Post on 23-Jul-2020
Week 17 SUNDAY, 28 APRIL 2019
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34+ YEARS IN THE MIDDLE EAST
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REAL ESTATE NEWS
UAE / GCC / MENA
SAUDI TOURIST NUMBERS FORECAST TO TOP 23M IN 2023
IHG TO OPEN STAYBRIDGE SUITES HOTEL IN BAHRAIN
MALLS TO EVOLVE IN AGE OF DISRUPTION
GCC RETAIL SECTOR TO GROW 22% DESPITE HEADWINDS TO $308BN BY 2023
MALL OVERSUPPLY REMAINS A LIVE RISK IN UAE RETAIL SECTOR
VISITOR SPENDING IN UAE SOARS TO DH22.8 BILLION
HOMEFRONT: 'CAN I CANCEL AN OFF-PLAN PURCHASE AND RECOVER MY MONEY IF
THE DELIVERY IS LATE?'
SAUDI ARABIA MAY RELAX SHARES LIMIT FOR FOREIGN INVESTORS
SAUDI ARABIA RECORDS BUDGET SURPLUS FOR FIRST TIME SINCE 2014
RIYADH FORECAST TO SEE 30,000 NEW HOMES IN 2019
DUBAI'S DAMAC AWARDS $117M CONTRACTS ON KEY UAE PROJECTS
SAUDI'S FAWAZ ALHOKAIR GROUP SEEKS $836M FROM MALL UNIT IPO
CHINA'S INITIATIVE IS A GAME CHANGER
UAE IS THE MOST STABLE ARAB NATION
DUBAI
INTERNATIONAL VISITOR NUMBERS TO DUBAI GROW AT START OF 2019
VILLA SALES PRICES DECLINED IN DUBAI IN MARCH
DUBAI PROPERTY OVERSUPPLY 'WILL BALANCE OUT,' SAYS DAMAC PROPERTIES
ROADS AROUND DUBAI'S JEWEL OF THE CREEK PROJECT 80% COMPLETED
DUBAI EXPO 2020 DRIVING UAE LOGISTICS SECTOR
DUBAI-BASED AL KHOORY TO OPEN AL QUOZ'S FIRST TWO HOTELS
DUBAI'S ECONOMIC GROWTH WILL ACCELERATE IN 2019 AND 2020
REVEALED: HOW DUBAI DEVELOPERS ARE MAKING HOMES MORE AFFORDABLE
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34+ YEARS IN THE MIDDLE EAST
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REAL ESTATE NEWS
INSIDE DUBAI EXHIBITION CENTRE: THE EVENT HUB AT EXPO 2020 DUBAI
SINGAPORE-BASED SAMANEA TO BUILD $272M MALL IN DUBAI
ART IN REAL ESTATE: HOW A DEVELOPER IS BUILDING HOMES FOR THE MID-MARKET
SELLING REAL ESTATE AT THE DUBAI EXPO
CHANGING TASTES OF DUBAI’S LUXURY HOME BUYERS
EMAAR HOSPITALITY TO OPEN FIVE DUBAI HOTELS IN 2019
DUBAI EVALUATING MORE VISA EXEMPTIONS AHEAD OF EXPO 2020
DIFC PUSHES AHEAD WITH LOW-COST SAVINGS PLAN TO REPLACE GRATUITIES
'ONE CHEQUE RENTS' ON WAY OUT AS DUBAI LANDLORD POWER WANES
HOW DUBAI DEVELOPER IS AIMING TO GROW 100,000 CORALS BY 2020
HOTEL GIANT IHG INKS DEAL TO RUN TWO NEW DUBAI PROPERTIES
MEGA EVENTS DRIVE DUBAI WORLD TRADE CENTRE TO NEW HIGH
TOO MANY POST-HANDOVER PLANS WILL SPOIL DUBAI PROPERTY MARKET
WARREN BUFFETT'S PROPERTY FIRM SETS UP SHOP IN DUBAI
DUBAI WELCOMED 15.92 MILLION VISITORS IN 2018
192 COUNTRIES TO TAKE PART IN DUBAI EXPO 2020
ABU DHABI
ABU DHABI OWNERS UNSURE HOW NEW FREEHOLD PROPERTY LAW AFFECTS
EXISTING HOMES
MODEST SUPPLY FORECAST OVER THE NEXT TWO YEARS IN ABU DHABI
MUBADALA-BACKED $1BN INVESTMENT FUND SETS UP BASE IN ABU DHABI'S ADGM
NEW RESIDENTIAL, HOTEL PROJECTS UNVEILED FOR ABU DHABI
DUBAI'S MAJID AL FUTTAIM OPENS FIRST SHOPPING MALL IN ABU DHABI
MASDAR TO SELL PLOTS ON THE BACK OF NEW REAL ESTATE LAW
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REAL ESTATE NEWS
MOHAMMED BIN ZAYED CITY: A QUAINT AND QUIET SUBURB
NORTHERN EMIRATES
RAK PROPERTIES AWARDS CONSTRUCTION CONTRACT FOR DH500M MARBELLA
VILLAS PROJECT
IS THIS THE SMARTEST BUILDING IN THE MIDDLE EAST?
NEW DH1 MILLION UAE ROAD INTERSECTION TO EASE TRAFFIC FLOW
SHARJAH PLANS HOUSE OF WISDOM AFTER BEING NAMED WORLD BOOK CAPITAL
SHARJAH SAYS 1.7M TOURISTS VISIT IN 2018, SPENDING $172M
RAS AL KHAIMAH INKS KEY DEAL IN EUROPEAN TOURISM PUSH
INTERNATIONAL
HONG KONG'S LEE SNAPS UP PROPERTY FOR $185 MILLION
NRIS RETURNING TO INVEST TO INDIAN PROPERTY MARKET
DUBAI'S EMAAR PROPERTIES EYES PROJECTS IN KEY CHINESE CITIES
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RAK PROPERTIES AWARDS CONSTRUCTION
CONTRACT FOR DH500M MARBELLA VILLAS
PROJECT Sunday, April 21, 2019
RAK Properties, the Abu Dhabi-listed developer, awarded a contract to Al Ali Construction and Development to
build its Dh500 million Marbella Villas project in Hayat Island, Ras Al Khaimah.
The contract covers infrastructure and landscape work on the project for 205 sea-view villas and townhouses, RAK
Properties, the Ras Al Khaimah-based developer, said on Saturday.
"With Phase 1 already selling out quickly, demand remains strong for best-in-class waterfront homes such as
Marbella Villas from both domestic and international buyers," said Samuel Dean Sidiqi, chief executive of RAK
Properties.
RAK Properties is constructing the Mina Al Arab and Hayat islands, off the coast of Ras Al Khaimah, to create a
cluster of beachfront mixed-use communities. The company reported a full-year net income of Dh150.5m in 2018
compared with Dh192m in the previous year. Its board decided not to distribute dividends for 2018.
The company unveiled the second phase of Marbella Villas, a residential scheme on the Dh3 billion Hayat Island
development, during the Cityscape Global exhibition in Dubai last year.
It is also building two hotels – the Anantara and Intercontinental – and other housing schemes are at varying
stages of construction, including Flamingo Villas, Gateway Residence, Bay Residences and Julphar Residences.
RAK Properties expects to tap the sukuk markets from this year and raise additional bank financing as it continues
to deliver its 30 million-square-foot Mina Al Arab coastal project in Ras Al Khaimah, Mr Sidiqi told The National in
October.
The emirate is is experiencing a tourist boom thanks in part to its fast-growing reputation as an adventure sports
hotspot.
Ras Al Khaimah is home to the Toroverde zipline, officially the longest in the world at 2.83km, which attracts
sports and adventure tourists.
Source: The National
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INTERNATIONAL VISITOR NUMBERS TO
DUBAI GROW AT START OF 2019 Monday, April 22, 2019
The total number of international guests who visited Dubai during first two months of 2019 grew by 90,000
compared to same period of 2018, according to data published by the Dubai Department of Tourism and
Commerce Marketing on its website.
Some 3.14 million foreign tourists visited Dubai in January to February this year compared to 3.05 million in the
same period last year, 3.01 million in 2017 and 2.68 million in 2016, respectively.
Western Europe topped the source of foreign visitors at 22 per cent of the total, with the GCC next at 18 per cent
and South East Asia at 17 per cent.
Of individual countries, India was the primary source of guests at 386,000, a drop of 9 per cent over the same
period last year, while the number of visitors from the UK rose 4 per cent, those from Germany increased 11 per
cent and from the US the number was up 4 per cent.
Oman led the way in terms of percentage increase with 25 per cent more visitors from the country in January to
February (175,000) compared to the corresponding period last year.
The average occupancy rate for hotel establishments in the period came in at 84 per cent, compared with 87 per
cent last year.
Revenue per available room was Dh432 in the January to February period, down from Dh501m last year, while the
average daily room rate was Dh513 compared to Dh574 in 2018.
The tourism department's latest figures come after the Global Wealth Migration Report for 2019, developed by
AfrAsia Bank and New World Wealth, last week revealed that Dubai attracted more than 1,000 millionaires from
outside the country last year, surpassing major cities like Los Angeles, Melbourne, Miami, New York, San Francisco
and Sydney.
The report described Dubai as the most prominent financial centre in the Middle East, and one of the safest cities
in the region as well as a popular destination for high net worth individuals (HNWIs) and wealthy expatriates,
according to state news agency WAM. The report also said that Dubai is an example of the power that business
incentives have in encouraging business formation.
Approximately 2,000 HNWIs, each with at least $1 million worth of net assets, moved into the UAE in 2018,
boosting the local economy. The number of affluent migrants in the UAE rose by 2 per cent in 2018, compared to
the previous year, according to the report.
It added that globally approximately 108,000 millionaires migrated in 2018, compared to 95,000 in 2017. China
saw a mass exodus of 15,000 millionaires in 2018, the most significant of any country in the world, followed by
Russia, which saw about 7,000 millionaires leave. India said farewell to 5,000 millionaires, while Turkey lost 4,000,
and 3,000 millionaires each migrated from France and the UK.
Source: The National
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VILLA SALES PRICES DECLINED IN DUBAI IN
MARCH Sunday, April 21, 2019
Villa sales prices in Dubai declined in March, according to a new Dubai House Price Index published by Cavendish
Maxwell.
According to the statistics, the average annual house price in Dubai fell by 12 percent in March.
Some communities – including Arabian Ranches, Dubai Sports City, Dubai Silicon Oasis and Jumeirah Islands –
were found to have registered price declines of more than 12 percent.
Month-on-month, the price decline for March was 1.7 percent compared to 1.8 percent in February.
House prices in the first three months up to March were 5.1 percent lower than in the previous quarter.
Overall, the average house price in Dubai decreased to under AED 2.6 million.
Additionally, while the rate of off-plan apartment transfer was found to remain high, the total volume of
residential transactions in Q1 was 3 percent lower than the same period in 2018.
At the same time, the volume of apartment transfers over Q1 2019 fell almost 14 percent compared to the same
time period last year.
The Cavendish Maxwell statistics also show that average apartment prices remains stable at AED 1.8 million, only
a marginal change from February.
Average villa and townhouse prices were found to have declined to AED 4.5 million.
Source: The National
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DUBAI PROPERTY OVERSUPPLY 'WILL
BALANCE OUT,' SAYS DAMAC PROPERTIES Sunday, April 21, 2019
Oversupply in the Dubai property market “will balance out” over next couple of years, according to Damac
Properties’ senior vice president, marketing and corporate communications.
Speaking to Arabian Business, Niall McLoughlin said the market is competitive, but is already experiencing the
bottom of the cycle.
“You have to look at the market in general. It’s the bottom of the cycle and it’s very competitive, [but] we’re
optimistic for the next couple of years with the supply-demand dynamic out of Dubai,” he said.
“Too much supply in the market will balance out. We’re optimistic for the next couple of years. It’s just a question
of seeing this period of the cycle,” McLoughlin added.
The senior vice president said Damac is focusing on deliveries, and will see its biggest delivery in the company’s
history this year.
“We can’t focus on the negativity. We focus on the productive aspect of the market, a sign of upturn in the market.
We’ve committed to deliveries, and we’re delivering 8,000 units this year – [our] biggest delivery in history,” he
said, adding that Damac delivered 4,100 units last year.
In February, Damac posted its lowest annual profit since going public in 2013. In April this year, its shares had
declined 56 percent in 12 months.
The company’s head of investor relations, Amr Aboushaban, said at the time that many of the company’s future
developments in Dubai have already been sold and that it’s “noting indications of market stabilisation.”
Source: The National
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ROADS AROUND DUBAI'S JEWEL OF THE
CREEK PROJECT 80% COMPLETED Saturday, April 20, 2019
The roads around Dubai's Jewel of the Creek mixed-use project are nearing completion, the emirate's Roads &
Transport Authority (RTA) has announced.
Mattar Al Tayer, director-general and chairman of the RTA, announced the completion of 80 percent of road
works leading to the project being undertaken in collaboration with Dubai International Real Estate.
The project, which lies between Al Maktoum and the Floating Bridges, and Al Tayer said construction of road
works and underpasses are scheduled for completion by the end of June.
Al Tayer made his announcement during a site visit to the project, which promises to be an iconic architectural
addition to the shores of Dubai Creek.
The Jewel of the Creek project encompasses a 5-star hotel with 438 rooms, four residential towers comprising 756
serviced apartments, 20 restaurants, a man-made lake, and a waterfront promenade and marina for 65 berths.
The project also includes a 4-star hotel with 403 rooms, 3-star hotel with 405 rooms in addition to two connected
residential towers comprising 389 serviced apartments featuring an Islamic design, a mini-mall, and parking
spaces for about 6,000 vehicles.
Al Tayer said the highways project includes the construction of tunnels extending 1.4km and roads spanning 7km.
Source: Arabian Business
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DUBAI EXPO 2020 DRIVING UAE LOGISTICS
SECTOR Sunday, April 21, 2019
The build-up to Dubai’s hotly anticipated Expo 2020 is driving a boom in the UAE’s logistics centre, according to
experts from Dubai-based Gulf Pinnacle Logistics.
With 19 months left for the inauguration of Expo 2020, 56 percent of all contracts have gone to SMES, while
26,000 companies from 150 countries have applied to be involved in the event.
“With foreign companies get contracts in the UAE, they need professional support of logistics specialists with wide
local and international networks to move their set-up and equipment to the Gulf country,” said Shailesh Dash,
chairman of Dubai-based Gulf Pinnacle Logistics.
“Contractors of Expo 2020, which is extraordinarily big in magnitude, therefore rely on reputable and experienced
logistics players to become their strategic and operational partners,” he added.
Rodney Viegas, the CEO of Abdulmuhsen Shipping LLC (AMS) and So Safe Logistics LLC, two portfolio companies
owned by GPL, noted that the increased momentum of Expo 2020 preparations has led the UAE to rank first in
the region and third globally in the 2019 Agility Emerging Markets Logistics Index.
“[Logistics] is witnessing a business boom, when other sectors are observing slow growth,” he said. “Expo 2020 is
expected to drive the logistics and supply chain segment even further and cement the UAE’s position as a global
leader in logistics.”
Source: Arabian Business
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SAUDI TOURIST NUMBERS FORECAST TO
TOP 23M IN 2023 Sunday, April 21, 2019
Saudi Arabia’s travel and tourism sector is expected to contribute $70.9 billion in total to the country’s GDP in
2019 while international visitors are set to rise steadily to 2023, according to new research.
Ahead of the Arabian Travel Market (ATM), which is being held in Dubai later this month, Colliers said
international arrivals to Saudi Arabia are expected to increase 5.6 percent per year from 17.7 million in 2018 to
23.3 million in 2023.
It said religious tourism is expected to remain the bedrock of the sector over the next decade, with a goal of
attracting 30 million pilgrims to the kingdom by 2030, an increase of 11 million from the 19 million Hajj and
Umrah pilgrims that visited the country in 2017.
Danielle Curtis, exhibition director ME, Arabian Travel Market, said: “More relaxed access to visas, through online
portals such as the ‘Sharek’ and the growth of the Umrah plus market – combining religious and leisure travel –
are expected to be key drivers in the growth of international tourism in the kingdom.”
Vision 2030 has set aside $64 billion to invest in culture, leisure and entertainment projects over the next decade,
which will significantly add to the attractiveness of the country as a touristic destination, according to another
report by Savills.
The first phase of the Red Sea project, which is estimated to grow the kingdom’s GDP by $5.86 billion and will
consist of an airport, marinas, up to 3,000 hotel rooms and various recreational activities, is also expected to
complete during 2022.
Saudi Arabia’s Public Investment Fund has also announced the development of Amaala, a new ultra-luxury
tourism megaproject which is earmarked for completion in 2028.
