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DUBAI / WAM
Dubai Roads and Transport Authority (RTA) has carried out a comprehensive study on the Economic Impact of the Dubai Metro Project, including both its Red and Green Lines, in collaboration with Henley Business School, University of Reading, one of the longest-established universities in the UK. The study analysed the direct and indirect economic benefits of the Metro and calculated the internationally recognised economic indicators in this regard including the Benefit-Cost Ratio.
Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of RTA, said: “At a time when RTA celebrates the ninth anniversary of Dubai Metro, this study underlines Dubai’s keenness to invest in improving and widening its infrastructure, since it is the backbone of driving the competitiveness of cities and countries. The infrastructure in general and roads in particular play a massive role in supporting economic, social and tourist activities, boosting the integration of the local economy, and enhancing GDP. The Dubai Government is aware of the paramount importance of investment in infrastructure, and the Government has therefore consistently maintained this policy. As a result, the emirate’s investments in roads and transport infrastructure have touched AED 100 billion.”
“Such a trend has been rewarded with clear dividends that have propelled the competitiveness of the Emirate and the UAE in general, making Dubai a global benchmark for the quality of infrastructure. The remarkable roads network of the emirate was instrumental in the UAE achieving Number One ranking in the quality of roads worldwide for four years in a row (2014-2017), according to the Global Competitiveness Reports of the World Economic Forum. The sustained improvement of roads, as well as transit systems and services witnessed by Dubai since the establishment of the RTA in 2005 have generated savings of as much as AED125 billion in the cost of fuel and time,” added Al Tayer.
Al Tayer also stressed that Dubai Metro is a flagship project of the RTA and has become the backbone of the city’s public transport. Although the core objectives of the Metro Project were focused on developing a public transport system to alleviate congestion and reduce emissions, the project has brought a host of economic, social and environmental benefits.
The study examined the capital and operational costs of the Metro and matched them to the financial benefits of the project in the form of tariff revenues, increase in operational jobs, and appreciation in the value of properties in the surroundings of the Metro stations. Material benefits also include increasing consumer surplus of metro users (residents, citizens, tourists), raising foreign investment, reducing mobility and vehicle operation costs, curbing carbon emissions, decreasing traffic accidents, cutting road maintenance costs, and boosting employment prospects.