Building along the lines

The metro has the potential to raise the value of land, in areas of the country that have, until now, been written off as

Are future infrastructure projects dependent on the success of the metro?

After years of research, months of road works and much fanfare, the doors of Dubai Metro stations – ten of them, at least – have finally opened.

The implications are clear: quick, affordable transport. But will Dubai Metro succeed in being the save-all stimulant to an industry on which many hats have been hung?

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Dubai’s Roads and Transport Authority (RTA) has estimated that the Metro alone will drum up US $4.6 billion (AED16.9 billion) over the next ten years through fares, advertising, retail and sponsorship.

An economist at Dubai International Financial Centre (DIFC), Fabio Scacciavillani, believes the total financial boost could be in the region of $7.6 billion over the next five years.

“Public spending on infrastructure produces positive economic returns. Higher endowment of infrastructure boosts the aggregate return on private sector capital investments,” he said, adding that the Metro could also save up to $1.4 billion a year in lost work hours.

But what does that mean for real estate and further infrastructure developments?

“It took some 30,000 workers, five big contractors and 150 other contractors to complete and make it possible to launch the project on schedule,” said RTA chairman and executive director Matter Al Tayer.

With 19 more stations to be completed on the Red Line by February, and the Green Line following in June 2010, clearly many contractors will remain in the service of Dubai’s mass transport system.

Developers too will continue to be involved; Nakheel Harbour and Towers Station has already opened and other Nakheel stations are to follow.

Emaar will provide financing for the Burj Dubai Metro station, while many other developers, such as the Majid Al Futtaim Group and Limitless, will fund stations and roads to link their projects with the Metro.

“We’re sure Dubai Metro will be a big hit with travellers. We’re looking forward to the opening of the Jafza/Limitless station at Downtown Jebel Ali in early 2010,” said Limitless corporate media relations manager Rebecca Rees. Limitless is far from alone in these positive feelings towards the Dubai Metro project.

“We welcome Dubai Metro at Nakheel, as many of our communities are linked to the system, providing them with easy and convenient access to the rest of Dubai,” said a company spokesperson.

“Dubai has always been at the helm of positive change and such an achievement should contribute to the growth of the city as a tourism and business capital that is on par with any major global city. The availability of a reliable and strong mass transport system is a must for any major city and Dubai realised this, ensuring it delivered a strong solution.”