An upsurge in projects
The Northern Emirates are seeing a relative boom compared to the lull experienced over recent years. A mega project is a power and desalination plant in Fujairah. In addition, several hotels, shopping malls and commercial centres are being built to boost the emirates' tourism facilities.
01 November 2001
The Northern Emirates of the UAE - comprising Sharjah, Fujairah, Ajman, Ras Al Khaimah and Umm Al Quwain - have been witnessing an upsurge in construction activity over the past year as a result of their continued efforts to boost their tourism and industrial sectors.
Fujairah is the venue of what is expected to be world's largest reverse osmosis desalination plant which is being set up by the UAE Offsets Group (UOG). This power and desalination plant is designed to meet the requirements of the Northern Emirates whose economic strength lies primarily in their industries. A large number of construction industry-related manufacturers are based there.
Sharjah alone is reported to be home to more than 45 per cent of manufacturing companies in the UAE.
Over the past five years, Sharjah's gross domestic product (GDP) has been increasing by over 20 per cent, according to a recent report. Manufacturing has been growing at 11 per cent. The growth rate of the construction industry has been four per cent.
A number of shopping malls, commercial centres and hotels under construction, particularly in Sharjah and Fujairah.
These include the prestigious Sharjah World Trade and Expo Centre, the second phase of the Al Fardan Centre, the multi-million-dirham Crystal Towers and the Juma Al Majid's four-tower residential project comprising 896 luxury apartments. Fujairah too is getting a skyscraper with the 47-storey Fujairah Tower, the tallest in the emirate.
The tourism sector is growing at a fast pace.
In Sharjah, areas along the Al Khan and Kasba Canal are being developed and a number of shopping malls are being constructed including the Sharjah City Centre (completed recently), Madinat Al Souq, Sahara Centre, Megamall and Crystal Plaza.
In Fujairah, four major hotels and resorts are under construction.
Other major projects include expansion plans for Sharjah International Airport and Ras Al Khaimah Airport.
Power & water
The UOG, which has been mandated by the Government of Abu Dhabi to develop the Fujairah power and desalination plant on a fast-track basis, awarded a Dh2.9 billion ($802 million) contract for the construction of the plant to South Korea's Doosan Heavy Industries & Construction Company last June. This was followed in August by a Dh1.6 billion contract to a consortium of the local Al Jaber Energy Services (AJES) and Technip for the construction of a 185-km pipeline to Al Ain with capacity to pump 180 million gallons per day (gpd) of water, and a 17-km link to Al Dhaid in Sharjah.
The plant, which will have a capacity to produce 656 MW of electricity and 100 million gpd of desalinated water, will be built in Qidfa, next to the present plant operated by the Federal Electricity and Water Authority (Fewa). The plant will have the design capacity to run on both diesel oil and gas. It is expected to be completed in two years.
Doosan Heavy Industries and Construction Company has awarded a Dh345 million contract to France-based Ondeo Degremont (Suez) for the construction of the desalination plant, which forms part of the project. The contract covers all aspects of construction, from design, process equipment supply through commissioning. The plant is expected to start producing fresh water by June 2003.
A new firm, the Union Water and Electricity Company (UWEC), has been formed with the responsibility of building, operating and managing the desalination and power plant. The Abu Dhabi Government is to contribute Dh1.5 billion ($408 million) as the company's paid-up capital.
Of the 656 MW power produced by the project, 120 MW is to be used for the desalination plant's internal consumption, 36 MW for the transmission system, while the remaining 500 MW will be supplied to the Northern Emirates and the upcoming national grid of the Fewa.
A joint UOG-FEWA committee is currently working on finalising the details of linking the new plant with the national grid and the Northern Emirates, where demand for power is rising by between 10-15 per cent a year.
Initially, the project is being funded by the Government of Abu Dhabi but a foreign partner will be selected to take up to a 49 per cent stake, in line with the ongoing privatisation of the water and power sector in the country. UOG is currently in talks with several international water and power developers.
Germany's Fichtner is the technical consultant on the project, the local Hadef Al Dhaheri & Associates and the UK's Allen & Overy are legal advisors, while the National Bank of Abu Dhabi (NBAD) is providing financial advisory services and is responsible for arranging the financing package.
The first phase of the nationwide Emirates grid, which improved connections in Ras Al Khaimah, is now complete and the Ministry of Electricity and Water has now appointed a consultancy to evaluate the second phase, which will connect Abu Dhabi with Dubai and Sharjah.
Meanwhile, Fewa is drawing up plans for a Dh600 million ($163.4 million) water and power station in Ajman. The location has yet to be decided, but a study is reported to have been conducted on a plant with an estimated capacity of 1,300 MW and 40 million gallons of water daily.
The authority was in talks with a number of engineering consultants and more studies and consultations would be undertaken..
A Dh450, 000 desalination plant will be set up at Ras Al Khaimah International Airport. It will have an output capacity of 100,000 gallons per day, although consumption is only 7,000 gallons.
