Multi-faceted growth
The Northern Emirates are trying to emulate and take advantage of the rapid development in Dubai, focusing on tourism, real estate, retail and industry.
01 November 2003
THE UAE's Northern Emirates are witnessing an upsurge in activity in various sectors.
Taking a leaf from the more high-profile Dubai, the majority of them - Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah - are concentrating on tourism, real estate, retail and industry.
These emirates are also exerting efforts to improve the transportation network to make it faster and easier to travel between them. As work progresses on enhancing the road infrastructure through ring-road projects, an ambitious $1 billion light rail network project has also been mooted - one of the two lines of which will stretch from the Sharjah border to Jebel Ali.
Given the proximity to Dubai, another growth area is residential apartments as people working in that emirate take up accommodation in the Northern Emirates to benefit from the lower rents.
According to Sheikh Tariq bin Faisal bin Khalid Al Qasimi, chairman of Sharjah's Department of Economic Development, Sharjah's gross domestic product (GDP) is witnessing a growth due to the increased industrial and banking activities. The GDP grew 7 per cent last year, he said. There has been a significant increase in a number of residential and shopping complexes being built in the emirate. Currently, there are 43 high-rise buildings under construction in the emirate, mainly in the Al Nahda area.
The emirate is also set to go ahead with its tallest building - the Dh367 million ($100 million) Sharjah World Trade Centre, which will symbolise its status as an emerging trading and business hub. The 54-storey tower will be built on a man-made island and will be connected to the new Sharjah Expo Centre with a bridge. The structure will soon complement the emerging 'Sharjah Expo City' which will host a number of commercial centres and showrooms. The entire structure will seem to emerge from the water in Sharjah's Al Khan lake.
This project will give impetus for the development of a number of commercial developments and exhibition facilities to be built in the district.
The emirate is also developing a new town called Sharjah Tai Suburbs with 6,000 plots, 15 km from the city.
In the tourism sector, Ras Al Khaimah has recently launched a $1 billion tourism project known as the the Noor Project which will be located along 5 km of prime coastline. Designed for exclusive clients and private ownership, the development will include prestigious five-star condominiums, 5,500 luxury apartments, seven beachfront resort hotels, 1,300 luxurious villas, and a giant shopping mall among other facilities.
Ras Al Khaimah is developing a revolutionary $1 billion free zone concept that combines luxury waterfront residential and resort facilities with a high-tech Technology Park.
Among other developments, the emirate's first golf course is also under construction.
Industrial projects are being encouraged through the already established free zones, notably the Ras Al Khaimah free zone and Hamriyah free zone in Sharjah.
Electricity, water & sewage
The Abu Dhabi-based Union Water and Electricity Company (UWEC) is building its second power and water desalination project in Fujairah, which will export its output to the Federal Electricity and Water Authority network to meet the emirates' growing demands.
UWEC has appointed Fitchner Consulting Engineers of Germany as project management consultant for the project, which will be built near the company's first plant in Qidfa.
UWEC's second project will have a 1,000 MW power unit and a 100-million gallons per day (mgpd) desalination plant which is due for completion in mid-2006. The company is expected to shortlist contractors for a turnkey engineeering, procurement and construction (EPC) contract by end of this year and issue the tender early next year.
A contract will be awarded by mid-2004 and the selected contractor will be required to complete the job in 24 months.
Union Water also plans to privatise its projects in the future in line with the ongoing privatisation of the water and power sector in Abu Dhabi.
Sharjah Electricity and Water Authority allocated Dh525 million for the launch of new power projects this year. Among them are a Dh218 million venture at Wasit power station, which involves installation and commissioning of two gas turbines of total 200 MW capacity, a Dh28 million power distribution and transmission project in Sharjah City and Dh16.5 million for the expansion of Layyah power station.
In the sewage sector, construction work is under way on one of the major sewage treatment projects in Ajman. The Dh515 million sewage treatment project, being constructed in a desert area on the outskirts of the city, is slated to to be fully completed in August 2005.
Treated effluent from the works will be used for irrigation and greening of the emirate, according to the concession firm Ajman Sewerage (Private) Company Limited. The initial phase of the works is expected to come on line in August 2004 when partial treatment of sewage will be possible.
