BIG oil revenues, a vibrant private sector and the determination of governments to develop their infrastructure are sustaining a construction boom all across the Gulf.

Topping the region is the UAE, with a construction industry valued at Dh811.73 billion ($221 billion)
The construction focus is not just on glossy real estate ventures, but also on infrastructure projects such as roads, bridges, power stations and desalination plants.
A recent UNCTAD report said the GCC states attracted $1.8 billion of foreign development investment in 2003; $480 million of this flowed into the UAE. This has increased significantly in 2004 and 2005 because of the opportunities in the region, the relaxation of trade barriers and the new freehold property law.
The construction boom in Dubai and the capital Abu Dhabi has triggered one in the Northern Emirates too with top property developers joining the bandwagon with a string of projects. It was not simply a domino effect that led Sharjah, Ras Al Khaimah, Ajman, Fujairah and Umm Al Quwain to announce big-ticket ventures. On the contrary, the Northern Emirates, particularly Ajman and Ras Al Khaimah, have come out with a well-thought-out strategy – reducing dependence on traditional income-generating methods and making best use of the spillover effect that booming economies such as that of Dubai create in their rush to prosperity.
One such effect is the population shift from Dubai to Sharjah, Ajman, Umm Al Quwain and even Ras Al Khaimah as a result of skyrocketing rents. The residential market in the Northern Emirates is thus booming.

Umm Al Quwain
Umm Al Quwain became the leader in property development among the Northern Emirates this year with the formal launch of the Dh30 billion Al Salam City in March. The three-phased project, the first of which would complete in the next three years, comprises an integrated residential and commercial area, consisting of a number of residential districts.
The Al Salam City by Tameer Holdings has been designed to house up to half a million residents within an area that will includes parks, playgrounds, entertainment centres, stables and cable car facilities.
Tameer, in yet another Umm Al Quwain development, confirmed recently that it had executed 95 per cent of its Dh250 million Emirates Modern Industrial Area.

Ajman
Ajman has also announced two major projects – the Dh15-billion Emirates City and Dh1.12-billion Al Ameera Village – in the first eight months of this year.
The Emirates City by R Holdings consists of around 72 residential and commercial properties and will encompass picturesque lakes and green parks, a shopping district, mosques, five-star hotels, educational and medical facilities. Located at just a 20-minute drive from Dubai International Airport, this modern development sits directly on the Emirates Road, which is strategically linked to the other emirates of Ras Al Khaimah, Umm Al Quwain, Sharjah, Dubai and Abu Dhabi.
The Al Ameera Village, launched in May last year but officially inaugurated by Ajman Crown Prince Sheikh Ammar Bin Humaid Al Nuaimi in June this year, would include a mall, several sports centres, mosques, parks and other recreational and shopping facilities. Situated on the Emirates Ring Road and at a short distance from Dubai, the project will consist of 50 traditionally-designed residential buildings, hotel apartments, commercial areas and a shopping mall.
Several other projects such as the Dh700 million Goldcrest Dreams and the Dh110 million Orbit Tower were also announced in Ajman in the first eight months of this year. Almost all of them are freehold residential projects.

Ras Al Khaimah
This year, Ras Al Khaimah was also rubbing shoulders with other emirates of the UAE. It announced several major projects such as the Dh10 billion Mina Al Arab and the Dh3-billion La Hoya Bay development. While Mina Al Arab is being developed by RAK Properties, the developer of the Dh3 billion freehold waterfront project La Hoya Bay in the emirate’s Marjan Island is Khoie Properties (see separate report).
The mega tourist and residential community development Mina Al Arab, spread over a beachfront strip and a group of islands, will feature several themed resort hotels and two eco-hotels along the beautiful natural beaches of the islands. These hotels will provide an estimated 3,500 rooms for tourists and visitors of the emirate, besides a cluster of 3,500 residential units, mainly hotel units and standard apartments – to cater for the regional and international visitors.
While the first phase will be completed by 2008, the entire project will be complete by 2011, according to RAK Properties managing director Mohammed Sultan Al Qadi.
At the time of going to press, the ground breaking for the first phase of the Dh660-million La Hoya Bay Residence was expected in October with completion scheduled for December next year.
Among other real estate projects, Saudi-based Wesam Al Madani Group is developing yet another Dh1 billion project – Al Qasr Island – within Al Hamra Village in Ras Al Khaimah.
“We have secured the island from the Ras Al Khaimah government for Dh500,000. We are going to develop a five-star hotel (Al Qasr Island Hotel) and a castle, consisting of two 12-storey buildings, will have 1,006 apartments for sale,” says the Jeddah-based group’s owner and general manager Wesam Al Madani.
He said the development, spread on an area of 500,000 sq ft, would be built in oriental style and will have a typical oriental souq and restaurants to cater to future residents of the island. The buildings will have studio, one and two-bedroom flats. The project is scheduled to be completed by 2008.
In August, an agreement was signed between Tasees, a development and investment company in the UAE, and Al Aqariya Media Group to promote the Ras Al Khaimah Airport Free Zone-based Dh1 billion Airport Business Park. The business park consists of 10 commercial towers, each one comprising 10 floors, in addition to eight 11-storey residential towers, two tower blocks comprising furnished apartments, a luxury hotel and a cargo village. The park will also host a building for Dnata Travels on a total land area of 1.6 million sq ft.
The construction boom in the Ras Al Khaimah is having its impact on investors across the world. An illustration of this is Arabian Opportunities 2, a Hamburg-based property fund, which had recently vowed to invest around 300 million euros in the freehold property sector in the emirate.

