Abu Dhabi’s drive to reinvent itself as a hub of tourism and culture is luring in a fresh wave of Australian firms keen to cash in on the emirate’s lucrative construction deals.
More than 235 new Australian businesses registered in the UAE during 2010, Raymi van der Spek, chairman of the Australian Business Council, Dubai, said.
This adds to round 300 Australian companies already based in the country, many of which have shifted their focus from Dubai to the capital in the wake of the emirate’s real estate crash.
“It would be clear that almost all Australian business that are in the UAE, who probably started their lives in Dubai, have started to move their focus towards Abu Dhabi,” van der Spek told Arabian Business.
“There is a clear signal in Abu Dhabi of an overt desire to significantly develop the emirate, whereas in the past, that role has been played only by Dubai. Obviously development leads to all sorts of growth and business opportunities.”
Abu Dhabi has unveiled a string of tourism projects aimed at enhancing its status as a cultural destination. Its $32.6bn pipeline includes the first overseas branch of The Louvre and an outpost of the Guggenheim Art Museum.
The emirate’s tourism arm, the TDIC, has more than 55 projects planned, ranging from golf clubs to hotels, to offshore islands.
On infrastructure, Abu Dhabi is investing some $82bn in roads and an emirate-wide rail network.
Of the 300 Australian companies registered in the UAE, 100 are in the construction and engineering sector, van der Spek said.
Elizabeth Gordon, trade commissioner for Austrade in Dubai, said the agency is predicting a surge in construction trade between the two countries in 2011.
Last year, Australia exported $78.2m in construction-linked products to the UAE.
“The big opportunities for Australian companies are in the infrastructure area, that’s the big story for Australia,” she said. “We see opportunities in things like the construction of Masdar city, the construction of the rail network, the capital district.”
A recent code-sharing deal between Abu Dhabi carrier Etihad and Australia’s Virgin Blue could help open up job opportunities for Australian firms, she added.
“There are in the region of a hundred flights a week between Australia and the Gulf, so the airline industry is obviously a big driver in that growth between Australia and the Gulf region.”
A number of major Australian firms have already formed joint ventures with local companies. Al Habtoor Leighton, a JV between Leighton Holdings and Al Habtoor, has 10 major projects underway in Abu Dhabi – including work on Zayed National Museum and Capital Gate – with a combined value of around $3.8bn.
“I think from a contractor’s point of view, there have been an increasing number of opportunities there,” said Chris Gordon, general manager, strategy and corporate affairs, Habtoor Leighton.
“There are significant opportunities there in building, major opportunities there in infrastructure, and those are both areas we’re focusing on.”
In December, ex-Australian Prime Minister Bob Hawke led a trade delegation to the UAE in a bid to boost bilateral investment opportunities between the countries.
“From a business perspective, I think people are starting to understand where Abu Dhabi is and the role it plays,” said van der Spek.
“They’re shifting and becoming far more aware of the existence and opportunities available in Abu Dhabi, and of course, they’re going to try and capitalise on that.”
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