While the contracting sector suffered during 1999-2000 as there were few real estate developments, the market is expected to make a comeback over the next year. Increased emphasis is being given to the tourism and industrial sectors of the Northern Emirates comprising Sharjah, Fujairah, Ajman, Ras Al Khaimah and Umm Al Quwain.
Government projects such as the Shaikh Zayed housing programme are expected to give a boost to the contracting and building materials = sector. In addition, a number of free trade zones have been set up to pull in more investors. The Northern Emirates are home to a large number of construction-related manufacturers, ranging from cement to ceramic and paint producers.
The Sharjah government proposes to direct its economic thrust onto a 'public private partnership' course to drive growth, according to a senior official. ''Our three focus areas will be industrial development based on the petrochemicals downstream sector; a Dh1.5 billion investment in shopping centres to energize the retail market; and tourism avenues, with the accent on edutainment and resort and beach-front development,'' said Shaikh Tariq bin Faisal Al Qassimi, chairman, Economic Development Department, Free Zones Authority and Commerce & Tourism Development Authority.
He hinted that a few joint sector entities would be established to develop the resorts.
Shaikh Tariq pointed out that GDP had grown from Dh9.5 billion in 1990 to Dh15 billion in 1995 and further to Dh19.5 billion at present. The number of manufacturing units had grown from 295 in 1990 to 1,000.
''The Saif (Sharjah Airport International Free Zone) and Hamriyah free trade zones have been instrumental in this development, having charted 30 per cent annual growth,'' he said. Saif has 507 companies and Hamriyah, 135.
He said the bid to re-energise the retail sector would be through the numerous shopping centres coming up, including Mega Mall, Souq Al Madina, Crystal Plaza and Al Nahda Centre, as well as a Dh20 million facelift for Souq Al Marqazi (Sharjah's central market).
Fujairah is reported to be witnessing a mini boom with a number of hotels being built which will enable the emirate to accommodate more than 150,000 tourists per year. In addition, four new hotel projects are in the pipeline. Two projects are under negotiation, including a 500-room hotel and a golf and marina project. In a bid to boost the tourism industry, the government of Fujairah is improving the infrastructure while attracting local and foreign investors in the sector.
Several new buildings have come up with more than 20 buildings currently under construction in Fujairah. Among the latest projects planned for the emirate is an oil refinery project with a capacity of 50,000 barrels per day to be built by a Russian firm. Work on the project, estimated to cost of $150 million, is to start next year.
Power & water
The Sharjah Electricity and Water Authority (Sewa) has a Dh1.3 billion budget for this year, which earmarks Dh693 million for new projects and Dh643.8 million for current expenditure and operational expenses.
Ten new projects are being implemented in Sharjah by Sewa this year. These include: The Dh200 million Phase II of the natural gas distribution network; aDh170 million project for the procurement and installation of two new desalination units at Al Layyah power and desalination station; a Dh100 million control centre for the operation of transmission stations in the emirate; a Dh80 million power grid between Khor Fakkan and Kalba on the east coast, work on which is now in progress; and Dh52.6 million project for the 132 kV distribution stations at Al Nassiriyya and Liyyah plants, among other projects.
Sewa has embarked on Phase Two of the Sharjah gas distribution project. The first phase of the gas distribution network for the emirate was completed late last year at a cost of Dh250 million.
Sewa is commissioning the second phase of its Layyah desalination expansion project. The phase involves the installation of two multi-effect desalination units, each with a capacity of 5 million gallons per day (mgd). The Layyah project, being implementedin three phases, aims to boost the plant's current capacity of 22 mgd to 42 mgd at a total cost of Dh700 million.
Other major projects being undertaken include desalination and power generation plants at Sajaa and Wasit and the laying of new trunk mains in the emirate.
The Sajaa plant consists of one reverse osmosis desalination unit of 5 mgd capacity, which has raised its total water production capacity to 60 mgd, and entails an investment of Dh65 million. Trials are under way with commissioning to follow shortly.
The Wasit project is being executed over four phases at a total cost of Dh1.55 billion with the first two phases, entailing an outlay of Dh820 million, already up and running since late last year. The third phase, awarded to awarded GE international under a Dh210 million contract, entails two new gas turbines with a total installed capacity of 200 MW together with attendant civil works.
The two turbines will increase total electricity produced at the plant to 1,500 MW, which is expected to cover Sharjah's projected needs for power in the near future.
Meanwhile, the Dh20 million ($5.5 million) premises for Sewa at Layyah off Sharjah Creek was officially opened in May.
The UAE has set up a new body called Federal Electricity and Water Authority (Fewa), to be responsible for power generation and distribution and the production of desalinated water in the Northern Emirates.
Fewa is setting up a Dh72 million desalination plant in Ajman by the Fewa in a bid to ease the water shortage in the central region. The plant will produce 3 mgd. Fewa also plans to construct another station in Ras Al Khaimah. A 100 MW turbine at Ras Al Khaimah's Nakhil power station has been installed and another turbine will be installed at Fujairah's Qadfa station soon.
Airport, port and free zone
Major plans have been drawn up for further expansion of Sharjah Airport's dome-shaped passenger terminal in anticipation of significant growth in air traffic movement. Mohammed Ali Hajri, director-general of Sharjah's Department of Civil Aviation (DCA), said the extensions will complement the overall design of the existing terminal.
The DCA is currently studying architect's plans for these extensions which will be built as two double-storey buildings curving outwards from both sides of the main dome, resembling wings. The extensions will quadruple ground floor space in the terminal and provide new offices for the DCA, Sharjah Airport Authority, and airlines and other service providers.
