INFRASTRUCTURE

Railways:
0 km

Highways:
total: 4,835 km
paved: 4,835 km
unpaved: 0 km

Waterways:
none

Pipelines:
crude oil 830 km; natural gas, including natural gas liquids, 870 km

Ports and harbors:
'Ajman, Al Fujayrah, Das Island, Khawr Fakkan, Mina' Jabal 'Ali, Mina' Khalid, Mina' Rashid, Mina' Saqr, Mina' Zayid, Umm al Qaywayn

Merchant marine:
total: 56 ships (1,000 GRT or over) totaling 833,401 GRT/1,251,015 DWT
ships by type: cargo 13, chemical tanker 3, container 7, liquefied gas 1, livestock carrier 1, petroleum tanker 25, roll on/roll off 6
note: includes some foreign-owned ships registered here as a flag of convenience: Greece 2, Italy 1, Kuwait 2 (2002 est.)

Airports:
38 (2001)

Airports - with paved runways:
total: 19 22
over 3,047 m: 8 8
2,438 to 3,047 m: 3 3
914 to 1,523 m: 2 3
under 914 m: 4 4 (2001)
1,524 to 2,437 m: 2 4

Airports - with unpaved runways:
total: 19 19
under 914 m: 5 5 (2001)
over 3,047 m: 1 1
2,438 to 3,047 m: 1 1
914 to 1,523 m: 9 9
1,524 to 2,437 m: 3 3

Heliports:
2 (2001)

Telephones - main lines in use:
915,223 (1998)

Telephones - mobile cellular:
1 million (1999)

Telephone system:
general assessment: modern system of microwave radio relay and coaxial cable; key centers are Abu Dhabi and Dubai
domestic: microwave radio relay and coaxial cable
international: satellite earth stations - 3 Intelsat (1 Atlantic Ocean and 2 Indian Ocean) and 1 Arabsat; submarine cables to Qatar, Bahrain, India, and Pakistan; tropospheric scatter to Bahrain; microwave radio relay to Saudi Arabia

Radio broadcast stations:
AM 13, FM 7, shortwave 2 (1998)
Radios:
820,000 (1997)

Television broadcast stations:
15 (1997)
Televisions:
310,000 (1997)

Internet country code:
.ae

Internet Service Providers (ISPs):
1 (2000)

Internet users:
900,000 (2002)

AIRPORTS AND AVIATION

The UAE is particularly well served with international airports, having six in all, located at Abu Dhabi, Al Ain, Dubai, Sharjah, Ras al-Khaimah and Fujairah. The six airports have a total capacity of 16 million passengers a year, servicing more than 125,000 regular and transit flights operated by 100 companies. Whilst all the airports handle both passengers and cargo, the major passenger airports are those of Dubai and Abu Dhabi whilst the largest air-cargo airport is presently that of Sharjah.

In the region of 40 to 45 million passengers a year are expected to use Dubai International Airport by 2006. Between March 1999 and March 2000, 11.2 million passengers passed through the rapidly growing airport. During the same period Dubai transport authority, DNATA, handled 498,000 tonnes of freight. The rate of growth in air cargo handling has been accelerating with the Cargo Village handling 48,764 tonnes in December 1999 as against 40,153 tonnes in December 1998 (21.44 per cent increase).

Buoyed by record sales in October and November 2000, Dubai Duty Free estimated that sales for 2000 reched Dh 810 million, about 22.5 per cent higher than in 1999. 

Plans to expand the Emirates fleet with some of the world's most modern aircraft, originally announced at the IATA meeting in Dubai, were reconfirmed at the Farnborough Air show in Britain when Emirates made aviation history by ordfering the first A3XX super jumbo to be built by Europe's Airbus Industries. The deal was valued at Dh 5.5 billion (US $1.5 billion). Emirates is committed to buy five A3XXs. The airline, seeking to develope Dubai as the main hub airport in the Middle East, also ordered two freighter versions and announced options for five more. Emirates plans to use the A3XXs to cope with the passenger and cargo growth on the trunk routes from its Dubai base, including services to London. Asia-Pacific and North America. The Airbus A3XX can accommodate up to 575 passengers in a three-class configuration. Emirates will receive the first super jumbo in February 2006. 

Aimed at trunk routes, the A3XX has been planned in close partnership with 20 of the world's leading airlines. Airbus claims 15 to 20 per cent better economy per seat and full compatibility with existing airport facilities. 

Meanwhile the third Boeing 777-300, ordered by Emirates airline as part of its expansion programme, arrived in Dubai in September 2000, after a 14 hour and 40 minute trip from Seattle on the west coast of the United States. The Boeing 777-300 is the world's longest aircraft and the largest twin-jet. This latest acquisition is configured in three classes with a total of 380 seats - 18 in first class, 42 in business class and 320 in economy. The B777 is scheduled to be deployed on routes of high demand and operated its first commercial flight to Mumbai on 29 September 2000. The fourth Boeing B777-300s were recently ordered for delivery in 2002 and 2003.

