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 UAE emirate had prepared a budget based on a $50 a-barrel oil price
US ratings agency Moody’s Investors Service expects Abu Dhabi’s $13.6bn stimulus package to be fully met by increased oil ...
READ MORE
The expansion is due to be completed by the fourth quarter of 2019
Brooge Petroleum & Gas Investment Company (BPGIC) is looking to boost capacity for crude and oil products at ...
READ MORE
Medical tourism is when a person travels to another country for medical care[1]. Key factors driving medical tourism are lower costs, better quality of care, lower waiting times, availing unavailable ...
READ MORE
Governments are starting to shelve upcoming projects that are no longer considered necessary
It is now five years since oil prices began to collapse in late 2014. As a major oil ...
READ MORE
The Kuwait Oil Company project is worth $4.1bn
The first phase of the Kuwait Oil Company (KOC) Ratqa Lower Fars Heavy Oil megaproject is on course to be completed in March ...
READ MORE
GlobalData downgrades growth forecast as regional lockdown measures are extended until the end of May
GlobalData has cut its construction output growth forecast for the Middle East and North Africa (Mena) region ...
READ MORE
Home healthcare is defined as care provided at home by licensed healthcare professionals who cater to medical treatment needs or by professional caregivers who provide daily assistance to ensure that activities of daily ...
READ MORE
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
Heads of transport authorities in Dubai and Sharjah named among Etihad Rail board of directors
UAE President Khalifa bin Zayed al-Nahyan has issued a federal decree restructuring the Etihad Rail board ...
READ MORE
New downloadable report from MEED, in partnership with Mashreq, brings together a series of case studies on the deployment of technology in oil and gas
The global oil and gas industry is embracing ...
READ MORE
Abu Dhabi’s stimulus package to be met by
UAE midstream firm to expand Fujairah storage facility
Growth of medical tourism in Dubai
Future projects are threatened by subdued population growth
EXCLUSIVE: Phase one of Kuwait heavy oil scheme
Further cuts to Mena construction outlook
Home healthcare services in the GCC
EXCLUSIVE: Abu Dhabi moves on stalled rail project
UAE restructures Etihad Rail
19 December, 2017 | .By COLIN FOREMAN
