Masdar Projects January 2009

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    January 2009Issue No. 21

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    Abu Dhabi Polymers Park looks for $100m joint venture partner

    Abu Dhabi Polymers Park (ADPP) is in talks with potential jointventure partners over investments worth around Dh 367 million

    (US$100m).

    Some 30 per cent of the area of the park has already been taken up, at atotal investment ofDh 1 billion (US$272m).

    "We are targeting to go with a couple of joint venture partners, targetinginvestments of about US$100m," says ADPP vice president MohammedAl Qazmy. "We have initiated a couple of discussions with potential

    partners which will be announced within 2009." Forming an alliancewith a major international logistics company is one of ADPP's top

    priorities alongside technical support services.

    Al Qamzy says that 30 per cent of the total 4.5 square kilometer park within Abu Dhabi Industrial City has already been

    allotted. "Today I am happy to say that 30 percent of the allocated areas of the polymers park has already been confirmed toinvestors coming within the polymer park. This is only six months [since the project was announced]."

    ADPP is a subsidiary of Abu Dhabi Basic Industries Corporation (ADBIC) and is expected to generate up to $4.5bn ininvestment from the plastics conversion industry by 2015.

    If the project goes to plan, it will be the world's largest plastics conversion cluster, producing more than 1 million metrictonnes a year of plastics in 50 conversion units by 2012.

    Earlier in January, ADPP completed a joint study with Danish logistics provider Maersk on the feasibility of providingsupply chain services at the park, with results expected to be published Q2 of 2009.

    (MEED 14/01/09)

    Khalifa Fund to finance 100 new businesses in Abu Dhabi

    Abu Dhabi-based Khalifa Fund will continue to inject funding into 100 new projects this year in smalland medium enterprises (SMEs) and growth sectors such as manufacturing and tourism in the emirate.

    Dr. Halah El Sokari, Director of Strategy and Planning for the Khalifa Fund, said: "Despite the financial crisis and businessslowdowns in other places in the region and the world, nothing has changed in our five-year strategic plan.

    "We are continuing to inject funding into a 100 new SME projects this year and plan to go on doing so every year over thenext five years. We will also be introducing an equity participation model in the form of a venture capital fund. We wouldlike to promote enterprises in the priority sectors outlined in the Abu Dhabi Vision 2030, that are actively managed and

    operated by UAE nationals."

    El Sokari said the fund was planning ahead to identify future opportunities for SMEs, particularly those arising as a result ofthe major industrial push and growth that the emirate is planning.

    The Khalifa Fund has three programmes. The first Khutwa means 'first step' in Arabic offers financing of up toDh250,000 for UAE nationals in remote areas or who work from their homes. The second is called Bedaya means'beginning' in Arabic offers a minimum of Dh250,000 and a maximum of Dh3 million to start SMEs. The third, Zeyada meaning 'additional' in Arabic offers funding for businesses which have already been set up but are in the early stages, andhave goals to expand.

    The funding programmes have been set up to address the gaps in the market when it comes to financing the inception andearly stages of a business. "We are not here to take over the role of the banks or financial institutions, though," El Sokari said.The Fund is open for UAE nationals who are in the early stages in their business.

    (B24/7 10/01/09)

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    Abu Dhabi to press ahead with green city

    Abu Dhabi will press ahead with a US$22 billion project to build a green energy city taking advantage of the fallout of theglobal crisis. The world's first carbon-neutral, zero-waste Masdar City due to be completed by 2016 is seeking to benefit

    from cost reductions, a lack of business opportunities elsewhere and strong government support.

    "Because of the global crisis, there are no opportunities or fewer ones for green companies in other parts of the world andMasdar City is becoming attractive as it is one of the few markets not impacted," said Khaled Awad, director of propertydevelopment, Abu Dhabi Future Energy Company.

    "We will not scale back on our spending because there have been major cost reductions in one year and our project cost isalso going down," he said, adding that raw material and other development costs are falling steadily. The Abu Dhabigovernment and its funding have guaranteed cash flows to the property development side.

    The project is set to create 50,000 jobs in Masdar City.

