I N F R A S TRUCTURE

The enormous scale and size of

development that is taking place in
the UAE requires a comprehensive
urban planning framework.
Plan Abu Dhabi 2030 is a bold
and imaginative blueprint for
the UAE's capital city.
 165

INFRASTRUCTURE

URBAN DEVELOPMENT
WHEN THE FEDERATION WAS ESTABLISHED IN 1971, the population was Urban development in
primarily rural and infrastructure was minimal. The new Government the UAE is proceeding
immediately focused on providing facilities for its population at an unprecedented
commensurate with twentieth-century living. Housing, roads, pace with the private
airports and ports, schools and hospitals were built and power, water sector working hand in
and telecommunications supplied through the judicious use of oil hand with government.
wealth. By the time the twenty-first century had arrived, all these
facilities were well developed, most of the population was urbanised
and it was time to bring the private sector into the picture so that
the requirements of an increasingly diversified economy and rapidly
burgeoning cities could be met.
In emirates with greater land areas whole new urban conurbations
complete with the requisite infrastructure are being built to
accommodate a rising population. One of the most significant
impacts, however, on physical infrastructure in recent years has been
the building of dedicated industrial areas, commercial clusters, free
zones and massive mixed-use developments designed to provide
additional tourist facilities and vastly increase retail and office
space. Liberalised real estate and property laws have generated
unprecedented development in this sector. In addition, already
existing airports are being extended and new airports and ports built
to cater for the projected rise in tourism and trade. When the scale
of these developments is appreciated, it is not difficult to understand
the enormous influence that they are having on urban development
in the UAE, literally changing the face of the country, quite apart from
the investment that is required in transport, sewerage, electricity,
water and telecommunications to service these projects.
It is not surprising, therefore, that the UAE accounts for the bulk of
the ongoing and planned infrastructure projects in the GCC countries,
amounting to an estimated US$1.3 trillion plus of investment over
the 2007/2012 period.

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166 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

MANAGING THE URBAN ENVIRONMENT

The objective is that by Considering the sheer scale and size of development, now more
2030 Abu Dhabi will than ever a professionally designed and well-managed urban
not only be a leading environment is essential and a comprehensive urban planning
commercial, tourist and framework is required to ensure that the natural and physical
financial centre, but environment is protected in this period of rapid urban expansion.
an ecological and In recognition of this fact, an international urban planning
cultural one too. taskforce involving the world's best urban planning and community
development experts worked for over twelve months in close
consultation with the Abu Dhabi government to develop Plan Abu
Dhabi 2030: Urban Structure Framework Plan that was launched in
mid-September 2007.
The principles underpinning every aspect of the Plan Abu Dhabi
2030 initiative that will ultimately shape the future development
of the city are as follows:

• Abu Dhabi will be a contemporary expression of an Arab city,

which has people living, doing, and thriving in healthy
supportive proximity to each other.
• Abu Dhabi will continue its practice of measured growth
reflecting a sustainable economy.
• Abu Dhabi will respect, be scaled to, and shaped by the natural
environment of sensitive coastal and desert ecologies.
• Abu Dhabi will manifest its role and stature as a capital city.
• Abu Dhabi's urban fabric and community infrastructure will
Imagining a blueprint for the
enable the values, social arrangements, culture and mores of
Abu Dhabi of the future.
this Arab community.

The outcome is a bold and imaginative blueprint: in ten individual

policy statements, the plan specifies land uses, building heights
and transportation objectives for the entire metropolitan area of
Abu Dhabi, which is projected to grow to over three million people
by 2030.
Amongst its significant proposals, the plan provides for the
creation of a second centre within the city. The new Capital
District will be designed as the seat of the federal and national
 INFRASTRUCTURE 167

governments, with departmental offices and embassies, as well as

national health and educational institutions. The plan also provides
for large new areas of housing for UAE citizens, inspired by traditional
community structures, and a diverse mix of affordable housing
options for all citizens and expatriate residents of Abu Dhabi.
Alongside a number of major cultural initiatives, including the
development of the Cultural District on Saadiyat Island, which is
described elsewhere, the capital of the UAE will have a real ecological
emphasis: green belts, desert fingers to keep the dunes connected
to the sea, protection of the country's mangrove forests and its
birds and wildlife. The objective is that by 2030 Abu Dhabi will not
only be a leading commercial, tourist and financial centre, but an
ecological and cultural one too.
Urban Planning Council
Law No. 23 for 2007 established the Abu Dhabi Urban Planning
Council (UPC) as an independent corporate body to oversee the
implementation of the new urban framework and ensure it is
updated over time to continue meeting the emirate's needs. The
UPC will also facilitate constructive dialogue between the public and
private sectors involved in the real estate and property development
sector in Abu Dhabi.
Chaired by Sheikh Mohammed bin Zayed Al Nahyan, Crown
Prince of Abu Dhabi, the UPC's membership is designed to ensure
that all government policy portfolios relevant to the comprehensive
urban plan are represented, including the Executive Authority, the
Executive Council, Department of Municipalities and Agriculture,
Department of Transport, Abu Dhabi Tourism Authority, Department
of Planning and Economy, and the Environment Agency, EAD. Sheikh Mohammed bin Zayed
Al Nahyan oversees the
Urban Planning Committee
implementation of a new
Efforts are also being made in the other constituent emirates of the urban framework for Abu
UAE to ensure that development is planning-led, as opposed to Dhabi.
demand-led, which is the case in many of the world’s major cities.
As already emphasised, the objective is to provide the infrastructure
that will attract tourism, trade and industry, including valuable
service industries, at the same time creating living communities.

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168 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Dubai Strategic Dubai Strategic Plan 2015 recognises that urban planning is a
Plan 2015 recognises prerequisite to optimise land use in order to meet the needs of
that urban planning sustainable development while preserving natural resources. This, it
is a prerequisite to points out, involves comprehensive and integrated planning of the
optimise land use in elements of urban development. To implement the strategy, Dubai’s
order to meet the Urban Planning Committee, which includes key stakeholders such
needs of sustainable as Dubai Municipality, the Road and Transport Authority (RTA),
development. Dubai Electricity and Water Authority (DEWA), Dubai Land
Department, and The Executive Office, as well as developers like
Dubai Holdings, Emaar and Nakheel, are in the process of drawing
up the Dubai Urban Development Framework (DUDF), an integrated
master plan that will offer a comprehensive roadmap for Dubai's
future up to 2020 and beyond, hopefully solving the main concerns
of today's urban life. The Emirate-wide 'City and Regional Planning
Framework' will seek to establish a strong integration between
the increasingly complex governmental, quasi-governmental and
private stakeholder relationships of the city. Key elements of the
framework will include integrated land use and mobility, housing
provision, economic and demographic growth, urban character
and design, heritage management, integrated community facilities
provision, civic harmony and sustainability strategy.

PROJECTS IN ABU DHABI

One of the most exciting of the many urban projects in Abu Dhabi
is the development by Abu Dhabi Tourism Authority (ADTA), through
its commercial arm Tourism Development and Investment Company
(TDIC), of Saadiyat Island (‘Island of Happiness’), a natural island
off the north-eastern shores of Abu Dhabi City. As already indicated,
TDIC is focusing on a cultural theme for part of the island and major
museums, among them an outpost of The Louvre, in Paris, and a
Guggenheim art museum, art galleries and performing arts centres
have been designed by world-famous architects for the Cultural
Saadiyat Island
District, which will be part of an innovative, environmentally
sustainable, mixed-use leisure and retail community (see Culture &
Heritage). Two ten-lane highways will connect Saadiyat Island to the
city and the airport. The first tourist attractions will be open in 2012,
and the entire project is scheduled for completion in 2018.
 INFRASTRUCTURE 169

Saadiyat will also be linked with Al Reem Island where the Dh30
billion Najmat Abu Dhabi or ‘Star of Abu Dhabi’ is the maiden
project of Reem Developers, the real estate subsidiary of Reem
Investments. Najmat Abu Dhabi is community-focused with a
mixture of traditional and contemporary architecture. The plans
encompass business, leisure and residential areas, with marinas,
educational campuses, health and well-being facilities, plus retail
and hospitality destinations.
Shams Abu Dhabi on Al Reem was launched as Sorouh's first
prestige development in Abu Dhabi. When completed in 2011 it will
Al Reem Island
be home to approximately 70,000 people. Surouh’s Sky Tower is
destined to be the highest skyscraper in Abu Dhabi and Surouh is
also responsible for the Dh729 million Golf Gardens luxury residential
development adjoining Abu Dhabi Golf Club. In addition Surouh
has launched Saraya Abu Dhabi, a new Dh3.5 billion mixed-use
development in Abu Dhabi City, next to the Corniche Hospital.
Aldar’s flagship Central Market redevelopment in Abu Dhabi
city centre has been divided into several construction packages,
all of which are significant in their own right, with the first phase, a
modern version of the traditional Arabian Souq, due for completion
by mid-2008. Aldar's target for 2007 is to finish the massive
underground car park and basement structure, as well as installation
of some of the largest pile foundations in the Middle East. These
support the retail section, and the three tall towers designed by
world-famous architect Foster & Partners that will accommodate
residences, offices and hotels.
Aldar is also developing a largely-reclaimed island near Abu Dhabi
International Airport. The Dh147 billion Yas Island development will
be a prestigious leisure destination with mixed-use tourism
attractions, including beaches, entertainment, shopping, hotels,
residences, golf courses, equestrian facilities, and an exclusive
Ferrari Theme Park (to be completed by 2009). Yas Island will also Yas Island will be
have a Formula 1 racetrack, where the inaugural Abu Dhabi Grand home to a Formula 1
Prix will be staged in 2009 (see Sports & Leisure). racetrack where the
Nearby, Aldar has already handed over properties in the first inaugural Abu Dhabi
phases of the Al Raha Gardens project, the first freehold, residential Grand Prix will be
development in Abu Dhabi for UAE nationals. Construction is also staged in 2009.

