UAE infrastructure projects not delayed by oil price drop – minister

Infrastructure projects in the United Arab Emirates will continue as planned despite the drop in oil prices, a senior minister has said.

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 (due to the oil price fall) 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.

Oil prices have almost halved since June last year to around $50 per barrel at present.

Although the Gulf countries have dismissed any immediate effects of the oil price drop on their economies, analysts say that the impact might only be visible in the medium term.

The total value of projects awarded in the Gulf region climbed to above $40bn in the first quarter of this year, up 9.9 per cent from the previous quarter, an earlier report by Abu Dhabi Commercial Bank found.

However, the slump in oil prices is slowing new economic projects in Saudi Arabia and the UAE, it added.

Project awards in the UAE fell 35.6 per cent in the first quarter to their lowest level since the beginning of 2013.

Looking ahead “much will depend on the recovery of the oil price,” the bank said.

“Private corporate investors are generally taking a more wait-and-see approach to projects than governments are.”