business plan
Business Plan on the Red Line of the Dubai Metro System Table of Contents Executive Summary /2 Objectives /2 Background of the Study /3 Market Strategy /5 Services /6 Company Background /7 Finances /8 Executive Summary Dubai is a booming emirate in the country of United Arab Emirates in the Arabian Peninsula . In to accommodate the booming influx of investments from the West , public construction has been way on the rise This comes as the oil in the region starts to diminish and as what was

estimated , will be gone in 30 years . Dubai has been , in the past years eyeing itself as a major telecommunications and industry hub in the Middle East . By doing this , the emirate has also attracted a lot of tourists as well as foreign workers from South Asia come into the country in search of work . The need therefore for a cheaper means of transportation is on the rise . The proposal to build Dubai 's first metro is due to be completed in 2009 which would run along the Central Business District . But by that time , the demand for mass transportation would require a further line that would accommodate the riding public The Red Line therefore must be constructed from the Jebel Ali Freeport Zone to the East in the rising urban outskirts
Objectives
The general objective of the study is to classify the different forms of information asymmetries , particularly the moral hazard problems , which arise after contracts have been awarded to private sectors on infrastructure projects under the build-operate-transfer (BOT ) scheme
The specific objectives of this study are
to examine the different phases involved in building , operating , and transferring of infrastructures of the Red Line in Dubai in the United Arab Emirates
to examine the design and content of Dubai Metro contracts , e .g risk-sharing arrangements , and government guarantees provided
to establish a framework in the Dubai Metro projects are operated , and use this to identify the general characteristics of mass transit projects and
to identify the issues and problems to be faced by Dubai and private investors in delivering infrastructure projects under BOT-type contracts
Background of the Study
One of the traditional roles of governments in most countries has been to develop the economy 's physical and social infrastructure . Initially bulk of the funding for these sectors came from the government 's own sources because these sectors were seen as priority sectors for investment . As taxation levels are limited , the governments are globally facing major fiscal shortcomings in funding the construction and maintenance of the public works
The sheik of the Emirate of Dubai , Mohammed bin Rashid Al Maktoum , knows such role of his government . Realizing the increasing demands for infrastructure to accommodate the rapid growth of the Dubai economy , the need for a mass transportation system needs to get underway . The initial plan to build Dubai 's first Metro system is well under way . Upon completion , it will also be the first metro system in the United Arab Emirates
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