Construction of a new terminal for Emirates airline is scheduled to start in 2002 for completion in 2006 at a cost of Dh 2.8 billion. Meanwhile, new First and Business Class lounges in the new concourse at Dubai International Airport, built at a cost of Dh 16 to Dh 18 million, provide two floors of luxury amenities. The First Class lounge can accmoodate up to 170 passengers and has five guest bedrooms (three double and two single) with showers en suite, television and trouser presses. Separate showers are available on the lower level. A fully equipped Business Centre offers free Internet access. Staff in the lounge can make bookings, issue tickets and boarding cards. A special Skywards service desk enables members of Skywards, Emirates' newly launched Frequent Flyer Programme, to access their accounts. Mothers have special baby-changing facilities at their disposal while staff at the reception desk can supply toys and games to young passengers. The Business Class Lounge can accommodate up to 270 passengers and offers the same amenities as the First Class Lounge. Economy class passengers will continue to use the facilities at the recently opened Marbaha Lounge in addition to the several specially designated areas.
 

Dubai International Airport

Dubai’s Department of Civil Aviation expected around 12 million passengers to travel through Dubai International Airport in the year 2000, 19.3 million in the year 2005 and 31.4 million in the year 2010. A futuristic concourse presently under construction is due to open early in the year 2000 to cater for the increased passenger numbers. Access to the airport has been radically improved and the airport parking area has undergone major restructuring , with space for 1,000 cars and a link to the main terminal by two air-conditioned bridges.
 

Dubai duty free

Dubai Airport Free Zone has been developed as a integral part of the Dubai International Airport Expansion programme. A total land area of 1.2 million square metres has been specifically allocated, and is being developed, for a wide variety of technology driven industries, including retail and light industrial companies, as well as commercial distribution services. Companies with products having high value to low weight ratio will benefit from being located at this innovative Free Zone. Incentives offered to attract regional and international companies to this new facilities include 100 per cent foreign ownership, a corporate tax holiday for up to 15 years (renewable for another 15 years), exemption from import duty and currency restriction, as well as freedom to move capital, including dividends and profits.

As with other special free zones attached to UAE airports and seaports, companies who establish there find themselves on the doorstep of a market comprising 1.4 billion consumers in the Middle East, North Africa, the Indian subcontinent and the newly emerging economies of the CIS countries. All these destinations, and key cities in Europe, are served by direct flights from Dubai International Airport.

The Dubai Airport Free Zone has more than 470,000 square metres of apron space on the airport's north side, with parking bays to simultaneously handle up to 10 Boeing 777 aircraft. It is built around a high quality infrastructure providing digital communications, reliable power and other utilities supporting the needs of sophisticated high technology companies. The development of the Free Zone is seen as a major new step in Dubai's evolution from a distribution hub to a manufacturing centre. In this respect it complements the already established Jebel Ali Free Zone.

Dubai Cargo Village celebrating its ninth anniversary in 2000 by announcing plans for further investment and expansion of the facility. A US $200 million project involves expansion of the dedicated Emirates Sky Cargo terminal to provide a capacity of 325,000 tonnes per year. This is due to open in 2001. In addition, a two-phase development programme for creation of a mega-termilnal was announced. The first phase of this, due to be completed by the year 2002, will be able to handle 600,000 tonnes of cargo per year. It will incorporate an express forwarding and mail centre, which will add a further 50,000 tonnes of cargo per year (catering specifically for worldwide courier and mail industries). Phase Two, due for completion in 2010, will add a further 600,000 tonnes per year of capacity, bringing the total capacity of Dubai Cargo Village to 1.6 million tonnes, based on current global growth trends, especially in the emerging markets of China and Africa.
 

Abu Dhabi International Airport

Abu Dhabi International Airport has, like that of Dubai, been undergoing major developments and is one of the fastest growing airports in the region. Given the fact that it is much further from the city centre than Dubai's airport, the development of a city terminal offering passengers an early check-in facility, along with a multi-carrier Golden Class service, has been particularly popular with passengers travelling out of the capital city. Passengers can now check-in up to 24 hours before their flight departure time. Once they have checked-in, they need only arrive at the airport 35 minutes prior to take-off. This new facility was awarded the Gold Award for best marketing communications in 'The Airports Awards' presented during the Routes '99 conference in Rome.

