importance of infrastructure and aims for the UAE to be
among the best in the world in the quality of airports, ports,
road infrastructure, and electricity. And leading telecommunications infrastructure will allow the UAE to become a
forerunner in the provision of Smart services” (UAE Vision
2021 2018). A Smart and Sustainable City is a key theme in
Dubai’s 2021 Strategy Plan. It focuses on developing “fully
connected and integrated infrastructure”, promoting sustainability in managing and consumption (His Highness
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum
2018). It is related to the Dubai Strategic Plan 2015 (DSP
2015), which drove major investments in infrastructure
(Government of Dubai 2018). Abu Dhabi Economic Vision
2030 focuses on four key priorities areas. Infrastructure
development and environmental sustainability is a priority
area and “Develop a Sufficient and Resilient Infrastructure
Capable of Supporting Anticipated Economic Growth” is an
ongoing policy focus (Goverment of Abu Dhadi 2008). To
sum up, the UAE is actively pursuing infrastructure development with emphasis on sustainability, quality, and economic growth.
5 Infrastructure in UAE
5.1 History
The UAE has a long and distinguished leadership and tradition in infrastructure. Its history and evolution have been
defined, to a large extent, by infrastructure. It can be argued
that Dubai has defined its global prominence based on
building an enabling business environment through infrastructure. The discovery of oil was not only producing revenues to finance infrastructure projects. Oil exploration and
energy infrastructure was accompanied by the development
of commercial and transportation infrastructure. Most
importantly, investment in infrastructure might be an effective method to obtain significant returns in diverse industries, diversify risk and increase resilience. The UAE has
significantly diversified its economy by investing in different
types of infrastructure. At the same time, it has strengthened
other competitiveness pillars as macroeconomic stability and
business dynamism. Economic development and infrastructure seem to have a symbiotic relationship in UAE.
5.2 Port and Airport Infrastructure
Port Rashid and Jebel Ali ports are often quoted as examples
of vision and leadership. The latter was developed in a
period of uncertainty and it displayed a remarkable degree of
proactive far sightedness. The recent mega project of Khalifa
port displays the continuing commitment of the UAE in port
infrastructure investment. Ports have been a business enabler
for the UAE to become an important trading hub. In addition, it enabled UAE corporations to expand worldwide.
Notably DP World became one of the biggest global port
operators. In a similar manner, the project financing of airport infrastructure has demonstrated significant growth.
The Dubai International Airport (DXB) did reach the first
position in passengers in 2014 and since then it has remained
among the top airports in the world. From approximately 9
million passengers in 1997 it has reached around 90 million
in 2017 (Airports Council International 2018). This tenfold
increase in 20 years was supported by substantial infrastructure investment. The development of infrastructure has
provided the opportunity to The Emirates Group to rapidly
expand globally. Emirates Airlines and Emirates Skycargo
are some of the companies of the group and among the
largest airlines and cargo airlines, respectively. The Abu
Dhabi International Airport and Etihad are also expanding
fast. Another airport, the Al Maktoum International Airport
was recently developed, once again demonstrating the government’s intentions to invest in large-scale projects.
What is important in both port and airport infrastructure is
that they enhance access and economic activity. It has been
found that airport infrastructure does not only diversify the
economy, but it also contributes significantly to manufacturing, wholesale and retail, construction, hotels and
restaurants and other social and personal services (Oxford
Economics 2014). The three biggest Emirates, Abu Dhabi,
Dubai, and Sharjah had more than 21 million tourists in
2016 and this number follow increasing trends. Without
airport and associated development of airlines, this would
have been very difficult to achieve. Travel and tourism
combined contribute approximately 12% of GDP (UAE
Government 2018a).
5.3 Tourism and Cultural Infrastructure
Tourism is a key economic driver of UAE economy. It is
enabled by sustainable and top-quality infrastructure, which
attracts tourists with high purchasing power. Dubai tops the
list of the global destination cities with average spending by
day of $537 (Mastercard 2018). Paris is in the second
position with $301. Abu Dhabi is the fastest growing tourist
city in the Middle East and Africa, with an annual growth
rate of 18.21% between 2009 and 2017 in visitor arrivals,
making it among the top 10 cities in international arrivals
growth (Haine 2018). The quality and value-added of
infrastructure and tourism in the UAE attracts this spending.
