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.
Related Posts
The MEED Mashreq Construction Partnership is a knowledge-sharing initiative that was started in 2017. The aim is to provide a platform for senior industry executives to discuss and address the ...
READ MORE
MEED's latest intelligence report finds that while short-term challenges must still be overcome, the UAE remains an attractive place to do business as its 50th anniversary nears
As the world recovers ...
READ MORE
Some projects are now struggling to attract sufficient bids from contractors
These are difficult times for the construction industry. Four years of lower oil prices have starved the market of cash ...
READ MORE
Contractors and consultants say there are less new work opportunities when compared with previous years
The total value of contract awards in Dubai during 2018 is due to register a significant ...
READ MORE
While its robust internal political discourse may sometimes frustrate, Kuwait’s measured diplomacy provides a reassuring presence
Amid ongoing political tension and heightened geopolitical risk in the Gulf, Kuwait’s longstanding pursuit of ...
READ MORE
A look back at the history of attempted PPP projects in the region highlights a catalogue of failures
When looking back on the history of the GCC projects market, we can ...
READ MORE
While the Covid-19 crisis and drop in oil prices have led to a collapse in government revenue and short-term project spending, regional project plans remain in place
The combination of the ...
READ MORE
Middle East manufacturers need to decarbonise their operations to be competitive. It is not easy.
Watch the on-demand webinar here
Middle East manufacturers must invest in decarbonising their operations and their supply ...
READ MORE
Upcoming contracts include work at the airport, infrastructure and building hotels across the 28,000 square-kilometre development
The Red Sea Development Company (TRSDC) is preparing to award close to SR12bn ($3.2bn) of ...
READ MORE
The government has committed to investing in new infrastructure projects
Bahrain’s construction market rebounded in 2018 with a total of $2.44bn of contract awards, according to regional projects tracker MEED Projects. The ...
READ MORE
Reengineering Construction – MEED Mashreq Construction Partnership Newsletter:
UAE set for post-Covid recovery in 2021
Cautious contractors grow wary of bidding
Dubai contract awards drop in 2018
Kuwait’s agenda turns to critical infrastructure
Is this the end of public-private partnerships in
Project opportunities to watch out for
Net zero challenge for Middle East manufacturers
The Red Sea Development Company prepares to award
Bahrain keeps building as market rebounds
19 December, 2017 | .By COLIN FOREMAN