“Saudi Arabia will see a vast expansion of its hotel and resort inventory during 2019, with over 9,000 keys of three,
four and five-star international supply expected to enter the market despite major cities such as Riyadh and
Jeddah experiencing an overall drop in ADR during 2018," said Curtis.
“While, this new supply will place additional competitive pressure on hotels performance across the country, the
projected growth in visitor numbers in both the domestic and international markets is expected to boost
occupancy levels throughout 2019,” she added.
The upbeat tourism forecast is also being driven by domestic tourism with the number of local tourist trips inside
Saudi Arabia exceeding 47 million in 2018. The latest research from Colliers forecasts this figure to increase 8
percent per year to 70.5 million by 2023.
“Plans are already afoot in Saudi, to achieve the projected increase in domestic visitors, with the kingdom’s Vision
2030 blueprint forecast to double the number of UNESCO heritage sites and increase household spending on
cultural and entertainment activities inside the country from 2.9 percent to 6 percent,” added Curtis.
ATM will take place at Dubai World Trade Centre from April 27 – May 1.
Source: Arabian Business
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IHG TO OPEN STAYBRIDGE SUITES HOTEL
IN BAHRAIN Sunday, April 21, 2019
Intercontinental Hotels Group (IHG) has penned a deal with Bahrain’s Bin Faqeeh Real Estate Investment
Company to introduce the Staybridge Suites hotel brand into the country, the company announced on Sunday.
In a statement, IHG said that it expects the 128-room Staybridge Suites Manama Al Seef to open in January 2020.
The hotel will be located close to the popular Seef District shopping and commercial destination.
“The development of Staybridge Suites comes in line with [the Bahrain Tourism and Exhibitions Authority’s]
strategy which focuses on four pillars: awareness, attraction, access and accommodation in order to attract
regional and international visitors,” said BTEA CEO Sheikh Khaled bin Humood Al Khalifa.
“Bahrain is currently witnessing the launch of several hotels and serviced apartments due to the influx of inbound
tourists,” he added.
Pascal Gauvin, IHG’s managing director for India, the Middle East and Africa, said that the hotel is a reflection of
the fact that Bahrain’s tourism industry “is gaining momentum with an increase in leisure and business travellers,
especially from the GCC countries.”
“Seef District is the commercial hub of Bahrain and boasts some of the best shopping destinations in the city,
which is why it makes perfect sense to develop the kingdom of Bahrain’s first Staybridge Suites here,” he added.
Staybridge Suites Manama Al Seef is IHG’s third hotel in the country. There are currently five Staybridge Suites
across the region, with an additional eight due to open over the course of the next three to five years.
Source: Arabian Business
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DUBAI-BASED AL KHOORY TO OPEN AL
QUOZ'S FIRST TWO HOTELS Sunday, April 21, 2019
Al Khoory Hotels, the hospitality-arm of conglomerate Al Khoory Group, plans to bring hotels to Dubai’s Al Quoz
for the first time with the opening of two hotels in the area, according to Al Khoory Hotels vice chairman Abdullah
Mohamed Tayeb Khoory.
The company currently owns and operates four hotels in Dubai with a total of 650 keys.
The two Al Quoz hotels, three-star, 92-key Urban By Al Khoory and the four-star, 158-key Al Khoory Courtyard, are
slated for completion in the second half of the year.
A third Dubai property, the approximately 258-key Al Khoory Sky Garden, will be located near Dubai International
Airport and is expected to open in mid-2020 ahead of Dubai Expo 2020.
“We will also open new hotels in Muscat and in Sohar [in Oman],” Khoory added. “But that’s still further on.”
View of the Burj Khalifa
Speaking to Arabian Business, Khoory said the company sees “a lot of potential” in Dubai’s Al Quoz, which
currently does not have any hotels.
“I think it’s a good place. There are no hotels nearby and it’s very near to everywhere, such as Burj Khalifa and the
projects were are coming up,” he said. “We will be the first. People will be able to stay in a room and have a view
of the Burj Khalifa.”
Khoory added that the group believes there is still room for Sharia-compliant hotels in Dubai, which adhere to
principles such as offering halal F&B options and banning cigarettes.
“We have our own culture in this part of the world and we observed there was a need for such hotels from
tourists who are coming from nearby countries,” he said. “There was a shortage. When we started five years’ back,
there were only a few hotels in this segment.”
Occupancy
Additionally, Khoory said he is unconcerned by what he sees as a lack of occupancy in many Dubai hotels.
“We don’t have such a problem, but maybe this problem is there in five-star hotels, which we are not touching,” he
said. “Generally, our occupancy is not bad.”
According to the hotel chain, occupancy rates in the first three-months of the year have hovered at approximately
88 percent.
“Expo 2020 will also be a good push to our business and to the whole economy of the city, not only hospitality,”
Khoory added. “We think we’ll be ready for this.”
Source: Arabian Business
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DUBAI'S ECONOMIC GROWTH WILL
ACCELERATE IN 2019 AND 2020 Monday, April 22, 2019
Dubai's economic growth will accelerate in 2019 and 2020, with tourism, logistics, transport, wholesale and retail
sectors replacing the real estate as main growth driver next year, official data showed.
Data released by Dubai Economy on Sunday showed that Dubai's GDP grew 1.94 per cent last year but it will pick
up to 2.1 per cent this year and 3.8 per cent next year before easing to 2.8 per cent in 2021.
The emirate's economy will continue to rely on real estate as its main growth driver at 3.65 per cent for 2019
followed by 3.1 per cent for logistics and transport; 2.8 per cent growth in tourism; 2.4 per cent in financial
services and 1.9 per cent in wholesale and retail trade.
But as tourists will flock into the emirate next year for Expo 2020, tourism sector will overtake real estate to
become a top growth driver of the economy followed by logistics and transport; wholesale and retail; real estate;
financial services; industrial and construction industries.
Dubai Economy said government-led policy initiatives and investments, improved growth prospects in trading
partners, and preparation to host Expo 2020 are providing the bedrock for increased private sector credit and
investment in Dubai.
"Next year's growth is all about Expo 2020 that will boost tourism, food and beverages, and hospitality during
October, November and December," said Raed Safadi, chief economist at Dubai's Department of Economic
Development.
Safadi sees foreign direct investment flows into the emirate also accelerate in coming years.
"Our drive and focus is to open new markets and products for exports, taking advantage of new connectivity
through maritime and air. Looking at the global picture, Dubai's economic growth will pick considering trade and
economies of our major trading partners will also grow," added Safadi.
He pointed out Dubai surmounted challenges and achieved strong growth in FDI last year despite decline in
global investments.
"Now trend is moving positively globally and we hope that clouds of uncertainty over global economy will
dissipate and the emirate will fare even better," he added.
In 2018, Dubai attracted Dh38.5 billion in foreign direct investment, a growth of 41 per cent year-on-year. Also, the
start of 2019 has seen business activity picking up as more than 6,700 new business licences were issued, an
increase of 29 per cent year-on-year; and Dubai Financial Market attracting Dh680 million in net foreign
investment.
Sangeetha Nahar, executive member of The Institute of Chartered Accountants of India - Dubai chapter,
attributed good growth of the emirate to its flexible legislation that offer the best environment for international
investment and exceptional talent.
"Dubai already enjoys an extremely diversified economy with its GDP contribution coming in from 20 sectors.
Expo 2020 has spurred massive investment and infrastructure development in the emirate to accommodate 20
million visitors expected during the six-month long event. This would definitely lead to a positive impact in all
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existing sectors. Dubai Expo is a strong magnet to attract and turn the short-term opportunities into long-term
lucrative business investments," said Nahar.
A recent study released by EY had forecast that Dubai Expo will add Dh122.6 billion to the emirate's economy
during 2013-2030.
Going forward, Dubai Economy said the emirate is currently engaged in developing new growth drivers and
initiatives to attract private sector investments in new innovative sectors and expand to regional and global
markets.
Source: Khaleej Times
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MALLS TO EVOLVE IN AGE OF DISRUPTION Sunday, April 21, 2019
As disruption continues to impact industries across the UAE, experts say that the retail industry is no different,
and that malls have to evolve and brand themselves as destinations that have something unique for every type of
shopper and visitor.
"Retail is no longer just about shopping, and it hasn't been for some time," said Fahad Abdulrahim Kazim, vice
president of Meydan Malls at Meydan Group. "Retail, like so many other industries in the region, has embraced
the age of disruption with some of the most creative uses of commercial space we have seen."
He added: "At retail destinations today, Dubai's residents are demanding experiences that deliver moments that
resonate beyond the immediate satisfaction of retail therapy. They want 360 engagement; they want
personalisation; and they want convenient, lifestyle-centric opportunities. These are demands that we are hearing
and responding to. So for us, disruption is not just a buzzword, it's our method."
As part of its drive to set a new gold standard in retail concepts for the region, Meydan One has announced its
partnership with E-Karting, to launch the region's first indoor electric go-karting track. The multi-level, 4,000sqm e-
track is scheduled for completion in 2020 and will be located on the Entertainment Floor of Meydan One. The
track will be the first in Dubai to use karts powered entirely by electricity; each engine will boast increased torque
to provide racers with a high-powered karting experience that is completely free of noise pollution and exhaust
fumes, making it the most advanced and eco-friendly karting experience around.
Meydan One's progressive leasing mix will see almost 50 per cent of its leasable area allocated to F&B and
entertainment facilities. Around 46,000 square metres will be dedicated solely to entertainment, traditional and
extreme sports, edutainment and e-gaming.
"We are bringing to the market an all-encompassing, experiential destination that forms a crux between
technology and consumer experience, allowing our visitors to live the future today, taking them beyond the
ordinary confines of what used to be considered a retail experience," said Kazim. "For us, hosting the region's first
multi-level indoor karting track is another step towards becoming a new-age experiential destination that
operates beyond just the retail space. Malls have become retail destinations - places where entertainment and
leisure activities are bringing them into direct competition with commercial real estate spaces. The more
entertaining and engaging a retail space can be for the plethora of demographics that make up Dubai's diverse
populace, the more repeat business you're likely to garner."
Similarly, Benoy Kurien, group chief executive officer at Al Hamra Real Estate Development, said that malls are
seeking ways to stay relevant, drive growth and boost efficiency.
"It has become imperative to be innovative and offer exclusive experiences for visitors. We are constantly evolving
and the recent $120 million development at Manar Mall is a testament to our commitment to meeting the lifestyle
aspirations of the new generation. As part of the extension, Manar Mall's unique waterfront promenade will boast
an event arena, paddle boats, a play area for kids including water fountains, swings, trampolines and a range of
food trucks. We have also incorporated leisure elements that position our malls as the new lifestyle hubs in Ras Al
Khaimah. These include unique gaming zones, theatres and fitness clubs, all of which add to the rich experiences
awaiting visitors to our malls," he said.
Source: Khaleej Times
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ABU DHABI OWNERS UNSURE HOW NEW
FREEHOLD PROPERTY LAW AFFECTS
EXISTING HOMES Monday, April 22, 2019
Property agents and owners in Abu Dhabi are questioning how the emirate’s new freehold law will affect existing
real estate leaseholders.
While foreign investors can now buy freehold property for the first time in over 15 designated investment zones
in the emirate, including Raha Beach, Reem Island, Saadiyat Island and Yas Island, it is unclear what will happen to
existing homeowners.
“The big question is whether this will apply retrospectively to existing owners,” said Ben Crompton, managing
partner of Crompton Partners Estate Agents in Abu Dhabi, which set up in 2012. “If I have a 99-year lease, will that
then be converted into freehold or if I sell it, will the buyer get freehold? That’s the questions we do not know the
answer to.”
Abu Dhabi’s government made changes to real estate laws last week allowing foreigners to own freehold property
in designated zones to increase foreign direct investment and boost the economy. Previously, ownership was
restricted to UAE and GCC nationals with foreigners only allowed to own real estate on a 99-year leasehold basis.
Now residential units in special designated investments zones, such as private resort Nurai Island and eco-friendly
Masdar City, will be registered under Abu Dhabi’s freehold law, with property ownership deeds issued to
investors.
However, owners said they were unsure whether the Government decision also applies to existing homeowners.
Questions about the status of leasehold properties sent to the Abu Dhabi Department of Urban Planning &
Municipalities were not immediately answered.
Abu Dhabi resident Jennifer Castro, a Philippines-born Australian, bought an off-plan one-bedroom apartment on
Reem Island for Dh1.1 million with her husband in 2007, with handover taking place in 2012.
As the sole owner, following her husband’s death three years ago, the administrator lets the property out and
wants to understand if it will be now be converted to freehold status and whether there will be any costs involved
in the process.
“We are waiting for clarification from the developer,” she said. “I would prefer to have freehold because coming
from Australia that is what I am more used to. If the leasehold is converted to freehold, that means we don’t just
have the property for 99 years and of course you want your beneficiaries to have full ownership of it.”
Under a leasehold agreement, an owner takes the title of a leasehold property for a fixed term but does not own
the land on which the property is built, while freehold ownership offers an investor a direct title of ownership of
the property, and the land on which it is built.
Lynnette Abad, director of research and data at UAE portal Property Finder, said it is too early to make
assumptions about how the new law will be applied in Abu Dhabi.
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"The full details have not yet been disclosed, therefore, no one knows what the final outcome will be,” she said.
“The devil is in the details.”
Kamraan Khan, residential associate at Cavendish Maxwell in Abu Dhabi, said the new freehold law is a landmark
move for Abu Dhabi but "it remains to be seen whether these measures will be retrospective, and how it will
impact current owners - particularly those in specific developments, and in terms of fees payable".
"We also do not expect it to be an overnight cure for the currently challenging market. However, it should
undoubtedly have a positive impact on the medium-term outlook, providing greater clarity and certainty, and
making Abu Dhabi a more attractive investment destination,” he added.
Mr Crompton said the issue should be resolved soon. “The Government clearly has an idea behind this change to
the law and they usually roll out the regulations pretty quickly after the law. I think they will convert everything to
freehold. It would be very unfair on people that own now if they were penalised because they bought early,” he
said.
Ms Castro said she and her former husband were not concerned by their property’s leasehold status when they
first bought. “My husband though ‘hmm, it’s 99 years but who knows if you will still be alive in 99 years'. We did
not feel restricted in any way.
"But if they are going to introduce a law they should cover old and new because it would make it quite
complicated otherwise and would devalue my property,” she said. “We were one of the first buyers who had faith
in Abu Dhabi’s development back in 2007 so that should be taken into account.”
The property law changes were enacted after a study examined the needs of the real estate sector, including
meetings with investors, developers and others, the Abu Dhabi Executive Council said last week.
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed
Forces said at the time that modernisation of the real estate law “reflects the government vision to support and
develop the business environment in Abu Dhabi, along with the development of investor services and
procedures”.
Source: The National
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GCC RETAIL SECTOR TO GROW 22%
DESPITE HEADWINDS TO $308BN BY 2023 Monday, April 22, 2019
Despite macro-economic headwinds and a slowing global economy, the GCC's retail sector is forecast to grow by
about 22 per cent to $308 billion in 2023 from last year with the UAE and Saudi Arabia accounting for the bulk of
sales over the next five years.
The size of the Arabian Gulf retail sector market is expected to see 4 per cent compound annual growth rate until
2023, rising from $253.2bn recorded in 2018, Dubai-headquartered investment advisory firm Alpen Capital said in
its latest GCC Retail Industry report. Saudi Arabia and the UAE, the two largest economies in the Arab world,
account for about 77 per cent of sales in the next five years.
Population growth, a rise in per capita gross domestic product, and an expanding tourism industry will help drive
the retail sector's acceleration and boost economic diversification efforts of traditionally hydrocarbon-dependent
GCC countries, according to the report.
“Demographics are favourable for the growth of retail sector [with the population] rising faster than some of the
other parts of the world,” Krishna Dhanak, executive director at Alpen Capital, said in Dubai on Monday.
The retail sector across the Arabian Gulf states, has been under pressure in the past few quarters due to a
slowdown in the global economy, lower oil prices and muted demand. However, developers have continued to
build mixed-use projects with retail components, adding more capacity to the market.
Oil prices, which fell below $30 per barrel in the first quarter of 2016 have since recovered to hover around $70
per barrel and the economic momentum has gathered pace in the UAE. A boost in tourism numbers has also set
the foundations for the retail sector's growth and the economic recovery is expected to buoy consumer
confidence.
The UAE’s economy is expected to strengthen this year, boosted by higher levels of government spending and
increased oil production, propelling the country to outperform the wider region in 2019. The country’s GDP is
expected to expand by 2.2 per cent from an estimated 1.7 per cent in 2018 – driven by 2.5 per cent growth in real
oil GDP, and 2.1 per cent non-oil GDP growth, according to the latest report from Oxford Economics and the
ICAEW.
