Exhibition Centre.
By sector, buildings contributes $304.4 billion to the total value of construction projects in Abu Dhabi, energy (oil and gas, petrochemicals and power & water projects) adds $129 billion, and projects in infrastructure (roads, bridges, rail, sewerage, wastewater and marine projects) account for $129.3 billion, the report said.
“Despite the global recession, Abu Dhabi has continued along a sustained path of development in its infrastructure and economic diversification,” stated Chris Speller, group director of Cityscape and CityBuild Abu Dhabi.
“This has resulted in increased investment in the construction industry, and as we are witnessing, a positive growth in new project contracts being signed. CityBuild Abu Dhabi is the perfect platform for construction industry professionals to meet future contacts and grow their businesses.”
With the population of Abu Dhabi expected to grow to between three and five million by 2030, the government has earmarked $15 billion on expansion of infrastructure projects between 2009 and 2012, to meet demands of water, power and sewage facilities across the emirate.
Additionally, the government’s focus on developing its tourism sector, along with the Department of Transport’s $68 billion budget toward developing its share of building urban infrastructure, means that the outlook for the Abu Dhabi construction industry appears to remain sustainable for many years to come, he added.
CityBuild Abu Dhabi will once again be co-located with Cityscape Abu Dhabi and for the first time, Malaysia Services Exhibition.-TradeArabia News Service