In 2016, UAE was one of the most successful spots for investments in infrastructure. Along with the public funds used in infrastructure, UAE is orienting now more and more to alternatives of private investments, in order to counterbalance eventual barriers of development that can be caused by short term fluctuations such as security issues, currency devaluations or variations in commodity prices.
Overall picture of the rapid changes in the infrastructure sector in in UAE
The extension of the Dubai metro
is only one example of large scale projects that have been already adopted in the UAE, which comes in addition to the Road Transportation Law in Dubai
. The improvements in infrastructure
are part of a long term policy in the Emirates called Vision 2030, which is a reformative plan of large extent intending to boost progress and modernization in several sectors of the UAE.
Apart from the fast development in the area of aviation, ports and roads, the infrastructure modernization refers as well to the improvements in telecommunications. The mobile and internet industry has contributed last year with 5.3 % to the UAE’s GDP and promises to make this country one of the largest users of fiber optic in the world.
Major lines of investment in infrastructure in the UAE
The big urban centers in the Emirates, such as Dubai and Abu Dhabi, require constant injection of capital in infrastructure. Until 2020, it is expected that not less than 8,178 billion $ will be spend in Dubai in view of the global event that this city is going to host in 2020: the World Expo, an international exhibition, presenting achievements of the most important nations in the world.
Moreover, 1.63 $ billion are allocated as well by the UAE government for road construction across the country in the next year.
The constant need for water and electricity is motivating the UAE authorities to invest in alternative energy
and to develop more efficient methods for obtaining potable water. The capacity of desalinization in Abu Dhabi has increased significantly in the past years and is expected to double by 2030, from 4.16 million gallons per day to almost 8 million gallons per day thanks to the constant preoccupation of the UAE government with water and electricity supply.
Don’t hesitate to contact
our lawyers in Dubai
in order to assist you with legal advice concerning your investment in the infrastructure sector of the UAE