Dubai's economy, the commercial and trade hub of the Middle East, is projected to expand at a faster pace this
year than 2018, as the emirate continues to implement policy initiatives and investment measures under its 50-
year development charter. The emirate's GDP is expected to grow 2.1 per cent in 2019, further accelerating to 3.8
per cent and in 2020, and moderating slightly to 2.8 per cent in the following year, after growing 1.9 per cent last
year, according to Dubai Economic Department figures.
While the bellwether property sector is still facing headwinds, the emirate is banking on contributions from its
finance, retail and tourism sectors for non-oil economic growth this year and next.
Within the GCC, the UAE is expected to lead the pack in terms of retail sector growth on the back of government
initiatives such as Dh50bn three-year economic stimulus package, easing of visa restrictions and renewed
spending on infrastructure projects. During the forecast period, annualised growth in retail sales across the GCC
is expected to range between 2.2 per cent to 5.1 per cent.
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The UAE is ranked fifth among the top-ten retail destinations in the world, and the country has seen its retail
market grow CAGR of 3.8 per cent to $73bn between 2012 to 2016. Tourist spending is among the highest in
Dubai, with overnight visitor spending reaching $29.7bn in 2017 alone, according to the report.
Despite the positive outlook, an oversupply of commercial space and higher rents, coupled with challenges posed
by the rise of e-commerce in the region remain major challenges for the retail sector's growth, Alpen Capital said.
About 5.2 million square metres of retail space is likely to come to the GCC market in the next five years, taking
the total organised retail gross leasable area to 20.4 million square metre, “which may create an oversupply
situation”, Mr Dhanak said.
The rising number of international brands operating in the region has also intensified competition and higher
operating costs have eroded margins for retailers who are adopting aggressive promotional campaigns, he
added.
Source: The National
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REVEALED: HOW DUBAI DEVELOPERS ARE
MAKING HOMES MORE AFFORDABLE Tuesday, April 23, 2019
Developers in Dubai have been progressively reducing the unit size to make properties more affordable for
investors and end-users, according to research by Property Finder.
The UAE-based real estate portal said, however, that the average price per square foot has continued to increase
over the years.
Based on a comparison of 28,000 apartment transactions in 2015 and 2019, the average size of an off-plan Dubai
studio transacted in 2015 was 480 sq ft and has reduced to 406 sq ft in 2019.
Similarly, the average size of an under-construction 1 bedroom apartment sold in 2015 was 845 sq ft, which has
shrunk to 670 sq ft today.
Two bedroom apartments are not immune to this trend either, with transacted off-plan unit size reducing from
1,300 sq ft in 2015 to 980 sq ft this year, the research showed.
"This is a strategy deployed by developers to reduce the overall ticket price and thereby attract new customers,"
Property Finder noted.
It added that the average price per sq ft for an off-plan studio sold for AED1,409 in 2015 has increased to
AED1,630 in 2019. Similarly, a 1 bedroom off-plan unit that transacted for AED1,161 in 2015 is being sold for
AED1,363 today.
"While this trend is unlikely to affect yield-seeking investors in the short term, they must remember that smaller
properties might not appeal to tenants in an oversupplied market," the research said.
Villas and townhouses have also seen their size shrink. Based on a comparison of 2,275 transactions in 2015 and
2019, the size of transacted ready 2 bedroom villas/townhouses reduced from an average 2,620 sq ft in 2016 to
2,046 sq ft in 2019. The size of transacted ready 3 bedroom villas/townhouses has shrunk from 2,836 sq ft to
2,374 sq ft across the same review period.
Around 41,000 homes are slated to enter the Dubai market in 2019 while 28,000 homes were handed over last
year, according to Property Finder.
“It is imperative for investors to know what they are getting into when buying off-plan, especially with smaller
units being the current trend. If their exit strategy is to sell once the unit is handed over, they might struggle to
find a buyer in the secondary market which has been driven by end-users over the last year who have intrinsically
become more savvy and have many options to choose from,” said Lynnette Abad, director of research and data,
Property Finder.
Source: Arabian Business
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IS THIS THE SMARTEST BUILDING IN THE
MIDDLE EAST? Tuesday, April 23, 2019
Bee’ah, the UAE-based sustainability pioneer, has announced that its new headquarters in Sharjah is set to
become the first fully-integrated artificial intelligence (AI) office building in the UAE and MENA region.
The building, which Bee'ah said will be one of the smartest in the world, is set to open by the end of 2019.
The announcement was made on Tuesday in Redmond, Washington, on the sidelines of an agreement between
executives from Bee’ah, Microsoft Corp, Johnson Controls and Evoteq.
As part of the agreement, the new Bee’ah headquarters will be equipped with a sweeping array of AI and smart
building solutions powered by Microsoft.
From digital workspaces to smart back-office integration, and from smart lobby-visitor management to smart
security, employees and visitors at Bee’ah’s new headquarters will experience a range of cutting-edge AI features.
Designed by the renowned Zaha Hadid Architects, Bee’ah’s futuristic new headquarters will be fully-powered by
renewable energy.
“Environmental sustainability and digital technologies are mutually inclusive pillars in driving an economy of the
future and are deeply ingrained in everything we do at Bee’ah,” said Khaled Al Huraimel, Bee’ah’s group CEO.
“By partnering with the world’s leading technology firms and sector shapers, our new headquarters will embody
our vision for this future and exemplify the most sustainable solutions and advanced technologies, with no
compromise on innovation or delivery.”
He added that the new HQ will be the first building in the UAE and MENA region, and one of the first in the world,
to have full integration with AI.
"Our office of the future will manifest our commitment to the continual advancement of our valued staff body,
and AI solutions will provide new avenues of employee development and operational convenience. We look
forward to the gradual rollout of AI-powered smart building solutions at other Bee’ah offices and locations across
the UAE,” he said.
Using its Digital Vault offering and extended capabilities built on Microsoft Azure, Johnson Controls will work with
Microsoft to outfit the new building with intelligent edge systems, devices and software designed to optimize
energy efficiency, make the best use of available space and help the building’s occupants be more productive
through a virtual AI persona.
Evoteq, Bee’ah’s digital venture, will serve as the technical project management partner for this unique project,
deploying integrated solutions and enhanced digital capabilities for greater operational output.
Source: Arabian Business
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INSIDE DUBAI EXHIBITION CENTRE: THE
EVENT HUB AT EXPO 2020 DUBAI Tuesday, April 23, 2019
Expo 2020 Dubai unveiled details of the 45,000 sq m exhibition centre that will serve at the meeting hub for the
six-month event, as well as a significant legacy asset for UAE.
Dubai Exhibition Centre (DEC), which opens for business on October 20, 2020, will be spread across two
campuses, housing a theatre, auditorium, several multi-purpose halls, four suites and 24 meeting rooms, and
customisable to all event needs, including large indoor concerts.
Co-located at the Expo 2020 site, the DEC forms a key part of Expo 2020’s legacy, where it will also serve District
2020, the integrated urban development that will repurpose more than 80 percent of Expo’s built environment.
Expo 2020 Dubai released a new 3D animated fly-through of the new venue, which will attract both domestic and
international visitors
“By any standard, the Dubai Exhibition Centre will be a cutting edge venue that will play a pivotal role during Expo
2020,” said Ahmed Al Khatib, chief delivery officer, Expo 2020 Dubai
“But the impact of such a unique space will stretch well beyond the six months of the Expo, boosting the region’s
meetings and events industry, furthering the UAE’s reputation as a destination for major conferences, and fuelling
growth in Dubai’s knowledge-based economy for many years to come.”
Bookings are already being taken for the DEC ahead of Expo 2020 Dubai, which is set to draw 25 million visits.
“There will be no place on the planet offering more exceptional business networking opportunities than Expo
2020 Dubai, and the DEC will be right at its heart,” said Shaun Vorster, vice president, strategy and business
integration - Programming at Expo 2020 Dubai.
“Bookings are already going well and this latest 3D animated fly-through, which gives a taster of the high-tech
facilities on offer, has already sparked keen interest among the 190 countries participating in Expo 2020.”
The multi-purpose venue is expected to be used by the wider community as a location for summits, business
festivals, seminars, weddings, gala dinners and live performances.
Source: Arabian Business
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SINGAPORE-BASED SAMANEA TO BUILD
$272M MALL IN DUBAI Monday, April 22, 2019
Dubai developer Meraas has signed an agreement with Singapore-based Chinese company Samanea Group that
will see a AED1 billion ($272 million) mall come to fruition in 2021 near Dubai International City.
The inaugural Big C Forum witnessed the signing, with six key Chinese manufacturers and businesses also inking
the letter of intent, a statement said.
Samanea Group will develop the 570,000 sq ft retail outlet which will focus on home appliances and furniture
from small, medium and big Chinese businesses seeking a foothold in the GCC market. The mall will also hold
space for 1,800 parking spaces.
Tan Li, acting Consul-General of the People’s Republic of China in Dubai, said: “In recent years, both China-UAE
and China-Dubai relations have developed very fast. Among the Middle East countries, the UAE has conducted the
most in-depth and fruitful cooperation with China.
“With its social stability, good infrastructure, ease of doing business and culture of tolerance, Dubai attracts more
and more Chinese enterprises. In 2018, China was Dubai’s largest trade partner for the fifth consecutive year,
bilateral trade reaching $37.9 billion.”
She added: “The ‘Hala China’ programme launched last year, built a platform for the cooperation between China
and Dubai in economy, trade, investment, tourism and culture. This programme has enhanced our bilateral
cooperation and made remarkable achievements.”
The forum gathered more than 600 Chinese investors and entrepreneurs in Dubai, where Sheikh Majid Al Mualla,
chairman of Hala China, officially opened the event.
Source: Arabian Business
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ART IN REAL ESTATE: HOW A DEVELOPER IS
BUILDING HOMES FOR THE MID-MARKET Tuesday, April 23, 2019
It’s impossible to miss a Binghatti building when walking past one. Muhammad BinGhatti, CEO and head of
architecture at Binghatti Holding, tells Property Weekly how art has influenced his designs and the demand for
reasonably priced high-quality products in the market.
Does your interest in art help you in your business?
Yes it has shaped the way we do our business. The idea has been to display art in everything we do. We want to
create a brand in real estate very similar to the strategy used by luxury fashion brands such as Louis Vuitton,
Gucci, Dior, or those like Lamborghini and Ferrari or Rolex. In such cases, you recognise the brand without even
seeing the logo. That’s exactly what we wanted to do with property.
You’re a design-led developer. How do you balance that with sustainability?
A lot of the people who look at our buildings ask why the balconies look that way. It’s because we study the solar
impact on our buildings. The balconies provide passive shading for residents, which allows us to create more
comfortable interiors. The paint we use has a high reflective solar index, which again helps with the sustainability
of the building. Also, the geometry of the building is commensurate with the direction of the sun and the region’s
climate.
What kind of units are in demand now?
Customers are looking at the best ticket size, which makes them prioritise price points rather than things like
location. Smaller unit types such as studios and one-bedroom apartments are moving faster than larger unit
types.
Are you still committed to the mid-market segment?
Yes we are still committed to this segment. When we say mid-market, we mean property that’s value for money.
Affordability is subjective. In Business Bay, the average price is between Dh1,500 and Dh1,600 per square foot
and we’re priced at around Dh1,350 on average. Therefore, we’re providing affordability relative to the area.
What are your growth plans?
We’re expanding in mid-range areas. We’ve acquired a land bank of around four million sq ft in the same areas
where we’re building, including Al Jaddaf, where we plan to develop around 1,000 apartments, a total GFA of one
million sq ft.
How do you integrate green building standards in your developments?
We have a full in-house sustainability and green building department consisting of eight members. Their sole job
is to ensure we are integrating green building standards and going above what’s required from authorities. We’ve
won awards for this and received LEED certification in many of our developments.
Source: Gulf News
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SELLING REAL ESTATE AT THE DUBAI EXPO Tuesday, April 23, 2019
With a promise of more than 25 million visits from across the world, Expo 2020 Dubai creates a unique platform
where developers can cater to a huge pool of potential foreign investors. Industry insiders say developers are well
aware of this opportunity and are actively positioning their projects to target these visitors.
“Selling real estate in Dubai to those attending Expo is one of the major potential benefits of hosting this event,”
says Craig Plumb, head of research at JLL Middle East and North Africa (Mena).
However, it’s important to have a comprehensive plan in place to capitalise on the huge inflow of international
travellers, many of whom would be first-time visitors.
“Engaging international travellers will start at the beginning of their travel journey as soon as they have interacted
with a travel booking platform and shown a clear intent to travel to Dubai,” says Sébastien Marteau, CEO and
founder of Iconiction, a proximity and location-based marketing company.
“Real estate developers should ideally build a full funnel strategy with upper and lower funnel tactics to really
generate the right quality of leads and convert them ultimately into buyers.”
Affordability factors
With prices having fallen by around 25 per cent since the last peak in 2014, Craig agrees Dubai has become more
competitively priced for overseas buyers and many developers are offering attractive payment plans for owner-
occupiers and rental guarantees for investors.
He says the high number of international visitors and the increased media attention on Dubai generated by Expo
2020 offer an opportunity for increased investment activity.
“If developers are able to take advantage of this opportunity, Expo 2020 may provide the catalyst to stabilise the
market and reverse the trend of falling prices and rentals experienced over the past few years,” says Craig.
However, Simon Townsend, senior director and head of strategic advisory and consulting at CBRE Middle East,
North Africa and Turkey, says an increase in the transient population is not a key driver.
“Therefore, it is important that Expo 2020 supports long-term investment in the region while attracting new talent
that will set up home in the UAE for many years to come,” he says.
Targeting specific market
Industry experts say companies should be preparing their collaterals and staff to cater to international visitors. “It
helps if company staff speak multiple languages, however, communication soft skills can make up for the lack of
language diversity,” says Rafael Mondonedo, marketing manager, international new homes at Chestertons Mena.
Another strategy, he suggests, is to make “your branding and collaterals easier to relate to”. For his company,
Mondonedo says this works by having a slightly different logo across the over 120 locations worldwide,
depending on country and extending that principle by use of language in all communications, such as websites
and brochures. “It’s a simple tweak but it’s highly effective especially with people who are not that well-versed in
the English language,” he explains.
Iconiction’s Marteau says targeting specific nationalities such as Chinese, Saudi and Russian will be key to keeping
within the advertising budget.
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“Digitally, we can also target specific nationalities from their country of origin as soon as they have booked their
tickets,” he says. This is possible because traveller-specific digital advertising platforms can collect travel audience
profile based on meta-search travel platform data such as Kayak, Skyscanner and OTA travel platform data like
Expedia or directly from booking engines such as Amadeus from airlines and hotels companies.
“Airlines, online travel agencies, hospitality groups, destination marketing organisations and other vendors of
travel products can all feed data that can be leveraged by the real estate developers so that they reach their ideal
targeted audience, e.g luxury or affluent travellers, very specifically and efficiently,” says Marteau.
Use of technology
Technology and tools are obviously set to play a very important role in engaging with international travellers who
will be targeted at various touch points of their journey to Dubai. Marteau says the international travellers will be
targeted on their notebook, smartphones as soon as they have booked their tickets, inside planes (with Wi-Fi for
example), at the airport, in taxis, in trips using Wi-Fi UAE in 470 locations, in their hotels via geo-targeting and via
handy smartphones in their rooms.
“Leveraging pop-up stores in key locations will be also efficient to engage travellers more directly. The site of Expo
2020 can also be directly geo-targeted with mobile advertising campaigns on smartphones to capture travellers
on sites,” he says.
Mondonedo agrees companies need to take advantage of advances in communication tools and technologies. “It
is worth noting that, in our business, the companies that see the most success in using new technologies
recognise quickly its value in facilitating, at the very least, one face-to-face interaction, which more often than not
is when a large percentage of deals get closed,” says Mondonedo.
Source: Gulf News
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MODEST SUPPLY FORECAST OVER THE
NEXT TWO YEARS IN ABU DHABI Tuesday, April 23, 2019
Although Abu Dhabi’s real estate sector has remained subdued in the first quarter, the market is responding
positively to challenging conditions. Craig Plumb, head of research at JLL Middle East and North Africa, highlights
government actions and developer initiatives in the current situation. What are the positive signs in the market
right now?
Levels of new supply have fallen to below historic levels in the hotel, office and residential sector as developers
have adjusted their delivery schedules. This is helping to sustain prices for good-quality projects. Also, the
government is continuing to promote the market through increasing expenditure and investment — we are
seeing interest from a number office occupiers who see the long-term growth potential in Abu Dhabi and are
therefore seeking to take advantage of the current weakness in the market to negotiate leases or trade up into
better-quality premises.
Another positive for the market has been the government’s move to reduce fees and relax existing regulations.
There have been examples of these initiatives in the hotel, office and residential sector. The government has
reduced its fees and charges for hotel guests, has relaxed the regulations for the establishment of new
companies and has recently announced that foreign investors will have the same rights to own freehold land as in
Dubai.
