the USA’s LEED (Leadership in Energy and Environmental
Design) sustainability ratings (Raven 2014).
5.5 Real Estate Infrastructure
The UAE is a prime global real estate market. It has the
landmark Burj Khalifa, by far the tallest building in the
world. The artificial islands of the Palms and World are
unique. The construction and financing of such megaprojects
displays the technical sophistication, as well as sustainability
in financing and business. These projects include numerous
project options. Burj Khalifa is next to the Dubai Mall, one
of the biggest shopping malls in the world, with various
luxury shops and restaurants. The area around Burj Khalifa
is constantly developed with high quality commercial and
residential projects. Luxurious hotels, shops and restaurants
and residential property has been and is still developing in
the Palms.
The other, many other mega infrastructure projects
whereas the Expo 2020 is the main driving force. Construction will continue to be robust in the next
two-and-a-half years with a total value of major Expo-related
construction projects reaching Dh 156 billion ($42.5 billion)
by the end of March 31, 2018, with Dh 63.8 billion spent on
infrastructure and transport, Dh 48.4 billion on commercial
and residential projects and Dh 40.37 billion on leisure and
hospitality impacting both public and private sectors (Abbas
2018b). Again, we observe a nexus of projects being
developed simultaneously, with the real estate commercial
and residential sectors playing a key role in investments.
Expo 2020 is a development driver, but real estate activity
would likely to continue with Al Maktoum International
Airport, a center-piece of Dubai South and in general Dubai,
as another example of an integrated and sustainable city
(Abbas 2018b).
1 Most importantly, private investors are
interested in real estate and tourism projects based on the
long-term potential, which might not be directly linked to
Expo 2020, but expands the vision beyond this project and
date (Abbas 2018b).
2 The reputation of Dubai and the UAE
as a long-term real estate prime markets support investment
and future activity.
The UAE features some of the largest and most sophisticated construction and development companies. Aldar
properties, Emaar properties, Damac properties, and Nakheel
are some of the most important property developers
responsible for some of most valuable projects in the UAE.
The real estate infrastructure and development is responsible
for more jobs and related business activity. The UAE is a
global leader and remains first in GCC for construction
(Issac 2018). Construction and building accounted for 10.3%
and real estate activities 6.9% of GDP of UAE in 2016
(United Arab Emirates 2017a). Real estate development in
total contributed 17.2% surpassing even than extractive
industries (including Crude Oil and Natural Gas) at 16.7%.
Real estate development is the biggest contributor to the
UAE economy and the leading indicator that the UAE is
achieving its endeavor for a post-oil diversified economy.
Sustainability and innovation are at the heart of real estate
development. Masdar City in Abu Dhabi is an effort to
develop the world’s most sustainable eco-city. With smart
investments, Masdar City is successfully pioneering a
“greenprint”, how cities can achieve rapid urbanization and
at the same time dramatically reduce energy, water and
waste (Masdar City 2018). A 10-megawatt solar photovoltaic plant and building-mounted solar panels substantially
reduce the need for fossil fuels energy. At the same time,
Masdar is another case of an integrated sustainable city with
a mix of educational and recreational, housing, retail, manufacturing and office spaces (Masdar City 2018). Masdar
city is also a free zone.
5.6 Free Zones
The UAE is a pioneer and leader in free economic zones.
The free economic zones are not only examples of infrastructure development, but most importantly commercial
activity. A valuable distinct characteristic of UAE’s free
zones is that they are rather specialized, and they can
function as effective business clusters. Free economic zones
can have multiple benefits. They can attract FDI and consequently generate significant returns. Jebel Ali Free Zone
can be viewed as an extension of the port infrastructure. It is
an addition enabled by previous infrastructure. It adds to the
value chain of trade and economic activity in the UAE. The
Abu Dhabi Global Markets and the Dubai International
Financial Center (DIFC) and associated infrastructure have
assisted the UAE and the respective cities to become highly
ranked global financial centers. The example of Meydan
Free zone was also mentioned as part of a broader integrated
sustainable project. Although the model of free zones is not
exclusive to the UAE, no taxes (exception of VAT) and a
broad infrastructure investment makes them exceptional.
5.7 General Public Infrastructure
These projects were complemented by essential infrastructure as energy, water/sanitation and roads. In the 2018
Global Competitiveness report UAE ranks 1st in electrification rate, 7th in the efficiency of air transport services, 9th
1
Quotes by Avin Gidwani, CEO, BNC Network.
2
See footnote 1.
