Down the road: The second city is set to experience sustained growth

The city of Al Ain is sometimes known as “the Garden City” in the UAE, and with good reason. While the UAE is largely composed of desert, Al Ain sits in the centre of a large oasis that it shares with the neighbouring Omani town of Buraimi and which has sustained human settlement for thousands of years. While Al Ain, one of three municipalities in Abu Dhabi, has shared in the emirate’s oil wealth, urban development in the area has been strictly controlled, in part due to building ordinances put in place by the late Sheikh Zayed bin Sultan Al Nahyan, founder of the UAE, who was born in Al Ain and wished to preserve its traditional character.

As a result, the city’s buildings are mostly low-rise, and the important date gardens that have nourished it have not been built over. Al Ain’s traditional culture, dry climate and natural attractions, including Jebel Hafeet – the highest peak in the UAE at 1200 metres – and its system of irrigation channels, known as aflaj, have made it a favourite getaway for Emiratis and expatriates alike.

However, with the introduction the Abu Dhabi Economic Vision 2030, which will implement a series of comprehensive development strategies, the region will transform over the next 20 years. Economic Vision 2030 was drawn up and overseen by Abu Dhabi Council for Economic Development (ADCED) – as well as the Department of Economic Development and the General Secretariat of the Executive Council – alongside Plan Abu Dhabi 2030: Urban Structure Framework Plan, which is supervised by the emirate’s Urban Planning Council (UPC).

While Abu Dhabi City has developed into a cosmopolitan metropolis of around 1m people over the past four decades, Al Ain region remains sparsely populated, with 584,800 residents in mid-2011, according to the Statistics Centre - Abu Dhabi. Plan Al Ain 2030, a detailed blueprint for the city’s future development, forecasts that the region’s total population will increase to 627,000 by 2020 and 1m by 2030.

INDUSTRIALISATION: To provide jobs, the authorities have planned further industrialisation. One of the key challenges is to retain Al Ain’s character while ensuring the city gets adequate investment.

To achieve this, in 2009 the UPC issued Plan Al Ain 2030. The key principles behind Plan Al Ain 2030 are safeguarding the city’s oasis character, natural environment and high quality of life, while at the same time promoting sustainable economic development. The plan envisages maintaining the city as an Arabic cultural homeland, stating, “Al Ain will embody its role as the founding source of the emirate through protecting its historic assets, its delicate cultural landscapes and its noble heritage… Al Ain’s urban fabric, neighbourhood infrastructure and public gardens will support the emirate’s Arabic values, social arrangements and culture.”

The proposals for Al Ain are ambitious, in terms of their vision, and aim to see the city transition from an economy based on tourism, construction, real estate and civil service jobs to one that gives heightened focus on high-end manufacturing, light industry (including agribusiness) and health care.

AVIATION & AEROSPACE: One of the most ambitious projects is the government’s plan to develop an aviation and aerospace park around the existing Al Ain International Airport, recently branded the Nibras Al Ain Aerospace Park (Nibras). Launched in 2009, Strata, a subsidiary of Mubadala, a strategic investment arm of the Abu Dhabi government, has been manufacturing composite aerostructures for use in aircraft assembly. In addition to its existing contract with Airbus, FACC, Alenia, and SABCA to supply aerostructures, in November 2011 Strata signed a 10-year contract with Boeing to supply the USbased manufacturer with the B777 empennage ribs and B787 vertical fin ribs. This deal should enable the company to move towards becoming a tier-one supplier to the aerospace industry. The Advanced Military Maintenance Overhaul and Repair Centre, a joint venture between Mubadala, Sikorsky Aircraft, a subsidiary of US-listed United Technologies Corporation and US defence group Lockheed Martin, is a UAE-based company that is responsible for the maintenance, repair and overhaul (MRO) operations of military aircraft. It is currently co-sited in Abu Dhabi City with Abu Dhabi Aircraft Technologies, another MRO firm, and is due to move to its new facilities in Al Ain by 2014. Currently operating in Al Ain are two institutions dedicated to fostering a local aerospace skills base – Horizon International Flight Academy (also part of Mubadala), which trains both military and civil pilots for helicopter and fixed-wing vehicles, and the Al Ain International Aviation Academy, part of Abu Dhabi’s Institute of Applied Technology, which trains staff in aircraft maintenance and air traffic control. Meanwhile, Nibras is expected to introduce a number of large-scale assembly and manufacturing facilities to Al Ain. The project will be developed over a 50 year period between 2010 and 2060, and will provide the space for ancillary industries and small and medium-sized enterprises (SMEs) to take advantage of the expected rapid growth in the city’s aviation industry.