Further evidence of the continued demand for residential property in Abu Dhabi is the ability of Aldar to sell all
the villa plots in its new project on Yas Island that were launched at Cityscape Abu Dhabi last week.
The hotel market has been the strongest sector of the Abu Dhabi, recording a marked improvement in
performance during the first quarter. While this was primarily due to a number of major events boosting demand
in quarter one, there has also been a slowdown in the level of additional hotel rooms entering the market, whic
will contribute to the long-term health of this sector of the market.
Are developers more conscious about what they are planning and delivering?
Yes. This is reflected in both the reduced number of completions and nature of projects, which are now closely
aligned with demand. In the residential market projects are now being targeted at the more affordable sector.
Also there are more modest levels of supply forecast over the next two years.
In Abu Dhabi what does the supply look like in the next one year?
With the exception of the retail sector, there are much more modest levels of supply forecast over the next two
years. This is the big difference between the Dubai and Abu Dhabi markets currently. While there remains very
high levels of completions scheduled for the next few years in Dubai, this is certainly not the case in Abu Dhabi,
where developers have adjusted their future supply downwards by delaying some projects and scaling back the
size of others.
Do you think Abu Dhabi will feel the Expo effect?
Yes — while not as directly as Dubai, Abu Dhabi will also benefit from the increased exposure and higher level of
international visitors attracted by Expo 2020. We are already seeing developers in Dubai target their project at
these visitors and the same trend is likely to occur in Abu Dhabi.
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Source: Gulf News
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CHANGING TASTES OF DUBAI’S LUXURY
HOME BUYERS Tuesday, April 23, 2019
The one constant in Dubai’s real estate market is that it is ever-changing. Over time, we have seen a shift from a
purely investor-driven market to one that is more focused on buyers with long-term residence plans. In a similar
vein, high-rises have been superseded by low-rise master communities with the steady growth of areas such as
Arabian Ranches and Jumeirah Golf Estates. More recently, one of the prevailing trends we have started to see is a
greater demand for newer and contemporary homes.
The shift can roughly be divided along two lines – villas and apartments. For villas, we are noticing this on an
aesthetic level. Dubai has, for several decades, had a love affair with Mediterranean architecture. Venture out to
the more historical villa neighbourhoods in Jumeirah or Umm Suqeim, or even some of the older homes at
Emirates Hills, and you will find stucco houses with gabled roofs and columned doorways. On the other hand, if
you look at the newer villas being built in areas such as District One and Dubai Hills, you will find a dramatically
different landscape. Sleek architectural lines, floor-to-ceiling glass framing every room and minimalist interiors
focused on bold shapes and colours are fast becoming the norm when it comes to villa design. There are still
Mediterranean and Arabian-style homes being built across the city, but they all have a twist in the design that
incorporates the above elements to create something that is a far cry from traditional and is wholly unique.
Recent transactions help to further demonstrate the trend. A contemporary villa in Emirates Hills sold for a
whopping Dh90 million in September of last year, followed by a stunning Palm Jumeirah home that went for Dh51
million. By comparison, older villas are seeing much lower transaction levels and now it is almost a given that any
home will have a modern makeover before the new owners move in.
The trend is largely similar among apartments – I doubt you will find a single new project that doesn’t have a
combination of glass walls and stark interiors – but from a buyer perspective, the key element is lifestyle. Serviced
and branded residences have been on the rise, offering beautiful and well-designed homes that are
complemented by a full suite of services comparable to those of a five-star hotel. In fact, some of the most high-
profile projects that are scheduled for completion this year are being serviced by leading hotels, including W
Residences (serviced by the newly opened W Dubai – The Palm), One Palm (Dorchester Collection) and Royal
Atlantis Residences (Royal Atlantis Resort).
For investors, a serviced residence is a fantastic hands-off investment where the property is fully managed and all
they have to do is rake in the returns. For a homeowner, this is basically a full-time resort vacation. There are
different service packages available that offer everything from basic housekeeping to full concierge service,
ensuring a lifestyle of convenience and complete peace of mind. As we see a growing influx of HNWIs and
UHNWIs, that sort of lifestyle becomes a major selling point.
Once again, the proof is in the transactions. The W Residences have had strong sales since the opening of the
hotel and One Palm made headlines in 2017 for the sale of Dubai’s most expensive penthouse at Dh102 million.
This has in turn impacted previously popular developments such as Emirates Crown in Dubai Marina, where
prices are on the decline. While the location is prime and the apartments themselves are beautiful, the lack of
lifestyle services is a deal breaker for today’s home buyers.
Source: Gulf News
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MALL OVERSUPPLY REMAINS A LIVE RISK IN
UAE RETAIL SECTOR Monday, April 22, 2019
New malls and shoping areas are being added in the Dubai at a rate faster than expected sales over the next five
years, raising more concerns about more supply flooding the market than is actually needed.
Alpen Capital, the consultancy, puts some numbers on what this is likely to be.
Dubai is estimated to have additions of about 2 million square metres between 2018-23, which equates to a
compunded annual growth rate of 6.6 per cent. This will come on top of 900,000 square metres of leasable space
built between 2014-18.
As against that, overall retail sales is forecast to grow at around 4 per cent during 2018-23, with much of the
actual growth coming from online platforms. “Additions in retail space coupled with competition for acquiring and
retaining tenants is likely to affect occupancy rates and lead to downward pressure on rental rates in selected
markets within the region,” said Krishna Dhanak, Executive Director at Alpen Capital.
“Accordingly, we expect a possibility of oversupply in the UAE.” Which would set off another intense round of
battles between older malls and the news ones that will take up prominent spots across Dubai and elsewhere in
the UAE. Alpen declined comment on whether it saw increased vacancy levels at the older malls; but market
sources say that these destinations are “repurposing” newly vacated spaces to line up options that are more in
sync with visitor requirements these days, such as F&B or entertainment.
Dubai accounts for 49 per cent of the malls in the UAE. The average occupancy across Dubai’s malls fell to 87 per
cent in Q1-2018 compared to 90 per cent in Q1-17. The comparable numbers for Q1-19 are not available, but
since the second-half of last year, some of the older malls have been facing exits from prominent retailers.
The pressure on malls to do more on their rental demands will continue. “The high rentals is affecting the
profitability of the operators,” Alpen reports. “In Dubai, the rents in primary locations stood at $1,268 per square
metre in 2017 compared to $817 in Abu Dhabi.
“Rents have declined in certain areas, making the current market tenant-friendly. While occupancy levels in prime
malls in Dubai remain as high as 98 per cent with stable rents, secondary malls are facing a slowdown.
“Though tenants are able to re-negotiate favorable lease terms and property owners continue to offer
concessions to maintain occupancy, retail rentals in the UAE remain much more elevated than that in prime
locations across Saudi Arabia and the other GCC nations.”
Developers aren’t the only ones facing pressure. Retailer margins are under constant threat. “Both domestic and
international retailers are adopting aggressive promotional campaigns by offering discounts to further drive
revenues,” its new report states. “Although such strategies increase top-line growth, they will lead to margin
pressures. Hence, prominent retailers are either looking at increasing their footprint within the region or
launching omni-channels to offset the margin pressures arising from increasing competition.”
But as developers build new mall destinations and retailers chase consumers in new markets, a lot of the action -
and deal-making - is taking place in the online space as well. “The GCC e-commerce market is relatively small as it
accounts for only 0.4 per cent of GDP compared to 3.5 per cent in the UK, 2.3 per cent in Singapore and 1.9 per
cent in the US,” the report says.
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“We saw several intra-regional and cross border M&A transactions with a significant focus on e-commerce/online
retailing space in the last two years. We expect to see continuing activity as retail companies look for new
opportunities for expanding their market base and size.”
Finding a permanent solution to high mall rentals in Dubai
Dubai is developing a retail rent index to improve transparency within the sector, according to Alpen. “The index
will serve as an important benchmarking tool enabling industry stakeholders to track performance and identify
key market trends and challenges.”
Source: Gulf News
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NEW DH1 MILLION UAE ROAD
INTERSECTION TO EASE TRAFFIC FLOW Tuesday, April 23, 2019
The Sharjah Roads and Transport Authority (SRTA) has developed a major road intersection at a cost of Dh1
million in the emirate.
"The Sheikh Khalid bin Sultan Al Qasimi project has been completed ahead of schedule," said Dr Eng Mohsin
Balwan, director of road maintenance, SRTA.
Apart from ensuring smooth traffic flow, the new intersection - considered to be one of the most important
infrastructure projects - will give boost to the economic growth and meet residents' needs, pointed out Dr
Balwan. "The developed intersection lies in Al Khuzamia and Al Abar areas on one side and Al Shahba and
Samnan areas on the other side."
The old concrete road barriers have been removed, while new pavement blocks and tiles have been installed.
This is besides the regular pavement and painting of the road intersection and roads around it, Dr Balwan
underlined.
"The traffic lights have been repositioned and new traffic signs installed to ensure the highest safety levels for all
road users."
RTA Sharjah, in February this year, developed the Sheikh Mohammed bin Sultan Bu Alian road intersection at a
cost of Dh1.2 million.
"Sharjah RTA is working on a comprehensive, ambitious plan to develop the entire road network in the emirate,
let alone regular maintenance as per the latest international standards."
Sharjah Roads and Customers Call Centre is reachable 24/7 at 600525252, he said. "Our staff attendants are ready
to address all feedbacks, inquiries, remarks and complaints."
Source: Khaleej Times
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VISITOR SPENDING IN UAE SOARS TO
DH22.8 BILLION Monday, April 22, 2019
International tourist spending continues its upwards trend in the UAE as visitors spent Dh22.8 billion with their
Visa cards while visiting the country last year as compared to Dh21.7 billion in the previous year, with Saudi
Arabia, the US and the UK becoming the largest spenders.
According to the latest UAE Travel Snapshot released by Visa on Monday, total spend by inbound Saudi tourists
increased by nine per cent year-on-year basis to Dh4.8 billion from Dh4.4 billion, followed by Dh2.4 billion by US
visitors and Dh2 billion from the UK tourists.
The other countries in the top 10 markets were China (Dh1.3 billion), Russia (Dh1.2 billion), Kuwait (Dh1.1 billion),
India (Dh1 billion), Oman (Dh856 million), Bahrain (Dh371 million) and Australia (Dh364 million).
Total number of Visa card transactions by visitors to the UAE also grew by 22 per cent when compared to the
previous year.
"Transactions growing much faster than spend suggests the UAE's increasing appeal as a leading global
destination for both mass and niche tourism. The UAE dirham being pegged to the US dollar, which saw strong
performance in most of 2018, made the UAE more expensive for international travellers during the period we
looked at for this report.
Despite this, the UAE remained an attractive tourist destination for international travellers," said Shahebaz Khan,
general manager for UAE, Visa.
In 2018, with 15.8 million people visited Dubai and the emirate was declared as the 6th most visited city while the
UAE capital attracted more than 10 million visitors.
Spending by Russian visitors saw the fastest growth at 13 per cent followed by Saudi Arabia (+9 per cent), the US
(+7 per cent), China, India and Australia (+6 per cent), the UK (+4 per cent), and Kuwait, Oman and Bahrain (+3 per
cent). Visa card holders spent about Dh9.2 billion on travel, Dh3.8 billion on fashion, apparel and accessories, Dh2
billion on luxury goods, Dh1.8 billion on restaurants, and Dh959 million on leisure and entertainment.
Data disclosed that restaurant spending saw the highest growth of 30 per cent while spend on airlines, apparels
and accessories grew nine per cent. The luxury goods sector saw a decrease of 10 per cent while leisure and
entertainment remained flat.While the top 10 outbound spending markets by the UAE visitors were the UK, the
US, Ireland, France, India, Netherlands, Germany, Saudi Arabia, Cyprus and Italy.
The UAE visitors spent Dh5.1 billion to the UK; Dh3.2 billion in the US; Dh1.1 billion in Ireland; Dh1 billion in
France; and Dh771 million in India.
Source: Khaleej Times
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HONG KONG'S LEE SNAPS UP PROPERTY
FOR $185 MILLION Thursday, April 25, 2019
Commercial and residential buildings stand in Hong Kong. The number of Hong Kong residents with at least ten
million Hong Kong dollars (Dh4.68 million) in liquid assets, bank deposits, mutual funds, stocks and bonds, rose
1.5 per cent to 69,000, according to a recent survey. EPA
Hong Kong paper tycoon Raymond Lee Man Chun, and his wife, Wong Man Yi, made the city's most expensive
luxury real estate purchase this year, paying HK$1.45 billion (Dh680 million) for a nine-apartment complex in
Repulse Bay.
Mr Lee, the chairman and co-founder of Lee & Man Paper Manufacturing, and his wife, bought the property
through their privately owned company Winner Progress Limited, according to the South China Morning Post,
citing land registry and company records.
American International Assurance, the seller of the three-story property at 8 Headland Road, had paid HK$20.2
million for it in 1985, according to the paper.
Each apartment has an average of 2,485 square feet (230 square metres), working out to HK$65,000 per square
foot, a price described as “reasonable” by Vincent Cheung, managing director at Vincorn Consulting and Appraisal.
“It is definitely the biggest transaction in the luxury property market this year,” Mr Cheung told the paper.
Mr Cheung said that demand remains strong for super deluxe homes in Hong Kong due to limited supply.
Repulse Bay, in the southern part of Hong Kong Island, is one of the world's most expensive residential areas.
Hong Kong's property market has made a recent comeback with prices climbing for 10 straight weeks,
rebounding from a slide that began last August.
Mr Lee, 47, has been an avid investor in the luxury property market for many years. He paid HK$176m in 2007 for
a house in The Peak neighbourhood, selling it for HK$420m in 2015.
Lee & Man, founded in 1994, reported HK$4.88bn in net profit last year.
Source: The National
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HOMEFRONT: 'CAN I CANCEL AN OFF-PLAN
PURCHASE AND RECOVER MY MONEY IF
THE DELIVERY IS LATE?' Thursday, April 25, 2019
I agreed to purchase an off-plan apartment in Dubai from a developer in April 2017. I have since paid six cash
instalments to make up 30 per cent of the purchase price. These payments were made early, ahead of the
developers' payment plan. In addition, the developer pushed me to register the property with the Dubai Land
Department in April 2018, which I paid the full amount for. On my sales and purchase (Spa) agreement, the
anticipated completion date was the second quarter of 2018 or June 2018 at the latest. The latest completion date
the developer has provided via email is the third quarter of this year or July at the earliest. My Spa states that the
developer may extend the completion date for a period of up to 12 months. My question is: as the developer will
be at least 12 months overdue on the completion date, do I have grounds to cancel the purchase and recover my
money, including the DLD registration fees? JT, Dubai
From what I can see you have paid 30 per cent of the property purchase, so I guess that the payment plan is
30/70 with 70 per cent due on completion/handover. Normally a developer is allowed to be 12 months behind the
Spa-scheduled timing for the project.
Whether you will be successful in recovering all your money paid to date, including the DLD registration fees, will
be determined by a competent judge should you wish to file a case against the developer. In the past, the courts
have tended to favour the developers with off-plan projects but we are seeing the tide shift to being more in
favour of investors.
The amount already paid does has a bearing on the result and the more one has paid, the greater the chances of
being able to cancel and recover the costs. This is not the definitive solution but in your case, as we are potentially
talking about a 13-month delay - assuming the developer does actually complete in July 2019 - it's possible a judge
may not see this extra month as being of material importance.
Before doing anything, please check your Spa for any arbitration clauses, as this may be a smarter way to go
about resolving your issues with this particular developer. Arbitration is beneficial as it is normally faster than
going to court; it is private and specialist arbitrators can be used to resolve the matter. In Dubai the most popular
arbitrator venues are before the Dubai Chamber of Commerce and Industry or the Dubai International Financial
Centre/London Court of International Arbitration (DIFC/LCI) centre based in the DIFC.
The only advice I can give is that you will have to weigh up the pros and cons carefully in taking the developer to
court. If you do decide to go ahead, you must file an application to the court through a lawyer to inquire the
status of the project from the DLD then file the case against the developer for the cancellation.
Court fees depend on the value of the claim and are capped at Dh40,000. This fee is payable either on an
application for provisional relief or on the filing of the main lawsuit. I rate your chances as only 50-50, so please
think carefully before deciding what to do next.
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Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years
in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information
only.
Source: The National
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EMAAR HOSPITALITY TO OPEN FIVE DUBAI
HOTELS IN 2019 Wednesday, April 24, 2019
Emaar Hospitality, a subsidiary of Dubai’s biggest listed property developer, said it will open five hotels this year
as it expands its offering in the emirate in the run-up to Expo 2020 Dubai.
The new hotels in Dubai this year include two under its premium Address Hotels + Resorts collection, another two
under its upscale Vida Hotels and Resorts brand and a fifth under its mid-scale Rove brand, a joint venture
between Emaar Properties and Dubai real estate developer Meraas.
