in the quality of roads and in general 15th in infrastructure
globally (Schwab 2018). Concerning energy, the UAE
develops sustainable infrastructure for renewable energy and
is undergoing a transformation for the diversification of its
energy mix (UAE Government 2018c). It is the first Gulf
country with a new energy strategy, involving the nuclear
power and solar energy, except natural gas (UAE Government 2018d). Regarding transportation and roads, the UAE
“continues to construct and maintain roads in accordance
with international standards, using the best technology that
fits the country’s environmental conditions. The roads projects aim to improve efficiency of traffic and connect parts of
the country with a modern road network” (UAE Government
2018c).
The UAE has established the Ministry of Infrastructure
Development, dedicated to infrastructure projects. Its vision
is “A sustainable and integrated infrastructure that supports
the country’s global competitiveness” and it is strategically
aligned to Emirates Vision 2021 and 2071 (United Arab
Emirates 2017b). The Ministry of Infrastructure Development’s Strategic Plan 2017–2021 has identified sustainability as a key priority. This is reflected in strategic goals 2 and
3, “Manage Federal infrastructure projects in order to
achieve balanced and sustainable development in accordance
with the best international standards” and “Enhance the
efficiency and effectiveness of federal infrastructure assets to
maintain sustainability” while one fifth of its strategic
objectives and effort concerns “Sustainability & assets
management” (United Arab Emirates 2017b). All these
activities display a solid commitment to project financing
and infrastructure development.
The Ministry of Climate Change and the Environment,
with the vision of “Environmental Pioneering for Sustainable Development” work with partners and further
strengthen sustainability (United Arab Emirates 2018). Other
government agencies Ministry of Energy & Industry
(MoEI), General Civil Aviation Authority (GCAA) Federal
Transport Authority—Land & Maritime (FTA), Federal
Electricity & Water Authority (FEWA), Telecommunications Regulatory Authority (TRA), Sheikh Zayed Housing
Programme (SZHP), Emirates Post Group, Federal Competitiveness and Statistics Authority and local municipalities
are also involved and support sustainable infrastructure
development.
6 Conclusions: The UAE Unique Paradigm
The UAE’s infrastructure and real estate market presents
some unique characteristics. A key characteristic is the UAE
leadership. Its Vison 2021 and beyond, as well as numerous
associated initiatives to create Smart and Sustainable Cities
and Communities, display the strong commitment of the
government to sustainable infrastructure development. These
initiatives are soundly supported by significant government
investment. In addition, the UAE government has established an institutional framework, another pillar of competitiveness, to support and strengthen the development of
sustainable infrastructure. In that sense the government has
created a consistent sustainability policy and institutional
framework to invest in infrastructure.
The result is that the UAE ranks highly on the infrastructure pillar of the WEF Global Competitiveness Report
occupying the 15th place globally. It ranks 7th in efficiency
of air transport services and 1st in electrification rate and is
ranks very high on related categories. This is predominantly
public infrastructure. The UAE ranks 1st in
mobile-broadband subscriptions (Schwab 2018). This
reveals also an expensive and resilient participation of the
private sector in the development of infrastructure, namely
telecommunication
corporations.
Telecommunications
infrastructure is crucial for the development of Smart and
Sustainable Cites and Communities. In that sense the government policies and projects are also financed and augmented by the corporate sector. The government institutional
framework is complemented and leveraged by corporations,
creating a unique nexus.
Another concept that makes the UAE paradigm unique is
integrated cities. Integrated cities can be viewed as urban
agglomeration of diverse infrastructure projects and business
clusters that synergistically create value. Illustrative examples are the Jebel Ali port with DP World and Jebel Ali Free
zone with thousands of companies, and the Dubai International Airport with Emirates group, Duty Free and other
companies. Yas Island with Yas Marina Circuit, hotels shops
and other projects also highlights synergies. Masdar is a
unique case of an integrated city based on the principles of
sustainability. These mega projects encompass diverse projects with significant value. Diversification can make them
resilient and sustainable. This can be considered like horizontal integration and related synergies.
Although free economic zones are not only a UAE phenomenon, their number and specialization are rather unique.
Free economic zones in the UAE are quite specialized in
diverse activities establishing important clusters of economic
activities. Moreover, these business clusters are integrated in
the cities and communities generating many synergies. Free
economic zones are a main driver of Foreign Direct
Investment. Financing is channeled not only to business
activities per se, but to a broader range of projects like real
estate and developing further infrastructure. This symbiotic
relationship promotes growth. The benefits of business
clusters are many. Rosenfeld (1997) emphasizes the importance of business cluster for economic development.
