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Transport Infrastructure
SectorMENAJune, 2015
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Table of Contents
I. Regional Sector Overview
1. Definition of MENA Region
2. Transport Infrastructure Sector in MENA
3. MENA Region: Quality of Overall Infrastructure
4. MENA Region: Quality of Road Infrastructure
5. MENA Region: Quality of Port Infrastructure
6. MENA Region: Ports Throughput
7. MENA Region: Quality of Air Transport Infrastructure
8. MENA Region: Airport Capacity
9. MENA Region: Quality of Railroad Infrastructure
10. GCC Regional Railway Project
II. Qatar
1. Sector Highlights
2. Economic Indicators
3. Transport Infrastructure Indicators
4. Transport Infrastructure Indicators (cont’d)
5. Quality of Infrastructure
6. Road Infrastructure
7. Port Infrastructure
8. Ports Throughput
9. Air Transportation Infrastructure
10. Investment Climate
2. Investment Climate (cont’d)
3. Government Infrastructure Projects
4. Government Infrastructure Projects (Cont’d)
Biggest Infrastructure Projects
III. Saudi Arabia
1. Sector Highlights
2. Economic Indicators
3. Quality of Infrastructure
4. Road Infrastructure
5. Port Infrastructure
6. Port Infrastructure (cont’d)
7. Port Infrastructure (cont’d)
8. Port Infrastructure (cont’d) and Ports Throughput
9. Air Transport Infrastructure
10. Air Transport Infrastructure (cont’d)
11. Investment Climate
12. Investment Climate (cont’d)
13. Government Infrastructure Projects
14. Government Infrastructure Projects (cont’d)
15. Biggest Infrastructure Projects
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Table of Contents
IV. United Arab Emirates
1. Sector Highlights
2. Economic Indicators
3. Quality of Infrastructure
4. Road Infrastructure
5. Port Infrastructure
6. Port Infrastructure (cont’d)
7. Port Infrastructure (cont’d)
8. Port Infrastructure (cont’d)
9. Port Infrastructure (cont’d)
10. Port Infrastructure (cont’d)
11. Ports Throughput
12. Air Transportation Infrastructure
13. Investment Climate
14. Investment Climate (cont’d)
15. Government Infrastructure Projects
16. Government Infrastructure Projects (cont’d)
17. Biggest Transportation Projects
V. Main Players
1. Top M&A Deals
2. M&A Activity, 2013-2014
3. Arabtec Holding PJSC
4. Arabtec Holding PJSC (cont’d)
5. Drake & Scull International PJSC
6. Drake & Scull International PJSC (cont’d)
7. Combined Group Contracting Co.
8. Combined Group Contracting Co. (cont’d)
9. Galfar Engineering And Contracting SAOG PLC
10. Galfar Engineering And Contracting SAOG PLC (cont’d)
11. National Marine Dredging Company PSC
12. National Marine Dredging Company PSC (cont’d)
13. Appendix
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I. Regional Sector Overview
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Source:
Comments
Definition of MENA Region
The current report outlines the development of the agricultural sector in the Middle East and North Africa (MENA) region, which is composed
of 17 countries: Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia,
United Arab Emirates (UAE) and Yemen. The report focuses on three main countries, namely Qatar, Saudi Arabia, and the United Arab
Emirates. They were selected on the basis of their superior performance in all infrastructure subsectors, combined with extensive government
investments in infrastructure projects that will undoubtedly fuel future growth.
Middle East and North Africa Region
EMIS
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Transport Infrastructure Sector in MENA
Geographic
Location
MENA and the Middle East in particular benefit from extremely advantageous geographical location. Middle East is at the centre of the globe with 86% of
the world population and 63% of world GDP at a maximum distance of 9,000 nautical miles, as noted by Airbus and Blominvest Bank. The region is equally
accessible by sea and by air and provides excellent opportunities that arise by the surging movement of people and goods between the East and the West.
In addition, oil exporting countries from the region rely heavily on sea transportation to ship their petrochemical products globally.
All of these factors, in addition to the funds provided by the oil & gas export, have led to extensive investments in transport infrastructure. Governments aim
to boost local competitiveness, to diversify hydrocarbons based economies by enhancing sectors like construction, transportation, logistics, tourism, and
services, and to intensify even more the movement of people and goods.
Road
Infrastructure
Road construction in MENA is particularly challenging due to the harsh natural conditions in the region - high temperatures, desert terrain and sand storms.
However, countries like Saudi Arabia have adopted sophisticated road construction methods and manage to build thousands of km of new roads despite
the obstacles. Due to the evident difference in economic development within the region and the related ability to invest in infrastructure, MENA is the home
of both countries that have high quality roads and such that have largely underdeveloped road networks.
Port
Infrastructure
With the exception of Iraq, all MENA countries under analysis have access to sea, and they have built a solid port infrastructure. By far, sea ports have
mainly supported the export of petrochemicals, and have also accommodated the export and import of foods, vehicles and other large cargoes. MENA is
the world’s most food import-dependent region. Countries like Jordan, Kuwait, Libya, Lebanon, Saudi Arabia, UAE, and Yemen import virtually their entire
domestic consumption of crops chiefly through sea transportation. However, as tourist flow to MENA countries is growing over the years, sea ports are
being adapted to accommodate large groups of cruise tourists, as well.
In 2013, Jebel Ali Port in Dubai was the 9th busiest port worldwide in terms of TEUs handled.
Air
Transport
Infrastructure
MENA is rapidly positioning itself as one of the world’s major air transportation hubs. The region offers large network of growingly sophisticated airport facilities. Moreover, anticipating fast growth of passengers travelling from, to and through the region, local governments are incessantly investing inincreased airport capacity. Regional competition on who is going to become the dominant air transport hub is heating up and airports that have just been extended announce new extension works to start shortly thereafter. In particular, the 20-month old Al Maktoum Intl Airport (Dubai, UAE) is currently
undergoing construction works to become the biggest airport in the world having annual capacity of 220 mn passengers. It is also noteworthy that another Emirati Airport, Dubai Intl, was the world’s busiest airport in terms of international passengers traffic between March 2014 and March 2015 (ACI data).
Railway
Infrastructure
Railways are the most underdeveloped transport infrastructure subsector in MENA. In 2015, only eight countries – Algeria (network in exploitation 3,854 km), Egypt (network of 5,153 km), Iran (network of 12,998 km), Iraq (network of 2,138 as of 2012), Jordan (Hejaz Railway network in exploitation 451.5 km), Morocco (network of 2,109 km), Saudi Arabia (network of approx. 1,380 km) and Syria (network of 2,139 km as of 2012) – have operational rail networks. Across the region, there are just a few international connections between major cities, like that between Damascus and Amman or Tehran in Iran, as noted by Blominvest Bank. However, major railway expansion projects are underway, including the construction of regional network connecting the six Gulf Council countries, as well as individual national programmes. Saudi Arabia, for instance, is planning to build a 9,900 km. network by 2040.
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Source:
MENA Region: Quality of Overall Infrastructure
Quality of Overall Infrastructure Highlights
Overall, MENA countries under analysis have slightly
deteriorated their performance over 2011-2014 versus
2009-2011, and perform at average global levels during
the last two years, the World Economic Forum’s Executive
Opinion Survey infrastructure quality survey shows.
Business executives from UAE, Bahrain, Oman, Saudi,
Arabia, and Qatar perceive the overall infrastructure in
their countries as among the best in the world with
average 2009-2014 indices of 6.3, 5.8, 5.7, 5.6, and 5.4
respectively.
On the other hand, overall infrastructure in Yemen, Libya,
and Lebanon is considered to be significantly
underdeveloped with respective average 2009-2014
values of 2.7, 2.6, and 2.4.
Note: Information on Quality of Overall Infrastructure is provided
by World Economic Forum’s Executive Opinion Survey. This is
an index that measures business executives' perception of their
country's overall infrastructure (e.g. transport, telephony, and
energy).
The data for the latest year are combined with the data for the
previous year to create a two-year moving average.
Scores range from 1 (overall infrastructure considered extremely
underdeveloped) to 7 (overall infrastructure considered efficient
by international standards).
WEF, - * MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other classifications.
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
MENA Average* 4.7 4.7 4.5 4.4 4.2
Global Average 4.3 4.3 4.3 4.3 4.2
Algeria 3.8 3.7 3.5 3.8 3.6
Bahrain 5.6 5.9 6.0 5.7 5.6
Egypt 4.3 3.9 3.8 3.3 2.9
Iran 4.0 4.0 4.2 4.2 3.9
Iraq n/a n/a n/a n/a n/a
Jordan 5.2 5.0 5.1 5.1 4.8
Kuwait 4.9 4.7 4.5 4.6 4.3
Lebanon 2.5 2.5 2.4 2.3 2.3
Libya 3.2 n/a 2.9 2.3 1.9
Morocco 4.1 4.3 4.8 4.9 4.6
Oman 5.8 5.9 5.8 5.8 5.4
Qatar 5.1 5.6 5.5 5.4 5.4
Saudi Arabia 5.5 5.6 5.8 5.7 5.2
Syria n/a n/a n/a n/a n/a
Tunisia 5.5 5.0 n/a 4.1 3.9
United Arab
Emirates 6.2 6.3 6.4 6.4 6.4
Yemen n/a 3.0 2.8 2.6 2.5
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Highlights
Source:
MENA Region: Quality of Road Infrastructure
Quality of Road Infrastructure
Overall, the MENA countries under analysis fall slightly
below the global average of quality of road infrastructure,
according to the World Economic Forum’s Executive
Opinion Survey on road infrastructure quality.
However, economies like Bahrain, Oman, Qatar, Saudi
Arabia and UAE perform well above the MENA and global
averages. Over the 2007-2014 period, Bahrain registered
an average Road Quality Index of 5.6, Oman – of 6.3,
Qatar – of 5.0, Saudi Arabia – of 5.7, and UAE of 6.5.
Lebanon, Libya, and Yemen are the weakest performers in
the region with average 2007-2014 index values of
respectively 2.8, 2.7, and 2.6.
Note: Information on Quality of Road Infrastructure is provided by
World Economic Forum’s Executive Opinion Survey. This is an
index that measures business executives' perception of their
country's road infrastructure.
The data for the latest year are combined with the data for the
previous year to create a two-year moving average.
Scores range from 1 (road infrastructure considered extremely
underdeveloped) to 7 (road infrastructure considered efficient by
international standards).
WEF, - * MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other
classifications.
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
MENA Average* 4.6 4.5 4.5 4.3 4.2
Global Average 4.7 4.7 4.6 4.4 4.4
Algeria 3.9 3.8 3.4 3.3 3.1
Bahrain 5.5 5.7 5.8 5.4 5.4
Egypt 3.7 3.4 2.9 2.7 2.9
Iran 3.7 3.8 4.0 4.1 4.1
Iraq n/a n/a n/a n/a n/a
Jordan 4.7 4.6 4.8 4.8 4.1
Kuwait 5.0 5.0 4.9 4.8 4.6
Lebanon 3.0 2.9 2.8 2.7 2.8
Libya 3.1 3.1 2.5 2.1
Morocco 3.4 3.4 4.0 4.5 4.5
Oman 6.2 6.4 6.4 6.4 6.0
Qatar 4.9 5.0 5.1 5.0 5.0
Saudi Arabia 5.5 5.8 6.0 5.8 5.3
Syria n/a n/a n/a n/a n/a
Tunisia 5.1 4.6 n/a 3.8 3.7
United Arab
Emirates 6.3 6.3 6.5 6.6 6.6
Yemen n/a 2.9 2.7 2.4 2.5
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Source:
MENA Region: Quality of Port Infrastructure
Quality of Port Infrastructure Highlights
Overall, MENA countries under analysis have performed
slightly above the global average over the 2009-2014
period, the WEF port infrastructure quality survey showed.
UAE, Bahrain, Oman, Qatar, and Saudi Arabia are
performing best in the region with average 2009-2014
indices of 6.3, 5.9, 5.4, 5.3, and 5.2 respectively.
In contrast, Libya, Algeria, and Yemen appear to have the
most underdeveloped port infrastructure in the region with
respective average 2009-2014 indices of 3.1, 2.9, and 2.9.
Note: Information on Quality of Port Infrastructure is provided
by World Economic Forum’s Executive Opinion Survey. This
is an index that measures business executives' perception of
their country's port infrastructure quality. Respondents in
landlocked countries have been asked how accessible port
facilities are.
The data for the latest year are combined with the data for the
previous year to create a two-year moving average.
Scores range from 1 (port infrastructure considered extremely
underdeveloped) to 7 (port infrastructure considered efficient
by international standards)
WEF, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other classifications.
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
MENA Average* 4.6 4.5 4.5 4.4 4.3
World Average 4.3 4.3 4.3 4.2 4.1
Algeria 3.2 3.0 2.7 2.7 2.8
Bahrain 5.8 6.0 6.0 5.8 5.7
Egypt 4.2 4.0 4.0 4.1 4.2
Iran 3.9 3.9 4.0 4.1 4.0
Iraq n/a n/a n/a n/a n/a
Jordan 4.4 4.3 4.4 4.5 4.1
Kuwait 4.4 4.2 4.1 4.1 3.9
Lebanon 4.5 4.3 4.1 4.3 4.1
Libya 3.2 n/a 3.5 3.0 2.6
Morocco 4.4 4.5 4.8 5.0 4.9
Oman 5.3 5.4 5.4 5.5 5.2
Qatar 5.4 5.4 5.2 5.2 5.4
Saudi Arabia 5.2 5.4 5.3 5.1 5.0
Syria 3.1 3.4 n/a n/a n/a
Tunisia 5.0 4.6 n/a 4.0 3.9
United Arab
Emirates 6.2 6.2 6.4 6.4 6.5
Yemen n/a 2.9 3.0 2.9 2.6
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Source:
MENA Region: Ports Throughput
Container Port Traffic, TEUs thou
CEIC, World Bank, - *MENA Total is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other classifications.
2007 2008 2009 2010 2011 2012 2013
MENA Total* 32,077 37,141 37,669 41,187 45,222 47,105 49,667
Global Total 489,818 516,152 472,175 542,248 587,483 616,674 651,099
Algeria 200 225 250 280 296 318 343
Bahrain 239 269 280 290 306 329 355
Egypt 5,182 6,099 6,250 6,709 7,737 7,356 7,143
Iran 1,723 2,000 2,206 2,593 2,740 2,946 3,179
Iraq n/a n/a n/a n/a n/a n/a n/a
Jordan 414 583 675 619 654 703 759
Kuwait 900 962 854 992 1,048 1,127 1,216
Lebanon 948 862 995 949 1,034 883 1,117
Libya 122 175 159 185 195 370 435
Morocco n/a 919 1,222 2,058 2,083 1,800 2,500
Oman 2,877 3,428 3,768 3,893 3,633 4,167 3,930
Qatar 350 400 410 346 366 393 424
Saudi Arabia 4,209 4,652 4,431 5,313 5,695 6,564 6,742
Syria 539 611 685 649 686 737 796
Tunisia 421 425 419 466 493 530 572
United Arab Emirates 13,182 14,756 14,425 15,177 17,548 18,121 19,336
Yemen 773 775 640 669 707 760 820
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Source:
MENA Region: Quality of Air Transport Infrastructure
Quality of Air Transport Infrastructure
In general, over the 2009-2013 period MENA countries
under analysis have performed above the global average
but their performance has deteriorated in 2013-2014 and
has evened the global mean of 4.4.
UAE, Qatar, Bahrain, and Saudi Arabia are considered to
have the best air transport infrastructure in the world with
average 2009-2014 indices of 6.6, 6, 5.8, and 5.4
respectively.
In contrast, Yemen, Iran, and Libya appear to have the
most underdeveloped airport infrastructure in the region
with respective average 2009-2014 indices of 3.1, 3.1,
and 2.9.
Note: Information on Quality of Air Transport Infrastructure is
provided by World Economic Forum’s Executive Opinion
Survey. This is an index that measures business executives'
perception of their country's air transport infrastructure
quality.
The data for the latest year are combined with the data for the
previous year to create a two-year moving average.
Scores range from 1 (air transport infrastructure considered
extremely underdeveloped) to 7 (air transport infrastructure
considered efficient by international standards)
WEF, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the
region in other classifications.
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
MENA Average* 5.1 5.0 4.9 4.7 4.4
Global Average 4.7 4.7 4.6 4.4 4.4
Algeria 3.9 3.8 3.3 3.0 3.0
Bahrain 6.0 6.1 6.0 5.6 5.2
Egypt 5.5 5.3 5.0 4.8 4.6
Iran 3.0 2.9 3.1 3.3 3.2
Iraq n/a n/a n/a n/a n/a
Jordan 5.7 5.6 5.5 5.5 4.8
Kuwait 4.7 4.4 4.2 4.0 3.8
Lebanon 5.7 5.5 5.1 4.9 4.5
Libya 2.9 n/a 3.3 2.9 2.4
Morocco 4.7 4.8 5.1 5.0 4.8
Oman 5.5 5.5 5.5 5.5 5.1
Qatar 6.1 5.9 6.0 6.0 6.0
Saudi Arabia 5.4 5.6 5.7 5.4 5.1
Syria n/a n/a n/a n/a n/a
Tunisia 5.6 3.7 n/a 4.5 4.2
United Arab
Emirates 6.6 6.5 6.6 6.7 6.7
Yemen n/a 4.0 3.5 2.7 2.3
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Source:
MENA Region: Airport Capacity
Fastest Growing Airports in the Middle East 2014 vs. 2010, % capacity growth
Fastest Growing Airports in North Africa 2014 vs. 2010, % capacity growth
Biggest Airports in MENA, May 2014
Comments
www.routesonline.com, OAG, CAPA, ACI
Six of the biggest MENA airports in terms of seat capacity are situated in
UAE, Saudi Arabia, and Qatar. These are Dubai Intl Airport, Riyadh Intl
Airport, Jeddah Intl Airport, Doha Intl Airport, Dammam Intl Airport, and Abu
Dhabi Intl Airport.
Among them, Dubai Intl Airport (DXB) is a regional, but also a global leader
in international passenger traffic. The airport held the first place in the world
between March 2014 and March 2015, as reported by ACI.
UAE, Saudi Arabia, and Qatar are also home to 9 out of the 10 fastest
growing airports in the Middle East between 2010 and 2014.
However, the steepest growth in capacity in 2014 vs. 2010 in MENA is
registered outside of the Middle East. The Enfidha Airport in Tunisia that has
seen a major 791.4 % increase..
