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
Abdul Aziz Al Ghurair, CEO of Mashreq Bank, on what to expect in the financial sector over the next decade
What will be the future of banking? Will the financial sector ...
READ MORE
The economic stimulus package approved in June has been followed by a flurry of tendering activity
Abu Dhabi’s construction sector was given a boost in early June when Crown Prince Sheikh ...
READ MORE
Regional airline carriers can expect a slow and painful post-pandemic recovery
The Covid-19 pandemic has had a significant impact on the dynamics of the GCC’s aviation industry since March 2020, but ...
READ MORE
Growth recorded over recent years generates optimism for Islamic finance, but arguably, more needs to be done for the industry to maintain its upward trajectory going forward
One of the most ...
READ MORE
Gulf states are planning to spend $320bn in the oil and gas sector, according to Suhail Mohamed al-Mazrouei, the UAE’s Minister of Energy & Industry and the current Opec Conference ...
READ MORE
Economic cycles come and go, but the past few years will be remembered by the GCC construction sector as a period of intense difficulty as the region adjusted to the ...
READ MORE
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 ...
READ MORE
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
The purpose of the MEED Projects Awards is to celebrate the best that the GCC projects industry has to offer. MEED’s aim is to support the development of the region ...
READ MORE
New downloadable report from MEED, in partnership with Mashreq, examines the opportunities presented by blockchain for the construction sector
Why blockchain could be the solution to several of the challenges facing the construction ...
READ MORE
Resurgent Abu Dhabi creates new challenges for construction
Future of region’s aviation sector still up in
Innovation, ESG to spur Islamic finance growth
Gulf states to spend $320bn in the oil
Shifting into a new cycle
Mobile health applications in the UAE
Unlocking Saudi Arabia’s potential as a logistics hub
Celebrating excellence in GCC projects at MEED Projects
Blockchain for construction
19 December, 2017 | .By COLIN FOREMAN
