HEALTH RESORT M E D ICA L SPA D u ba i 2 0 2 0 An investment and development project in the city of Health Resort - TherapeuticSpa Dubai - 2020

2 1- Introduction

3 Location of the emirate of Dubai in the United Arab

The most prominent landmarks of the touristic Emirate of Dubai

4 General information about the city of Dubai:

The emirate of Dubai is one of the emirates of the , and is considered the second largest emirate in the Federation after the Emirate of Abu Dhabi, with an area of 4,114 km2, which is equivalent to approximately 5% of the Emirates’ area. The emirate’s population of 2,262,000 is the largest among the emirates of the U.A.E, of whom 214,000 are citizens and the rest are foreigners, which equates to 9.5% of the total population. Dubai borders both Abu Dhabi in the west and Sharjah in the east, and is considered the economic capital of the United Arab Emirates, and has developed significantly during the past years are under the jurisdiction of Sheikh Mohammed bin Rashid Al Maktoum. The free and active economy in the emirate and the lack of a tax system have played a major role in attracting investors from all over . The emirate of Dubai lies between Abu Dhabi and Sharjah. The Emirate of Dubai is distinguished by its economic income that does not depend mainly on oil revenues, unlike the rest of the Arab Gulf countries, where the depends on trade, real estate and financial services as well as on tourism. Oil and gas make up 6% of the total economy. The great economic and architectural renaissance in Dubai has brought it a global reputation leading it to occupy a world-class position.

Geographically and Demographically:

In addition, it is the most densely populated city in the United Arab Emirates. It is located on the Southeastern coast of the Arabian Gulf and is one of the seven emirates that make up the state. Abu Dhabi and Dubai are the only Emirates who have veto power over sensitive issues of national importance in the country's legislature. Dubai falls on the northern coast of the emirate and heads the urban area Dubai-Sharjah-Ajman. Dubai was set to host the Expo 2020 and it has emerged as a global city and business hub in the Middle East. Dubai is located on the coast of the Arabian Gulf of the United Arab Emirates, at approximately sea level. And Dubai shares borders with Abu Dhabi in the South, Sharjah in Northeast, and Sultanate of Oman in the Southeast. And surrounding Hatta, a small enclave belonging to the emirate, from three sides are Oman and Ajman (in the West) and Ras Al-Khaimah (in the North), and the Arabian Gulf borders the emirate's Western coast. 5 Dubai City’s Climate

The climate in Dubai is warm and sunny for its proximity to the Tropic of Cancer’s climate. In the winter season,temperaturesin thedaytimereach25degreesandatnight,nearthecoastalareas,toarateof12- 15degreesandin thedesertto5degreeswhichisrelativelycoolinthatperiodoftheyearandthehumid atmosphereprevailsnear coastalareasthatreach50-60%humidity.

Insummer,theseasonis consideredveryhotmostdays,andrainfalsduetoheatandhumidityinthe monthsofDecembertoMarchduringtheyearandcanextendtothemonthofJune.Themonthof Januaryisconsideredtherainiestmonthoftheyear,withanaveragerainfal of35mmandtheweather becomesdryinMay.

6 Tourism in the City ofDubai Dubai became famous for the Dubai Shopping Festival, which is held every year since 1996. Dubai includes many commercial centers and tourist facilities. Saudi tourists topped the list of guests of hotel establishments in Dubai, during 2011, after they numbered more than 873,000 guests, and the Indian guests came in second place with more than 702,000 guests, while the United Kingdom came in third place with a total number of guests amounting to 643,000, putting the guests of each of Iran and America in the fourth and fifth places with about 476 and 462 thousand for each of them respectively. According to data from the Department of Tourism and Commercial Marketing in Dubai, the total number of visitors to Dubai reached 14.2 million visitors in 2015; 3.3 million visitors from the Gulf Cooperation Council countries to Dubai, while the number of Asian guests (excluding the Indian subcontinent) reached 1.2 million visitors, and 3 million visitors came from countries of Western Europe, Russia and the Baltic region brought 510,000 visitors, and from the Americas one million visitors, and Australia and the Pacific region brought 222,000 guests.

