Granting new development contracts for stalled infrastructure ventures, for example, Abu Dhabi Metro would support monetary development in Abu Dhabi, say experts after the emirate’s Executive Council granted billions of dirham of infrastructure spending a week ago.
On Thursday, the Abu Dhabi Executive Council granted about Dh6 billion worth of construction development projects in Abu Dhabi emirate.
The awards included the 1 billion dirham development package for a business area venture in Madinat Zayed, a development initially expected to be Abu Dhabi’s second downtown and a 687 million dirham residential venture in Al Hayer, close to Al Ain, and cash for new streets and power substation works.
As indicated by the Executive Council proclamation, the Madinat Zayed venture will incorporate the usage of foundation works, for example, streets, system facilities and power supply to 704 commercial business lots. The zone will incorporate a “multi-modular” public transport framework, the announcement said without explaining further.
Initially known as Abu Dhabi’s Capital District and later New Khalifa City, Madinat Zayed – in a triangle between Khalifa City A, Khalifa City B and Mohammed bin Zayed City – will accommodate 300,000 individuals and 325,000 laborers.
Plans for the area were initially drawn up between February of 2008 and March of 2009 and incorporated a Federal Precinct center to serve as the UAE’s national seat of government, and a central space facilitating seven grand boulevards roads that speak to the 7 emirates.
Since the decline in the worldwide cost of oil in 2014, Abu Dhabi has decreased a great part of the emirate’s public spending, leaving a considerable number of the city’s planned infrastructure ventures slowed down, including the city’s prepared 131 kilometer Abu Dhabi metro and light rail system, which was incorporated into the city’s transportation master plan in 2009.
The initial phase of the metro is relied upon to run 18 kilometers between Zayed Sports City in the south of Abu Dhabi island and Mina Zayed toward the north with 5 kilometers below ground and 13 kilometer over the ground.
Subsidizing for the venture was granted by Abu Dhabi’s Executive Council in March of 2012 yet seems to have been on hold from that point forward.
“It must be something worth being thankful for the local economy that the legislature has reported this swath of new projects in and around Abu Dhabi,” said Edward Carnegy, Cluttons’ Abu Dhabi office Head.
“Presently we wait to see whether any more fund could be made accessible for other key projects, like the Abu Dhabi metro.”
Craig Plumb, the research head at JLL’s Dubai office stated: “Spending for infrastructure as we have found in Dubai, constructing a metro system positively affects the encompassing territories. Office vacancy rates in the CBD regions of Dubai, which are near the metro, remains at 17% while in Business Bay where the greater part of the workplace stock is far from the metro station, it remains at more than 40%.
“In areas like JLT, apartments close to the metro offer or lease for a premium of around 10 to 15%.”
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