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170 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

ahead of schedule at Al Raha Beach with the completion in mid-

2007 of dredging and reclamation activities on the eastern section
of the site forming the first three 'precincts' and producing some
3 million square metres of development land presently under
construction by the Aldar/Laing O'Rourke joint venture. The Dh54
billion mixed-use development is designed to accommodate a
population of 120,000.
Al Raha Beach development is Spearheaded by the Abu Dhabi Future Energy Company (ADFEC),
being undertaken by Aldar. the Masdar Initiative intends to create a multi-billion dollar, zero-
carbon, zero-waste city in the heart of Abu Dhabi by late 2009.
The car-free walled city will host Masdar's offices, research and
commercial facilities, residential space for employees, as well as
a science museum and edutainment amenities. Surrounding land
will contain wind and photovoltaic farms, enabling the city to be
entirely self-sustaining.
On Abu Dhabi Island, Mubadala and Singapore’s CapitaLand will
develop and manage a prime integrated real estate project on the
land surrounding the existing Zayed Sports City Stadium. At the
same time, TDIC is partnering with Abu Dhabi's Al Farida Investment
Company to construct a ‘Bridgeway at Zayed Sports City’, a Dh500
million hotel, apartment and shopping complex.
Destined to reshape the face of Abu Dhabi are plans by Khor Abu
Construction began in Dhabi Property Development (Al Masoud Group, in partnership with
June 2007 on the Dh8 TDIC) to redevelop the site of the former Abu Dhabi Tourist Club.
billion Capital Centre, a Covering 1.4 million square metres next to Abu Dhabi’s Meridien
new microcity of 23 Hotel, The Quay will be a mixed-use development with leisure,
towers, including residential and commercial elements, featuring a five-star hotel,
hotels, commercial Abu Dhabi's first aquarium, a gated residential community, quayside
buildings, residential office space and a 60-berth marina.
complexes and mixed Other signature projects in the TDIC property portfolio include
use developments. The the landmark 35-storey downtown Grand Corniche Hotel and
site, which is being Residences; the Lagoon Club, a five-star beach resort convention
developed in centre and office/residential complex; Emirates Pearl Hotel and
conjunction with serviced apartments; Angsana Eastern Mangrove Resorts and Spa,
ADNEC and ADTA, also a delightful eco-retreat; Park Rotana mixed-use development; the
features 2.3 kilometres five-star Abu Dhabi Creek Business Resorts; the five-star beachfront
of waterfront. Shangri-La Hotel, Qaryat al Beri, between Maqta and Mussafah
Developments in Dubai continue at
breakneck speed with many huge
projects nearing completion.
172 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

bridges; and Abu Dhabi Golf Hotel Residences and Spa. TDIC is also
setting environmental example by ensuring that the design of its
new office headquarters in Abu Dhabi is being built to the highest
standards in sustainable development.
In addition, Abu Dhabi Municipality has announced that it is
developing, in partnership with the private sector, the unique Dh7
billion Emerald Gateway project located along the Coast Road
halfway between downtown Abu Dhabi and Abu Dhabi International
Airport. The development includes 88 towers on both sides of a 3.5
kilometre segment of the arterial highway.
Abu Dhabi Island and its surrounds are not the only area of focus
in the building boom. As already indicated, TDIC are planning major
real estate projects to develop tourist facilities both on and offshore
Abu Dhabi’s Western Region (see section on Tourism), a vast area
with a rich natural and cultural heritage that has enormous potential,
and in the Liwa.
Major real estate development is also taking place in the inland
oasis-city of Al Ain. Aldar has unveiled a Dh2 billion mixed-use
integrated complex, Noor Al Ain, planned for the existing Al Jimi
Mall in Al Ain. Extensive work is also being undertaken to transform
Al Ain Zoo into a Wildlife Park & Resort, a mixed-use development
based on the ideas of conservation and education.
Al Ain Zoo at night.
DEVELOPMENTS IN DUBAI
Developments in Dubai continue at breakneck speed with many
huge projects nearing completion. Most of these are mixed-use
developments, incorporating, retail, residential, entertainment
and tourist facilities. Dubai is ranked third, just behind Moscow and
Shanghai, in terms of global office space construction activity and
the emirate has more than 23 million square metres of confirmed
real estate development projects currently under way.
Creekside projects are progressing smoothly, including Dubai
Festival City. About 10 kilometres of the Creek extension work,
from Ra’s al-Khor to Sheikh Zayed Road near interchange two,
was completed in 2007 to allow construction of Business Bay, the
Dh110 billion mixed-use commercial and residential freehold project
comprising 220 towers being undertaken by Dubai Properties.
 INFRASTRUCTURE 173

The creation of seven interconnected islands near the Ra’s al- Work on Downtown
Khor Wildlife Sanctuary is enabling Sama Dubai, the international Burj Dubai, being
real estate investment and development arm of Dubai Holding, to developed by the
build the Dh65 billion mixed-use The Lagoons project spread over internationally
an area of 65 million square metres. However, the most critical successful Dubai-based
part of the extension work is the next 2.2 kilometre stretch that property group
will take the Creek from Sheikh Zayed Road back to the sea. Work Emaar, is also
on this phase commenced at the end of 2007 and is planned for continuing swiftly.
completion in November 2010.
The recently constructed Dubai International Financial Centre
(DIFC) is fully operational but is already undergoing extension,
whilst Dubai World Trade Centre (DWTC) has started work on the
Dh16 billion Dubai Trade Centre (DTC) District. The plan is to
transform the entire area surrounding the DWTC Tower at the
beginning of Sheikh Zayed Road into a new business quarter in BURJ DUBAI FACT FILE
parallel with construction of Dubai Exhibition City. The first phase • At peak cooling tower
of both these projects is scheduled for completion in 2010. will require 10,000 tons of
water per hour.
Burj Dubai • System will deliver
Work on Downtown Burj Dubai, which is being developed by the 250,000 gallons of water

internationally successful Dubai-based property group Emaar, is also per day.

continuing swiftly. At the centre of this mixed-use community is Burj • Peak electrical demand
= 36 mVA equivalent to
Dubai, which is growing ever larger in its quest to rank as the tallest
360,000 100 watt light
building in the world. At 564.9 metres (1853 feet) in late September bulbs simultaneously
2007, the building height exceeded the 1670 feet Taipei 101 in switched on.
Taiwan, until then the world’s tallest skyscraper. It is reported that • Condensation water
Burj Dubai’s finished height will be 818 metres. Designed by will be collected, creating
Chicago-based Skidmore, Owings & Merrill, Downtown Burj Dubai 15 million gallons of
features The Armani Hotel and the massive shopping complex supplemental water
per year.
Dubai Mall, and Sofitel's ‘The Palace', which opened its doors in
the last quarter of 2007. • World’s longest and
fastest lifts.
Ambitious Projects • 230,000 cu. m of concrete
Offshore, Dubai’s ambitious offshore projects are rapidly becoming equivalent to a 6900

a reality. Six years after commencing work on the now famous kilometre sidewalk or the
weight of 100,000
Palm Jumeirah, developer Nakheel will have handed over 4000
elephants!
villas and apartments by the end of 2007 and work is progressing

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 Palm Deira in Dubai. on the second phase. Reclamation is under way on the Palm, Jebel
Ali, which is twice the size of the Jumeirah version and Nakheel has
revised its plans for The Palm Deira, the last and the largest of The
Palm trilogy, aligning it with the Deira Corniche project that will
reshape the stretch of land between the Hyatt Regency hotel and
Al Mamzar Park. Meanwhile, The World, a group of 300 islands
arranged to reflect the continents, is also taking shape 4 kilometres
The Palm Jumeirah will off the coast to the west of The Palm Jumeirah.
feature over 100 luxury Onshore and further inland, Dubailand, comprising six themed
hotels, 5000 exclusive worlds focusing on tourism, leisure and entertainment, is also taking
residential beach-side shape on Emirates Road. The 2.7 billion square-metre area will
villas, 5000 shoreline encompass Mall of Arabia, set to become one of the largest shopping
apartments, marinas, centres in the world and Dubailand’s developer Tatweer, part of
water theme parks, Dubai Holding, is doubling its initial investment in Bawadi, a huge
shopping malls, hospitality and leisure development that will include a 37-million-
sports facilities and square-metre shopping mall and 51 hotels accommodating more
health spas. than 60,000 rooms.
More than Dh20 billion worth of residential projects will be under
construction in Dubai Investment Park by the end of 2007, bringing
the park's total investment value to almost Dh21 billion. Phase 1 of
Residential City, the mid-cost housing component of Dubai World
Central (DWC), a hugely ambitious 140 square-kilometre urban
aviation community under construction in Jebel Ali, has been sold
out. The first residents are expected to live in Residential City by
 INFRASTRUCTURE 175

June 2009, a move timed to coincide with full-fledged operations Nakheel is building
at the world's largest airport, Al Maktoum International Airport, Dubai Waterfront on an
construction of which is currently well under way. area bigger than
Nearby, Nakheel is planning Dubai Waterfront on an area bigger Manhattan, offering
than Manhattan and Beirut, offering investors over 250 master- investors over 250
planned waterside communities with mixed-use, commercial, master-planned
residential, resort and amenity areas. The handover to investors of waterside communities.
the first phase of development, Madinat Al Arab, the planned urban
downtown at the heart of Dubai Waterfront, commenced in 2007.

REAL ESTATE IN THE NORTHERN EMIRATES

Sharjah, a short distance from Dubai, has also been the location
of a considerable amount of development in the past few years,
including hotels and mixed-use developments. One such work-in-
progress is Hanoo Holdings’ extensive Nujoom Islands development
off Hamriyah beach along the Sharjah coast, which will cost Dh18
billion and cover over 5 million square metres. Comprising
residential, entertainment, retail and leisure developments on ten
islands, all to be constructed in several phases, the project includes
an International Business and Financial Centre (IBFC). Hanoo are
also developing the Dh3 billion Emirates Industrial City project in
the emirate.
Ajman is striving to make a name for itself in real estate and
tourism, spearheaded by Ajman Investment and Development
Authority (AIDA) in conjunction with its development arm Aqaar.
The intention is to transform the emirate into a popular destination
for both tourism and business.
Approximately 200 freehold residential towers are either under
construction or have been completed since the city's freehold
regulations opened up the possibility of 100 per cent ownership
rights. Developments include the 15-tower Al Naeymiyah Towers;
Rashidiya Towers, a complex of 11 buildings and the nine-building
Al Khor Towers development completed at the end of 2007. Other
major projects scheduled for delivery by 2010 include Horizon
Towers, Falcon Tower, Ajman One and Corniche Tower. In addition,
Star Giga Establishment has launched a Dh700 million freehold

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Umm al-Qaiwain residential property development at Paradise Lakes on the Emirates

