$1 trillion: Wealth estimate of assets UAE has built

UAE’s built asset wealth, currently standing at $1 trillion, is likely to grow by two per cent over the coming decade to $1.69 trillion, according to EC Harris.

The increase will move the UAE up two places from the 25th position to the 23rd position by 2022 in the Global Built Asset Wealth Index, an alternative indicator of economic health and prospects for growth.

The index quantifies the accumulated wealth of 30 countries’ built assets and takes into account the value of all the public and private property and infrastructure in a country - all of its residential and commercial office space, its transport infrastructure such as roads and rail, airports, power plants, water networks and so on.

The total built asset wealth in the 30 countries, which the index compares, stands at $193 trillion, equivalent to almost three times the $68 trillion gross domestic product of the same countries.

When it comes to built asset wealth per person, the UAE is 12th in the global rankings, with an estimated built asset wealth of $122,809 per person.

According to the index, built asset wealth per person grew by 1.7 per cent between 2011 and 2012, the12th fastest rate of growth in the global rankings.

Besides, the UAE is expected to experience higher levels of growth in built asset wealth per person than any other country, with seven per cent growth predicted over the coming years.

Singapore has the wealthiest population in terms of built assets, estimated at $156,000 while India and China have less than $40,000 built assets per person.

Terry Tommason, Head of Property and Social Infrastructure, Middle East, EC Harris, states : “The relative size of the UAE economy means that, on the global stage at least, the total value of the UAE’s built assets is relatively low.

“However, the UAE asset base is super-concentrated and the projected growth is set to out-pace many of its rivals.

“In a world where the balance of economic power is shifting, we see countries in the East with large cash reserves investing in their built environment at an unprecedented rate, whereas countries in the West have an ageing built environment, but little cash to update it.

“This has far-reaching consequences for the balance of both economic and political power as emerging economies continue to bridge the gap in accumulated wealth.”

According to the index, the Middle East, Africa and Asia will witness the fastest growth over the next decade.

The stock of built assets across the Middle East and Africa may increase by 63 per cent to $8.7 trillion by 2022, while Asia’s built asset stock will grow to $137.4 trillion, rising 62.9 per cent, from $84 trillion.

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