Williamstown, MA -- (SBWIRE) -- 12/21/2009 -- In an effort to cushion the blow to their economies governments of the region, including the UAE's, have bolstered investments in infrastructure. In Dubai, Dubai Electricity and Water Authority (DEWA) has embarked on a multi-billion dollar capital expenditure programme, while the government of Abu Dhabi is pushing ahead with its transport master plan. As the dust settles, there is increasing optimism coming from the Gulf region on the momentum behind infrastructure projects, which seems to have been sustained in spite of the global financial turmoil. True, projects have faced delays and sponsors have departed (see, for instance, the case of Concourse 3 at the Dubai Airport), but the speed that infrastructure projects managed to get back on track is noteworthy (after just one month the Concourse 3 project had a new contractor). Therefore, we have significantly revised our outlook this quarter, adopting a more optimistic forecast for industry value growth in 2009 onwards. The investments Abu Dhabi is making in infrastructure, in transport especially, and also ongoing infrastructure investments in Dubai, such as the metro, have not only survived the downturn, but have attracted the attention of international majors, which are seeking a safe haven in the UAE's (and certainly the wider Gulf region's) infrastructure markets. Such investments we believe will grease the wheels of the industry and propel it towards growth in 2009. In BMI's Q309 UAE Infrastructure Report we forecast that the industry value real growth for 2009 will be 6.8%, compared with our previous forecast of 0.9%. As such, we forecast that industry value will reach AED86.7bn (US$23.6bn). A similar level of growth is expected for 2010, with value climbing up to AED95.9bn (US$26.1bn). In addition, the positive effect of lower raw material prices cannot be overestimated. As raw material prices decline, developers in infrastructure and general construction may become more confident about long-term cost estimates, which in 2008 were constantly being revised as prices of steel and cement reached new heights. However, we also stress that most of the developments in the infrastructure sector of late have been overwhelmingly government backed. As such, we maintain our assessment that that government-backed infrastructure spending will sustain the construction sector growth at a time when private investments are expected to decline. We anticipate that bridge loans will become the modus operandi for the majority of the project-financing arrangements as investors take a much more circumspect approach to long-term commitments, at least while uncertainty is the state of play in the global financial markets.

Report Table of Contents:

Executive Summary
- Market Overview
- UAE

Table: A Strong Performance
- Addendum - Dubai: Decoding The Default
- Steel Price Stability Remains Elusive In The UAE
- Cement Glut In The Gulf Coming?
- Global Overview
- Governments To The Rescue: The Global Surge In Infrastructure Spending

Table: Infrastructure Stimulus Plans List, Correct As Of July 2009
- SWOT Analysis
- United Arab Emirates Infrastructure Industry SWOT
- United Arab Emirates Political SWOT
- United Arab Emirates Economic SWOT
- United Arab Emirates Business Environment SWOT
- Major Infrastructure Developments And Key Projects
- Transport Infrastructure Overview
- New And Ongoing Projects
- Airports
- Ports
- Roads
- Railways

Table: UAE Major Infrastructure Projects - Transport
- Energy And Utilities Infrastructure Overview
- New And Ongoing Projects
- Power Plants And Transmission Grids
- Oil And Gas Pipelines
- Water

Table: UAE Major Infrastructure Projects - Energy And Utilities
- Construction Overview
- New And Ongoing Projects
- Residential Construction
- Commercial Construction

Table: UAE Major Infrastructure Projects - Construction
- Industry Forecast Scenario

Table: Economic And Construction Data
- Business Environment
- Middle East Infrastructure Business Environment Ratings

Table: Middle East Infrastructure Business Environment Ratings
- Limits Of Potential Returns
- Risks To Realisation Of Returns
- Project Finance Ratings: Outlook For Middle East

Table: Design And Construction Rating

Table: Commissioning And Operating Rating

Table: Overall Project Finance Rating
- Foreign Direct Investment
- Labour Force
- Legal Framework
- Property Rights
- Macroeconomic Economic Activity
Table: United Arab Emirates - Economic Activity
- Political Outlook
- Company Monitor
- Dutco Balfour Beatty Group
- Al Habtoor Leighton Group
- Veolia Water
- Suez Environnement

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