“We are committed to supporting the Dubai Tourism Strategy [objective] of welcoming 25 million annual visitors
by 2025 through our robust portfolio of upcoming hotel projects, and will also focus on expanding our geographic
footprint through new hotel management agreements,” said Chris Newman, chief operating officer of Emaar
Hospitality Group, in a statement on Wednesday.
Emaar Hospitality is the official hotel partner of the Expo 2020 mega-event, which will run for six months from
October next year.
Under its newest plans, Emaar Hospitality will open the 193-room Address Fountain Views and 169-room Address
Sky View hotels, both in Downtown Dubai, over the coming months. The two new Vida hotels are in the new Creek
Harbour scheme, which will together add 794 rooms and suites to Dubai’s hotel inventory.
Meanwhile, the Rove At The Park hotel will be located at Dubai’s theme park destination Dubai Parks and Resorts,
and feature 579 rooms. “All the hotels have commenced online booking and the response from guests is strong,”
the company said.
Emaar Hospitality last year struck a Dh2.2 billion deal to sell five of its flagship hotel assets to state-backed Abu
Dhabi National Hotels (ADNH) – a transaction that completed this February, Emaar Properties said.
The hotels sale was part of a company strategy to dispose of non-core assets to finance future growth and
expand Emaar Hospitality’s hotel management portfolio while remaining asset-light.
ADNH, one of the biggest hotel owners in Abu Dhabi, agreed to buy the Address Dubai Mall, Address Boulevard,
Address Dubai Marina, Vida Downtown and Manzil Downtown, which together account for around 1,000 hotel
rooms.
Source: The National
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MUBADALA-BACKED $1BN INVESTMENT
FUND SETS UP BASE IN ABU DHABI'S ADGM Thursday, April 25, 2019
Abu Dhabi Catalyst Partners, a $1 billion (Dh3.67bn) investment fund backed by the emirate’s strategic investment
arm Mubadala Investment Company, is calling the capital’s international financial hub Abu Dhabi Global Market
its home.
The new fund will target opportunities across asset management, specialty finance and financial infrastructure,
ADGM said on Thursday.
The investment vehicle will leverage Mubadala’s extensive networks across key capital markets to seek attractive
investment opportunities and, where applicable, will work with Mubadala’s investments team and portfolio
companies to pursue ADGM-related opportunities.
Investment criteria will include the investees’ impact on job creation and engagement with the wider ADGM-based
service ecosystem, ADGM added.
With more than 10 experienced investment professionals, half of whom are Emiratis, the fund will explore
opportunities locally and abroad.
The establishment of the Mubadala-backed investment fund at the ADGM will “enable investments and capital
flows” through Abu Dhabi, said Ahmed Al Sayegh, the UAE Minister of State, who is also the chairman of ADGM.
“ADGM remains focused on its role and responsibility as a leading international financial centre with trusted
regulatory, judicial, commercial and dispute resolution regimes and infrastructure supporting the economic
development of Abu Dhabi.”
ADGM, which is among the world’s fastest-growing onshore financial hubs, is becoming a destination of choice for
global asset managers, international lenders, investment funds and tech companies.
The World Bank has also agreed to set up its UAE office at ADGM. Its new bureau will serve as the bank's platform
in the country and its functions will include the facilitation of research on policy issues, providing technical
assistance to local governments on appropriate sustainable development programmes, and supporting initiatives
that increase shared prosperity.
“ADGM is rapidly building a reputation for ease of doing business while creating opportunities for pioneering
firms to build and grow,” said Waleed Al Muhairi, chief executive officer of Mubadala’s alternative investments and
infrastructure platform.
“This partnership will see a major new fund put its roots down in ADGM…. with Mubadala’s scale and networks
across key international capital markets, I’m confident we will generate attractive returns while having a positive
impact on the ADGM ecosystem of investors, investees and service providers.”
Source: The National
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DUBAI EVALUATING MORE VISA
EXEMPTIONS AHEAD OF EXPO 2020 Thursday, April 25, 2019
Dubai is continuing to work with various stakeholders to ease visa rules for visitors ahead of the Expo 2020 world
fair in the emirate as it seeks to boost its tourism sector.
The emirate is working with relevant authorities to evaluate adding more countries whose citizens may be
granted visas on arrival, Issam Kazim, the chief executive of Department of Tourism and Commerce Marketing,
said at a media conference ahead of the Arabian Travel Market next week. The UAE has already granted some
countries such as China and Russia visa exemptions.
"We're still pushing for more and more countries to be added to that and we're working with the authorities to
make sure that's happening," he said. "The first thing we need to focus on is removing any barriers."
Dubai and the UAE overall have been implementing measures to boost tourism to the country. The UAE has seen
a surge in Russian and Chinese tourists after granting them visas on arrival in a bid to attract more visitors.
Russian tourists are now granted a free 30-day visa on arrival, which can be extended for a further month in
exchange for a fee.
Dubai had 15.92 million visitors in 2018, up 0.8 per cent from a year earlier, with India retaining its spot as the top
source market with more than 2 million travellers, according to DTCM data.
China climbed to fourth spot after Saudi Arabia and the UK, with tourist numbers surging 12 per cent to 857,000.
Russia rose two places to sixth position with a 28 per cent uptick in the number of travellers to 678,000.
Expo 2020 will have a “significant” impact on tourism during the period from October 2020 to April 2021, auditing
firm Ernst & Young said in a study of the economic impact of the world fair earlier this month.
Overall, Expo 2020 is projected to contribute Dh122.6 billion to the UAE’s economy and create nearly 50,000 full-
time jobs per year between 2013 and 2031, the study showed.
Source: The National
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DIFC PUSHES AHEAD WITH LOW-COST
SAVINGS PLAN TO REPLACE GRATUITIES Thursday, April 25, 2019
Dubai International Financial Centre is pushing ahead with plans to replace expat workers' end-of-service gratuity
with a funded, trust-based savings scheme that offers employees a choice of up to 12 passive investment funds.
At a DIFC employers’ town hall meeting on Thursday, the centre said the new scheme will charge employee
members an annual management fee of about 1.25 to 1.5 per cent or lower depending on the administrator
appointed to oversee the project set to go live on January 1, 2020.
We are looking for liabilities to be funded but we are also looking for that cash liability to be taken off the balance
sheet and managed by a third party organisation. The employee’s money is being managed separately from the
company.
Christopher Payne, DIFC Group strategy
“People are realising that the current defined benefit scheme is not working and, instead of shying away from the
really complex and sensitive issues involved, it was imperative that the DIFC, as the most compelling and leading
financial hub in the country, steps up to play a leading role in this project,” said Jacques Visser, the chief legal
officer at DIFC.
If the DIFC goes ahead with its plan, it will be the first body in the UAE to overhaul the current gratuity system - a
defined end-of-service benefit that all expatriate employees are entitled to after completing at least one year of
service. The amount is calculated on the number of days worked and the departing employee's final salary.
At the Workers Incentives and End of Service Benefits Conference in Dubai in February, the government
announced plans to “enhance” the gratuity payment and move it to a defined contribution scheme where
contributions are paid based on their salary as they progress through employment with contributions invested on
an employee’s behalf.
This is the plan set to be adopted by DIFC, which began reviewing the benefit in 2016 by setting up a working
party to assess whether there was an appetite for change. The centre then sent a proposal letter to all employers
earlier this year, asking for feedback by March 28.
The results of the survey of 339 respondents found the average DIFC employee earns Dh43,800 with the average
staff tenure nine years. Seventy-eight per cent of DIFC employees support the proposal to reform the gratuity and
54 per cent of employers already fund the existing end-of-service gratuity system.
“That’s good news because it means many firms will not see cash flow effects from our proposal,” said
Christopher Payne of DIFC Group strategy.
However, of those that do fund the liability, 79 per cent do not keep the assets outside employer control.
“That is an important part of our proposal,” added Mr Payne. “We are looking for liabilities to be funded but we
are also looking for that cash liability to be taken off the balance sheet and managed by a third-party
organisation. The employee’s money is being managed separately from the company.”
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Under the DIFC’s proposal, workers would see their existing benefits leading up to the January 1 implementation
left untouched. That liability would remain an obligation for employers who will have to pay out when the
employee leaves based on their final salary.
Then, from January 1, employers will contribute to the new scheme at the same level of benefit as the gratuity
system, which the working group calculated as equivalent to 5.83 per cent of an employee’s monthly basic salary
under five years and 8.33 per cent after five years of service.
“We are not seeking to change the level of benefit or costs,” said Philip Wheeler, senior manager and pensions
actuary at EY, adding that employees will have the option to contribute more into the scheme as will employers
who might want to use it as a talent attraction method.
While the master trust will be domiciled in DIFC for policy reasons and the Dubai Financial Services Authority will
regulate the fund administrator, both the role of trustee and administrator of the investment platform will be put
out to tender, with the DIFC looking for "global tier 1 service providers", according to Mr Payne.
When it comes to the funds selected, Mr Visser said there will be a maximum of 10 to 12 passive funds on the
restricted platform, to ensure the annual management cost stays low.
Mr Wheeler said employees will be able to control how their money is invested, choosing between a cautious,
balanced or aggressive portfolio. However, there will be a “sensible” default option for those unsure of what
choice to make.
Some attendees at yesterday’s event questioned whether they would lose out as the contributions made into the
new scheme will be based on their existing salary rather than their final salary as the current gratuity system is,
making it a cheaper proposition for employers.
“The potential investment growth has a better compounding effect than slow salary growth," said Martin
McGuigan, partner at Aon Retirement Solutions and McLagan in Dubai and a member of the DIFC’s working party,
who added that his firm would pitch for the tender.
"Whilst there is still some associated risk on the investment side, global research shows the investment growth is
better over the longer term than wage growth.”
Source: The National
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SAUDI ARABIA MAY RELAX SHARES LIMIT
FOR FOREIGN INVESTORS Thursday, April 25, 2019
Saudi Arabia’s Capital Market Authority (CMA) is considering relaxing a 49 per cent limit for foreign strategic
investors in shares of listed companies due to increased demand, its chairman said on Thursday.
Foreigners currently own 5.5 per cent of Saudi equities but that could nearly double by the end of 2020,
Mohammed El Kuwaiz said on the sidelines of a financial conference in Riyadh.
"We found most strategic investors are maybe looking to build more sizeable stakes," Mr El Kuwaiz said.
The kingdom has introduced a raft of reforms in recent years, winning endorsements from international index
compilers MSCI and FTSE Russell, as it seeks to position its bourse as an international capital markets hub.
Local shares were incorporated into the FTSE emerging-market index in March and will join the MSCI emerging
market benchmark later this year.
An upcoming sale of shares in shopping mall operator Arabian Centres Company, owned by Fawaz Alhokair
Group, will be the first offering in the kingdom under Rule 144a, which allows the sale of securities primarily to
qualified institutional buyers in the United States.
The Saudi stock market is the Middle East's largest exchange and has seen an upsurge in foreign fund flows since
the start of the year due to the inclusion in the emerging markets indexes.
The country's Tadawul All-Share Index is up more than 18 per cent year-to-date, one of the best performances in
the region.
At least six Arabian Gulf firms have expressed interest in an additional listing on the Saudi exchange, which is due
to release detailed procedures in the next two weeks, the chief executive of the bourse said during the financial
forum on Thursday.
"We have at least one to two companies already in a very good stage of their preparations to submit their files,"
Khalid Al Hussan said at the conference.
The exchange will launch the country's first index futures contracts in the second half of the year, Mr Al Hussan
added, allowing investors to take a view on the direction of the index without having to buy individual shares.
On Thursday the CMA, the country’s bourse and its Debt Management Office (DMO) announced a reduction in
fees and commissions to encourage secondary market trading of debt.
The three entities said trading commissions for the Tadawul and the CMA had been reduced, while fees for new
offerings and annual registration charges for issuers were also reduced.
The DMO also reduced the par value for government-issued sukuk, or Islamic bonds, from 1 million Saudi riyals
(Dh979,333) to 1,000 riyals, signalling further government efforts to facilitate access to the bond market for retail
investors.
Source: The National
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SAUDI ARABIA RECORDS BUDGET SURPLUS
FOR FIRST TIME SINCE 2014 Wednesday, April 24, 2019
Saudi Arabia's finance minister told the audience of the Financial Sector Conference in Riyadh, the kingdom
recorded a budget surplus of 27.8 billion riyals in the first quarter of the year, the first since oil prices slumped in
2014.
Saudi Arabia, the Arab world's largest economy, recorded its first quarterly budget surplus since the 2014 oil-price
slump, the kingdom’s finance minister said.
The first-quarter surplus for Opec’s top oil exporter reached 27.8 billion Saudi riyals (Dh27.2bn), as income from
hydrocarbons rose and revenue from non-oil industries expanded, Mohammed Al Jadaan told delegates at a
financial conference in Riyadh.
“This year's budget is a solid proof of our commitment to Vision 2030,” Mr Al Jadaan said on Wednesday. “The
government is moving ahead with its comprehensive reform programme aimed at managing public finance,
boosting transparency and supporting the private sector development”.
Saudi Arabia, which still relies on sale of hydrocarbons for a major chunk of its revenue, is undergoing a massive
economic overhaul since the three-year oil price-slump that dragged crude from a mid-2014 peak of $115 per
barrel to below $30 per barrel in the first quarter of 2016. The price of oil rallied in the second half of 2018,
breaching $80 per barrel, which strengthened the kingdom’s financial muscle. Brent is currently hovering around
$75 per barrel.
Despite the boost in hydrocarbon revenue, Riyadh is sticking with its economic diversification plans to lessen
dependency on oil.
The government has increased spending to boost economic growth with an expansionary budget for this year
and imposed a value-added tax last year to increase its non-oil revenues.
Riyadh is moving forward with its reform agenda under the Vision 2030 programme, which includes managing
public finances, selling stakes in some of the state-owned entities such as Saudi Aramco and expanding the
country’s non-oil industrial base.
Total spending increased 8 per cent in the first quarter, while revenue surged 48 per cent, Mr Al Jadaan said.
Non-oil domestic output increased to 2.1 per cent in 2018, compared to 1.3 per cent in 2017, he said. The growth
of the finance, insurance, real estate and business services sectors, which accounts for about 10 per cent of the
Saudi Arabia's total gross domestic product, also expanded at about 3.3 per cent per annum in the past five years,
he added.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said: “The magnitude of the rise in both oil and
non-oil revenues [during the first quarter] looks surprising to us, especially given the production and price
developments in the oil market and the fact that major fiscal reforms were introduced.
"The rise in government spending was in line with our expectations and the expansionary budget for 2019. We
are forecasting high single-digit increase in government spending this year.”
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Development of the country's private sector, especially its financial markets, to attract foreign direct investments
is also a key pillar of the Vision 2030 economic transformation programme. Although foreign lenders are keen to
establish a presence in the kingdom, only a handful of them such as US lenders JP Morgan and Citi, the UK’s HSBC
and Standard Chartered, and the UAE’s First Abu Dhabi Bank and Emirates NBD have managed to gain entry.
On Wednesday, the kingdom's financial market regulator the Saudi Arabian Monetary Authority added Credit
Suisse to that list, following the council of ministers' approval, allowing the Zurich-based lender to operate in the
country.
Banks want to capitalise on the multibillion-dollar advisory and financing opportunities as Saudi Arabia continues
to implement its economic reforms. Institutions and foreign investors are equally keen to be a part of the
privatisation process that includes the public listing of Aramco, the world’s biggest oil producing company, which
is estimated by the government to yield $100bn.
BlackRock, the world’s biggest asset manager, said it is planning to open an office in Saudi Arabia, its chief
executive Larry Fink said on Wednesday at the conference.
Earlier this month, Armaco’s debut $12bn international bond sale was a clear bellwether of investor appetite. The
bond sale attracted a record orderbook of more than $100bn.
"Aramco – sooner than you think – will be accessing equity markets” said Saudi Energy Minister Khalid Al Falih,
referring to the IPO that the giant oil company is planning. Mr Al Falih said the kingdom plans to sell more bonds
and the latest bond debut is "only the beginning."
Saudi Arabia’s Tadawul stock exchange, the biggest bourse in the Arab world, is also looking to increase
ownership levels in the kingdom’s stocks by foreign investors to 10 per cent by the end of 2020, Tadawul chief
executive Khalid Al Hussan said in Riyadh on Wednesday.
“We will continue to work to develop and enhance confidence in the Saudi financial market so that we can
become one of the top-ten financial markets in the world by 2030,” Mr Al Jadaan said.
Source: The National
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'ONE CHEQUE RENTS' ON WAY OUT AS
DUBAI LANDLORD POWER WANES Friday, April 26, 2019
Realtor said a 6.5 percent population rise in Dubai since March 2018 to 3.1 million is "slowly but surely matching
the property supply".