791.4%
346.9%86.9%
45.6%
33.7%
30.8%
27.4%
25.5%
18.3%
16.0%
Enfidha (NBE), Tunisia Alexandria (HBE), Egypt Rabat (RBA), Morocco
Benghazi (BEN), Libya Djerba (DJE), Tunisia Oran (ORN), Algeria
Constantine (CZL), Algeria Algiers (ALG), Algeria Hurghada (HRG), Egypt
Tunis (TUN), Tunisia
157.7%
118.9%76.4%
65.6%58.9%
55.9%
44.2%
40.7%
38.6%27.0%
Baghdad (BGW), Iraq Madinah (MED), Saudi Arabia
Abha (AHB), Saudi Arabia Abu Dhabi (AUH), UAE
Doha (DOH), Qatar Jeddah (JED), Saudi Arabia
Dubai (DXB), UAE Dammam (DMM), Saudi Arabia
Sharjah (SHJ), UAE Riyadh (RUH), Saudi Arabia
Ranking Airport Name Country Seats
1 Dubai Intl Airport United Arab Emirates 471,488
2 Riyadh King Khaled Intl Airport Saudi Arabia 344,894
3 Jeddah King Abdulaziz Intl
Airport
Saudi Arabia 331,416
4 Doha Intl Airport Qatar 246,592
5 Tehran Mehrabad Airport Iran 212,910
6 Kuwait Intl Airport Kuwait 171,812
7 Bahrain Intl Airport Bahrain 160,567
8 Dammam King Fahd Intl Airport Saudi Arabia 137,446
9 Abu Dhabi Intl Airport United Arab Emirates 109,739
10 Amman Queen Alia Intl Airport Jordan 104,187
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Source:
MENA Region: Quality of Railroad Infrastructure
Quality of Railroad Infrastructure
Railroad infrastructure is considered to be unsatisfyingly
developed both on the global and the regional level.
Overall, MENA average between 2009 and 2014 is
slightly below the global one for the same period.
Many of the countries in the region do not have operating
railroads, and are currently constructing them. As of June
2015, some of the major MENA railroad infrastructure
projects are being executed in UAE, Bahrain, Saudi
Arabia, Oman, Qatar, and Kuwait .
Note: Information on Quality of Railroad Infrastructure is
provided by World Economic Forum’s Executive Opinion
Survey. This is an index that measures business executives'
perception of their country's railroad infrastructure quality.
The data for the latest year are combined with the data for the
previous year to create a two-year moving average.
Scores range from 1 (railroad infrastructure considered
extremely underdeveloped) to 7 (railroad infrastructure
considered efficient by international standards)
EMIS Insight, UNCTAD, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other classifications.
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
MENA Average* 2.9 2.7 2.7 3.0 3.0
Global Average 3.2 3.1 3.1 3.2 3.3
Algeria 2.7 2.6 2.0 2.3 2.7
Bahrain n/appl. n/appl. n/appl. n/appl. n/appl.
Egypt 3.4 3.2 3.1 2.7 2.4
Iran 3.2 3.2 3.4 3.5 3.4
Iraq n/a n/a n/a n/a n/a
Jordan 1.6 1.5 1.9 2.0 2.2
Kuwait n/appl. n/appl. n/appl. n/appl. n/appl.
Lebanon 1.0 1.0 1.0 n/a n/a
Libya n/appl. n/appl. n/appl. n/appl. n/appl.
Morocco 3.7 3.6 3.9 3.9 3.9
Oman n/appl. n/appl. n/appl. n/appl. n/appl.
Qatar n/appl. n/appl. n/appl. n/appl. n/appl.
Saudi Arabia 3.6 4.0 3.7 3.4 3.1
Syria n/a n/a n/a n/a n/a
Tunisia 4.2 n/a n/a 3.4 3.3
United Arab
Emiratesn/appl. n/appl. n/appl. n/appl. n/appl.
Yemen n/appl. n/appl. n/appl. n/appl. n/appl.
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Source:
GCC Regional Railway Project
Participants’
Progress
In March 2015, Rail Journal reported the following progress made by the countries that are part of the
project:
Kuwait’s Municipal Council approved the construction of the Kuwaiti section of the GCC rail network In
January 2015. By the same time, consultants have been prequalified for the design work. Construction is
expected to begin in 2016.
A study will be completed in June 2015 for a railway causeway linking Dammam in Saudi Arabia with
Bahrain where two stations are planned.
In the first half of 2015, Qatar should receive bids to prequalify design and construction works for the
connection from Doha to the Saudi border. Notably, Qatari Government has asked for re-alignment of
the route to avoid a military base.
Oman is expected to award civil works contracts for its initial 207 km phase by the end of the 2015.
Etihad Rail has already completed its 120 km coastal section in the United Arab Emirates. The second
phase of works, when the remaining 564 km of the GCC will be built, is in tendering stage.
Saudi Arabia is responsible for two projects and 663 km of the total network, including the Ras Al Khair
to Jubail section which is currently under construction. The plan is to extend this line north to Al Khafji
and Kuwait, and south to Damman.
The Gulf Council Countries - UAE,
Bahrain, Saudi Arabia, Oman, Qatar,
and Kuwait – have engaged in a
regional railway project that will begin
at Kuwait and run to Muscat in Oman
via Saudi Arabia, Bahrain, Qatar and
UAE. With expected cost of USD 15
bn, the project should be completed
by 2018 and foresees the
construction of 2,117 km rail track. It
is allocated to portions of 663 km in
Saudi Arabia, 684 km in the UAE, 306
km in Oman, 283 km in Qatar, 145
km in Kuwait, and 36 km in Bahrain.
The newly built network should boost
investments in the region by providing
improved links to industrial areas,
better access to materials, and
facilitated movement of citizens and
residents.Challenges
The project might not be finished in time as there are numerous challenges in front of the participating
countries.
For instance, the majority of them are not experienced in railway construction. Saudi Arabia is the only
Gulf Council member with pre-existing railway infrastructure.
Additionally, the GCC regional project accounts for the smaller portion of USD 15bn out of a total
investment of USD 200bn in individual GCC railway projects. As a consequence, there will be high
regional demand for construction equipment, skilled workers, project managers, and engineers and it will
be difficult to allocate the limited capital and human resources among all six countries.
Given the projected increase of demand, prices for materials like steel rails, cement and cabling are set
to rise as well which will probably increase project cost.
Rail Journal, Saudi Railways
II. Qatar
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Qatar: Sector Highlights
Although it has only one international airport – Doha Hamad International Airport – the country is among the top performers in the world and certainly in MENA,ranking second after UAE. According to CAPA, in May 2014, Doha Hamad International Airport was the 4th largest in MENA in terms of seat capacity as it offeredalmost 245 thou seats. It was the fifth fastest growing airport in the Middle East between 2010 and 2014, increasing its capacity by about 60% (OAG data).
Given the sheer scale of airport infrastructure projects, the subsector will account for some 22.5% of the transport infrastructure industry over the 2013-2018 period.However, BMI Research experts project a 7.5% real decline on the year in air transport infrastructure in 2015, since the year will not see any significant airportdevelopment works. In 2016-2018, an average 8.5% annual increase is anticipated as the Doha Hamad International Airport is set to expand its current capacity of30 million to 50 million annual passengers per annum.
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked12th out of 144 economies in terms of air transport infrastructure quality.
Thanks to its advanced port facilities, the country has registered the third highest score in MENA, just after UAE and Bahrain. Over the 2013-2018 horizon, port
infrastructure industry in Qatar is expected to grow by 10.1% on average, contributing about 21.2% to the overall transport infrastructure industry.
Port infrastructure includes 4 main ports – Doha, Mesaieed, Halul, and Ras Laffan. The new port south of Doha should be operational in 2016, providing increased
general cargo, grains, vehicles, and livestock port capacity. BMI Research projects a 36% growth of tonnage throughput and a 16% growth of container throughput at
Doha port in 2015. In the mid-term, tonnage throughput is expected to increase and container throughput is to grow by 96% (including operations at the New Doha
Port from 2016 onwards). Some of the major factors that will fuel throughput increase are the expected provision of heavy materials to support Qatari infrastructure
mega projects and the increased participation of the country in the regional trade among Middle East economies.In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked 24th out of 144 economies in terms of port infrastructure quality.
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked 34th out of 144 economies in terms of road infrastructure quality, meaning that
the country offers well developed road network with high-quality facilities. The subsector accounts for the greatest share of the overall transport infrastructure in
Qatar and is expected to grow by 10.8% y-o-y on average over the 2013-2018 period.
In 2013, the country had a road network of 9,592 km and the second highest road density in the MENA region at 0.83 km/sq.km of land area. The country has
constructed 602 km of roads in 2013 and continues to invest heavily in road works. In preparation for the World 2022 Soccer Cup, Qatar is currently executing road
projects amounting to USD 16.4bn with focus on highway carriages of which around 350 km are to be built by 2017. The Expressway Programme aims to increase
the weight of primary roads in the total road network distribution as they accounted for mere 10.6% in 2013.
Road Infrastructure
Port Infrastructure
Air Transport Infrastructure
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Source:
Comments
Qatar: Economic Indicators
The Qatari economy grew at the impressive CAGR of 9.7% over the 2009-2014 period. BMI Research experts maintain a positive forecast for 2015 with a real GDP y-o-y growth at 6.6%. Growth is mainly attributed to investment spending, especially in transport projects, expansionary fiscal stance, and population growth, as explained by Qatari ministry of development planning and statistics. Naturally, continuously falling oil prices are a key risk to the economic outlook of Qatar, the country being a major oil and gas exporter. However, the ministry considers state finances as a sufficiently strong to shield the wider economy in 2015 with a fiscal surplus of 8.7% of GDP. According to BMI Research, Inflation rate is expected to rise at 3.8% y-o-y in 2015.
Selected Economic Indicators
CEIC, World Bank, Ministry of Development Planning and Statistics – Qatar, IMF, Reuters, - * BMI estimates
2009 2010 2011 2012 2013 2014
GDP, constant prices 2005 (USD bn) 87 102 115 122 130 137.9e*
GDP, constant prices 2004 (QAR bn) 243 284 321 341 362 384
GDP, current prices (USD bn) 98 125 170 190 203 211.7e*
GDP, current prices (QAR bn) 356 455 618 693 740 771
GDP Growth Rate (%) 12.0 16.7 13.0 6.0 6.3 6.2e*
Foreign Direct Investment, net inflows (USD bn, current) 8.1 4.7 (0.1) 0.3 (0.8) n/a
Consumer Price Index (%) (4.9) (2.4) 1.9 1.9 3.1 3.0
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Source:
Comments
Qatar: Transport Infrastructure Indicators
Qatar has entered a phase of massive spending on transport infrastructure. Government investments in the sector aim to diversify the oil-dominated Qatari economy, to improve
Qatar’s connection to global trade networks, and to prepare the country for the upcoming 2022 FIFA World Cup.
BMI Research experts thus project an average transport infrastructure real y-o-y growth of 8.9% over the 2015-2018 period. Among subsectors, roads and bridges construction has
the highest share in total transport infrastructure at an average of 55.4% between 2013 and 2018. Airport infrastructure ranks second as it is expected to hold average share of
22.5%, closely followed by ports, harbours and waterways with 21.2% average contribution to the overall transport infrastructure. Railways construction is the smallest subsector,
accounting for 1% of the transport infrastructure industry over the 2013-2018 horizon. However, being significantly underdeveloped, this sector is expected to grow the fastest as
Qatar plans 350 km railroads expansion between 2015 and 2030. Hence, BMI Research experts foresee railways infrastructure average annual growth of some 10.4% over the
2013-2018 period.
Transport Infrastructure Indicators
BMI, EMIS Insight
2013 2014e 2015f 2016f 2017f 2018f
Transport Infrastructure Industry Value, USD bn 2.17 2.45 2.72 3.12 3.57 4.05
Transport Infrastructure Industry Value Real Growth, % y-o-y 9.00 9.40 6.30 10.20 10.20 8.70
Roads and Bridges Infrastructure Industry Value, % of transport infrastructure 52.40 53.80 55.80 56.50 57.10 57.00
Roads and Bridges Infrastructure Industry Value, USD bn 1.14 1.32 1.52 1.76 2.04 2.31
Roads and Bridges Infrastructure Industry Value Real Growth, % y-o-y 9.90 12.40 10.50 11.50 11.50 8.50
Ports, Harbours and Waterways Infrastructure Industry Value, % of transport infrastructure 20.20 20.80 21.80 21.60 21.30 21.20
Ports, Harbours and Waterways Infrastructure Industry Value, USD bn 0.44 0.51 0.59 0.67 0.76 0.86
Ports, Harbours and Waterways Infrastructure Industry Value Real Growth, % y-o-y 9.90 12.90 11.50 9.50 8.50 8.10
Airports Infrastructure Industry Value, % of transport infrastructure 26.50 24.50 21.40 20.90 20.60 20.80
Airports Infrastructure Industry Value, USD bn 0.57 0.60 0.58 0.65 0.74 0.84
Airports Infrastructure Industry Value Real Growth, % y-o-y 6.90 0.90 -7.50 7.50 8.50 9.50
Railways Infrastructure Industry Value, % of transport infrastructure 0.90 0.90 1.00 1.00 1.00 1.10
Railways Infrastructure Industry Value, USD bn 0.02 0.02 0.03 0.03 0.04 0.04
Railways Infrastructure Industry Value Real Growth, % y-o-y 1.90 10.40 10.50 11.50 12.50 15.50
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Source:
Qatar: Transport Infrastructure Indicators (cont’d)
Real Growth of Transport Infrastructure Subsectors
Subsector Value, USD bn
BMI Research, EMIS Insight
9.9%12.4%
10.5%
11.5%
11.5%
8.5%9.9%
12.9%
11.5%
9.5% 8.5%
8.1%6.9%
0.9%
-7.5%
7.5% 8.5%
9.5%
1.9%
10.4%10.5%
11.5%12.5%
15.5%
2013 2014e 2015f 2016f 2017f 2018f
Roads&bridges infrastructure real growth, % y-o-y Ports, harbours and waterways infrastructure real growth, % y-o-y
Airports infrastructure real growth, % y-o-y Railways infrastructure real growth, % y-o-y
1.14 1.32 1.52 1.76 2.04 2.310.44
0.510.59
0.670.76
0.86
0.570.60
0.580.65
0.740.84
0.020.02
0.03
0.030.04
0.042.17 2.45 2.72 3.11 3.58 4.05
2013 2014e 2015f 2016f 2017f 2018f
Railways
Airports
Ports, Harbours andWaterways
Roads and bridges
Total
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Source:
Qatar: Quality of Infrastructure
Quality of Road Infrastructure*
Quality of Air Transport Infrastructure*
Quality of Port Infrastructure*
Quality of Overall Infrastructure*
WEF, - * The indices range from 1 to 7, with a higher score representing better performance.
4.3 4.3 4.3 4.34.2
4.7 4.74.5
4.4
4.2
5.1
5.65.5
5.4 5.4
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Qatar
4.7 4.74.6
4.4 4.4
5.15.0
4.9
4.7
4.4
5.4 5.4
5.2 5.2
5.4
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Qatar
4.3 4.3 4.3 4.24.1
4.6 4.5 4.5 4.44.3
5.4 5.4
5.2 5.2
5.4
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Qatar
4.0 4.0 4.0 4.0 4.0
4.64.5 4.5
4.34.2
4.95.0
5.15.0 5.0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Qatar
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Source:
Qatar: Road Infrastructure
Road Network (km) and Road Density (km/sq.km of land area)
Road Network by Type of Road, 2013
Ministry of Development Planning and Statistics, Qatar
Primary Roads10.6%Secondary
Roads 10.1%
Third-class Roads 11.9%
Local Roads67.4%
9,96
6
9,83
0
9,12
5
8,98
0 9,59
2
0.86 0.850.79 0.77
0.83
2009 2010 2011 2012 2013
Road length Road density
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Source:
Qatar: Port Infrastructure
Ports in Qatar
www.findaport.com, Qatar Petroleum
Port NameUN/
LOCODELocation Overview Maximum size
Doha Port QADOH The central eastern coast
of Qatar, in the south of
the Gulf.
Port handles general cargo, Ro-Ro, passengers and containers. Port is operated and managed by
Qatar Navigation QSC (Milaha).
Channel: LOA 215 m., depth 10.55 m.
Containers: LOA 200 m., draft 9.5 m.
Passengers: LOA 200 m.,
draft 8.3 m.
Ro-Ro: LOA 200 m., draft 9.5 m.
Bulk: Depth 10.0 m
Mesaieed Port QAUMS The eastern coast of
Qatar, approx. 20 nautical
miles south of Doha.
Multipurpose port, handles oil, LPG, petrochemicals, fertiliser, bulk and general cargo. The port is
managed and administered by Qatar Petroleum, although a number of other private companies
operate terminals in the port.
Dry Cargo: LOA 240 m., depth 15.0 m.
Containers: 40,000 d.w.t., LOA 185 m.,
depth 12.0 m.
Bulk: 133,000 d.w.t., LOA 270 m., beam 40.0 m.,
depth 15.0 m.Tankers: 320,000 d.w.t.,
LOA 340 m., beam 60.0 m.,
depth 19.5 m.Chemicals: 60,000 d.w.t.,
LOA 235 m., depth 13.0 m.Gas: LOA 290 m.,
depth 12.8 m.
Halul Port QAHAL The port is situated on
the Halul island which is
52 nautical miles north-
east of Doha.
The Terminal serves as export terminal for Qatari marine crude oil, which is produced from the
offshore oilfields area. It disposes of 2 crude oil loading points - both are single buoy moorings. The
port is managed and operated by Qatar Petroleum.
Crude: 550,000 d.w.t., draft 29.0 m.
Ras Laffan Port QARLF On the north-eastern
coast of Qatar, 40
nautical miles north of
Doha.
Purpose-built port, designed as an export facility for LNG, LPG, condensate, GTL products, pygas,
refinery products and sulphur derived from the processing of gas. Ras Laffan port disposes of an
offshore terminal situated in Qatari national waters at 25 nautical miles east of the port entrance and
disposing of 2 single-point moorings. QARLF is operated by Qatar Petroleum.
Dry Cargo: Displacement 60,000 tonnes, LOA
180 m., draft 12.5 m. Bulk: 60,000 d.w.t., LOA
180 m., draft 12.5 m. Tankers: Displacement
320,000 tonnes, LOA 335 m., draft 22.0 m.
Products: Displacement 152,000 tonnes, LOA
335 m., draft 12.5 m. Gas: Displacement 185,000
tonnes, LOA 345 m., draft 12.5 m.
Al Shaheen Terminal QAASN In Qatari national waters,
approx. 80 nautical miles
nort-northeast of Doha.
The terminal consists of Floating Storage and Offloading (FSO) units moored to Single Point Moorings
(SPMs). The FSOs are equipped for crude oil transfer to export vessels in tandem or ship-to-ship
(STS) operation concurrently with crude oil import and decanted/produced water export.
Crude: No limit
Al Rayaan Terminal QARYN In Qatari national waters,
approx. 35 nautical miles
off the northern coast of
Qatar.
The terminal consists of the storage tanker (FSO) ``Falcon Spirit'', which is moored to a Single Point
Mooring (SPM). Routinely, export tankers berth at the storage tanker in tandem mode. The storage
tanker receives Al Rayyan crude oil through a pipeline from a jack-up production facility, located
approx. 2 n.m. to the south-southwest.
Tankers: 320,000 d.w.t., draft 21.0 m.
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Source:
Qatar: Ports Throughput
Vessel Movement at Qatari Ports, 2014
Vessels’ Net Tonnage by Port, 2014
Container Port Traffic, TEU (20 foot equivalent units)
Comments
CEIC, World Bank, Ministry of Development Planning and Statistics, Qatar
In 2014 the vessel throughput at Qatari ports totalled 5,650 units,
registering a 4.5% y-o-y decrease. However, annual net tonnage
throughput has increased significantly by 13.8% y-o-y.
In 2014, Ras Laffan remained the busiest Qatari port in terms of
number and net tonnage of vessels because it accommodates the
export of natural gas – a key activity that dominates the shipping
sector in the country.
