Large-scale infrastructure projects in the UAE: How will they benefit businesses and the economy?

• Mega infrastructure projects drive UAE’s economic growth by attracting investments, enhancing connectivity, and fostering innovation.
• The UAE’s transition from oil dependency to a diversified economy is supported by forward-thinking leaders and significant developments.
• The recent appointment of Chief AI Officers and the AI Retreat highlight Dubai’s commitment to advancing AI.

The development of infrastructure projects is crucial for a nation’s economic growth, as it improves connectivity and efficiency, attracts investments, fosters innovation, and generates employment, thus stimulating the overall economy. In the UAE, the remarkably dynamic growth of infrastructure has bolstered its rapid economic development and positioned it as a global business hub. In the last few decades, the nation has transformed from a heavy dependence on oil to a diversified powerhouse, strategically focusing on sectors like tourism, real estate, finance, and technology. This transformation demonstrates the forward-looking leadership in the UAE, which has consistently emphasised infrastructure development as a key driver of national advancement.

The United Arab Emirates has been steered by forward-thinking leaders such as H.H. Mohamed bin Zayed Al Nahyan, the President of the UAE and Ruler of Abu Dhabi, and H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President and Prime Minister of the UAE and Ruler of Dubai. It’s important to recognise the significant impact of the late H.H. Sheikh Khalifa bin Zayed bin Sultan Al Nahyan, the UAE’s second president, whose visionary approach contributed to the country’s progress until his passing in 2022. Indeed, their strategic guidance has laid the foundation for a strong infrastructure that sustains current industries and encourages innovation and entrepreneurship. The UAE’s dedication to establishing a top-notch business environment is evident in large-scale infrastructure projects such as the Palm Jebel Ali and Dubai Universal Blueprint for Artificial Intelligence (DUB.AI), which are crucial for supporting start-ups and small businesses.

In this article, we sum up a few infrastructure projects that we believe are poised to significantly impact the UAE’s business landscape in the coming years.

Palm Jebel Ali

The Palm Jebel Ali, a palm-shaped artificial island, is a highly anticipated infrastructure project in Dubai that is set to enhance its architectural landscape even further. In May 2023, H.H. Sheikh Mohammed bin Rashid Al Maktoum approved the new futuristic development masterplan of the iconic archipelago, which was initially set for completion in 2008.

This project is located approximately 20 kilometres south of Palm Jumeirah and has an expansive area of 13.4 square kilometres. It is set to feature more than 80 hotels, resorts, and various amenities, which will inevitably increase the traffic of tourists. The excitement around this development peaked in September last year when eager homebuyers swiftly purchased the first batch of villas.

Hyperloop Project

The Dubai-Abu Dhabi Hyperloop project is a futuristic transportation initiative that was initially announced by the Roads and Transport Authority (RTA). It is anticipated to revolutionise regional connectivity by reducing travel time between the two cities to just 12 minutes. The fully autonomous system is expected to transport more than 10,000 passengers per hour in both directions, with the number of pods in operation adjusting dynamically to meet demand.

While still in the planning phase, this project is expected to greatly benefit businesses by enabling faster and more efficient transportation of both goods and people.

Etihad Rail

Another transformative project is the Etihad Rail, which aims to connect all seven emirates with a 1,200 km rail network. This project will streamline the transportation of goods across the country and improve connectivity to regional markets, facilitating the expansion of start-ups.

RAK Central

RAK Central is a new mixed-use destination scheduled to open in 2026, designed to promote business and tourism development in the UAE. It will include a Grade-A office space spanning 3 million square feet, over 4,000 residential apartments, three hotels offering more than 1,000 rooms, as well as parks, retail stores, and entertainment venues.

Situated on Sheikh Mohammed bin Salem Al Qasimi Street in the Al Hamra District, the development aims to create a bustling environment that caters to work, living, and recreational needs.

Artificial Intelligence Initiative

In June 2023, Dubai, spearheaded by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai’s Crown Prince and Chairman of The Executive Council and UAE’s Minister of Defence – under the astute guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE’s Vice President and Prime Minister and the Ruler of Dubai – reaffirmed its commitment to innovation as it appointed 22 Chief Artificial Intelligence Officers in various government entities. This decision is part of the annual initiative called DUB.AI, which signals a significant change aimed at boosting the country’s economic growth.

Additionally, the annual AI Retreat, a prominent event in the region’s AI calendar, emphasises the importance of this initiative by bringing together leaders and innovators to shape the future of AI in Dubai. This event showcases Dubai’s dedication to AI and demonstrates the city’s ambition to attract innovative projects and investments.

Looking into the future

The infrastructure projects in the UAE will undoubtedly have a crucial role in influencing the start-up ecosystem and fuelling the upcoming phase of economic expansion. Through investment in advanced technologies and the cultivation of a business-conducive atmosphere, the UAE is establishing itself as a leader in global innovation and entrepreneurship.