Abu Dhabi real estate construction sector -
busy days ahead
Until a few years back, Abu Dhabi emirate's
construction sector was dominated by Oil &
Gas projects and Independent Power and Water
(IWPP) schemes.
Though there were few prestigious building
projects, the building sector was completely
over shadowed by the Oil & Gas and IWPP
projects. Major development schemes were
announced in the real estate sector, but
were delayed or cancelled.
In the year 2004, a breath of fresh air was
breathed into the local building
construction sector with the formation of
Aldar Properties and with the launch of Al
Reem Island development scheme. The
emergence of Aldar Properties in 2004 was a
major milestone in changing the mindset of
the local real estate industry. Aldar
Properties unveiled their first major
development scheme on 5th February 2005 -
the estimated Dhs.54 billion Al Raha
Development.
A host of other major projects were
announced by Aldar during the year, the
largest among the lot was the Mina Zayed
development which is expected to cost Dhs.55
billion.
The multi-billion Dirham Al Reem Island
development is another major scheme,
announced in the year 2004 which is expected
to take the emirate's building sector to new
heights. Al Reem Island development is
carried out by three companies - Tamouh
Investments, Sorouh Investments and Reem
Investments, each responsible for a certain
section of the island. The combined projects
portfolio of the three developers in the
island are understood to exceed Dhs.75
billion.
Sorouh Investments has also made its
intention clear to become one of the leading
developer in the emirate by announcing
projects elsewhere in Abu Dhabi and Al Ain.
In a recent development, Lulu Island, a
project which was in the government's card
since 1993, has been awarded to Sorouh
Investments for development.
Abu Dhabi Tourism Authority (ADTA) is
expected to play a major role in positioning
the emirate as a hot tourist destination.
Saadiyat Island which was previously
earmarked for development as an offshore
financial market and was eventually shelved
has been given a fresh impetus by ADTA with
the announcement of a Dhs.100 billion
development scheme in the island. A public
joint stock company called Tourism
Development and Investment Company (TDIC)
was formed in April 2006 to manage the
project.
In addition to the Saadiyat project, ADTA
has joined hands with the local Al Jaber
Group for a 5 star hotel project in Abu
Dhabi, which will be managed by Shangri La
Hotels & Resorts. ADTA has a second 5 star
hotel, which is also under construction and
will be located next door to the Shangri La
Hotel. A host of new hotel projects were
announced since the beginning of 2006. The
major hotel projects announced in the last 6
months include Hyatt Regency by Al Masaood
Group, Emirates Pearl Hotel by TDIC and
Atlas Group, Hotel at Jebel Naqfa by Sorouh
Investments, Luxury Resort in Saadiyat
Island by Abu Dhabi National Hotels Company
(ADNHC), Park Rotana Hotel by Al Mada
Tourism, Holiday Inn by Al Qudra Real Estate
and a Luxury Hotel by Al Habtoor Group.
Abu Dhabi emirate's new property ownership
laws which were put in place in August 2005
has already raised the interests of new
players in the market, who are marching
ahead with their own plans. Start-up
companies are being launched at regular
intervals and other developers from the
region have already started moving in to the
emirate. With a flurry of activities already
on the cards, the coming years is
undoubtedly set to place Abu Dhabi on top of
the construction activity chart.
The major multi-billion Dirham schemes
planned in the emirate of Abu Dhabi include:
Source: Ventures Middle East
GCC Projects Database (www.ventures-uk.com)
Construction Contract Awardss
According to Ventures Middle East, a leading
management consultancy firm in the region,
Abu Dhabi emirate's building construction
industry is expected to witness the award of
over Dhs.22 billion worth of projects to
contractors by the end of the year 2006.
This figure is expected to rise to over
Dhs.28 billion in 2007 and is expected to
hit the Dhs.35 billion mark in 2008..