$563bn worth of construction projects in Abu Dhabi
Despite 2010 slowdown, Abu Dhabi sees $36bn worth of fresh contracts
As the regional economy continues on the cautiously optimistic path to recovery, Abu Dhabi is shining as one of the brightest stars in the Middle East’s construction industry, with contracts awarded in the energy, infrastructure and buildings sectors increasing.
Recent figures gathered by Ventures Middle East show that, amid the economic slowdown in 2010, the construction industry in Abu Dhabi witnessed fresh contracts awarded valued at $35.5 billion, 66% of the value of all contracts awarded in the UAE for 2010.
The expected value of construction contracts to be awarded in 2011 will reach $39.8billion, an increase of 12% from 2010. The total value of all construction projects in Abu Dhabi is currently calculated at $562.8billion.
The latest figures come as the UAE capital is set to host the second edition of CityBuild Abu Dhabi, taking place from 17-20 April 2011 at Abu Dhabi National Exhibition Centre.
By sector, buildings contributes $304.4billion to the total value of construction projects in Abu Dhabi, energy (oil and gas, petrochemicals and power & water projects) adds $129billion, and projects in infrastructure (roads, bridges, rail, sewerage, wastewater and marine projects) account forS$129.3billion.
“Despite the global recession, Abu Dhabi has continued along a sustained path of development in its infrastructure and economic diversification,” said 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,” said Speller.
With the population of Abu Dhabi expected to grow to between three and five million by 2030, the government has earmarked $15billion on expansion of infrastructure projects between 2009 and 2012, to meet the demand for water, power and sewage provision across the emirate.
Additionally, the government’s focus on developing its tourism sector, along with the Department of Transport’s $68billion 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.
CityBuild Abu Dhabi will once again be co-located with Cityscape Abu Dhabi and, for the first time, Malaysia Services Exhibition. The event will be held 17 to 20 April.