The wait-and-watch era is well in the past for the UAE capital.  Abu Dhabi is moving ahead in giant strides to make a formidable presence in the international scene with a wave of spectacular projects that are being eagerly lapped up by investors and buyers.

The iconic new developments covering the real estate, tourism, industrial, commercial and educational sectors show the growing confidence of the emirate.
With oil prices not showing any signs of let up, Abu Dhabi – the wealthiest of the UAE emirates, boasting a per capita income among the highest in the world at 46,147 and proven oil reserves that are estimated to last for another 150 years – is well poised for even further growth.
The good news is that the boom is still in its nascent stages and the capital city is still evolving. According to Ibrahim Eskiocak, vice president of First Gulf Bank’s property management division: “High end investors, developers, marketers and buyers in Abu Dhabi are absolutely safe for the next five years and beyond,” he says, adding that investors were buying up properties even before the blueprints could be taken off the drawing boards.
 With rents skyrocketing by an average of 38 per cent, the population on the rise and an acute shortage of residential units, demand is far outstripping the supply in the UAE capital.
 “The Abu Dhabi market will, in the years to come, do even better than others. It’s still a virgin market, has a very strong economy and investor interest is on the rise,” says Eskiocak.
Real estate and industrial infrastructure developments are propelling the construction sector to heights that the emirate has not seen at least for the past two decades. A selection of some of the massive developments that are unfolding include $27 billion Saadiyat Island, the $14.7 billion Al Raha Beach, Al Gurm Resort and the Central Market projects, Al Reem Island (including Shams Abu Dhabi, Najmat Abu Dhabi and Marina Square), Lulu Island, $9.26 billion Danet Abu Dhabi (Pearl of Abu Dhabi), the 20 sq km Mohammed Bin Zayed City, in addition to the $5.7 billion Abu Dhabi International Airport expansion and the $2.18 billion new Khalifa seaport and industrial zone.
Many of these mega developments address the housing requirements of the emirate. According to the Dubai-based RSP Group, development advisers in real estate, hospitality and investment, the population of Abu Dhabi will double in the next 10 years and between 225,000 to 250,000 new units of housing will be required within the next decade.
According to Saleh Salem bin Omeir Al Shamsi, chairman of Abu Dhabi Chamber of Commerce and Industry (ADCCI), total investments in construction projects during 2006-2007 is expected to reach Dh47 billion ($12.80 billion), including commercial and residential buildings, airport infrastructure, industrial parks and work for government institutions and road construction. This is just one-tenth of the estimated Dh500 billion that he reckons would be invested in wide-ranging projects in Abu Dhabi during the next five years.
Projects that will be tendered this year alone will soar by 173 per cent to Dh23.12 billion from Dh8.6 billion last year, according to Abu Dhabi National Exhibitions Company (Adnec), which says that this trend will continue with Dh24.59 billion worth of new construction projects next year.
Giving a further boost to the construction sector is the fact that the emirate’s “economy will attract $4 billion in Foreign Direct Investment (FDI) during this year. In view of the establishment of new industrial zones and 30 industrial clusters, coupled with the new property ownership law, the flow of funds in the form of FDI will double in the coming years,” says Al Shamsi.
Abu Dhabi has earmarked several real estate projects, where foreigners can hold property under 99-year leases. Early this year, the government allowed 100 per cent ownership of property in the Abu Dhabi Industrial City, a two-phased development that covers 24.5 sq km. Major industrial initiatives include plans for setting up two multi-billion-dollar aluminium smelters and two steel rolling mills in the emirate.
The newly-announced 30 industrial clusters will include metal, chemical and petrochemicals, food processing industries, construction and building materials, oil and gas services and automobiles. These projects will transform Abu Dhabi into an industrial, services and logistics hub of international standards.
The government wants to boost the current annual tourism figure of less than one million visitors to three million by 2015, and numerous hotel projects are under way to add 25,000 rooms in the next decade from the current 2,500. Among the massive developments that have been initiated to accommodate the influx of visitors is the expansion of Abu Dhabi International Airport.