410,
000
346,
000
365,
722
393,
151
424,
210
-15.6%
5.7%7.5% 7.5% 7.9%
2009 2010 2011 2012 2013
Container port traffic, TEUs YoY change
1,43
3
1,87
8
111
2,22
8
5,65
0
-6.2% -6.9%
4.7%
-1.8%
-4.5%
Doha Port Mesaieed Port Halul Port Ras LaffanPort
Total
No of vessels YoY change
12,1
80
30,1
71
11,0
03
101,
722
155,
076
29.7%
6.0%10.8%
14.9% 13.8%
Doha Port Mesaieed Port Halul Port Ras LaffanPort
Total
Net Tonnage, thou tonnes YoY change
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Source:
Qatar: Air Transportation Infrastructure
Airports in Qatar
Doha Hamad International Airport Throughput
Ministry of Development Planning and Statistics – Qatar, Airport Data, - * Passenger throughput includes arrivals and departures and excludes transit passengers.
Airport NameIATA
CodeNear city Terminals and other facilities Runway ID and length
Airport Annual
Throughput*
Doha Hamad International Airport DOH Doha Airport's passenger terminal covers 600,000 sq.
m. It offers 25,000 sq.m. of retail space and
15,000 sq.m. dedicated to food&beverages.
There are 138 check-in counters.
Eastern runway: 4.85 km. long
Western runway: 4.25 km. long
In 2013: 23.4 mn passengers,
865,669 tonnes of cargo &
168,762 flights.
15,8
59
18,3
05
n/a
23,3
89
26,7
02
699
812
845
866
n/a
118
137
156
168
2010 2011 2012 2013 2014
Passenger traffic, thou people Cargo&mail traffic, thou tonnes Aircraft movement, thou units
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Source:
Qatar: Investment Climate
FDI
Regime
FDI regime is primarily regulated by Investment Law No. 13/2000. It generally limits foreign investments to 49% of the capital for most business
activities, with a Qatari partner(s) holding at least 51%. Gulf Cooperation Council nationals are treated as Qatari citizens in the ownership of
companies listed on Qatar Exchange. However, the law allows, upon obtaining special government approval, up to 100% ownership by foreign
investors in certain sectors, including: agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy,
mining, banking, insurance, business consultancy & technical services, information & communication services, cultural services, sports services,
entertainment services, and distribution services. Meanwhile, certain sectors are not open for domestic or foreign competition, including public
transportation, electricity and water, steel, cement, and fuel distribution and marketing. In these sectors, a single semi-public company has complete
or predominant market control.
A majority foreign stake in a project could be obtained only if the project fits into the country's development plans. In addition, preference is given to
projects that use raw materials available in the local market, manufacture products for export, produce a new product or use advanced technology,
facilitate the transfer of technology and know-how to the Qataris, and promotes the development of national human resources.
In bids for government procurement the country treats preferentially suppliers that use local content. As a rule, participation in tenders with a value of
QAR 1 mn or less is confined to local contractors registered by the Qatar Chamber of Commerce, and tenders with a value of more than this amount
do not require any local commercial registration to participate, but in practice certain exceptions exist.
Right to
Private
Ownership
and
Establishment
The establishment of all private business entities in Qatar is regulated by the Commercial Companies Law, Law No. 5/2002.
Law No.15/1990 prohibits that foreign investors engage in a joint stock company with Qatari partners. As a consequence, joint ventures involving
foreign partners are usually established as limited liability partnerships. Foreign partners in ventures organised as limited liability partnerships must
pay the full amount of their contribution to capital in cash, or in kind, prior to the start of operations. Usually, such firms are required to set aside 10
percent of profits each year in a statutory reserve until it equals 50 percent of the venture's authorised capital. This requirement is the only legal
restriction to a foreign company desiring to repatriate all of its annual profit after tax deduction.
Since August 2014 foreign investors can hold up to a combined total of 49% of the shares of Qatari companies listed on the Qatari Exchange.
Upon government approval, non-Qataris may have the right of land use over real estate for a renewable term of 99 years.
Depending on the case, foreign investors might be offered incentives that include natural gas priced at 60-75 USD cents per MBTU (Million British
Thermal Units); electricity offered at less than 2 U.S. cents per KWH; Industrial land offered at 27 U.S. cents per sq.m. per year for a period of 50
years, including options for renewing the lease; exemption from customs duties on imports of machinery, equipment and spare parts; exemption on
export duties; exemption from corporate taxes for up to 10 years and from income taxes; low cost financing through Qatar Development Bank
(QDB); and flexible immigration and employment rules to enable the import of foreign labour.
US Department of State, May 2015
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Source:
Qatar: Investment Climate (cont’d)
Tax Rates
and
Access to
Credit
.
Dispute
Settlement
Being a signatory to the 1958 New York Convention and a member of the International Center for the Settlement of Investment Disputes (ICSID),
Qatar accepts binding international arbitration in case of investment disputes.
Qatari legal establishments that facilitate dispute settlement feature the Alternative Dispute Resolution (ADR) Centre that is primarily concerned with
commercial matters arising from within the Qatar Financial Centre (QFC), as well as the International Court and Dispute Resolution Centre.
There is no set duration for dispute resolution and the time to obtain a resolution depends on the case. The Qatar International Court and Dispute
Resolution Centre publishes past judgments on its website, which may be used as a reference: http://www.qfccourt.com/Judgement.html.
Labour
Conditions
Qatar's labor force consists primarily of expatriate workers. As of February 2015 non-Qatari residents are estimated to be around 89% of the
population in the country, making up for one of the world’s highest ratios of migrant workers to population. The largest group of foreign workers
comes from the Indian sub-continent.
All expatriate labour must have a Qatari sponsor. Therefore, foreign investors should start discussing labour visa issues with their sponsors/local
agents/partners in the early stages of contract negotiation. In order to bring an expatriate employee into the country, sponsors must submit a request
to the Ministry of Labor. It controls the number of workers that may come to Qatar through a quota system. The country has labor agreements with
some countries that stipulate a minimum wage for certain types of work, but in general minimum wage is not regulated by the government.Since
2004 Qatari citizens have the right to form workers' committees in private enterprises with more than 100 Qatari citizen workers. Non-citizens are not
eligible to form worker committees. Workers in the government sector, regardless of their nationality, are not allowed to join unions.Under the labor
law, workers are granted the right to bargain collectively and to sign joint agreements. However, collective bargaining is not freely practiced, and the
US Department of State reports that there are no workers employed under collective bargaining contracts.
US Department of State, May 2015
Since 2010, all non-Qatari companies and foreign partners in Qatari companies are subject to a 10% (corporate) flat rate. The only exception is in the
energy sector where there is a 35% tax rate on all oil and gas operations, unless exempted by Emiri Decree. Qatari nationals do not pay any kind of
corporate or income tax, except the “zakat” that amounts to around 2.5 percent of profits.
Under Law No. 13/2000, the Ministry of Finance may grant a tax holiday of up to 10 years for new foreign investments in key sectors. Other
exemptions may be granted under Law No. 21/2009 on a case-by-case basis for a period up to 6 years.
There is no restriction on the flow of capital. Loans are allocated on market terms, and the US Department of State reports that foreign companies are
essentially treated the same as the local ones. Almost all import transactions are controlled by standard letters of credit processed by local banks and
their correspondent banks in the exporting countries. Credit facilities are provided to local and foreign investors within the framework of standard
international banking practices. Foreign investors are usually required to have a guarantee from their local sponsor/local equity partner.
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Source:
Qatar: Government Infrastructure Projects
Massive
Spending
on
Transport
Infrastructure
Projects
The development of the transport infrastructure sector is a strategic priority for Qatar. The country has entered a phase of massive
spending on transport projects. Business media MEED experts expect more than USD 35.8bn worth of transport project contracts to
be awarded in 2015-2017 as Qatar builds the infrastructure it needs to deliver for the 2022 FIFA World Cup and beyond. Currently,
Qatar is executing major projects in all transport subsectors. One of the most important developments is the New Port near Doha since
it will serve as a major facility to accommodate the import of heavy materials that are necessary for the other mega infrastructure
projects and cannot be transported via road or air.
Road
Infrastructure
Qatar's Public Works Authority (Ashghal) has initiated an extensive Expressway Programme that consist of 10 projects in progress as
of May 2015 at a total cost of approximately USD 10.25 bn. As of January 2015, the approximately USD 12 bn Sharq road project,
consisting of 12 km. series of tunnels and bridges connecting HIA, Katara Cultural Village and the Dafna/West Bay business district of
Doha, whose construction was supposed to start in 2015, has been postponed.
Some of the major road developments under construction are presented in the Appendix of the present report.
Port
Infrastructure
As of May 2015, contracts worth USD 5.2bn have been awarded for the construction of a new port south of Doha. The project is expected to be completed in 2016 and is estimated to cost USD 7.4bn. It will consist of 26 sq km port site with per annum capacity of 1.7 mn tonnes of general cargo, 1 mn tonnes of grains, 500 000 vehicles, and 37 500 tonnes of livestock. The port basin will be approximately 3.8 km long, 700 m wide and 17 m deep. In addition, a new base for the Qatar Emiri Naval Forces (QENF) will be built offshore of the new port to provide technical and logistic support. The Qatar Economic Zone 3 (QEZ3) will also be located adjacent to the port. As of May 2015, the port site is 67% completed, while the QENF base is 17% ready and the QEZ3 is 62% finished. A majorcontract award by Q2 2015 will be for the construction of 225 buildings in the naval base. The contract for the construction of security facilities to serve the naval base is also expected. Qatari Government has stipulated that at least 50% of the work on the new port project should be awarded to domestic contractors.
MEED, Systra Group, New Port Project, Oxford Business Group, Ashghal, Doha News, J&P Group, Construction Week Online, Technical Review Middle
East
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Source:
Qatar: Government Infrastructure Projects (cont’d)
Air
Transport
Infrastructure
In 2014, Qatar completed its USD 15bn Hamad International Airport with a total area of 29 sq km. The new airport replaces Doha International Airport and thus becomes the only Qatari international airport. The passenger terminal is spread over an internal area of 600,000 square meters and has three concourses and 33 contact gates with capacity of 30 million annual passengers. Foster + Partners is finalising design plans to expand the passenger terminal. The extension will increase the size of the passenger terminal to approximately 900,000 sq m and will add 24 plane gates. Upon completion of the extension project, HIA will have annual capacity of 50 million passengers, 2 million tonnes of cargo and 320,000 aircraft landings and take-offs.
Bids for the project will be invited once the design is finalised.
Railway
Infrastructure
The future passenger and freight railway network will connect key Qatari sites like Doha, Mesaieed Port, Ras Laffan, Dukhan, and Al Shamal and will also contribute to the regional GCC network through its connections to Saudi Arabia and Bahrain. The USD 28.8bn network will extend to 350 km at a speed of about 220-270 km/h for passenger trains and 120 km/h for freight trains. It will be built in four phases between 2015 and 2030. Phase 1 foresees the construction of approximately 143 km of operational railway track with 34 turnouts (main tracks), one station, three freight yards, one intermodal yard, 59 bridges and 36 culverts (a tunnel for a road or drain going under a road or railroad). In February 2015, Qatar Rail launched a new prequalification process for the civil works on the first phase. Upon completion, the network will consist of five lines - freight line from Mesaieed Port to Ras Laffan, mixed line (passenger and freight) from Doha to Dukhan, mixed line from Doha to Al Shamal, mixed line from Doha to Saudi Arabia, and high speed passenger line from Doha to Bahrain.
Public
Transport
Infrastructure
The construction of the Doha Metro is an extensive project that is expected to be completed in 2026 at an estimated cost of USD 36
bn. Running underground as well as at elevated and at-grade levels, it will consist of four lines – Red (Coast) Line, Green (Education)
Line, Gold (Historic) Line, and Blue (City) Line. Upon completion, the metro network will span approximately 230 km and will include
107 stations. During the first phase 37 stations will be constructed and over 86.5 km of track will be laid by 2019. In the second phase
(2020 – 2026), 70 stations and some 146 km of track will be added to the network.
In addition, a light rail network will be built to connect Lusail City in the northern outskirts of Doha to the capital city. The EUR 2.5bn
network will have a length of 34 km and will have 4 lines and 38 stations at at-grade and underground levels. The first line should be
operational by 2018, while the remaining three lines are to be completed by 2020
Airport Technology, HIA, BMI Research, Qatar Rail, Railway Technology, Railway Gazette, Gulf Business
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Source:
Qatar: Biggest Infrastructure Projects
Distribution of Top 10 Biggest Projects by Value
Infrastructure Projects in Top 10 Biggest Projects, Q1 2015
Number and Industries of Top 10 Biggest Projects
EMIS Insight, MEED
Transportation 75.8%
Other industries
24.2%
Project Client Contract
Value,
USD mn
Award Year Expected
Completion
Qatar Integrated Rail Project: Doha Metro: Systems, Rolling Stock and Track Work Qatar Rail 4,129 2015 2017
Qatar Integrated Rail Project: Doha Metro: Gold Line: Tunneling Works Qatar Rail 3,300 2014 2018
Qatar Integrated Rail Project: LRT: Lusail Light Rail: Phase 2 Qatar Rail 2,722 2014 2018
Qatar Integrated Rail Project: Doha Metro: Green Line: Tunneling & Main Stations Works Qatar Rail 2,520 2013 2018
Qatar Integrated Rail Project: Doha Metro: Red Line North: Tunneling Works Qatar Rail 2,184 2013 2017
Expressway Programme: New Orbital Highway & Truck Route: Contract 3 Qatar Public Works Authority 1,691 2014 2017
Qatar Integrated Rail Project: Doha Metro: Red Line South: Tunneling Works Qatar Rail 1,500 2013 2018
7
1 1 1
Transportation Construction Power Gas
Number of projects
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III. Saudi Arabia
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Saudi Arabia: Sector Highlights
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 26th out of 144 economies in terms of road infrastructure quality. In 2014 Saudi
Government announced plans to build USD 2.7 bn roads in Asir, Jazan, and Makkah regions. Besides those, road construction projects with total value of about USD 1.7 bn are
underway at different stages of execution, as of June 2015.
In 2013 Saudi Arabia had a road network of 202,246 km of which 61,376 km are paved. The country harsh climate and terrain pose serious obstacles to road construction. Despite
the remarkable 3,064 km of road that were constructed in 2013, Saudi Arabia still had one of the lowest road densities in the MENA region at 0.09 km/sq.km of land area. In 2013,
Riyadh, Madinah, Asir, and Qaseem were the regions with highest weight of new rural road developments and also with the densest network in general.
Road Infrastructure
Air Transport Infrastructure
The main ports in the country are Jeddah Port, Jubail Industrial, Yanbu Industrial, and Dammam. They account for about 93% of total cargo throughput over the
2010-2014 period.
There is a positive outlook in terms of port infrastructure as Saudi government has earmarked around USD 30 bn to expand the Red Sea Gateway Terminal at
Jeddah Port, the seaport at King Abdullah Economic City, and the Dareen Port.
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 40th out of 144 economies in terms of port infrastructure quality.
This rather low ranking is attributed despite the extremely vast network of airports in the country, consisting of 4 international and 23 regional/domestic facilities. In May 2014, three
out of the four international Saudi airports have found their place in the top 10 biggest MENA airports by seat capacity – Riyadh King Khalid Intl Airport, Jeddah King Abdulaziz Intl
Airport, and Dammam King Fahd Intl Airport. Over the 2010-2014 period, Madinah airport has increased its capacity by 156%, Abha – by 119%, Jeddah – by 56%, Dammam – by
41%, and Riyadh – by 27%. They all have found place in top 10 fastest growing airports in the Middle East.
Investments in increased airport capacity that are outlined in the government policy section of the current report set continuous positive outlook for the Saudi air infrastructure
sector. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 41st out of 144 economies in terms of air transport infrastructure quality.
Saudi Arabia is among the few countries in MENA that has operating railway system as at 2014. In the 2013-2014 World Economic Forum’s Executive Opinion
Survey, the country ranked 50th out of 144 economies in terms of railway transport infrastructure quality.
Currently, Saudi railway network consists of approximately 1,380 km of which 449 km are a passenger line, 556 km are a cargo line connecting King Abdulaziz
Port to Riyadh, and 373 km are branch lines that connect industrial, agricultural and military sites. The railway infrastructure will develop at a huge pace in the
years to come as Saudi Government has adopted an enormous USD 97 bn plan to expand its national railway network to 9,900 km by 2040.
Railway Infrastructure
Port Infrastructure
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Comments
Saudi Arabia: Economic Indicators
The Saudi economy grew at the considerable CAGR of 6.0% over the 2009-2043 period. BMI Research experts project favorable 3.7% y-o-y growth in
2015, despite the drop of oil prices. BMI Research claims that economic advancement will be driven by strong fiscal stimulus and high oil production but
expects their effect to lessen from 2016 onwards. Moderate inflation is anticipated in 2015 at 3.2% y-o-y change of the consumer price index. However, in
the mid-term it is possible that inflation rise following extended period of robust growth, coupled with loose fiscal and monetary policy.
Impressively, over the 2009-2013 period, Saudi Government has allocated around USD 12.6 bn (or SAR 47.3 bn) on infrastructure development.
Selected Economic Indicators
CEIC, World Bank, Ministry of Economy and Planning – Saudi Arabia, Oxford Economics, BMI, - * BMI estimates, - ** Oxford Economics estimates
2009 2010 2011 2012 2013 2014
GDP, constant prices 2005 (USD bn)405.8 436.0 473.4 500.9 520.7 543.04e*
GDP, constant prices 2010 (SAR bn)n/a 1,976 2,172 2,289 2,350 2,432
GDP, current prices (USD bn)429.1 526.8 669.5 734.0 748.5 751.6e*
GDP, current prices (SAR bn)1,609 1,976 2,511 2,752 2,791 2,798
Real GDP Growth Rate (%)1.8 7.4 8.6 5.8 4.0 4.3e*
Foreign Direct Investment, net inflows (USD bn, current)36.5 29.2 16.3 12.2 9.3 n/a
Consumer Price Index (%)5.1 5.3 5.8 2.9 3.5 2.7
Saudi Budget on Infrastructure Development (SAR bn)7.8 8.4 8.9 10.5 11.7 n/a
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Source:
Saudi Arabia: Quality of Infrastructure
Quality of Road Infrastructure*
Quality of Air Transport Infrastructure*
Quality of Port infrastructure*
Quality of Railway Infrastructure*
WEF, - * The indices range from 1 to 7, with a higher score representing better performance.
4.0 4.0 4.0 4.0 4.0
4.6 4.5 4.54.3 4.2
5.5
5.86.0
5.8
5.3
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Saudi Arabia
4.3 4.3 4.3 4.24.1
4.6 4.5 4.5 4.44.3
5.2
5.45.3
5.1 5.0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Saudi Arabia
4.7 4.74.6
4.4 4.4
5.15.0
4.9
4.7
4.4
5.25.4
5.3
5.1 5.0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Saudi Arabia
3.23.1 3.1
3.2 3.3
2.9
2.7 2.7
3.03.0
3.6
4.0
3.7
3.4
3.1
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average Saudi Arabia
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Source:
Saudi Arabia: Road Infrastructure
Road Network (km) and Road Density (km/sq.km of land area)
Rural and Main Paved Roads, km.
