MEED Insights: UAE Projects, H2 2018
Summary
With about $900bn of projects planned or underway, the UAE is the Mena region’s second biggest projects market. It has about $589bn worth of projects under construction with a pipeline announced but unawarded projects of about $310bn. And thanks to its two economic engines of Dubai and Abu Dhabi, the UAE is also one of the strongest and most resilient economies in the region.
The UAE’s diverse economic model that is built around Abu Dhabi’s substantial oil production, and Dubai’s vibrant real estate and travel sectors. Together these enabled the UAE to weather the worst effects of the fall in prices in 2014, even though tough fiscal adjustments by Abu Dhabi since 2016 led to a collapse in projects activity in Abu Dhabi and a general economic slowdown. This was offset by Dubai’s ability to maintain real estate developments, particularly around the Expo 2020. Dubai was the region’s strongest project market in 2016 and 2017.
A strategic location for trade, with strong financial reserves and considerable oil wealth, the UAE has enormous potential to generate abundant new project opportunities, particularly in the real estate, transport oil and gas, and power sectors. The UAE economy is expected to grow strongly in 2018, owing to the improvement in oil prices and growth in global trade.
In response to the tightening fiscal situation since 2015, the government has introduced a number of measures over the past three year aimed at minimising budget deficits and government debt. These have included the introduction of 5 per cent VAT on 1 January 2018, and cuts to energy subsidies. The UAE’s Vision 2021 strategy sets out reforms aimed at making the UAE one of the most competitive countries in the world. The Abu Dhabi Economic Vision 2030 and the Dubai Plan 2021 are the major plans ongoing in the UAE.
Project contract awards fell to $41bn in 2016, as a result of cuts in government spending. Dubai Expo 2020 will be a significant driver for the projects market in the UAE in 2019 and 2020. According to the IMF, Dubai’s economy is expected to grow at 4.2 per cent in 2019 ahead of Expo 2020.
Abu Dhabi plans to grow its crude oil production to 3.5 million barrels a-day (b/d) by 2020, by implementing enhanced oil recovery (EOR) techniques for its mature and existing oil fields. It is also increasing production of drinking water to reach 2.19 billion cubic meters by 2019, by increasing the desalination capacity. UAE transport infrastructure is going through a major upgrade. Government initiatives to upgrade the airports, roadways, and ports to cater to the expected influx of tourists due to the upcoming Dubai Expo 2020 will be a major driver of transport projects.
Reasons to Buy
Summary
With about $900bn of projects planned or underway, the UAE is the Mena region’s second biggest projects market. It has about $589bn worth of projects under construction with a pipeline announced but unawarded projects of about $310bn. And thanks to its two economic engines of Dubai and Abu Dhabi, the UAE is also one of the strongest and most resilient economies in the region.
The UAE’s diverse economic model that is built around Abu Dhabi’s substantial oil production, and Dubai’s vibrant real estate and travel sectors. Together these enabled the UAE to weather the worst effects of the fall in prices in 2014, even though tough fiscal adjustments by Abu Dhabi since 2016 led to a collapse in projects activity in Abu Dhabi and a general economic slowdown. This was offset by Dubai’s ability to maintain real estate developments, particularly around the Expo 2020. Dubai was the region’s strongest project market in 2016 and 2017.
A strategic location for trade, with strong financial reserves and considerable oil wealth, the UAE has enormous potential to generate abundant new project opportunities, particularly in the real estate, transport oil and gas, and power sectors. The UAE economy is expected to grow strongly in 2018, owing to the improvement in oil prices and growth in global trade.
In response to the tightening fiscal situation since 2015, the government has introduced a number of measures over the past three year aimed at minimising budget deficits and government debt. These have included the introduction of 5 per cent VAT on 1 January 2018, and cuts to energy subsidies. The UAE’s Vision 2021 strategy sets out reforms aimed at making the UAE one of the most competitive countries in the world. The Abu Dhabi Economic Vision 2030 and the Dubai Plan 2021 are the major plans ongoing in the UAE.
Project contract awards fell to $41bn in 2016, as a result of cuts in government spending. Dubai Expo 2020 will be a significant driver for the projects market in the UAE in 2019 and 2020. According to the IMF, Dubai’s economy is expected to grow at 4.2 per cent in 2019 ahead of Expo 2020.
Abu Dhabi plans to grow its crude oil production to 3.5 million barrels a-day (b/d) by 2020, by implementing enhanced oil recovery (EOR) techniques for its mature and existing oil fields. It is also increasing production of drinking water to reach 2.19 billion cubic meters by 2019, by increasing the desalination capacity. UAE transport infrastructure is going through a major upgrade. Government initiatives to upgrade the airports, roadways, and ports to cater to the expected influx of tourists due to the upcoming Dubai Expo 2020 will be a major driver of transport projects.
Reasons to Buy
- Opportunities and challenges in the UAE’s projects market
- Analysis of the pipeline of planned projects and contract awards 2018-2022
- Key policies and drivers shaping the outlook for projects in the UAE
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- The UAE’s most valuable key projects and major project sponsors.
