Abu Dhabi, the oil-rich sheikhdom that’s transforming itself into a business and cultural hub, plans to resume suspended real-estate projects including branches of the Louvre and Guggenheim museums after reviewing their viability, the government said.
The largest and wealthiest of United Arab Emirates’ seven sheikhdoms also approved new investments in housing, health and education, according to a statement posted on the Executive Council’s website. No cost was given.
Abu Dhabi’s plans to revamp its economy ran into hurdles after the economic crisis caused home prices to drop by 45 percent and made neighboring Dubai the region’s worst-performing property market with a 65 percent price decline. At least $30bn worth of projects were put on hold in Abu Dhabi while the government conducted the review.
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“This can only be a positive, namely for the contractors that are established and active in Abu Dhabi,” said Mohammad Kamal, a Dubai-based analyst at Arqaam Capital. “It’s also a macroeconomic driver for growth, employment, spending and bank lending.”
Budgets and opening dates were approved for museum projects in the cultural district of Sadiyat Island, including the Zayed National Museum, and franchises of the Louvre and Guggenheim branches. Other projects include the construction and redesign of the Al Ain National Museum and the cultural Hilli site.
The Executive Council yesterday approved the building of 13,150 homes for UAE citizens in North Al Wathba, it said. Another 7,608 villas are expected to be completed this year and delivered to the government, the statement said.
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