DUBAI, JANUARY 30 – The message being conveyed by a series of announcements from Abu Dhabi’s budgetary executive council, with its revival of projects in the country’s 2030 strategic plan, is of a greater emphasis on social provision and infrastructure development.

Masdar City

Launched in 2005, the 2030 Strategic Plan contains parallel development of various sectors – from town-planning to the environment, from culture to industry, all aiming at one single integrated objective: redesigning the city as one of the world’s most efficient, attractive and easy-to-live-in capitals, both for its citizens and for foreign visitors.

That city district-come-island, Saadiyat Island, which is to host the Guggenheim Museum and the Louvre museums (with opening confirmed for 2015), is one of the icon projects of the Emirati capital. Along with Masdar City, the city with a zero carbon footprint, it has grabbed most of the headlines in foreign media reports. But, in the words of Sultan Al Nahyan, Chair of Abu Dhabi’s tourism development association, this recommencement of work after the long break “not only signifies the creation of a cultural destination that will attract art lovers and tourists alike, but will also integrate art and culture in its daily life. It will train cultural experts and become a hub of job opportunities for the Emirates”.

The improvement to citizens’ quality of life will also come through the priorities being given to medium-term projects aimed at meeting their needs.

Over the coming five years, one hundred public sector schools are due to be either built from scratch or renovated (the current number is 286). The house-building programme boasts similar proportions, with 50,000 homes for the citizens of Abu Dhabi due to appear in the coming two decades. The North Wathba project alone will offer 13,000 building plots, with more than 7,500 detached homes due to be completed this year.

There is money in the pot for transport too, with the cutting edge project being the 131 km of underground line by 2017, a tramway system and a new Abu Dhabi-Dubai motorway. More info

Sener, the Spanish consultant company, confirmed on Tuesday that work on Abu Dhabi’s new transport system would begin shortly.

Sener says work on the Abu Dhabi tramline is expected to start shortly. (Shutterstock)

According to a news report by 7Days, the consultant said that work on phase one of the tram project will begin in the north of city, with a 30km route linking to the city centre.

The tram system will run on two lines that will cover a total distance of 300km, while linking downtown Abu Dhabi with Al Sowwah Island, site of Abu Dhabi’s new financial centre. More info

Abu Dhabi International Airport handled record passenger traffic in 2011, with volumes surging by +13.9% year-on-year to 12.4 million.

Midfield Terminal Building

Abu Dhabi Airports Company (ADAC) also reported a +10% rise in cargo traffic, bucking the general downward global trend in aviation last year.

During 2011, ADAC added new airlines such as Cathay Pacific, Virgin Australia, and Czech Airlines to its network. It also added eight destinations via new and existing airline partnerships, to Hong Kong, Prague, Seychelles, Male, Duesseldorf, Bangalore, Chengdu and Aleppo. The scheduled charter market also saw growth, especially with the launch of MSC cruises out of Abu Dhabi and new hotel offers in the city.

ADAC Chief Executive Officer James Bennett said: “The continuous increase of Abu Dhabi International Airport’s passenger traffic shows a true reflection of the growth that the Emirate is witnessing in trade, industry and tourism, and illustrates the significant investment and vision by ADAC in creating a world class airport. In December, we welcomed over 1.147 million passengers, recording a +17.8% uplift in total passenger traffic. This made December the busiest month of the year for Abu Dhabi international Airport and the sixth consecutive month where we recorded more than a million passengers.”

He added: “ADAC is striving to become one of the top airport operators in the world by carrying out more improvements and developments at the airport. The completion of Terminal 1 this year was a great success, as it aimed at delivering the best services to travellers in speed, efficiency, comfort and satisfaction.”

Etihad Airways continues to play a key role in the growth of Abu Dhabi International Airport. As a result of Etihad’s new aircraft and new destinations served during 2011, scheduled passenger aircraft movements grew by +6.2%, totalling 90,281 movements, with Etihad recording 61.4% of the total aircraft traffic. More info

Jan. 24 (Bloomberg) — Abu Dhabi, the oil-rich sheikhdom that’s transforming itself into a business and cultural hub, plans to resume suspended real-estate projects including branches of the Louvre and Guggenheim museums after reviewing their viability, the government said.

Louvre and Guggenheim museum

The largest and wealthiest of United Arab Emirates’ seven sheikhdoms also approved new investments in housing, health and education, according to a statement posted on the Executive Council’s web site. No cost was given.

Abu Dhabi’s plans to revamp its economy ran into hurdles after the economic crisis caused home prices to drop by 45 percent and made neighboring Dubai the region’s worst-performing property market with a 65 percent price decline. At least $30 billion worth of projects were put on hold in Abu Dhabi while the government conducted the review.