Existing and Newly Constructed Roads, km.
Rural Roads Distribution by Region, 2013
Ministry of Transportation – Saudi Arabia
184,105187,559
193,037195,974
199,1823,455
5,479
2,9373,208
3,064
187,559
193,037
195,974199,182
202,246
2009 2010 2011 2012 2013
Newlyconstructed, km
Existing,km
Totalroadlength,km
187,
559
193,
037
195,
974
199,
182
202,
246
0.09 0.09 0.09 0.09 0.09
Road length Road density
Riyadh 10.9%Asir 15.5%
Qaseem 13.2%
Madinah 13.1%
Makkah 12.5% Hail 8.9%
Tabouk 7.2%
Al Jawf 4.4%
Baha 4.2%
Jazan 3.5%
Najran 2.9%Eastern Province 2.7%
Northern Frontier 0.9%
132,585 135,001 136,831 138,846 140,870
54,974 58,036 59,143 60,33661,376
187,559 193,037195,974 199,182
202,246
2009 2010 2011 2012 2013
Mainpavedroads,kmRuralroads,km
Totalroadlength,km
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Source:
Saudi Arabia: Port Infrastructure
Port Infrastructure
www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco
Port NameUN/
LOCODELocation Overview Maximum size
Jeddah Islamic Port SAJED On the Red Sea coast of
Saudi Arabia
Jeddah Islamic Port is the principal Saudi port. It occupies 10.5 sq.km., with 58 deep water berths
having an overall length of 11.2 km. and a draft reaching 16 m., capable of accomodating the latest
generation of large container vessels (with a capacity of 6500 TEUs).The port handles all types of
cargo and disposes of specialised equipment such as quay container gantry cranes, straddle carriers,
rubber tired gantry cranes, yard cranes, reefer points to provide reefer containers with electricity,
various types of forklifts, low and high trailer with different load capacities, bulk grain discharging
equipment, etc. A major port facility is the King Fahad Ship Repair Yard that consists of 2 floating
docks, capable of receiving vessels up to 45,000 tonnes, and two 170-meter long berths to receive
vessels up to 60,000 tonnes. The port disposes of 2.1 sq. km. open storage area, 0.4 sq. km. covered
storage area (59 warehouses + transit sheds), grain silos, grain and rice mills and tanks to store
edible oil.
LOA 367 m., draft 15 m.
Dry Cargo: LOA 250 m.,
draft 11.5 m.
Containers: Draft 15 m.
Ro-Ro: LOA 180 m.,
draft 11 m.
Bulk: Draft 13.5 m.
Tankers: 100,000 d.w.t., LOA 250 m.,
draft 14 m.
King Abdul Aziz Port,
Dammam
SADMN Approximately mid-way
along the eastern coast of
Saudi Arabia.
This is a major Saudi port, acting as a gateway to the Eastern and Central Provinces of the country. It
is well connected to the inland through highway system and railway to Riyadh Dry Port. Among the
major facilities are 39 berths, 18 warehouses, medical clinic, and fire department. The port also
disposes of 8 container gantry cranes, 15 new straddle carriers, 25 terminal tractors, 20 3-ton forklift
trucks and 2 empty container handlers. It covers a total area of some 193 sq. km.
Dry Cargo: Depth 13 m.
Containers: Depth 13.8 m.
Ro-Ro: Depth 12.8 m. Bulk: Depth 13 m.
Dhiba Port SADHU On the west coast of
Saudi Arabia, 25 km.
northwest of Dhiba city
and 500 km. north of
Yanbu.
Being a natural harbor protected on all three sides by hills, Dhiba Port is the nearest Saudi port to the
Suez Canal and other Egyptian ports. It handles Ro-Ro, general cargo and livestock through its 3
berths and disposes of 6,000 sq. m. full covered storage area, 6,000 sq.m. top covered storage area,
and 150,000 sq.m. uncovered storage area.
Draft 10 m. Channel: Depth 11 m.
Dhiba Plant Terminal n/a On the west coast of
Saudi Arabia, about 5
km. southeast of the city
of Dhiba and about 200
km. southwest of Tabuk.
This is a one berth multiproduct discharge facility that is connected to the shore by a causeway. Products: 50,000 d.w.t., LOA 200 m.,
draft 12.8 m.
Jizan Port SAGIZ On the southern Red Sea
Coast, 335 nautical miles
south-southeast of
Jeddah.
Jizan port is a deep water port that has road access to the hinterland container depots and thus is
able to serve the whole of the Arabian Peninsula's southeast. The port handles general cargo,
foodstuffs, livestock, and cement clinker (bulk & bagged). It consists of 12 berths, 16,896 sq. m. of
shed storage area, and 197,000 sq. m. of open storage area.
Dry Cargo: LOA 245 m., draft 11.5 m.
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Source:
Saudi Arabia: Port Infrastructure (cont’d)
Port Infrastructure
www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco
Port NameUN/
LOCODELocation Overview Maximum size
Jizan Terminal n/a In the Red Sea,
southeast to the Jizan
Port, approximately 335
nautical miles southeast
of Jeddah and near the
border with Yemen.
The bulk plant terminal comprises two CALM SBMs operated by Saudi Aramco. Products: D.w.t. 50,000 tonnes, LOA 220 m.,
beam 35 m., draft 16.3 m.
King Fahd Industrial Port
Jubail
SAJUB On the Gulf coast of
Saudi Arabia, approx.
80 km. north of
Dammam.
The port consist of 19 opertional berths. It handles chemical fertilisers, iron ore, refined petroleum
products, base lube oil products, ethylene, butadene, propylene, vynil chloride monomer, butene,
ammonia.
LOA 280 m., draft 13.3 m. (tidal).
Bulk: Draft 13.3 m. (tidal).
Tankers: Displacement 360,000 tonnes,
draft 25 m.
Jubail Commercial Port SAJUB On the Gulf coast of
Saudi Arabia, approx.
80 km. north of
Dammam.
The port covers area of approximately 4,1 sq. km. It consists of 8 berths for general cargo handling, 4
berths for bulk cargo handling, and 4 quays for container handling. In addition, there is 78,000 sq. m.
covered storage area , 1,800 sq. m. dangerous goods repository area, and 589 sq. m. internal storage
yards in the customs area. The port is also equipped with mobile cranes (40-120 tonnes), forklifts (3-
35 tonnes), locomotives and trailers, grabs with capacity of 6.3-20 cubic meters for handling bulk
cargo, skips, excavators, street sweeping machines, etc.
LOA 280 m., draft 13.3 m. (tidal).
Bulk: Draft 13.3 m. (tidal).
Tankers: Displacement 360,000 tonnes,
draft 25 m.
King Fahd Industrial Port,
Yanbu
SAYBI On the central western
coast of Saudi Arabia,
165 nautical miles north
of Jeddah and approx.
12 nautical miles
southeast of Yanbu
Commercial Port.
The port is among the largest ports for loading crude oil, its refined products, and petrochemicals in
the Red Sea. It can handle all types and sizes of oil tankers and containers, general cargo, bulk cargo
and Ro-Ro vessels. There are 23 berths, 40 points to supply reefer containers with power, an area of
167,067 sq.m. for container storage, an area of 10,000 sq.m. for storage of general cargo, an area of
18,000 sq.m. covered by warehouses, and an area of 800 sq.m. for hazardous cargo.
Containers: LOA 250 m., draft 12.6 m.
Ro-Ro: LOA 250 m., draft 12.6 m.
Bulk: 60,000 d.w.t., draft 14.0 m.
Crude: 500,000 d.w.t., LOA 420 m., draft 29 m.
Chemicals: 80,000 d.w.t., LOA 260 m.,
draft 14.2 m.
Gas: 280,000 d.w.t., LOA 299 m., draft 16 m.
Yanbu Commercial Port SAYNB On the central western
coast of Saudi Arabia,
about 165 nautical miles
north of Jeddah and
approx. 12 nautical miles
southeast of Yanbu
Commercial Port.
Yanbu Commercial Port is the nearest major Saudi seaport to Europe and North America. It handles
mainly the export of bulk cement and clinker, and the import of bulk-barley, bulk rutile, petcoke, and
project cargo. The port is thus suitable for handling various types of vessels including general cargo,
ro – ro, passenger ships, bulk-cargo etc. It consists of 9 deep-water berths, covered storage space of
61,950 sq.m. and open storage area of 529,400 sq.m. In addition, there are 2 silos each with a
storage capacity of 20,000 tonnes.
LOA 260 m., beam 55 m., draft 10.36 m.
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Source:
Saudi Arabia: Port Infrastructure (cont’d)
Port Infrastructure
www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco
Port NameUN/
LOCODELocation Overview Maximum size
Rabigh SARAB On the west coast of
Saudi Arabia, about
80 nautical miles north of
Jeddah.
A deep-water port protected by an offshore barrier reef running parallel to the coast. It serves mainly
the Rabigh Refinery operated by Petro Rabigh, a joint venture of Aramco and Sumitomo Chemical.
The port consists of the Liquid Cargo Port, Pioneer Port, Dry Cargo Port and Dry Cargo Pier.
Dry Cargo: 21,200 d.w.t., LOA 152 m., draft 8.3
m. Ro-Ro: 13,740 d.w.t., LOA 150 m., draft 8.3
m. Bulk: 15,000 d.w.t., LOA 155 m., draft 9.1 m.
Tankers: 325,000 d.w.t., LOA 360 m., draft 23.5
m. Chemicals: 50,000 d.w.t., LOA 211 m., draft
12.63 m. Gas: 325,000 d.w.t., LOA 360 m., draft
23.5 m.
Ras al Khafji SARAR On the northeast coast of
Saudi Arabia, 17 km.
south of the Kuwait
border.
The port consists of 2 CBM berths and two SBM berths for tankers. There are also barge facilities for
handling dry cargo but these are rarely used.
Draft 20.1 m.
Ras Tanura SARTA On a peninsula on the
eastern cost of Saudi
Arabia, about 32 nautical
miles northwest of
Bahrain
The port is a major oil operations center for Saudi Aramco. It consists of the Ras Tanura Terminal,
Juyamah Crude (SPM) Terminal, and Juyamah LPG Terminal. The Ras Tanura Terminal includes sea
islands, and north and south piers with total of 12 berths.
Crude: Draft 21.0 m. Products: Draft 14.
1 m. (tidal).
Juaymah Terminal SAJUT It is located 18 nautical
miles northwest of Ras
Tanura.
The terminal handles the export of LPG to LPG carriers ranging from 25,000–200,000 d.w.t. No LNG
is handled. The terminal comprises one Single Point Mooring (SPM) berth.
LPG Terminal: Gas: 200,000 d.w.t., draft 23 m.
SPM berth: Crude: 750,000 d.w.t., draft 26 m.,
depth 35 m.
Ras Al-Khair SARAZ On the eastern coast of
Saudi Arabia, 135 km. to
the north of Jubail.
The works on the port started in 2008 and it took 38 months for completion at a total cost of approx.
640 USD mn. It consists of 3 operational 785 meter-long and 15 meter deep berths; one 121 meter-
long and 6-meter deep service berth; 700-meter diameter vessel turning basin; a 23-kilometer long, 16
meter deep and 170 meter broad approach channel and waves breaker; loading yards, 25 buildings
among them buildings for the administration, customs, border guards, security and buildings as well
as buildings for operation and maintenance services and warehouses. Work is in progress for building
berths 5 and 6. The port serves more than 80 different industrial projects in the region.
General cargo: 70,000 d.w.t. Liquid cargo: 50,000
d.w.t.
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Saudi Arabia: Port Infrastructure (cont’d) and Ports Throughput
Port Infrastructure
Port Throughput, thou tonnes
CEIC, World Bank, www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco, Ports Data
Port NameUN/
LOCODELocation Overview Maximum size
Ras Al Mishab SARAM On the northeast coast
of Saudi Arabia, 28
nautical miles south of
the Kuwait border.
This is a military port operated by the Ministry of Defence and Aviation. Draft 10.0 m.
2010 2011 2012 2013 2014
Jeddah 49,165 52,027 62,723 60,384 55,652
King Abdulaziz, Dammam 23,596 25,873 27,364 29,027 31,275
Jubail, Industrial 46,386 44,700 45,872 44,634 58,857
Jubail, Commercial 4,357 4,709 6,787 9,107 10,224
Yanbu, Industrial 27,387 33,682 37,492 39,765 42,330
Yanbu, Commercial 1,583 1,612 2,492 3,225 3,057
Jazan 900 818 1,557 3,719 2,976
Dhiba 651 535 1,143 1,803 1,226
Ras Al Khair n/a 1,043 2,291 3,100 4,549
Total throughput 154,025 165,000 187,722 194,765 210,146
Container Port Traffic, thou TEU (20 foot equivalent units)
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Source:
Saudi Arabia: Air Transport Infrastructure
International Airports
Airports Data, General Authority of Civil Aviation – Saudi Arabia, Airport Technology, www.worldaerodata.com, - * Passenger throughput includes arrivals and
departures and excludes transit passengers.
Airport NameIATA
CodeNear city Terminals and other facilities Runway ID and length
Airport Annual Throughput*,
2013
International Airports
King Abdulaziz International Airport JED Jeddah The airport and its adjacent facilities cover a total
area od 105 sq.km. There are 2 main passenger
terminals and a 465,000 sq.m. Hajj terminal that
is used only during the Hajj season.
16C/34C: 3,299 x 60 meters
16R/34L: 3,800 x 60 meters
16L/34R: 3,690 x 45 meters
22.2 mn passengers
467,181 tonnes of cargo
187,446 flights
King Khalid International Airport RUH Riyadh The airport and its adjacent facilities cover a total
area of 315 sq. km. There are 4 passenger
terminals (only three of which are in use) with
eight gates and aero-bridges each. The triangular
base of each terminal measures 47,500 sq. m.
15R/33L: 4,205 x 60 meters
15L/33R: 4,205 x 60 meters
18.5 mn passengers
448,831 tonnes of cargo
161,314 flights
King Fahd International Airport DMM Dammam The airport is among the largest in the world as it
covers a total area of 776 sq. km. (of which about
43 km. are utilised). The airport offers a 327,390
sq.m. six-level passenger terminal with 15 gates.
16R/34L: 4,000 x 60 meters
16L/34R: 4,000 x 60 meters
7 mn passengers
121,655 tonnes of cargo
72,897 flights
Prince Mohammad bin Abdulaziz
Airport
MED Medina MED Airport serves the second holiest city in
Islam after Mecca. After construction works that
were completed in early 2015, the airport offers
150,000 sq.m. terminal area, 64 check-in
counters, 31 boarding bridges, extended runway,
new taxiways, upgraded fueling and the lighting
system, and a number of newly constructed
ancillary buildings.
17/35: 4,335 x 60 meters
18/36: 3,060 x 45 meters
4.4 mn passengers
7,822 tonnes of cargo
41,110 flights
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Saudi Arabia: Air Transport Infrastructure (cont’d)
Domestic Airports Domestic Airports
Airports Data, General Authority of Civil Aviation – Saudi Arabia, Airport Technology, www.worldaerodata.com
Airport NameIATA
CodeNear city Runway ID and length
Airport Annual
Throughput, 2013
Domestic Airports
Abha Regional Airport AHB Abha 13/31: 3,350 x 45 meters 2.3 mn passengers
3,840 tonnes of cargo
20,112 flights
Prince Sultan Bin
Abdulaziz Airport
TUU Tabuk 17/35: 4,006 x 45 meters 1 mn passengers
2,033 tonnes of cargo
8,567 flights
Taif Airport TIF Taif 07/25: 3,735 x 45 meters
17/35: 3,350 x 45 meters
921 thou passengers
410 tonnes of cargo
7,771 flights
Prince Naif Airport ELQ Tabuk 15/33: 3,000 x 45 meters 947 thou passengers
909 tonnes of cargo
9,185 flights
Hail Airport HAS Hail 18/36: 3,720 x 45 meters 576 thou passengers
1,092 tonnes of cargo
5,027 flights
King Abdullah Bin
Abdulaziz Airport
GIZ Jazan 15/33: 3,050 x 45 meters 1.3 mn passengers
2,457 tonnes of cargo
9,485 flights
Al-Baha Airport ABT Al-Baha 07/25: 3,350 x 45 meters 328 thou passengers
130 tonnes of cargo
2,857 flights
Wadi Al-Dwaser Airport WAE Al-Dwaser 10/28: 3,050 x 45 meters 110 thou passengers
10 tonnes of cargo
1,982 flights
Sharurah Airport SHW Sharurah 08/26:3,650 X 45 meters 131 thou passengers
82 tonnes of cargo
1,941 flights
Turaif Airport TUI Turaif 10/28: 3,000 x 45 meters 53 thou passengers
24 tonnes of cargo
983 flights
Bisha Airport BHH Bisha 18/36: 3,050 x 45 meters 363 thou passengers
124 tonnes of cargo
3,573 flights
Airport NameIATA
CodeNear city Runway ID and length
Airport Annual
Throughput, 2013
Domestic Airports
Arar Airport RAE Arar 10/28: 3,050 x 45 meters 202 thou passengers
360 tonnes of cargo
2,118 flights
Wedjh Airport EJH Al Wajh 15/33: 3,050 x 45 meters 50 thou passengers
25 tonnes of cargo
1,030 flights
Rafha Airport RAH Rafha 11/29: 2,997 x 45 meters 53 thou passengers
29 tonnes of cargo
922 flights
Najran Airport EAM Najran 06/24: 3,050 x 45 meters 579 thou passengers
528 tonnes of cargo
5,905 flights
Al Qaisumah/Hafr al Batin
Airport
AQI Al
Qaisumah
16/34: 3,000 x 45 meters 130 thou passengers
118 tonnes of cargo
2,166 flights
Al-Jouf Airport AJF Sakakah 10/28: 3,661 x 45 meters 331 thou passengers
641 tonnes of cargo
3,684 flights
Al-Ahsa Airport HOF Hofuf 16/34: 3,060 X 45 meters 186 thou passengers
168 tonnes of cargo
5,494 flights
Al-Gurayat Airport URY Al-Gurayat 10/28: 3,050 x 45 meters 168 thou passengers
314 tonnes of cargo
1,664 flights
Prince Abdulmohsin Bin
Abdulaziz Airport
YNB Yanbu 10/28: 3,210 x 45 meters 766 thou passengers
275 tonnes of cargo
7,707 flights
Prince Abdulmajeed
Airport
ULH Al-Ula 12/30: 3,050 X 45 meters 9 thou passengers
1 tonne of cargo
217 flights
Prince Salman Bin
Abdulaziz Airport
DWD Dawadmi 15/33: 3,050 x 45 meters 21 thou passengers
8 tonnes of cargo
434 flights
Rabigh Airport RGB Rabigh 15/33: 2,359 x 32 meters 1 tonne of cargo
34 flights
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Saudi Arabia: Investment Climate
FDI
Regime
The US Department of State considers Saudi Arabia as attractive and relatively stable market for investment. Saudi foreign-direct-investment
law permits foreigners to invest in almost all sectors of the economy with priority being given to investments in industry, transportation,
education, health, communications technology, life sciences, and energy; as well as in four "Economic Cities" that are at various stages of
development. However, there is a “negative list” that currently prohibits FDIs in 2 industrial sectors and 13 service sectors, among them real
estate investment in Mecca and Medina, some subsectors in printing and publishing, audiovisual services, land-transportation services
excluding inter-city transport by trains, and upstream petroleum. All foreign investment projects in Saudi Arabia must obtain a license from the
Saudi Arabian General Investment Authority (SAGIA). Investments in specific sectors may require additional licenses from other government
authorities, including, but not limited to, the Saudi Arabian Monetary Agency (SAMA), the Capital Market Authority (CMA), or the
Communications and Information Technology Commission (CITC). SAGIA licenses should be granted or refused within 30 days of receiving
an application and supporting documentation from the prospective investor. In an attempt to ensure that investors do not just acquire and hold
licenses without investing, SAGIA performs periodic license reviews. However, these reviews might be seen as disincentive to longer-term
investment commitments as the possibility of cancellation adds uncertainty for investors. While SAGIA has set up the infrastructure to support
foreign investment, the US Department of State notes that many companies consider the process cumbersome and time-consuming.