Marina waterfront Road and Goldcrest Dreams is scheduled for delivery in mid-2009.
development Dubai-based Emaar’s Dh12 billion Umm al-Qaiwain Marina
incorporates residential, waterfront project, which is being developed in agreement with
retail, and recreational the Umm al-Qaiwain government, has real potential to increase
facilities, sport and employment and boost the tourism, trade and real-estate-powered
yacht clubs, waterfront local economy.
resorts, boutique hotels, Having successfully concluded a number of real estate deals with
schools, community the government of Sharjah, the regional property developer Tameer
centres, beaches is involved in the Dh30.5 billion Al Salaam City development, an
and parks. integrated residential and commercial city off Emirates Road. Umm
al-Qaiwain government and the Emirates Investments Group LLC
(EIG) have also signed an agreement that will see the establishment
of White Bay, a master-planned community and tourism resort
on the shores of the Khor al-Beida lagoon. In addition, Umm al-
Qaiwain’s development plan includes the establishment of an airport,
a University City, a Business City, Medical City and Industrial City.
The country's northernmost emirate Ra’s al-Khaimah has entered
a determined phase of development. More than Dh50 billion worth
of projects are at various stages of planning and construction. Over
60 per cent of these are lifestyle projects that focus on booming
sectors such as tourism and real estate. Industrial development
will account for the remaining 40 per cent. RAK's Investment and
Development Office (IDO) expects investment to generate more
than 40,000 jobs in the next three to five years.
The Dh5.5 billion Saraya Islands residential and tourism project
is a joint initiative of the RAK government, Saraya Holdings and
Arab Bank.
A major beachfront resort costing Dh400 million is taking shape
by Al Hamra Palace Hotel, Nearby RAK Properties have contracted
Ra’s al-Khaimah City. with China-based China Harbor Engineering Company to carry
out the marine works for the private master-planned Dh67 million
waterfront community, Mina Al Arab. Egyptian developers are
building The Cove and Khoie Properties are involved in the Dh2.93
billion La Hoya Bay master development on Marjan Island and
have launched a Dh550 million freehold commercial development,
La Hoya Bay Business Park, as part of the project.
 INFRASTRUCTURE 177

Ra’s al-Khaimah will also be the location of a Dh850 million, Currently under
120-acre theme park, Wow RAK. Emirates Flag is a cluster of 21 construction in the Khor
commercial buildings bearing the UAE flag on the rooftops that Qurm area, WOW RAK
are being built at the Dream Industrial Park in the Ra’s al-Khaimah boasts a 12,000 square
Free Trade Zone. Rakeen, another leading Ra’s al-Khaimah developer, metre shopping mall,
has announced that it is to develop Ra’s al-Khaimah Financial City an entertainment
as part of the RAK Offshore project, the financial, legal, logistic and plaza and a resort.
insurance services free zone that is currently under development by
the RAK Investment Authority (RAKIA).
In the stunningly beautiful Emirate of Fujairah, the real estate
emphasis is naturally on improving tourism infrastructure, with the
Egyptian group Iberotel planning to spend Dh1.2 billion on six hotels
and retail facilities in the emirate.
Mina Al Fajer Real Estate LLC, a leading property developer in the
UAE, is developing a Dh600 million mountain-sea resort property
Mina Al Fajer Resort which will be completed before the end of
2009, giving Fujairah the first of what is expected to be a growing
number of world-class, exclusive real estate projects.
Abu Dhabi-based Escan PJSC’s developments in Fujairah include
Al Fanar Towers, a 30-floor residential tower, a 25-floor commercial
tower, and a 300-room hotel in the centre of Fujairah City, and
developments in the extremely scenic Wadi Al Wurrayah Valley
north of Fujairah. In agreement with Riyadh Golden Investment and
Development, Escan Properties will manage and market the Dh2
billion Fujairah Paradise development near Dibba.
Several new hotels are also being planned in the northern Al
Aqqah area, close to Dibba, where the Al Aqqah Meridien, a Rotana
hotel and a JAL hotel have already paved the way for what is
intended to become the focus of the emirate's tourist industry.

Al Aqqah Meridien Hotel

TRANSPORT in Fujairah.

‘Whether a new factory needs to move its global products to market,

a professional worker wants to get to work on time, or a tourist seeks
fresh air at a pristine beach, an efficient and well-planned transport
system is the critical factor to meeting these diverse needs.’

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 Abu Dhabi has completed a major
upgrading of the arterial expressway along the
Corniche to Mina Zayed. A modern road
network has been developed throughout the
UAE. Strategic plans for all emirates focus on
improving transport infrastructure.
 INFRASTRUCTURE 179

As Abu Dhabi Executive Council stresses in its policy agenda for A sophisticated
the next couple of years, a sophisticated transport system is critical transport system is
to the ongoing growth and diversification of the UAE’s and Abu critical to the ongoing
Dhabi’s economy. A newly created Department of Transport in Abu growth of the
Dhabi will ensure fully coordinated planning in all aspects of UAE's economy.
transport policy and development. The Executive Council has
charged the department to meet its objectives in ways that are
consistent with the council’s stated pillars, emphasising privatisation
and cost-efficiency, achieving world-class standards, employing more
Emiratis, and enhancing accountability in a transparent regulatory
environment. The department will not only have responsibility for
planning and regulation in road safety, highways management and
public transport, it will also cover the aviation and maritime sectors.
Dubai Strategic Plan 2015 focuses on the need to provide an
integrated road and transportation system to facilitate the movement
of people and goods while improving safety levels for all system
users. This involves addressing current traffic congestion problems
and accommodating future needs by increasing the use of public
transport and decreasing reliance on private vehicles, at the same
time improving the capacity of road networks and transportation
systems, whilst securing optimal use through demand management
and accident and emergency management.

ROADS & BRIDGES

New highways connecting Abu Dhabi City with the mainland via Al
Suwwah, Saadiyat and other islands, including ten additional
bridges, as well as new routes out of the city for heavy vehicles are
proposed under Abu Dhabi’s new urban framework. The truck
roads will connect the new port and industrial areas with the rest
of the country without intersecting with city roads. Other measures
include improving pedestrian pathways and reconfiguring streets to
improve traffic flow.
To date, Abu Dhabi has completed a major upgrading of the
arterial expressway along the Corniche to Mina Zayed, relieving
traffic congestion in the city centre and improving access to Mina
Zayed. Numerous underpasses are designed to make the area

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pedestrian friendly and give easy access to the delightful walks

along the seaside Corniche or in the many landscaped parks and
activity areas in the new development. Internal roads in the city
have also been upgraded, a third bridge is nearing completion to
improve access from the mainland to Abu Dhabi Island and roads
and interchanges have been remodelled around the airport to
accommodate major developments there.
Construction of the regional network of roads and bridges on Al
Reem commenced in June 2007. To ease the pressure on the roads,
Al Reem will have its own mass transit system linked to the proposed
mass transit system for Abu Dhabi.
New transport systems have also been designed for Abu Dhabi’s
recently built urban areas, such as Khalifa bin Zayed and Mohammed
bin Zayed cities. Since major infrastructure developments are taking
place in the Western Region, there is also a renewed emphasis on
transportation there.
Massive building projects in Dubai have increased traffic and led
to heavy congestion, especially at peak times. This is being tackled
by the rolling out of new bridges, road improvements and a focus on
New transport systems public transport, including a new metro system, all part of Dubai’s
have also been Roads and Transport Authority’s (RTA) comprehensive strategic
designed for Abu transportation plan that covers Dubai’s needs up to the year 2020.
Dhabi’s recently built Under the plan RTA intends to spend Dh44.04 billion (US$12 billion)
urban areas, such as on upgrading the emirate’s road network, building 500 kilometres
Khalifa bin Zayed of new roads, 95 interchanges, nine ring roads and increase the
and Mohammed bin number of lanes crossing the Creek, a notorious bottleneck.
Zayed cities. Since The number of traffic lanes crossing the Creek that runs through
major infrastructure the heart of Dubai is being increased from 19 in 2006 to 47 by 2008,
developments are and to 100 by 2020. The first phase of Business Bay Crossing was
taking place in the opened to the public in early 2007 to try to ease traffic flow on the
Western Region, there Maktoum and Garhoud bridges, and a temporary floating bridge
is also a renewed opened in June 2007 to assist with traffic while the capacity of
emphasis on Garhoud Bridge is being doubled to 16,000 vehicles per hour. Once
transportation there. completed, the Dh800 million, 15-metre-high Business Bay Crossing
linking Deira with Bur Dubai will stretch for 1.6 kilometres with 13
lanes both ways capable of carrying 26,000 vehicles per hour.
 INFRASTRUCTURE 181

The RTA has awarded a Dh289 million contract for phase three of
the strategically important Dubai bypass road that links the Northern
Emirates with Abu Dhabi. The RTA is also working on projects to
expand the 35-kilometre stretch of Emirates Road between the
Sharjah–Dubai border and Arabian Ranches roundabout and is
transforming Al Ittihad Road into an expressway from Al Garhoud
Bridge to facilitate motorists commuting between the two emirates.
In cooperation with the RTA, Sharjah Town Planning and Survey
Department (STPS) is expanding Emirates Road within its own
borders from the existing three to four lanes and will have completed
its section of the Dh800 million Al Ittihad Road expressway project
by the end of 2008. The opening of the new King Faisal Bridge at the
intersection of King Faisal and Al Wahda Roads at the end of
February 2007 was welcome news for commuters between Dubai,
Sharjah and Ajman. Construction was carried out by the Department
of Public Works as part of the Dh2.1 billion Sharjah government
road improvement scheme.
Another strategy employed by Dubai RTA in 2007 to effectively
manage traffic in Dubai and minimise congestion was the institution
of Salik, a free-flow system allowing traffic to move speedily through Construction of a
two tolling points at Al Garhoud Bridge and Sheikh Zayed Road UAE-wide, high-speed
near Mall of the Emirates. The RTA has also introduced the Dubai railway service
Award for Sustainable Transport (DAST) to encourage the public is to begin early in
and private sector to play a constructive role in realising the RTA's 2008. The first phase
objectives in easing traffic congestion and increasing the use of of the 800-kilometre
public transport in the city. passenger and cargo
network will start
PUBLIC TRANSPORT
operating in 2013.
To meet the needs of a rising urban population, Abu Dhabi’s new
urban planning initiative envisages a layered interconnected
public transportation network that would reduce reliance on cars.
The plan includes a high-speed passenger rail line, originating from
a train station in the Central Souq, connecting the downtown to the
new Capital District, airport and ultimately Dubai. A freight rail line
will also operate between the new port, airport, Jebel Ali and the
GCC countries. The rail link will be augmented by two high capacity

