Mixed use projects dominate Abu Dhabi's construction landscape

Abu Dhabi, Jan 17th, 2006 (WAM) - Mixed use projects, which combineresidential and commercial buildings, account for AED 37.32 billion($10.17 billion) in Abu Dhabi, constituting the largest segmentof ongoing construction activity and representing 56% of thetotal project value.

Airport development and Road infrastructure projects are valuedat AED 12.69 billion ($3.46 billion), representing 19% of thetotal value, according to a study commissioned by the Abu DhabiNational Exhibitions Company (ADNEC).

ADNEC, formerly the General Exhibitions Corporation (GEC), commissionedthe study as part of the preparations for CONSTRUCT Abu Dhabi2006 and the first ever ARABIAN PROPERTIES Exhibition and Conference,to be held in the UAE capital, 2-5 April 2006.

"The Abu Dhabi construction market is proving to be one of themost dynamic markets in the region and there are clear indicationsof continued growth. Record oil revenues as well as the propertylaw unveiled in 2005 in Abu Dhabi will continue to fuel the massivescale of project development in the emirate," said a spokespersonfor ADNEC.

In keeping with Abu Dhabi's drive towards diversifying its primarilyoil-based economy, construction of Industrial parks accountsfor AED 2.8 billion ($763 million), Shopping centres are valuedat AED 1.77 billion ($485 million), representing four and threepercent of the total respectively.

In addition to the buildings counted in the mixed use category,an additional AED 1.14 billion ($312 million) and AED 429 million($117 million) are being spent on Commercial buildings and Residentialbuildings respectively. Construction of Health care facilitiesin Abu Dhabi account for AED 367 million ($100 million).

Other significant categories listed in the study are Hotels(valued at AED 880 million or $240 million), Government offices(AED 165 million or $45 million) and Sports infrastructure (AED106 million or $29 million).

Elaborating on the aggressive growth of the construction industryin Abu Dhabi, the spokesperson from ADNEC said: "From AED 8.6billion ($2.34 billion) in 2005, the value of new constructionprojects in Abu Dhabi is expected to rise to AED 23.12 billion($6.29 billion) in 2006, an increase of 173%. In line with thistrend, 2007 will see new construction projects worth AED 24.59billion ($6.70 billion) being tendered to contractors".

"In the next 24 months, over AED 47 billion ($12.80 billion)worth of new construction projects in Abu Dhabi including commercialand residential buildings, roads, airport infrastructure, industrialparks and governmental institutions are expected to be tenderedto contractors".

The list of mega projects in the emirate are led by the Al RahaBeach Development (AED 53.94 billion or $14.69 billion), ShamsAbu Dhabi project by Sorouh Real Estate (AED 25 billion or $6.81billion), the Abu Dhabi Airport Expansion (AED 24.9 billion or$6.78 billion), the Mohammed Bin Zayed city, and the newly announcedport and industrial zone at Taweelah.

ADNEC recently announced that the first-ever ARABIAN PROPERTIESexhibition will be held in parallel with CONSTRUCT Abu Dhabi2006. ARABIAN PROPERTIES will focus on the burgeoning propertydevelopment sector in the region. Together the two events willoccupy an exhibit area of 20,000 square metres which representsan increase of more than 300 per cent in exhibit space over 2003.

Over 8,000 trade visitors are expected to attend, with more than250 exhibitors from 12 countries "The twin events organised byADNEC are an ideal platform for those who wish to target a sharein the growing construction and property development pie in AbuDhabi" added the spokesperson.

The two events build on the success of the CONSTRUCT exhibitionsin 2003 and 2005. Both exhibitor and visitor numbers experienceda quantum leap at CONSTRUCT 2005. The number of exhibitors increasedby 70%, from 95 in 2003, to 165 in 2005, and the number of visitorsjumped 140%, from 1,848 in 2003, to 4,655 in 2005. In 2005, thegross exhibit space increased to 6,500 square metres, from 4,000square metres in 2003. The 2005 edition of CONSTRUCT also had127 reporters from 44 media houses covering the event.

CONSTRUCT 2006 and ARABIAN PROPERTIES 2006 will be held at theAbu Dhabi International Exhibition & Conference Centre and willbe supported by the Ministry of Public Works, Municipalities& Agriculture Department, Social Services & Commercial BuildingDepartment, and the UAE Contractor's Association.