Dubai to boost infrastructure spending by 43 per cent in 2018

Construction

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
States deliberate on stranded South Asian workers
The UAE's offer to repatriate expatriates has not been taken up by India Discussions are under way to repatriate foreign workers, including Indian and Pakistani nationals, from the UAE as the ...
READ MORE
Construction
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
MEED and Mashreq renew partnership for third year
Partnership will grow to accommodate developments in sectors such as construction and energy MEED and Mashreq have announced the extension of their knowledge partnership for a third year. First established in 2017, ...
READ MORE
Changing tides in project finance
Restructuring credit in accordance with the current environment is key to the survival of contractors and their projects, says Mashreq’s Mohammad al-Shouli This article is extracted from the report 'UAE Construction ...
READ MORE
Etihad railway to drive logistics growth
Some packages in the next stage of Etihad railway will link the UAE’s major ports The procurement process for the next stage of the UAE’s Etihad railway is now in full swing. Contractors ...
READ MORE
Building a better construction industry in the UAE
The third session of the Construction Industry Think Tank identifies actions for improving the state of construction in the UAE Download your copy of the white paper here After more than a ...
READ MORE
Unlocking Saudi Arabia’s potential as a logistics hub
Rayan Mustafa Qutub, CEO of Ports Development Company, explains the role of King Abdullah Port in the kingdom’s plans to expand its logistics sector The recent signing of a memorandum of ...
READ MORE
Four-year Mena projects market dip continues
After four difficult years, the outlook remains bleak for anyone hoping for a strong pick up in new project opportunities in the Middle East and North Africa With some $4.7tn of ...
READ MORE
Construction faces greater challenges in 2021
Slump in contract awards points to tougher market conditions for construction companies next year While the Covid-19 pandemic has not thwarted ongoing projects in the GCC, plans for future developments are ...
READ MORE
UK to support export credit deals with dedicated GCC office
UKEF has capacity to fund £9bn of schemes in the UAE and £4.5bn in Saudi Arabia The growing interest from project clients for using export credit facilities to fund their projects ...
READ MORE
States deliberate on stranded South Asian workers
Is this the end of public-private partnerships in
MEED and Mashreq renew partnership for third year
Changing tides in project finance
Etihad railway to drive logistics growth
Building a better construction industry in the UAE
Unlocking Saudi Arabia’s potential as a logistics hub
Four-year Mena projects market dip continues
Construction faces greater challenges in 2021
UK to support export credit deals with dedicated
19 December, 2017 | .By COLIN FOREMAN