    "On the macro side, Masdar city will add 2 % to Abu Dhabi's GDP and it will also add to revenues onthe financial side."

    (TR 18/01/09)

    Palm Monorail to start service in April 2009

    Nakheel hosted a delegation from the Roads and Transport Authority(RTA) on the Palm Monorail's first official journey, and the developerhas confirmed that the service will open to the public in April this year.

    The delegation, led by RTA CEO Abdulmajid Al Khaja, travelled fromGateway Station at the trunk of the Palm Jumeirah to Atlantis Aquaventure Station at the other end of the track. The 5.45km trip took eightminutes.

    "On the first official journey between the Gateway and Atlantis stations,representatives from Nakheel and RTA were able to experience thisfabulous example of modern transportation, design and construction,"said Nakheel CEO Chris O'Donnell.

    "We have been working very closely with our strategic partner the RTA since the Palm Monorail's inception. Our co-operation with the RTA extends as far as a joint ticketing system that will enable a holder of an RTA fare card to pay for

    journeys on the Palm Monorail."

    "Together Nakheel and the RTA have focused on delivering a service, which will enhance the other transportation projectscurrently under way in Dubai." NEC has a team of about 500 professionals and skilled workers leading its projects in theUAE. To support its growth strategy, the company has already mobilized manpower and machinery to the UAE including 22heavy-duty rigs, 18 cranes and 15 Vibro Hammers the first of its kind by a new entrant to the market, Antony David said.

    (KT 02/01/09)

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    Al Gharbia 2030 a future rooted in tradition

    The road to the Western Region is long; the view, a featureless, austere landscape.

    Containing the countrys highest sand dunes and richest oil reserves, this area, now called AlGharbia, remains one of the UAEs least developed areas.

    As such it offers a virtual blank canvas to the planning experts now in the process of putting together Plan Al Gharbia 2030,the document that will guide all development in the Western Region, ensuring it falls in line with the emirate-wide Plan AbuDhabi 2030.

    Launched in September 2007, the 2030 plan contains guidelines and a framework for all elements of urban development, towhich every new building project must adhere. In the case of Al Gharbia, its authors must tread a fine line allowingresidents the opportunity to enjoy the benefits of a thriving modern existence while preserving the natural wonders thatdefine the region.

    Held in November, the first Plan Al Gharbia 2030 brainstorming workshop established a preliminary framework, whichwill be presented to the Crown Prince later this month, after which a series of public consultations will take place in theregion.

    The Abu Dhabi Urban Planning Council (UPC), the Western Region Development Council (WRDC) and the Western RegionMunicipality are among the bodies drawing up the plan. Adnoc also plays a significant role in its creation, employing a large

    proportion of working Al Gharbia residents. A 60,000 square kilometer area, the Western Region possesses fragile coral reefsand other natural areas including the Sir Bani Yas nature reserve and the Liwa Oasis.

    Mohammed Ebrahim al Hosani, acting director of regional development at the WRDC, said one of the greatest challengesin creating the Al Gharbia 2030 plan would be achieving a balance between preserving ecological integrity and intenseurbanization. The area is so huge and the potential in Al Gharbia for the power industry, oil and gas, energy and tourism is

    so high. But we also have the reserved natural areas, a critical zone; the [ Al Gharbia 2030] plan wont limit thedevelopment that can happen there, but it will have to guide it.

    Some of the most recent developments in the region have been tourist destinations, namely Sir Bani Yas Island and Qasr AlSarab a five-star desert retreat conceived by the Abu Dhabi Tourism Development and Investment Company.

    Mr. Al Hosani said tourism would be an important element of the development plans but that basic infrastructure needswould have to be met first. We need community services and infrastructure on an urgent basis, he said. The plan willoutline the criteria for all the development, not just technical, financial and environmental, but also social, cultural criteria.

    Falah al Ahbabi, general manager of the UPC, said Al Gharbias development process would be slower than in the rest ofthe country. The scale of developments will be lower than in Abu Dhabi or even Al Ain, with mostly low-density projects.

