The 62-kilometre Emirates Road (E311) expansion from the Dubai border to the Sweihan Road (E20) interchange will link the country's largest cities and create new entrances to Abu Dhabi International Airport, Yas Island and Saadiyat Island.
The dual carriageway will serve South Shamkha, Al Wathba, Baniyas and the Khalifa Port area.
The Abu Dhabi Executive Council announced funding for the project in January.
The highway will give commuters and industrial traffic a faster route between Dubai and the capital.
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