The overall master plan for expansion of Abu Dhabi International Airport was created in 1998. It set out two phases, the first with an estimated cost of US $200 million in reaching completion, whilst the second, with a cost of US $500 million, is now moving towards implementation. Under phase one, it as has recently completed the construction of two new passenger rotundas. It is intended to construct three more rotundas at the end of the other three pedestrian air bridges so that the total number of pre-boarding lounges will be five in the current building. This element of the development programme increases the passenger service area by 40 per cent. The airport has also been equipped with an Integrated Management System to provide more efficient services in accordance with ISO 9001-2001 for quality management system and ISO 4001 for the environment management system.

The phase-two expansion programme for the airport, with an estimated cost of Dh 1.85 billion, includes a second terminal and new runway, together with a gold course and hotel. Work on the new terminal and runway is due to commence in early 2001 and to be completed in 2004. These facilities will double the airport's capacity to handle traffic.
 

Abu Dhabi Duty Free

Abu Dhabi Duty Free (ADDF) won ‘the best travel retailer in the Middle East’ award for the second consecutive year. ADDF has maintained its growth rate with an 11 per cent increase in revenues for the first quarter of 1999 over the corresponding period of the previous year. In 1998 ADDF had a sales turnover of Dh 296 million, up 12 per cent over 1997.

The new airport satellite will provide an extra 4,000 square meters of retail space, thus dedicating a total of 7,200 square meters for duty-free shopping. The new extension will host 50 branded and 20 specialty boutiques. To date the brand name boutiques and shops introduced by ADDF have been a great success. 
 
 

Al Ain International Airport

Al Ain International Airport, Abu Dhabi's second airport, witnessed a 28 per cent rise in passenger traffic, and a 64 per cent increase in scheduled flights during 1999. This resulted from a focused management team effort on increasing traffic at the airport through promotion of Al Ain as a centre for international exhibitions and conference. Meanwhile ambitious plans have been unveiled by the Abu Dhabi Department of Civil Aviation to increase the use of Al Ain International Airport, enabling it to handle a million passengers annually by 2003. The expansion plans, costing an estimated Dh 220 million, include construction of a 2000-square-metre catering building a 2200-square-metre cargo centre and doubling of the size of the termilnal. This follows a significant increase in the number of airlines and passengers using the airport in 1999. Duty-free revenue generated by Al Ain Duty Free rose 42 per cent last year.
 

Sharjah International Airport

Sharjah International Airport, whose main terminal reflects traditional Islamic architecture, is situated approximately 10 kilometres from Sharjah city centre and is linked by a four-lane highway with Port Khalid, Port Khor Fakkan, and the other emirates. The airport has an annual capacity of over 2.5 million passengers. Cargo handling facilities include four warehouses, each with a 7400 square metres storage space, a separate cargo apron for up to six aircraft, 24-hour customs clearance and free-zone facilities. The airport handles the largest amount of air cargo in the Middle East and is the main air cargo handling centre for Lufthansa Cargo in the region.

The airport's facilities have recently been upgraded. The runway has been extended by 300 metres, allowing 4060 metres for take off. In addition, runway visual range systems have been installed.

Despite a 2.68 per cent dip in aircraft movements for 1999 to 27,577, Sharjah International Airport witnessed a strong 8.53 per cent surge in freight handled (580,550 tonnes). Freight volumes have shown a steady increase over recent years.

The airport has recently contructed a dedicated freight centre with five container terminals to handle the steadily increasing volumes of cargo coming through its portals. Sea-air cargo also rose 3.8 per cent to 49,128 tonnes in 1999. Passenger movements through the terminal rose 3.17 per cent to 1,001,852, the first time the figure has exceeded one million.

A newly established airline, Air Gulf Falcon, headquartered at Sharjah International Airport Free Zone, provides aircraft on lease, on ACMI (Aircraft, Crew, Maintenance and Insurance) to airlines, VIP flights, charter and cargo services. It provides scheduled, charter passenger and cargo air services in diverse international markets. The airline's principal business strategy is to provide airline service in markets where a low operating cost structure permits profitable operation, while providing quality passenger and on-time cargo performance. It operates an all-Boeing fleet; currently with six B747-100/200/SP, two B707 freighters and has recently added a number of Boeing 727-2000 ADV and Boeing 737 ADV. Additional aircraft are scheduled for delivery in 2001 at a cost of US $400 milllion.
 

Ras al-Khaimah Airport

Ras al-Khaimah airport has also been going through a busy period with a 64 per cent increase in traffic over the first eight months of 2000 and a 10 per cent increase in cargo, compared to the same period of 1999. The airport handled 3127 passenger and cargo planes during this period.

Despite these developments there is considerable competition between the UAE's airports, both for passenger and cargo traffic, and discussions ae continuing between airport authorities on how best to cooperative while developing both the market and facilities so that all sides benefit.
 