The plant will also purify water for agricultural purposes. Ras Al Khaimah has long been plagued by a water shortage but small desalination plants like this one could overcome the problem.
Airports
Sharjah International Airport is implementing a development plan to meet its requirements up to 2015. As per the masterplan, the cargo facilities and airport terminal are being refurbished. The airport has five cargo terminals at its freight centre measuring around 40,674 sq m. The cargo area can accommodate 10 wide-bodied or 14 narrow-bodied aircraft simultaneously. The airport is among the top 30 in the world in terms of airfreight.
The airport is also planning a Dh40 million ($10. 9 million) facelift to expand its arrival lounge and is expected to invest further sums to improve terminal facilities to handle more passengers.
Ras Al Khaimah is also planning to expand its airport. A second departure terminal adjoining the present one is to be built next year. The airport is also studying the feasibility of establishing an airport free zone.
The Ras Al Khaimah Department of Civil Aviation has budgeted an outlay of around Dh5 million for a new departure terminal and expanded duty-free offices and facilities, a first class lounge and cafeteria, according to chairman Shaikh Salem bin Sultan Al Qasimi. The airport, which is upgrading its facilities across a broad front, has also invested in new ground-handling equipment worth Dh500,000. The outlay for facility upgrades this year is set to total Dh3.5 million, Shaikh Salem said.
The airport has carved a niche for itself in its facility to service Antonov, Tupolev and Ilyushin aircraft - reported to be the only such centre in the Middle East and North Africa.
Ports & free zone
Sharjah invested Dh200 million recently to expand its Khor Fakkan Port's quay by 350 m. It also installed a new berth handling bulk liquid cargo at Hamriyah Port. In addition, plans are in hand to construct two more berths at Port Khalid.
A contract signing is imminent for a project involving the dredging of the inner harbour at the Hamriyah Free Zone (HFZ). The 15-month project, estimated at Dh85 million ($23.2 million), calls for the dredging of the inner harbour to a depth of 7 m from the current 5 m to allow small and medium-sized vessels and dhows to enter the free zone. The total dredged volume will be about 5 million cu m. The consultant is the UK's Halcrow Group. The client is the Hamriyah Free Zone Authority (HFZA).
The authority plans to lease plots of up to 25,000 sq m in size on the adjoining land to companies setting up manufacturing bases.
Investments in Hamriyah Free Zone is expected to cross $1 billion by 2003.
The first phase of the new Ras Al Khaimah Free Trade Zone is expected to be fully operational by the end of this year. Phase two development will commence shortly, comprising essentially a second complex at the Industrial and Technology Park, to come up at Jazirat Al Hamra.
The zone has said that it needs to invest invest Dh146.8 million ($40 million) over the next five years. Dh6 million was spent on basic infrastructure development on phase one of the industrial park at Al Hulaylah Island on the construction of roads, utilities, telecommunications facilities.
The Sharjah International Airport Free Zone (Saif) is developing another five million sq m of land next to its 10 million sq m facility. Initial investment in terms of asphalted roadways and utility installations is projected at Dh4 million.
Hotels & leisure facilities
A number of hotels are set to open in Fujairah over the next couple of years. The luxury hotel group Le Meridien will be opening its Le Meridien Aqqa Beach Resort Fujairah in next year (see Page 30).
Early this year, the director of the Fujairah Tourism Bureau Shaikh Saeed bin Saeed Al Sharqi signed a contract with German firm TUT to build a tourist resort at a cost of Dh300 million ($81.68 million). TUT is a part of the Forsag Group.
The tourist resort will house three four-star hotels and will be constructed in phases. The first stage will see the building of a 500-room hotel covering an area of 200,000 sq m.
In addition, another hotel is being built by the Abu Dhabi National Company for Hotels.
Hilton International has opened its first property in Ras Al Khaimah recently. The Hilton Ras Al Khaimah, with a traditional Arabic theme, is located at the foot of the Mussandam mountains..
The 214-room hotel, including one presidential suite, four executive suites and 17 junior suites, is situated on the picturesque waterfront with views of Ras Al Khaimah's Creek and comes with several leisure and business facilities.
Expo centre
Construction work started in May on the first phase of a state-of-the-art world trade and expo centre in a newly-developed area of Sharjah adjacent to the Al Khan lagoon.
The Dh165 million ($44.9 million) project has been split into three phases, the first costing over Dh65 million, and the next two entailing an investment of more than Dh100 million.
Upon completion of the third phase, the total area of the exhibition halls will stand at 24,000 sq m (See page 36).
Roads
The UAE's Ministry of Public Works and Housing is planning to construct new roads in the Northern Emirates. Work on these projects, costing Dh1.1 billion ($290 million), is expected start early next year.
The projects include the construction of a road in Ajman at a cost of Dh107 million, in Umm Al Quwain (Dh119 million), Sharjah (Dh172 million), Fujairah (Dh409 million) and in Ras Al Khaimah (Dh350 million).
An alternative Ras Al Khaimah-Sharjah road will be constructed at a cost of Dh40 million.