Transportation:

Dubai is characterized by the presence of a huge land transport network represented by highways, which are one of the widest roads in the world, as well as a network of bridges and tunnels inside and outside and on both sides of the creek connecting between parts of Dubai was built according to the latest international standards, in addition to a huge fleet of advanced buses and taxis. The most important streets in Dubai: Al Ittihad Street (one of the first streets linking Dubai to Sharjah), Sheikh Zayed Street (linking Dubai to Abu Dhabi, and is characterized by the presence of several projects on it and the lining of skyscrapers over it), Emirates Street (that connects Dubai, Sharjah and Abu Dhabi, and it is considered one of the streets that will witness feats in urban projects.) 7 Air Transport: Dubai built nearly 40 years ago a small airport at that time, but with the rapid and steady development of the emirate, its current airport expanded to become among the largest in the world. And in 2009, Dubai opened the first phase of the largest airport in the world which is part of an integrated project called (Dubai World Central). Dubai also owns the largest airline in the world, which is Emirates Airlines, in addition to the economic company that is .

Railways: The first metro network was opened in Dubai on September 9, 2009 and has relied on more than 50 stations, which is the first of its kind in the region. Two years after the opened, the opened. The is the longest automatic metro in the world, works without a driver, and is a friend to the environment as it is completely electric. There are special places for women and children only, and there are also places for people with special needs.

Shipping: Dubai is characterized by a water tongue entering the land called the creek of Dubai. Previously, people moved between the two banks of the creek by swimming or walking when the water level decreased before the expansion of the creek, and after the expansion of the creek, a small boat was added so that people can move between the two sides of the creek. And in the past few years, newer methods of maritime transport have been added to Dubai; the water bus, the water taxi and Dubai ferries have now been launched. 8 The Waterfront with the WaterTaxi Dubai Metro

9 The Content of the Proposed General Site for the Establishment of the Project in Mushrif Park - Dubai

10 Project Location and Introduction to the GeneralSite

Mushrif Park is a family-oriented park in Dubai, U.A.E, placed on an area of 5.25 km2. It is located in the Eastern part of the city (near Al Khawaneej), only 16 km away from the traditional center of Dubai. The Park was established in the early 1980's by Dubai Municipality, and was greatly expanded and renewed in 1989.

The entrance fee to Mushrif Park is 10 dirhams per car. To use the pool, adults pay 10 dirhams while children pay 5 dirhams. The park is open daily from 8:00 AM until 11:00 PM.

11 Suggested Location – Mushrif Park,Dubai

12 Suggested Location – Mushrif Park, Dubai

13 Suggested Location – Prevailing Winds Direction Mushrif Park, Dubai North and Seasonal Winds

Prevailing Winds Seasonal Winds

Sun Movement

14 Accessibility to the project

Main Road

15 The total area allocated for the project as proposed is 49,000 square meters

16 Project Idea

17 The therapeutic medical resort is an investment in the health field and aims to provide various medical services aimed at improving public health and providing a natural environmental environment for relaxation on a personal level through a specific medical care program with well-studied and highly professional treatment sessions.

It differs from the quality of services provided by regular treatment centers by containing specialized facilities that enhance the intended therapeutic idea and the goal of visiting this integrated medical resort, so that the project becomes a comprehensive tourism destination with the quality of the services provided through studying each individual’s case and analyzing it and providing the best treatment programs to improve the health status of people in the short term and following-up in the long term.

18 The proposed main project idea for the touristic and medical resort project aims to build compatibility with the natural environment in the parallel period of the treatment program presented in a natural place such as Mushrif Park. The visitor’s journey starts with treatment by providing a comfortable natural environment before starting treatment, and while the treatment stage begins, the person finds himself in a place that serves the project’s goal, which is improving public health through nature.