A Dubai-based real estate broker has said it has seen a rise in buyer and tenant registration despite continued
reports of oversupply in the local property market.
Allsopp & Allsopp said buyer registration in the first quarter of 2019 is up by 20 percent with sales transactions
seeing an 18 percent increase while tenant registration has jumped by 55 percent with rental transactions seeing
a 75 percent surge.
The realtor said a 6.5 percent population rise in Dubai since March 2018 to 3.1 million is "slowly but surely
matching the property supply".
The real estate company also reported a trend of more tenants paying in multiple cheques and a decline in one
cheque demands, with 73 percent of rental transactions paid in multiple cheques.
Lewis Allsopp, CEO, said: “We have heard oversupply as far back as 2006 in regard to the Dubai property market
when the Jumeirah Beach Residence units were handed over. These apartments were, of course filled quickly and
Dubai went on to build hundreds of thousands of more units, which, in time have filled. As long as the population
continues to increase, demand will come.”
Allsopp added: “More buyer and tenant registrations reflect more confidence in the Dubai property market and
Dubai as a whole. People are moving to Dubai to better their career in a city which offers the opportunity to do
so."
He said that for those who decide that Dubai is the place for them, typically in 3-4 years tenants will look to make
a step onto the Dubai property ladder, adding: "This is exactly what we are seeing with the increase in buyer
registrations. Tenants are taking advantage of the drop in pricing that has taken place over the last couple of
years in the city and buying their first homes.”
According to the company's data, the average age of tenants and buyers fall between 31-45 years old but
statistics for Q1 have revealed an increase in 18-30-year old’s buying and renting property within Dubai.
Allsopp said: “The increase in millennials buying and renting in Dubai is very positive for the city. Millennials are
known for being more care-free and of the renting generation with less importance being put on buying a home.”
As well as an increase in sales and rentals, Allsopp & Allsopp also reported a rise in property management
portfolios of 42 percent compared to Q1 2018, with mortgage transactions experiencing a 130 percent surge in
the same period.
Source: Arabian Business
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NEW RESIDENTIAL, HOTEL PROJECTS
UNVEILED FOR ABU DHABI Thursday, April 25, 2019
National Corporation for Tourism & Hotels (NCT&H) has unveiled two new residential and hotel developments in
Abu Dhabi.
NCT&H chairman Sheikh Hamdan bin Mubarak Al Nahyan said the developments respond to the "increasing
market demand for corporate and leisure tourism offerings" and are part of NCT&H’s three-year goal to expand
its hotel and resort propositions.
The first development, Capital Views, situated in the new Abu Dhabi National Exhibition Centre (Adnec) area, has
an estimated budget investment cost of AED700 million.
The project is a joint venture between NCT&H and SinoGulf and will be ready in the last quarter of 2021. It will
comprise 319 one, two, and three-bedroom residences, alongside 323 serviced apartments.
The second development, Intercontinental Grand Marina Residences situated in Al Bateen, will offer luxury
serviced apartments ranging from studios to three-bedrooms, totalling 130 hotel apartments.
With an estimated budget investment cost of AED400 million, the project is due to open in the beginning of 2021.
In both developments, residents and guests will have full access to complex facilities including all-day dining
restaurants, pool and gym.
NCT&H added that it will start its Ritz-Carlton Saadiyat Island project by end of this year or in early 2020.
Al Nahyan said: “I strongly believe in the Abu Dhabi and UAE economy. The community and tourism development
is a key aspiration of the UAE and Abu Dhabi Governments and these residential and leisure projects will respond
to both local and international market demands. Thus NCT&H continues to deliver the UAE’s vision of a happy,
confident and efficient society by ways of modern infrastructure.”
Source: Arabian Business
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NRIS RETURNING TO INVEST TO INDIAN
PROPERTY MARKET Thursday, April 25, 2019
A large percentage of NRIs (non-resident Indians) now prefer to buy properties in newly launched residential
projects back home, a latest consumer sentiment survey has revealed.
The survey, conducted by Indian real estate service providing company Anarock, found that 44 percent of the
property buyers are now doing it for investment reasons.
The figure is a strong indication of the much-maligned real estate sector in India, which is fast regaining the trust
of buyers after introduction of regulatory initiatives like the RERA (Real Estate Regulation and Development Act).
“Bangalore is the favourite investment destination for NRIs,” Anarock’s Consumer Sentiment Survey H1 2019 said.
Residential properties continue to be a major draw for investments by NRIs, especially for the Gulf-based ones.
Indian expats in the UAE are considered to be the single-largest community of NRIs n the world.
According to the United Nations' International Migration Report of the International Organization of Migrants
(IOM), the UAE had over 3.3 million Indians in 2017.
Sharp contrast
The survey findings are in sharp contrast to the trends in the last 2-3 years, a large majority of residential property
shunned launch projects in India - widely termed as ‘paper projects’ - and preferred either ready-to-move-in or
projects to be completed under one year.
Real estate industry analysts said the increasing trend of buyers coming back to invest in newly launched
residential property projects will be a big relief to project developers to raise funds through advance sales, at a
time when banking finances have almost dried up for them.
RERA implementation and the recent GST (goods and services tax) Council’s decision to lower the tax rate for the
real estate sector were the two major factors which influenced buyers increasing preference or newly launched
projects, the Survey said.
“Our latest survey confirms that a conducive reform-driven market environment and Government sops have
breathed life to Indian real estate,” Anuj Puri, chairman, Anarock Property Consultants, said.
Long-term investors with realistic returns expectations are returning to invest in real estate, he said.
Effective RERA enforcement influenced over 50 percent buyers in Delhi-NCR to take the real estate plunge in 2018.
In Kolkata, nearly 58 percent of buyers invested due to lower home loan rates, the survey said.
The survey has also revealed that Tier 2 & 3 cities in India have emerged as the new investment hotspots, thanks
to low property prices and improved infrastructure boosting their overall growth potential.
"Our survey confirms a 26 percent investor approval rating for tier 2 & 3 cities,” Puri said.
The survey has indicated that 70 percent of prospective buyers preferred properties priced within $114,328 (Rs
800,000).
In line with the buyers’ preference for ‘affordable’ houses, property developers in India have been actively
focusing on the affordable and mid-range housing segments in the past 5 years, industry analysts said.
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“The share of new supply in the affordable and mid-segment combined (within $114,328) stood at 77 percent in
2017-2018,” they said.
Source: Arabian Business
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RIYADH FORECAST TO SEE 30,000 NEW
HOMES IN 2019 Thursday, April 25, 2019
Demand for lower- and middle-income housing remains strong in two of the major cities in Saudi Arabia despite
the current slowdown in the market, according to a new report.
Research by tax and advisory services provider KPMG Al Fozan & Partners said that with a current supply of about
1.3 million residential units in the city, Riyadh is expected to receive an additional supply of 30,000 residential
units in 2019.
“The majority of the new supply is focused towards the north and the east of the city while the centre is becoming
saturated with various developments, as vacant land parcels become scarce,” said Firas Hassan, head of real
estate at KPMG AL Fozan and partners.
The report said sale prices and rental rates of villas are expected to fall in 2019; a trend started following the
implementation of the white land tax.
The northern and central areas of the city such as Al Ghadeer, Al Nada, Al Malga, and Al Wurud districts command
the highest rental rates in Riyadh.
The report added that apartment sale and rental rates remain under pressure due to economic slowdown and
taxes such as the expat dependent levy. However, the popularity of apartments is increasing relative to previous
years in the capital as a higher number of new developments are introducing apartments.
In Jeddah, the market is characterised with low home ownership rate that is hampered by affordability
constraints, and shortage in supply of residential units targeting lower and middle-income segment.
With a current supply of about 810,000 residential units, Jeddah is expected to receive an additional supply of
around 20,000 residential units in 2019–20.
"The market is witnessing a shift in the trend as a proportion of the middle-income housing units are significantly
increasing in the forthcoming supply. Majority of these developments are located towards the northern side of
the city," said Hassan.
Sale prices and rental rates of villas continued to decline in 2018, due to cautious behaviour from investors and
end-users. During 2018, the market witnessed a decline of 6-8 percent in sale prices, while the rental rates
plunged with a relatively higher ratio.
The Jeddah apartments segment softened further and both rental rates and sale prices witnessing a decline of 8-
10 per cent in 2018, the report noted.
"Despite the current slowdown in the market and subdued performance during the last couple of years, the
market drivers seem to be positive for the long term, backed by the favorable demographic, and government’s
focus on the real estate sector as part of the diversification process," said Hassan.
Source: Arabian Business
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DUBAI'S DAMAC AWARDS $117M
CONTRACTS ON KEY UAE PROJECTS Thursday, April 25, 2019
Damac Properties has announced the awarding of multiple contracts worth AED430 million ($117 million), as it
moves ahead with key UAE projects.
The contracts range from large construction works at Damac’s second master community to final touch-ups for
developments that are nearing completion in the UAE.
Damac awarded 41 percent of the contracts for works at their master development Akoya, while 16 percent of
contracts were awarded for Damac Hills, state news agency WAM reported on Thursday.
It added that four percent was awarded for the final works on Ghalia Tower, the first Sharia-compliant luxury
furnished apartments, 12 percent for the completion of Damac Towers by Paramount Hotels and Resorts, and 21
percent more for other projects.
Additionally, the developer said it has signed six percent contracts, which cover feasibility studies on perspective
projects and opportunities.
Ali Sajwani, general manager of operations at Damac Properties, said: "There is a renewed sense of positivity in
the UAE’s economy, spurred by dynamic government initiatives to diversify growth. These contracts are a sign that
Damac is on board, as we continue to focus our efforts on timely handovers."
Sajwani added: "We have amplified our focus on building holistic communities which attract a sizeable portion of
Dubai’s diverse cultural and economic demographic; hence, over 50 percent of these contracts were awarded
towards our master community projects, with 97 percent of contracts awarded within the UAE."
Source: Arabian Business
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DUBAI'S EMAAR PROPERTIES EYES
PROJECTS IN KEY CHINESE CITIES Friday, April 26, 2019
Dubai-based developer Emaar Properties is in talks with Chinese state-owned companies about potential projects
in key cities in Asia's largest economy.
The company is evaluating projects in a number of provinces and cities, such as Hainan, Jiangsu, Chongqing,
Guangdong, Beijing and Shanghai, according to a statement issued on the sidelines of the 2nd Belt & Road
Bankers Roundtable hosted by Industrial and Commercial Bank of China (ICBC) in Beijing.
It said Emaar has signed a memorandum of understanding (MoU) with ICBC Dubai (DIFC) branch and Emirates
NBD to explore a triparty collaboration.
The cooperation will include joint exploration of urban developments and the creation of high-quality living
communities in China, it added.
"This collaboration signals that Emaar is very seriously eyeing entering into the real estate market of China and
leveraging its long experience in building key projects and attractions," the statement said.
It added that Emaar is currently engaging in discussions with many state-owned companies.
"Emaar, Emirates NBD, and ICBC share a common vision for establishing more collaboration between China and
UAE. This MoU opens up a new spectrum of opportunity to bring Emaar’s iconic project and premium lifestyle to
China and to achieve a win-win situation for China and the UAE," it said.
In December, Emaar said it had begun business development operations in China in a bid to promote Dubai as an
investment destination and boost tourism.
Emaar said it has begun the design and fit-out of two offices in Beijing and Shanghai, staffed by a team specially
recruited from China.
The two showrooms will be used to showcase the UAE as an investment destination, with a focus on property,
educational opportunities and healthcare.
Source: Arabian Business
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HOW DUBAI DEVELOPER IS AIMING TO
GROW 100,000 CORALS BY 2020 Friday, April 26, 2019
Kleindienst Group, the creator of The Heart of Europe project off the Dubai coast, has announced that its new
Coral Institute has successfully completed the fragmentation of 20,000 pieces of coral.
The project is aiming to grow 100,000 corals by 2020, which it will plant in reefs around The Heart of Europe and
offer a diver’s paradise as another Dubai tourist attraction.
The Coral Institute will also offer coral fragmentation classes, coral reef-scaping classes, diving classes, an Adopt A
Reef program and a coral restoration certification program aimed to restore and build reefs in the UAE and
around the world.
As part of the Coral Institute, there will be a team of four experts, known as the Coral Squad, dedicated to
protecting and enhancing the reefs and looking after the wildlife around The Heart of Europe.
Kleindienst Group said estimates on the economic value of coral reefs range between $100,000 to $600,000 per
sq km of coral reef.
The global economic value of coral reefs varies from $29.8 billion to $375 billion, it added.
"By growing a beautiful marine ecosystem with opportunities for diving and sea entertainment, Kleindienst Group
is ensuring The Heart of Europe takes advantage of this valuable element of the tourist industry. It will also aid
Dubai’s vision to attract new visitor audiences," it said in a statement.
Josef Kleindienst, founder and chairman of Kleindienst Group said: “Creating new coral reefs makes
environmental and economic sense. Diving and marine recreation is an important part of the tourism industry
worth billions of dollars. At the moment, it is an under-developed part of the UAE’s tourism mix and we believe it
can deliver economic benefits to our project and also to Dubai.
"We aim to support Dubai’s leadership vision to attract new visitors by offering an exciting range of activities.
Guests will be able to go pearl diving, swim with turtles and enjoy a spectacular array of marine life that can be
found in Dubai’s waters.”
In 2017, during the extremely hot summer, it is estimated that 73 percent of the UAE’s coral was affected by
bleaching and 90 percent in Saudi Arabia and also Kuwait.
Fragmentation occurs naturally in the ocean when coral pieces are broken off a colony as a result of wave action,
storms or animal activities. Under favourable conditions, these fragments can attach and develop into new
colonies.
The Heart of Europe is pioneering the second home market in Dubai. A core part of the development is the ocean
that laps at each island and Kleindienst said the man-made coral reefs will be a highlight.
Source: Arabian Business
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SHARJAH PLANS HOUSE OF WISDOM AFTER
BEING NAMED WORLD BOOK CAPITAL Saturday, April 27, 2019
Dr Sheikh Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, has unveiled the Sharjah World Book Capital 2019
Monument.
Developed by the Sharjah Investment and Development Authority (Shurooq), and commissioned by
internationally acclaimed UK-based artist Gerry Judah, the 36.5-metre high sculpture is inspired by an ancient
scroll design.
The true spiral is made of 72 tonnes of steel with 240 tonnes of concrete foundations underneath a 4-metre wide
base, state news agency WAM reported.
Shaped like a torch, the monument highlights Sharjah’s ongoing efforts aimed at fostering reading and stressing
the important role of books in further intellectuality and enlightenment, it added.
Shurooq started developing the monument after the World Book Capital's International Committee, an affiliate of
the United Nations Educational, Scientific and Cultural Organisation (UNESCO) named Sharjah World Book Capital
2019.
It commemorates Sharjah’s cultural achievement as the first city in the Gulf region and third city in the Arab World
to receive the title.
The ruler of Sharjah has also unveiled the House of Wisdom project, which is also being developed by Shurooq.
Scheduled for a public opening in 2020, the library and cultural centre will be designed by award-winning British
architectural design and engineering firm Foster and Partners.
The House of Wisdom will have two floors comprising a 105,000-book library, discussion halls, reading areas –
both indoors and outdoors in the garden, in addition to a restaurants and a café alongside a children’s education
space, a prayer room and a dedicated women’s area.
The front of the building’s façade will be entirely transparent, made from UV resistant glass to offer visitors the
chance of reading in natural light.
Source: Arabian Business
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SAUDI'S FAWAZ ALHOKAIR GROUP SEEKS
$836M FROM MALL UNIT IPO Sunday, April 28, 2019
Saudi retailer Fawaz Alhokair Group is seeking to raise as much as 3.1 billion riyals ($836 million) from selling
shares in its malls unit, making it the country’s largest IPO since 2014.
Arabian Centres set the price range of the initial public offering at 26 riyals to 33 riyals, valuing the company at as
much as $4.1 billion (SAR15.7bn). Arabian Centres operates 19 shopping malls in the kingdom.
Saudi share sales slowed as the kingdom’s economy grappled with lower oil prices. Listings by companies and
real-estate investment trusts raised almost $900 million last year, down from $6.7 billion in 2014, according to
data compiled by Bloomberg.
Fawaz Alhokair is offering the shares under Regulation S and Rule 144A of the U.S. Securities Act.
Samba Capital, Morgan Stanley, NCB Capital and Goldman Sachs Group Inc., Citigroup Inc., Credit Suisse Group
AG, EFG-Hermes Holding Co., Emirates NBD Capital KSA and Natixis SA are managing the offering.