Sharjah
A number of major projects were launched in the emirate of Sharjah, including the $4.9-billion Nujoom Islands and the Emirates Industrial City in the last quarter of last year. While the Nujoom Islands were designed to house 40,000 residents in several residential districts, the Emirates Industrial City is Sharjah’s largest industrial development project.
A handful of smaller projects such as Sama Residence and Al Boom Tower – costing Dh110 million each – were also announced this year. Sama Residence – comprising two 15-storey buildings and 180 apartments, with 24-hour security, a two-level car park and retail shops – is being developed by Shamsi and Shamsi Holdings, while the developer of Al Boom Tower – which will include 218 apartments, six shops and a 264-slot parking area, as well as a helipad on top of the building – is Sharjah-based Al Salam Contracting Company.
Property development firm Snasco has launched the Al Basateen, a mega residential and commercial project, on Meliha Road. The project, spread in over 5.5 million sq ft, will include 326 plots of land for independent villas of various areas, starting from 6,000 sq ft to 15,700 sq ft.
It has also launched the Sharjah Investment Centre (SIC), a 32 million sq ft project (see separate report).

Fujairah
Fujairah, located on the beachfront strip, is set to see up to nine hotels opening in the next five years, with Japan’s JAL already counting down to a 2007 opening. Another major hotel group Rotana is preparing to open its first hotel in Fujairah shortly.
The Fujairah Rotana Resort and Spa, which is likely to open its doors in mid-December, includes 144 chalets, eight executive suites, 14 junior suites and 84 deluxe rooms.
No major construction projects were announced in the emirate in the first eight months of this year.

Infrastructure focus
The Northern Emirates are buzzing with activity with each of the emirates having put in place its development strategies that ensure they match the growth of their richer neighbours, Abu Dhabi and Dubai. Airports, ports, roads, health, education and the power and desalination are major sectors where funds are being pumped in to support the real estate and industrial developments that are unfolding in these emirates.
A look at some of the major developments in the pipeline:
Ras Al Khaimah Port has announced plans for a $1 billion expansion strategy that will cover all ports of Ras Al Khaimah — Saqr Port, Ras Al Khaimah Port, Al Jazeerah Al Hamra Port and Ras Al Darah Port. Plans for Al Jazeerah Al Hamra Port include the development of container and general cargo services with Qeshem Free Trade Zone and Bandar Abbas, Iran and increasing the depth of the approach channel and inner harbour to 8 m.
The Umm Al Quwain government and Riyadh-based Al Rajhi Investment Group have joined forces to develop Imdad, a desalination project at a cost of $544.6 million. Imdad will treat sea water in order to provide fresh drinking water for Umm Al Quwain, other emirates and also for potential export. Imdad will also look at the possibility of electricity generation for the emirate and possibly other areas within the UAE.
The Ras Al Khaimah Investment and Development Office has launched Edrak (Education in Ras Al Khaimah), a Dh1 billion ($272 million) educational initiative aimed at turning the emirate into a world-class educational hub. The company would undertake three major projects in the first phase, involving an initial investment of Dh650.1 million ($177 million). The projects include setting up the Ras Al Khaimah campus of the US-based George Mason University, creation of the Ras Al Khaimah Medical and Health Sciences University, and setting up the Al Hamra Academy along with the Future University.
Sharjah is spending Dh3 billion ($816 million) on infrastructure projects this year to cope with the emirate’s continuing economic expansion. This is in addition to the Dh3 billion already invested in expanding its road network. According to an official, tourism has doubled in the past five years. Tourist numbers have grown from 650,000 to 1.3 million. Sharjah expects to receive up to three million tourists by 2010, more than doubling last year’s visitor arrivals. Located in the Al Saja’a area, the project is an extension to the already existing industrial area of Sharjah and is expected to be complete next year.