Airport
Major developments have been taking place to speed up work on the ambitious Dh21 billion ($5.7 billion) redevelopment and expansion of Abu Dhabi International Airport, which aims to transform the emirate’s gateway into a “best-in-class” airport (see UAE Focus).
Abu Dhabi Airports Company (Adac) has just appointed the French Aeroport de Paris, Ingenierie (ADPi) to undertake the design and supervision services for the airport's new air traffic control complex (ATCC), which is to be positioned midway between two runways. It will be designed to include a five-storey technical and support building integrated with a 110-m-high visual control tower. When it goes operational by April 2008, the tower will enable the airport to handle up to 70 take-offs and landings per hour.
In June, Adac selected Kohn Pederson Fox Associates (KPF) as the top finalist master architect for the Midfield Terminal Complex of the airport. The 220,000 sq m Midfield Terminal is projected to handle 20 million passengers per year when it comes on stream by 2010, marking the end of phase one of the redevelopment programme. The facility's flexible and modular design will allow gradual expansion to an ultimate level of over 50 million passengers per year.
The airport's capacity has almost doubled to 6.8 million passengers since August last year, following renovation and expansion of the main terminal and creation of a second one, just 900 m away.
Major infrastructural projects, including a second runway and a mega terminal, are just entering the construction phase. Odebrecht-Al Jaber, a UAE-Brazilian joint venture has launched work on the construction of the second 4,100-m runway, spaced at a distance of 2,000 m from the existing runway. Work on the category 111, all-weather runway is to be completed by November 2007. Etihad Airways is planning to construct its own dedicated 55,000 sq m terminal at the airport. The first phase should be completed before the end of this year, with phase two to be ready in August 2007.