The plant has been designed to handle up to 49,000 cu m of waste per day in the initial phase to serve a population of approximately 245,000 people. It has also been designed with the capability to expand in the future to cope with a population of up to 380,000 people as Ajman grows.
In addition to the treatment works, the massive infrastructure project also involves building 22 individual (mostly underground) pumping stations and laying of over 250 km of pipelines to connect the properties to the system.
Roads
Construction work on the second phase of the Dh197 million ($53.64 million) Northern Emirates ring road project has begun. The road will serve as an alternative to the busy Al Ittihad Road.
According to a UAE Public Works and Housing Ministry spokesman, the project is part of ministry's plans to expand the Northern Emirates' road network.
Work includes a 20-km stretch of the Sharjah to Ajman road, with three lanes in each direction. The road ends in the Al Surrah area on the Umm Al Quwain to Falaj Al Mulla Road. Construction work is expected to be completed by 2005.
A number of interchanges will be built on this road, as well as safety barriers, camel underpasses and fences. It is designed for daily use by heavy vehicles.
Work on the Dh200 million first phase of the Sharjah Ring Road, which forms part of the Northern Emirates road network, has just commenced and will be completed by November 2004.
About Dh625 million will be spent to construct the Sharjah Ring Road, which will encircle the emirate with a 42.5 km-long highway.
According to traffic studies, motorists coming from Dubai and heading to Ras Al Khaimah or Ajman constitute about 40 per cent of the traffic heading into the city of Sharjah.
Meanwhile, the UAE Ministry of Public Works and Housing has floated a tender for the construction of the Dubai-Fujairah Freeway (Contract No 4 - Fujairah Ring Road), a 80-km dual express carriageway which is expected a cost between Dh500 million and Dh600 million. The highway, to run across mountains and low-lying areas, will offer almost a non-stop journey between Dubai and Fujairah and reduce drive time by almost half. It will also provide the fastest transfers between the east and west coasts.
Fujairah will benefit immensely from the project as it will help the emirate attract an increased number of tourists.
The ministry is keen to develop all federal roads and will construct an alternative to the existing one connecting Sharjah with Ras Al Khaimah, in addition to the Dubai-Fujairah Freeway.
The ministry will also begin work on the existing Umm Al Quwain-Falaj Al Mulla Road in Al Surrah area, which will end in Al Rifaa area connecting Sharjah with Ras Al Khaimah. The total cost of the road is Dh149 million and is expected to be ready by 2005.
Airports & ports
Work is expected to begin next year on a new international airport - the UAE's fourth - at Ajman, as part of a proposed major development designed to maximise the emirate's tourist and commercial potential.
The Ajman International Airport project is part of a master plan for the emirate which the Wiggins Group has presented to the Ajman Government. It calls for the airport to be linked by monorail to the seafront at Al Zoura, which would give rise to a resort area featuring around 30 hotels and waterfront villas.
The plan also includes major shopping, office, high-tech and light industry developments.
Among other projects, Ras Al Khaimah has appointed Khatib and Alami as consultants to carry out a new plan for RAK International Airport, which will undergo massive development in the coming years.
RAK International Airport, under its revised plan, will accommodate an airport hotel, two terminals and expanded runway and taxiways, to allow more growth in passenger and cargo traffic.
Last year, the airport handled 240,000 passengers and currently it handles four to five chartered flights every day.
In the ports sector, Fujairah port has recently awarded the Dh53 million ($14.4 million) Phase II expansion work to Six Construct. The 25-month contract entails the construction of a 600-m quay that will increase the length of the existing quay to 1.4 km. Besides, a further 120 m will be added to the existing 120-m quay at the northern breakwater. Once completed in early 2005, Fujairah is expected to become the largest multipurpose port on the East Coast.
Free zones & industry
Work has already begun on a $1 billion free-zone in Ras Al Khaimah - the Jazirat Al Hamrah project, which will include the five-star Al Hamrah Fort Hotel, an 18-hole golf course, beaches, lagoon and 300-plus properties that can be purchased freehold by non UAE-nationals. There are also plans to add a smaller version of Dubai's Palm Islands.
The 500-hectare Jazirat Al Hamrah scheme and its associated Technology Park are part of the emirate's 'Three Park' system. The other two zones are the Business Park and the Industrial Park.