Importantly, SAGIA is responsible to maintain and review periodically the activities that form the “negative list” of sectors with prohibited FDI
regime.
Right to
Private
Ownership
and
Establishment
Foreign investors are not required to take local partners in many sectors and may own real estate for company activities. However, offices practicing
law, accounting and auditing, design, architecture, engineering, or civil planning or providing healthcare, dental, or veterinary services must have a
Saudi partner with a minimum of 25% stake in total investment.
Foreign investors are allowed to transfer money from their Saudi-based enterprises outside of the country and can also sponsor foreign employees.
Minimum capital requirements to establish business entities range from zero to SAR 30 mn (USD 8 mn) depending on the sector and the type of
investment.
Foreign partners in service and contracting ventures organised as limited-liability partnerships must pay, in cash or in kind, 100 percent of their
contribution to authorised capital. Despite the bureaucracy and red tape that accompany the establishment of such an entity, foreign investment is
generally welcome in Saudi Arabia as long as it promotes economic development, transfers foreign expertise to Saudi Arabia, creates jobs for
Saudis, and/or expands Saudi exports. There are no legal requirements for foreign investors to purchase from local sources or export a certain
percentage of output, and their access to foreign exchange is unlimited. While not required to procure from local sources, investors may avoid
import duties on raw materials only if they can prove that these are not available locally. There is no requirement that the share of foreign equity be
reduced over time. Investors are not required to disclose proprietary information to the SAG as part of the regulatory approval process, except where
issues of health and safety are concerned.
US Department of State, May 2015
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Saudi Arabia: Investment Climate (cont’d)
Tax Rates
and
Access to
Credit
In July 2003, the corporate tax rate on foreign investors has been lowered to a flat 20%. It replaced a tiered system with tax rates as high as 45%.
While this has been a step towards more balanced treatment of foreign and Saudi-owned capital, the government tax policy still favors Saudi
companies and joint ventures with Saudi participation. Hence, Saudi investors do not pay corporate income tax, but are subject to a 2.5% tax, or
“zakat,” on net current assets.
After the financial crisis of 2008, followed by the default on USD 20 bn in debt by two Saudi business concerns and the debt restructuring in Dubai,
credit availability has been limited to all parties. Credit became somewhat more available in 2011 and 2012, but extraordinary public spending has
limited the demand for private lending. In addition to large-scale supplemental programs, credit is available from several government institutions,
such as the Saudi Industrial Development Fund, which allocate credit based on government-set criteria rather than market conditions. In order to
qualify for credit, companies must have a legal presence in Saudi Arabia. The private sector has access to term loans, and there have been a
number of issuances of sharia-compliant bonds, known as "sukuk," but there is no fully developed corporate bond market.
Dispute
Settlement
US Department of State notes that Saudi Arabia does not offer transparent, comprehensive legal framework for resolving commercial disputes
although SAG is making progress in this direction. The indicator that affects most negatively the country’s ranking in World Bank’s “Doing Business”
is resolving insolvency, on which it ranks 163rd out of 189 economies (Data from June, 2014).
Disputes with the government and over commercial issues generally fall under the jurisdiction of the Saudi Board of Grievances. The Board also
reviews all foreign arbitral awards and foreign court decisions to ensure that they comply with Sharia law. This review process can take years, and
outcomes are unpredictable. Even after a decision is reached in a dispute, enforcement of a judgment can take years. Therefore it is highly
advisable to consult with local counsel in advance of investing to review legal options and appropriate contractual provisions for dispute resolution.
Labour
Conditions
Recruitment of expatriate labor in Saudi Arabia is regulated by the Ministry of Labor and the Ministry of Interior. The large majority of the private-sector workforce
consists of workers coming from Bangladesh, Egypt, India, Pakistan, the Philippines, and Yemen with Westerners making up less than 2% of the labor force.
However, the Ministry of Labor aims to reduce the expatriate population from approximately 30% currently to 20% of the total population. Hence, the government
encourages the so-called “saudisation” - recruitment of Saudi employees - through series of incentives and limits placed on the number of visas for foreign workers
available to companies. The “Nitaqat” plan, which was rolled out in 2011, has divided companies into sectors, each with a different set of quotas for Saudi
employment based on company size. In 2013, the Ministry of Labor and Ministry of Interior have launched a campaign to deport illegal and improperly documented
workers, which has resulted in higher labor costs for many businesses. In addition, all companies operating in Saudi Arabia, regardless of sector or size, are
currently obliged to pay USD 640 per year for each expatriate employee in excess of the number of the company’s Saudi employees. Saudi labor law forbids union
activity, strikes, and collective bargaining. However, the government allows companies that employ more than 100 Saudis to form "labor committees". The minimum
age for employment is 14.
US Department of State, May 2015
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Saudi Arabia: Government Infrastructure Projects
Road
Infrastructure
In 2014, Saudi Government announced that it is launching a 1.6 USD bn project to connect the regions of Asir and Jazan in the southwest of the
country. The project foresees the construction of a 135 km. dual carriage road, stretching from Al-Far'a recreation park in the south of Abha to Beesh
in the north of Jazan area. Tender documentation on the project was being accepted until April 5th, 2015. In addition, the Government is rolling out
another 1.1 USD bn road project to link Makkah and Jazan areas via the Asir region. The related tender documentation was being accepted until
April 20th, 2015.
Road infrastructure projects that are underway as of May 2015 are presented in the Appendix of the present report.
Air
Transport
Infrastructure
King Abdulaziz International Airport (KAIA) is undergoing a massive expansion that is organised in three phases. They are expected to be completed
by 2035 leading to ultimate capacity at around 80 million annual passengers. Prince Mohammed Bin Abdulaziz Airport
Prince Mohammed bin Abdulaziz Airport expansion project aims to accommodate the influx of Hajj and Umrah pilgrims every year by providing
annual capacity of approx. 8mn passengers. The USD 2.4 bn was completed in early 2015 and includes a 153,000 sq m passenger terminal with 31
passenger boarding bridges, 26 auxiliary buildings, extended runway, three parallel taxiways and over 300,000sq m of apron.
As of May 2015, projects are being implemented to expand the capacity of King Khalid International Airport (from 15 to 20-25 million annual
passengers), Al Baha Domestic Airport (from 200,000 to 500,000 annual passengers), the Abha Regional Airport (from 9 400 sq m to 78 000 sq m
and 5 million annual passengers), Arar Domestic Airport (from 1 810 sq m to 7 560 sq m and 518 000 annual passengers), Al Jouf Domestic Airport
(from 2 900 sq m to 13 000 sq m and 1 million annual passengers), Al Qassim Domestic Airport (from 5 500 sq m to 36 000 sq m and 1.5 million
annual passengers). In addition, King Fahd International Airport is undergoing infrastructure improvements due for completion by 2018.
Finally, a tender is in progress for building a new international airport to serve pilgrims to Mecca in the nearby city of Taif. Upon completion, the 57
sq km airport will have capacity of 400 000 annual passengers. King Abdullah Bin Abdulaziz Airport in Jazan will also be replaced by new 55 000 sq
m airport with 3.6 million annual passengers capacity.
Saudi Tenders, Railway Technology, Railway Gazette, Public Transport Authority – Saudi Arabia, KAIA Airport, MEED Projects, Arab News, NACO - Netherlands
Airport Consultants, SUSRIS – Saudi-US relations information service, BMI, Saudi Railways, www.roadtraffic-technology.com, Zawya Projects via KFHR, Port
Technology, www.constructionweekonline.com
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Saudi Arabia: Government Infrastructure Projects (cont’d)
Port
Infrastructure
During the first Saudi Maritime Congress held in November 2014 Saudi authorities announced that the country will spend about USD30 bn to improve port infrastructure. Some of the mega port projects to be realised in the coming years include an expansion of the seaport at King Abdullah Economic City, whose construction total value is USD 26.6 bn and should be completed by 2020. In addition, Saudi Government has undergone a USD 510 mn expansion of the Red Sea Gateway Terminal at Jedah Islamic Port, that has increased annual capacity to 1.8 mn TEUs and has seen the construction of two berths: a 740 m. main berth, and a 390 m. feeder berth. The terminal’s annual capacity is set to increase to 2.5 mn TEUs. Additionally, terminal’s quay length will be enhanced by a further 255 m. to 1,324 m., the main berth extended from 745 m. to 850 m., while the new second berth will be enhanced from a feeder berth to a complete new 474 m. berth. In 2013, USD 210.6 mn works on Marafiq's Yanbu Industrial City-Marine Facilities were completed and Dareen Port was expanded at a cost of USD 35 mn in 2014.
Railway
Infrastructure
Saudi Arabia has adopted an impressive USD 97 bn plan to expand its national railway network. During the first USD 16.8 bn stage, continuing from 2010 to 2025, 5,500 km are to be built. In the second USD 55.7 bn phase 3 000 km are to be built between 2026 and 2033. In the last USD 24.8 bnstage, 1 400 km of railway will be constructed between 2034 and 2040. Among other improvements and construction works, the first stage foresees the construction of the connection to the GCC railway network with lines between Batha at the UAE Border - Hofuf and Jubail - Ras Al Khair - Kuwait Border, as well to Qatar and Bahrain. In addition, some other major projects that are part of the first 2010-2025 phase are the railway landbridgebetween Riyadh and Jeddah, the Haramain high speed railway connecting Makkah – Jeddah – Madinah, and north-south mineral line between the northern regions, Ras Al Khair/Jubail and the capital Riyadh. The landbridge involves the construction of approx. 1,100 km of railway - 950 km new line between Riyadh and Jeddah, and 115 km new line between Dammam and Jubail . Passenger trains running on the track will be designed to travel at 250 km/h and freight trains at 140 km/h. The landbridge project is expected to improve significantly the inland transportation capabilities of the country. It will facilitate the freight of cargo imported from East Asian countries via King Abdul Aziz Port in Dammam, and from Europe and North America via Jeddah Islamic Port. Moreover, with the construction of the Jeddah-Riyadh rail link the time taken for passenger transport will be cut double to 6 hours instead of the current 10 to 12 hours via bus. For freight trains the maximum travel time should take 12 hours. The Dammam-Jubail link will be 1 hour for passenger trains and 3 hours for freight trains.
Public
Transport
Infrastructure
Public transport developments in Riyadh are in line with the Riyadh Public Transport Project (RPTP). A major project that is currently being executed is the USD 23 bn Riyadh Metro Rail Project. The network, due for completion in 2018, will be approximately 178 km long with six lines and 85 stations including underground, elevated and at-grade sections. In addition, an 85 km three-line Bus Rapid Network (BRT) will be built and integrated with the metro stations.
As of May 2015, three substantial public transport projects are in tendering phase - Jeddah Metro Light Rail Transit System Project (planned network of 149 km), Makkah Mass Rail Transit System Development Project (planned network of 188 km, including 88 stations), and Medina Metro Project (planned network of over 95 km).
Saudi Public Transport Authority is also working on the design of public transport system in Dammam, Buraydeh, Jazan, and Taif and is developing public transport master plans in Abha, Hufof, Hail and Tabuk
Saudi Tenders, Railway Technology, Railway Gazette, Public Transport Authority – Saudi Arabia, KAIA Airport, MEED Projects, Arab News, NACO - Netherlands Airport Consultants, SUSRIS – Saudi-US relations information service, BMI Research, Saudi Railways, www.roadtraffic-technology.com, Zawya Projects via KFHR, Port Technology
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Source:
Saudi Arabia: Biggest Infrastructure Projects
Distribution of Top 10 Biggest Projects by Value
Infrastructure Projects in Top 10 Biggest Projects, Q1 2015
Number and Industries of Top 10 Biggest Projects
MEED
Transportation 66.82%
Other industries33.18%
Project Client Contract Value,
USD mn
Award Year Expected
Completion
Riyadh Light Rail Transit (Riyadh Metro): Lines 1 & 2 Arriyadh Development Authority 9,450 2013 2018
Haramain High-Speed Rail Network: Phase 2 Saudi Railways Organisation 8,396 2011 2016
Riyadh Light Rail Transit (Riyadh Metro): Lines 4, 5 & 6 Arriyadh Development Authority 7,820 2013 2018
Riyadh Light Rail Transit (Riyadh Metro): Line 3 Arriyadh Development Authority 5,942 2013 2018
KAIA: Phase 1: New Terminal: Package 1 General Authority of Civil Aviation 4,034 2010 2015
5
4
1
Transportation Construction Power
Number of projects
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IV. United Arab Emirates
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United Arab Emirates: Sector Highlights
The Emirati airport infrastructure consists of seven international airports. In 2014, ACI ranked Dubai Intl Airport 6th globally in terms of overall passenger traffic and
1st in terms of international passenger traffic. Naturally, on national level, the airport accounts for the biggest share of passengers, cargo, and aircraft movement. It
is also leader in MENA in terms of available seats (471 thou units), according to CAPA data from May 2014. Abu Dhabi Intl Airport holds the 9th place in MENA in
the same ranking, with 110 thou seats. Over the 2010-2014 period, the airport has increased its capacity by 66%, Dubai Intl Airport – by 44%, and Sharjah Intl
Airport – by 39%. Accordingly, they were among the fastest growing airports in the Middle East.
UAE Government has rolled out extremely ambitious airport expansion plans. It is noteworthy that Al Maktoum International Airport (the second Dubai airport), is
set to become the biggest airport in the world after undergoing USD 32bn expansion that will lift passenger capacity to 220 mn people annually by 2023.
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, the UAE ranked 2nd out of 144 economies in terms of air transport infrastructure quality.
The country offers a vast network of ports and offshore terminals, including state-of-the-art facilities like Port Khalifa’s semi-automated container terminal – the first
of its kind in the region. The port is set to increase its capacity to 2.5 mn TEUs per annum from the current 2 mn TEUs through an USD 81.7 mn loan by Abu Dhabi
Commercial Bank.
The UAE are also home of one of the few yards in the region that handle ship construction, repair, and conversion works - Dubai Drydocks World.
Other major infrastructure facilities include Jebel Ali – the principal port of Dubai, Zayed – Abu Dhabi’s oldest commercial port, Fujairah – the only multi-purpose
port on the eastern seaboard of UAE, Khorfakkan Port, Rashid Port, and others.
In the 2013-2014 World Economic Forum’s Executive Opinion Survey, the UAE ranked 3rd out of 144 economies in terms of port infrastructure quality.
The 2013-2014 World Economic Forum’s Executive Opinion Survey ranked UAE 1st out of 144 economies in terms of road infrastructure quality.
Clearly, the country is also a regional leader among MENA states.
In 2013, UAE had a road network of 12,215 km and road density of 0.15 km/sq km of land area – about average for the MENA region. Over the
2008-2012 period, the country has built average of about 460 km of new roads a year. In 2012, expressways and arterials accounted for some
45.2% of total roads. As of June 2015, roads with total cost of approx. As much as USD 2bn are being built and should be completed by 2017.
Road Infrastructure
Port Infrastructure
Air Transport Infrastructure
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Comments
United Arab Emirates: Economic Indicators
Emirati economy grew steadily at CAGR of 4.0% over the 2009-2014 period. BMI experts anticipate 4% y-o-y real GDP growth in 2015. Dubai is tocontribute with larger weight in growth compared to Abu Dhabi thanks to increased activity in trade, tourism and real estates. Private’s sector access tocredit in 2015 will be constrained as commercial banks increase provisioning to safeguard against potential loan losses due to the debt funding cliff.According to BMI, inflation is set to rise at 4% y-o-y change of the consumer price index in 2015.The transport and storage industry grew moderately at CAGR of 2.4% over 2009-2014, well below the GDP growth rate. The completion of a number ofmajor transport facilities such as the Dubai International Airport prior to 2009 has led to relatively lower activity in the sector in the subsequent years.
Selected Economic Indicators
CEIC, World Bank, BMI, Euromonitor, - * BMI estimates
2009 2010 2011 2012 2013 2014
GDP, constant prices 2005 (USD bn) 200.2 203.4 213.4 223.4 235.0 244.1e*
GDP, current prices (USD bn) 253.5 286.0 347.5 372.3 402.3 412.2e*
Real GDP Growth Rate (%) (5.2) 1.6 4.9 4.7 5.2 3.9e*
Foreign Direct Investment, net inflows (USD bn, current) 4.0 5.5 7.7 9.6 10.5 n/a
Consumer Price Index (%) 1.6 0.9 0.9 0.7 1.1 2.3
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United Arab Emirates: Quality of Infrastructure
Quality of Road Infrastructure*
Quality of Air Transport Infrastructure*
Quality of Port infrastructure*
Quality of Overall Infrastructure*
WEF, - * The indices range from 1 to 7, with a higher score representing better performance.
4.0 4.0 4.0 4.0 4.0
4.6 4.5 4.5 4.3 4.2
6.3 6.36.5 6.6 6.6
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average UAE
4.3 4.3 4.3 4.2 4.1
4.6 4.5 4.5 4.44.3
6.2 6.26.4 6.4
6.5
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average UAE
4.7 4.7 4.64.4 4.4
5.1 5.04.9
4.7
4.4
6.2 6.26.4 6.4
6.5
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average UAE
4.3 4.3 4.3 4.3 4.2
4.7 4.7 4.5 4.4
4.2
6.2 6.3 6.4 6.4 6.4
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Global average MENA average UAE
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United Arab Emirates: Road Infrastructure
Road Network (km) and Road Density (km/sq.km of land area)
Road Network by Type of Road, 2012
Roads & Transport Authority, United Arab Emirates
9,91
6
10,8
09
11,2
08
11,7
99
12,2
15
0.12 0.13 0.13 0.14 0.15
2008 2009 2010 2011 2012
Road length Road density
Arterials 24.4%
Expressways20.8%
Local Residential 19.7%
Collectors17.4%
Freeways 12.3%
Local
Industrial/Commercial
5.6%
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United Arab Emirates: Port Infrastructure
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Sharjah Ports
Khalid Port AESHJ On the Gulf coast,
approx. 15 nautical
miles northeast of
Dubai.
Port Khalid is also known as Sharjah port. Its facilities consist of 21 berths and one oil
terminal. The port is capable of handling general, reefer, dry, liquid, and bulk cargo and
provides oil and offshore support services as well. It is connected to the inland through
multilane roads and highways.
Channel: Depth 12 m. (tidal).
Dry Cargo: Draft 12 m.
Containers: Draft 12 m., LOA 300 m.
RoRo: Draft 9.5 m.Bulk: Draft 12 m.
Tankers: 60,000 d.w.t., draft 10 m.
