UAE top infrastructure builder in GCC with projects worth US$1.5trn

The UAE is the leading builder of infrastructure development projects in the GCC with almost US$1.5 trillion (Dh5.5trn) worth of projects being planned and under construction.
While US$28.5bn worth of projects are currently under construction in the country, another US$76.9bn worth of projects are being planned during the coming decades according to a report in "Emirates Business."
According to statistics released by Ventures Middle East, about US$2.43trn worth of infrastructure projects are either being built or are in the pipeline in the region. Closely following the UAE is Saudi Arabia with US$17.9 billion worth of ongoing projects and US$50.3bn worth of projects being planned for the future.
Mohammed Younis, Head of Infrastructure at the engineering and consulting firm, Hyder Consulting, said it is very important for the governments in the region to invest in infrastructure, especially since the construction sector is facing the brunt of the economic slowdown.
"There is actually no better time for the governments to plan their infrastructure projects. With prices of materials coming down and easy availability of contractors, there is an excellent opportunity to invest now," he said.
During the past six years alone, GCC governments awarded US$720bn worth of infrastructure projects. Experts have also said that the GCC's investments towards infrastructure development would gain momentum in the future.
Despite the drop in the price of oil and banks stopping finance, GCC governments they said, would take advantage of the current market conditions and prepare the necessary infrastructure required for future developments. Ashok K. Gupta Chief Executive (GCC Operations) of Bank of Baroda, said that infrastructure projects are mostly funded by governments and should not be affected by the present crisis.
"Especially in the GCC I do not expect this. Moreover the finances we are talking about here will be required over a period of eight to 10 years and the market is definitely going to improve by then," said Gupta.
According to him usually banks are not involved in such large projects as it requires long-term funding. "Also, right now the market is bottomed down and we can only see an upward movement henceforth," he added.
According to Mibu John, Syndicated Research Director, Ventures Middle East, Qatar, Kuwait, Bahrain and Oman Put together have infrastructure projects valued at about US$70bn both planned and presently under construction.
"While Qatar has almost US$13bn worth of infrastructure projects under construction, Kuwait's infrastructure projects amount to just US$2.9bn. However, Kuwait has planned more than US$24bn worth of projects during the coming years," he said.
According to Younis during the past few years, UAE alone has witnessed a number of new projects being announced on a daily basis. "Private developers in the past three years were quicker in carrying forward their projects compared to the government," said Younis.
"Today we have too many developments either ready or on the verge of being completed, whereas the main infrastructure is not available. We still have a shortage of power and water, if not so much in Dubai and Abu Dhabi. We have heard about the shortages being faced in the Northern Emirates," he added.
"Now is the time for the governments to step in and invest in infrastructure. Also it will help the market and boost the economy.
"Moreover there are enough contractors available, especially with private developers delaying some projects," he said.