“This can only be a positive, namely for the contractors that are established and active in Abu Dhabi,” said Mohammad Kamal, an Dubai-based analyst at Arqaam Capital. “It’s also a macroeconomic driver for growth, employment, spending and bank lending.”

Budgets and opening dates were approved for museum projects in the cultural district of Sadiyat Island, including the Zayed National Museum, and franchises of the Louvre and Guggenheim branches. Other projects include the construction and redesign of the Al Ain National Museum and the cultural Hilli site.

The Executive Council yesterday approved the building of 13,150 homes for U.A.E. citizens in North Al Wathba, it said. Another 7,608 villas are expected to be completed this year and delivered to the government, the statement said.

Schools, Airports

Other projects include 24 schools, 14 hospitals, six treatment centers and Abu Dhabi’s Cleveland Clinic. A 700,000 square-meter (7.5 million square-foot) extension of the airport will be completed in the fourth quarter of 2016. The new terminal will handle 27 million passengers a year, according to the statement. Infrastructure spending will include metro and tram systems, two major roads and industrial zones built to focus on petrochemicals, food and auto manufacturing. More info

ABU DHABI: The Abu Dhabi Executive Council has approved a number of new development projects for the Emirate in a meeting that was held on Monday.

Kizad

The Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of Executive Council of Abu Dhabi Sheikh Mohammed Bin Zayed Al Nahyan chaired the Executive Council meeting in the presence of Sheikh Hazza Bin Zayed Al Nahyan, National Security Adviser and Vice Chairman of the Executive Council.

The council gave approval for construction, renovation and infrastructure projects in Liwa, Ghayathi, Al Hayer, Al-Shuaib, Bida Al Mutawaa, Mazyed, Um Ghafa, Nema, Al Salamat Umm Alashtan and Alybanh.

Additional infrastructure projects will be implemented for a number of other residential districts in the north of Al Wathba, Al Falah, Mohamed bin Zayed, and Emirati neighbourhoods in metropolitan and other areas.

The North Wathba project is one of the largest residential projects to have been approved to date. It covers an area of 4,178 hectares, and on completion it will provide 13,150 new residential plots. The Abu Dhabi government will during the course of 2012 provide a total of 7,608 residential villas for its citizens.

The budget for infrastructure works for Khalifa Port and the development of Khalifa Industrial Zone (Kizad) was approved by the Executive Council. These investments reflect the growing importance of Khalifa Port to Abu Dhabi’s economy. The first operations are expected to commence on Sept. 1, 2012.

The Executive Council also approved projects to develop new terminal facilities at Abu Dhabi International Airport. The new terminal building has an area of 700,000 square metres and will be able to handle 27 million passengers a year. It is planned to be open in the fourth quarter of 2016.

There will be two new major road projects. The first is the Al Mafrag-Ghuwaifat road which connects the Emirate of Abu Dhabi with the neighbouring countries, and is considered to be one of the most important road development projects in the Emirate.

The project includes the development and expansion of the current road by 246 km and the building of 15 new overhead interchanges. This will enhance traffic flow, ensure the security and safety of the road users and keep pace with economic growth.

The second major project is the extension of the existing Emirates Road from Dubai to Abu Dhabi.

Provision has been made for the design of a metro and tram system to help reduce traffic congestion in the city of Abu Dhabi.

The Executive Council also approved construction and maintenance of drainage systems in Abu Dhabi, Al Ain and the Western Region.

HEALTH CARE

In addition, 14 new healthcare facilities and a rehabilitation centre will be built. Also, provision has been made for two new industrial zones in the Western Region. Al Rowais industrial zone will cover an area of 14 square kilometres and will focus on the chemical, petrochemical, plastic manufacturing, oil and gas, cement, building, and logistics industries.

The Madinat Zayed industrial zone will focus on the oil and gas, food manufacturing and logistics industries and will cover an area of 2.5 square kilometres. Both of these industrial zones will provide employment for the people of that region.

The development of an auto city which will be located adjacent to ICAD (Industrial City Abu Dhabi) was approved. It will act as a cluster development for all auto-related businesses and is intended to serve the future growth needs of the automobile sector in Abu Dhabi. The project will attract investment in automobile manufacturing and spare part logistics for facilities across the region and it is also anticipated that this will provide employment opportunities for UAE nationals.

A number of projects that support the UAE’s global role as an energy provider have been approved. The Shams solar power plant is scheduled to be operational by August 2012 and will contribute 100MW to the Abu Dhabi power grid. Approval has also been given for the construction of the Sir Baniyas wind farm. Both of these projects will help to support the government’s vision of having 7 per cent of its energy needs supplied by renewable energy.

Moreover, the Executive Council approved a number of projects by the Abu Dhabi Police to provide high-end security and training infrastructure facilities to ensure that the already high standards of safety and security are maintained and enhanced.