Khorfakkan Port AEKLF On the Gulf coast of
UAE, 15 nautical miles
north of Fujairah.
A natural deep-water harbour that is situated only three hours from the UAE's main
centers of population - Dubai, Sharjah and Abu Dhabi. Khorfakkan's location attracts
shipping lines with large transshipment volumes. The port disposes of 6 berths (2 km total
length) to handle container vessels; storage area of 450,000 sq.m. of which 100,000 sq.m.
are an open storage area; and 20 container gantry cranes including 6 super post-panamax
gantries, and 4 mega-max tandem-lift cranes. In addition, there are 26 yard gantries, 30
container handlers, and 116 terminal tractors. The port has annual capacity of 5 mn TEUs.
Channel: Draft 16 m., UKC at least 10% of
draft.
Containers: Draft 16 m.
Ro-Ro: Draft 10.4 m.
Mubarek Terminal AEMUB Offshore, south-
southeast to the island
of Abu Musa.
The terminal is under the jurisdiction of the Emirate of Sharjah and is operated by the
Crescent Petroleum Company. It represents an offshore floating storage unit (FSU) of
87,000 d.w.t. that is permanently moored to an SPM and used for the storage of crude oil.
n/a
Al Hamariyah Port AEHZP On the Gulf coast,
approx. 16 nautical
miles northeast of
Dubai.
Al Hamariyah Port facilitates non-containerised cargo movements between Dubai, Arabian
Gulf, East Africa and Western India. It is capable of handling dhows, break-bulk, ro-ro
vessels, and 190 fishing boats at any given time. The port also includes a large quarantine
facility that accomodates livestock imports. Its proximity to Dubai’s used car market makes
it an attractive hub for used car trading.
LOA 230 m., draft 12.6 m.
Al Hamariyah LPG
Terminal
n/a On the Gulf coast,
approx. 7.5 nautical
miles northwest of
Hamriyah.
The terminal consists of a shore tank with related onshore facilities, and an offshore
loading berth composed primarily of a single point mooring buoy (SPM).
Gas: 57,000 d.w.t., LOA 230 m.,
draft 12.6 m., depth 14 m. (tidal).
Al Hamariyah SBM
Terminal
n/a In the Emirate of
Sharjah between Umm
Al Qaywayn and
Ajman, 7.6 nautical
miles offshore.
Hamriyah SBM Oil Terminal handles condensate and is owned by Sharjah National Oil
Corporation (SNOC).
Crude: Displacement 150,000 tonnes,
depth 22.9 m., draft 16 m.
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United Arab Emirates: Port Infrastructure (cont’d)
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Abu Dhabi Ports
Khalifa Port AEKHL On the Gulf coast, about
22.8 nautical miles
norteast of Zayed Port,
and 23.7 nautical miles
southwest of Jebel Ali.
Khalifa port is a state of the art facility that handles all of Abu Dhabi’s container traffic following the
100% TEU traffic transition from Zayed Port in late 2012. It has the first semi-automated container
terminal in the region, the only one in radius of 5,000 km. The offshore port is built on a reclaimed
area of 2.7 sq. km. and the container terminal is situated more than 4 km. out to sea. The container
terminal is operated by Abu Dhabi Terminals (ADT), has 6 post panamax container cranes, and a
dedicated quay of 1.2 km. using 3 berths. The total land area dedicated to general cargo (dry bulk,
break bulk and ro-ro) is approx. 850,000 sq.m. and is combined with 4 berths measuring 1.8 km. in
total. In addition, Khalifa Port has a dedicated bulk terminal built for EMAL (Emirates Aluminium). It
contains two vacuum ship unloaders that transfer coke and alumina onto wharf belt conveyor system.
There is also a container freight station of 116,360 sq.m. that includes 89,475 sq.m. freight station,
warehouse of 10,500 sq.m., open storage area of about 45,000 sq.m., and a container depot of
26,885 sq.m.
Draft 15 m.
Channel: Depth 16.5 m.
DryCargo: Depth 18 m. (CD).
Containers: Draft 16 m. (tidal).
RoRo: Depth 18 m. (CD). Bulk: Depth 18 m. (CD)
.
Zayed Port AEMZD Adjacent to the city of
Abu Dhabi, in the mid-
northern part of the UAE.
Zayed Port, also known as Mina Zayed, is Abu Dhabi’s oldest commercial port and has been the main
city port for the last 40 years. The port covers 5.1 sq. km. area and consists of three basins - Zayed
Port for deep water vessels, Free Port for smaller vessels, and New Free Port for lay-by and vessels
that require minor repairs. The port handles ro-ro, general and bulk cargo, as well as the emerging
cruise business, with future plans to develop the port as a world class cruise destination. Hence, the
port authorities have undertaken the development of a cruise terminal. The first phase being
completed, Zayed Port is now capable to accommodate two large cruise ships and one small vessel.
The upcoming development phases of the cruise terminal foresee the construction of a terminal
building and a traditionally themed souk and heritage area, with activities for both passengers and the
general public. Zayed Port offers 1 ro-ro berth and more than 143,000 sq.m. of covered warehousing
and cold storage with a capacity of 20,000 tonnes. The Free Port has 1 ro-ro berth as well and offers
open storage space.
Channel: Depth 15 m. (Zayed Port), 8 m. (Free
Port), 8 m. (New Free Port) Draft: 13 m. (Zayed
Port), 7.5 m. (Free Port), 7.5 m. (New Free Port)
Musaffah Port AEAMF Approx. 16 km. southeast
of central Abu Dhabi city.
Musaffah Port is the second oldest Emirati port following Zayed Port. It has an extensive waterfront of
nearly 40 km. The port handles heavy lift, general cargo, ro-ro, dry bulk,over dimensional cargo and
projects. In February 2011, the new Musaffah channel replaced the existing access channel to the
Musaffah industrial area. The new channel has provided opportunity for larger ships with deeper
draughts to access the port as it is 53 km. long, 200 m. wide and 9 m. deep.
Draft 9.0 m. (tidal).
Jebel Dhanna AEJED In Abu Dhabi's territorial
waters, about 96 nautical
miles west of Abu Dhabi.
Jebel Dhanna is operated by Abu Dhabi Company for Onshore Oil Operations (ADCO) and serves to
store and export crude oil produced by the company. It consists of three SPMs, located 3.0 n.m.
offshore and spaced 1.2 n.m. apart.
Tankers: 450,000 d.w.t., LOA 377 m.,
draft 14.3 m.
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United Arab Emirates: Port Infrastructure (cont’d)
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com, Picolli C., Assessment of port marine operations performance by means of simulation, Oct 2014
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Abu Dhabi Ports (Cont’d)
Ruwais Port AERUW Approx. 250 km. west of Abu
Dhabi.
The Ruwais port consists of six major terminals. The crude oil terminal is operated by The Abu Dhabi
Company for Onshore Oil Operations (ADCO). The other five terminals are a refined oil terminal operated by
Abu Dhabi Oil Refining Company (TAKREER), a gas terminal operated by Abu Dhabi Gas Industries Ltd.
(GASCO), a bulk cargo area and liquid ammonia terminal operated by Ruwais Fertilizer Industries (FERTIL), a
sulphur handling terminal operated by GASCO, and a polyethylene terminal operated by the Abu Dhabi
Polymers Company Ltd. (BOROUGE). In 2016, phase one of the ChemaWEyaat (Abu Dhabi National
Chemicals Company) terminal should start operating with three new berths and after phase 12 (planned for
2030) 18 new berths in total will be in commission.
Ro-
Ro: Depth 7.0 m. (CD).Bulk: Displac
ement 85,000 tonnes, LOA 248 m.,
draft 13.5 m., depth 14.8
(CD).Tankers: Draft 11.0 m.
Das Island AEDAS An island in Abu Dhabi's territorial
waters, approx. 70 nautical miles
east-southeast of Doha.
The port facilities are operated by Abu Dhabi Marine Operating Company (ADMA-OPCO) and Abu Dhabi Gas
Liquefaction Company Ltd (ADGAS). Hence, it handles the export of crude oil, liquefied gas and its by-
products, and molten sulphur.
Crude: Displacement
360,000 tonnes,
draft 24 m.Chemicals: Displacement
8,500 m., LOA 130 m.,
draft 10 m.Gas: Displacement
100,000 tonnes, LOA 300 m.,
draft 14 m.
Zirku Island AEZUR An island in Abu Dhabi's territorial
waters, approx. 75 nautical miles
west-northwest of Abu Dhabi.
Zirku Island is about 5 km. long and 2.5 km. wide and accomodates a harbour and on oil terminal that is
situated 8 nautical miles off the island. The harbour consists of a small boat service jetty. The oil terminal
comprises 2 single point mooring buoys (SPMs) for the export of crude oil from Upper Zakum, Umm Al-Dalkh
and Satah Fields.
Oil Terminal: Crude: 350,000 d.w.t.,
draft 21 m., depth 27 m. Harbour:
Depth 4.5 m.
Mubarras Island AEMBS An island in Abu Dhabi's territorial
waters, approx. 51 nautical miles
west of Abu Dhabi.
This is a crude oil export terminal comprising a SPM, offshore Central Facilities Platform (CFP), and operations
and storage facilities.
Dry
Cargo: Draft 3.66 m. Tankers: Draft
13.5 m.
Umm Al Nar AEULR At the southeast tip of Abu Dhabi
Island.
This is a petroleum port that consists of 2 island-type berths connected to the shore through a causeway. 30,000 d.w.t., LOA 170 m.,
draft 9.50 m., beam 26.5 m.
Mugharraq Port n/a In the west of the emirate of Abu
Dhabi, 5 km. west of Jebel
Dhanna.
The port handles cargo services, primarily ro-ro, and supports ferry and logistics connections to Sir Bani Yas
Island and Delma Island. Currently, there are construction works on additional slipways, a revetment for
shoreline protection, deepening of the port basin, installing of additional equipment like fenders, and the
modification of the existing landing ramp.
LOA 70 m., draft 2.6 m.,
depth 2.6 m.
Al Sila Port n/a In the west of the emirate of Abu
Dhabi, 95 km. west of Jebel
Dhanna
The port handles commercial vessels such as containers, general cargo and ro-ro, as well as fishing vessels
for fisheries.
Sir Baniyas Logistics
Port
n/a On the western side to Sir Bani
Yas Island, 6.3 nautical miles
northwest of Jebel Dhanna.
The port is located on the Sir Bani Yas Island, which is developed and operated as a tourist destination by the
Tourism Development & Investment Company (TDIC). The port thus handles the transfer of all construction
materials and workers.
Ro-Ro: LOA 50 m., draft 5.0 m.
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Copyright © 2015 EMIS, all rights reserved.
Source:
United Arab Emirates: Port Infrastructure (cont’d)
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Abu Dhabi Ports (Cont’d)
Shahama Port n/a About 4 km. off the
main Abu Dhabi –
Dubai highway, and
has direct access to all
the surrounding
residential areas.
The port is currently redeveloped into a prime commercial, leisure and tourism hub and is
aiming to become one of the largest one-stop shops for leisure boat users in the region.
n/a
Emirate of Dubai Ports
Rashid Port AEPRA In Dubai city. Port Rashid, also known as Mina Rashid, is one of the major ports of the UAE. It is a multi-
purpose port equipped to handle both cargo and passenger operations. However, all cargo
operations have been transferred to Jebel Ali in 2008. The port consists of 18 berths and has
cruise and ferry terminals. The cruise terminal covers 2 sq. km. area and is capable of handling
7 mega cruise vessels / 25,000 passengers simultaneously, being one of the leading cruise
terminals in the Middle East. The Rahid Port's Ferry Terminal is located adjacent to the Cruise
Terminal. Currently, it handles some 20,000 passengers annually.
LOA 230 m., Depth 11 m.
Jebel Ali Port AEJEA On the Gulf coast of
the UAE, 40 km.
southwest of Dubai
and 90 km. northeast
of Abu Dhabi.
Jebel Ali Port is the principal port of Dubai, being a multi-modal hub with sea, air and land
connectivity, complemented by extensive logistics facilities. The port is a technologically
advanced facility, employing state-of-the-art equipment, a total of 63 berths (3 additional berths
under development), and 87 cranes (10 additional cranes on order) to accomodate the world’s
largest container vessels. It includes 3 terminals - container terminal, general cargo terminal,
and tank terminal and offers storage area of about 1.4 sq. km., plus 3,900 sq.m. cool storage
and 5,765 sq.m. cold storage. The port benefits significantly from its access to over 2 bn
people, its connection to the main UAE/GCC Road network, the proximity of Al Maktoum
International Airport (16 km.), and its location within the Jebel Ali Free Zone, which houses
more than 6,400 companies active in variety of industrial and service-orientated sectors.
Dry Cargo: Draft 14.5 m., depth 16 m.
Containers: Draft 17 m., depth 17.2 m.
Ro-Ro: Draft 10.5 m.,
depth 11.5 m.
Bulk: Draft 14.5 m., depth 16 m.
Tankers: 120,000 d.w.t., LOA 275 m.,
draft 14 m.,depth 15 m.
Gas: Draft 14 m., depth 15 m.
Fateh Terminal AEFAT In Dubai's territorial
waters in the Arabian
Gulf, approx.
40 nautical miles west-
northwest of Port
Rashid.
This is oil loading terminal operated by Dubai Petroleum Company (DPC). It consists of the
crude oil production and export facilities of the Fateh, SW Fateh, Falah, Jalilah and Rashid
fields.
Tankers: 350,000 d.w.t., seasonal,
depth 45.7 m.
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Copyright © 2015 EMIS, all rights reserved.
Source:
United Arab Emirates: Port Infrastructure (cont’d)
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Dubai Ports (Cont’d)
Dubai Drydocks World n/a Adjacent to Rashid Port
in Dubai.
Dubai Drydocks World is a ship repair yard that handles vessels conversions, as well as new building and offshore construction. It handles 350 vessels
per annum on the average, among them mainly ULCCs (Ultra Large Crude Carriers) and VLCCs (Very Large Crude Carriers), bulk carriers,
containerships, ro-ro vessels, cargo vessels, gas carriers, chemical tankers, offshore vessels and rigs. The yard has specialised LNG handling
capabilities. In order to support the conversion and repair works, the yard operates its own steel shop with a monthly fabrication capacity of over 2,000
tonnes, as well as a pipe shop equipped with modern CNC profile cutting, CNC pipe bending machines, GTAW/SAW welding equipment, an auto SAW
welding station, Orbital Tig (GTAW) and Plasma Automatic Welding (PAW) station. There is also a mechanical shop with an extensive range of
equipment including one of the world’s largest ram borers, a 20 meter shaft lathe, a 20 tonne balancing machine, a sophisticated modern milling
machine, a single Girder EOT crane of 5 tonne lifting capacity and height of 11.5 m. and two jib cranes 5.5 m. long of 2 tonne lifting capacity. The yard's
electric shop is capable of rewinding of 10,000KW HV motors and overhauling power transformers, testing motors of 11KV & 10,000 KW capacity, and
overhauling motors of 45 tonnes weight and 12 MW & 11 KV capacity.
Emirate of Ajman Ports
Ajman Port AEAJM Approx. 6 nautical miles
northeast of Port Khalid,
Sharjah and 12 nautical
miles northeast of Port
Rashid Dubai.
The port is located opposite to the Ajman Free Zone and handles containers, general cargo, and ro-ro
cargoes. It also offers 55,000 sq.m. of closed warehouse storage as well as temperature controlled
storage facility of 7,200 sq.m. (min. temperature 15 C)
Dry Cargo: LOA 150 m., beam 22 m., draft 7.5 m.
Containers: LOA 150 m., beam 22 m.,
draft 7.5 m.
Ro-Ro: Draft 4.7 m.Tankers: Draft 4.7 m.
Emirate of Umm Al Quwain Ports
Ahmed Bin Rashid Port AEQIW Approx. 30 miles
northeast of Dubai, in the
Emirate of Umm Al
Qiwain.
The facility is wholly owned and managed by the Government of Umm Al Qiwain and has Free Zone
status. It includes 845 m. of quay wall with 400 m. capable of handling ocean-going vessels.
LOA 200 m., draft 10 m.
Containers: 16,900 d.w.t., LOA 200 m.,
draft 9.8 m. Passengers: 30,000 g.t.,
LOA 210 m., draft 9.5 m.
Bulk: 25,000 d.w.t., LOA 176 m., draft 9.8 m.
Tankers: 20,000 d.w.t., LOA 164 m., draft 9.5 m.
Emirate of Fujairah Ports
Fujairah Port AEFJR Outside the Strait of
Hormuz, on the eastern
flank of the Arabian
Peninsula, overlooking
Arabian Sea, 3 km. north
of Fujairah town and
20 km. south of Khor
Fakkan Port.
Port of Fujairah is the only multi-purpose port on the Eastern seaboard of the United Arab Emirates. It
handles general cargo (incl. project cargoes), bulk cargo (incl. aggregate exports), and wet bulk cargo
(including crude, fuel, gas oil, condensate, gasoline, Jet A-1, naphtha and base oil) and is an
important hub for bunkering & oil trading activities. The port includes 2 oil terminals. Terminal 1 offers
3 berths with total length of 840 m. and capacity of DWT 100,000 tonnes/berth. Terminal 2 includes 4
berths with total length of 1,500 m. and capacity of DWT 180,000 tonnes/berth.
Containers: Draft 11.5 m., depth 12 m.
Passengers: Draft 11.5 m., depth 12 m.
Bulk: Draft 13.5 m., depth 15 m.
Crude: 320,000 d.w.t., LOA 340 m., depth 56 m.
Products: Draft 16.5 m., depth 18 m.
Gas: Draft 16.5 m., depth 18 m.
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Copyright © 2015 EMIS, all rights reserved.
Source:
United Arab Emirates: Port Infrastructure (cont’d)
Ports in the United Arab Emirates
Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com
Port NameUN/
LOCODELocation Overview Maximum size
Emirate of Ras Al Khimah Ports
Saqr Port AEMSA On the Gulf coast in the
north of the country,
60 nautical miles
northeast of Dubai and
40 nautical miles
southwest of the Strait of
Hormuz.
Saqr Port, also known as Mina Saqr, handles large amounts of dry bulk cargo including cement,
aggregates and ores. It consists of 8 bulk-handling berths, 3 container handling berths and 1 general
purpose berth. The port also offers 42,000 sq.m. of covered warehouse, as well as open storage
areas in excess of 84 ha.
LOA 225 m., draft 12 m. Bulk: Depth 12.2 m.
Ras Al Khaimah Khor Port AERKP Close to the entrance of
the Strait of Hormuz, at
the entrance to the Ras
Al Khaimah creek.
RAK Khor Port is a unique city center port that covers approx. 323,858 sq.m. Being a city port that
conforms with the requirements of the local community, it handles mainly general/dry cargo, as well
as transhipment cargo, and the storage and distribution of imports from the GCC, East Africa and
Indian Subcontinent. The port offers 8 berths, including 1 ro-ro berth. It also taps on the increasing
interest in leisure activities in the Northern Emirates, and provides access to a new passenger cruise
terminal.
n/a
Ras Al Khaimah Maritime
City
AERMC Adjacent to Saqr Port Launched in May, 2011, RAK Maritime City operates simultaneously as a port and a free zone. It
occupies an area of 8 sq.km. and has a dedicated harbour covering 820,000 sq.m. of water, and
almost 5 km. of new quay wall with private/exclusive use jetties. The facility offers state-of-the-art
repair and ship maintenance facilities, retail, warehousing and general cargo handling zones as well
as areas for tank storage, industrial production and manufacturing
Harbour entrance approach: Depth 9 m. Berths:
Depth 7 m.