 
 

SEAPORTS AND SHIPPING

The UAE, with almost 800 kilometres of coastline bordering both the Gulf and the Indian Ocean, has 15 commercial ports with a capacity of 70 million tonnes, as well as many smaller fishing harbours. The main shipping ports are located at Port Zayed in Abu Dhabi; Jebel Ali and Port Rashid in Dubai; Port Khalid and Khor Fakkan Port in Sharjah; the Port of Fujairah; and smaller seaports at Ajman; Ras al-Khaimah; Fujairah; and Umm al-Qaiwain.

Free zones, associated with these ports to a greater or lesser extent, are present at Jabel Ali in Dubai; Hamriyah Free Zone in Sharjah; Ahmed bin Rashid Free Zone in Umm al-Qaiwain; The Ajman Free Zone; the Fujairah Free Zone; and the Ras al-Khaimah Free Zone. The Saadiyat Free Zone in Abu Dhabi is presently under constitution on Saadiyat Island, close to the capital city. Other free zones are more closely associated with several airports in the country.

Located centrally on the Gulf coast of the United Arab Emirates, Port Zayed (Mina Zayed), the capital port of UAE comprises 21 berths in a sheltered harbour. The marine port (managed by the Abu Dhabi Seaport Authority, ADSA) had another year of robust growth in 1999, with total throughput increasing by over 6.8 per cent to 4.7 million tonnes. Preliminary figures indicate that container traffic rose by 9.5 per cent in 1999, to reach around 350,000 TEUs, compared to 319,578 TEUs in 1998. General cargo is said to have hit the three million-tonnes. These figures suggest that Mina Zayed has enjoyed a 47 per cent growth in cargo traffic over the last two years. A new container terminal will be built on the eastern side of Port Zayed by 2013.

Two new container cargo berths have been brought into service, along with two extra gantries, increasing the number at Mina Zayed to seven. Addition of four new straddle carriers boosted theilr total to ten. Meanwhile, a master plan for Port Zayed envisages a US $765 million investment over a 15-year period, boosting handling capacity at the port to 600,000 TEUs and 3.5 million tonnes of general cargo per year by 2013. The carefully structured plan calls for a total of 11 ship-to-shore cranes to be operational by 2006 and the addition of a second four-berth container terminal operational on the eastern side of Port Zayed by 2013. A New 15,000-tonne capacity cold store was completed in 1999, replacing the existing 5000-tonne facility that had been operating since 1994. ADSA is also developing cargo handling facilities at the new Mussafah industrial zone, 25 kilometres south of Mina Zayed.

Mina Zayed has recorded major growth in tonnage handled, almost tripling between 1997 when 1.1 million tonnes were handled, to 1999 when the figure was close to three million tons. The number of ships using the port also increased, from 2154 in 1997 to 2613 in 1999. The development plan will provide a new container terminal, deepening of the channel to 15 metres, establishing two new industrial ports, and building new storage areas. Warehouse operations have been completely computerised, so that customers can have access to the cargo data.

In November 1999, Sheikh Saeed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Seaports Authority, announced the establishment of Abu Dhabi Containers Limited (ADCL), a container shipping company with a capital of US $400 million (Dh 1.50 billion). The new company, jointly owned by the Abu Dhabi Investment Company (ADIC), and the NorAsia Shipping Company Ltd, has acquired ten sophisticated express container ships. The company is headquartered in Abu Dhabi and uses Mina Zayed's facilities as a main hub for distribution to the UAE and Arabian Gulf countries.

The Dubai Port Authority (DPA), which manages both Port Rashid and Jebel Ali Port, has turned Dubai into a major trans-shipment centre, serving more than 125 shipping lines and ranking amongst the top container ports of the world. In 1999, it handled 2.84 million TEU's, an increase of 16 per cent on the previous year's figure. The two terminals of Jebel Ali and Port Rashid handled 11,711 vessels including 5058 container vessels. The total tonnage handled rose to 39 million tonnes, up 8 per cent over 1998.

The DPA has invested in the most technically advanced cranes in the world and operates a forward-looking policy aimed at ensuring it keeps pace with developments and can handle the largest vessels and a steadily increasing international container traffic. Working with the shipping community and related government departments, DPA has developed its own Electronic Data Interchange (EDI) system that is part of an ambitious plan for paperless cargo clearance in the near future 

DPA, whose facilities have ISO 9002 certification, was named best seaport in the Middle East for the fifth consecutive year in 1999, and best container terminal operator in the region. Some 50 per cent of container cargo passing through Port Rashid and Jebel Ali terminals is now destined for Dubai whilst the rest is trans-shipped regionally.