IPO details:
▪ The pricing range implies a market capitalisation on admission of between 12.4 billion riyals and 15.7 billion
riyals
▪ The offering includes a total of 95 million shares, comprising 65 million existing shares to be sold by the
current shareholders and 30 million new shares to be issued by the company by way of a capital increase
▪ The total offering size is expected to be between 2.47 billion riyals and 3.14 billion riyals
▪ Bidding and book-building period for institutional tranche: April 28-May 7
▪ Offering period for retail tranche: May 9 Announcement of final offer shares allotment and refund of excess
subscription: May 14
Source: Arabian Business
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DUBAI'S MAJID AL FUTTAIM OPENS FIRST
SHOPPING MALL IN ABU DHABI Saturday, April 27, 2019
My City Centre Masdar, a AED300 million ($81 million) community project and Majid Al Futtaim’s first shopping
mall in Abu Dhabi, has opened.
It features 18,500 sq m of gross leasable area, including dining options for Masdar City residents and surrounding
communities.
“Expected to be one of the region’s most sustainable malls through the efficient use of resources including energy
and water management, My City Centre Masdar underlines Majid Al Futtaim’s commitment to an enhanced living
environment driven by the UAE’s long-term sustainability goals,” said Ahmed Galal Ismail, CEO of Majid Al Futtaim
– Properties.
Featuring sustainably sourced wood, a range of locally-grown produce and a commitment to reducing single-use
plastic bag usage by being the first hypermarket in the UAE not to offer them at the cash counters, the 7,000 sq m
Carrefour hypermarket at My City Centre Masdar is also the brand’s 100th store in the UAE.
My City Centre Masdar features more than 70 stores and 600 car parking bays that are shaded by roofing housing
photovoltaic cells, generating electricity equivalent to one-fifth of the mall’s annual energy usage.
Six percent of parking has been set aside for electric, hybrid or carshare vehicles – and half of these spaces are
equipped with charging points.
The mall plans to recycle at least 80 percent of its operational waste. Sustainability-focused features include
energy-efficient escalators and lifts, and the exclusive use of LED lighting that were used during the basic
elements of construction and inside shop interiors.
Additionally, all the materials used during construction were manufactured within 500km travelling distance of
the project site.
My City Centre Masdar is set to employ 2,000 people, having already created opportunities for 1,500 people
during its build-out phase.
Source: Arabian Business
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SHARJAH SAYS 1.7M TOURISTS VISIT IN
2018, SPENDING $172M Saturday, April 27, 2019
The total number of hotel guests in Sharjah in 2018 reached 1,738,543, with their combined revenue totaling
AED633 million ($172.3 million), according to the Sharjah Commerce and Tourism Development Authority
(SCTDA).
Hotels and hotel apartments witnessed 65 percent and 60 percent occupancy rate respectively during the year, it
said in a statement.
The authority said that guests from Russia, the Commonwealth and the Baltics region posted a 41 percent growth
compared to the previous year, while tourists from Africa increased by 4 percent.
Russian visitors continued to increase market share which achieved 23 percent in 2018 from 15 percent in 2017, it
added.
The top five nationalities who travelled to the emirate in 2018 also included Omanis, Chinese, Saudis and Indians.
SCTDA said it also targeted the Indonesian, Malaysian, German, and Singaporean markets for the first time in
2018 through road shows to promote the emirate’s tourism offerings.
As well as debuting Sharjah Summer Festival, new hotels were also unveiled during the previous year to
accommodate the growing number of tourists visiting the emirate.
Khalid Jasim Al Midfa, chairman, SCTDA, said: “The Sharjah Government’s vision is to attract 10 million visitors by
2021, in time for the UAE’s 50th founding anniversary.
"Thanks to the unlimited efforts and the cooperation of all partners with us, we have already achieved at least 70
per cent of this vision, which is the equivalent of 7 million visitors who have come to Sharjah."
Source: Arabian Business
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HOTEL GIANT IHG INKS DEAL TO RUN TWO
NEW DUBAI PROPERTIES Friday, April 26, 2019
InterContinental Hotels Group (IHG) has signed franchise agreements for two hotels in Dubai with real estate
development firm, SRG Holding.
The agreements will see the conversion of two SRG-owned developments to IHG’s extended-stay brand
Staybridge Suites.
Staybridge Suites Dubai Financial Centre and Staybridge Suites Dubai Internet City will be operated by SRG
Hospitality, the group’s hotel management arm with opening dates set for January 2020.
The hotels are strategically located along Sheikh Zayed Road, Dubai’s main commercial artery with convenient
access to the Dubai Metrosystem and the city’s major business and leisure attractions.
The 360-key Staybridge Suites Dubai Financial Centre will offer guests the choice between one, two and three-
bedroom suites and studio apartments.
It will also offer facilities such as meeting rooms, a spa with steam, sauna and an outdoor swimming pool, along
with a fitness centre and food and drink options.
The 225-key Staybridge Suites Dubai Internet City will offer one and two-bedroom apartments and studios and an
all-day eatery and living room lounge.
A terrace on the 6th floor features an infinity pool plus there is a fitness centre, a spa with steam and sauna.
Pascal Gauvin, managing director, India, Middle East and Africa at IHG, said: “The extended-stay sector performs
extremely well in Dubai and the Middle East, and we are pleased to be partnering with one of the leading family-
owned companies in Dubai, SRG Holding.
"Given the current project work on Dubai Expo 2020 and influx of business visitors, we are confident that the
Staybridge Suites Dubai Financial Centre and Staybridge Suites Dubai Internet City will be resounding successes.”
Fahad AlRafi, CEO at SRG Holding, added: “We are delighted to partner with a globally renowned hospitality
company such as IHG for Staybridge Suites Dubai Financial Centre and Staybridge Suites Dubai Internet City. This
fantastic brand will give us the opportunity to deliver a service style that is little more relaxed than traditional
serviced apartments in the city."
IHG currently operates 91 hotels with a further 37 in the development pipeline due to open within the next three
to five years.
Source: Arabian Business
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MEGA EVENTS DRIVE DUBAI WORLD TRADE
CENTRE TO NEW HIGH Thursday, April 25, 2019
Dubai World Trade Centre welcomed 3.43 million delegates last year, an increase of four percent on the previous
year, driven by nearly 100 large-scale events.
Sheikh Ahmed bin Saeed Al Maktoum, deputy chairman of the Dubai World Trade Centre Authority (DWTCA) said
the results were driven by 363 MICE (Meetings, Incentives, Conferences and Exhibitions) and business events, up 3
percent over 2017.
Sheikh Ahmed said: “As we remain future-focused with the aim to make Dubai the most innovative city in the
world, DWTC will continue to play a central role in fuelling innovation across all sectors, driving destination
competitiveness, and creating future economic opportunities for both, Dubai and the global community.”
He added: “In 2018, the business has continued to show exceptionally intense resilience in a competitive and
dramatically evolving global environment – delivering strong growth figures across the portfolio.”
The year-on-year footfall increase was a reflection of the strength of DWTC’s entire business portfolio in its ability
to attract 54,717 exhibiting companies from 162 countries, of which 41,147 were foreign exhibitors, he said.
DWTC said it welcomed 1.04 million foreign business travellers to Dubai, representing 41 percent of its overall
participant volumes.
The primary source for attendees continued to be dominated by Saudi Arabia, India, Oman, China, Egypt, Turkey,
United Kingdom, Germany, Italy and Kuwait.
DWTC’s events calendar added 28 new entrants including seven exhibitions, nine associations and 12 conferences
in 2018, of which 13 were categorised as large scale events with more than 2,000 attendees.
Overall, DWTC’s 97 large-scale events attracted 2.5 million participants, 23 of which were classified as mega-
events and attracted over 30,000 attendees per event.
Source: Arabian Business
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RAS AL KHAIMAH INKS KEY DEAL IN
EUROPEAN TOURISM PUSH Friday, April 26, 2019
Ras Al Khaimah Tourism Development Authority (RAK TDA) has announced that it signed an agreement with the
European Travel Agents’ and Tour Operators’ Associations (ECTAA) to boost European outbound tourism to the
emirate.
According to the agreement, the ECTAA pledges to promote Ras Al Khaimah as a "preferred destination" among
the 70,000 travel agents and tour operators across Europe, while showcasing the emirate’s 64km of beaches,
historic forts, scenic mountains and terracotta deserts.
The agreement was signed in Ras Al Khaimah by Haitham Mattar, RAK TDA CEO, and Michel de Blust, ECTAA
secretary-general.
The Preferred Destination Programme involves two semi-annual meetings - the first which will be held in Poland
during the first week of June while the second meeting will be hosted in Ras Al Khaimah in mid-December.
Mattar said: "We have seen significant growth in European markets during 2018, who contributed to double digit
visitor number growth year on year.
"As we look towards our goal of 1.5 million visitors by the end of 2021 and three million by 2025, it’s important
that we maintain this momentum and as such we are keen on building strategic relationships with key players in
the travel and tourism sector to allow us to showcase the unrivaled experiences Ras Al Khaimah has to offer.
"Our incredible experiences such as the world’s longest zip-line have helped put Ras Al Khaimah on the world
map, but we need to continue to showcase the diversity of the destination to our core audiences in this part of
the world."
De blust added: "Ras Al Khaimah is a popular tourist destination amongst Europeans due to its year-round
sunshine, beautiful beaches, rich cultural history and authentic Arabian experiences. We are confident that this
partnership with Ras Al Khaimah Tourism Development Authority will showcase the diversity of the Emirate’s
offering and increase visitor numbers to this beautiful emirate."
Source: Arabian Business
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TOO MANY POST-HANDOVER PLANS WILL
SPOIL DUBAI PROPERTY MARKET Thursday, April 25, 2019
Dubai’s developers should stop misusing post-handover payment plans that stretch to five years and more to
boost sales, according to a top official at Azizi Developments. An over-reliance on this sales tactic could end up
hurting the market and the developers themselves.
“The biggest concern is if some of the buyers cannot keep up with the payments to developers — what happens
then?.” queries Farhad Azizi, CEO. “Does the developer have the right to remove the buyer from his property until
he clears the oustandings? Sure, developers will be holding the title deeds until the full payments are done — but
is that enough?
“If a non-payment issue crops up in the future, it will be a loss-loss for developer and even the other buyers. It will
not remain confined to an issue related to a single property owner defaulting on payments. Developers will not
survive if this is the only way they can sell. How are they going to manage their ongoing cashflow requirements?”
Only a handful of developers in Dubai have so far voiced concerns about how such payment plans are being used
to boost off-plan sales. The vast majority, however, have been running plans that run from three years post-
handover to anything up to 10 years, and this seems to have paid off after Dubai recorded strong first-quarter
sales of more than 4,000 units. Of these, more than 90 per cent had some sort of post-handover scheme. More
recently, some of the deals in the secondary sales market too had the backing of such plans.
“Average payment tenors have so far been lower than five years, but it will increase as developers extend the
terms to as far as 15 years,” said Sameer Lakhani, Managing Director at Global Capital Partners. “Developers had
stepped in to play the role of banks ever since 2015, and thus were able to generate demand for their units. It is
safe to assume that the resurgence in off-plan activity has been on account of post-handover plans.
“But banks and local regulators are likely to scrutinise such activities — the former because it affects their market
share and the latter because they will want to increase the safeguards for investors by looking at developer
balance-sheets for evidence of financial strength.”
Azizi too wants banks to assume a more forceful presence in enabling property sales. Plus, they already have
safeguards in place in case the buyer defaults.
“Banks know what to do if someone defaults — they have a lien on the property and, in a worst-case scenario,
they could even auction off the unit.
“Developers have no such rights when it comes to making debt recoveries — and that’s why I say that it should be
banks that ought to be financing property deals.
“No mature real estate market in the world can operate properly when developers are financing property
purchases. It wouldn’t even work in Afghanistan, which is where the Azizi Group was founded.”
Some developer sources say that unless some changes are made to the current loan-to-value requirements, it
would be difficult for buyers to raise funds from banks. On off-plan sales, the current rules stipulate a down
payment of 50 per cent, while for ready property (or even near-ready), buyers need to put in 30 per cent and raise
the rest from banks. And that even with property values dropping, it is still tough for prospective home buyers to
raise the needed funds from banks.
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This was the gap that developers exploited with their own schemes.
Azizi insists that his company will not under any circumstances engage in this war of payment plans. “At most, we
will offer a few months to a year on completed properties, but that’s it,” he added. “We are not here to do banks’
work. We are working with banks to help arrange financing to buyers, and banks have been quite supportive.”
This year, Azizi will be delivering between 3,000- 4,000 homes, “scattered” around the city. Of these, more than 80
per cent are sold, while for next year, the target is to hand over around 7,000 units.
Overall deliveries in the Dubai residential property market would be about 30,000 units this year, though some
estimates suggest this could even go up to 40,000.
Source: Gulf News
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WARREN BUFFETT'S PROPERTY FIRM SETS
UP SHOP IN DUBAI Sunday, April 28, 2019
Warren Buffett wants to help you buy - or sell - a property in Dubai. Or to be more precise, his company,
Berkshire Hathaway HomeServices wants to do it for you.
The UAE has become the fourth overseas market in the brokerage firm’s - one of the biggest in the US - network,
with the initial focus being on Dubai, and then extending the services to handle properties in Abu Dhabi as well. It
already has a presence in London, Berlin and Milan.
And as it did in those markets, Berkshire Hathaway HomeServices struck a franchise alliance with a local firm, in
this case with Gulf Properties. The timing of BHHS’ entry translates into a vote of confidence for the local real
estate sector, still passing through a phase where it property values and rentals continue to drop.
But the intent is to look at the longer term prospects Dubai can offer, according to Phil Sheridan, CEO at the newly
minted entity. “It will not be about us only trying to get US buyers interested in Dubai or Abu Dhabi,” said
Sheridan. “There were 16,000 overseas buyers acquiring property in Dubai between January to June 2018 for $10
billion. There will be more of them and that’s whom we will target", he added.
“The Berkshire Hathaway HomeServices’ decision should be seen as the extension of a US brand trying to get a
foothold in the Middle East.” The US firm itself came into being in 2013 and has since expanded to 1,450 offices in
its home territory and around 50,000 advisors.
Dubai real estate climate
In the recent past, international property services firms and brokerage houses have been active in Dubai real
estate. There’s Sotheby’s, which has handled some of the most high-profile developments here, and Germany’s
Engel & Volkers has an alliance with Nakheel. The UK’s Knight Frank has been associated with finding buyers for
the super-premium bespoke homes forming part of the Royal Atlantis Resort and Residences project on the Palm.
And just recently, another UK entity bought out the Cluttons’ operations in the Gulf.
“We will represent properties valued at Dh3 million and higher when it comes to listings from individual sellers,”
said Sheridan. “The price range will definitely be broader when we are selling on behalf of developers."
“Yes, Dubai is an “over-brokered” market, and there are far too many around and only serving to confuse buyers.
But there is consolidation happening among brokerage firms, and I see the bigger names in the business getting
bigger", he added.
“While the number of agents active in the market could remain the same or go up, the number of brokerage
businesses is going down. There is no way that many of them can sustain the cost of running a business.”
Commissions rising
Interestingly, broker commissions in Dubai have actually been rising, as developers pad up the incentives to find
buyers in an ultra competitive marketplace. Where 2 per cent used to be the standard, it has inched up to 5 per
cent and plus for those brokerage firms that can land a buyer at the right price.
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Sheridan says that other changes too have happened that will aid the brokerage community… or at least the big
names among them. “You had developers set up their own sales teams and trying to scout for buyers,” he said.
“That hasn’t been working too well, which is why they have come back to offering brokers more incentives.”
Because developers, whatever be their size or ambition, do not want to be caught out by unsold stock at the time
of project completion.
“We will use the practice of exclusive listings, similar to what we see in more developed markets, to provide a
streamlined process for clients,” said Ihsan Husein Al Marzouqi, Chairman of Gulf Properties, in a statement. “The
process of investing in real estate should not be stressful.”
Source: Gulf News
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DUBAI WELCOMED 15.92 MILLION
VISITORS IN 2018 Friday, April 26, 2019
Dubai welcomed 15.92 million visitors in 2018, an increase of 0.8 per cent year-on-year, according to a report
from the Department of Tourism and Commerce Marketing ahead of the Arabian Travel Market, which brings
together 2,800 exhibitors from all over the world at Dubai World Trade Centre from April 28 to May 1.
The emirate was also ranked the world’s fourth most visited city for the fourth year in a row by the Mastercard
Global Destination Cities Index (GDCI) 2018 and topped the list of global cities with the highest international
overnight visitor spend for the third year in a row.
Western Europe was the largest contributor to overnight visitor volumes in 2018 making up 21 per cent, followed
by the GCC and South Asia at 18 and 17 per cent respectively. Dubai Airport retained its position as the world’s
busiest airport with nearly 90 million travellers, while Emirates airline carried over 59 million passengers on an
average of 3,700 flights per week. In total Emirates operated over 192,000 flights, with a fleet of 274 aircraft to its
157 destinations. All this points favourably to Dubai meeting its target of welcoming 25 million visitors by 2025.
