New Market Research Report: United Arab Emirates Infrastructure Report Q2 2010

April 4, 2010 - PRLog -- The federal government has earmarked almost US$12bn from the 2010 budget for infrastructure projects. We will not raise our forecasts further at this point, but this news justifies our above-consensus, bullish forecasts, which have been based on the expectation that Abu Dhabi will drive industry value growth. Activity over 2009 has been concentrated in Abu Dhabi, as industry players migrated from Dubai to Abu Dhabi, which in turn implemented new infrastructure projects to spur economic growth and boost employment. The emirate has announced that it is planning to invest US$15bn in infrastructure between 2009 and 2012. In BMI's Q110 UAE Infrastructure Report we maintain the same forecast for industry value real growth for 2009 of 5.2%. As such, we forecast that industry value will reach AED74.8bn (US$20.4bn). A similar level of growth is expected for 2010, with value climbing to AED81.6bn (US$22.2bn). This growth will be fuelled by and large Abu Dhabi as we consider Dubai to be stagnant. Our forecasts of strong real industry value growth for 2009 are supported by a recent study published by the Kuwait National Bank, which estimates that the UAE is carrying out 45% of all projects in the GCC region. Of course, Abu Dhabi at the moment dominates, but Dubai also has important projects to showcase, such as the ongoing construction of the Green Line of the metro, Al-Maktoum International Airport and the expansion of Dubai Airport. In utilities, encouraged by the financial closure of the Shuweihat 2 independent water and power plant (IWPP) project, the Abu Dhabi Electricity and Water Authority is already preparing the next IWPP tender, the ninth in total. Dubai also revived the Hassyan IWPP project, awarding the engineering, procurement and construction contract to a consortium of France's Alstom and Spain's Ibedrola Ingenieria Y Construccion. In the nuclear power domain, a major milestone was achieved in early November, when the US Congress approved the U.S.-UAE civilian nuclear energy cooperation agreement, which paves the way for the tender to select a contractor to proceed. In BMI's Infrastructure Business Environment Ratings the UAE is in fifth place out of 10 countries in the region. Its score is above the regional average, though its overall score is slightly below its Gulf peers with the exception of Kuwait. This is because government spending in the other kingdoms has been greater than that in the UAE. However, with the new budget allocating 17.5% to infrastructure the risks to the UAE's infrastructure market score are to the upside. On the project finance front, the Shuweihat 2 deal creates a very strong precedent for the sector, and overall there is little evidence so far of any major risks to investors. However, we maintain slightly cautious demand and price risks outlook as sponsors and financiers have yet to become involved in a major utilities project without heavy government guarantees being an intrinsic part of the agreement.

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Partial Table of Contents:

Executive Summary
-- SWOT Analysis
-- UAE Infrastructure SWOT
-- UAE Infrastructure Project Finance SWOT
-- UAE Economic SWOT
-- UAE Political SWOT
-- Market Overview
-- UAE
Table: A Strong Performance
-- Steel Price Stability Remains Elusive In The UAE
-- Cement Glut In The Gulf Coming?
-- Industry Forecast Scenario
Table: Economic And Construction Data
-- Construction and Infrastructure Forecast Scenario
-- Transport Infrastructure
-- Transport Infrastructure Overview
-- Major Projects - New and Ongoing Projects
-- Airports
-- Ports
-- Roads
-- Railways
-- Major Projects Table - Transport
Table: Major Infrastructure Projects - Transport
-- Energy and Utilities Infrastructure
-- Energy and Utilities Infrastructure Overview
-- Major Projects - New and Ongoing Projects
-- Power Plants
-- Oil and Gas Pipelines
-- Water
-- Major Projects Table - Energy and Utilities
Table: Major Infrastructure Projects - Energy & Utilities
-- Business Environment
-- UAE Business Environment
-- Limits Of Potential Returns
-- Risk To Realisation Of Potential Returns
-- Regional Overview
-- Middle East Infrastructure Business Environment Ratings
Table: Middle East Infrastructure Business Environment Ratings
-- Project Finance Ratings
-- UAE Project Finance Ratings
-- Design and Construction
-- Commissioning and Operating
-- Overall Project Finance Rating
-- Regional Overview
-- Project Finance Ratings: Outlook For Middle East
Table: Design and Construction Rating
Table: Commissioning and Operating Rating
Table: Overall Project Finance Rating
-- Macroeconomic Outlook
Table: United Arab Emirates - Economic Activity
-- Political Outlook
-- Company Monitor
-- Arabtec Construction
-- Dutco Balfour Beatty Group
-- Al Habtoor Leighton Group
-- Veolia Water
-- Suez Environnement
-- Global Overview
-- Global Infrastructure Forecasts Revisited
-- Methodology
-- Industry Forecasts
-- Construction Industry
-- Data Methodology
-- Construction
-- Capital Investment
-- Construction Sector Employment
-- Infrastructure Business Environment Ratings
-- Ratings Overview
Table: Infrastructure Business Environment Indicators

Full Table of Contents is available at:
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