Dubai to boost infrastructure spending by 43 per cent in 2018

19 December, 2017 | By COLIN FOREMAN

Dubai will increase its spending on infrastructure and construction projects by 43 per cent next year as it continues to prepare for Expo 2020 as well as invest in other strategic projects.

The Dubai government has a budget of AED11.886bn ($3.2bn) to spend on infrastructure projects based on the budget approved on 11 December by Vice-President and Prime Minister of the UAE and Dubai Ruler Sheikh Mohammed bin Rashid al-Maktoum. An estimated AED5bn has been allocated for Expo 2020 alone.

The 2017 budget for infrastructure spending was just over AED8bn.

For 2018, the government says infrastructure spending accounts for 21 per cent of the total budget expenditure of AED56.6bn. The spending will mean Dubai runs a budget deficit of AED6.2bn in 2018, which is 1.55 per cent of GDP. The overall 2018 budget spending is a 19.5 per cent increase on spending for 2017.

The increase in government spending on infrastructure projects does not necessarily translate into an increase in contract awards next year. This is because many of the infrastructure schemes that will receive spending in 2018 have already been awarded, and include major projects such as the Route 2020 extension to the Red Line of the Dubai Metro. According to regional projects tracker MEED Projects, there were $5bn (AED18.35bn) of public sector contract awards across all sectors.

The government says its spending for the Expo will total AED25bn. Spending on the metro expansion is estimated to be about AED10.6bn. This spending will not all be made in 2018.

Dubai is tendering contracts that will be awarded next year. Two major deals were recently tendered by the Roads & Transport Authority for the construction of the Infinity Bridge crossing Dubai Creek and the elevation of Al-Khail Road.

These projects will add to construction work on real estate projects that are being developed by private sector developers.

Construction must drive net-zero in future cities

The industry needs to work with the government to enable smart, urban cities that align with national net-zero ambitions The UAE construction sector must play a pivotal role in mitigating carbon ...

Saudi government approves nuclear power programme

First project will involve the construction of two reactors with a capacity of about 2.8GW The Saudi government has approved the nuclear programme proposed by the King Abdullah City for Atomic ...

UAE Construction Opportunity

With a pipeline of $820bn of projects planned, and an outlook for $40bn of contracts to be awarded every year, the UAE has plenty of reasons for wanting to ensure ...

Transforming Construction: Lessons from Oil & Gas

IMPARTING KNOWLEDGE: The region’s construction industry is in a state of revival and can learn valuable insights from its oil and gas counterpart With nearly $1.6tn-worth of major building and infrastructure ...

Villas, townhouses drive UAE residential market

Demand for affordable and community-centric homes is driving an uptick in the UAE residential property sector · Changing consumer behaviour such as demand for community-centric, open spaces is steering buyers towards ...

Lower oil prices forecast for 2020

Analysts predict rising inventories will weigh on prices The US Energy Information Administration (EIA) is expecting the average price of crude to be lower in 2020 than in 2019 due to ...

Adnoc presses ahead with onshore projects

The state energy enterprise has been focusing on upgrading infrastructure at its onshore oil and gas fields this year, as market factors impede progress on cost-intensive projects With timelines extended and ...

Building Future Cities – MEED Mashreq Construction Partnership July 2019 Newsletter

The MEED Mashreq Construction Partnership has developed a powerful flow of data and insight on the construction sector. Through our dynamic programme of high-level industry clubs and research reports, the ...

The case for environmental sustainability in the GCC

GCC governments have the chance to turn the region into a sustainability pioneer by regarding sustainable solutions as an opportunity rather than a cost Environmental sustainability is becoming the norm around ...

UAE logistics actively mitigates disruption

The UAE logistics industry is taking on lessons from the pandemic to reshape its business models The logistics and warehousing sectors are an integral part of the business value chain, ...