Dubai infrastructure investments result in AED262bn cost savings
The savings period is from 2006 to 2023
The strategic investments made by the Dubai government in road infrastructure and transport networks in the Arab Gulf emirate have resulted in cost savings totalling AED 262 billion from 2006 to 2023, according to Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of Dubai’s Roads and Transport Authority.
The savings, primarily attributed to reduced time and fuel consumption, far exceed the AED140 billion allocated by the Dubai government to develop roads and transport systems during the same period.
At the ninth edition of the Dubai International Project Management Forum (January 15-18, 2024) held in Dubai City, Al Tayer highlighted the Dubai government’s initiatives to reduce traffic congestion and improve transportation efficiency in Dubai emirate.
AED8.9 billion revenues
Al Tayer noted that Dubai’s RTA reported revenues of AED8.9 billion in 2022, emphasising the positive impact of the investments on Dubai’s economy. The developments have led to a significant increase in public and shared transport use, with ridership surging from 95 million in 2006 to nearly half a billion in 2022. This surge has elevated the share of trips made by public transport from 6% to 21.6%, Al Tayer noted.
Dubai government investments have also contributed to a 90% reduction in road accident fatalities, dropping from 21.9 per 100,000 population in 2006 to 1.9 in 2022.
The economic return on investment, measured by the Benefit-Cost Ratio (BCR), is expected to reach AED8.8 for some road projects in Dubai by 2030.
The road infrastructure and transport network projects highlighted by Al Tayer at the 2024 Dubai International Project Management Forum include Dubai Metro, Dubai Tram, Route 2020 of the Dubai Metro, and the Dubai Water Canal.
Al Tayer also addressed the challenges faced during the execution of large-scale projects in Dubai, including changes in supply chains, global competition for resources, and interdisciplinary complexities.
Proactive measures taken by Dubai’s RTA to anticipate challenges include establishing a comprehensive corporate structure for mega projects and incorporating a project management office and a corporate system for value engineering studies.
Al Tayer also discussed the role of technological advancements in mobility projects, highlighting Dubai’s vision for intelligent mobility and the recent demonstration of autonomous vehicles. Plans are underway to deploy 4,000 autonomous cars in Dubai by 2030.
Dubai’s Digital Transformation Strategy 2030, with an allocated budget of AED1.6 billion, aims to lead globally in data-driven digital transformation. Al Tayer emphasised his agency’s commitment to sustainability, with plans to transform the entire fleet of public buses in Dubai to electric and hydrogen-powered buses by 2050.
Reflecting on the changing landscape of transportation services, Al Tayer mentioned the launch of companies to support Dubai’s domestic product and achieve the objectives of the Dubai Economic Agenda. Notable launches include Salik Company, Dubai Taxi Company, and Parkin Company, with IPO subscriptions reaching record-breaking levels.
Featured image: Mattar Al Tayer addresses attendees at the ninth Dubai International Project Management Forum. Image: Dubai’s RTA
Last Updated on 2 days by Middle East News 247