Several road maintenance projects are also under way, including the upgrading of the Sharjah-Dhaid Road at a total cost of Dh40 million. This project will be completed at the end of February 2002.
The first phase of a Dh334 million project for secondary roads and bridges in the Northern Emirates is also in progress.
Municipal projects
Sharjah Municipality is working on various projects, including a Dh31 million roads project.
A vegetable, fruit and fish market being built by the municipality in Khor Fakkan is expected to be completed soon.
The municipality will soon open branch offices in Dibba Al Hosn and Al Dhaid and is also looking at future offices in Al Mudam, Al Hawia, Al Themeid and Al Maleiha, to reduce pressure on its existing offices.
The civic body has reclaimed around 100,000 sq m of land recently which will be utilised for constructing roads, a school and residential buildings.
Sharjah is constructing the longest tunnel in the Gulf region. The 1,250-m tunnel, links Al Hilw Valley to Kalba City. The 100-km highway linking Sharjah to Kalba City will reduce travelling time between Kalba and Sharjah to one hour.
Other significant projects carried out by the municipality in Khor Fakkan include the construction of a cultural centre and a children's cultural centre.
The municipal authorities are working on the sixth phase of a Dh547 million ($147 million) sewage project in Sharjah. The new phase will increase the capacity of the sewerage system by 40,000 cu m daily and will be completed in 30 months.
Work on the fifth phase, scheduled to be completed this year, has been extended to meet the growing demands on civic infrastructure because of major growth in the emirate.
The sewerage system is now serving 50 per cent of Sharjah City and the municipality is planning to cover the whole city in the next five years.
It is also executing a Dh22.6 million drainage project for Al Nahda commercial area, and the Dibba Al Hosn, Kalba and Khor Fakkan areas in the Eastern Region.
In Ajman, the first phase of the beautification of 3-km corniche has been completed at a cost of Dh11 million ($3 million).
Commercial complexes
A 26-floor commercial tower overlooking the Buhairah Corniche in Sharjah is being developed by Al Batha Group. The tower is said to be the first in Sharjah to provide in-built parking for over 300 cars in the three basements and on five upper floors. The building has been designed by Khatib & Alami and Al Hamad Contracting is the main contractor.
The Dh100 million Sharjah City Centre was opened recently on the Al Wahda Street. The shopping centre, which includes a Carrefour Hypermarket, has 91 retail outlets (see Separate report)
The new Lulu Hypermarket was recently inaugurated in Fujairah. Spread across 150,000 sq ft with 36 cash counters, the facility is built up over two levels, with the ground floor housing a large supermarket, retail outlets, a studio, a bakery and outlets vending fresh produce, while the first floor includes a department store. The hypermarket has parking space for up to 1,000 vehicles.
A new Dh118 million head office for Emirates Telecommunications Corporation (Etisalat) will be opening shortly in Ajman. The multi-storey building has a distinctive 16-m high dome, a characteristic of Etisalat's main buildings throughout the UAE.
Educational facilities
Construction of a new Ajman University campus in Fujairah is expect begin shortly. The campus will occupy 77,000 sq m, but the initial phase will cover 11,000 sq m on which three colleges will be built at a cost of Dh10 million ($2.72 million).
They are the faculty of business administration, faculty of education and basic sciences and faculty of computer science and computer engineering.
The Fujairah campus has been planned for eight colleges, five of which will be added in the second phase.
Meanwhile, construction has commenced on the Dh35 million ($9.52 million) Fujairah Technical School project. The new school will consist of five main buildings Ñ for mechanical engineering, civil engineering, commerce, electrical engineering and for administrative and the management offices.
The new building, to be constructed on 19,000 sq m, is expected to be completed next April.
Other projects
The ministry is also constructing courts complexes in Ajman and Umm Al Quwain.
The Dh12 million outpatients clinics complex at the Kuwaiti Hospital is expected to open shortly.
Plans to build a hospital in Kalba to serve patients in the Eastern Region are also under discussion.
Health facilities will also be expanded in Al Meleiha, Dibba Al Hisn, Al Mudam and Wadi Al Helou.
Civil construction of the factory, promoted by Saudi Arabia's Riyadh Cables Group was completed earlier this year and completed earlier this year and commercial production was scheduled to start this month.
The plant, spread over 60,000 sq m, will have a production capacity of 50,000 tonnes.
The plant will get its feedstock from the Far East and Europe. Turnover target in its first year is Dh184 million.
A second phase envisages the plant expanding over 100,000 sq m with an installed capacity of 100,000 tonnes a year.
Construction work is poised to start on the Dh70 million project and production is expected to start by May 2005," the official said.
Initially, the hatchery will produce finfish, and later will have shrimps and other species.
The hatchery is expected to produce some 25 million finfish juveniles annually.
- Le Meridien To open In Fujairah
- Nitco wins Iran order
- Showpiece expo centre goes up
- Volvo loaders ease work at landfill site
- Water heater firm expands on demand
- An upsurge in projects