Sustainability and Financing Project: The UAE Paradigm
167
Design) sustainability ratings (Raven 2014).
5.5 Real Estate Infrastructure
The UAE is a prime global real estate market. It has the
landmark Burj Khalifa, by far the tallest building in the
world. The artificial islands of the Palms and World are
unique. The construction and financing of such megaprojects
displays the technical sophistication, as well as sustainability
in financing and business. These projects include numerous
project options. Burj Khalifa is next to the Dubai Mall, one
of the biggest shopping malls in the world, with various
luxury shops and restaurants. The area around Burj Khalifa
is constantly developed with high quality commercial and
residential projects. Luxurious hotels, shops and restaurants
and residential property has been and is still developing in
the Palms.
The other, many other mega infrastructure projects
whereas the Expo 2020 is the main driving force. Construction will continue to be robust in the next
two-and-a-half years with a total value of major Expo-related
construction projects reaching Dh 156 billion ($42.5 billion)
by the end of March 31, 2018, with Dh 63.8 billion spent on
infrastructure and transport, Dh 48.4 billion on commercial
and residential projects and Dh 40.37 billion on leisure and
hospitality impacting both public and private sectors (Abbas
2018b). Again, we observe a nexus of projects being
developed simultaneously, with the real estate commercial
and residential sectors playing a key role in investments.
Expo 2020 is a development driver, but real estate activity
would likely to continue with Al Maktoum International
Airport, a center-piece of Dubai South and in general Dubai,
as another example of an integrated and sustainable city
(Abbas 2018b).
1 Most importantly, private investors are
interested in real estate and tourism projects based on the
long-term potential, which might not be directly linked to
Expo 2020, but expands the vision beyond this project and
date (Abbas 2018b).
2 The reputation of Dubai and the UAE
as a long-term real estate prime markets support investment
and future activity.
The UAE features some of the largest and most sophisticated construction and development companies. Aldar
properties, Emaar properties, Damac properties, and Nakheel
are some of the most important property developers
responsible for some of most valuable projects in the UAE.
The real estate infrastructure and development is responsible
for more jobs and related business activity. The UAE is a
global leader and remains first in GCC for construction
(Issac 2018). Construction and building accounted for 10.3%
and real estate activities 6.9% of GDP of UAE in 2016
(United Arab Emirates 2017a). Real estate development in
total contributed 17.2% surpassing even than extractive
industries (including Crude Oil and Natural Gas) at 16.7%.
Real estate development is the biggest contributor to the
UAE economy and the leading indicator that the UAE is
achieving its endeavor for a post-oil diversified economy.
Sustainability and innovation are at the heart of real estate
development. Masdar City in Abu Dhabi is an effort to
develop the world’s most sustainable eco-city. With smart
investments, Masdar City is successfully pioneering a
“greenprint”, how cities can achieve rapid urbanization and
at the same time dramatically reduce energy, water and
waste (Masdar City 2018). A 10-megawatt solar photovoltaic plant and building-mounted solar panels substantially
reduce the need for fossil fuels energy. At the same time,
Masdar is another case of an integrated sustainable city with
a mix of educational and recreational, housing, retail, manufacturing and office spaces (Masdar City 2018). Masdar
city is also a free zone.
5.6 Free Zones
The UAE is a pioneer and leader in free economic zones.
The free economic zones are not only examples of infrastructure development, but most importantly commercial
activity. A valuable distinct characteristic of UAE’s free
zones is that they are rather specialized, and they can
function as effective business clusters. Free economic zones
can have multiple benefits. They can attract FDI and consequently generate significant returns. Jebel Ali Free Zone
can be viewed as an extension of the port infrastructure. It is
an addition enabled by previous infrastructure. It adds to the
value chain of trade and economic activity in the UAE. The
Abu Dhabi Global Markets and the Dubai International
Financial Center (DIFC) and associated infrastructure have
assisted the UAE and the respective cities to become highly
ranked global financial centers. The example of Meydan
Free zone was also mentioned as part of a broader integrated
sustainable project. Although the model of free zones is not
exclusive to the UAE, no taxes (exception of VAT) and a
broad infrastructure investment makes them exceptional.
5.7 General Public Infrastructure
These projects were complemented by essential infrastructure as energy, water/sanitation and roads. In the 2018
Global Competitiveness report UAE ranks 1st in electrification rate, 7th in the efficiency of air transport services, 9th
1
Quotes by Avin Gidwani, CEO, BNC Network.
2
See footnote 1.
Sustainability and Financing Project: The UAE Paradigm
167