Construction companies are reacting with cautious optimism at news the Abu Dhabi Government is ready to restart billions of dollars worth of projects.
Dozens of projects in the pipeline were under review for most of last year, leaving builders in limbo. Many shifted personnel and resources to Saudi Arabia and Qatar, where work was going forward.
"The indication of pushing ahead is a positive message," said Chris Gordon, the group general manager of Habtoor Leighton Group. "There is quite a backlog of work that would have been awarded in the second half of 2011."
The Executive Council confirmed funding for a wide variety of projects, primarily focusing on infrastructure, health care and education. Big-ticket items included a 700,000 square metre terminal for the Abu Dhabi International Airport, and a budget and timetable for construction of the three primary museums on Saadiyat Island, including the Louvre, which is now scheduled to open in 2015.
Construction companies were already engaged on most of the projects; many had already been put out to bid.
"There were no projects that we didn't know about," said David Barwell, the chief executive, Middle East, for Aecom. "I'm pleased to see now there is some financial commitment going toward them."
But there were some notable omissions in the Executive Council's announcement, including any mention of the Capital District, a central element of the Abu Dhabi Plan 2030.
The Capital District is intended to cover 45 sq kilometres and serve as the centre for the federal government.
"I thought we'd be hearing something about the Capital District," Mr Barwell said.
Also absent was mention of any of the large-scale office and residential developments that have been the focus of much of Abu Dhabi's construction boom in recent years.
"The announcement suggests a reduction in future releases of real estate supply," said David Dudley, the regional director of Jones Lang LaSalle, a property consultancy. "Several previously announced, government-backed real estate projects have been excluded from the list - emphasising the Government's ongoing rationalisation of real estate supply to establish more stable market conditions."
There were some surprises on the Executive Council's list. The council reaffirmed financing for planning a metro and rail system for the capital, a project that many observers thought had been put on a back-burner.
And while schools have long been a priority for the Government, the announcement upped the ante.
The Council unveiled funding for 24 schools, plus six special needs rehabilitation centres; just 13 schools are currently in development, said Miceal Sammon, the chief executive of the Sammon Group, an Irish company specialising in school construction.
"The pace [of construction] had slowed and now we see an increase in the pace," he said. "For international companies like us, it reaffirms and encourages us to keep the commitment to the UAE."
The Council also announced plans to fund the long-delayed Al Mafrag-Ghuwaifat road project, connecting Abu Dhabi to Saudi Arabia, which could cost Dh10 billion (US$2.72bn). The road was originally developed as a ground-breaking public-private partnership, but plans stalled last spring, in the final stages of the process.
Construction executives believe the road now will be funded in a more traditional manner.
The Council's announcement left other questions unanswered. There is still no schedule for launching many of the projects and it is likely many will have to be re-tendered, after months of delays since bids were accepted.
The Louvre may be among the projects where contracts will need to rebid or renegotiated, construction executives say. A Tourism Development and Investment Company (TDIC) spokesman declined comment.
"Over the coming months the announcements from the individual departments on their respective budgets and timetables will be key to the future success of the programme," said Nick Smith, the head of cost and commercial management for EC Harris, a construction consultancy.
The awarding of contracts and the timing of projects is likely to have long-term implications for construction companies, he said.
"There is likely be a gap between the announcement and when these projects ultimately come to fruition. And this could create a challenge when it comes to retaining skilled resources, especially at a time when Abu Dhabi is likely to be competing with Qatar for this talent."
The Government might benefit from the delays in some projects.
Material costs have come down and constructions companies are chasing fewer available jobs in the UAE.
"It's going to be very competitive to win [the project contracts]," Mr Gordon said.
kbrass@thenational.ae
twitter: Follow our breaking business news and retweet to your followers. Follow us
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
EU Russia
The EU imports 90 per cent of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying almost 40 per cent of EU gas and a quarter of its oil.
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
UAE currency: the story behind the money in your pockets
THURSDAY'S FIXTURES
4pm Maratha Arabians v Northern Warriors
6.15pm Deccan Gladiators v Pune Devils
8.30pm Delhi Bulls v Bangla Tigers
