UAE's infra pipeline grows by $100m in four months
HSBC report identifies project spending as a key growth platform
The UAE has witnessed a $100bn increase in its project pipeline since between early November and early March last year - a 20% jump in the total, according to HSBC.
The bank's latest Middle East Quarterly report shows that infrastructure development was one of a number of key factors which drove growth in the country last year.
"Dubai led the way in 2012, driven by its core sectors of trade, tourism and services - all of which continue to benefit from the emirate’s high quality infrastructure and “safe haven” status in the wake of the Arab Spring.
"Hotel occupancy figures for the first ten months of the year put Dubai highest in the region, while traditional tourism hubs Bahrain and Egypt have dropped to the bottom.
"However, prospects for Abu Dhabi are also looking stronger: after three years of relative caution, we are looking for a pick-up in (primarily public sector) capital spending in 2013. The emirate has announced tenders for a rail link to Dubai, a planned expansion of Abu Dhabi airport, and a major healthcare project – Sheikh Khalifa Medical City – in recent weeks."
The bank added that having lagged the recovery experienced in other parts of the Gulf during 2012, the UAE "will join the ranks of its outperformers" in 2013.