Abu Dhabi vision sharpens focus

Last week's funding announcement from the Government spotlights the evolution and shifting priorities of Plan Abu Dhabi 2030, the capital's blueprint for development.

Many of the flashier elements of the plan are still in the long-term pipeline, but the Executive Council has focused funds on social and infrastructure projects that address short-term needs for jobs and community support.

"The announcement underlines the emirate's commitment to important infrastructure expenditure, which will help to reassure investors and stimulate the wider economy," said Abubaker Seddiq Al Khouri, the managing director of Sorouh, an Abu Dhabi developer.

While the Executive Council made no mention of the Capital District or the development of Lulu Island - two key projects in the Plan 2030 - the funding of a wide array of infrastructure projects, including initial planning for the metro and light rail systems are directly in line with the plan's focus.

In addition, the Council's decision to budget for the construction of the three main museums on Saadiyat Island sent a message that the Plan 2030's most ambitious elements are still in the works. The museums are also seen as a key driver in developing the emirates' tourism sector and growing the economy.

"These major investments - along with the establishment of Yas Island as a major leisure destination, and the expansion to Abu Dhabi Airport - are crucial for the development of Abu Dhabi's tourism and hospitality sector," said David Dudley, the regional director for Jones Lang LaSalle,a property consultancy.

Funding for the continued expansion of Khalifa Port and the Khalifa Industrial Zone, as well as a new airport terminal are all foundation elements of the Plan 2030's economic focus. While the Council also incorporated elements for Al Gharbia and infrastructure such as the Mafraq Road, connecting Abu Dhabi to the region.

"The recent announcements confirm the Government taking a highly targeted and focused approach to invest in projects that have the most strategic benefit to the emirate and the biggest return on investment in terms of economic and social payback," Mr Dudley said.

Schools

Education has been a top priority in recent years and last week's announcement affirms that spending will continue to flow to build new schools. It's the volume of construction that grabs attention. The Executive Council approved 24 new schools and the refurbishment of 10 existing facilities. The plan is to build 100 new schools by 2018, creating a new environment for educating Emirati children. The new schools and standards are encouraging Emirati families to enrol their children in the government schools instead of private schools, a Government official said. The local industry will also be pleased with the inclusion of a plan to build accommodations for teachers.

Metro-Tram

Although short on detail, last week's announcement was the first definitive statement that the metro is still in the Government's near-term plans. "Provision has been made for the design of a metro and tram system," the statement said. The metro is considered a key to relieving traffic congestion in the capital, as well as linking the different districts. Speculation had risen in the construction community that the metro concept may have been put on a back-burner or scrapped altogether. But this week's statement made it clear that not only is the metro still part of the plan, it is ready to move forward. The first light-rail segment could be in operation by 2016, a Department of Transportation official said.

Cleveland Clinic

Expanding healthcare was one of the main focuses of last week's announcement, including new facilities at the world-renown Cleveland Clinic. New centres will be built for cardiac, digestive, gastrointestinal, neurological and ophthalmological specialities. In total, 14 new healthcare facilities were funded this week, including a rehabilitation centre. The idea is to bring world-class talent to Abu Dhabi and nurture the growth of more Emirati professionals. The new centres will "provide opportunities for citizens to work in one of the best global centres as doctors, nurses and specialists". But the impact will also have a dramatic effect on the local building industry. Construction executives see healthcare facilities as one of the biggest growth sectors in Abu Dhabi.

Reem Island

News that preliminary work will start on a metro-tram system for Abu Dhabi is good news for the fledgling Reem development. Plans call for mass transit to connect the island to central Abu Dhabi, integrating the developments with the other business and shopping districts in the capital. Increased infrastructure spending could also speed the pace of development on the island, which is planned to include 200,000 people. The first residents started moving on to the island last year. As more people move into projects there, congestion on the roads around the island and demands on the surrounding facilities is likely to increase. Several towers are under development, but some projects have stalled while developers wait for the market to improve.

Capital District

The Plan 2030 calls for the creation of a new Capital District covering 45 square kilometres, which would serve as the "the city's brain". It is planned to house the federal government and the federal ministries and bring together foreign embassies into one location, as well as more than 300,000 people. Designed around seven axis corridors, representing the seven emirates, the city-within-a-city is also envisioned as an education, medical and cultural hub for Abu Dhabi. Planning continues on the Capital District and several companies are involved in developing specific plans, including the integration of the metro and rail systems. But no mention was made of the Capital District in last week's announcement, suggesting it is still considered a long-term project.

North Wathba housing project

There has been no delay or slowdown in the Government's effort to build housing for citizens. The goal is to build 50,000 homes in the next 20 years and the construction is on schedule. Last week's budget announcement included funds for one of the largest projects to date, North Wathba, which will cover 4,178 hectares and include more than 13,000 residential plots. The Government plans to deliver more than 7,600 villas this year. The continued funding for national housing is welcome news to the building community. The projects provide a steady source of revenue for local builders, including Sorouh and Aldar, which make a set fee for delivering the homes to the Government.

Mafraq Road

The Dh10 billion (US$2.72bn) road will provide an important link between the capital and Saudi Arabia. It is considered a key for improving trade and commerce with the kingdom. For years it was developed as a public-private partnership (PPP), calling for the Government to work with a consortium of construction companies that would help fund the development. The development was considered an important model for PPP projects, which might be used for future infrastructure developments. But the plan stalled last spring, in its final stages. Last week's announcement was the first confirmation that the road is going forward and it is still a top priority. But now it appears it will be funded in a more traditional fashion.

Lulu Island

Developing the picturesque 400-hectare island across the bay from the Corniche was one of many future elements of Plan 2030. Designs call for modest development, including eco-resorts, restaurants and public spaces, as well as housing. The emphasis would be on cultural institutions and projects commemorating Emirati heritage.But there has been little activity on the development. And there was no mention of the island project in last week's announcement. With so many hotels and second-homes under development, there is little rush to push forward with projects on Lulu, despite the ideal location, local planners say. According to Sorouh, the master developer, planning for the island is "on-going" and will commence "at the time we feel is most appropriate for a development of this importance".

Sowwah Island

Creation of the Sowwah Island central business district was one of the cornerstones of the Plan 2030. The 114-hectare development will shift the focus of the financial community to the island and serve as a new home for the Abu Dhabi Securities Exchange. The first businesses are moving into the offices of Sowwah Square and the exchange is expected to shift its trading centre to its new facilities later this year. There was no specific mention of Sowwah in this week's announcement, but that doesn't reflect the project's prominence. It is already largely funded and moving forward. Any discussion of roads and infrastructure spending will also help expedite construction and improve access to the island.

Saadiyat Island

The Executive Council approved a timeline and budget for construction of the three museums to serve as the centrepiece for Abu Dhabi's cultural centre - the Louvre, National Museum and the Guggenheim. Some had feared the museums may have been put on the back burner, especially when the tender for the Guggenheim was pulled last year. But now the Council has committed to budgets and a timetable. The Louvre, the first on the list, is now scheduled to open in 2015. The museums will have a key knock-on effect for the entire island project. The first hotels opened on Saadiyat last year, but construction of several of the hotel and residential projects have been delayed to allow the market to catch up.