During FIDIC’s recent Global Infrastructure Conference in Geneva, His Excellency Mohamed Ali Al Shorafa, chairman of the Department of Municipalities and Transport in Abu Dhabi, spoke to Infrastructure Global about the major investments being made that will significantly enhance the emirate’s infrastructure and quality of life.
Your Abu Dhabi Centre for Projects and Infrastructure has announced the launch of projects worth AED66bn across the emirate in 2024. How are you approaching such a massive undertaking?
You’re right, this is a massive undertaking. It’s the largest series of infrastructure projects in one go that we’ve ever committed to – 144 projects in all, worth nearly $18bn. And it’s across multiple sectors of the economy – housing, education, tourism, culture and leisure, transport and natural resources. We’re talking about thousands of new houses, construction and enhancement of parks, public spaces, walk lanes, playgrounds and cycle tracks, more places of worship, community and sports centres and retail developments. Plus of course transport and mobility.
The only way to handle something of this size and complexity was to set up a standalone government entity to manage it. ADPIC, the Abu Dhabi Centre for Projects and Infrastructure, was created last year to oversee and manage this work. Their mandate includes managing all the construction contracts, reviewing and approving and plans, getting involved in the design. There’s also obviously a lot of collaboration and liaison with various entities and stakeholders to ensure we’re getting good quality and that the projects adhere to global best practice in sustainability and that they align with Abu Dhabi’s strategic goals.
How important is sustainable and well executed infrastructure to Abu Dhabi and the work that you do?
It’s absolutely essential. What we build must be of high quality. It’s got to meet the needs of the people we serve as a government and it’s got to be cost-effective, well-designed and it must be sustainable.
As our population grows and urbanises, there’s more pressure on resources, so you’ve got to think smarter and be more efficient with what you have. I think infrastructure also has a key role to play in the mitigation of climate change – not just in the materials that we use and the carbon emissions involved in their production, but also how infrastructure can impact people’s experience of temperature. So, things like shading, streetscapes, wind tunnels, building design – they all play a part in our thinking.
To execute big projects well of course you also need to consider financial risk and governance. You need to have the right regulatory bodies and oversight committees and ideally you need partnerships with the private sector to help share the risks and rewards, and bring in investment, innovation and efficiency.
What are the key challenges that you face in managing the urban planning and transport sectors and three municipalities?
Population growth and urbanisation – the population of Abu Dhabi reached 3.8 million people last year, nearly double 2011 figures. And that’s a success story. I’m proud of the fact that so many people from all corners of the world want to come to Abu Dhabi and call it their home. But that of course brings challenges. More people in urban areas means a greater need for efficient, sustainable service delivery.
Add to that, we’ve got three separate municipalities – Abu Dhabi, which is a major international city – Al Ain, which is, you might say, the heritage and culture capital of the emirate and the birthplace of the UAE’s founding father Sheikh Zayed and Al Dhafra, which contains our beautiful deserts and dunes and makes up 70% of the emirate but just a fraction of the population. So digital connectivity, roading infrastructure, access to education and healthcare are obviously very important there.
So, you’ve got to juggle differing priorities and interests. But we must keep an eye on the overall strategy for the emirate, which is to make it an outstanding place to live and work.
What steps are you taking to attract global companies and investments and develop a vibrant business environment underpinned by innovation and a robust regulatory framework?
Abu Dhabi has one of the most open and competitive economies in the world and if you look at the influx of foreign capital and investment into the emirate in the past few years, particularly since the creation of Abu Dhabi Global Market (ADGM), it’s astonishing.
We’ve seen over 200 firms and investment companies set up in ADGM, which is a free zone and a global financial centre. We have the second-largest stock exchange in the Middle East after the Tadawul in Saudi Arabia and we currently have the highest net inflows of FDI in the entire region. Just recently we were named alongside Dubai as the top two cities in the world for ‘executive nomads’.
This didn’t happen by accident – you’ve got to create the right conditions for business and capital to thrive. We rank very highly on global ease of doing business indexes, because we don’t make it overly complicated to set up in Abu Dhabi. We have a very low rate of corporate tax, robust regulation of an international standard, we have excellent connectivity and logistics, we have a brand new and beautiful airport terminal served by our own global carrier, Etihad Airways, and a major port. So, we’re highly connected, highly efficient and we have high quality infrastructure – education, healthcare and leisure and entertainment facilities.
How can the global infrastructure sector help you to achieve your aims?
By understanding our needs and providing the services and the capital to help us realise our ambitions. Abu Dhabi has long been open to the world. We’ve always been traders and our position at the crossroads of east and west gives us a distinct geographical advantage. We also have long-standing infrastructure partnerships across the world in telecommunications, energy, logistics and manufacturing to name just a few.
We’ve long recognised the need for private sector involvement, for public private partnerships. ADNOC, our national oil company, has been doing this for decades. It’s not just about the financials – it’s about innovation, knowledge-sharing and learning from one another. I am sure that as we embark on the next phase of our transformative journey, that this collaboration with our international partners will continue to expand.
One of your key aims is to enhance social bonds and to foster public engagement and wellbeing, creating spaces that cater to the diverse needs of residents and contribute to a vibrant community life. Why is this so important and will you ensure you achieve it?
Absolutely. In Abu Dhabi, we have a relentless focus on quality-of-life enhancement and building a world-class city where our people and our businesses are empowered to thrive. For me, infrastructure isn’t just about roads or building design, or technology. It’s fundamentally about making people’s lives better.
There’s a special energy in Abu Dhabi – a sense of positivity and optimism – and I think it’s borne out of a common sense of purpose and a desire to not only succeed, but to do so on our own terms. And for the citizens and residents – and for the government in their service – it’s about creating a place that’s welcoming, that’s safe, that’s tolerant, that’s family-friendly. That’s liveable.
And we have a clear vision of how to achieve that. We have a blueprint for the future, and we won’t stop until we achieve it.
His Excellency Mohamed Ali Al Shorafa is the chairman of the Department of Municipalities and Transport in Abu Dhabi and chairman of the Abu Dhabi Centre for Projects and Infrastructure. He spoke to Infrastructure Global during last week’s 2024 FIDIC Global Infrastructure Conference in Geneva where he was a keynote speaker.
