Dubai Metro Rail

In Dubai, 30,000 workers labored over the course of four years to produce the city’s first metro system. Opened to the public in September, the $7.64 billion budget is double what developers expected, but the automated system is the longest in the world, with over 52 kilometers of track and 29 stations. Monumental air-conditioned pedestrian bridges protect riders from the desert heat as they approach stations, and once aboard, luxury compartments and wireless internet service pamper them between destinations.

Whether residents in the notoriously hot city will abandon their cars remains to be seen, but officials say they expect annual ridership to exceed 200 million.

Dubai Metro Rail
Dubai Metro Rail
Dubai Metro Rail
Dubai Metro RailInfrastructure projects in the Gulf are usually funded by the governments and backed by the hefty oil revenues. With oil price hovering over $75 per barrel, most Gulf states will count extra from the windfall part of that is expected to be pumped into spearheading these projects.

“The private sector could play a greater role in not only bringing capital, but also technology and efficiency leading to faster implementation of these projects and lower end-user charges through PPPs,” Shahzaad Dalal, Chairman and Chief Executive Officer of Infrastructure Leasing and Financial Services (IL&FS) Investment Advisors, told Gulf News.
Dubai Metro Rail
Dubai Metro Rail
Dubai Metro RailAccording to a recent study by research company Business Monitor International (BMI), rail projects will account for over 90 per cent of the $120-billion investment in the Gulf’s infrastructure projects over the next ten years.

The UAE and Saudi Arabia dominate spending on rail, road and public transportation projects to be in place by 2020. Dubai, meanwhile, has taken a lead by opening the region’s first urban rail project last year that has encouraged others to undertake similar projects. Abu Dhabi, Qatar Saudi Arabia and Kuwait are planning to start work on urban rail networks while construction of the 1,500km Union Railway is about to start this year, costing between Dh30 billion and Dh40 billion.

“Regional government policy and spending over the next ten years will define the region’s transport infrastructure. The amount allocated for investment in rail projects clearly demonstrates the region’s strategy for mass transit,” said Richard Pavitt, Director of the Roadex-Railex exhibition that will take place at the Abu Dhabi National Exhibition Centre (Adnec) on November 28-30.

The current economic slowdown has warranted the private sector’s participation in these projects. However, lack of regulations and PPP framework could hinder the move.

Dalal said: “PPPs have given momentum in infrastructure in Asian economies, especially the Far East, and the Gulf states could benefit from their learning.”