Abu Dhabi to spend $1000000000000

Written by Adam Gonn

Just days after hosting its first Formula 1 race, Abu Dhabi announced plans to spend $1 trillion on infrastructure projects in the Emirate.

Abu Dhabi, the capital of the United Arab Emirates, is set to invest $1 trillion on various infrastructure projects in the city.

The emirate, the world’s forth largest oil producer with some 10 percent of the worlds proven oil reserves, announced plans Monday to boost its infrastructure by building new power plants, a light rail network, new roads and housing.

The $1 trillion sum represents approximately 17 percent of the national budget and, as a small comparison, could buy 833 of the newly commissioned USS New York warships or run the New York Metropolitan Transportation Authority for 90 years.

“Its huge,” Yadullah Ijtehadi, Managing Editor of ABQ Zawya business news site, told The Media Line. “Abu Dhabi is now one of the few oasis’s of opportunity in a world where opportunities are hard to come by at the moment.”

“I think they have been lacking behind in their infrastructure,” Ijtehadi said. “If you look at Abu Dhabi’s real estate market, there is a desperate shortage of housing, which is not the case in Dubai.”

“Obviously they [Abu Dhabi] want to show that they are a powerhouse,” Ijtehadi added, “which is why they have gotten into such high profile assets such as buying [English soccer club] Manchester City and hosting Formula 1.”

Over the weekend Abu Dhabi hosted the final race in this year’s Formula 1 season in the newly built Yas Marina circuit, built over three years at an estimated cost of $40 billion.

“Its part of a package announcing to the world yes we are here, we are far more sound than Dubai and we are ready to spend some money,” Ijtehadi said.

The two Emirates, Abu Dhabi and Dubai, are often seen as competitors for a place in the global spotlight. Both regions started out as nothing more than villages. Since oil was discovered by the British in the 1960, the path that each emirate has taken has been very different.

While Dubai, with its smaller oil reserve, was the first emirate in the region to diversify its economy away from oil by investing in tourism, finance and real estate, Abu Dhabi, with its much larger oil reserves and a more religious population, did not set off until more recently.

One example was the establishment of an airline. Emirates Airlines, based in Dubai, was founded in 1985 while Ethiad Airways, based in Abu Dhabi, only was setup in 2004.

Source: The Media Line.
Link: http://www.themedialine.org/news/news_detail.asp?NewsID=26982.