UAE to pump $234 billion in tourism projects

In the next eight years tourism-related projects will drive the construction industry in the UAE as the Gulf country intends to embark a $234 billion injection in its tourism sector, the UAE-based Emirates Business 24/7 reports.

UAE will account for approximately 86 percent of the total tourism-related projects investment in the region by 2018, explained a study by industry researcher RNCOS.

Abu Dhabi, the country’s capital which has not been substantially affected by the economic downturn will be the center of the construction boom in the UAE, the study said, adding that the reason goes to the government support to boost construction investment in the emirate.

Rising number of tourists

Figures released by the Abu Dhabi Tourism Authority showed that the number of visitors jumped by 16 percent in comparison to the same period last year, translating into a ninth consecutive month of growth for the emirate.

Despite the drop of travel to the UAE during recession, analysts believe that high-profile events such as Formula One will work to boost economic vitality in the country.

"The UAE has one of the fastest growing tourism industries in the Middle East. With the expansion of tourism industry in the past few years, demand for infrastructure and tourism projects has spurred in the country. As a result, several new projects have been announced to tap the opportunity created by the growing demand for hotels and amusement and theme parks," said the study.

"Further, the UAE is expected to invest more than 14 times the investments made by its immediate competitor, Oman, followed by Qatar, Bahrain, Saudi Arabia and Kuwaitm," it added.

Large scale projects by various national and international developers will drive the level of investments in infrastructure and construction activities.

Other factors such as relaxed regulations, rising investments, economic reforms and liberalization have boosted the country’s economy, the study revealed.

In its latest regulation reforms, the UAE watchdog amended brokerage merger regulations including the merger of brokerage companies, as the industry struggles with firm closures amid slumping market volumes.

In a statement, the Securities and Commodities Authority (SCA) said its reconstituted board approved a memo amending certain regulations which calls for "amalgamation" of brokerages in the country to be in the form of either acquisitions or mergers.

Slumping market turnover is forcing some equity brokerages in the United Arab Emirates to cut staff or suspend operations as firms struggle to cope with costs and low revenue.

Further, the UAE is expected to invest more than 14 times the investments made by its immediate competitor, Oman, followed by Qatar, Bahrain, Saudi Arabia and Kuwait