Al Jeer Port AEAJP Located on the Ras Al
Khimah border to the
Musandam, Oman.
The port handles general cargo and livestock but is providing services mainly for sailing yachts, large
luxury yachts and private leisure vessels. It includes a 266-berth marina for commercial and leisure
facilities, 41 covered warehouses (incl. 2 temperature controlled), open storage areas, qurantine
facility, incinerator, etc.
n/a
Al Jazeera Port AEJAZ At the entrance to the
Gulf, on the northwest
coast of Ras Al Khaimah,
UAE.
Al Jazeera Port's main activities are dry docking, ship repairing, marine operations, agency Service,
cargo handling, and warehousing&storage.
The port covers a total area of over 105,000 sq.m., including a Dry Dock and Ship Lifting System
area. Inaugurated in late 2010, this 50,000 sq.m. facility has 12 dry berths – 8 berths are 67.5 m. long
x 30 m. wide and 4 berths are 77.5 m. long x 30 m. wide. Al Jazeera Port offers covered storage
space of 7,000 sq.m., and open storage space of 55,000 sq.m.
LOA 110 m., draft 5.2 m.
Hulaylah Terminal AEHTL In Ras Al Khaimah's
territorial waters, about
6.2 nautical miles from
Mina Saqr.
The terminal handles crude oil transactions. Crude carriers are moored to an IMODCO SPM. Crude: 350,000 d.w.t., LOA 396 m.,
beam 54.86 m., draft 21.33 m., bow to manifold
182.8 m.
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Copyright © 2015 EMIS, all rights reserved.
Source:
United Arab Emirates: Ports Throughput
Container Port Traffic, thou TEU (20 foot equivalent units)
Arriving Vessels at Dubai Ports by Type, 2014
CEIC, World Bank, UNCTAD, Dubai World, Department of Naturalisation & Residency - Dubai
14,4
25
15,1
77
17,5
48
18,1
21
19,3
36
-2.24%
5.21%
15.63%
3.26%6.71%
2009 2010 2011 2012 2013
Container Port Traffic, thou TEU YoY change
6,21
5
934
649
195
14,7
47 22,7
40
0.36%
7.23% 8.53%
-7.58%
10.47%7.15%
Containers General Cargo RORO Passengers Others Total
Number of vessels YoY change
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Source:
United Arab Emirates: Air Transportation Infrastructure
Airports in the United Arab Emirates
Airport Data, Airport Technology, www.worldaerodata.com, www.routesonline.com, - * Passenger throughput includes arrivals and departures and excludes transit passengers.
Airport NameIATA
CodeNear city Terminals and other facilities Runway ID and length Airport Annual Throughput*
Abu Dhabi International Airport AUH Abu Dhabi The airport consists of 3 terminals, 58 gates, and
109 check-in counters. Completed in 2009,
Terminal 3 is the hub of Etihad Airways.
Runway 1: 4,000 m
Runway 2: 4,100 m
Both runways dispose of CAT IIIB
(instrument landing) capability
In 2014: 19.6 mn passengers &
154,821 flights
Dubai International Airport DXB Dubai The airport comprises 3 terminals with Terminal 3
being dedicated for use by Emirates airline only.
Terminal 2 is home to Dubai’s budget airline
flydubai. There are also 257 check-in counters
and 82 gates.
Northern runway: 4,000 m. by 60 m.
Southern runway: 4,500 m. by 60 m.
In 2014: 70 mn passengers, 2.4
mn tonnes of cargo & 357,842
flights
Al Maktoum International Airport DWC Jebel Ali, Dubai The airport comprises one passenger terminal
with capacity of 5 mn passengers per annum
(expandable to 7 mppa) and a cargo terminal
building with a capacity of 1 mn tonnes per
annum. There are also 12 gates.
12/30: 4,500 m. X 60 m. (compatible
with Airbus A380 aircrafts)
In 2014: 845,046 passengers,
758,371 tonnes of cargo &
47,655 flights
Sharjah International Airport SHJ Sharjah The airport consists of one 105,300 sq. m.
passenger terminal and 5 cargo terminals with a
total floor area of 32,000 sq.m. There are also 25
aircraft stands and eight departure gates. SHJ is
the home base of the low-cost carrier Air Arabia.
Runway 1: 4,060 m. X 45 m.
Runway 2: 4,060 m. X 60 m.
(compatible with Airbus A380, Boeing
747-800 and giant freighters like
AN124 and AN225)
In 2014: 8.1 mn passengers,
273,250 tonnes of cargo &
70,559 flights
Ras Al Khaimah International Airport RKT Ras Al Khaimah The airport consists of 2 passenger terminal
buildings (arrivals and departures), and a cargo
terminal facility. The main apron is 115,550 sq.m.
and has 19 aircraft parking positions.
16/34: 3,760 m. X 45 m. In 2012: 339,979 passengers
Fujairah International Airport FJR Fujairah The airport consists of 1 passenger and 1 cargo
terminal. The main apron has 15 aircraft stands.
11/29: 3,750 m x 45 m. In 2014: 2,718 passengers
Al Ain International Airport AAN Al Ain The airport consists of one passenger terminal,
10 check-in counters, and 4 gates.
01/19: 4,000 m. x 45 m. In 2013: 44,107 passengers
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Source:
United Arab Emirates: Investment Climate
FDI
Regime
At present, the Emirati regulatory and legal framework favors local over foreign investors. The UAE maintain non-tariff barriers to investment in the
form of restrictive agency, sponsorship, and distributorship requirements. In order to do business in the UAE outside one of the free zones, a foreign
business in most cases must have a UAE national sponsor, agent or distributor, with at least 51% ownership of the business.
The US Department of State reports that government tendering in UAE is not conducted according to generally accepted international standards, and
re-tendering is the norm. Federal tenders must be accompanied by a bid bond in the form of an unconditional bank guarantee for 5% of the value of
the bid. However, UAE federal government entities can tender internationally since foreign companies sometimes are the only suppliers of specialised
goods or services that are not widely available. Incentives are given to foreign investors in the free zones. Outside the free zones, no incentives are
given, although the ability to purchase property as freehold in certain favored projects in Dubai would appear to be incentives aimed at attracting
foreign investment, as noted by the US Department of State.
Four major laws affect foreign investment in the UAE: the Federal Companies Law, the Commercial Agencies Law, the Federal Industry Law, and the
Government Tenders Law. These laws, especially the Federal Companies Law, are seen as the largest obstacles to foreign direct investment in the
UAE. In addition to the mandatory Emirati major stake in businesses involving foreign partners, these laws stipulate that branch offices of foreign
companies must have a national agent, that distribution of foreign companies’ products in the UAE is only possible through exclusive commercial
agents that are either UAE nationals or companies wholly owned by UAE nationals, that industrial projects must either be managed by a UAE national
or have a board of directors with a majority of UAE nationals, among others.
Right to
Private
Ownership
and
Free Zones
The UAE restricts foreign ownership of land, with rules varying from emirate to emirate. Individual emirate policies allow non-GCC nationals to have
freehold or leasehold rights in designated areas, but as codifying and procedures for title documentation remain to be established, it remains unclear
whether the "freehold" title means the same as it does in Europe or the United States. In December 2010, Abu Dhabi Executive Council (ADEC)
issued Resolution No. 64 of 2010 on Regulations of Property Ownership stipulating that non-UAE natural or juristic persons have the right to own,
buy, sell, rent, mortgage and invest in investment areas. Non-UAE nationals may hold “mustaha” rights for up to 50 years (subject for renewal to a
similar duration) and sign “usufruct” contracts for up to 99 years in properties located inside the investment areas.
The major attraction of the free trade zones (FTZ) is the waiver of the requirement for majority local ownership. Hence, in the free zones, foreigners
may own up to 100% of the equity in an enterprise. In addition, all free zones provide 100% import and export tax exemption, 100% exemption from
commercial levies, 100% repatriation of capital and profits, multi-year leases, assistance in labor recruitment, and advanced infrastructure and
logistic environment including easy access to sea and airports, buildings for lease, and energy connections (often at subsidised prices). Moreover,
the free zone authorities provide significant support services, such as sponsorship, worker housing, dining facilities, and security. According to the
UAE Embassy in UK, there are 21 FTZ around the UAE, the biggest ones among them being Jebel Ali Free Zone, Sharjah Airport Intl Free Zone,
Dubai Airport Free Zone, Dubai Media City, Dubai Internet City, and RAK Free Trade Zone.
US Department of State, June 2014
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Source:
United Arab Emirates: Investment Climate (cont’d)
Tax Rates
and
Access to
Credit
There is no personal income tax in the UAE. Foreign banks, outside of the free zones, pay 20% tax on their profits. Foreign oil companies
with equity in concessions pay taxes and royalties on their proceeds. There are no consumption taxes, and the GCC states formally
implemented a single import tariff of five percent on most goods. Companies located in the numerous "free zones" across the UAE are
exempt from the tariff on imports and re-exports that do not leave the zones. However, some exceptions do exist.
Dubai imposes a rental housing tax on expatriates equaling five percent of the rental charges.
UAE financial system is highly integrated and concentrated, thus remaining exposed to global vulnerabilities. However, in 2013 the IMF has
noted that “the banking system maintains significant capital and liquidity buffers, and non-performing loans may finally have peaked at 8.7
percent in December 2012,” suggesting a significant turnaround in the UAE banking sector’s post-2008-2009 crisis health.
Dispute
Settlement
In 2006 UAE entered effectively the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards. As a result, arbitration awards
issued in the UAE are enforceable in all 138 states that have acceded to the Convention, and any award issued in another member state is directly
enforceable in the UAE. In general, disputes are resolved by direct negotiation and settlement between the parties themselves, by recourse in the
legal system, or arbitration. In order to enforce arbitration judgments rendered in the UAE, a court certification that may take a long time is required.
Commonly, commercial disputes involving foreign parties are heard in the civil courts in the federal system in front of three-judge panel. However,
commercial disputes might also come before the criminal courts, if one of the parties alleges criminal fraud or theft arising from a contractual dispute.
All cases involving banks and financial institutions are required to be heard by civil courts. Interestingly, the Court of Dubai International Financial
Center (DIFC) is also instrumental in commercial disputes resolution. The DIFC Court system operates independently of the UAE legal system on
commercial disputes as part of the DIFC free zone. In October 2011 the Vice President and Prime Minister of the UAE and Ruler of Dubai signed a
law allowing any Dubai-based business to use the English language DIFC Courts to resolve commercial disputes.
Labour
Conditions
The US Department of State reports that around 85% of UAE residents are non-Emiratis and approx. 98% of private sector labour are foreign
workforce. To alter this ratio, the government has set a goal to increase UAE nationals’ participation in the workforce, dubbed “Emiratisation”. As of
December 2010, all private corporations were required to reserve at least 15% of positions for UAE nationals. At banks, Emiratis must comprise at
least 40% of the workforce. The UAE National Human Resource Development and Employment Authority (Tanmia), is the federal body responsible
to foster Emiratisation. In May 2009, the Cabinet approved the establishment of the UAE Emiratisation Council (UEC), which is responsible for
formulating policies and standards to promote Emiratisation and for supporting the development of skills and competitiveness among nationals.
Given Emiratis’ strong preference for public sector employment, in 2013, the UAE Ministry of Labor proposed changes to its labor law to attract more
citizens into the private sector. The changes include proposals to bring private and public sector salaries in line; adjust working hours and days, and
increase the number of private sector holidays.
Visas, residence permits, and work permits are required of all foreigners in the UAE except nationals from GCC countries.
US Department of State, June 2014
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Source:
United Arab Emirates: Government Infrastructure Projects
Air Transport Infrastructure:
Dubai
Airports
Having opened its doors to passengers as recently as 20 months ago, Al Maktoum Intl Airport at Dubai World Center will undergo an
enormous USD 32bn expansion. Once completed, it will turn the facility into the biggest airport in the world. The ambitious project is
spread in two phases over six to eight years. Remarkably, upon completion, the airport will be able to accommodate more than 220
million passengers per annum. The entire development will cover an area of 56 sq km and will include 5 parallel Code F runways of
4.5 km each, 2 terminal facilities on either west and east side of the airport site, 4 concourses, each with 100 wide body aircraft contact
stands and 65 million passengers per annum capacity, a 6 track train system, connecting the airport’s two terminals with its four
concourses, and a massive 8 sq km cargo facility area.
The other airport located near Dubai, Dubai Intl Airport, is also undergoing expansion works. The multiyear USD 7.8 bn expansion
project aims to increase passenger capacity to 90 million people per annum by 2018. Airport facilities that are to be built or undergo
expansion include Terminal 2 (by 2013), and Concourse 4 (by 2015) with total newly constructed area of 675,000 sq m. The project
also foresees expansion of DWC passenger terminal building arrivals (PTB) by 2018. In addition, 30,000 sq m cargo processing
capacity will be added to airport’s cargo mega terminal.
Air Transport Infrastructure:
Abu Dhabi,
Sharjah,
Al Ain
Airports
The Abu Dhabi Airport’s Midfield Terminal is scheduled for completion in July 2017. The almost USD 3bn project comprises theconstruction of 700,000 sq m main terminal building that will be the largest in the Emirate of Abu Dhabi and will have an initial capacityof 27-30 million passengers per annum. It will offer approximately 28,000 sq m of retail and food and beverage outlets. As of May2015, the project is 46% complete. In December 2014, the airport launched operations on its newly renovated southern runway. Giventhe expanded runway, the airport’s annual capacity is expected to reach 500,000 aircraft movements, making it one of the largest two-runway operations in the world. In March 2015, the airport opened recently improved facilities at its Terminal 1, such as new 350 mlong walkways, nine new Code E aircraft stands, 16 new X-ray screening machines with capacity of 2,000 transfer passengers perhour, and new road network.
Sharjah Intl Airport is also set to expand its capacity in order to meet increasing traffic. However, in April 2015 it became clear that theinitially prepared expansion master plan would be revised due to budget cuts. The current project timeline sees capacity lifted from 8.5million passengers per annum in 2013 to 15 million by 2017/2018, and ideally 25 million by 2019. The master plan also proposes theconstruction of a hotel and shopping mall to be built near the airport. As of June 2015 project cost remains unclear.
Finally, Al Ain Intl Airport is also undergoing expansion. By Q1 2017, the airport should double the size of its departure lounge andcheck-in areas, as well as add a new cargo terminal, an in-flight catering facility, more office space and other improvements tooperations.
Journal of Commerce, Airport Technology, Gulf News, Construction Week Online, Airport Data
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Source:
United Arab Emirates: Government Infrastructure Projects (cont’d)
Road
And Port
Infrastructure
A 62 km main road between Abu Dhabi and Dubai, called E311, is expected to be completed by 2017. The USD 545mn project will run
parallel to the existing Abu Dhabi-Dubai (E11) motorway. It aims to ease traffic on the E11 as it is expected to increase from 700
vehicles an hour at peak time now to more than 12,000 vehicles by 2030 as a result of population growth.
A 327 km Mafraq-Ghweifat main road has been rolled out by the department of transport, and is expected to be completed by 2017 as
well. The USD 1.4bn project extends from Mafraq to the international border linking the UAE with Saudi Arabia in Ghweifat. The
finished road will have three lanes in each direction, with the road expanding to four lanes in each direction in the 22km closest to the
borders with Saudi Arabia, from Silaa to Ghweifat.
In the first half of 2015, work has started on USD 130mn contract to build bridges to a new island being built off the coast of the
Jumeirah Beach Residence (JBR) district in Dubai. The project includes a main two-lane bridge stretching 1,400 m, as well as bridges
for a “automated personal rapid transit system” connecting with the Nakheel Harbour & Tower metro station, as reported by Al Arabiya.
In October 2014, Jebel Ali Port opened its third container terminal. Thanks to the USD 850mn facility, the port has increased its
capacity to 15 mn TEUs per annum. However, as of May 2015, the new terminal is not yet completely operational. Once it is fully
online, another 4 mn TEUs will be added to the current capacity.
Railways
And Public
Transport
Infrastructure
UAE’s USD 10.9bn national rail network will be approximately 1,200 km long, extending from the border with Saudi Arabia to the
border with Oman. It will also connect with the GCC network. The project, which is developed and operated by Etihad Rail, is
organised in three phases. Phase one is already completed and comprises a 264 km network at a cost of USD 1.28bn. Phase two is at
its tender stage. It envisages the construction of a 628 km railroad, reaching Mussafah, Khalifa Port and Jebel Ali port. In phase three,
a 279 km of railroad will be built to connect Dubai to the northern regions of the country.
Dubai’s metro network will extend to ensure connectivity to the Expo 2020 site. In April 2015, Sheikh Mohammed bin Rashid al
Maktoum approved a 15 km extension of the Red Line from Nakheel Harbour & Towers to the Expo 2020 site. At the other end of the
line, a 3.5 km one-station has been approved. The project is expected to be tendered in July 2016. Four further lines, the Purple, Gold,
Blue, and Pink ones, have been proposed and are scheduled for completion by 2030. Major public transportation projects in Abu
Dhabi include the construction of 130 km two-way track metro network, and 340 km two-way track tram network.
Al Arabiya, Department of Transport – Abu Dhabi, Abu Dhabi Airports, The National, Etihad Rail, Reuters
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Source:
United Arab Emirates: Biggest Infrastructure Projects
Distribution of Top 10 Biggest Projects by Value
Infrastructure Projects in Top 10 Biggest Projects, Q1 2015
Industry Distribution in Top 10 Biggest Projects
MEED
1 1
4
3
1
Transportation Construction Power Oil Industrial
Number of projects
Project Client Contract Value,
USD mn
Award Year Expected
Completion
Abu Dhabi Airport Expansion: Midfield Terminal Complex Abu Dhabi Airport Company 2,960 2012 2017
Transportation 11.6%
Other industries 88.4%
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V. Main Players
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Source:
Top M&A Deals
Top M&A Deals in the Infrastructure Sector in MENA in 2013 and 2014*
DealWatch , -* NAICS industry classification 234
Date Target Company Deal Type Buyer Country of BuyerDeal Value Stake
USD (mn) (%)
11-Nov-14 Arabtec Holding PJSC Minority stake Aabar Investments PJS UAE 962.7 15.99
purchase (Market estimate)
14-Aug-14 Arabtec Holding PJSC Open market Undisclosed buyer(s) n/a 48 0.95
purchase (Market estimate)
12-Jun-14 Arabtec Holding PJSC Minority stake Undisclosed buyer(s) n/a 160.6 2.75
purchase (DW estimate)
1-Oct-13
Industrialization & Energy Services Co
(TAQA) Minority stake Arab Petroleum Investments Corp Saudi Arabia 45 5.62
purchase (Official data)
30-Sep-13
SETE Energy Saudia for Industrial Projects
Ltd Acquisition Haji Abdullah Alireza and Co (HAACO) Saudi Arabia n/a n/a
18-Jul-13 Petrofac Emirates LLC Acquisition
Nama Development Enterprises; Petrofac
Ltd
UAE; United
Kingdom 70 51.00
(DW estimate)
11-Jul-13 Archirodon Group NV Minority stake Undisclosed buyer(s) n/a 190 40.00
purchase (Official data)
8-Jul-13 Arabtec Holding PJSC SPO Undisclosed buyer(s) n/a 641.1 50.00
(Official data)
30-May-13 Al Musdaq Modern Trading LLC Acquisition Al Fajar Al Alamia Co SAOG Oman 7 99.00
(Official data)
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Source:
M&A Activity, 2013-2014
Number and Value of Deals in MENA’s Transportation Sector
Number of Deals by Deal Type (%)
Number of Deals by Deal Value, USD (%)
Number of Deals by Region of Investors (%)
DealWatch
7
901
45
16148
963
0
1
4
1
0
1 1 1
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014
Total value of deals (USD mn) Number of Deals
Acquisition33.3%
Minority stake purchase
44.4%Open market
purchase11.1%
SPO 11.1%
UAE 33.3%
Saudi Arabia33.3% UK 16.7%
Oman 16.7%
0-50mn; 33.3%
100.1-500mn; 22.2%
500.1-1000; 22.2%
Undisclosed; 11.1%
50.1-100mn; 11.1%
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Source:
Arabtec Holding PJSC
Income Statement (Consolidated, USD mn)
Arabtec Holding PJSC is a United Arab Emirates-based
company that is established in 1975 and acts as a Holding
Company to its subsidiaries, primarily investing in the
construction sector through the acquisition of contracting and
related companies. Listed on the Dubai Financial Market
since 2004, the company is one of the largest heavy
construction players in MENA.