'We are developing what we call a 'Millennium' free zone at Jazirat Al Hamrah,' said Oussam El Omari, project director general, Ras Al Khaimah Free Trade Zone.
'We are no longer in the business of providing conventional labour-intensive industrial areas. Instead, we are looking to our natural resources, the mountains, beaches and sea, to offer investors and their families a wide range of lifestyle and leisure choices as well as a first-class business location.
'Our aim is to provide modern facilities that will appeal to diverse investors in capital intensive value-added businesses, particularly pharmaceutical, IT and environmentally friendly companies.'
Meanwhile, Sharjah's Hamriyah Free Zone has decided to go in for further expansion of its ambitious inner harbour project, with the total cost of phases three and four close to Dh150 million. The second phase of the 7-m-deep inner harbour project, which has been completed at a cost of Dh75 million, will attract new investors dealing with marine-related activities, offering them access to 20 waterfront plots over 3,000 sq m in size. During phases three and four, investors will get further access deep into the sea and that is expected to bring in more investors to the zone.
The Free Zone's deep water port with its inner harbour has been designed to accommodate dedicated petrochemicals, bulk handling and general cargo berths.
Sharjah, which has 19 industrial zones, is to build a new industrial area near the Hamriyah Free Zone. Sharjah had more than 25,000 registered business organisations, including over 931 manufacturing units. Its industrial sector represents about 40 per cent of the UAE's manufacturing. Sharjah has two free zones - Sharjah Airport International Free Zone and Hamriyah Free Zone.
Commercial & residential projects
Ras Al Khaimah is looking at boosting its tourism sector with two major projects - the Noor Project and the Jazirat Al Hamrah projects.
The Noor development will include prestigious five-star condominiums, 5,500 luxury apartments, seven beachfront resort hotels, 1,300 luxurious villas, retail food and beverage outlets, residential sports and health clubs, hospital, health resort and spa, a cruise terminal, schools and a giant shopping mall spread across 80,000 sq m.
The total area under the development is 3.5 million sq m and will feature exquisitely designed marinas, exotic waterways and luxury villas with water frontages for private boat moorings. Awan Investment is the development company for the project and has secured government support and pre-development finance for the venture.
Site work on the project is expected to start next February. About 98 per cent of the project will be reclaimed from the sea and 73 per cent will be residential properties.
Among the larger commercial projects recently completed in Sharjah is the Crystal Plaza complex. The multi-use complex on Buhairah Corniche includes a mall, residential areas, offices, entertainment and leisure outlets, food court, landscaped play areas and swimming pools.
The three-tower complex - two 17-storey towers for 136 residential apartments and the third 17-storey tower has 64 offices. The shopping complex has around 250 shops on the ground, mezzanine and first floors.
Another mixed-use project in central Sharjah City is Downtown Centre, being set up at a total Dh93 million outlay. The first phase of the project comprises a Dh43 million shopping mall with around 60 shops, with a total leasable area of around 110,000 sq ft. The second phase, which includes a Dh50 million multi-storey five-star hotel apartment complex housing 200 rooms, is due to be completed early next year.
Sharjah-based Citadel Properties is planning to build a Dh180 million furnished apartments project in the emirate. The development, to be completed in 30 months, will have a four-star furnished apartment block with 350 rooms.
The company, which developed the Sharjah Megamall, is now building a ferris wheel mounted atop a futuristic building right on the Buhairah Corniche. The Dh28 million wheel will tower 25 storeys above ground level.
Another ongoing project in the Citadel roster is a Dh26 million six-storey car-park cum multi-level showroom due for completion by the end of this year. Work on a planned 10-storey office building adjacent to the car park is expected to begin during second-quarter 2004.
Fujairah is constructing around 100 tourist residential rooms, including 40 five-star chalets, on the Fujairah Corniche in cooperation with the Fujairah International Marine Club. The project is said to be the largest of its kind to be constructed in Fujairah city to attract more tourists.
The rooms and chalets will also have a special health club, a swimming pool and a major restaurant that offers seafood and other international cuisine delicacies.
Ajman is also gearing up to boost its leisure and entertainment industries with the establishment of a docking harbour for dhows.
Other projects
- Golf course tees off in Ras Al Khaimah
- Multi-faceted growth
- Tough debut for Tamrock rig in UAE
- UAE quarry gears up for further expansion