The Executive Council approved projects proposed by Abu Dhabi Education Council for the establishment of 24 new schools, and the refurbishment of 10 existing schools.

Accommodation projects for teachers have also been provided for to ensure that quality staff will be prepared to work in remote areas.

The establishment of six special needs rehabilitation centres across the Emirate’s various regions was approved.

The Executive Council also approved the training and development of nationals for professional roles at the STRATA project, a composite aero structures manufacturing facility, in line with plans to have UAE nationals representing 50 per cent of the workforce by 2015. Budgets for training and development in ITEC have also been approved to achieve similar goals in the semiconductor industry. More info

$968 Billion in Project Investments Forecasted in the GCC For the Coming Decade

Over the next ten years 1,638 projects across the GCC are expected to see implementation, resulting in $968 billion in investments. These projects are supported by record-high revenues in the oil sector and will affect a variety of sectors within the GCC, according to a report by the Markaz.

According to the report a majority of these projects, more than 80 percent, involve the petroleum industry, construction and infrastructure.

Consistently high oil prices have permitted the GCC member nations to implement investment commitments targeting development and growth projects, as stated in the report.

Execution of these vital projects will require a compatible and clear set of policies and systems that allow for integration and support efficient implementation. Many of the member states have acknowledged the importance of PPPs (or public private partnerships) to accelerate and facilitate these projects, along with other mechanisms such as joint venture agreements and direct foreign investments.

Kuwait will implement 218 of these projects, totaling more than $133 billion spread across the next decade. Despite this nation’s massive financial wealth, it has been reserved in the spending and awarding processes.

It is expected that between 2011 and 2020, $97 billion will be spent in the GCC on new rail and road projects. Rail projects, such as stations, metro, train and tram projects, are forecasted to reach $79 billion including a $30 billion shared cost rail network stretching across the GCC.

The value of ongoing roads projects should total about $18 billion, according to the report.

Many GCC nations are considering or planning their own metro systems, especially after the success of the metro launch in Dubai. A 131km metro system in Abu Dhabi is forecasted to begin in 2015. A pan-GCC rail system is in the works, with an updated value of about $30 billion. This network will include the first rail line linking all the GCC member states.

A bridge and one rail line stretching 1,970km will link Qatar and the GCC members. Another line stretching 1,984km will connect the UAE, Saudi Arabia and Kuwait, before ending in Oman. Forecasted land acquisitions for this network total $3.1 billion, while the budgeted purchase of locomotives and trains to ride the network is forecasted at $1.8 billion.

Once the engineering studies have been completed in 2012, work should begin on this network.

Port expansion projects are forecasted at almost $15 billion across the GCC. Implementation of these projects to meet expanding business needs is expected to span the next five years.

Expansion will occur in most of the 35 major ports in the GCC, in order to deal with an approximate 8 percent growth in 2010, where capacity hit almost 25 million TEU’s. According to the report, ports in the UAE handle 59 percent of total GCC volume.

In 2010 Dubai came in as the ninth largest port in the world, while Oman’s Salalah was named 32nd on the list of global ports and Saudi Arabia’s Jeddah captured 30^th place, according to the report.

Healthy growth in seaport investments is expected to push capacity even higher. Much of the increased investments have occurred in Abu Dhabi and Dubai, and Markaz noted that other GCC member states have plans to improve port conditions.

To meet its target of 67 million bus journeys in 2012, the Department of Transport will add 150 buses to its current fleet of 379, and 120 routes will have stops no more than 300 metres apart. New buses will be better equipped for people with disabilities.

The Department of Transport will add 150 buses to its current fleet and have more routes in Abu Dhabi. Rich-Joseph Facun / The National

An additional 380 air-conditioned bus shelters will be added to the existing 81 and almost 50 kilometres of bus lanes will be integrated onto the capitals three main roads by the end of 2012.

Bus service every half-hour to Saadiyat Island and Masdar City will start next month and there are planned services to Al Raha Beach, Baniyas, Khalifa City B, Shahama and Zayed University. Al Reef will become a transfer point between Shahama and the capital.

Buses in Al Ain will run an extra hour.

Planning for ferry services to Reem Island and the Corniche will continue for an expected 2013 debut. Routes to Yas Island, Saadiyat, Sowwah and Lulu will follow.

The preliminary design for an Abu Dhabi metro and downtown light-rail transit (LRT) that will travel at a maximum speed of 100kph is planned for a summer 2012 unveiling.

Construction on the 266-kilometre first stage of the Etihad Rail network between Habshan and Ruwais is to begin early in 2012.

DUBAI – Over the next decade, the GCC countries, underpinned by record high oil revenues, are planning 1,638 major projects worth more than $968 billion across various sectors, Kuwait Financial Centre, or Markaz, said.