The UAE is home to one of the best tourism infrastructures
in the word. Burj al Arab is one if not the most luxurious
hotel in the world. Additionally, Dubai has the highest
number of tallest hotel buildings in the world—seven out of
Sustainability and Financing Project: The UAE Paradigm
165
among the best in the world in the quality of airports, ports,
road infrastructure, and electricity. And leading telecommunications infrastructure will allow the UAE to become a
forerunner in the provision of Smart services” (UAE Vision
2021 2018). A Smart and Sustainable City is a key theme in
Dubai’s 2021 Strategy Plan. It focuses on developing “fully
connected and integrated infrastructure”, promoting sustainability in managing and consumption (His Highness
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum
2018). It is related to the Dubai Strategic Plan 2015 (DSP
2015), which drove major investments in infrastructure
(Government of Dubai 2018). Abu Dhabi Economic Vision
2030 focuses on four key priorities areas. Infrastructure
development and environmental sustainability is a priority
area and “Develop a Sufficient and Resilient Infrastructure
Capable of Supporting Anticipated Economic Growth” is an
ongoing policy focus (Goverment of Abu Dhadi 2008). To
sum up, the UAE is actively pursuing infrastructure development with emphasis on sustainability, quality, and economic growth.
5 Infrastructure in UAE
5.1 History
The UAE has a long and distinguished leadership and tradition in infrastructure. Its history and evolution have been
defined, to a large extent, by infrastructure. It can be argued
that Dubai has defined its global prominence based on
building an enabling business environment through infrastructure. The discovery of oil was not only producing revenues to finance infrastructure projects. Oil exploration and
energy infrastructure was accompanied by the development
of commercial and transportation infrastructure. Most
importantly, investment in infrastructure might be an effective method to obtain significant returns in diverse industries, diversify risk and increase resilience. The UAE has
significantly diversified its economy by investing in different
types of infrastructure. At the same time, it has strengthened
other competitiveness pillars as macroeconomic stability and
business dynamism. Economic development and infrastructure seem to have a symbiotic relationship in UAE.
5.2 Port and Airport Infrastructure
Port Rashid and Jebel Ali ports are often quoted as examples
of vision and leadership. The latter was developed in a
period of uncertainty and it displayed a remarkable degree of
proactive far sightedness. The recent mega project of Khalifa
port displays the continuing commitment of the UAE in port
infrastructure investment. Ports have been a business enabler
for the UAE to become an important trading hub. In addition, it enabled UAE corporations to expand worldwide.
Notably DP World became one of the biggest global port
operators. In a similar manner, the project financing of airport infrastructure has demonstrated significant growth.
The Dubai International Airport (DXB) did reach the first
position in passengers in 2014 and since then it has remained
among the top airports in the world. From approximately 9
million passengers in 1997 it has reached around 90 million
in 2017 (Airports Council International 2018). This tenfold
increase in 20 years was supported by substantial infrastructure investment. The development of infrastructure has
provided the opportunity to The Emirates Group to rapidly
expand globally. Emirates Airlines and Emirates Skycargo
are some of the companies of the group and among the
largest airlines and cargo airlines, respectively. The Abu
Dhabi International Airport and Etihad are also expanding
fast. Another airport, the Al Maktoum International Airport
was recently developed, once again demonstrating the government’s intentions to invest in large-scale projects.
What is important in both port and airport infrastructure is
that they enhance access and economic activity. It has been
found that airport infrastructure does not only diversify the
economy, but it also contributes significantly to manufacturing, wholesale and retail, construction, hotels and
restaurants and other social and personal services (Oxford
Economics 2014). The three biggest Emirates, Abu Dhabi,
Dubai, and Sharjah had more than 21 million tourists in
2016 and this number follow increasing trends. Without
airport and associated development of airlines, this would
have been very difficult to achieve. Travel and tourism
combined contribute approximately 12% of GDP (UAE
Government 2018a).
5.3 Tourism and Cultural Infrastructure
Tourism is a key economic driver of UAE economy. It is
enabled by sustainable and top-quality infrastructure, which
attracts tourists with high purchasing power. Dubai tops the
list of the global destination cities with average spending by
day of $537 (Mastercard 2018). Paris is in the second
position with $301. Abu Dhabi is the fastest growing tourist
city in the Middle East and Africa, with an annual growth
rate of 18.21% between 2009 and 2017 in visitor arrivals,
making it among the top 10 cities in international arrivals
growth (Haine 2018). The quality and value-added of
infrastructure and tourism in the UAE attracts this spending.
The UAE is home to one of the best tourism infrastructures
in the word. Burj al Arab is one if not the most luxurious
hotel in the world. Additionally, Dubai has the highest
number of tallest hotel buildings in the world—seven out of
Sustainability and Financing Project: The UAE Paradigm
165