The value of new projects launched in Abu Dhabi in the first quarter of 2008 has exceeded billions of dirhams highlighting the “unprecedented” level of development in the capital, Emirates Business can reveal.
The latest report by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) said the value of projects announced in the emirate since January this year amounts to some Dh768bn. “The projects reflect the unprecedented revival witnessed by Abu Dhabi in fields of infrastructure, real estate, residential, tourist, hotel, industrial, health or service projects,” the report said.
The report, issued by the ADCCI’s Information and Decision Making Support Centre, said the value of infrastructure and real estate projects to be executed over the next five years is expected to reach Dh200bn.
The Director-General of Abu Dhabi Urban Planning Council Falah Al Ahbabi said Abu Dhabi Government will shoulder 40 per cent of the value of projects while the remaining 60 per cent will come from the private sector.
The first of the projects under way is the Shahama-Saadiyat road. The 10-kilometre stretch, built at a cost of Dh1.4bn, has 10 lanes and will be completed in August.
Aldar Properties and the Abu Dhabi Tourism Development and Investment Company (ADTDIC) are supervising the project. Other infrastructure projects include plans to develop and improve Al Salam Street of Abu Dhabi at a total cost of Dh3bn to Dh5bn.
Work is under way on flyover junctions in addition to an underpass and a tunnel with a length of about three kilometres. Al Salam street will have four lanes in each direction.
And the ADTDIC is holding talks with Gulf Leighton of Australia to build a tunnel linking Abu Dhabi Island with Al Hudeiriyat Island.
The Abu Dhabi Government has also earmarked Dh4bn to develop Al Ain where several projects will be undertaken. They include highways, government buildings, service facilities as well as the expansion of the building of the Higher Colleges of Technology.
The old reservoirs will be demolished and replaced with 30 reservoirs with a capacity of some two million gallons. Part of the current network will be rehabilitated. And the project will be executed in two phases.
Hill International has also won a contract to manage the national towers project on Abu Dhabi Corniche. The Dh2.4bn project includes a 65-floor hotel and a 52-floor residential tower. The project is built over an area of 300,000 square metres.
The report also revealed that the National Investment and Property Management Establishment (Nipme) will this year launch Dh5bn worth of projects focusing on the tourism and commercial sector in Abu Dhabi.
These include the pact signed by the Nipme with the Rotana Hotel Group to manage a new hotel worth Dh400m in Abu Dhabi Marina. The hotel will have 600 rooms and will be completed within three years.
The projects also aim to create more industry in the emirate including the building of steel, glass and aluminium factories.
New oil and gas sector projects have also been initiated. German and Indian firms have won $2bn contracts to build the Abu Dhabi Crude Oil Pipeline. The report also spoke of two labour cities to be built by Aldar Properties in Abu Dhabi and Al Ain. The cities, to be completed in 2010, will accommodate 150,000 workers.
The firm also launched Phase one of the integrated residential complex for staff working at Bani Yas Island at a cost of Dh260m. Mubadala Development and Cleveland Clinic, in late January, announced the building of a hospital in Abu Dhabi with a capacity of 490 beds. It will be completed in early 2011.
There have been a number of projects launched in Abu Dhabi this year.
- Work has started on a new aluminum and glass factory worth Dh80m at Abu Dhabi Industrial City. The Belgian Aluminum and Glass Company, which owns the plant has announced an agreement with Alcoa to benefit from its experience to meet the needs of the local real estate market. The plant will have a production capacity of 360,000 square metres a year.
- A $1.14m contract has been awarded to build a plant for green diesel in Al Ruwais for the Abu Dhabi Oil Refining Company. The contract covers the building of a hydraulic cracking unit with a daily capacity of 37,000 barrels and a second sulphur cracking unit with a capacity of 42,000 barrels a day.
- The Abu Dhabi Crude Oil Pipeline contract has been awarded to three German and Indian companies at a total cost of Dh1.7bn. The companies will deliver the first shipments of pipelines in July, and the process will be completed in January 2009.
- Abu Dhabi Basic Industries Corporation is in talks with Danieli on the expansion of its steel plant in Musaffah, a project worth $1bn. The contract is expected to be awarded in the next few days.
- The National Investment and Property Management Establishment has launched more than Dh5bn worth of projects in the tourism and leisure sector
- The ADCCI report said Al Habtoor Engineering won a Dh1.3bn contract to build a 40-floor hotel, a 19-floor residential tower and a second 18-floor office building in Abu Dhabi. The total area of the project is 240,000 square metres, and phase one is expected to be completed in December 2009, with phase two finishing in July 2010
- Aldar will build a Crowne Plaza Hotel with 430 rooms and hotel apartments as well as the first Staybridge Hotel in Abu Dhabi, which will have 165 suites on Bani Yas Island. The two hotels will be built near the Formula 1 motor racing track, half way between the golf course and entertainment parks. The hotels are expected to be opened next year
- Aldar has also announced the building of a third hotel at Al Raha Beach, with 300 rooms and suites. The hotel will open in 2010
- Aldar Properties has also signed an agreement with Zabeel Investments to build the golf course at Bani Yas Island over an area of 910,000 square metres at a total cost of Dh3.5bn. Work on the course is to start in May
- The ADCCI report said work has started on Damac Properties’ tower, the 24-floor Marina Bay, at Abu Dhabi Star project on Al Reem Island. The tower overlooks the sea. The $500m tower will have retail shops, offices and luxury flats
Dh768bn Abu Dhabi projects so far in 2008