UAE Infrastructure Projects Not Delayed By Oil Price Fall
The UAE has sufficient funding for all its planned infrastructure projects, says the Minister of Public Works
Infrastructure projects in the United Arab Emirates will continue as planned despite the drop in Crude Oil prices, a senior minister said Monday.
Speaking on the sidelines of a conference in Dubai, minister of Public Works Abdullah Al Nuaimi said that the country is not facing any problems with funding.
“There are no foreseen delays in infrastructure projects in the UAE because all the projects are already budgeted,” he said.
“As far as planning (for infrastructure projects) goes, we are in a steady pace and our planning has not changed as yet.
“Regarding our future plans, we will be looking at how oil prices might affect us,” he added.
Crude Oil prices have almost halved since June Y 2014 to around $50 bbl now.
Although the Gulf countries have dismissed any immediate effects of the Crude Oil price decline on their economies, analysts say that the impact might only be felt in the medium term.
The total value of projects awarded in the Gulf region climbed to above $40-B in Q-1 of this year, up 9.9% from the previous Quarter, an earlier report by Abu Dhabi Commercial Bank found.
However, the slump in Crude Oil prices is slowing new economic projects in Saudi Arabia and the UAE, it added.
Project awards in the UAE fell 35.6% in Q-1 to their lowest level since the beginning of Y 2013.
Looking ahead “much will depend on the recovery of the Crude Oil price,” the bank said.
“Private corporate investors are generally taking a more wait-and-see approach to projects than governments are.”
| HeffX-LTN Analysis for OIL: | Overall | Short | Intermediate | Long |
| Neutral (0.02) | Bullish (0.34) | Neutral (0.19) | Bearish (-0.46) |
By Mary Sophia
Paul Ebeling, Editor
HeffX-LTN
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