Dubai Metro

Over 80 per cent of these projects are construction, infrastructure and petroleum industry related projects, the report said.

“The continued buoyancy of oil prices has allowed the GCC states to maintain their commitment towards continued investment in projects for growth and development,” the report said.

According to Markaz, these projects are significant undertakings that require an integrated, coherent and compatible set of systems and policies that will cater for effective and efficient execution towards a successful outcome. “Many of the GCC states have recognised the need for accelerating and facilitating the execution of these projects though mechanisms such as public private partnerships, or PPP, foreign direct investments, joint venture arrangements amongst others.

Kuwait’s share of these projects stands at 218 projects worth over $133 billion, over the next ten years. However, Kuwait, unlike its sister states, has been reserved in project spending and project award, despite its considerable financial wealth.

For new road and railway projects, the GCC countries will be spending a total of $97 billion between 2011 and 2020.

The total value of railway projects, including rail, metro, tram, and stations, is estimated to be $79 billion. This includes the $30 billion GCC rail network to be shared among the member countries.

For the roads sector, the total value of ongoing projects amount to almost $18 billion, Markaz said.

In the wake of Dubai’s successful metro launch, other countries are also planning or discussing their versions of the metro. Abu Dhabi too has joined the fray with 131km metro rail system, which is expected to partially start in 2015.

They also plan a pan-GCC rail network. The updated value of this project is around $30 billion and will consist of a first rail line connecting all the GCC countries. The GCC network will include one rail line of 1,970km connecting all GCC countries and Qatar via a bridge. The second line of 1,984km will stretch between Kuwait, Saudi Arabia, the UAE and end in Oman. Land acquisition expenditures for the project are estimated at $3.1 billion, while the cost of purchasing trains and locomotives is budgeted at $1.8 billion. Work on the railway would start in 2012 following the completion of engineering studies. More info

Dubai: The Abu Dhabi International Airport received the golden award for Fast Travel from International Air Transport Association (IATA), becoming the first airport in the region to adopt IATA’s latest initiative in response to growing passenger demands for more adequate and speedy travel procedures at airports.

Abu Dhabi International Airport Midfield Complex

The award was handed over by Tony Tyler, CEO IATA, to James E. Bennett, CEO of ADAC, with the attendance of various dignitaries from both organisations.

Fast Travel is a new program initiated by IATA geared at reducing airline costs and enhancing passenger experiences by offering a range of self-service options throughout the travel journey.

According to the 2009 IATA Corporate Air Travel Survey (CATS) conducted on worldwide passengers, 50 per cent of the passengers said they would prefer more self-service options to speed up their journey rather than queuing for check-in.

The IATA Fast Travel program will help airports provide passengers with self-service options in six main areas: Check-in, luggage drop-off (bags to-go), document checking, flight re-booking, self-boarding, and bag recovery.

IATA targeted five airport and airline pairs to implement the full Fast Travel set of initiatives as an IATA objective for 2011. Abu Dhabi International Airport offered to be one of the first 5 airports, with Etihad Airways as its pair, in the world to achieve the Fast Travel initiatives and successfully completed it within the deadline. More info

The reassessment of Abu Dhabi’s Vision 2030 resulted in job cuts and project delays. It would’ve been nice without a negative knock-on effect but perhaps it just couldn’t be helped.

Abu Dhabi Airport Terminal 3

Even with a recent report that Abu Dhabi is now expecting to handle a million passengers a month, Abu Dhabi’s business landscape looks pretty shaky despite great momentum its aviation industry displays.

Recently, Kipp reported on Masdar job cuts and the rescheduling of the museum projects in the capital. But the downward movement hasn’t stopped there. Last week, Ferrari World has had to let go of 100 employees. The cuts, the company said, was merely due to a schedule change. One could deduce that the schedule change has been due to the less than expected traffic to the amusement centre.

The thing here to holds us off raising alarm bells is that Abu Dhabi still stands by the execution of its Abu Dhabi Vision 2030. It’s just that they are now more realistic about the realisation of these projects. Of course it’d be nice for this ‘recalibration’ to not have a negative knock-on effect on employees (ie losing their jobs) but in this case we are certain these decisions couldn’t be helped, right?

And this recalibration isn’t over. The latest weak link revealed is Abu Dhabi’s property market, which Jones Lang LaSalle (JLS) expects will “remain sluggish through the initial months of the new year due to suppressed demand coinciding with increased supply,” according to an article on Gulf News.

So be wary, Kippers. Abu Dhabi, while still comparatively strong is undergoing a kind of checks and balance as it reviews its projects and aligns them with the current market conditions. It’s never a good thing to cut jobs. But we do think it’s a good thing to address issues like this as early as possible to curtail maximum exposure to economic crisis. More info