Its projects vary greatly and include offshore and onshore oil
and gas installations, airport development, aircraft
maintenance hangars, passenger terminals, departure
lounges, fuel tank farms, drainage & electrical high and low
voltage, contracting services to residential projects, luxury
villas, hotel interiors, cinema complexes, hypermarket fit
outs, food courts.
The company has organised its operations in the following
business lines:
o High Rise Development
o Residential Development
o Hotels and Hotel Interiors
o Airport Development
o Commercial Development
o Luxury villas
o Stadiums
o Mixed Use Development
o Industry Projects
o Oil & Gas
Balance Sheet (Consolidated, USD mn)
Highlights
Company Data, EMIS Insight
1,54
2
2,00
9 2,66
7
134
193
162
38 103
58
8.7%9.6%
6.1%
2012 2013 2014
Net Revenues EBITDA Net Profit EBITDA margin
2,44
1
3,49
0
3,91
1
912 1,57
1
1,62
5
152
(417
.82)
45
1.14
-2.17
0.28
2012 2013 2014
Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA
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Source:
Arabtec Holding PJSC (cont’d)
Share Price Statement, 2014
Arabtec is a key contractor in some of the largest airport
infrastructure projects in UAE. They include the
construction of:
o Midfield Terminal Building at Abu Dhabi Intl Airport – a
USD 2.9 bn contract awarded to a JV between
Arabtec,TAV and CCC,
o Air Traffic Control Tower at Dubai World Central Intl
Airport (DWC) in 2007-2008 – a USD 40 mn contract,
o Cargo Terminal Building at DWC – a USD 76 mn contract,
o Passenger Terminal at DWC – a USD 26.7 mn contract
awarded to Arabtec/Max Boëgl JV,
o Central Utility Plant at - a USD 7.1 mn contract,
o TD-119 VIP Pavilion & Crew Access Building at Dubai Intl
Airport – a USD 1.9 mn contract,
o Expansion of Terminal 2 at Dubai Intl Airport – a USD 163
mn contract,
o Renovation and expansion of Dubai Intl Airport Terminal 1
– a USD 50.1 mn contract.
Currently Arabtec employs over 40,000 people.
Allocation of Shareholders’ Equity by Geography, 2014
Highlights
Company Data, EMIS Insight
5.26
8.71
4.96
4.32
3.91
4.73
3.513.18
5.03
6.09
4.56
3.61
Q1 Q2 Q3 Q4Highest price, quarter averageLowest price, quarter averageClosing price, quarter average
Local 68%
Arab 17%
GCC 6%
Others 9%
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Source:
Drake & Scull International PJSC
Income Statement (Consolidated, USD mn)
Drake & Scull International PJSC, or DSI, became a
publicly listed company in 2008 when it rolled out its IPO
on the Dubai Financial Market.
The company specialises in mechanical, electrical and
plumbing services along with infrastructure, water and
power and civil construction services.
DSI has streamlined its operations in the following units:
o Drake and Scull Construction offers general construction
services for commercial, industrial, power and water as
well as heavy general contracting projects.
o Drake and Scull Engineering offers engineering (MEP and
Water and Power) services for large scale projects in
aviation, education, mixed use, residential, tourism,
district cooling, hotels, commercial offices and data
centres.
o Drake and Scull Rail offers complete EPC solutions for all
systems and services for stations, depots and tunnels.
o Drake and Scull Oil and Gas offers construction and
construction management contracting services of civil,
piping, equipment, electrical & instrumentation to the
petrochemical industry.
o Drake and Scull Development focuses on public-private
partnerships for large scale infrastructure projects in the
MENA region, South Asia and Europe.
o Passavant Energy and Environment develops
technologies and processes in municipal wastewater,
sludge, water and industrial wastewater treatment.
Balance Sheet (Consolidated, USD mn)
Highlights
Company Data, EMIS Insight
905
1,33
0
1,29
8
60 98 81
26 45 27
6.7%
7.4%
6.2%
2012 2013 2014
Net Revenues EBITDA Net Profit EBITDA margin
1,75
3
1,95
3 2,33
3
755
811
839
188
181 41
8
3.12
1.84
5.18
2012 2013 2014
Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA
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Source:
Drake & Scull International PJSC (cont’d)
Backlog by Business Stream, 2014
DSI has executed mechanical, electrical and plumbing
engineering works on airport infrastructure projects
including:
o International Airport Terminal phase II, Abu Dhabi – UAE,
o Extension for Military Airbase, Dubai – UAE,
o Kai Tak Airport - Hong Kong,
o Phase I Air Cargo Terminals - Hong Kong,
o New Doha International Airport CP15 – Qatar,
o Dar Es Salaam International Airport,Dar Es Salaam –
Tanzania.
• The company has also incorporated HVAC (heating,
ventilation, and air conditioning), smoke ventilation,
general air extraction, fire protection & alarm systems, exit
systems, and electrical distribution systems in railway
infrastructure projects that include:
o Channel Tunnel Rail Link Line Infrastructure - London UK,
o St. Pancras Station Redevelopment -London UK,
o Jubilee Line Extension Project - London, UK.
DSI has established offices in UAE, Saudi Arabia, Kuwait,
Oman, Qatar, Egypt, Jordan, Algeria, Iraq, Thailand,
Vietnam, India, China, Germany, Romania, and Turkey.
Backlog by Geography, 2014
Highlights
Company Data, EMIS Insight
General contracting
42%
Engineering38%
Oil & gas 15%
Water treatment 5%
Saudi Arabia35%
Egypt 18%
Dubai 10%
Jordan 7%
Abu Dhabi 8%
Algeria 6%
Qatar 5%
Kuwait 2%Iraq 1%
Others 8%
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Source:
Combined Group Contracting Co.
Income Statement (Consolidated, USD mn)
Combined Group Contracting Company, or CGC, was
established in 1965 in Kuwait as a limited liability
company. The company became a publicly traded
shareholding company in 2006, when it was listed on the
Kuwait Stock Exchange with a capital of approx. USD
40mn.
The company operates in the construction industry and its
activities include carrying out civil, mechanical and
contracting work, trading of loose and packaged cement,
manufacturing and selling in building materials and related
products.
Through its branches and subsidiaries, CGC is present in
Kuwait, Saudi Arabia, UAE, Qatar, Syria, Iraq, Lebanon
and Oman.
Among the assets owned by the company are a concrete
mixing plant with a production capacity of 160 cubic
meters / hour, asphalt plants with production rate of 440
tonnes/hour, and extensive fleet of earth moving, road
paving and construction equipment, as well as pumping
equipment together with numerous other transportation
vehicles
Currently CGC employs around 10,000 people.
Balance Sheet (Consolidated, USD mn)
Highlights
Company Data, EMIS Insight
847
694
44416
2
114
9392
56 24
19.1%
16.5%
21.0%
2012 2013 2014
Net Revenues EBITDA Net Profit EBITDA margin
1,32
9
1,39
0
1,32
6 838
911
915
69
169
108
0.43
1.48
1.15
2012 2013 2014
Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA
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Source:
Combined Group Contracting Co. (cont’d)
Revenues by Division in 2014, KWD thou
In the Roads & Infrastructure sector, the company has
executed projects in countries like Kuwait, UAE, Qatar,
Indonesia, and Mongolia.
Some of the major road infrastructure projects that CGC
has worked on include:
o Design, construction and completion works on sea bridge
connecting Kuwait City and Subiyah (project still in
progress). CGC’s share of total works on the bridge
amounts to approx. USD 570 mn.
o Infrastructure development of small and medium scale
industrial area in Doha, Qatar. The USD 189.6 mn project
was completed in March 2012.
o Infrastructure development for north residential and west
waterfront areas at Lusail City, Doha, Qatar, The USD
183.2 mn project was completed in January 2013.
o Construction, completion and maintenance of the
interchanges of the main highways (Sixth Ring Road)
connecting to new housing area at South Jahra, Kuwait.
The USD 140.2 mn project was completed in November,
2013.
Revenues by Geography in 2014
Highlights
Company Data, EMIS Insight
52,357
38,486
19,026 17,489
5,532 5,015
1
Construction Highways Water & Electricity
Oil Maintenance & Services Others
Kuwait 66%
Qatar 21%
UAE 13%
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Source:
Galfar Engineering And Contracting SAOG PLC
Income Statement (Consolidated, USD mn)
Founded in 1972, Galfar Engineering & Contracting
SAOG, also known as Galfar, is the largest construction
company in Oman with capabilities in the Oil & Gas,
Roads & Bridges, and Civil & Utilities sectors. It operates
in Oman, and in other GCC countries as well as India.
The company is listed on the Muscat Securities Market.
It offers to its clients various services in the domains of
engineering, procurement, construction, operations &
maintenance, and project management.
Galfar’s Roads & Bridges Unit was established in 1989.
Since then, it has completed the construction/
rehabilitation of over 1,500 km. of roads in Oman. The unit
has a central full-fledged materials testing laboratory for
soil, asphalt and concrete testing in addition to various
site laboratories. It is also self-sufficient in the production
of major road building materials such as aggregates and
asphalt.
Galfar owns 1,134 heavy machines, 794 light machines,
811 miscellaneous machines, 977 electrical machines, 69
stationary plants, 1614 heavy vehicles and 2178 light
vehicles.
It employs more than 23,000 people and is the largest
employer of Omani nationals in the private sector.
Balance Sheet (Consolidated, USD mn)
Highlights
Company Data, EMIS Insight
855 1,
104
969
104
116
88
24 20.1
6
0.44
12.2%
10.5%
9.1%
2012 2013 2014
Net Revenues EBITDA Net Profit EBITDA margin
1,18
7
1,28
4
1,30
6
237
276
267
421 51
3
522
4.034.42
5.95
2012 2013 2014
Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA
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Source:
Galfar Engineering And Contracting SAOG PLC (cont’d)
Segment Results, OMR thou
Some of the major roads & bridges projects that are
already completed include the dualisation of Wadi Adai Al
Amerat Road, Rushtaq-Miskin Road, rehabilitation of
Batinah Highway, and the USD 340 mn value Muscat
Expressway.
Transport infrastructure projects that are currently being
executed by Galfar include:
o Construction of Batina Expressway (Package 1), value of
contract USD 422 mn,
o Development of Salalah International Airport Project,
value of contract USD 236 mn,
o Rasl Al Hadd Airport Development Project (Package 2,
Airfield Development), value of contract USD 104 mn,
o Construction of Hasik - Ash Shuwaymiyah Asphalt Road,
value of contract USD 288 mn,
o Dualisation of Nizwa - Thumrait Road (Izz - Adam
Section), value of contract USD 132 mn,
o Dualisation of Taqah - Mirbat Road, value of contract USD
105 mn,
o Construction of Grade Separated Junctions along Batinah
Highway - Stage 3 (Part 1), value of contract USD 59 mn,
o Procurement and construction of asphalt road in the
Khazzan area, value of contract USD 24.2 mn.
Segment Assets, OMR thou
Highlights
Company Data, EMIS Insight
9,009
1,550 1,083 1,054 107 61 5
(126)(2,620) (2,343)
December, 2013 December, 2014
Construction Manufacturing Hiring of equipment
Training Inter segments
496,539 514,568
4,641 6,387 3,138 2,893 178 133
(8,738) (21,696)December, 2013 December, 2014
Construction Manufacturing Hiring of equipment
Training Inter segments
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Source:
National Marine Dredging Company PSC
Income Statement (Consolidated, USD mn)
Income Statement (Consolidated, USD mn)
The National Marine Dredging Company was established
in 1976 as a sector of Abu Dhabi National Petroleum
Company. It was then established as a shareholding
independent company in 1979. The company is listed on
the Abu Dhabi Securities Exchange.
It is primarily engaged in the execution of dredging
contracts and associated land reclamation works in the
territorial waters of the United Arab Emirates and Qatar.
The dredging and reclamation works, the company’s main
business, comprise capital and maintenance dredging
(inclusive deepening of water passages); artificial island
construction; land reclamation using dredged material;
and creating water channels, intakes and outfalls.
Since 2009, the company has diversified its operations
into marine construction as well. It includes activities like
construction of breakwaters, revetments, groins and
related rock works; concrete armor protection;
construction of gravity quay walls, retaining and
diaphragm walls; boat ramps and slipways; beach
construction and nourishment; and marinas and pontoons.
Balance Sheet (Consolidated, USD mn)
Highlights
Company Data, EMIS Insight
847
694
444
162
114
9392
56 24
19.1%
16.5%
21.0%
2012 2013 2014
Net Revenues EBITDA Net Profit EBITDA margin
1,32
9
1,39
0
1,32
6 838
911
915
69
169
108
0.43
1.48
1.15
2012 2013 2014
Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA
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Source:
National Marine Dredging Company PSC (cont’d)
Growth in 2013 vs. 2010
Among the projects undertaken by the National Marine Dredging
Company are dredging works to construct a “Destination
Village” to host the Volvo Ocean Race in Abu Dhabi in 2011;
dredging works to nourish the beach of Yas Island; rehabilitation
and 2.7 km. extension of the Corniche public beach in Abu
Dhabi; land reclamation on Sir Baniyas Island; dredging and
sand reclamation to create the Nareel Island in 2007; site
preparation works on Al Maryah Island (Abu Dhabi); and
dredging and sand reclamation works to create Al Gurm Island
Resort.
Marine construction projects include dredging the channel and
basin of the Sulphur terminal at Ruwais Port and creation of 20
mn m³ artificial island; dredging a navigation channel at
Ghantoot Harbour; capital and maintenance dredging at berths
14 & 15 at Jebel Ali Port in Dubai; dredging and reclamation for
the new central areas of Fujairah Port, deepening of the then
existing port to a depth of -15 m. and dredging of a complete
new basin to a depth of -18 m.; dredging, reclamation and
marine works for the New Fishing Port at Abu Dhabi (2009-
2011); construction of the Mussafah Channel, Abu Dhabi, (63.5
km. long, 200 m. wide; 9 m. deep); and design and
construction of a private marina (Al Bateen Marina) for the
berthing of yachts with a design depth of – 8.5 m., New Abu
Dhabi Datum.
The company’s fleet consists of cutter suction dredgers (CSD)
with capacity from the small Beaver dredger Jananah (1,795
KW) to the most powerful automated dredger the Al Sadr
(20,725 KW). The dredgers are supported by tugs and multicat
crafts, and A-Frame barges wherever necessary.
Market Capitalisation vs. Equity to Market Value
Highlights
Company Data, EMIS Insight
19%18%
11%
0.29%
1
Revenue growth Fixed assets growth
Equity growth Share price growth
2,27
6
2,08
7
2,27
8
1,95
9
1.05
1.36 1.35
1.70
2006 2007 2008 2009
Market capitalisation, AED mn Equity to market value
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Source:
Appendix
Road Infrastructure Projects, Qatar Road Infrastructure Projects, Saudi Arabia
Ashghal, Doha News, J&P Group, Construction Week Online, Technical Review Middle East, www.roadtraffic-technology.com, Zawya Projects via KFHR
ProjectValue,
USD mn
Expected
Completion Date
Rennovation of Qulaiba-Abu Ajram road 757.0 Q2 2015
Jubail - Al Qassim expressway 97.0 July 2016
Hail - Madina dual carriageway extension 48.0 July 2016
Riyadh Roads - Group 20 48.0 Q1 2017
Abu Hadriyah/ Hafr Al Batin/ Rafha road refurbishment 37.3 H2 2015
Madina to Tabouk expressway road 37.3 Project in progress as
of May 2015
Northern Borders roads rehabilitation 37.1 January 2016
Al Jamjom to Al Zema highway 37.0 2017
Jazan coastal highway extension 37.0 Project in progress as
of May 2015
Yanbu to Al Sharaf roads repair 35.0 December 2015
Al Kharj to Al Gwayiyyah dual carriageway 33.4 July 2016
King Fahed and Rawda road intersection 28.8 Q2 2015
Al Jawf Main Roads - Group 1 27.5 H1 2016
Jazan agricultural roads - Group 26 27.2 July 2016
Madina roads extension - Group 17 24.0 July 2016
Riyadh roads extension 27.2 July 2016
Jazan roads extension 22.5 July 2015
Makkah Road Group 21 22.5 September 2016
Al Kharj to Riyadh/Dammam highway dualisation
diversion 21.5 July 2016
Smaller projects 288.0
(total value)
Projects in progress as
of May 2015
Project
Value,
USD mn
Expected
Completion
Date
New Orbital Highway and Truck route, 145 km
road section 3,760 2017
New Orbital Highway and Truck route , 44 km
road section
Contract to be awarded as of
May 2015
East West Corridor 1,070 2017
Dukhan Highway East, 9.7 km. of dual four-lane
road 1,020 2017
Lusail Expressway, 5.3 km. four-lane highway 962 2017
Rawdat Al Khail Street project, 10 km of new dual
carriageway 632
2016
Al Wakra Bypass, 11 km. of dual five-lane
carriageway 601 2017
North Road enhancements, 95.2 km. of route 594 2016
Dukhan Highway Central, 15 km. of double four-
lane road 385
2016
Al Rayaan Road, Phase 1, 2.9 km. of dual
carriageway 280 2016
Al Rayaan Road, Phase 2, 5.5 km four-lane dual
carriageway, 6 km of side roads and 11 km
associated service roads
944
2017
Local road projects 6,140
(approx. total
cost)
Q2 2016
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Contact:
Corporate Headquarters
6-8 Bouverie Street
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Voice: +44 20 7779 8100
Fax: +44 20 7779 8224
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New York, New York 10003
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Disclaimer:
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of the information. The views expressed are our best judgment as of the date of issue and are subject to change without notice. EMIS and Euromoney Institutional
Investor PLC take no responsibility for decisions made on the basis of these opinions.
Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. A Euromoney Institutional Investor company.
About EMIS Insight
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