Although no firm start-date for the building programme has been set, the DCA expects to approve the plan before the year-end with a view to the extensions being constructed in about two years' time.
Meanwhile, a new Dh45 million freight centre was opened recently at the airport. The 13,000 sq m facility will enable Sharjah to handle increased volume of air freight and to achieve a highest annual cargo traffic.
With the addition of a new freight centre, the airport has five cargo terminals with a total floor area of 32,000 sq m served by separate cargo aircraft parking positions, equipped for loading 14 narrower of wide-bodied aircraft, or a combination thereof.
The Port of Fujairah has appointed Mott MacDonald of the UK to provide construction management service for a major port expansion project which is designed to accommodate the new generation of larger container ships up to 6,000 teu capacity and bulk carriers up to 90,000 tonnes dwt.
Under the expansion plan, the berths would be extended by another 600 m at 15 m depth and provide an additional 100 m of berth for tugs and service vessels.Construction is scheduled for completion in 2002.
Work on the Technology Park at the Ras Al Khaimah Free Trade Zone is to be taken up in phases. It is one of the three elements of the zone, the others being a Business Park and Industrial Park.
The authority is simultaneously developing a 2,300 sq m site for an office and warehouse complex atop 15 hectares at the Industrial Park as part of its Phase One plan. The current outlay on developing the zone is Dh20 million. The total investment at the zone including infrastructure and private sector is expected to be around Dh150-200 million in five years.
The first phase envisages a warehousing complex and development of 15 hectares for 27 plots. The Business Park located ahead of the zone's head office has already been completed into 36 offices for trading and service companies.
Hotels & leisure facilities
Considerable impetus is being given to the tourism sector especially in Sharjah and Fujairah.
A Dh80 million project linking two lagoons in Sharjah which expected to turn the area into a major tourist attraction is nearing completion. Three bridges have been built over the 915-m long and 30-m wide Al Majaz Canal linking two newly-developed lagoons in Al Khan area to the Khalid lagoon.
There are plans to give the area a Venice-style touch by operating boats to ferry passengers between the two lakes along the canal. The canal will also have restaurants, coffee shops, entertainment centres and other facilities on both sides and construction work to house them had already started.
The project also involves building several roads on both sides of the canal, a natural gas pipeline under the canal and a high voltage electric cable that will run in the canal. The canal project is expected to help reduce pollution by providing a smooth flow of water back to the sea.
The Fujairah Tourism Board says that the emirate has attracted $136 million in tourism investment, the fruits of which include three new hotels now under construction to be operated by Le Meridien, Three Corners Emirates and Rotana. The 219-room hotel to be managed by Le Meridien Hotels and Resorts is a 20-storey property located on the Fujairah coast costing Dh155 million. The Three Corners hotel is a 152-room resort while the Rotana group will build a 200-room hotel to be completed within three years.
Other projects proposed include hotels run by Westin, Crown Plaza and up to three hotels in a major resort by a Germany company, ACN. The assumption is that Fujairah will operate in the international winter sun market and compete with destinations such as Egypt's Red Sea resorts.
Commercial complexes
Cansult has completed design work on the new Sharjah Expo Centre/trade centre to be built in the Al Khan area. Construction work is expected to start shortly. The estimated $100 million building will rise to 304 m and consist of 52 floors. The main block will house the Sharjah Chamber of Commerce and Industry, expo centre, conference halls and other commercial representative offices.
Construction work has started on the multi-million-dirham Crystal Towers, a commercial and residential complex, off Khalid Lagoon near the Central Market in Sharjah. The project will comprise two 17-floor residential towers and a third tower for commercial purposes with 68 offices. It will including a shopping mall, a showroom, a health club, fitness rooms for women and men and swimming pool, restaurants and fast-food outlets.
The Al Fardan Group is to double its investments in its Sharjah shopping mall to Dh200 million, through a twin-tower residential complex. Work has started work on the second phase of Al Fardan Centre project, which involves the construction of two towers above the existing mall structure. Each tower will have 17 floors with 16 residential flats on each storey. The complex will also have a health club and is expected to be completed by the first quarter of 2002.
A new City Centre retail development is planned for Sharjah. The shopping mall, to be located on Al-Wahda Street, will be the third City Centre in the UAE. The $25 million project includes a mall, 1,500 parking spaces, a hypermarket, anchor stores, other retail outlets, a children's entertainment area and a food-court. The client is the local Majid Al-Futtaim Group of Companies.
The 35-storey Al Buhairah Insurance Tower is under construction in the Al Majaz area of Sharjah. The Dh150 million project will have offices, four, three and two-bedroom apartments, a showroom or a bank, a two-level basement car-park, as well as a health club and a swimming pool. The project is scheduled for completion in April 2002.
Al Massa Cinema has opened a new complex comprising three theatres in Sharjah and plans are afoot to increase the number to around eight. Al Massa also plans to open a complex of 10 cinemas in Ras Al Khaimah in the next two years.
Dana Plaza Centre's new hypermarket has opened in Fujairah. The facility, the east coast's first establishment of its kind, was part of the third phase of construction at Dana Plaza Centre.
Education
Projects worth Dh144 million are being carried out for the Ministry of Education and Youth in various parts of the country. They include the construction of kindergartens and schools for various levels. Sharjah has six projects, Dubai and Ajman five each, Umm Al Quwain and Fujairah three each and Ras Al Khaimah four. The number of schools in Sharjah is expected to rise to 180 with the opening of the six new schools this year.
Other projects