@ www.uaeinteract.com/roads
 Abu Dhabi's planned metro lines running between all the main districts in Abu Dhabi:
public transportation one originating on Saadiyat Island and Al Mina, turning left at
network includes high- Central Station and onto the Airport Road, Capital District and Raha
speed rail links, high- Beach; the other line crossing downtown from east to west,
capacity metro lines connecting Al Reem and Al Suwwah to the Central Station and
and a fine-grained Marina Mall. In addition, a fine-grained network of streetcars, buses
network of streetcars, and ferries will ensure that no-one will have to walk more than five
buses and ferries. minutes to use public transport.
Dubai Road Transport Authority operated 504 buses on 69 lines,
transporting 88 million passengers over approximately two million
trips during 2006. Joining the fleet in 2007 and 2008 will be 620
new luxury buses to run on intra-city and inter-city routes, including
300 articulated (long) buses and 170 double-deckers, for which the
RTA has paid Dh1.9 billion.
Projections are that public transport buses will cover 95 per cent
of Dubai City with a total of 160 routes by 2010. At present,
however, the RTA is working determinedly to increase the current
6 per cent public bus use to 30 per cent. Enticements to users
include air-conditioned bus stops, luxury buses, dedicated bus lanes
and an increased number of routes. These will be integrated with
metro stations and water transport to create an effective public
transport system.
 INFRASTRUCTURE 183

Traditional abras are used by commuters and tourists as a Dubai Road Transport
convenient and picturesque method of crossing Dubai Creek. Authority operated
However, these have now been supplemented by a water bus- 504 buses on 69 lines,
service that commenced on 15 July 2007 and the RTA has signed transporting 88 million
a two-year, Dh8.9 million agreement with Singapore’s Penguin passengers over
Company to operate and maintain the service. approximately two
million trips during
Dubai Metro 2006. Joining the fleet
Dubai’s Dh15.5 billion, 74.6-kilometre metro project launched in in 2007 and 2008 will
October 2005 is on schedule with work taking place around-the- be 620 new luxury
clock. Trial runs are timetabled for June to August 2009 before the buses to run on
metro actually commences operations in September 2009. intra-city and inter-city
Major construction work is in evidence on the 52.1-kilometre Red routes, including 300
Line between Jebel Ali Port and Al Rashidiya. Progress is most visible articulated (long)
in the construction of the 44.1 kilometres of elevated track on which buses and 170
the trains will travel. However, work is also proceeding apace on the double-deckers.
12.6 kilometres of track that will run underground, 300 metres of
which will be under the Creek. Tunnelling using highly specialised
equipment commenced in February 2007 on the 4.7 kilometres
underground section of the Red Line and tunnelling for the 7.9
kilometres of underground Green Line beneath Deira and Bur Dubai
will start in April 2008, to be completed in October 2008.
When finished, 87 fully automated driverless trains will initially
run on the Red and Green Lines and a fully functional metro system
will be able to carry about 1.8 million passengers per working day.
The RTA is also working on plans for Blue and Purple Lines to
provide transport coverage to other areas of the city. Construction
will start in March 2009 and is scheduled to finish in December 2012
on the Dh10 billion, 49-kilometre Purple Line, running between Dubai Metro is currently under
Dubai International Airport and Al Maktoum Airport. construction and is due to
commence operations in
September 2009.

ELECTRICITY & WATER

The massive number of tourism and real estate projects under
development, increased industrialisation, expanding agriculture
and a rapidly growing population have placed severe pressures

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The current total on electricity and water supply in the UAE and considerable
capacity for electricity effort, including heavy investment in power generation and water
production in the UAE desalination, is being expended to meet the burgeoning demand.
is around 16,670 MW The UAE consumes more than 3.2 billion cubic metres of water
compared to 9600 MW every year and is near the top of the global index for the highest
in 2001. Industry water consumption per capita. At a conservatively estimated
estimates expect the minimum of 10 per cent per annum until 2010, the UAE has the
capacity to rise by 60 highest projected increase in demand within the GCC region. Most
per cent to almost of the UAE’s water is produced by desalination, usually in conjunction
26,000 MW by 2010. with power generation, and older plants are being expanded and
new plants are being built to meet the enormous demand.
The current total capacity for electricity production in the UAE is
around 16,670 MW compared to 9600 MW in 2001. Industry
estimates expect the capacity to rise by 60 per cent to almost
26,000 MW by 2010. Abu Dhabi Water and Electricity Authority
(ADWEA) accounts for the bulk of capacity, followed by Dubai
Electricity and Water Authority (DEWA), Sharjah Electricity and
Water Authority (SEWA), and the Federal Electricity and Water
Authority (FEWA). At present, each service provider operates as a
separate entity but a common federal framework for the water
and electricity sector is under study by the Ministry of Energy.
The need for power and water is in turn pushing up demand for
9000
natural gas to fire most of the power and desalination plants. In
8000
July 2007 the Emirates began importing gas from Qatar through
7000
the new Dolphin pipeline. The next step is to carefully ramp up
6000

5000
production until the targeted pipeline throughput of 2 billion standard
4000 cubic feet per day is reached in early 2008.
3000 The increasing demand has also brought a new awareness of the
2000 need for diversification of energy resources. While power generation
1000 from renewable energy sources is still relatively uncommon in
0
2003 2004 2005 2006 2007 the Middle East, the number of pilot projects, hybrid plants and
IWPP renewable energy research areas is on the increase. Progress has
non-IWPP also been made in deliberations on a proposed GCC common
Abu Dhabi IWPP and
nuclear programme for peaceful purposes and on-going discussions
non-IWPP electricity in are taking place with the International Atomic Energy Agency in the
gross megawatt. framework of the 'Jabir summit’ held in Riyadh in December 2006.
The UAE consumes more than
3.2 billion cubic metres of
water every year.
186 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Excessive pumping and GROUNDWATER

the lack of rainfall have Although domestic water, especially in the larger emirates of Abu
been depleting Dhabi and Dubai, is mainly produced by desalination, groundwater
groundwater levels is a very important water resource, especially for agriculture and
and affecting water forestry. However, excessive pumping and the lack of rainfall have
quality in many aquifers been depleting groundwater levels and affecting water quality in
in the country. many aquifers in the country. To assist in remedying this, 115
rainfall-retention dams have been constructed, primarily in the
Northern Emirates, to enhance the groundwater recharge. A large
number of monitoring wells have also been installed within the
vicinity of recharge dams to assess their efficiency and groundwater
levels are measured monthly.
Since mid-2005, the Environment Agency – Abu Dhabi (EAD) has
been responsible for groundwater resources management. The
agency's monitoring activities include development of a water
resources database, a well inventory and registration process, a new
registration process for water-well contractors and water resources
consultants, establishment of a groundwater resources monitoring
network, and development of a water resources atlas. EAD is
also in the process of developing an integrated water resources
management plan. And finally, as a major step towards controlling
groundwater development, a water well drilling law was passed in
March 2006 and the well-permitting policy is managed by EAD.
A satellite imagery project run by the Centre for Remote Sensing,
Boston University, USA, in cooperation with SEWA, which has been
in operation for five years, is also crucial in preparing a long-term
strategic plan for the rational use of groundwater resources in
Sharjah and other Northern Emirates.

CONSERVATION
Given the scarcity of the country’s water resources and the acute
awareness that regional water shortages are a major environmental
challenge, water resource management and water conservation is
a priority.
Proper management of limited available water resources was the
subject in 2007 of a number of conferences and seminars, including
the Water Resources Development, Conservation and Management
 INFRASTRUCTURE 187

conference ‘Challenges for Water Sustainability’ organised by the A great deal of

College of Graduate Studies at the UAE University Al Ain with the scientific and applied
cooperation of Schlumberger Water Services. One of the conclusions research is needed if
reached was that a great deal of scientific and applied research is sound management
needed if sound management policies are to be implemented to policies are to be
address problems related to the quantity and quality of water implemented to
resources in the UAE and the GCC countries. address problems
Public awareness campaigns are also employed to advise on related to the
how to use water wisely and avoid water waste or over-use of quantity and quality
water. In particular, a drive to cut down water usage in certain of water resources
high consumption areas, such as labour camps and hospitals, is in the UAE.
under way.
In line with the overall federal strategy, during the next three
years the Ministry for Environment and Water (MEW) will focus
on reducing the use of groundwater and shift to alternative sources
such as desalination. Also, the ministry will increase its groundwater
surveillance network to more than 183 wells, increase the number
of observation networks by 35 per cent and complete the building
of 11 freshwater channels. The ministry’s plans include a renewed
focus on modern irrigation methods, the reuse of waste water and
a national plan for the maintenance of dams. The ministry will also
seek to train UAE nationals in and foster an increased awareness of
rational water use.

ALTERNATIVE ENERGY
Nature may be able to assist the UAE in meeting rising utility needs,
with solar and wind energy possibly offering not only a way to meet
demand but at the same time assist in reducing carbon emissions:
the generation of 200 MW of renewable energy would cut annual
carbon emission rates by 1.5 million tonnes. Studies are being
undertaken into the wider use of solar power, especially for use in
desalination, and the private sector is also being encouraged to
develop alternative systems with the result that many new buildings
are being designed and built with energy efficiency in mind.
With the recent launch of the Masdar alternative energy initiative,
Abu Dhabi is intending to diversify the UAE’s energy and technology
offerings, becoming not only a world leader in oil but energy more