    Traditionally, few private sector jobs have been available in the region. The population is only around 120,000, a numberauthorities hope to increase as the development process gets underway. By 2017, they hope to attract about a million visitors

    each year. Its designers say the Plan Al Gharbia 2030 will encourage public-private partnerships and outsourcing ofservices to reinvigorate the local economy and increase the quality of life for residents.

    Job creation will focus on the construction, oil and gas and agriculture industries as well as on public administration andaffordable tourism. Bucking the national trend of building one luxury tourism destination after another, Al Gharbiaauthorities want to establish the area less as an exclusively high-end destination and emphasize its natural assets. Plans arealso in place to market Al Gharbia as a destination for UAE residents second homes. Rather than speeding up the slower

    pace of life in the Western Region, this characteristic will be marketed as one of the advantages of life in this part of theemirate.

    "Quality of life is the ultimate goal the PlanAl Gharbia 2030 needs to achieve," said Mr. Al Hoosani.

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    Daily Seminar on Real Estate at IREIS 2009 Show

    A daily seminar on the real estate sector will be organized during the upcoming IREIS 2009 real estate and investment showheld in Abu Dhabi in January.

    The seminar will cover the latest developments in the real estate sector in the UAE and at regional and international levels,said Dome, which is organizing the January 27-29 exhibition under the patronage of H.H. Dr. Sheikh Sultan bin Khalifa binZayed Al Nahyan at the Abu Dhabi National Exhibition Centre.

    "Dome decided to hold this seminar on a daily basis during the exhibition given the importance of discussing such a subjectby experts and chief executives of major property developers in the UAE and the region," said Antoine George, ExecutiveDirector of Dome.

    "This show and the accompanying seminar are of utmost significance at this time for all those concerned with the real estatesector, mainly property developers, contractors, suppliers and others." George referred to the recent measures taken by theUAE to ensure sufficient liquidity to local banks and to mergers among real estate financing companies, which he said wouldmake them more capable of dealing with financing requirements in this important sector in the coming stage.

    News about an expected growth in liquidity in the first quarter of 2009 will give a strong push to the financing activities inthe real estate sector in Abu Dhabi and UAE. The recent correction in the real estate sector has created significant investmentopportunities, which will be underscored during IREIS 2009.

    "IREIS 2009 will be an opportunity to see the latest projects in the real estate sector in the UAE and the entire region," Domesaid. "Through this strong participation by many companies, the event is expected to be an ideal place for signing major

    property deals given the fact that this show is the first event specialized in finalizing deals between property developers,investors and end users."

    (WAM 04/01/09)

    Al Fajer Properties Announces Orders for Dh 245 Million Worth of Aluminum and Glass

    Al Fajer Properties (AFP) announced orders worth Dh 245 million (US$66.8m) for aluminum and glass for its world classJumeirah Business Centre (JBC) towers projects.

    AFP is the premier developer in the Dubai World DMCC Jumeirah Lakes Towers (JLT) community and is the onlydeveloper to include a 5 floor atrium within the lobbies of its towers. JBC, situated within a free-zone, offers high endcommercial properties attracting both large local companies and multi-national organizations from around the world.

    In line with Dubai's vision for greener more environmentally friendly buildings, AFP is also pleased to announce that byusing the latest technologies and materials, its latest towers will be in compliance with the Green Building Regulations

    promoting a brighter, cleaner Dubai.

    Work is well underway on its Phase 1 projects with aluminum and glass materials expected to arrive early February 2009allowing cladding to start immediately. For Phase 2 (including the Ebony and Ivory project - a themed series of 2 all whiteand 1 all black specialty glass cladded collection of towers) the excavation, dewatering, shoring and piling has beencompleted and the green consultant has recently been appointed to ensure all requirements of the Environment, Health andSafety department are met.

    "Under the terms of the order, AFP has placed a contract value of approximately Dh 154 million (c.US$42m) with ShenyangYuanda Aluminum Industry Engineering Co. Ltd. (Dubai Branch) for six of its nine towers. The contract for the remainingthree towers in the office chain series has been awarded to Reem Emirates Aluminium at an estimated contract value ofDh91 million (c.US$24.8m).