The only natural deepwater port in the Middle East, Khor Fakkan Container Terminal (KCT), is located on the East Coast of the UAE, close to the main east-west shipping routes and outside the Straits of Hormuz. A modern dual carriageway connects (KCT - which now has a potential throughput of over 1.5 million TEUs annually - with the dynamic commercial and industrial markets on the UAE's Gulf coast. The Sharjah owned facility been under constant development in recent years, and it has become an important trans-shipment port for the UAE and other countries in the region. The ultra modern ontainer terminal now has 1060 metres of berths, dredged to a depth of 15 metres alongside at MLW. The enlarged turning circle and seaward approaches have also been dredged to a similar depth. The terminal now has eight ship-to-shore gantries including four Panamax, two Post panamax, and two Super Post Panamax cranes. These are the largest in the region and capable of handling vessels stowed with 18 containers running across the ship. On the landward slide, container stacks in KCT's 300,000 square metres plus storage areas can now accommodate 18,000 TEUs. Four original rail mounted yard gantries, six rubber tyred gantries (RTGs), and four enhanced specification Liebherr RTGs are used for handling the containers.

Port Khalid, adjacent to Sharjah city, handles the majority of Sharjah's general cargo, using the latest in cargo handling machinery. Its 13-berth deewater harbour is capable of managing vessels of varying draughts. Storage facilities include two berth-side cold stores that can handle up to 5000 tons at any given time. Over 40 per cent of the UAE's manufacturing enterprises are located in Sharjah so the port also serves these. Port Khalid also has a passenger terminal facility which, prior to Dubai's recently announced passenger terminal, was the only one in the UAE. 

Situated on Sharjah's Arabian Gulf coast, the terminal's 586 metre quay has a minimum depth alongside of 11.5 metres at MLW and is able to accommodate two third generation container ships simultaneously or two roll-on roll-off vessels. Covering over 150,000 square metres the terminal provides storage for 8000 TEUs and there is a 9300 square metre dedicated transit shed and storage area as well as a 100 tons capacity weighbridge. Ship work is handled 24 hours a day, seven days a week, by two Liebherr T115, 35 tons capacity gantry cranes. The port's equipment inventory includes 30 tons capacity Transtainers, 40 tons SWL top loading forklifts plus a full range of smaller forklifts, flatbeds, skeletal trailers, tractors and other ancillary equipment.

Container handling through Sharjah's two main ports passed the one million TEU mark for the first time last year to scale a new record of 1.079 million TEU, up a sharp 24.97 per cent over 1998. Both Khor Fakkan and Sharjah container terminals recorded dual-digit growth. KCT recorded a 26.35 per cent rise in throughput to 989,028 TEU, while Mina Khalid saw a rise of 12.43 per cent to 90,140 TEU.

A new development for Sharjah Seaports Authority (SPA) came during the year, when it announced that is was taking over the management of the LPG terminal at the Hamriyah port which until recently had been operated by Lamnalco Sharjah for BP Amoco. SPA is also in the process of expanding the facilities at the Hamriyah Port by adding more berths as part of a larger expansion of the facilities of Sharjah ports. The port authority is now promoting three ports, i.e. Sharjah, Hamriyah and Khor Fakkan.

Competition between the regional ports is increasingly intense because of the significant improvements in all themain ports.
 

ELECTRICITY AND WATER

Production and supply of electricity and water is at the very core of the UAE's development process. Whilst it has low cost energy, in the form of oil and gas, it has very limited natural reserves of fresh water and must, at the present time at least, provide all of its electricity through turbine generation. This is a sector where demands are constantly increasing, both as a result of population increase and with the rapid pace of industrial development. AT the end of 1999, the total installed electrical capacity exceeded 8000 MW. However, it has been estimated that the UAE will require 10,400 MW of electricity by 2010. Meanwhile a study published by the Emirates Centre for Strategic Studies and Research (ECSSR) recently reported that the UAE has the second highest per capital consumption of water in the world, after the United States. Consumption per head of population in the UAE varies between 100 and 120 gallons per day - very high in view of the shortage of water resurces in the country.

1999-2000 has seen a tremendous focus, both by government and the corporate sector, on water and electricity. Nowhere has this been more apparent than in Abu Dhabi where the landmark initiative to restructure and privatise the sector has already started to show dividends in terms of production efficiency. Transfer of control to the newly established Abu Dhabi Water and Electricity Authority (ADWEA), the introduction of private sector participation and the establishment of independent regulation have all played their role in stimulating the essential growth of the sector. ADWEA is a public corporation, fully owned by the Abu Dhabi Government, and has financial and administrative independence as a corporate entity. The body was established under Law No. 2 in 1998 and is run by a nine-member board of directors.