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188 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Masdar, the landmark broadly (see sections on Economic Development and Environment).
initiative by the Abu Masdar is building a complete walled ‘city’ in Abu Dhabi, which will
Dhabi government to be solar powered and will house 47,000 people. The city, which is
promote advanced planned to open in late 2009, will be a zero-carbon, zero-waste zone.
energy and Projects already in active development include both photovoltaics
sustainability (PV) and concentrating solar power (CSP) and Masdar has formed
worldwide, has been a key partnership with Conergy AG of Germany, which will enable
named 'Sustainable it to provide up to 40 MW of capacity, enough to power 10,000
City of the Year' at the homes, through the use of photovoltaic systems. As the demand for
Euromoney and Ernst & green energy increases Masdar, with Conergy’s assistance, hopes to
Young Global further develop, design and roll-out advanced alternative energy
Renewable Energy systems, including state-of-the-art solar cooling, wind and biomass
Awards 2007. technologies for both household and industrial purposes.
The alternative energy movement is in its infancy, but a number
of interesting projects are up and running already. For example, in
pursuit of the emirate’s goal of developing real solar powered
solutions for daily living, Abu Dhabi Public Transport Department
has erected a prototype solar-powered bus shelter in the capital.
The public can enjoy facilities such as cash withdrawal machines,
access to the internet, coffee and soft drinks vending machines,
and public telephones inside the shelters.
In Dubai, solar-powered parking meters have been in use for some
time. These are now being joined by solar-powered street lights and
solar-powered water taxis.
Dubai is also focusing on alternative ways of meeting soaring
energy demands brought about by its huge construction programme.
Plans have been unveiled to build a 68-storey building with a
revolving 312-metre-high tower carrying solar panels and wind
turbines that will generate enough electricity to meet the energy
needs of five other similarly-sized buildings.
In addition, property developer Tecom Investments is investigating
the use of solar energy to provide electricity to some of its new
projects. A prototype of a floating solar island, which could be used
to feed a thermal plant, to power a desalination plant, or both, is
currently being developed at the headquarters of the Swiss centre
of electronic and micro technology (CSEM or Centre Suisse
d'Electronique et de Microtechnique) in Ra’s al-Khaimah. The US$5
 INFRASTRUCTURE 189

million (Dh18.35 million) project is funded by the Ra’s al-Khaimah From January 2008, all
government and the prototype, due to be operational by the end of new buildings in Dubai
2008, will be tested in the desert before being launched at sea. will be constructed in
accordance with
ABU DHABI international,
Abu Dhabi Water and Electricity Authority (ADWEA) estimates that environment-friendly
real estate and industrial projects planned for Abu Dhabi will require green-building
a formidable expansion in power generation capacity up to 2020. standards.
With the fast pace of growth in Abu Dhabi, early assessment of the
future power demand is a prerequisite as three and half to four years
are required to build and commission new power and water stations.
From a current peak demand of 4790 MW, ADWEA is presently
forecasting that the total system peak demand in Abu Dhabi Emirate
will rise to 8735 MW by 2010 and to 14,340 MW by 2020 (base
forecast). The demand for power in Abu Dhabi is expected to grow
by 900 MW or 10 per cent per annum from 2010 to 2013. At
present, available capacity is 8400 MW.
To meet the discrepancy, optimisation and expansion of existing
facilities as well as development of greenfield sites is ongoing. Over
Dh50 billion has been pumped into the water and power sector
since Abu Dhabi embarked upon its privatisation drive in 1998
pushing the emirate's generating capacity to more than 7000 MW
and 500 MIGW daily from these projects.
Sceptics had originally voiced concern over Abu Dhabi’s pioneering
privatisation plans, particularly the UAE's first independent water
and power project (IWPP), Taweelah A-2. Today, Taweelah A-2 is
being used across the region as a blueprint for a successful
privatisation strategy and Abu Dhabi will soon be 100 per cent
privatised in this sector.
France's Total and Belgium-based Suez Energy are investing
US$400 million (Dh1.46 billion) to expand Abu Dhabi's second
independent water and power project adding 250 MW of power to
the Taweelah A1 plant. When the expansion is completed, total Solar powered road sign.
capacity will rise to 1600 MW. Commercial operations at the
expanded plant will commence in 2009. Taweelah A1, which was
commissioned in 2003, has a current capacity of 1350 MW of power
and 84 MIGD of water.

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190 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

ADWEA also plans to Singapore's SembCorp Utilities is developing the Dh6 billion
privatise Abu Dhabi Fujairah I project. After takeover and expansion, the project will
emirate's sewerage have a capacity of 880 MW and 102 MIGD daily. In addition, amidst
sector. Here too, tough competition, international consortia competed to bid for Abu
major companies are Dhabi's Dh11 billion eighth independent water and power project
invited to own (IWPP), Fujairah II. The deal was acquired by a consortium of
40 per cent as well International Power, of the UK, and Marubeni, of Japan. This
as to provide finance, second-phase of development calls for the addition of 2000 MW
management and of electricity and 130 MIGD. As with the previous privatisation
operation for two paradigms, the successful bidder acquired a 40 per cent stake in
new sewage the project and will finance, build and operate the plant, which will
be financed by a group of local, regional and international banks
treatment plants.
and financial institutions.
ADWEA is also implementing a series of projects in the Western
ELECTRICITY PEAK DEMAND Region, in Zayed City, Ghiyathi, Abu Al Abyadh Island, Jenanah
HIGH FORECAST Island and other areas, in addition to a desalination plant of 2
2010 2015 2020 million gallons capacity on Al Yasat al-Soghra Island. In January
ABU
DHABI 7,011 10,412 11,412 2007 ADWEA awarded a Dh346.68 million (US$94.33 million)
AL AIN 1,741 2,136 2,460 contract to India's Larsen & Toubro (L&T) for the construction of
WESTERN six 33/11kV primary electrical substations in Al Ain. The project will
REGION 9,822 13,947 14,340
be completed by mid-2008.

TAQA
The Abu Dhabi National Energy Company (TAQA) is an energy
investment company founded in June 2005 in which the government
of Abu Dhabi through ADWEA owns 51 per cent. Because of its 90
per cent stake in six of the nine independent water and power
producers (IWPP) in the Emirates (the remaining 10 per cent is
owned by ADWEA), TAQA has been instrumental in providing over
85 per cent of Abu Dhabi's power and water desalination needs.
TAQA’s interests include oil and natural gas exploration and
production as well as power generation, and its shares are traded on
Abu Dhabi Securities Market (ADSM).
TAQA has also ventured into overseas acquisitions (see section on
Economic Development). Major deals in 2007 included the purchase
of CMS Generation, a subsidiary of the US integrated energy firm
CMS Energy (CMS). The transaction solidifies TAQA's interests in two
 INFRASTRUCTURE 191

power/water plants in the UAE and introduces TAQA to four new

countries in its global network.
Dubai Electricity and
DUBAI Water Authority
(DEWA) currently holds
Dubai Electricity and Water Authority (DEWA) currently holds a
a monopoly to produce
monopoly to produce and sell electricity in the emirate. But Dubai
and sell electricity in
may open its power generation industry to private foreign investment
the emirate. But Dubai
in an effort to meet demand that is surging by a minimum of 12 to may open its power
14 per cent annually, with some commentators suggesting that generation industry to
demand growth was in the region of 30 per cent in 2006 and could private foreign
be up to 20 per cent annually. Dubai may, therefore, need foreign investment in an effort
companies to help fund the estimated Dh135.79 billion (US$37 to meet demand that
billion) required to double generating capacity to 11,100 MW by is surging by a
2011 and quadruple projected capacity to 25,000 MW, by 2017. As minimum of 12 to
already mentioned, alternatives such as renewable energies could 14 per cent annually.
also assist with satisfying runaway demand.
DEWA is already investing heavily in conventional power
generation to expand capacity: Phase III of Aweer Power Station
(Station H), costing Dh1.64 billion, is scheduled for completion in
mid-April 2008 when its production capacity will be 1800 MW,
bringing DEWA’s total production capacity to 7200 MW by the
summer of 2008.
DEWA also awarded contracts worth US$1.7 billion in March
2007 to South Korea's Doosan Heavy Industries & Construction and
Italy's Fisia Italimpianti to build phase one of Jebel Ali M adding
1330 MW of power and 70 MIGD water of water to capacity.
Doosan also signed a new new US$500 million deal for phase two,
bringing its combined orders at Jebel Ali to 2000 MW. Construction
began in March 2007 and completion is scheduled for 1 March 2010.
In addition, Fisia has been awarded a contract worth US$247 million
for the M3 plant.
Dubai is also planning to build a multi-billion dollar plant that
would be capable of producing 9000 MW of electricity and 600
MIGD of desalinated water. The new complex will be located next
to the Dubai World Central complex and the giant Jebel Ali port
and free zone where most of the emirate's power generation
capacity of about 5000 MW is presently situated. In the next three

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192 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

years, DEWA intends to undertake additional projects to meet the

remaining deficit, including the addition of 5000 MW at new sites
at Al Habab power facility.
Other avenues being explored to satisfy demand include the
possibility of importing electricity: in April 2007 Dubai and Iran
signed a memorandum of understanding (MoU) that could see
Iran supply Dubai with electricity via a 180-kilometre (110-mile)
underwater cable.

SHARJAH
Sharjah Electricity and Water Authority (SEWA) has earmarked
Dh4 billion for the Hamriyah power and water project to assist in
catering to the spiralling demand for these utilities due to economic
and industrial development in the emirate. In May, SEWA
commissioned the third and fourth units with combined capacity
of 200 MW at Hamriyah power station. The new projects increased
power-generating capacity to 2382 MW during the summer. SEWA
also commenced operations at two new power-generating units
with combined capacity of 80 MW at Wasit Power Station in August
2007, boosting total capacity at the Station to 960 MW.
In addition, SEWA announced plans later in 2007 to expand a
400 MW power plant to 2580 MW by 2014 to meet demand, which
it claims is surging as much as 9 per cent annually.

NORTHERN EMIRATES
The fast developing Northern Emirates are also set to see an increase
in water supply in the next few years as the Federal Electricity and
FEWA is planning Water Authority (FEWA), the utility body for Ajman, Ra’s al-Khaimah,
to construct Fujairah and Umm al-Qaiwain, is planning to construct major
additional desalination plants in the region in an overall shift towards
desalination plants desalination dependence. These include a 6 MIGD desalination
in the Northern plant in Ajman, which will cost about Dh80 million.
Emirates in an A plant that will produce 10 MIGD, with an additional expansion
overall shift towards capacity of 20 MIGD, is being considered for Ra’s al-Khaimah. A
desalination smaller Dh40 million facility has been set up in Fujairah, giving the
dependence. emirate access to an additional 3 MIGD.
 INFRASTRUCTURE 193

FEWA will also provide 960 MW of additional power to the

Northern Emirates by the end of 2007, including six gas turbines of
100 MW each between October 2007 and April 2008. By 2009 they
will have built two more steam turbines of 180 MW each. The IWPP
projects at Fujairah 1 and 11, managed by Abu Dhabi's ADWEA in
association with foreign investors, will also significantly increase the
availability of power and water in the Northern Emirates.
In addition to FEWA’s input, a 16 million gallon water desalination
plant is being constructed by IMDAD, a joint venture between the
government of Umm al-Qaiwain and the Saudi based Al Rajhi
Investment Group, in Umm al-Qaiwain. Another tender for the 35
MIGD transmission and distribution network was floated at the
end of June 2007.
Electricity and water plant in
Fujairah.
CONNECTING GRIDS
FEWA is focusing on completing the UAE's Dh840 million (US$228.7
million) nationwide power grid by May 2008. The power link MW
between Dubai and Abu Dhabi was completed in May 2006 and the TAPCO 1,232
interconnection with Sharjah was inaugurated at the end of May AMPC 295
2007, following the commissioning of a new 400 kilo volt sub-station ECPC 763
in Dhaid. The next phase will be to connect the Dhaid station to GTTPC 1,415
Fujairah. The grid will provide more stable electricity supply and
SCIPCO 1,577
allow energy exchange among emirates.
APC 2,444
In addition, the US$1.1 billion first phase of the US$7 billion Gulf
Cooperation Council (GCC) power grid linking the six member states Fujairah
is expected to be commissioned by the first quarter of 2009. More IWPP 641
than 30 per cent of the construction in the first phase, which will link TOTAL 8,367
Saudi Arabia to Bahrain, Kuwait and Qatar through 800 kilometres
of transmission lines, was completed at the end of June 2007. The
second phase will link the UAE with Oman, and the resulting two The new GCC power
mega grids will be joined in the final phase. grid is expected to
Once the grid is ready, Kuwait and Saudi Arabia will each receive reduce the cost of
an extra 1200 MW of power capacity, the UAE will receive 900 MW, power generation for
Qatar 750 MW, Bahrain 600 MW and Oman 450 MW. The project member countries and
is expected to reduce the cost of power generation for each country offer a channel for
and offer a channel for emergency assistance when needed. emergency assistance.

