Abu Dhabi construction: Executive decision

There was a lot of excitement and anticipation when the $27bn Saadiyat Island Cultural Precinct was announced originally, with a roster of projects to put the UAE on the global cultural map, from the Louvre to the Guggenheim. Then the downturn put the brakes on such ambition, and dark clouds began to gather around Saadiyat. Rumours ranged from project cancellations to redesigns to a more fundamental lack of investor appetite.

Now the Executive Council of Abu Dhabi has announced that the Cultural Precinct is on track once again. The local media seems to have focused on the fact that the opening dates for the museum projects have been delayed (yet again), and that the final budgets and construction timeframes have not been announced.

However, while the Executive Council’s proclamation lacked detail, it has served to galvanise the construction industry, as consultants and contractors speculate as to what is going to happen next. Many companies had turned to the Abu Dhabi market when Dubai began to falter, but ultimately Abu Dhabi began to display similar signs of overheating. This left many contractors and consultants over-extended and over-exposed.

Now the Executive Council has effectively laid out a roadmap for the progression of infrastructure projects in the Emirate, from the Cultural Precinct to industrial estates, housing, education and healthcare. The investment community has also responded positively, with Moody’s declaring that this had bolstered the TDIC’s credit profile. In August last year the TDIC announced it had cancelled its tender for the Guggenheim, while it revealed further delays to the project in October.

The Executive Council has now made a public commitment to the museum opening in 2017, which is very good news for all who have worked on this project to date. The Louvre is expected to open in 2015 and the Sheikh Zayed National Museum in 2016. The TDIC said in a statement that “substantial work” has already been carried out on the Cultural Precinct, including finalising the architectural designs and completing the foundation work.

The Executive Council also revealed that Emirates Road in Dubai will be extended all the way to Abu Dhabi, which will help alleviate existing traffic pressure on the main road. Abu Dhabi will also get a tram system, with Spanish consultant Sener reporting that this will be a 30km project focused on the city centre. Together with the completion of the Salam Street tunnel project, the benefit for regular commuters will be immense.

Of course, all this development is clearly linked to the Abu Dhabi National Vision 2030. The government has clearly defined goals of where it wants the Emirate to be by that time. Despite the downturn and the subsequent impact on construction and investment, it is clear that this plan has not been affected, and is still on track. Importantly, the main focus now is on improving the quality of life for all its citizens, from providing more social housing to building more schools, roads and hospitals.