Dubai – Mubasher: The Dubai Metro is already reaping economic benefits, seven years after its launch in the emirate, having registered AED 66 billion ($17.97 billion) versus costs of AED 41 billion ($11.16 billion), a new report showed.
The report, which was issued jointly between the Dubai Roads and Transport Authority (RTA) and the UK's Henley Business School at University of Reading, analysed the direct and indirect economic benefits of the metro between 2009 and 2016.
The Dubai Metro’s benefit-cost ratio was 1.6, meaning that for every dirham spent on cost, the metro produced AED 1.6 in benefits during the seven-year period, the report said.
It also forecast that accumulated benefits by 2020 would amount to AED 115 billion versus AED 45 billion costs, while for 2030 benefits will reach AED 234 billion against costs of AED 54 billion.
The cost-benefit ratio for 2020 and 2030 is expected at 2.5 and 4.3, respectively, the data showed.
“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... As a result, the emirate’s investments in roads and transport infrastructure have touched AED100 billion,” commented RTA director general and chairman Mattar Al Tayer.
The report examined other aspects for the Dubai Metro, including capital and operational costs, matching them to the financial benefits in the form of tariff revenues, higher operating jobs, and appreciation in the value of properties surroundings metro stations.
Meanwhile, material benefits included raising consumer surplus of metro users, foreign investment as well as reducing mobility and vehicle operation costs, cutting carbon emissions, traffic accidents, and road maintenance costs, whilst increasing employment prospects.
"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," concluded Al Tayer.
In 2018, the Dubai Metro celebrated its ninth anniversary.