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 third Mashreq Energy Club focused on the rise of renewables in the region
The falling costs of clean energy technologies is driving the shift towards renewable energy across the Middle ...
READ MORE
The GCC’s Healthcare sector has been growing due to several demand drivers like population growth, increasing insurance coverage and availability of skilled manpower. These growth drivers coupled with government initiatives ...
READ MORE
Highlights from the fourth Mashreq Construction Club
At the fourth meeting of the Mashreq Construction Club on 17 October 2018 at the Marriott Marquis Hotel, Dubai, Dubai Aviation Engineering Projects (DAEP), ...
READ MORE
Heading into the final quarter of 2018, it seems that the regional market has yet to recover from the damage caused by low oil prices
As we enter the final quarter ...
READ MORE
The government has committed to investing in new infrastructure projects
Bahrain’s construction market rebounded in 2018 with a total of $2.44bn of contract awards, according to regional projects tracker MEED Projects. The ...
READ MORE
IMF regional director Jihad Azour says size of fiscal packages varied significantly across 12 Mena countries
Countries in the Middle East and North Africa (Mena) region have dedicated an average of ...
READ MORE
Highlights from the sixth Mashreq Construction Club
Financial regulations impact not just the banking sector, but all industries that require capital support. The GCC is home to a significant construction sector ...
READ MORE
Oil producers continue to focus on developing projects to increase production capacity, while the gas sector is set to benefit from the move away from coal and oil
Global demand for ...
READ MORE
While short-term challenges must still be overcome, the UAE remains an attractive place to do business as its 50th anniversary nears
As the world recovers from the ravages of the Covid-19 ...
READ MORE
Increased pressure on the supply of water is resulting in a regional shift towards private finance and the separation of water and power generation facilities
Securing adequate water supplies is one ...
READ MORE
ENERGY CLUB 3: Renewables on the rise in
Integrated Sports Health and Wellness – A growing
CONSTRUCTION CLUB 4: Innovation is driving Dubai’s aviation
Short-term outlook for GCC projects market deteriorates
Bahrain keeps building as market rebounds
Mena fiscal support averages 2.7 per cent of
CONSTRUCTION CLUB 6: Emerging regulations impact contracting finance
Producers renew upstream investment
UAE set for post-Covid recovery in 2021
Surging demand opens water investment taps
19 December, 2017 | .By COLIN FOREMAN