Commercial/residential complexes
The private sector is spearheading major property developments in the emirate and a number of new property developers have emerged recently following the pioneering ventures by Aldar Properties.
Among the largest property developments that are now being actively promoted by the government is the Dh100 billion ($27 billion) project to transform Saadiyat Island, a 27 sq m natural island off the coast of Abu Dhabi, into a tourist destination with long-term plans involving the construction of 29 hotels, marinas, villas, resorts and golf courses (see page 50).
Enabling works have been launched on the project and tenders have been issued for the construction of a bridge linking the island to Abu Dhabi city.
Saadiyat Island is the flagship project of the new Tourism Development and Investment Company (TDIC), a subsidiary of the Abu Dhabi Tourism Authority (ADTA), which is responsible for overseeing the transformation of the island, which among other innovative concepts will host the region's first Guggenheim museum (see page 52).
Another massive development is Al Reem Island, which lies 300 m off the northern shore of Abu Dhabi. The project has already enticed developers such as:
• Sorouh Real Estate Company, which is developing Shams Abu Dhabi, which accounts for 25 per cent of Al Reem island.  The first phase of the development which includes $2.72 billion The Gate district will be completed in 2008 and the first project to be built at this district will be the 83-storey Sky Tower, which will be Abu Dhabi’s tallest tower when completed (see page 54);
• Reem Investments, which has unveiled plans for a $8 billion residential and commercial project for residents and expatriates. Known as Najmat Abu Dhabi, the project will cover 1.9 million sq m and feature three districts - business, art and village. The total built-up area will be 7.5 million sq m. The central business district will include a range of 40 and 50-storey mixed-use towers that will surround the retail and the entertainment district, with two iconic 80-storey buildings at the heart.  Najmat Abu Dhabi will host a population of more than 80,000 when it is complete in 2012 with the infrastructure and first homes ready for occupation in 2008; and
• Tamouh Investments, which is developing the $1.67 billion Marina Square. Tamouh has just appointed China National Overseas Engineering Corporation (Covec), to execute the construction of Zone B of Plot 1 at the development. Aimed for completion in 2009, Marina Square covers an area of 13.2 million sq ft comprising 70 per cent residential and 30 per cent commercial districts. It will include a shopping arcade, cineplexes, branded retail outlets, restaurants, a marina, a five-star hotel, private beach access and sports facilities to name a few.
Since launching the 50-hectare Abu Dhabi Central Market project which is now under construction, Aldar Properties has continued to expand its portfolio with the $14.7 billion Al Raha Beach development on the coastline adjacent to the Al Raha hotel close to the Abu Dhabi Golf Club.
The iconic development, which will stand at the gateway to Abu Dhabi city, will include several kilometres of prime waterfront property and will include 60 towers amidst exclusive low-rise residential developments at the water’s edge. Work has already begun on land reclamation and the first sections of this new residential quarter will be completed by mid-2008. The project to be completed in 2015 will include a total retail area of 400,000 sq m and will ultimately house over 120,000 people in a self-contained new city. It will consist of eight individual, carefully-designed and landscaped precincts, covering a total area of over 500 hectares. 
Another major Aldar project is the estimated Dh1 billion ($272 million) Al Gurm Resort, dredging work on which is currently in progress (see page 60).
Meanwhile, Sorouh is also moving ahead with its second mega project Lulu island development which calls for the construction of 10 hotels and resorts, a conference and exhibition centre, and residential villas. The island, which will be linked to Abu Dhabi by bridges or a tunnel, will be a low-density development made up of beaches and park space to create a leisure destination for Abu Dhabi.
Sorouh has also joined hands with the TIDC to launch the new Dh1 billion Golf Gardens project, to be built at the Abu Dhabi Golf Club. Work on the project is due to start shortly and is expected to be completed by the third quarter of 2008. The development, which will cover 347,000 sq m, will have 389 villas and town-houses which will be offered to UAE nationals.
Sorouh is also preparing plans for a hotel at Jebel Naqfa in the eastern region of Abu Dhabi to  be built next to its already complete Al-Oyoon Village development.
Among other projects launched recently is the $9.26 billion Danet Abu Dhabi (Pearl of Abu Dhabi) to be built on Airport Road. The 210,000 sq m development, which is being spearheaded by Al Qudra Real Estate, part of the local Al Qudra Holding, will comprise five districts inspired from the different Arabic names for pearls including 34 commercial and residential towers ranging in height from 15 to 23 storeys, green areas, hotels, shopping malls and entertainment facilities.  The project, which will come up within three years, would be the first development outside the investment zones in the emirate and would not be offered to expatriates.
In addition to the hotels and resort facilities to be built within these mega developments, a series of other ventures are under way to increase the number of hotel rooms in the country. Construction work has been launched on Between the Bridges (BTB) – a complex comprising a five-star hotel, luxury villas, executive apartments and a full service retail and spa facility. Being developed by the TDIC and Al Jaber Establishment, the $218 million project – named thus because it lies on a 900 m stretch between the Al-Maqtaa and Al Musafah bridges that lead onto the island of Abu Dhabi – is due for completion in February 2007.  The centerpiece of the project will be the five-star hotel with seven levels and 220 rooms, a beautiful pool deck overlooking the white sandy beach.
The TDIC is also developing the $136.2 million Emirates Pearl, a hotel and serviced apartment resort, which will include a 240-m-high tower along the capital's Khalidiya coast, opposite the seven-star Emirates Palace Hotel. Construction of the business and leisure resort, which is expected to take two years to complete, centres around a 47-storey tower conceptualised in a new-generation podium-style designed by Austria’s award-winning architect Dennis Lems. The tower houses 352 spacious rooms and suites and 104 luxury apartments.