Source: Gulf News
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192 COUNTRIES TO TAKE PART IN DUBAI
EXPO 2020 Thursday, April 25, 2019
Expo 2020 Dubai on Thursday confirmed that 192 countries have announced their participation in Expo 2020
Dubai, making it the most inclusive and international Expo ever to be organised.
"We have invited all countries in the world without exception, in line with our commitment to making Expo 2020
Dubai a truly international event and platform for all of humanity," an official spokesperson said.
“For more than 170 years, World Expos have been apolitical events focused on furthering humanity for the
common good through innovation, cultural exchange, creativity and collaboration. We are proud to continue that
tradition,” the spokesperson added.
The Paris-based global body for the mega-events welcomed the organiser’s decision to invite all countries. Vicente
G. Loscertales, head of the Paris-based Bureau International des Expositions (BIE), said that by inviting all
countries of the world to take part, including Israel, “the organisers of Expo 2020 are genuinely reflecting the
universal spirit of World Expos.”
Expo 2020, which runs from October 20 next year to April 20, 2021, is set to attract some 25 million visitors to the
emirate. The Expo 2010 in Shanghai drew 73 million visitors, and Expo 2015 in Milan attracted over 21 million,
according to the BIE.
(With inputs from WAM and agencies)
Source: Gulf News
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MASDAR TO SELL PLOTS ON THE BACK OF
NEW REAL ESTATE LAW Wednesday, April 24, 2019
Masdar on Wednesday said it is open to selling plots to foreign investors in its free zone on the back of a new real
estate law that encourages foreigners to buy plots in select zones.
“This law allows us to encourage foreign investors to come and own the land and start to develop it. This is what
was approved by Abu Dhabi government two weeks ago and we are planning to sell plots to accelerate building in
Masdar City,” said Yousuf Baslaib, executive director of sustainable real estate at Masdar.
Abu Dhabi brought new changes to its real estate law last week to allow all foreigners to own land and property in
investment areas on a freehold basis.
Earlier, ownership was only permitted for UAE and Gulf Cooperation Council nationals, and foreign investors were
limited to 99-year leases.
Baslaib said 1,500 people are currently residing in Masdar City and the number is expected to go up to 2,500 by
the end of 2019 with new apartments being built.
“By end of this year we are going to add more than 950 apartments and 5000 square meter of retail space in
Masdar City to boost our real estate portfolio.”
He was speaking to Gulf News at the opening of a new shopping mall by Majid Al Futtaim Group in Masdar City
with an investment of Dh300 million.
More than 600 companies currently operate in Masdar City, he added.
Meanwhile, Majid Al Futtaim group opened its first shopping mall in Abu Dhabi on Wednesday.
The new mall, named My City Centre Masdar, is Majid Al Futtaim’s 25th shopping mall in the region, Ahmad Galal
Ismail, Chief Executive Officer of Majid Al Futtaim, Properties told Gulf News.
“What distinguishes this mall is the investment we made in sustainability in every aspect like the way the mall is
designed to make sure that it is integrated with the local transport network, encourages ride sharing and the use
of electrical vehicles and even the canopy of the mall is designed to create a micro climate around it to minimise
the use of energy,” he said.
The company is also building another shopping mall in Abu Dhabi named Al Jazira City Centre.
Over the coming two to three years, the group will bring online almost 4 million square feet of GLA (gross leasable
area) starting with a mall in Egypt, in Sharjah and in Oman, he added.
My City Centre Masdar features more than 70 stores across 18,500 square metres of gross leasable area including
Carrefour, Life Pharmacy, Al Jaber Optical, Zaatar w Zeit, Kababji and Cinnabon, among others.
Source: Gulf News
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CHINA'S INITIATIVE IS A GAME CHANGER Sunday, April 28, 2019
The UAE will consolidate its position as a key transit point for Chinese exports to African and European countries
under the Belt and Road Initiative (BRI) as billions of dollars in trade will pass through the region.
Due to its strong potential, the China-Africa Belt and Road Initiative through the Gulf region is termed as the 21st
century Silk Road, benefitting all the countries in terms of fresh investments, job creation, GDP growth and
human capital development.
Led by the UAE, Gulf states have already recognised the importance of African countries and invested in
agriculture, ports, infrastructure, mining and other strategic sectors. Similarly, China also pumped in billions of
dollars in aid, loans and investments in diverse sectors. This will further strengthen the trade on the 21st Century
Silk Road.
Latest figures show that bilateral trade between the Gulf and Africa increased more than nine-fold over the last
two decades and in 2018 it stood at over $65 billion. The UAE-China trade reached $53 billion last year, an
increase of 17 per cent.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler
of Dubai, is currently visiting China to participate in Belt and Road Forum.
Highlighting the strong trade ties between the Gulf countries and Africa, Knight Frank stated that the UAE has
been a key contributor to the trade growth with bilateral trade growing almost 4,000 per cent over the last
decade. Currently, the UAE accounts for over 50 per cent - $34 billion - of the Middle East's trade with the African
continent. The UAE is followed by Saudi Arabia with $16 billion, Kuwait with $1.7 billion, Oman with $1.5 billion
and Bahrain with $700 million worth of trade.
Dubai-based global ports operator DP World is a leading investor in Africa with presence in Egypt, Djibouti,
Algiers, Algeria, Somaliland, Rwanda, Mozambique and Senegal. Similarly, UAE's largest telecom operator etisalat
has international operations in Morocco, Egypt, Mauritania, Mali, Gabon, Burkina Faso, Benin, Cote d'Ivoire, Togo,
Niger and Central African Republic.
According to fDi Markets data, the Middle East has 33 foreign direct investment (FDI) projects accounting for five
per cent of total FDI into Africa, but the UAE is leading the way by a considerable distance and is the ninth largest
investor in Africa with 19 FDI projects in 2017. These projects have created an estimated 74,000 jobs.
Vijay Valecha, chief market analyst at Century Financial, said BRI is primarily aimed at increasing trade and
stimulate the economic growth.
"From the Middle East's perspective, proposed sea route connecting China's coastal regions to Europe via Mena
region is all set to benefit this part of the world. With proposed investments of about $1 trillion, the major sectors
that would benefit include ports, transportation, roads, railways, airports, and telecommunication," he said.
During last year's Ministerial Meeting of the China-Arab States Cooperation Forum, Valecha said, China had
pledged $23 billion in loans and aid to Arab states. "This would envision money flowing into building of new oil
and gas pipelines, railroads, ports and other infrastructure facilities."
"The UAE is set to play a big role in China's Silk Road initiative due to its world-class infrastructure. With over 20
per cent of Arab-China trade already coming to the UAE and more than 25 per cent Chinese exports to Arab world
going through it, the UAE is naturally positioned to reap rich dividends from this initiative," he said.
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"Egypt is another country that is set to benefit considering the strategic location of the Suez Canal along the
maritime routes. Furthermore, cluster of projects have been announced from Chinese side which would see
industrial parks being developed in Oman, Saudi Arabia, Egypt, the UAE along with other major African nations
like Djibouti, Kenya and Ethiopia," he added.
Taimur Khan, research manager for Middle East at Knight Frank, said the UAE-based airlines also fly to 20 African
countries facilitating commerce with the rest of the world.
"A third of the world is accessible within four hours and two-thirds within eight hours of flights from Dubai
International airport. Infrastructure investments and transport links not only strengthen the historic ties between
Africa and the Gulf states but are crucial for the potential of Africa to be fully realised," he said.
Source: Khaleej Times
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UAE IS THE MOST STABLE ARAB NATION Wednesday, April 24, 2019
The UAE is the most stable country in the Arab World in 2019, improving its rating further this year due to
betterment in its public services, economic sustainability and human capital.
The Fragile States Index, released by Fund for Peace, has ranked the UAE at 149 in 2019, improving from its last
year's ranking of 147 (the higher, the better). Among the Gulf states, Saudi Arabia was rated at 93, Bahrain at 113,
Kuwait at 130 and Oman at 133. Globally, Finland, Norway, Switzerland and Denmark retained their ranking as
world's least fragile states in 2019 at 178, 177, 176 and 175, respectively.
The countries have been categorised into eight segments - very sustainable, sustainable, very stable, more stable,
warning, elevated warning, high warning and alert.
The UAE has been placed in the list of more stable countries, rated higher than Spain, Italy, Greece, Malaysia,
Cyprus, India, Russia and China.
Among the sub-indices, the UAE scored highly on public services, economic sustainability, human capital,
balanced development and strong security apparatus among others.
Arshad Khan, managing director, Wealth Monitor, said as the most diversified economy in the Arab World, the
UAE has made tremendous progress in all sectors, ranging from education to infrastructure.
"The country is actively contributing to the security and stability of the Arabian Gulf as well as the wider Middle
East. Over the years, the UAE has built an island of opportunities through developing a range of growth sectors
such as airlines, trade, hospitality, financial services, real estate, construction and logistics," Khan said.
"The rapid progress in these sectors not only enabled the country to attract global talents, it also proved
successful in putting a brake on young Arab brains migrating to other countries in search for better
opportunities," he added.
"The UAE government is continuously adopting forward-looking changes to make the environment even more
stable and sustainable for the expat population to thrive in this country. With Expo 2020 Dubai, a year away we
will see the current infrastructure with new changes resulting in a bigger population calling the UAE as their
home," Khan added.
Billy FitzHerbert, regional editor for the Middle East at Oxford Business Group, said economic stability and growth
in the UAE continues to be underpinned by a strong regulatory framework, good doing-business indicators and an
environment conducive to foreign investment.
"Higher oil prices in 2019 will provide a firm footing from which the government can continue the progress made
in recent years to diversify the economy, with strategic investments set to continue in nascent as well as long
established sectors such as technology and financial services," he said.
"Looking ahead, the Expo 2020 Dubai will provide the opportunity to showcase many of these developments, with
the main challenge there being to ensure that the various infrastructure developments being rolled out in
preparation for the event continue to feed into economic growth after 2020," said FitzHerbert.
When it comes to investing in the UAE to enjoy good returns in the region's safest country, Issam Kassabieh,
senior financial analyst, Menacorp, believes that there is a variety of investment vehicles here in the UAE that suit
different investor preferences whether it is risk appetite, religious etc.
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"There is a developing regulatory frame work that aims to protect investors and help them generate higher
returns from their investments as well," he said.
Moreover, global travel portal Far & Wide has also advised travellers to explore the UAE as it is extremely safe,
with some of the strictest laws to keep crime to a minimum.
The UAE has been popular destination in recent years, due to increasing number of high-end resorts, shopping
and over-the-top grandeur found in Dubai.
"With man-made island offering outdoor shopping and art promenades, Dubai is a fascinating place to explore,"
says Far & Wide.
As per the index, most improved countries in 2019 were Ethiopia, Kenya, Uzbekistan, Nepal, Iraq and Malaysia
among others. While the most worsened countries were Venezuela, Brazil, the UK, Yemen and the US among
others.
Among other prominent countries, India was ranked 74, Pakistan 23, Sri Lanka 46, Bangladesh at 36.
Source: Khaleej Times
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MOHAMMED BIN ZAYED CITY: A QUAINT
AND QUIET SUBURB Thursday, April 25, 2019
MBZ City, a residential community in Abu Dhabi offers all basic necessities to its residents.
Offering a quiet lifestyle and affordable houses, Mohammed Bin Zayed City has turned out to be an ideal area for
many expat and Emirati families.
More commonly referred to as MBZ City, the quaint suburb is located on the edge of Abu Dhabi and it is easily
reachable within a 30-minute drive from Abu Dhabi city, convenient for those commuting to Al Ain, Dubai or Abu
Dhabi Island.
Named in honour of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy
Supreme Commander of the UAE Armed Forces, the 45sq-km residential community has spacious, colourful villas,
ranging from two to six-bedroom units that are either situated independently or within compounds of four to six
homes.
The area also has mid-rise residential buildings, gardens and recreational facilities. And most of the homes have
their own swimming pools, private parking and large gardens.
The villas are often rented out as one unit, especially to local families and high-income expats, but others are split
to accommodate middle-income households.
"I am after peace and quietness, and this is why I chose to stay in this area of Abu Dhabi," said Pakistani expat
Tareq Mohammed.
"I have stayed here with my family for more than six years now. And I must say the area offers a peaceful, secure
environment for families."
Shopping is also not a worry for the residents, as they have modest shopping centres within the neighbourhood.
The Mazyad Shopping Mall, for one, may not be a fancy leisure spot but it does cover a family's necessities. It has
a supermarket, a pharmacy, sports shop, gym, café, food court and other decent dining outlets. The mall has
some hotel apartments, too.
Capital Mall, located near Mazyad, is another shopping option.
And if something can't be found in those two malls, families can easily head to the nearby commercial area of
Mussafah Shabia. This hub hosts a variety of restaurants, coffee shops, pharmacies, gyms, schools and places of
entertainment.
There are also several clinics and hospitals in the area for the residents' healthcare needs.
For Indian expat Farooq Abdul Qadr, convenience and affordability set MBZ City apart from other residential
districts. Parking spaces are free and education institutions are everywhere, he said.
"My son goes to an Indian school located just a few minutes away from my home. It's convenient for us." Qadr
said.
Within the city, there are nurseries and schools offering different curriculums - Indian, British or the UAE. It's also
home to the Abu Dhabi campus of Al Ain University.
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When it comes to rent, Qadr considers the place "budget-friendly". "I came here in 2017 because the rents are
lower compared to the other places in the city. I am paying Dh35,000 annually for a one-bedroom apartment," he
said.
Renting a studio in MBZ City costs Dh25,000 annually, while one and two-bedroom units range from Dh35,000 to
D65,000. The annual rent for a four-bedroom villa, on the other hand, can go up to Dh150,000, while five and six-
bedroom villas are priced between Dh160,000 and Dh200,000.
Must know
1-Entirely residential
The area is almost completely developed, with only a few villas, apartment buildings and residential plots under
construction.
Residents can choose to live in spacious, colourful homes with two to six bedrooms, or in mid-rise residential
towers with a host of recreational facilities.
2-Shopping needs covered
MBZ City may not be home to big, fancy malls but it has modest shopping centres that cover a family's
necessities. One of them is the Mazyad Shopping mall, which has a supermarket, a pharmacy, a sports shop, a
gym, café, food court and other decent dining outlets. Capital mall is another shopping option.
3-Plenty of schools
Considering the number of educational institutions in the area, it's easy for families with school-age children to
choose to live in MBZ City. There are nurseries, as well as schools offering different curriculums such as Indian
and British. It also hosts the Abu Dhabi campus of Al Ain University.
Source: Khaleej Times
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With over 30 years of Middle East experience, Asteco’s
Valuation & Advisory Services Team brings together a
group of the Gulf’s leading real estate experts.
Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,
Northern Emirates, Qatar, and the Kingdom of Saudi
Arabia not only provides a deep understanding of the local
markets but also enables us to undertake large
instructions where we can quickly apply resources to meet
clients requirements.
Our breadth of experience across all the main property
sectors is underpinned by our sales, leasing and
investment teams transacting in the market and a wealth
of research that supports our decision-making.
John Allen BSc MRICS
Executive Director, Valuation & Advisory
+971 4 403 7777
JohnA@Asteco.com
Jenny Weidling BA (Hons)
Manager, Research & Advisory
+971 4 403 7789
JennyW@Asteco.com
VALUATION & ADVISORY
Our professional advisory services are conducted by
suitably qualified personnel all of whom have had
extensive real estate experience within the Middle
East and internationally.
Our valuations are carried out in accordance with the
Royal Institution of Chartered Surveyors (RICS) and
International Valuation Standards (IVS) and are
undertaken by appropriately qualified valuers with
extensive local experience.
The Professional Services Asteco conducts throughout
the region include:
• Consultancy and Advisory Services
• Market Research
• Valuation Services
SALES
Asteco has established a large regional property sales
division with representatives based in UAE, Saudi
Arabia, Qatar and Jordan.
Our sales teams have extensive experience in the
negotiation and sale of a variety of assets.
LEASING
Asteco has been instrumental in the leasing of many
high-profile developments across the GCC.
ASSET MANAGEMENT
Asteco provides comprehensive asset management
services to all property owners, whether a single unit
(IPM) or a regional mixed use portfolio. Our focus is
on maximising value for our Clients.
OWNER ASSOCIATION
Asteco has the experience, systems, procedures and
manuals in place to provide streamlined
comprehensive Association Management and
Consultancy Services to residential, commercial and
mixed use communities throughout the GCC Region.
BUILDING CONSULTANCY
The Building Consultancy Team at Asteco have a
wealth of experience supporting their Clients
throughout all stages of the built asset lifecycle. Each
of the team’s highly trained Surveyors have an in-
depth knowledge of construction technology, building
pathology and effective project management methods
which enable us to provide our Clients with a
Comprehensive Building Consultancy Service.