AGRIBUSINESS: Another promising area for industrial expansion is agribusiness. Al Ain’s fertile land and relative proximity to major population centres in Abu Dhabi City, Dubai and Oman, as well as its numerous food processing factories, have provided the city with many advantages. Al Foah, a subsidiary of Abu Dhabi’s General Holding Company, is one of the largest date processing factories in the UAE. Al Foah utilises almost the entirety of the emirate’s crop, or some 90,000 tonnes per year. At present, Al Foah sells a variety of basic and premium brands. Moving forward, the firm hopes to increase its output of premium brands for greater added value.

Al Ain Dairy, one of the largest dairy farms in the Middle East, was founded in 1981 under the auspices of Sheikh Zayed. The dairy currently has three farms and in 2004, opened a production facility in Al Ain. As of 2009 Al Ain Dairy produced 210,000 litres of milk per day, provided some 56% of demand in the UAE and had a 38% market share. The dairy has also expanded its business to produce a variety of other products, including juices and camel milk, and in the coming years it plans further growth through the expansion of its farms and increasing its range of products. Exeed, a subsidiary of UAE-based National Holding, announced in June 2012 that it had signed a memorandum of understanding with Greece-based Vivartia, a food and beverage group, to set up a processing plant for juice, milk and tea in Al Ain. The company expects to produce 24m litres of juice and 60m litres of dairy products annually.

TOURISM: Al Ain continues to be an attractive destination for nationals looking for a cooler climate. As a desert city, Al Ain has lower humidity levels than many other cities on the coast, and is markedly cooler at night. It is also an alternative to the cities of Abu Dhabi and Dubai for international tourists. In addition to its environment and historic sites, Al Ain is also a good base for outdoor activities, such as climbing and “dune-bashing” – exploring the sand dunes in four-wheel-drive vehicles. Al Ain is also home to a number of parks, museums and festivals. Al Ain Wildlife Park and Resort (AAWPR), an extension of Al Ain Zoo, was set up in 2006. The expansion of the Al Ain Zoo, a development of 900 ha, is dedicated to education and conservation of desert species. The most significant segment of the project is the Sheikh Zayed Desert Learning Centre, which is designed to honour the legacy of Sheikh Zayed and his dedication to the environment, wildlife and conservation. The centre will offer exhibitions on the natural and cultural history of not only the Arabian deserts, but also deserts worldwide, blending a museum, a gallery and a science centre. It is the first government development to receive a five-pearl rating from the Estidama Pearl Rating System.

“The primary objective of the AAWPR is the education and inspiration of young people and helping to establish a commitment to conservation and the environment,” Ghanim Al Hajeri, director-general of the AAWPR, told OBG. “This will nurture the next generation of scientists and environmentalists.”

The Al Ain National Museum and Palace Museum detail the emirate’s more recent history, while the Hili Archaeological Park is home to the largest collection of Bronze Age remains in the UAE, dating back to the third millennium BCE. The Al Ain Classics Festival has Western classical music concerts by famous performers and philharmonics in the Al Jahili Fort, one of Al Ain’s best-known landmarks. Finally, Al Ain Sports and Cultural Club is one of the UAE’s most popular football teams, and the only UAE side ever to have won the Asian Champions League title.

To accommodate increasing tourist numbers, hotel rooms are being added in the coming years. According to UPC projections, the total number of hotel rooms in Al Ain is set to rise from 796 in 2007 to 1800 in 2013, 2700 in 2020 and 4000 by 2030, with four- and five-star establishments expected to account for the bulk of the increase in capacity.

HOUSE & HOME: To house its expanding population, the number of housing units in Al Ain is projected to rise from 67,000 units in 2007 to 202,000 units by 2030, according to Plan Al Ain 2030. Of these, 41,400 units will be for Emiratis, many of them affordable housing developed by the government. One of the most interesting features of Plan Al Ain 2030 is that its aims to build new neighbourhoods for Emiratis according to the traditional fareej pattern. A fareej – meaning neighbourhood in the Emirati dialect of Arabic – is a traditional urban layout consisting of clusters of homes, often occupied by an extended family, based around a courtyard or other outdoor shared space. The fareej is suited to the climate, with low energy consumption and buildings made of materials like adobe, which absorb less heat than concrete. Additionally, rather than installing broad boulevards found in modern developments, the fareej will be linked by shaded walkways.

UP TO CODE: The emirate of Abu Dhabi adopted a new building code in 2010, which introduced a new framework for the design of both buildings and communities, known as the Estidama Pearl Rating System. This new code sets minimum requirements for building standards, such as water and energy consumption, before planning consent can be granted. Under new regulations from Estidama, the Abu Dhabi government’s initiative to promote environmental sustainability locally, all new buildings in Abu Dhabi are expected to achieve a rating of at least one pearl out of a possible total of five.