Industry
Following the success of the $2.72 billion Phase I of the Industrial City of Abu Dhabi (ICAD), the Higher Corporation for Specialized Economic Zones (HCSEZ) launched ICAD II in December last year, to transform Abu Dhabi into a world-class industrial, services, and logistics hub. Already more than 20 major companies have entered into negotiations with HCSEZ to establish their operations in ICAD II and have committed more than $1.9 billion to date in investment.
Sheikh Hamed Bin Zayed Al Nahyan, chairman of the Abu Dhabi Department of Planning and Economy and of HCSEZ, has indicated that several more zones will be launched that will focus on the development of over 30 industry clusters and more than 300 sq km of industrial estates.
HCSEZ has also set up the $272 million Zones Corp Infrastructure Fund – the first-of-its-kind infrastructure fund – jointly with an Abu Dhabi bank and an Australian bank. It is expected to provide a considerable boost to Abu Dhabi’s industrial and commercial zones.
This apart, the emirate is set to become home to major industrial ventures including two aluminium smelter and two steel rolling mills.
Dubai Aluminium Company (Dubal) and the Abu Dhabi investment vehicle Mubadala Development Company are to build a $6 billion grassroots aluminium complex at the proposed $2.2 billion Khalifa Port and Industrial Zone in Taweelah. The plant, work on which is expected to be launched next year, will be one of the largest single-site smelters in the world with a capacity of about 1.2 million tonnes yer year (tpy). To be developed in two phases, first production is expected to begin in 2010. Feedstock for the smelter is likely to be provided by Abu Dhabi-based Dolphin Energy on a 25 to 30-year gas supply contract, although an agreement has yet to be finalised.
A second estimated $2.17 billion smelter could be set up by Rio Tinto's aluminium product group (via its operating company Comalco Aluminium Limited) and General Holding Corporation (GHC), a fully owned entity of the Government of Abu Dhabi. Detailed studies are in progress on the construction of an aluminium smelter which could have an initial annual capacity of 550,000 to 600,000 tonnes.
Two steel plants will be built in Abu Dhabi shortly. The first is being set up by Al Ghurair Iron & Steel Company at a cost of Dh300 million ($81.70 million) in ICAD. The cold rolling and galvanising complex, would consume 350,000 tonnes of hot rolled coils and produce some 50,000 tonnes of cold-rolled full hard steel and 200,000 tonnes of galvanised material and the balance as hot rolled coils pickled and oiled (HRPO).
The second steel rolling mill will be set up by Abu Dhabi National Company for Building Materials (Bildco) in ICAD II. The estimated $61 million plant will have a capacity of about 300,000 tpy. UK-based Corus Consulting is the technical consultant.
Other large industrial projects include Abu Dhabi Polymers Company’s (Borouge) phase 3 expansion and Abu Dhabi Oil Refining Company’s (Takreer) estimated $750 million to $1 billion gasoline and aromatics expansion scheme at Ruwais.
Borouge’s $2.5 billion project will include a 540,000-tpy polyethylene (PE) and 400,000-tpy polypropylene (PP) units and will be built at its Ruwais petrochemical complex. Takreer’s project, which has received the go-ahead, involves the production of 600,000 tpy of paraxylene with an option to produce 335,000 to 775,000 tpy of benzene and 3.8 million to 4.9 million tpy of gasoline.
Technical and commercial bids for the project management consultancy services have been submitted for the project, which is expected take about 40 months to build.

Ports
The local Abu Dhabi Sea Ports Authority is to build the $2.18 billion new Khalifa Seaport and Industrial Zone at Taweelah. The new port will include a container handling terminal and piers for handling raw and bulk cargoes. The project, which is being developed through public-private partnerships, also entails an industrial estate as well as commercial and residential developments.
  The first phase of the development is scheduled for completion in five years.
 
Roads
Among the larger road development projects that is on the drawing boards is the $600 million Mafraq-Ghuweifat road scheme leading to the border with Saudi Arabia. The project will involve the widening of the highway and the construction of new intersections serving neighbouring communities. Consultants have submitted bids for the first three stages of the scheme while a fourth stage is also planned.
The Municipalities and Agriculture Department is planning a new interchange on Abu Dhabi island for Al Reem island at the intersection of Al Salam and Shaikh Hezza bin Zayed streets. The four-level interchange will involve the construction of a bridge and a tunnel. It will connect with the 600-m-long, eight-lane bridge that will link the island to the northeastern shores of the capital. Turkey’s Nurol Group is working on the bridge.

Education
A Cert City and a university campus are to be built in the emirate. The Dh1 billion Cert City is to be established by the Centre of Excellence, Research and Training (Cert), the commercial arm of the Higher Colleges of Technology (HCT).
The mega venture will comprise a cluster of initiatives on learning, innovation, thinking and business, along with a real estate project including a hotel, shopping mall and convention centre over an area of 1 million sq m.
Among other educational infrastructure projects, bids are expected to be submitted this month for the main construction package of the UAE University campus project in Al Ain, which involves three phases and the construction of the majority of the buildings. The client, Al Hikma Development Company, is also evaluating bids from three companies for the foundations works. The 290,000-sq m campus will accommodate 19,000 students.