UAE's Infrastrudture and Future Plans - Assignment Example

In the most recent budget decision, there have been Dh1.6 billion reserved for federal infrastructure spending from a total budget of Dh11 Billion, around 14.4% (Dokoupil).

            As the budget set for infrastructure spending has been restricted, there have also been strong directives taken on the kind of projects which the government will support- specifically developmental efforts in the less developed northern Emirates. In the richer Emirates, Abu Dhabi, which sits on 10 percent of global oil reserves and accounts for 90 percent of UAE oil output, spent 245.5 billion dirhams in 2010, 6 percent less than in 2009 on their infrastructure development programs. These have been funded by the government but there is discussion to attract private investors for the projects as the region has to meet the needs of its growing population which is expected to reach three million by 2020, and resources might get depleted.

However, the focus of the Abu Dhabi government has shifted towards projects which will benefit the population and local people more and help strengthen their economy rather than extravagant attractions or large-scale projects to attract tourists or investors.

             The Executive Council of the Emirate of Abu Dhabi approved several new development projects across Abu Dhabi Emirate at its meeting chaired by HH General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi in January 2012 (WAM). These would cater to providing social welfare and developmental solutions for the citizens and work towards increasing the standard of services provided to citizens, residents, visitors, and investors such as road networks, residential projects, drainage networks, air and sea transport, and health, and education facilities.  The Roads and Infrastructure division of Abu Dhabi Municipality oversees much of these projects, formed in 2007 the Department of Municipal Affairs is an umbrella body supervising the three administratively independent municipalities, the Municipality of Abu Dhabi City, Al Ain Municipality, and Western Region Municipality. This body forms its budget according to international best practices and is keenly involved in providing modern infrastructure for the city (Municipality of Abu Dhabi City).

            “Abu Dhabi is spending more on infrastructure development than any other capital in the six-nation Gulf Co-operation Council (GCC), said a senior municipality official.
Giant infrastructure projects are being undertaken in the city and its suburbs in line with Abu Dhabi Vision 2030. The municipality is currently engaged in executing infrastructure projects worth Dh19 billion and has spent more than Dh20bn on major roadworks in the past three years, Abdulla Al Shamsi, Acting Executive Director of the Municipal Infrastructure and Assets Sector, told Emirates Business” (Mohamed, 2010). There has also been discussion to fund the construction and development of new industrial zones which would entice direct foreign investment into the region and allow the local business community better chances of expansion and growth with government support. One highly anticipated project is the Khalifa Industrial Zone Abu Dhabi (Kizad) which is expected to be completed by and commenced in September 2012.

            In 2009 the forecasts provided indicated that Abu Dhabi alone would have spent $15 Billion on infrastructure development by 2012. UAE economy minister Sultan bin Saeed al-Mansouri said in the same year investments in Abu Dhabi infrastructure, property, and manufacturing could easily be expected to reach about $1 trillion (Cambridge) - the Abu Dhabi Municipality is already working private sector to ease the pressure from them. It acts as a supervisory and controlling body