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By the end of November 2017, the value of railway projects in the GCC accounted for more than half of the total projects.

The UAE government is increasing investments in the development of transport projects to make commuting easier for residents.

According to a study released by Dubai-based BNC Network, the number of active transport projects in the UAE increased from 470 in November 2016 to 496 by the end of November 2017. The total value of projects increased from $81.9 billion to $87.1 billion, an increase of 6.3 percent.

The study revealed that the transport sector constitutes four percent of all active projects in the UAE and in dollar terms, these projects account for 11 percent of the total estimated value for all sectors in the country.

In the GCC, it noted that the total value of transport projects in the region increased by six percent to $392.2 billion (Dh1.39 trillion) by the end of November 2017 compared to $369.8 billion in the first 11 months of last year.

The number of active transport projects in the GCC, meanwhile, increased from 1,413 to 1,424 during the comparative period.

"Relatively high investment in infrastructure clearly shows that the governments of the GCC countries are planning to reduce dependence on hydrocarbon and make their economies more sustainable by expanding and improving infrastructure that will help cross-border trade, tourism and public mobility that are essential for diversification," said Avin Gidwani, CEO of BNC Network.

"Once completed, these projects will change the way people move within the region as well as the way goods are traded and transported from one country to the other."

Going big on railways

By the end of November 2017, the value of railway projects in the GCC accounted for more than half of the total projects, with 139 projects worth $207.5 billion (Dh761.5 billion) related to the sector, accounting for 53 percent of the total value. Most of these smaller railway projects currently underway across the region will be connected to the GCC railway.

Meanwhile, around 1,069 roads and highway projects were active across the region with an estimated value of $122.6 billion (Dh450 billion). In the GCC aviation sector, as many as 100 projects with a combined value of $37.4 billion (Dh137.25 billion) were active, mostly related to infrastructure development.

Saudi Arabia is developing a number of small airports to have them connected to the rest of the country as mobility among GCC residents is growing, necessitating greater connectivity. In the UAE, Al Maktoum International Airport also represents a significant portion of these projects.

Also, around 116 marine projects with a combined estimated value of $24.7 billion (Dh90.6 billion) will also expand the region's marine transport sector.

The GCC's transport sector constitutes six percent of all active projects in the region and in dollar terms, these projects account for 16 percent of the total estimated value, according to the report.

In November alone, a total of 11 transport projects with a combined estimated value of $811.6 million moved to the construction stage from other stages during November 2017.

A total of 32 transport projects with a combined estimated value of $1.4 billion were completed during November.

 

SOURCE

https://www.khaleejtimes.com/