Professional Documents
Culture Documents
UAE Construction Industry 2006
UAE Construction Industry 2006
UAE Construction Industry 2006
UAE
Construction
Industry in 2006
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TABLE OF CONTENTS
The activities in the marine sector received a shot in the arm when the emirate of
Abu Dhabi unveiled plans to build the US$2,100 million Khalifa Port and Industrial
Zone at Taweelah during early 2006. The prominent events which took place in
2006 in the power and water sector include identification of two new sites –
Hassyan and Lehbab by Dubai Electricity and Water Authority (DEWA) for
construction of power and desalination plants for the future; government of Abu
Dhabi’s launch of Masdar alternative energy initiative; signing of key project
agreements on the Fujairah independent water and power project (IWPP)
between Abu Dhabi Water and Electricity Authority (ADWEA) and Sembcorp
Utilities; Launch of the 7th independent water and power project (IWPP) in
Fujairah by ADWEA; and approval of Abu Dhabi’s Taweelah A1 independent water
and power plant extension, to be known as A10 by the executive council.
Let’s take a closer look at the highlights of the year 2006 by quarter.
Quarter 1
• The emirate of Abu Dhabi unveiled plans to build the US$2,100 million
Khalifa Port and Industrial Zone at Taweelah.
• Danieli & Company signed the US$545 million EPC contract for the first
phase construction of rebar and wire rod facility for Abu Dhabi based
General Holding Company.
• HSBC Bank Middle East and Daman Securities partnered together for a
private sector real estate joint venture fund – Arabian Real Estate
Investment Trust.
• DEWA identified two new sites – Hassyan and Lehbab for construction of
power and desalination plants for the future.
• Dubai government announced the long awaited property law on 14th March
2006 which states that UAE and GCC nationals, including companies
wholly owned by them and public joint stock companies have the right to
own property in Dubai. Non GCC nationals will be given the right to
freehold property and leasehold of up to 99 years in certain parts of Dubai
emirate.
• Abu Dhabi Melamine Industry Company was formed by ADNOC and AMI
Agrolinz Melamine International (Austria) to own and operate the planned
Ruwais melamine plant.
Quarter 2
• Al Qudra Real Estate announced its first major project – Danet Abu Dhabi
which will comprise 34 towers (15-23 storeys) and a shopping mall.
• Sheffield Real Estate in joint venture with Russia’s Rustar Real Estate
launched the 101-storey, 412 metre high Marina 101 tower.
• Atkins appointed as the lead engineer on the Dubai Light Rail project.
• Tatweer, part of Dubai holding unveiled plans of the massive real estate
scheme – the US$27.2 billion Bawadi project.
• Abu Dhabi Terminals Company has been formed by Abu Dhabi Ports
Company in co-operation with Dubai’s DP World to operate Mina Zayed.
• The local-Brazil joint venture of Al Jaber Group with Odebrecht bagged the
estimated US$275 million contract for the construction of new runway at
Abu Dhabi International Airport.
Quarter 3
• Jan De Nul was awarded the reclamation works contract for Dubai
Waterfront.
• Dubai’s RTA has awarded the US$1,112 million contract for the phase 2
works on the Dubai Metro scheme to Dubai Rapid Link consortium.
• ADWEA launched its 7th independent water and power project (IWPP) in
Fujairah.
• Istithmar together with AIG Global Real Estate (New York) launched a new
company to invest in real estate assets across the region.
Quarter 4
• Bechtel was appointed as the consultant while Fichtner took the power
generation element for the proposed Ruwais aluminium smelter project.
• Palm Water was awarded the US$550 million design, build, own and
operate water and wastewater plants by Jebel Ali Free Zone Authority.
• Jan De Nul (Belgium) was awarded the US$220 million Saadiyat Island
dredging and reclamation contract.
• Aldar Properties formed a joint venture with Laing O’Rourke (UK) primarily
for Aldar’s $14,700 million Al Raha Beach scheme, but may be engaged on other
Aldar developments as well.
• Linde won the estimated US$1,300 million cracker EPC package on Borouge’s
petrochemical complex expansion scheme.
• Aldar Properties announced Abu Dhabi’s largest real estate project till date – The
US$40,000 million Yas Island Development.
The UAE is understood to have recorded the highest real Gross Domestic Product
(GDP) growth in 2006 at 10.2%, followed by Qatar at 7.5%, Kuwait at 6.5%,
Saudi Arabia at 6.2%, Bahrain at 6.0% and Oman at 5.0%. Qatar is expected to
lead the pack in terms of real GDP growth in 2007, rising by 8.6% as the country
boosts its natural-gas production by 42%, on top of the 8.9% increase of 2006.
The UAE will follow with real growth of 7.2%, Oman of 5.9%, Bahrain of 5.0%,
Saudi Arabia of 4.2%, and Kuwait of 4.1%. The lower growth rates projected for
2007 compared to 2006 are mainly due to the slight decline in oil output expected
this year and global factors that will result in a slight slowdown for foreign direct
investment (FDI) and economic growth globally, according to WTO and UNCTAD.
The consultants who top the chart in the year 2006 are listed below. Please note
the consultants are listed in the alphabetic order and not according to the value of
projects awarded to them.
30,000
The following chart represents the sector wise break-up of expected construction
contract awards in UAE during the year 2007.
60,000
50,000
Oil & Gas
40,000 Pipeline
Industrial
30,000
Buildings
20,000 Power & Water
Marine
10,000
Infrastructure
0
Value in US$ Million
END REPORT