THE construction markets in the Northern Emirates are looking positive, thanks to the initiatives taken by the public sector. The recovery is being led by Ras Al Khamiah and Sharjah, following a number of initiatives taken by the government, including investments in infrastructure and tourism-related projects.
According to a recent property report by Cluttons, the repositioning of Sharjah’s aviation sector has been one of the main drivers of its economy and continues to support growth of the hospitality and leisure sectors. Last year, Sharjah International Airport handled 7.5 million passengers, with almost half ending their journeys in the emirate. The emirate is also increasing the number of hotel rooms to 12,000 from the current 9,000 by 2016, the report said. The increased tourist arrivals in Sharjah are projected to continue attracting the attention of global hotel chains with Hilton Worldwide and Millennium Hotels Copthorne brand making their debut in the emirate this year.
Ras Al Khaimah’s government set up the Ras Al Khaimah Tourism Development Authority (Ras Al Khaimah TDA) two years ago as part of its effort to shore up tourism. It had also targeted to invest $500 million in tourism development projects through 2013. A number of projects are under way to boost the emirate’s tourism potential and several hotels expect to open their doors next year. Mega projects under construction include the $1.8-billion Al Marjan Island, the first man-made island project to be developed within the emirate.
Among the hotels under development on the island are the 657-key Rixos Bab Al Bahr Resort, which is expected to open in February, the 315-room Marjan Island Resort and Spa, the 265-room Santorini Hotel from The Bin Majid Group, and the 484-key DoubleTree by Hilton Resort, Marjan Island.
The UAE’s first Crowne Plaza Resort with 442 rooms is also expected to open in 2015 on Al Marjan Islands. Already open is the 346-room Ras Al Khaimah Waldorf Astoria, which was the Hilton luxury brand’s first in the UAE. The emirate plans to add 10,000 rooms by 2016.
Last month its biggest property developer, Rak Properties, announced the addition of two iconic projects to Mina Al Arab (see UAE Focus).
Ras Al Khaimah, however, suffered a major setback recently when plans to build the $1-billion Real Madrid Resort Island in the emirate were scrapped, with newspaper reports suggesting it may be moved to Abu Dhabi.
The real estate market too is showing an upturn, with the revival being particularly apparent in Ras Al Khaimah and Sharjah which are both proactively fuelling the economy, according to John Stevens, managing director, Asteco property management.
Tourism
In Sharjah, development in the tourism sector is being spearheaded by Sharjah Investment and Development Authority (Shurooq), which has announced a number of projects including the ambitious Heart of Sharjah, which will comprise diverse commercial, cultural and residential areas.
The first of the five phases in the development is currently under way.
Shurooq is also working on the five-star Al Bait Hotel project comprising 54 guest rooms, located in Heart of Sharjah. It will consist of several houses and buildings, five of which are heritage buildings that are currently under renovation. The project is scheduled for completion next year.
Shurooq is also planning a number of projects aimed at developing tourism in one of Sharjah’s oldest cities – Al Dhaid City. Al Dhaid’s geographical and historic attractions such as Al Hisn Fort, Sharjah’s oldest castles and the fish and dates market were considered to have major potential.
Meanwhile, a 25,000-hectare area in the Maleiha region of Sharjah is being transformed into a major eco-tourism destination that will reflect the regional culture, history and eco-system.
A joint venture between Shurooq and Sharjah Environment and Protected Areas Authority (EPAA), the project will feature leisure facilities and accommodation such as hotels, resorts, restaurants, and cafes. Located 40 minutes from Khor Fakkan and 90 minutes from Sharjah City, the project will be developed in a number of phases.
The Maleiha project comes close on the heels of the launch of Kalba Ecotourism Project and Sir Bu Nuair Island project, boosting Sharjah’s eco-tourism landscape.
Infrastructure
As part of efforts to enhance its transportation network, Sharjah has appointed Aecom to create a new Sharjah Transport Masterplan.
Earlier this year, Sharjah announced that it would spend Dh1 billion ($272 million) on two major road projects. The first comprises a dual four-lane carriageway extension of King Abdul Aziz Road from Abu Shagara Tunnel to Al Jubail Street alongside the new Jubail market to be built on the creek. The new extension will be integrated with the existing Sharjah Bridge which will be upgraded, taking traffic through a clover leaf interchange.
The second project involves the extension of Al Arouba Street opposite Al Layyah, where a number of government departments are located. Al Arouba Street will be upgraded into a free-flow highway with four lanes on each side. The project also includes replacing the existing Sharjah and Al Khalidiya bridges with five-lane bridges.