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194 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

TELECOMMUNICATIONS
Telecommunications across all platforms in the UAE are fast and
effective with fixed-line, internet and mobile connectivity amongst
the best in the world. The 2007 Global Information Technology
Report (GITR), commissioned by the World Economic Forum (WEF)
in cooperation with Insead business school, puts the UAE at the top
of the ‘Net-worked Readiness Index’ in the Middle East and North
Africa (MENA) region and ranks the UAE in twenty-ninth position
worldwide out of 122 countries, beating many European nations.
The UAE’s high-ranking is directly related to the growing emphasis
that the country has been placing on the role of ICT for
development in recent years with the launch of a number of ICT
initiatives and the promotion of ICT penetration and usage.

TELECOMMUNICATIONS REGULATION
The Telecommunications Regulatory Authority (TRA), established
by Federal Decree No. 3 of 2003, is tasked with the challenge of
operating a regulatory framework to facilitate competition in
the UAE’s telecoms market, at the same time enhancing, promoting
and ensuring quality of services. The TRA, governed by a Board of
Directors, answers to the Supreme Committee for the Supervision of
the Telecommunications Sector (SCTS), which is empowered to
establish and oversee the UAE National Telecom Policy.
Since its establishment, the TRA has become an active member
of the UN’s International Telecommunication Union (ITU), has
chaired its seventh Global Symposium for Regulators hosted by
TRA from 5 to 7 February 2007, at Dubai World Trade Centre;
and it has become the President of the Arab Telecommunications
Authorities Union for the year 2007.
Prior to the establishment of the TRA, Etisalat, which was formed
in 1976, was the sole telecoms operator in the country. The new
regulatory body has already facilitated the launch of du, an integrated
telecommunications provider, into the market. Under the powers
conferred on it by federal law, the TRA has now licensed Etisalat
and du, and the latter was formally activated on 12 February 2007.
Since population growth targets are set to hit 5 million by 2010, the
launch of a third telecoms provider in the Emirates is inevitable.
 INFRASTRUCTURE 195

ETISALAT
Since its foundation, Etisalat has been investing in infrastructure Etisalat provides
providing fixed-line telephony, fixed and wireless secure internet fixed-line telephony,
access and mobile coverage to the UAE. By late 2007, the corporation fixed and wireless
had more than 6.3 million customers on its mobile phone network, secure internet access
1 million active users of 3.5G and 3G data services. 1.3 million and mobile coverage
subscribers to the fixed line network, 800,000 subscribers and to the UAE. By late
over 2.5 million internet users. When du’s 1 million mobile 2007, the corporation
customers are included, the telecom sector’s penetration rate is the had more than 6.3
highest in the region, and comparable to the highest in the world. million customers on
The corporation announced strong results for the nine-month its mobile network.
period, posting a 30 per cent jump in consolidated revenues to reach
Dh15.38 billion. Etisalat's net profit for the period stood at Dh5.534
billion. Net assets increased in value by 21 per cent in the period,
reaching Dh25.828 billion by the end of September. Capital
expenditure was Dh2,28 billion during this period.
Etisalat has also established a significant geographical footprint
stretching from West Africa to Pakistan, signing management
contracts and obtaining significant stakes in telecommunications
operators in numerous countries. The Etisalat brand was taken to
Egypt in 2007 with Etisalat Misr launched on 1 May 2007 and Etisalat
Afghanistan commencing operations later in the year. In September
2007 it announced plans for a point of presence in Singapore, its
first in east Asia and sixth worldwide.
Middle East Magazine ranked Etisalat as the largest company in
the UAE and fourth largest in the Middle East based on financial
performance and capital growth, and the Financial Times continues
to place Etisalat in the leading 500 companies in the world. It was
also ranked as the sixth best performing Arab company by Forbes Middle East Magazine
Arabia magazine for 2006 from amongst over 1600 Arab joint stock ranked Etisalat as the
companies in various sectors. largest company
Etisalat's latest awards include ‘Customer Service Provider of the in the UAE and fourth
Year 2006’ and overall ‘Service Provider of the Year 2006’ in the largest in the Middle
Middle East and Africa by Comms MEA magazine. Arabian Business East based on financial
has also awarded Etisalat for its contribution to the local community performance and
with a special award for corporate social responsibility in 2006. capital growth.

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196 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

DU
As already outlined, in the interests of competition a political decision
was made to open up the telecommunications market. Emirates
Integrated Telecommunications Company or du was subsequently
formed with a paid-up capital of US$1.1 billion, offering voice, data
and entertainment on mobile networks and converged broadband,
TV, and landline.
In January 2006 the takeover of the Tecom telecommunications
company that formerly operated Dubai free zone networks, and
Emaar's former Sahm Telecom network gave du a good working
base to develop the company.
Prior to an IPO in 2006, 50 per cent of du was owned by the
UAE Government, and the remaining 50 per cent split equally
between Abu Dhabi's Mubadala Development Company and
Emirates Communications Technology Company. Post-IPO up
to 20 per cent of the company can be controlled by foreign
individuals and institutions permitted to purchase du shares on the
Dubai Financial Market.
du has made a significant investment in building infrastructure
and operational capabilities as well as recruiting and developing
staff, amassing nearly 250,000 mobile customers in the first six
weeks of the launch of its network in February 2007. At this point
du covered 80 per cent of the populated areas of the UAE, falling a
little short of the 85 per cent required under the telecom licence
issued by the TRA. By late November, du had one million mobile
phone subscribers and had strengthened its network coverage across
the UAE. du also launched its fixed-line network in July, serving
Dubai, Abu Dhabi and Sharjah only. However, the company now
provides fixed-line services to the whole of the Emirates.

VOIP
At present, Etisalat and du are only permitted to use voice over
internet protocol (VoIP) to provide local calls to their subscribers.
Computer-to-computer calls are also allowed, but computer-to-
phones calls, or vice versa, will not be considered for introduction
in the UAE until the TRA has concluded a public consultation
process in mid-2008. The consultations will involve the UAE’s
two current operators, Etisalat and du, as well other companies
interested in offering the service. There is no time-frame for
completing the process.

THURAYA
Abu Dhabi-based Thuraya Satellite Telecommunications Company,
a leading provider of cost-effective, satellite-based mobile telephone
services to nearly one-third of the globe through dual-mode handsets
and satellite payphones, is majority owned by Etisalat.
Thuraya-1, the first satellite initiated from the Middle East and the
heaviest satellite launched to date, was successfully deployed in
2000. A second satellite, Thuraya 2, was launched in 2003 and a
third Thuraya 3, costing between Dh551 million to Dh734.62 million
(US$150–US$200 million), was launched on 18 November 2007.
Thuraya 3 replaces the ageing Thuraya 1, while Thuraya 2 will
continue providing coverage for the Middle East, Europe, North

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198 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Thuraya has continued Africa and some other markets. Thuraya 3 will bring countries of
to make strides by the Asia-Pacific region under Thuraya's footprint and extend its
expanding commercial coverage to nearly two-thirds of the globe's population.
operations in core Thuraya has continued to make strides by expanding commercial
markets, particularly operations in core markets, particularly the huge untapped African
the huge untapped region. Additionally, the company reinforced its distribution network
African market. by signing service provider agreements in countries such as
Kuwait, Turkey, Egypt, Sri Lanka, Pakistan and the Netherlands,
and broadened its delivery channels with several new international
satellite service distributors.
Starting an aggressive marketing campaign in the Asia–Pacific
region ahead of launching the third satellite, Thuraya Maritime was
launched in August 2007 and Thuraya IP at the end of 2007. The
former is a second-generation communications technology package,
to be used widely by fishing boats in China and by leisure boats
owned by other subscribers, while the latter is a USB (universal serial
bus) connector data terminal with a speed of 444 kbps (kilobit per
second). Thuraya hopes to double its current subscribers of 250,000
within a three-year period after the launch of its third satellite.

EMIRATES POST
Emirates Postal Corporation (EPC) was formed in 2001 following
restructuring of the UAE General Postal Authority. Since then a
major change in the corporation’s business model and operational
strategies, including the introduction of integrated IT systems,
automated sorting centres and agreements with international
postal authorities, as well as the addition of new business streams
in logistics, financial services, direct marketing, mail fulfilment
and other areas, has resulted in a remarkable turnaround in the
companies fortunes.
Emirates Post recorded a net profit of Dh161 million (US$43.87
million) for the year 2006, an increase of 19 per cent over the
previous year. During this period, the postal network expanded
by 4 per cent to 83 branches. Overall, mail rose by 16 per cent,
and the parcel segment increased by 15 per cent. The number of
 INFRASTRUCTURE 199

total services went up to 52, an increase of 18 per cent. There was During 2007, Emirates
also a significant increase in the number of government services Post entered a new
provided at post offices. For example, Ministry of Labour transactions phase of diversification
rose by 108 per cent and remittances rose by 95 per cent. that will see Dh1 billion
Emirates Post subsidiaries include Empost, the UAE’s national being spent on a major
courier company, the Electronic Documentation Centre, Emirates expansion plan.
Marketing and Promotions, and the Wall Street Exchange Centre.
During 2007, Emirates Post entered a new phase of diversification
that will see Dh1 billion being spent on a major expansion plan and
the company entering new areas of activity, including air freighter
services, a Middle East trucking service to complement its other
ground delivery operations, and money management solutions.
Emirates Post currently provides remittance services through its
Wall Street Exchange Centre, but is poised to emerge as a major
player in the US$40 billion remittances market as it plans to open
multiple offices in Asia and Europe.
Empost announced the launch of its cargo and logistics service
in February 2007. Al Ain International Airport has been selected as
the main hub for the international courier and cargo business. Plans
are to acquire 50 aircraft by 2012 in order to expand the service.
The scheduled freighter operations, which will be implemented
in four phases, will network with major cities in the Indian
subcontinent, Middle East and Europe by the end of 2008.
The government service is in the process of forming a parent
company called Emirates Post Group to oversee its rapidly expanding
family of subsidiaries. Also in the pipeline is an IPO proposal that will
be open to all investors, including expatriates. The IPO's public-
government ratio is yet to be decided.

