Abu Dhabi's positive view for construction

Conrad Egbert, Editor.

A few years ago when the regional construction industry was peaking, a favourite tea-time convo was, “when would the bubble burst?”

That has been replaced since – with “when will the crisis be over?”

If what’s happening in Abu Dhabi is, in any way, an indication of things to come, then it looks like the financial crisis is indeed beginning to wane.

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Last week, HH Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi, officially launched the construction of the Louvre Abu Dhabi with French president Nicolas Sarkozy by his side.

The museum, scheduled for completion in late 2012, early 2013, is located on Saadiyat Island and will loan works from the Louvre and other French museums. And if it’s to be ready by then, construction clearly has to begin right about now.

Development of other areas in the wider Abu Dhabi region, which weren’t necessarily seen as lucrative earlier, are now being looked at with interest.

In November last year, the Abu Dhabi government renamed what was previously known as the ‘Western Region’, Al Gharbia. Since then, this area that makes up 71% of the UAE seems to be the new catchphrase on everyone’s lips, especially with Plan Al Gharbia 2030 in the works.

Around $27 billion of investments have already been announced for infrastructure, tourism, and economic development projects in the region. All that is known so far, is that it will be made up of seven main cities and will border Saudi Arabia and Qatar.

On a smaller scale but a much quicker pace, is the UAE’s “garden city”, Al Ain, which is already full-steam ahead and is looking to begin projects as early as this year. Just last week, Abu Dhabi-based International Capital Trading said it was looking to invite bids for its $136 million Al Ain Oasis project in the fourth quarter of this year.

Also, a sound indication of things looking up is that the industry is beginning to hire again. Gulf Technical Construction Company has said it is looking to employ 2000 new staff, including 200 senior positions and 1800 blue collared positions. The company was also awarded a US $109 million (AED400 million) contract last week for Mangrove Place on Abu Dhabi’s Al Reem Island.

And there we have it: contract awards, new recruits and more project announcements. Could it truly be over? We’ll soon see.