168
P. Petratos
globally (Schwab 2018). Concerning energy, the UAE
develops sustainable infrastructure for renewable energy and
is undergoing a transformation for the diversification of its
energy mix (UAE Government 2018c). It is the first Gulf
country with a new energy strategy, involving the nuclear
power and solar energy, except natural gas (UAE Government 2018d). Regarding transportation and roads, the UAE
“continues to construct and maintain roads in accordance
with international standards, using the best technology that
fits the country’s environmental conditions. The roads projects aim to improve efficiency of traffic and connect parts of
the country with a modern road network” (UAE Government
2018c).
The UAE has established the Ministry of Infrastructure
Development, dedicated to infrastructure projects. Its vision
is “A sustainable and integrated infrastructure that supports
the country’s global competitiveness” and it is strategically
aligned to Emirates Vision 2021 and 2071 (United Arab
Emirates 2017b). The Ministry of Infrastructure Development’s Strategic Plan 2017–2021 has identified sustainability as a key priority. This is reflected in strategic goals 2 and
3, “Manage Federal infrastructure projects in order to
achieve balanced and sustainable development in accordance
with the best international standards” and “Enhance the
efficiency and effectiveness of federal infrastructure assets to
maintain sustainability” while one fifth of its strategic
objectives and effort concerns “Sustainability & assets
management” (United Arab Emirates 2017b). All these
activities display a solid commitment to project financing
and infrastructure development.
The Ministry of Climate Change and the Environment,
with the vision of “Environmental Pioneering for Sustainable Development” work with partners and further
strengthen sustainability (United Arab Emirates 2018). Other
government agencies Ministry of Energy & Industry
(MoEI), General Civil Aviation Authority (GCAA) Federal
Transport Authority—Land & Maritime (FTA), Federal
Electricity & Water Authority (FEWA), Telecommunications Regulatory Authority (TRA), Sheikh Zayed Housing
Programme (SZHP), Emirates Post Group, Federal Competitiveness and Statistics Authority and local municipalities
are also involved and support sustainable infrastructure
development.
6 Conclusions: The UAE Unique Paradigm
The UAE’s infrastructure and real estate market presents
some unique characteristics. A key characteristic is the UAE
leadership. Its Vison 2021 and beyond, as well as numerous
associated initiatives to create Smart and Sustainable Cities
and Communities, display the strong commitment of the
government to sustainable infrastructure development. These
initiatives are soundly supported by significant government
investment. In addition, the UAE government has established an institutional framework, another pillar of competitiveness, to support and strengthen the development of
sustainable infrastructure. In that sense the government has
created a consistent sustainability policy and institutional
framework to invest in infrastructure.
The result is that the UAE ranks highly on the infrastructure pillar of the WEF Global Competitiveness Report
occupying the 15th place globally. It ranks 7th in efficiency
of air transport services and 1st in electrification rate and is
ranks very high on related categories. This is predominantly
public infrastructure. The UAE ranks 1st in
mobile-broadband subscriptions (Schwab 2018). This
reveals also an expensive and resilient participation of the
private sector in the development of infrastructure, namely
telecommunication
corporations.
Telecommunications
infrastructure is crucial for the development of Smart and
Sustainable Cites and Communities. In that sense the government policies and projects are also financed and augmented by the corporate sector. The government institutional
framework is complemented and leveraged by corporations,
creating a unique nexus.
Another concept that makes the UAE paradigm unique is
integrated cities. Integrated cities can be viewed as urban
agglomeration of diverse infrastructure projects and business
clusters that synergistically create value. Illustrative examples are the Jebel Ali port with DP World and Jebel Ali Free
zone with thousands of companies, and the Dubai International Airport with Emirates group, Duty Free and other
companies. Yas Island with Yas Marina Circuit, hotels shops
and other projects also highlights synergies. Masdar is a
unique case of an integrated city based on the principles of
sustainability. These mega projects encompass diverse projects with significant value. Diversification can make them
resilient and sustainable. This can be considered like horizontal integration and related synergies.
Although free economic zones are not only a UAE phenomenon, their number and specialization are rather unique.
Free economic zones in the UAE are quite specialized in
diverse activities establishing important clusters of economic
activities. Moreover, these business clusters are integrated in
the cities and communities generating many synergies. Free
economic zones are a main driver of Foreign Direct
Investment. Financing is channeled not only to business
activities per se, but to a broader range of projects like real
estate and developing further infrastructure. This symbiotic
relationship promotes growth. The benefits of business
clusters are many. Rosenfeld (1997) emphasizes the importance of business cluster for economic development.
168
P. Petratos