Entry and exit points at Dubai Harbour will be developed in the AED 431 million project, approximately USD 117 million, between Roads and Transport Authority (RTA) of Dubai and Shamal Holding. This new, ambitious infrastructure project of the area will become more connected and handle the already huge growth taking place. The article undertakes to examine the financial and general economic aspects of the investment.
PC: GoDubai
The construction spanned a 1,500-meter-long bridge with two lanes in either direction and a carrying capacity of up to 6,000 vehicles per hour, linking the 5th intersection on Sheikh Zayed Road near the American University in Dubai to Dubai Harbour Street. The development will largely lead to more efficient traffic movement and will reduce travel time from 12 minutes to only 3 minutes.
Economic Rationale and Benefits:
1. Improved Accessibility and Traffic: A new infrastructure configuration needs to be implemented to smooth traffic, thus reducing congestion and improving access to Dubai Harbour. This is paramount, bearing in mind the forecast rise in the number of visitors and residents in an area hosting the biggest marina in the region and vast residential and commercial developments.
2. Boost to Real Estate and Tourism: With enhanced connectivity, property values in Dubai Harbour and its environment are likely to benefit positively. Already, the area itself is a very prime residential and lifestyle destination, anchored around flagship developments by Shamal Holding, such as the Dubai Harbour Residences. Therefore, increased access will add shine to the area and make it more attractive to potential buyers and investors, thereby boosting real estate sales and prices.
Additionally, Dubai Harbour is strategically positioned between Bluewaters Island and the Palm Jumeirah and is in close proximity to landmarks such as the Burj Al Arab and Expo Dubai. This new infrastructure can make it easier to access for tourists, which means that there could be a lot more foot traffic for retail and hospitality businesses.
3. Increased Commercial Activity: Development will directly increase the level of commercial activity as businesses can have access to more efficient transport routes. Better traffic circulation around Dubai Harbour will trickle down to an increased customer footfall, which will, in turn, be reflected in business and economic development for the area.
4. Employment Generation and Economic Multiplier Effect: A large number of people will be employed, either directly or indirectly, through the construction phase involving construction work, engineering, project management, and other associated support services. After construction, it will expand and facilitate employment in the retail, hospitality, and service sectors.
For most such infrastructure projects, therefore, the multiplier effect generally goes beyond an initial job creating effect: the economic activity stimulated creates other untargeted employment and investment opportunities.
The commitment to invest AED 431 million in this project reemphasizes a much needed commitment to have world-class infrastructure shouldering UAE-Urban’s and demographic growth needs. The source of funding for such projects comes, most likely, from Government grants and private sector investments through partners like Shamal Holding. Such conduits are essential for developing sustainability in economic growth and competitiveness.
It will also increase property values and commercial revenues, thus raising tax revenues and return on investment for both sectors, public and private. The infrastructure improvement will also add to the glory and repute of Dubai as a global city offering global facilities for a quick and effective transportation system.
The RTA has an AED 431 million project to build the entrance and exit of Dubai Harbour. This strategic investment is sure to come with the promise of enough returns to the economy. Among the main economic benefits are increased accessibility, real estate and tourism boost, higher commercial benefits, and job openings. Since Dubai has expanded in modernity and size over the last years, it cannot be in existence at the top of the world without such projects.
