Thursday, August 07, 2008

Dubai’s budget expenditure in 2009 expect more than 33% for Infrastructure projects

Dubai Department of Finance has issued Notice No2 of 2008 that starts the process for drawing up the budget for 2009. It is expected that more than 33 per cent of Dubai's budget expenditure in 2009 will beInfrastructure Projects - Slide Show earmarked for infrastructure projects.

In 2008, budget surplus touched AED 11.4 billion compared to AED 5.1 billion in 2007. The revenues for fiscal year 2008 in Dubai are expectedly pegged at AED 135 billion, while planned spending is estimated at AED 123.6 billion. In the UAE federal budget for 2008, 24.2 per cent was earmarked infrastructural projects.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Prime Minister and Vice President and Ruler of Dubai has said that Dubai's economy had exceeded all expectations as the targets set out till 2010 has been achieved in half the time. Sheikh Mohammed said, "In the year 2000, the plan was to increase GNP to $30 billion by 2010. In 2005 that figure was exceeded, with GNP reaching 37 billion US dollars. The plan also included an increase in income per capita to $23,000 by the year 2010. In 2005 the average income per capita reached $31,000."

Telecommunications: Telecommunications across all platforms in the UAE are fast and effective with fixed-line, internet and mobile connectivity amongst the best in the world. The 2007 Global Information Technology Report (GITR), commissioned by the World Economic Forum(WEF) in cooperation with Insead Business School, puts the UAE at the top of the ‘Net-worked Readiness Index' in the Middle East and North Africa (MENA) region and ranks the UAE in 29th position worldwide out of 122 countries, beating many European nations. Etisalat, formed in 1976, have 6.3 million customers on its mobile phone network, 1 million active users of 3.5G and 3G data services, 1.3 million subscribers to the fixed line network, 800,000 subscribers and over 2.5 million internet users. When du's 1 million mobile customers are included, the telecom sector's penetration rate is the highest in the region and comparable to the best in the world.

UAE Airport Infrastructure InvestmentAirports: UAE alone account for 60 per cent of all airport investment in the Gulf. Geographically, the country's reach is considerable, sweeping through Africa and the Middle East and linking these regions to Europe, Asia, Australia and the Americas. Over AED 77.5 billion (US$28.4 billion) is being spent to develop 7 airports in the UAE.

Road Network: The Dubai Government has come up with a plan to enhance and integrate the existing road network with the public transport system. This strategic plan will cater to the existing and future road development requirements in Dubai until 2020. The government has allocated a budget of AED 44 billion to develop road infrastructure that will add 500 km of new roads in the emirate.

Public Transport: Dubai is well-served by its public transport compared to other metropolises. About 6,900 taxis serve its population of about 1.4 million or 4.9 cabs per 1,000 people, compared to 1.6 in New York, 2.7 in London and 4.7 in Tokyo. Dubai Road Transport Authority operated 504 buses on 69 lines, transporting 88 million passengers over approximately 2 million trips during 2006. 620 new luxury buses has been added to the already existing fleet to run on intra-city and inter-city routes, including 300 articulated (long) buses and 170 double-deckers. The emirate's bus service counts 500 coaches. In fact, the transport authority is expected spend AED 52.5 billion over 5 years to expand bus, road and rail networks, RTA announced in March 2008.

Dubai's AED 15.5 billion, 74.6-km metro project launched in October 2005 is on schedule with work taking place around-the-clock. Major construction work is evident on the 52.1-km Red Line between Jebel Ali Port and Al Rashidiya. Progress is also visible in the construction of the 44.1 km of elevated track as well as on the 12.6 km of track that will run underground, 300 m of which will be under the Creek, and partially start services by September 2009.

Water: UAE consumes more than 3.2 billion cubic meters of water every year and is near the top of the global index for the highest water consumption per capita. At a conservatively estimated minimum of 10 per cent per annum until 2010, most of the UAE's water is produced by desalination, usually in conjunction with power generation and older plants are being expanded and new plants are being built to meet the enormous demand.

Electricity: The UAE needs to spend more than US$10 billion to meet soaring power demand. The current total capacity for electricity production in the UAE is around 16,670 MW compared to 9600 MW in 2001. Industry estimates expect the capacity to rise by 60 per cent to almost 26,000 MW by 2010. In response to escalating demands, the UAE Government has announced plans to expand its 10-gigawatt production capacity by more than 50 per cent by 2017. The government is undertaking necessary actions to provide adequate supply of electricity, especially in rapidly growing emirates such as Dubai, which has recorded a 14 per cent increase per year.

Ports: The UAE has over 20 ports, ranging from state-of-the-art oil terminals, industrial ports and container-handling facilities to dhow and wooden-boat wharfs. Jebel Ali Port, DP World-UAE's flagship terminal in Dubai and the eighth largest port in the world in terms of output, was awarded the title of 'Best Seaport -Middle East' for the thirteenth consecutive year at the Asian Freight and Supply Chain Awards (AFSCA) 2007.

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