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 Dubai airport expansion project is expected to cost $33bn
Dubai Aviation Engineering Projects (DAEP) has invited contractors to prequalify for a major construction contract on the $33bn Al-Maktoum International airport ...
READ MORE
As Abu Dhabi’s groundbreaking $1.6bn Strategic Tunnel Enhancement Programme (STEP) nears completion, the emirate’s wastewater company is now turning its focus to improving and rehabilitating existing infrastructure.
“We have spent the ...
READ MORE
The region-wide fiscal rebalancing triggered by the fall in oil prices since 2014 has had a profound effect of the region’s construction industry.
Many of the issues that have dogged the ...
READ MORE
Contract awards have failed to keep pace with the large volume of projects that are now being completed
Dubai’s construction market retreated sharply during the second quarter of this year, with ...
READ MORE
Etihad Rail unveils new strategy and brand identity following budget approval and completion of stage 2 network design
Abu Dhabi-based Etihad Rail has completed the network design for stage 2 of the 1,200-kilometre ...
READ MORE
Growth holds despite negative inflation and weaker project activity
READ MORE
Localisation will create barriers to entry and move the market away from awarding work to lowest priced bidders
Abu Dhabi’s move to introduce the in-country value (ICV) programme into sectors outside ...
READ MORE
National Centre for Privatisation is the client
Saudi Arabia’s National Centre for Privatisation (NCP) has invited firms to express interest by 1 October for the contract to provide technical advisory services for the ...
READ MORE
As project sponsors and construction clients seek ever greater levels of return on their investments, it is becoming increasingly important for anyone involved in project delivery to find ways to ...
READ MORE
With Bahrain’s branding in place and further tourism growth expected, the country is now shifting its focus to new markets
Much is expected from tourism in Bahrain, and the sector has ...
READ MORE
Prequalification starts for Al-Maktoum airport terminal works
Abu Dhabi turns its attention to efficiency
New Thinking for the New Normal
Dubai’s construction market dropped sharply in second quarter
Etihad Rail completes stage 2 design
UAE maintains its economic course
In-country value could positively transform construction in the
Saudi Arabia seeks interest for urban rail PPP
Improving productivity and efficiency in the region’s construction
Bahrain moves to next phase of tourism plan
19 December, 2017 | .By COLIN FOREMAN