AIRPORTS
The region’s airports are undergoing a massive capacity expansion
drive with the ten leading Middle East airports investing US$23.5
billion (Dh86.2 billion) in new airport capacity by 2012, providing
space for 318 million passengers per year, up 292 per cent on
current levels, and taking total annual airport capacity to 339 million.

@ www.uaeinteract.com/post
 New airport projects in the UAE account for 60 per cent of
all airport investment in the Gulf. This is hardly surprising:
geographically, the country’s reach is considerable, sweeping
through Africa and the Middle East and linking these regions to
Europe, Asia, Australia and the Americas.
Over Dh77.5 billion (US$28.4 billion) is being spent to develop
seven airports in the UAE. The projects include Dh26 billion
(US$7.08 billion) on Abu Dhabi International Airport; Dh16.5 billion
(US$4.5 billion) on Dubai International Airport; Dh36.7 billion
(US$10 billion) for the development of Al Maktoum International
Airport) at Jebel Ali, part of the Dh121.1billion (US$33 billion) Dubai
World Central complex; Dh227.64 million (US$62 million) on Sharjah
Dh75.3 billion Airport; Dh2.9 billion (US$800 million) on Ajman International
(US$20.5 billion) is Airport; Dh183.6 million (US$50 million) on Fujairah Airport; and
being spent to develop Dh1 billion (US$272 million) on Ra’s al-Khaimah Airport.
and expand seven
airports in the UAE. The ABU DHABI
projects include Dh26 Abu Dhabi Airports Company (ADAC) assumed management and
billion (US$7.08 billion) control of Abu Dhabi International Airport (ADIA) and Al Ain
on Abu Dhabi International Airport (AIA) as of 28 September 2006. ADAC is a
International Airport. public joint-stock company wholly owned by the Abu Dhabi
 INFRASTRUCTURE 201

government that was incorporated by Emiri Decree No. 5 of 4 ADIA registered a

March 2006 to spearhead the development of the emirate's aviation 25 per cent growth in
infrastructure. Its creation was part of the government’s ambitious passenger traffic in the
restructuring initiative aimed at delivering better services to support first quarter of 2007
the emirate's long-term economic and tourism strategies and to help over the same period
build a more vibrant economy that attracts and promotes private in 2006. Passengers
sector investment. ADAC subsequently appointed international handled by the airport
airport investor and manager, Changi Airports International (CAI), in that time numbered
to manage operations at ADIA for a period of 18 months following 1.575 million.
an agreement signed in December 2006.
Abu Dhabi’s rising popularity as a business centre, tourist
destination and aviation hub has meant that passenger volumes
have been increasing steadily at the airport, especially since the
launch of the Abu Dhabi-based national airline, Etihad Airways.
ADIA registered a 25 per cent growth in passenger traffic in the
first quarter of 2007 over the same period in 2006. Passengers
handled by the airport in that time numbered 1.575 million,
compared to 1.255 million in the first quarter of 2006. Abu Dhabi
Duty Free’s (ADDF) sales results for the first half of 2007 were
33.26 per cent up on the same period in 2006. Underlining ADDF's
position as the region's leading duty-free operation by average
spend, departing passengers increased their expenditure by 10.5
per cent, spending an average of US$51 per passenger over the
same period. With new retail services coming on-stream, ADDF
expects to cross the Dh370 million (US$100 million) mark in terms
of turnover by the end of the year. ADDF ranks second in the
Middle East and thirty-fourth worldwide by turnover.
To cope with increased throughput, Dh26 billion (US$7.08 billion)
is being invested in the re- development of the airport, which was
originally designed to handle 3.5 million passengers annually. An
interim solution to the capacity dilemma was to build a new
terminal (Terminal 2), adapt the original building to accommodate
another terminal (Terminal 1A), and overhaul all facilities, thereby
increasing passenger handling capacity to 6.8 million. This was
achieved in a record six months with Terminal IA and Terminal 2
both in operation since September 2005. The interim terminals

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202 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

ADIA was deemed to have greatly contributed to improving passenger flow, especially
be the best airport in at times of high-density flights.
Africa and the Middle ADAC is now constructing a third terminal facility for Etihad
East, based on the Airways with eight gates capable of handling the new generation of
results of the Airports wide-bodied aircraft, two of them being Airbus A380 compatible.
Council International’s Plans also include a second runway 2 kilometres to the north of the
annual survey into existing one. This is a category 3 all-weather runway measuring
passenger satisfaction. 4100 metres in length, which will be capable of handling the new
Airbus A380 double-decker aircraft. A new air traffic control tower
will be able to process up to 70 takeoffs and landings per hour.
Scheduled for completion by April 2008, the new terminal will
meet Etihad's needs until a huge Midfield Terminal Complex
(MTC) becomes operational at the end of 2010. Groundbreaking
work has already commenced on this new x-shaped facility, which
will boost the airport's overall capacity to around 20 million
passengers a year with room for further phased expansion to 40
million. The project also includes new cargo facilities, an airport
free-trade zone, and retail and maintenance facilities.
Phase one of the airport free zone – set to occupy 7 million square
metres – will be up and running in June 2008. The ambitious project
will offer investors a range of centralised facilities and services and
is a logical choice to capitalise on ADIA’s strategic geographical
position, and to accommodate the large-scale economic development
that is taking place in the emirate.
Expansion and redevelopment of the existing cargo facilities
will also be completed by mid-2008 and work on new cargo
facilities will have begun. More than 50 hectares have been
reserved for building three new cargo terminals, two for Etihad
Airways, and one for the use of other airlines, with an ultimate
combined capacity of around 2.5 million tonnes per year, up from
150,000 tonnes per year at present.
ADIA was deemed to be the best airport in Africa and the Middle
East, based on the results of the Airports Council International’s
annual survey into passenger satisfaction. It was also recognised as
the best airport in Africa and the Middle East in terms of courtesy
and customer service.
 INFRASTRUCTURE 203

Al Ain International Airport, which serves Abu Dhabi’s Eastern

Region, is not only a vibrant international airport with full facilities
and an ideal base for low-cost and low-fare carriers, it is also a sought-
after cargo hub facility. Early in 2007, the Emirates Corporation for
Commercial Postal Services (Empost) chose the airport as the home
base for their international air cargo operations.

DUBAI
Dubai International Airport (DIA) has grown from a regional airport Dubai International
into a major international aviation hub, experiencing a rapid increase Airport handled 28.7
in the number of passenger, freight and aircraft movements over million passengers
the past decade. From 1997 to 2006, passenger throughput rose in 2006, with 31.7
by 316 per cent and in 2006 the airport handled 28.7 million million expected
passengers, with 31.7 million expected in 2007, and up to 60 million in 2007.
passengers, including 15 million tourists, expected by 2010. Dubai
Duty Free's (DDF) sales in the first half of 2007 climbed 27 per cent
to Dh 1.5 billion (US$411 million) as the rise in air travellers helped
push retail sales higher.
Growing at an average of over 15 per cent per year since 2002,
DIA has jumped from thirtieth position on the list of the world's
busiest airports five years ago to among the top ten in 2007. To cope
with this rapid growth, DIA is undergoing a massive Dh16.5 billion
(US$4.5 billion) expansion. This includes the construction of a third
terminal, two additional concourses, a second runway and a huge
cargo terminal.
Terminal 3, a multi-level underground structure and Concourse 2,
which will be directly connected to Terminal 3, will be open for
business in the summer of 2008. Concourse 2 is dedicated
exclusively to Emirates and features five special aerobridges
capable of handling the forthcoming Airbus A380 super jumbos.
Work has also begun on lengthening the airport’s second runway,
and on Concourse 3, a scaled down version of Concourse 2, which
has been added to the plans to accommodate additional A380s.
Concourse 3 is scheduled to open in 2009.
The expansion project also involves the construction of a huge
cargo terminal with 1.4 million tonnes annual capacity, taking the

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204 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Dubai's new Al total annual capacity of Dubai Cargo Village (DCV) to 2.8 million
Maktoum International tonnes. The new facility became operational at the end of 2007.
Airport will initially With over 10 per cent growth and 1.7 million tonnes of cargo
accommodate up to 7 processed, DCV is currently ranked eleventh worldwide in terms
million passengers per of cargo movement, and is the busiest in the region. The constantly
year, but will have the rising volume of cargo tonnage and the corresponding development
capacity to extend of infrastructure at DCV also earned DIA the ‘Airport of the Year
to 120 million. Award’ at the Air Cargo Week’s World Cargo Awards in 2007.
Even more impressive are Dubai’s plans to construct a massive
Dh121 billion (US$33 billion) aviation city at Jebel Ali with Dh36.7
billion (US$10 billion) earmarked for a huge passenger and cargo
hub at the Dubai World Central comples. Phase one of the project is
scheduled for completion in the third quarter of 2008 and the Al
Maktoum International Airport will initially accommodate up to 7
million passengers per year, but will have the capacity to expand
to 120 million when completed. Work began early in 2007, with the
first runways finished in October 2007 and the runway aprons due
to be completed in February 2008. Construction has also begun
on the airport's headquarters, passenger terminal, control tower,
and executive terminal. The airport will be linked to the existing
Dubai International via the light-rail metro and a dedicated road
network. When completed, the complex will cover 140 square
kilometres, making it the largest airport facility in the world.
The intention is to establish a supply chain community within
Dubai World Central that will be capable of handling 12 million
tonnes of cargo each year. In pursuit of this aim, Dubai Logistics
Dubai World Central City (DLC) commenced construction of the first of 16 cargo
will comprise six terminals at the airport in 2007. When completed, the new
specialised clustered Dh2.77 billion (US$75.7 million), 41,000 square-metre cargo
zones: Al Maktoum terminal with an annual handling capacity of 600,000 tonnes will
International Airport, have direct interface with aircraft stands and aprons and will be
Dubai Logistics City, adjacent to an A380-enabled runway.
DWC Commercial City, The airport will also house the Executive Jet Centre, which will
DWC Residential City, function as a one-stop hub for business jet operations. Designed to
Dubai Aviation City and initially handle in excess of 100,000 aircraft movements a year, the
DWC Golf City. EJC is due for completion in 2008.
 INFRASTRUCTURE 205

