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
Domestic tourism is propping up leisure hospitality in the short-term, but long-term recovery of international leisure and business travel will be a slow process
Global tourism came to a halt 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
Tim Taylor, QC, discusses the impact of Covid-19 on the UAE's legal landscape and disputes market
During a crisis, the legal expectation is ‘deals down – disputes and restructuring up’. While this ...
READ MORE
A look back at the history of attempted PPP projects in the region highlights a catalogue of failures
When looking back on the history of the GCC projects market, we can ...
READ MORE
There are more than $155bn of residential and mixed-use schemes still on hold
The decision by Bahrain’s Judicial Committee for the Settlement of Stalled Real Estate Projects plans to auction the ...
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
GlobalData downgrades Mena growth outlook amid oil market uncertainty and Covid-19
GlobalData has cut further its construction output growth forecast for Middle East and North Africa (Mena) region for 2020 to - ...
READ MORE
Costs in Riyadh will increase the most with gains of 5 per cent
Construction costs in the Middle East are expected to increase during 2019, according to a report by UK-based ...
READ MORE
The outlook for the market has been transformed by key developments in the UAE and Saudi Arabia over the past year
It looked like there was a bright future for the ...
READ MORE
Partnership will grow to accommodate developments in sectors such as construction and energy
MEED and Mashreq have announced the extension of their knowledge partnership for a third year.
First established in 2017, ...
READ MORE
Slow recovery predicted for regional tourism
Further cuts to Mena construction outlook
The pandemic’s potential impact on disputes
Is this the end of public-private partnerships in
Stalled real estate projects are still an issue
In-country value could positively transform construction in the
Mena construction outlook drops to -2.2 per cent
Construction costs are expected to rise in 2019
GCC rail sector revitalised by project progress
MEED and Mashreq renew partnership for third year
19 December, 2017 | .By COLIN FOREMAN