    (MW 10/01/09)

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    Nathalie Crinire Wins Louvre Abu Dhabi Design Competition

    Agence France-Museums, in partnership with Abu Dhabi's TourismDevelopment & Investment Company (TDIC), today announced that the

    firm of Nathalie Crinire has been selected to create the exhibitiondesign for the Louvre Abu Dhabi, one of the five major institutions being planned for Abu Dhabi's Saadiyat Island Cultural District.Nathalie Crinire was awarded the project through a competition amongsix invited design firms.

    In addition to conceiving the design of the permanent collectiongalleries and integrating it with the architectural design by Jean Nouvel,

    Nathalie Crinire will develop a graphic identity for the Louvre AbuDhabi and design the lighting, curatorial and directional signage, andmultimedia elements.

    The exhibition design competition was organized by Agence France-Museums, which is implementing the agreement

    between the governments of France and Abu Dhabi that has established the Louvre Abu Dhabi, and TDIC, the developer ofSaadiyat Island into a signature cultural, leisure, and residential destination.

    The competition jury panel was chaired by His Excellency Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman of TDIC, andincluded Henri Loyrette, director of the Muse du Louvre; Bruno Maquart, general director of Agence France-Museums;Jean Nouvel, architect; Lee Tabler, CEO of TDIC.

    The Louvre Abu Dhabi is being developed through a 30-year accord between the governments of France and Abu Dhabi.Scheduled to open in 2012/2013, the Louvre Abu Dhabi will present important archeological artifacts and major works offine arts and decorative arts from cultures around the world and from all historic periods.

    "In partnership with the French Government and Agence France-Museums, we are moving steadily forward in realizing the

    Louvre Abu Dhabi," says H.E. Sheikh Sultan Bin Tahnoon Al Nahyan. "We look forward to continuing this momentum andbreaking ground for the museum in the first half of 2009."

    The 260,000-sq.-ft. museum will include 65,000 sq. ft. of galleries devoted to permanent installations and 22,000 sq. ft.reserved for temporary exhibitions. The exhibitions in the permanent galleries will be drawn from the collections of theLouvre and other eminent French public museums and cultural institutions, including Centre Pompidou, Chteau deVersailles, Muse dOrsay, Muse Rodin and Bibliothque Nationale de France. Over time, the Louvre Abu Dhabi will alsodevelop its own distinctive permanent collection.

    Nathalie Crinire has conceived of a design that will bring these works to life, while merging seamlessly with an architecturethat Jean Nouvel has described as an "island on the island" -- a micro-city of small buildings, ponds and landscaping, coveredwith a lacy dome "which lets a diffuse, magical light come through in the best tradition of great Arabian architecture."

    The other firms invited to participate in the competition by Agence France-Museums included Adrien Gardre, AntoineStinco, Reza Azard Socit Projectiles, Adeline Rispal, and Didier Blin.

    (TN 02/01/09)

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    Aldar appoints Sami Asad as COO

    Aldar Properties PSJC, Abu Dhabi's leading property development, investment andmanagement company, today announced the appointment of Sami Asad as Chief OperatingOfficer with immediate effect.

    Sami has been acting COO since October 2008, having originally joined Aldar as TechnicalDirector in September 2008. Previously he was Deputy Vice President of Projects at DolphinEnergy for 5 years and before that occupied various managerial positions at ADNOCcommenting on the announcement, John Bullough, CEO of Aldar, said:

    "Over the past four months, Sami has demonstrated exceptional capabilities and I amdelighted that he has accepted this position. He will be a major asset to the Aldar executiveteam."

    (Ameinfo 11/01/09)

    Aldar board to meet on January 28

    Aldar Properties, Abu Dhabi's biggest real estate developer by market capitalization board of directors will meet on January

    28 to take stock of the company's financial performance in 2008.

    "At this meeting, the board of directors will consider, and if appropriate, approve the financial accounts of the company forthe period January 1 to December 31 2008," Aldar said in a notice to the Abu Dhabi Securities Market, where it is listed.