SHARJAH
Passenger throughput at Sharjah International Airport (SIA) rose
by 36.9 per cent to 3.064 million in 2006. However, SIA handled
more than 2 million passengers in the first half of 2007 compared
to only 1.42 million passengers in the same period in 2006, an
increase of around 43 per cent. As with the other emirates, the
location of a national airline at the airport, in this case Air Arabia
Sharjah International Airport
(see Aviation), played an influential role in the increase. The number
of scheduled and non-scheduled flights through the airport was up
by 14 per cent, rising from 20,735 flights in the first half of 2006
to 23,618 flights in the same period in 2007. Cargo handling also
increased by around 31 per cent in the first half of 2007 compared
to the same period in 2006.
Ongoing developments are expected to boost the capacity of
Sharjah airport to handle more than 8 million passengers a year.
Work on the departure and arrival concourses has been completed.

FUJAIRAH
Looking further ahead, Fujairah is planning to phase out its existing
international airport, on the edge of Fujairah City, to permit the
area to be utilised for urban expansion. A completely new airport
is being planned near Siji, on the western side of the Hajar
Mountains, and close to the new Fujairah Dubai highway, which is
expected to be completed by 2009. From Siji, using the new road,
it will be only a 25-minute drive to Fujairah.

PORTS

The UAE has over 20 ports, ranging from state-of-the-art oil The UAE has over 20
terminals, industrial ports and container-handling facilities to dhow ports, ranging from
and wooden-boat wharfs. At present, Mina Zayed in Abu Dhabi City state-of-the-art
is Abu Dhabi’s main commercial port. In 2005 Abu Dhabi Seaports oil terminals,
Authority (ADSA) signed a MoU with Dubai Ports World (DP World) industrial ports and
to establish a strategy for the development and management of container-handling
Mina Zayed and later that year the two parties entered into a facilities to dhow and
management services agreement. In March 2006, Abu Dhabi Ports wooden-boat wharfs.

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206 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Company (ADPC) was established to develop, own and manage all

ports in the emirate. Also in 2006, Abu Dhabi Terminals, a new port
operating company was created to operate Mina Zayed and
coordinate the management services agreement with DP World.
However, by 2010 Mina Zayed’s central role is set to change when
Khalifa Port at Khalifa Port and Industrial Zone (KPIZ) in Taweelah,
halfway between the two cities of Abu Dhabi and Dubai, will take
over as the emirate’s primary port. Bechtel Company Ltd (IBCLTD)
was appointed in 2006 to act as programme managers and work
is progressing smoothly on the new development.
The plans not only include the construction of a world-scale
industrial and container port with a capacity to handle 2 million
TEUs (twenty-foot equivalent units) in its first phase, it also
encompasses the development of over 100 square kilometres of
industrial, logistics, commercial, educational and residential zones.
The Khalifa Industrial Zone will house Mubadala and Dubal’s
aluminum smelter with a capacity of 1.2 million tonnes per year,
among an initial group of heavy, medium and light anchor tenants.
DP World's new In June 2007, DP World entered into an agreement with ADPC to
container terminal at manage Khalifa Port. The agreement includes a contract for DP
Jebel Ali Port, which World's sister company Economic Zones World (EZW), one of the
became operational in largest developers and operators of free zones in the world, to
the third quarter of operate an initial 25-square-kilometre trade and logistics free zone
2007, will be fully within the larger industrial zone.
completed in 2008. Jebel Ali Port, DP World-UAE's flagship terminal in Dubai and the
eight largest port in the world in terms of throughput, was awarded
the title of 'Best Seaport – Middle East' for the thirteenth consecutive
year at the Asian Freight and Supply Chain Awards (AFSCA) 2007.
DP World's new container terminal at Jebel Ali Port, which became
operational in the third quarter of 2007, will be fully completed in
2008. This Dh5.5 billion (US$1.5 billion) first phase increased the
port's container handling capacity from 9 million TEUs to 15 million
in 2008. When finished, Jebel Ali will have an additional 2500
metres of quay length with a draft of 17 metres and will be able to
accommodate the world's largest container vessels.
DP World-UAE handled 8.92 million TEUs in 2006 compared
with 7.62 million units handled in the previous year, a 17 per cent
DP World-UAE handled 8.92 million TEUs in
2006 compared with 7.62 million units
handled in the previous year, a 17 per cent
increase.
208 U N I T E D A R A B E M I R AT E S Y E A R B O O K 2 0 0 8

Sharjah Container increase. While most growth is at the Jebel Ali facility, ports in Abu
Terminal can handle Dhabi and Fujairah managed by the company are also showing an
400,000 TEUs at increase in business.
present, but
SHARJAH
construction
commenced in early Building on an impressive performance in 2005, 2006 throughput
2007 on a major at Sharjah Container Terminal increased by 24 per cent over the
expansion at SCT. previous year. SCT's container volumes grew to 282,082 TEUs from
more than 230,000 TEUs in 2005, prompted by good terminal
performance, a wide range of shipping lines offering direct and relay
services and an increasingly recognised advantageous position in
the centre of the rapidly expanding Sharjah and UAE markets.
Sharjah can handle 400,000 TEUs at present, but construction
commenced in early 2007 on a major expansion at SCT.
To accommodate future growth in the thriving port, two new Post
Panamax gantries are to be purchased, as well as landside handling
equipment and trailers. Two new MHCs are already in operation. In
addition, a new berth will be created at right angles to the current
terminal, the overall draft will be improved to 12.5 metres, and an
additional storage area of 30,000 square metres will be constructed.
However, throughput at Sharjah’s Khor Fakkan Container Terminal
(KCT), a leading regional trans-shipment hub, dropped almost 9 per
cent in 2006 from the previous year. KCT achieved a throughput of
1.73 million TEUs in 2006 compared to about 1.9 million TEUs in
2005 and is capable of handling 3 million TEUs per year. Gulftainer,
which operates both KCT and SCT on behalf of the Sharjah Port
Authority, expects container traffic to rise in 2007 with the
introduction of new services. The delayed first stage expansion
completion may also have contributed to the Khor Fakkan decline
as some shipping lines deferred consideration of calls until it was
finished. About 400 metres of quay and up to six Super Post
Panamax gantries will be added at Khor Fakkan in a second stage
expansion that has been approved by the Sharjah government.

AJMAN PORT
Although Ajman Port only commenced container operations in
April 1999, the port handled approximately 50,000 TEUs in 2006.
 INFRASTRUCTURE 209

This is expected to rise in 2007 with the expansion of business in Fujairah Port is
the area and the fact that the port provides cost-effective services strategically located on
and facilities to the adjacent free zone and the wider business UAE’s East Coat,
community. Facilities include eight wharfs and a covered storage approximately 70
area totalling 43,200 square metres. The Port Authority also has nautical miles from the
two dry docks for ship repairs and maintenance. Straits of Hormuz, an
attractive location for a
UMM AL-QAIWAIN
range of users of the
The Ahmed Bin Rashid Port and Free Zone is located in Umm al- multi-purpose port and
Qaiwain about 48 kilometres north-east of Dubai. The free-zone the significant number
complex comprises four wharves totalling 845 metres of quay of vessels calling at
wall within a secured area of 400,000 square metres, which is the Fujairah anchorage
capable of handling ocean-going vessels, and 118,000 square
for bunker supplies
metres of land reserved for light industrial development. The
and services.
entrance channel has a minimum depth of 10 metres and a width
of 100 metres, and connects with a swinging basin of 500 metres.

RA’S AL-KHAIMAH
Saqr Port, Ra’s al-Khaimah’s window on the world, handled 22.2
million tonnes in 2006, up from 10.7 million tonnes in 2002. The
port has experienced a robust 107 per cent increase in cargo
handling over the past four years and an annual growth of more
than 30 per cent, reflecting the fast-paced development activities
taking place in the emirate. During that period, Saqr Port has
undertaken an ambitious expansion programme involving an
investment of Dh221 million to improve the efficient handling of
containers, bulk and general cargo.
A new container terminal with a capacity of 350,000 TEUs, which
was developed by the Kuwait-based KGL Ports International (KGLPI),
was recently added. Four new berths, a high-tech container scanning
system and other upgraded infrastructure have been commissioned
and new offices for the RAK Customs and Ports Department were
opened. The four new berths have a total length of 795 metres and
will substantially increase the cargo handling capacity of the port.
Saqr Port Authority operate the remaining eight berths.
The port has also purchased container-handling equipment to
improve the loading and discharge rates, including an additional

@ www.uaeinteract.com/ship_ports
 two mobile loaders that will bring the total number of mobile
harbour cranes to eight.

FUJAIRAH
Fujairah Port has Fujairah Port is strategically positioned on UAE’s East Coast,
embarked on a approximately 70 nautical miles from the Straits of Hormuz, an
continuing process attractive location for a range of users of the multi-purpose port and
of enhancement of the significant number of vessels calling at the Fujairah anchorage
its facilities and for bunker supplies and services. Since commencing operations in
functions. 1983, Fujairah Port has embarked on a continuing process of
Improvements in enhancement of its facilities and functions. Improvements in recent
recent years include years include the dredging of the entrance and the inner basin to
the dredging of the
15 metres, the completion of an additional 600 metres of main quay
entrance and the inner
(giving 1.4 kilometres of continuous quay), an additional 720 metres
basin to 15 metres.
of tanker berth quays along the northern breakwater additional
paved area, (storage for up to 30,000 TEUs), and the provision of a
bulk loader for the emirate's growing aggregate export market.
The offshore tanker anchorage, supervised by Fujairah's Port
Authority, has been a major component of the port's success and
Fujairah is now the second-largest oil-bunkering port in the world.

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