By 1999, generation and desalination capacity had reached 3586 MW and 224 mgpd respectively, an annual average growth rate of over 14 per cent since 1970. Growth in peak electricity demand averaged 14.4 per cent each year since 1973 and in the past ten years peak demand increased from 1524 MW in 1989 to 2908 MW in 1990. Production of desalinated water reached 70,905 mg in 1999, an increase of 6.2 per cent over 1998, despite the absence of any new desalination plants commissioned during the year. The demand for water has hostorically grown at a slightly faster rate than than of electricity. The quality of potable water delivered to customers is generally considered to be satisfactory. Accurately forecasting fugure demand levels for Abu Dhabi's water and electricity is far from straightforward since high levels of underlying growth in demand for these utilities is driven by varying levels of social, demographic and economic development.

Strategic planning to solve these challenges involves partial privatisation of the sector and the creation of a Federal Electricity and Water Authority (FEWA) by the Ministry of Electricity and Water. Four main authorities are being set up to independently plan power generation and distribution systems in order to meet the currently projected shortfall in power generation. The Federal Government expected to spend around Dh 500 million (US $136 million) on power projects in 2000. FEWA has taken responsibility for the electricity and water utilities in the Northern Emirates.

Discussions were held by FEWA in October 2000, concerning budgetary requirements for the next five years. A total expenditure of Dh 1.563 million was proposed; of which the authority sought Dh 137 million for 2001 together with Dh 171 million for already existing projects. The new projects incloude one to increase the generating capacity a a cost of Dh 800 million, projects for transferring poor (DH 300 million), projects for distributing power (Dh 242 million), projects for producing water (Dh 140 million), projects for storing and transporting water (Dh 35 million), projects for distributing water (Dh 25 million), and a sum of Dh 40 million for buildings.

Three major privatised power/desalination projects are under way in Abu Dhabi. These comprise semi-private power/water plants at Shuweihat, 250 kilometres west of Abu Dhabi city; and two at Taweelah. The Emirate of Abu Dhabi took the lead in privatisation of water and electricity supply with its approval for a US $750 million power and desalination project - the Taweelah A2 plant. The US company, CMS Energy, responsible for construction of the facility has a 40 per cent stake in the plant, together with ADWEA's Emirates Power Company, which holds the remaining 60 per cent.

Meanwhile the Tawellah A1 power station is being upgraded as a result of another build-own-operate (BOO) basis privatisation scheme whereby French oil conglomerate Total-Fina-Elf and the Tractebel energy arm of Suez Lyonnaise de Eaux acquired 40 per cent of the power and desalination plant. The US $1.5 billion project involves the plant's electricity generation capacity being expanded to 1350 megawatts from 225; and its seawater desalination capacity being boosted to around 380,000 cubic metres per day from a previous figure of 130,000. Taweelah A1 is an independent water and power project like Taweelah A2.

The Shuweihat-1 Independent Water and Power project (IWPP) is the largest IWPP planned by Abu Dhabi as part of its privatisation scheme. The first phase of the development expected to cost US $1.5 billion, will have a generating capacity of 1500 MW and 100 million gallons of desalinated water per day. The second phase is expected to double the electricity generation capacity.

The fourth independent power and water project, a Dh 1 billion desalination and power plant with a capacity of 100 mgpd, is planned for Fujairah. Construction will commence in March 2001 with completion scheduled for 2003. The plant will be built adjacent to the existing desalination and power plant in Qidfa. A 180-kilometre pipeline to transport water from Fujairah to Al Ain will also be constructed as part of the project. About 60 per cent of the water produced will go to Al Ain while the balance of 40 per cent is for the Northern Emirates.

In February 2000 the Federal National Council put forward a set of recommendations aimed at improving the quality of public services rendered by the Ministry of Electricity and Water. Drawing attention to the need for increased investment in provision of electricity and water, the FNC document suggested an increase in the national budget and a programme of modernisation. The ministry's budget for 1999 stood at Dh 11 billion. Responding to the FNC study, the Minister of Electricity and Water unveiled schemes for power and desalination plants that would not only help to meet the demand for more electricity, but would also increased the portion of domestic fresh water produced by desalination plants to 30 per cent, from a previous level of 10 per cent.

Abu Dhabi Municipality's fast-track construction programme for water desalination plants, announced mid year, aims at producing an additional 100 million gallons of desalinated water per day in Abu Dhabi by early 2001. The bulk of this output, 60 million gallons/day, is to come from a new plant being constructed at Umm al-Nar. The balance will be produced by several smaller, 10 million gallon/day, desalination plants.