    So far, Aldar has not slowed down or put on hold any of its projects due to the global financial crisis. Neither has it laid offstaff to cut costs.

    (GN 07/01/09)

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    Navayuga to Expand to Dubai, Oman

    Navayuga Engineering Co. (NEC), one of the leading construction companies headquartered in India, is planning to expandto Dubai and Oman this year, after consolidating its presence in Abu Dhabi.

    The company which forayed into the UAE market in early 2008 had won two major contracts for infrastructure work ofprestigious City of Lights project in Abu Dhabi in 2008. The company has already completed work on the first project, and iscurrently undertaking another project work for the City of Lights.

    We will focus on the Middle East market to attain a projected turnover of Dh 800 million by the end of the New Year. NECalso plans to diversify the business to include infrastructure related works such as flyovers, underpasses, and metro andmarine works. Antony David, General Manager, Navayuga.

    Emphasizing that the successful completion of the first project has reiterated NECs competencies in delivering projects asper schedule, he said the key to construction works in the current financial scenario is to optimize resource use efficiency andmaximize productivity through economies of scale. NEC has a large roster of modern equipment and skilled manpower, and

    by rationalizing the use of resources, NEC have been able to contribute to the overall developmental efficiency of theprojects we undertake.

    NEC has a team of about 500 professionals and skilled workers leading its projects in the UAE. To support its growthstrategy, the company has already mobilized manpower and machinery to the UAE including 22 heavy-duty rigs, 18 cranesand 15 Vibro Hammers the first of its kind by a new entrant to the market, Antony David said.

    (KT 02/01/09)

    F1 circuit ready by summer 2009The first phase of Yas Island, which includes the Dh1.46 billion (US$397 million) Formula One grand prix circuit, will beready by the summer 2009, according to Aldar Properties, the projects developer.

    All of the Yas Island phase one will be finished this summer, with obviously the Formula One grand prix circuit, theinfrastructure, seven hotels, a major marina, the yacht club, a golf course, said John Bullough, the chief executive ofAldar. The Yas Marina will be flooded in the spring. Everything is going to be finished well ahead of the race.

    Abu Dhabi is the second city in the Middle East to host a Formula One race, after Manama in Bahrain. The Abu Dhabi

    Grand Prix will be held on Nov 1.

    The man-made island will also house a Ferrari theme park and a water park. The project is located opposite Al Raha

    Beach, another flagship development of Aldar. Referring to the developers other project, Mr. Bullough said phases underdevelopment would be completed according to schedule but he suggested that further phases would take more time due tomarket changes.

    Construction costs have dropped significantly recently, with the price of steel rebar falling from Dh6,200 a tonne in Julyto about Dh1,800 on todays market.

    (TN 22/01/09)

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    DIP launches luxury 'Sunset' development

    Dubai Investment Properties (DIP) launched a multi-million 'Sunset' mixed-use development project in Dubai.

    The Sunset development will include a high-end luxury shopping mall, boutique offices and lavish residential apartments inthe heart of Dubai, along beach road in the upscale Jumeirah 3 neighborhood and stretching out into the waters of theArabian Gulf.

    "Sunset will be a unique development combining the best in architecture and the latest 'green' technology initiatives. It will bea real piece of art, where sophisticated, intellectual and brand-conscious customers can indulge their tastes for opulence andhigh living, with exclusive facilities and services. Sunset will set new standards in shopping in Dubai," says Francois Faure,Executive Director, DIP.

    With the launch of Sunset, Dubai Investment Properties plans to set a new parameter in luxury retail experience in Dubai.

    Sunset Mall will host over 97 outlets with a strong mix, including new high-end retail store concepts as well as international

    boutique brands.

    The mall will also offer customers VIP services and fine dining experiences with gourmet food restaurants, all of which willoffer panoramic views of the Arabian Gulf.

    (KT 02/01/09)

    Sweet Homes awards Dh450 million contract

    Sweet Homes, a leading UAE-based developer and total solutions provider to the real estate sector, has awarded a Dh450million contract to Sharjah-based Master Civil Construction Company for the construction of Towers B10, B14 and B15 -

    three out of the nine towers comprising its Dh1.7 billion Rainbow Towers project.