Al Ain Wildlife Park & Resort and the Sheikh Zayed Desert Learning Centre earned Estidama-compliance in 2009 and 2008, respectively, as they were selected as Estidama pilot projects. The ultimate goal of Estidama is to preserve and enrich Abu Dhabi's physical and cultural identity, while improving the quality of life for residents. The government has also invested in shaabiyas – relatively small clusters of housing in rural areas where essential services can be provided to the local population. Although shaabiyas can be found across the emirate, Al Ain Municipality contains many of these communities.

To house lower-income expatriate workers, the UAE is working to construct dedicated housing complexes in a bid to improve living conditions. Aldar, one of the largest local real estate groups, opened one such complex, its seventh in the emirate, in April 2012, the Al Ain Operative Village, with space for 6000 workers. The village features a number of amenities, including a health centre and pharmacy, as well as sports facilities. In addition, the complex can be upgraded in line with Al Ain’s growth to ultimately house up to 20,000 workers.

CATERING FOR GROWTH: In anticipation of the expected growth in the coming years, Plan Al Ain 2030 envisions an expanded central business district. According to the plan, the available office space in the region is forecast to increase from 150,000 sq metres in 2007 to 250,000 sq metres in 2013, rising to 400,000 sq metres in 2020 and 600,000 sq metres in 2030. The bulk of the demand for office space is expected to come from the public sector and affiliated bodies, as well as from the development of the Nibras. Additionally, the General Authority of Islamic Affairs and Endowments announced plans at the beginning of 2012 to develop two malls. The Asharj Mall will cover 12,220 sq metres over two floors, and feature a supermarket and 28 luxury apartments. Construction began in mid-2012 at a cost of Dh43m ($11.7m). Meanwhile, the down town mall will have 7000 sq metres of retail space and 72 apartments, with construction taking place over a similar time frame to Asharj Mall, for Dh61m ($16.6m).

The Gateway Transit Corridor will link the new central business district with five other population centres by tram line. This will complement the existing bus network, run by the Abu Dhabi Department of Transport, which is also due to undergo expansion. In June the municipality completed a Dh1bn ($272m) upgrade to the main Al Ain-Dubai highway. Etihad Rail, the UAE’s project to link all seven emirates and beyond by railway, features a spur from Abu Dhabi to Al Ain, where it crosses to Buraimi in Oman, and then to Muscat. Al Ain is equidistant from the ports of Sohar in Oman, Jebel Ali in Dubai and Abu Dhabi’s new Khalifa Port, each around one hour’s drive away. There is significant commuter traffic from Al Ain to Abu Dhabi and Dubai, as many people have moved to Al Ain for its quieter pace of life and lower rents. Improved transport links are likely to enhance this trend. Al Ain International Airport has few connections, with only seven airlines serving it, and the Nibras means that the airport may continue to suffer from limited capacity. Over the long term, however, Al Ain could become a regional logistics hub.

HEALTH CARE AND EDUCATION: Health care is also set for expansion to serve the growing local population. The existing nine hospitals in Al Ain (one military, three public and five private) were joined in April 2012 by the Imperial College London Diabetes Centre, with Sheikh Tahnoon bin Mohammed Al Nahyan, the ruler’s representative in the Eastern Region, performing the opening in June. High-sugar diets have seen Gulf states suffer some of the highest rates of diabetes in the world. In 2006 the US-based Johns Hopkins University began managing one Al Ain’s biggest hospitals, Al Tawam Hospital. In 2010 the Tawam Molecular Imaging Centre, a partnership between Johns Hopkins Medicine and Mubadala Healthcare, opened its doors. The centre has diagnostic imaging systems for detecting cancer, cardiovascular and neurological diseases. The city also has several schools, including UAE University – the federation’s oldest – which opened in 1976 and has 12,000 students across nine faculties, as well as a number of private universities, including the Al Ain University of Science and Technology, which opened in 2005, and an Abu Dhabi University campus. The first public library in the city opened in May 2012.

OUTLOOK: Al Ain may be the second city of the emirate of Abu Dhabi, but plans are afoot to ensure it keeps pace with its regional neighbours. Sustained investment, particularly in energy, logistics, trade and aerospace, is slowly transforming the region into a major economic centre. In the shorter term, tourism is expected to remain one of the principal drivers of the economy, but this is due to be joined shortly by manufacturing, particularly within the aerospace industry. The Nibras is likely to benefit the region’s SMEs and educational institutes, which can play a bigger role in the economy in the future.