From glitz and glamour...

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Development will spread outwards from the CBD as projects are established on islands surrounding the capital. (Valeriano Handumon/ITP Images)

After emerging from under the British protectorate banner of the Trucial Coast, and becoming part of the UAE in 1971, Abu Dhabi and Dubai have endured a similar history but have ended up in very different places. While both emirates enjoyed the discovery of oil in the 1950s and ‘60s, this was where the similarity ended. Abu Dhabi enjoyed immense wealth while Dubai, realising its resources were limited, embarked on a frantic re-branding exercise to market itself as a business and tourist destination.

But while Dubai chose a seemingly more glamorous path, driven by a need to secure its future prosperity, Abu Dhabi kept its cards close to its chest, and chose to take its time and use the experience gleaned from other cities around the world as to how to develop itself to become a destination in its own right.

Announcements over the past year regarding the Louvre and Guggenheim being launched in the Middle East are a clear indicator that Abu Dhabi is taking its expansion plans very seriously. And this, tied in with major projects such as Al Reem Island, Saadiyat Island and Al Raha Beach, to name a few, has acted as a catalyst for the UAE capital.

"In the last couple of years, there has been a great awakening in the market to opportunity and to establishing Abu Dhabi as a global brand, which has taken a lot of thought, consideration and planning," says Terry Comeau, vice president - project planning and development, Cansult Maunsell Aecom. "It hasn't been a case of ‘build it now, ask questions later'. But there has been more of a focus from all the government ministries to come together to do intelligent design and planning at a level that the region hasn't seen."

Certainly the infrastructure challenges that have been recognised and subsequently addressed in Dubai is an avenue that Abu Dhabi is keen to avoid. "When you look at the US $150 billion (AED550 billion) worth of developments that will be underway and the infrastructure needed to service this, that's where the intelligence is focused - how to deliver infrastructure," adds Comeau.

"For us [Cansult Maunsell Aecom], this is a continuum, but what's changed is that there has been a quantum leap in terms of size and complexity and the degree of difficulty in achieving the level of infrastructure required."

Abu Dhabi's turning point, where investment in the region increased, was when the property laws were overhauled in August 2005, which allowed foreign nationals to purchase property. Speaking at Cityscape Abu Dhabi, Karen Lay, marketing manager, LLJ Property, says: "It was only last year when they started marketing property to non-UAE nationals and the choice was limited. Exhibitions like Cityscape Abu Dhabi are important; people are looking at the market, and they are seeing more coming on line, giving them more confidence. Initially there were a lot of investors buying, but now, in some buildings, they are doing one of two things: they are either buying as end users or looking at an investment strategy where they will buy smaller units which they then rent out and use the rental yield on something else."

Raed Al Hada, marketing coordinator, Reem Developers - a subsidiary of Reem Investments, claims rental prices went up 40% last year in the wake of greater attention and interest on the city.

"Abu Dhabi is different; it is, after all, the capital city," adds Lay. "And what I think they are doing is looking at other capital cities around the world and putting together a plan where they take the best elements - like the Louvre, Guggenheim and Formula One. That is the advantage of being a city that is developing now, rather than one that is 250 years old: you get the chance to look at what everyone else has done and pick the best."

Comeau agrees that Abu Dhabi is looking at a model of development akin to other capital cities or seats of government around the world. "You are looking at building a New York, an international city," she says.

But the extent of how far Abu Dhabi is willing to go was only really understood last month, when it was announced that Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, had commissioned a new master plan. The ramifications of this action will be seen in an extensive layout redesign for many of the high-profile projects.

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