An example of what is happening within this sector is provided by the figures for Sharjah, made available by the Sharjah Electricity and Water Authority (SEWA). This body spent 6.19 fils to produce each kilowatt-hour of power it generated in 1999, as against 6.09 fils in 1998, and 6.11 fils in 1997. The authority ascribed the higher cost of power generation to the 10.3 per cent rise in the cost of fuel. Fuels employed included natural gas, heavy fuel oil and light fuel oil; however SEWA is increasing the gas component in power generation. Data issued by SEWA in its annual statistical book also showed electricity generated last year increased 8.4 per cent to 4,445.79 million kWh, which came on top of a sharp 18.88 per cent jump in 1998 to 4101.4 million kWh. The power sent out from SEWA's stations to the transmission and distribution network rose 4.99 per cent to 3982.14 million kWh in 1999, after surging 20.04 per cent to 3792.85 million kWh in 1998. Power consumed as monitored through meter readings increased 5.96 per cent to 3458.93 million kWh in 1999, following a 21.88 per cent increase to 3264,33 million kWh the previous year. In order to constantly increase its generation capacity to keep ahead of demand, the authority is currently undertaking anumber of major developments.

SEWA recently completed the second phase of its Layyah desalination expansioin project at a cost of Dh 165 million. Two multi-effect desalination units, each with a capacity of 5 million gallons per day, were commissioned in 2000. The project is in three phases and aims to boost the plant's capacity from 22 mgpd to 42 mgpd at a total cost of Dh 700 million. The first phase, opened at the end of 1998, involved the erection of a 5 mgpd desalination unit for Dh 249 million. The Layyah expansion forms part of SEWA's ongoing development programme seeking to increase water supply volumes and power generation to stay ahead of demand projections.

Other projects being undertaken, or recently completed in Sharjah include desalination and power generation plants at Saja's and Wasit, and laying of new water trunk mains pipelines. SEWA also installed a third desalination unit (capacity 16,000 gdp) on the island of Abu Musa, boosting the station's capacity to 70,000 gpd. Other desalination plant installations were carried out at Hamriyah and at Kalba, while a 3 mgpd water wells complex was inaugurated at Al Kadharah. SEWA's average water production in 1999 increased by 11.84 per cent to 55.35 mgpd, with 28.86 mgpd coming from groundwater resources and 26.49 mgpd being desalinated.

Not all of the focus has been desalination, however important that might be. In May 2000 HH Sheikh Mansour bin Zayed Al Nahyan, Director General of the President's Office, inaugranted the Ash Shweib groundwater well field. The underground water source was discovered by a consortium of Abu Dhabi National Oil Company (ADNOC) and two German companies, Daimler Chrysler Aerospace Dornier System Consult (DASA) and Gesellschaft Technische Zusammenarbeit (GTZ) and Daimler Chrysler Aerospace dornier System Consult (DASA). The consortium was set up in 1995 as part of the Abu Dhabi Groundwater Assessment Project ordered by Sheikh Zayed.The flow-rate from the main freshwater well was 2.5 million gallons per day. The field contains 21 wells, producing 127 million gallons per day. The consortium is carrying out further exploration for underground water reservoirs in the Liwa area. Around 100 to 150 wells have been drilled so far.

The UAE has been calling for some time for more research into alternative sources of energy, particularly solar energy. In this context, the World Renewable Energy Congress (WREN) is scheduled to hold a Solar Energy Conference in Sharjah in February 2001. The conference will bring together scientists and technologists from the Arab world and abroad to discuss views or renewable energy for the Arab world. The meeting will seek to identify the most feasible and cost effective applications of both technologies, and methods of implementing them, in developing countries, particularly in the Middle East. One of the main objectives of the conference will be to promote solar energy resources and applications for the UAE.

Another vital element in the UAE's water conservation policy is the construction and management of dams. A recent proposal by the Ministry of Agriculture and Fisheries involves the construction of 25 new dams. The Government feels that building new dams and maintaining the old ones, as well as setting up new modern irrigation systems, will help to solve and avoid drought problems increasingly faced by UAE farmers.
 
 

TELECOMMUNICATIONS

Among the many milestones in the UAE's rapid development, the year 2000 brought one unique event that stands out in terms of its impact on communications in the region. The launkch of the Thuraya satellite on 21 October will change the face of telecommunications in Arabia and further afield. The UAE is the leading partner in this exciting new venture - a private joint stock company established in the UAE in January 1997 with an initialcapital base of US $25 million. This was increased to US $500 million in August of 1997 as the list of shareholders grew. In December 1998, Thuraya appointed a consortium of four banks to underwrite a loan of US $600 million for the remainder of the project cost.

Thuraya will offer cost-effective satellite-based mobile telephone services to nearly one third of the globe. It's US $1.1 billion regional mobile (GMPCS) system will help meet the need for affordable mobile phone services to urban hubs as well as remote communities.

Thuraya will provide blanket coverage to 99 countries in Europe, the Middle East, North and Central Africa, the Indian subcontinent and Central Asia: a landmass inhabited by an estimated 2.3 billion people.

