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.

Kuwait and Iraq to study developing shared oil fields

A consultant will be appointed to carry out study on border fields Kuwait and Iraq are planning to appoint consultants to study the development of shared oil fields, Kuwait’s Oil Minister ...

Dubai spending cuts are unsurprising amid Covid-19

Government decision to avoid cost overruns exposes contractors to project losses The Dubai government’s decision to put future projects on hold is unsurprising as Covid-19 weighs down on global economies. While the government ...

CONNECT SERIES: Renegotiating construction contracts

A guide to renegotiating contracts Legal considerations for contractors asked renegotiate construction contracts As the economic impact of the Covid-19 pandemic spreads, some project paymasters are seeking to reduce their project costs ...

Abu Dhabi to tender world’s largest IWP in May

Emirate’s first standalone independent water project will have a capacity of 200 million imperial gallons a day Abu Dhabi is planning to issue tender documents for the world’s largest independent water ...

Logistics turns to innovation

Covid-19 has served as a catalyst for digitalisation in the logistics sector To say that the Covid-19 pandemic presented unprecedented challenges for governments, healthcare systems, and businesses across the globe would ...

Emerging formats in healthcare delivery in the GCC

Various demand drivers are leading to realigning healthcare delivery towards newer formats to cater to the increasing healthcare requirements of the GCC population. Download your copy here In the recent past, various ...

Decarbonisation is the next phase for Mena construction

The region’s construction and wider projects market must start incorporating sustainable practices in the planning and delivery of projects As countries around the world commit to reducing their carbon emissions, the ...

Adnoc considers changes to In-Country Value scheme

Adnoc is considering adjustments to its In-Country Value (ICV) system, which was introduced in January this year. An Adnoc spokesperson told MEED: “As with any programme of this nature, you listen and learn during ...

Mobile health applications in the UAE

The UAE has scaled up use of mobile health applications due to its relatively modern infrastructure, government initiatives, increased investment and agility of healthcare system. Moreover, the UAE has been ...

Closing the healthcare talent gap

This is article is the third in a series from the MEED-Mashreq Healthcare Business Leaders Forum held on 23 February in Dubai. The event saw leading industry experts gather to ...

Kuwait and Iraq to study developing shared oil

Dubai spending cuts are unsurprising amid Covid-19

CONNECT SERIES: Renegotiating construction contracts

Abu Dhabi to tender world’s largest IWP in