PDF | 9 MB - Australian Building Codes Board
PDF | 9 MB - Australian Building Codes Board
PDF | 9 MB - Australian Building Codes Board
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INTERNATIONAL Regulatory Development<br />
<strong>Building</strong> and<br />
construction<br />
to the United<br />
Arab Emirates<br />
Trends and opportunities<br />
The market<br />
Australia is a strong exporter of products<br />
and services to the UAE construction<br />
sector. Statistics indicate that in 2009<br />
Australia exported A$78.3 million of<br />
construction-related products to the<br />
UAE. Total services exports to the UAE,<br />
which are harder to quantify, totalled<br />
A$1.7 billion in 2008. A significant<br />
amount of this income comes from<br />
the construction sector. Many large<br />
<strong>Australian</strong> services firms have an office<br />
in the UAE including:<br />
• Leighton<br />
• Worley Parsons<br />
• GHD<br />
• Cardno<br />
• Bovis Lend Lease<br />
• Woods Bagot<br />
• PTW<br />
In fact, the total number of <strong>Australian</strong><br />
offices of building-related companies<br />
numbers over 100.<br />
The effect of the global financial crisis<br />
(GFC) on Dubai’s property sector has<br />
been significant and widely reported.<br />
However the outlook for the United<br />
Arab Emirates (UAE) remains optimistic<br />
as Abu Dhabi, the capital and home to<br />
10 per cent of the world’s oil reserves, is<br />
spending widely to meet the ambitions<br />
of its 2030 master-plan under which the<br />
emirate’s population is set to increase<br />
from 1.2 million in 2010 to 3.1 million by<br />
2030.<br />
The building and construction sector<br />
remains the third largest sector of<br />
the economy after oil and trade,<br />
constituting US$23 billion or about six<br />
per cent of GDP, even the in the current<br />
post-financial crisis climate. In addition,<br />
the UAE is still the largest construction<br />
market in the Gulf and double the size<br />
of Saudi Arabia, with US$714.8 billion of<br />
projects planned or underway (Source:<br />
Zawya, ‘Construction sector outlook:<br />
challenging 2010, promising 2011’,<br />
20 July 2010).<br />
Five of the 10 biggest projects in Gulf<br />
Cooperation Council (GCC) region are in<br />
Abu Dhabi, amongst them the Capital<br />
District (US$40 billion), Yas Island (US$37<br />
billion) and Saadiyat Island (US$27.5<br />
billion). (Source: Zawya, ‘Construction<br />
sector outlook: challenging 2010,<br />
promising 2011’, 20 July 2010).<br />
Significant changes in the market<br />
In addition to the rise of Abu Dhabi, a<br />
number of other significant changes<br />
have taken place in the market.<br />
There has been a shift away from<br />
residential and commercial construction<br />
towards large infrastructure projects.<br />
Several reports estimate that the<br />
government is planning infrastructure<br />
spending of US$272 billion in the next<br />
five to seven years, which will equate<br />
to one-third of the total spending for<br />
the entire GCC. (Source: Business Monitor<br />
International, United Arab Emirates<br />
Infrastructure Report Q3 2009). Significant<br />
infrastructure spending is occurring on<br />
power and water, roads, ports and rail.<br />
Financing and delivery of some of<br />
these large projects have opened up<br />
to the private sector. Bids for the first<br />
PPP in road development are under<br />
consideration, and power and water<br />
projects have been attracting private<br />
sector financing for some time.<br />
Transport projects<br />
Transport projects are taking centre<br />
stage. Even in Dubai which has<br />
experienced a major property decline,<br />
more than 45 per cent of 2010 budget<br />
expenditure (US$4.71 billion) was<br />
allocated to infrastructure and transport.<br />
(Source: Middle East Economic Review,<br />
‘The UAE’s economy: a tale of two cities in<br />
2010’, by Richard Nield).<br />
The UAE is moving forward with plans<br />
to be part of the US$100 billion GCC<br />
Railway Project which will link the Gulf<br />
countries together by rail. The UAE’s<br />
portion of the GCC rail project comprises<br />
a 1,500km domestic rail network which<br />
is due to be delivered by 2015 with a<br />
forecast value of US$11 billion. Light<br />
rail and metro systems are also under<br />
consideration.<br />
Rejuvenation of ports<br />
Abu Dhabi is building and rejuvenating<br />
a series of large ports. In all emirates,<br />
road and bridge construction and<br />
upgrades are receiving significant<br />
funding.<br />
Government investment in Abu Dhabi<br />
is flowing into regional areas such as Al<br />
Ain in the south, and Al Gharbia (known<br />
in English as the Western Region),<br />
which despite their small populations<br />
contribute roughly half of the UAE’s GDP<br />
from agriculture and oil and gas.<br />
Green building<br />
Green building and sustainable<br />
infrastructure is being championed and<br />
mandated in Abu Dhabi by the Urban<br />
Planning Council and Department of<br />
Municipal Affairs under new building<br />
codes effective from 1 September 2010.<br />
18 • <strong>Australian</strong> <strong>Building</strong> Regulation Bulletin