The Department of Public Works is also planning to construct two five-lane bridges to replace Sharjah and Khalidiya bridges leading to Khalid Lagoon. In addition, two other bridges will be built – one leading to the government department complex in Al Layyah to ease traffic coming from the Al Mamzar area, and another to ensure the free traffic flow from the government departments complex area to Al Arouba Street.
Meanwhile, work on a $630-million strategic road link from Sharjah to Khor Fakkan is scheduled to be completed in 2020. The 23.2-km dual carriageway, which passes through five tunnels in the Hajjar mountains, is expected to shorten the journey by half an hour.
In Ras Al Khaimah, the Department of Public Works has indicated that it would rebuild the old corniche road and build four new pedestrian overpasses. The department is also planning to develop the 10-km-long Hamra Road.
Meanwhile, the construction of the final part of the $13.3-million new road between Masafi and Fujairah is nearing completion. The 14-km road, which connects Masafi, Fujairah and Khor Fakkan, forms part of the second phase of a wider project to build a ring road around Fujairah to divert a large volume of traffic through the city – particularly heavy trucks heading to and from the port and the east coast.
Among other road projects in the Northern Emirates is the Umm Al Quwain gateway – a key vehicular artery which will link the emirate with other federal roads – work on which is expected to commence in January. The project will connect the King Faisal Road with the Sheikh Mohammed bin Zayed Road.
Power & Water
In the power and water sector, Sembcorp Industries is working on a $200-million expansion project for its Fujairah One Independent Water and Power Plant (IWPP), which will increase the plant’s seawater desalination capacity by 30 million gallons per day (mgpd). The plant, which will be the largest of its kind in the Middle East, is being built following the signing of a 20-year supply agreement with the Abu Dhabi Water and Electricity Company in January this year. This is in addition to an existing 22-year deal for the plant’s current output.
Fujairah One IWPP will be owned and operated by Emirates Sembcorp Water and Power Company (ESC) – a joint venture between a Sembcorp subsidiary and Union Power Holding, which is a division of Abu Dhabi’s national energy company, Taqa. The plant is scheduled for completion during the first half of 2015.
Among other developments in the power sector, Siemens has been awarded a turnkey contract by the Sharjah Electricity and Water Authority (Sewa) to supply three high-voltage substations to the areas of Abu Shagara, Al Khan and Muweleah in Sharjah. The project is scheduled for completion in 16 months.
In May this year, Al Khobar-based Saudi National Contracting Company announced that it had secured contracts worth $231.4 million from the Federal Electricity and Water Authority to commission a 33/11 kV transmission station and upgrade other stations in Ajman, Umm Al Quwain, Fujairah, Diba and Ras Al Khaimah. The company will also complete civil and cable works in the Northern Emirates. The contracts will be carried out over 15 months and will help to cope with an expected increase in demand over the next five years.
Meanwhile, the UAE is investing Dh300 million ($81.7 million) in desalination plants in Ras Al Khaimah and Ajman.
The plant in Ras Khaimah, which will be operational in two years, will have a capacity to produce 15 million gallons of desalinated water per day.
Hospitals
The UAE Public Works Ministry is implementing four projects in the Northern Emirates, worth a total of Dh512 million ($139.4 million) for the health ministry, according to a report in The Gulf Today. The projects include construction of the Maternity and Women’s Hospital in Sharjah at a total cost of Dh390 million ($106 million), 96 per cent of which has been completed; the Mother and Child Healthcare Centre at a cost of Dh33 million ($8.98 million); the Dh85 million ($23 million) Shaam Hospital project in Ras Al Khaimah, the Dh600-million ($163 million) 272-bed capacity Al Amal Hospital for Mental Health in Dubai, and the Healthcare Centre project in Al Hamediya, Ajman, costing Dh13 million ($3.5 million).
Other projects
• A major three-phase project is under way to rebuild or renovate housing for UAE nationals. The first phase will be handed over in mid-2014, the second in mid-2015 and the third at the end of 2017. As per the plan, more than 13,000 houses will be included in the project – 4,431 houses in Ras Al Khaimah, 3,537 houses in Sharjah, 587 houses in Ajman, 960 houses in Umm Al Quwain and 3,589 houses in Fujairah.
• Fairmont Hotels and Resorts will open the 254-room Fairmont Ajman in 2014 and a 194-room Fairmont Fujairah in 2015. Another hotel chain, R Hotels, a subsidiary of R Holding, is also looking at expanding to other emirates, such as Fujairah, Ras Al Khaimah and Sharjah.
• Ras Al Khaimah Free Trade Zone will expand its leasable office and warehouse facilities by 50 per cent over the next three years. It currently has about 7,000 companies based there, with about 1.5 million sq ft of warehouses and 500,000 sq ft of office space.
• Drake & Scull International is working on a government complex in Sharjah. The project is due for handover in Q2 2015.