    The move follows the completion of a Dh12 million shoring and excavation contract undertaken by Piling Tech LLC for theinitial groundwork of the three towers.

    The high profile residential project in Emirates City in Ajman marks the developer's first project in the UAE, and is set forcompletion by the last quarter of 2010.

    The contractor has committed to complete construction within 24 months through its team of engineers, project managers,site supervisors, quantity surveyors and construction workers that have been assigned to the project. The developer has alsonamed Eng. Adnan Saffarini Office, a leading international engineering consultancy firm, as the design and supervisionconsultant for the project.

    Rainbow Towers is expected to bear the hallmark of the contractor's high quality construction, evident in ongoing projects.

    "Rainbow Towers is our first real estate venture and it is only fitting that we partner with the best and most experienced firmsto ensure the implementation of best-of-breed industry standards in our projects' construction processes," said Fahad SattarDero.

    In addition to the development's highly accessible location and top-notch facilities, it has also caught the attention ofinvestors through its unique and highly flexible four-year self-financed payment scheme.

    (GN 06/01/09)

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    Aldar to commission 7 hotels on Yas Island

    The Abu Dhabi Tourism Authority, which regulates the hotel industry in the emirate, said that Aldar Properties willcommission seven hotels on the Yas Island by November 2009.

    The commissioning will be in time for the UAE capital hosting the final round of the 2009 Formula One Grand Prix duringthe month.

    "The hotels - four 5 star properties, one 4 star and two 3 star - together will boost Abu Dhabi's accommodation inventory by2,298 rooms and its food and beverage stock by 30 outlets, including 20 individual restaurants."

    Aldar is working towards meeting the objective of opening the hotels for the Formula One Grand Prix. The construction ofthe hotels on the Yas Island started during the last quarter of 2007 and are on track to complete them on schedule."

    Aldar development of real estate projects across its portfolio in the emirate of Abu Dhabi is estimated to have exceededDh264.47 billion ($72 billion) in terms of value with the entire portfolio slated to be completed and delivered over a periodof seven to 10 years.

    Abu Dhabi is developing itself as a major global tourist destination and expects its tourist arrivals to increase to 2.7 millionvisitors annually by 2012.

    The emirate is expected to have 25,000 hotel rooms by 2013 to accommodate the projected influx of the tourists, two yearsahead of the official target.

    (GN 27/01/09)

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    Major Companies Mentioned In Publication

    WebsiteFaxTelCompany

    www.aldar.com02 641750102 6964444Aldar Properties

    www.nakheel.ae04 390331404 3903333Nakheel

    www.tdic.ae02 444311102 4443000Tourism DevelopmentInvestment Company

    www.alfaraaproperties.com04 396444804 3961118Al Faraa Properties

    www.arabtecuae.com04 340400404 3400700Arabtec Construction

    www.majidalfuttaim.com04 294099904 2949999Majid AL Futtaim

    www.tameer.net04 601061104 6010600Tameer

    www.etastar.com04 262329104 2687222ETA Star

    properties.ae-www.dubai04 390464004 3900094Dubai Properties Group

    www.up.ae04 885266604 8851555Union Properties

    www.adih.ae02 681184402 6811233ADIH

    www.mizin.ae04 375240004 3752400Mizin

    www.dasholding.ae02 667777402 6677774East & West Real Estate

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    Major Companies Mentioned In Publication

    WebsiteFaxTelCompany

    www.dubailifestylecity.ae04 349044404 3490444Dubai Lifestyle City

    www.deyaar.ae04 329616304 3297667Deyaar

    www.meraas.com04 5114995(800) 637227Meraas Holding

    www.meraasdevelopment.ae04 2247362(800) 7834Rufi Real Estate

    www.difc.ae04 362233304 3622222DIFC

    www.abyaar.com04 423215004 4232100Abyaar Real Estate

    www.aqaar.com06 742224306 7422242Aqaar Real Estate

    www.mayaden.com+9654752507+9654759999Mayaden