Table of Contents
Executive SummaryUAE Country Overview
UAE Projects Market
Oil & Gas
Construction
Transport
Industrial
Power & Water
List of Tables
Table 1: Rulers of each emirate and key authorities
Table 2: UAE economic indicators, 2018
Table 3: Biggest megaprojects under construction in the UAE
Table 4: Major projects to be tendered in 2018 and 2019
Table 5: Biggest oil and gas megaprojects under construction in the UAE
Table 6: Major oil and gas projects to be tendered in 2018 and 2019
Table 7: Biggest construction megaprojects under construction in the UAE
Table 8: Major construction projects to be tendered in 2018 and 2019
Table 9: Biggest transport megaprojects under construction in the UAE
Table 10: Major transport projects to be tendered in 2018 and 2019
Table 11: Biggest industrial megaprojects under construction in the UAE
Table 12: Major industrial projects to be tendered in 2018 and 2019
Table 13: Biggest power and water megaprojects under construction in the UAE
Table 14: Major power and water projects to be tendered in 2018 and 2019
List of Figures
Fig. 1: UAE country map
Fig. 2: GDP by sector, 2016(%)
Fig. 3:Emirate GDP, 2016 (%)
Fig. 4:Emirate population, 2018e (%)
Fig. 5:UAE federal budget by sector, 2018 (%)
Fig. 6: Nominal GDP ($bn) versus annual real GDP growth (%)
Fig. 7: UAE’s current account balance, 2014-20
Fig. 8: UAE budget, 2009-18 (AED bn)
Fig. 9: Gross official reserves, 2014-19 ($bn)
Fig. 10: UAE gross government debt, 2014-2020
Fig. 11: Value of all projects planned or underway ($m)
Fig. 12: Projects market by project status ($m)
Fig. 13: Projects market by sector (%)
Fig. 14: Projects market by project status in Dubai ($m)
Fig. 15: Projects market by sector in Dubai (%)
Fig. 16: Projects market by project status in Abu Dhabi ($m)
Fig. 17: Projects market by sector in Abu Dhabi (%)
Fig. 18: Value of contract awards by year ($m)
Fig. 19: Value of contract awards by year and sector ($m)
Fig. 20: Value of contract awards by year in Dubai ($m)
Fig. 21: Value of contract awards by year and sector in Dubai ($m)
Fig. 22: Value of contract awards by year in Abu Dhabi ($m)
Fig. 23: Value of contract awards by year and sector in Abu Dhabi ($m)
Fig. 24: Biggest clients in the UAE by contracts in execution ($m)
Fig. 25: Biggest contractors in the UAE by contracts in execution ($m)
Fig. 26: Projects planned but unawarded by status ($m)
Fig. 27: Projects planned but unawarded by sector ($m)
Fig. 28: UAE project contract awards forecast, 2018-2022 ($m)
Fig. 29: Oil and gas projects market by project status ($m)
Fig. 30: Oil and gas projects market by subsector (%)
Fig. 31: Value of contract awards by year ($m)
Fig. 32: Value of contract awards by year and subsector ($m)
Fig. 33: Biggest clients in the UAE’s oil and gas sector by contracts in execution ($m)
Fig. 34: Biggest contractors in the UAE’s oil and gas sector by contracts in execution ($m)
Fig. 35: Projects planned but unawarded by status ($m)
Fig. 36: Projects planned but unawarded by subsector ($m)
Fig. 37: UAE oil and gas project contract awards forecast, 2018-2022 ($m)
Fig. 38: Construction projects market by project status ($m)
Fig. 39: Construction projects market by subsector (%)
Fig. 40: Value of contract awards by year ($m)
Fig. 41: Value of contract awards by year and subsector ($m)
Fig. 42: Biggest clients in the UAE’s construction sector by contracts in execution ($m)
Fig. 43: Biggest contractors in the UAE’s construction sector by contracts in execution ($m)
Fig. 44: Projects planned but unawarded by status ($m)
Fig. 45: Projects planned but unawarded by subsector ($m)
Fig. 46: UAE construction project contract awards forecast, 2018-2022 ($m)
Fig. 47: Transport projects market by project status ($m)
Fig. 48: Transport projects market by subsector (%)
Fig. 49: Value of contract awards by year ($m)
Fig. 50: Value of contract awards by year and subsector ($m)
Fig. 51: Biggest clients in the UAE’s transport sector by contracts in execution ($m)
Fig. 52: Biggest contractors in the UAE’s transport sector by contracts in execution ($m)
Fig. 53: Projects planned but unawarded by status ($m)
Fig. 54: Projects planned but unawarded by subsector ($m)
Fig. 55: UAE transport project contract awards forecast, 2018-2022 ($m)
Fig. 56: Industrial projects market by project status ($m)
Fig. 57: Industrial projects market by subsector (%)
Fig. 58: Value of contract awards by year ($m)
Fig. 59: Value of contract awards by year and subsector ($m)
Fig. 60: Biggest clients in the UAE’s industrial sector by contracts in execution ($m)
Fig. 61: Biggest contractors in the UAE’s industrial sector by contracts in execution ($m)
Fig. 62: Projects planned but unawarded by status ($m)
Fig. 63: UAE industrial project contract awards forecast, 2018-2022 ($m)
Fig. 64: Power and water projects market by project status ($m)
Fig. 65: Power and water projects market by subsector (%)
Fig. 66: Value of contract awards by year ($m)
Fig. 67: Value of contract awards by year and subsector ($m)
Fig. 68: Biggest clients in the UAE’s power and water sector by contracts in execution ($m)
Fig. 69: Biggest contractors in the UAE’s power and water sector by contracts in execution ($m)
Fig. 70: Projects planned but unawarded by status ($m)
Fig. 71: Projects planned but unawarded by subsector ($m)
Fig. 72: UAE power and water project contract awards forecast, 2018-2022 ($m)
