UAE to award $20bn transport projects
Dubai, March 19, 2014
More than $20 billion worth of transport projects will be awarded in the UAE this year, with Abu Dhabi alone accounting for projects worth $14 billion, said a report.
The rail sector will account for more than 60 per cent of the value of projects awarded even though it will be only 14 per cent of the number of contracts up for grabs, said a report from Meeds Projects.
Abu Dhabi will see as many as 31 projects with a total budget of nearly $14 billion, with Dubai coming in second place with 13 projects with a total budget of more than $2 billion, it said.
Julian Herbert, director of Meed Projects, said: “As a result of heavy investment in the construction sector during the boom years of the previous decade, the UAE is in a favourable position where it can secure resources at very competitive market rates compared to its GCC neighbours.”
The UAE reportedly pays less for materials such as cement, concrete and rebar than its GCC neighbours, according to a recently published online report by MEED Cost Indices.
“With ample capacity and low cost resources, the UAE is in an ideal position to invest in its transport infrastructure” Herbert said.
Major awards expected during the year include second phase of Etihad Rail; the remaining sectors of the Mafraq to Ghuweifat Highway; infrastructure works in Abu Dhabi; and infrastructure and new terminal work at the Maktoum International Airport.
Nearly $5 billion worth of contracts will be completed and handed over to their respective clients during the year, said the report.
Abu Dhabi has just over $2 billion contract due to be completed which includes lots 1 and 2 of Shamskha South Infrastructure Works with a combined contract value of more than $1 billion, while Dubai has $2.2 billion worth of contracts which includes the Al Sufouh tram project, the RTS’s parallel roads scheme 4, Emirates’ SkyCargo terminal at Maktoum International Airport and the terminal expansion project at Dubai International Airport. - TradeArabia News Service