UAE: Abu Dhabi Construction

While the Strategic Tunnel Enhancement Programme (STEP) may not have grabbed as many headlines as some of Abu Dhabi’s larger infrastructure projects, the new wastewater network is crucial to the long-term health and welfare of the city.

Abu Dhabi’s construction sector appears set to return to near-full capacity, with the government announcing it is reactivating a number of major development projects and stepping up spending on infrastructure development. In late January, the government unveiled its revised construction programme, putting a number of formerly stalled projects on the top of its investment agenda.

Abu Dhabi’s construction industry is shifting its focus from residential and commercial development, which has long dominated the trade, to a rising number of infrastructure projects. However, supply pipeline bottlenecks could cause costs to rise and delay the rollout of some plans.

While construction in the UAE and the wider region has been hit by the financial crisis, Abu Dhabi’s commitment to forge ahead with its major developments bodes well for contractors active in the local market.

Large-scale infrastructure projects under way in Abu Dhabi are expected to give the economy a welcome fillip and open up future investment opportunities.