Subscribers will access Thuraya's mobile satellite system through service providers, who will either be national GSM network companies or local telecom operators. Thuraya will, in fact, complement national GSM networks, allowing subscribers to remain connected to their national mobile networks, and to access Thuraya's system whenever their preferred national network is out of reach.

Thuraya will offer satellite, location determination system (GPS) and cellular (GSM) service in a single dual mode handset which will also have voice, data, fax and short messaging services.

The turnkey project has been constructed by US satellite manufacturer Hughes, and Thuraya's first satellite was successfully launched on 21 October 2000. Designed for a lifespan of 12 to 15 years. Thuraya's satellite is in geo-synchronous orbit, positioned 36,000 kilometres above the earth, at 44 degrees east above the equator. The Thuraya system includes a spare ground satellite that may be launched later as a back up and a third that could be used to expand system capacity.

The Primary Gateway, in Sharjah, will serve the entire coverage area, and plans are underway to establish additional national gateways at other locations as necessary.

The field of telecommunications has expanded at what seems like lightning speed over the past decade. The UAE is one of the most progressive countries worldwide in terms of its application of telecommunications technology. As a result, UAE customers have access to the highest quality services in the region. In the case of the Internet, which is taking an increasing slice of telecommunications usage, a recent survey by Internet Arab World stated that Etisalat offers the lowest prices to consumers of any regional internet services provider (ISP) with rates that follow closely behind those in the USa.

Meanwhile, a survey in The Economist stated that the UAE ranks eighteenth in the world in terms of Internet access services. UAE industry commentators responded to the survey with the comment that they expect UAE to reach a position within the top ten within two years.

The UAe is also the second most connected country in the Middle East. At the end of September 2000 the number of Internet subscribers had reached the 200,000 mark compared to just 2503 subscribers in 1995, the year when Internet services were launched in the country. The total number of Internet subscribers rose from around 66,500 in 1998 to nearly 128,000 in 1999, a growth rate of 90 per cent. According to official projections, some 64 per cent of the UAE population will access the Internet by 2002.

Mobile phones represented the strongest growth for ETISALAT in 1999, registering a 74 per cent increase over the previous year. The number of GSM subscribers was 830,000 and the GSM penetration rate 31 customers per 100 inhabitants, which is amont the 10 highest in the world. The number of GSM subscribers had reached 1.17 million by the end of September 2000 as against 30,000 subscribers in 1994, the year that saw the launch of the system. The UAE now has roaming agreements with 77 countries.

The number of working telephone lines in the country has increased from 36.000 lines in 1976 against an installed capacity of 50,000 lines to 1 million lines at the end of September 2000 against an installed capacity of 1.3 million lines. There are at present 40 telephone lines for every 100 inhabitants in the UAE, the highest penetration rate in the world. The number of telephone exchanges in the country has increased from 28 in 1976 to 244.

Available international circuits at the end of September stood at 20,207 compared to only 340 in 1976. Local circuits have reached 209,675 against 302 in 1976. All telephone exchanges have been developed to advanced digital technology and international and local communication lines have been upgraded by a fibre optics network.
 
 

HOUSING

Abu Dhabi owes much of its landmark urban development to efforts by the Department of Social Services and Commercial Buildings (also known as the Khalifa Committee). Established in 1981 by HH Sheikh Khalifa bin Zayed Al Nahyan, the Department has played, and still is playing, a leading role in Abu Dhabi's impressive development drive. The Department has undertaken projects at a total cost of more than Dh 30 billion since its inception. So far, over 6000 projects have been completed, providing about 90,000 housing units. By carrying out major projects with the help of Arab and international firms and utilising the latest architectural technology, the Department has actually become the backbone of the local construction industry and a major player in completing a modern infrastructure in the emirate. 

The Department is currently undertaking 353 projects at a total cost of Dh 4.1 billion, and another 533 pojects are under study. It works with a number of local housing and construction related bodies to build modern cities and provide decent accommodation for citizens.

The Zayed Housing Project, which received Dh 640 million of the federal budget of Dh 929.7 million in 1999, has traditionally granted housing loans to ow income nationals who earn less than Dh 10,000 a month. A new scheme covers those who can repay over a 25-year period. For example, a national on a monthly salary of Dh 9000 who takes out a Dh 450,000 loan from the Project has monthly instalments of Dh 1550. Alternatively, one who is paid Dh 8000 a month and who is granted a loan of Dh 400,000 will pay a monthly instalment of Dh 1350. The flexible approach aims at helping applicants, particularly the low income ones, to benefit from the programme. Care is taken to ensure that the loan scheme is not a burden for beneficiaries. Funds are provided to applicants so that they may build houses.