19 The architectural style presented for the spa uses natural materials that aim to enhance the visitor’s feeling of the place and add psychological compatibility with the treatment program through the simplicity of the components and bringing the natural environment closer to new, and keeps the visitor away from the hustle and bustle of life through the natural elements present in the place

20 2- Project Program

21 2. The project program and the spaces allocated to the program.

اﻟﻣﺳﺎﺣﺎت / Space /function Area ةماعال قفارمالو ةرادالا Administration 1,000 Sqm يبطالليھاتالوةقايلالزكرم Fitness center/physical therapy 1,800 sqm ءامالتحتةيبطالنيرامتال Underwater exercise area 2,000 sqm ﺳﺑﺎ ﻋﻼﺟﻲ Medical spa 1,200 sqm هيفاكو معاطم Restaurant and cafes 2,300 sqm تايھالش Chalets ( 150 -200 ) 5,500 sqm ضارغالا ةددعتم ةعاق Multi purpose hall 750 sqm ﺳﻛن ﻟﻠﻌﺎﻣﻠﯾن Accommodation 500 sqm ﻣﺑﻧﻰ ﺧدﻣﺎت Services block 350 sqm ةلوفطالوةمومالابةيانعالزكرم Mother and child center 1,200 sqm ينابمللةيالمجالا ةحاسمال Total area 17,000 sqm

22 Accommodation Services

Spatial Analysis

Massage Chalet and s Project Program’s Gardens and site Multi coordination purpos Areas e hall

Underwate r exercise area Site Coordination Administratio n

Fitness center/physical therapy Medical spa

Mother and child center Water area

Gardens and site Gardens and site coordination coordination

23 ءامالتحتليھأتالنيرامت / Underwater Exercise

24 يبطالليھأتالةطشنأ/ Physiotherapy Exercise

25 الفطألاليھأت/ Rehabilitation of Children

26 المجالبةيانعالمسق/ Beauty Care Department

27 28 The Presumed Architectural Style for the Project

29 The project’s architectural style

30 The project’s architectural style

31 The project’s architectural style

32 The project’s architectural style

33 The project’s architectural style

34 The project’s architectural style

35 36 Similar Case Studies

37 Similar Case Studies

38 39 Similar Case Studies

40 Similar Case Studies

41 A proposed scheme for the chalets:

The second style The first style

42 The third style

43 44 3- A Preliminary Study of the Design Idea

45 This preliminary study aims to evaluate the investment of a plot of land in public parks in the city of Dubai to establish a spa and health resort, where an investor will construct the project and a global company specializing in project management will takeover.

This study examined 3 main parts, namely:

Part one: The Marketing Study 1 - Study of the supply aspect 2 - Study of the demand aspect 3- Study of the marketing aspects

Part Two: The Technical Study 1 - Description of the project 2- Justifications for setting up the project 3 - Land area and required buildings

Part Three: The Financial Study 1- Investment costs 2 - Annual operating costs 3- Annual revenue

4- Financial indicators 46 2- The Marketing Study: 2-1- Supply Aspect 2-1-1- Touristic Elements of Dubai: The city of Dubai has tourism potentials and tourist attractions that make tourism investments tempting and their development is desirable because of the available facilitations and given the nature of life that depends on the quality of service projects in the city compared to the level of cities in the Middle East and the world alike. 2-2-2 With the current state of spa resorts at the regional level, there is no specialized spa with the quality and comprehensiveness of the proposed program for the project.

47 2-2 DemandAspect This aspect of the study is reviewed on the demand side of the medical tourism in the Dubai region, in addition to providing an atmosphere that serves the main project goal and analyzing the most important components of the demand process in order to estimate the project status in the coming periods of the project.

2-2 - The demand for medical tourism services can be expressed by the effect of several indicators, the most important of which are the numbers of tourists and tourist nights implemented in the Dubai region. Through the numbers of tourists and tourist nights, the demand can be estimated accurately according to the accepted rates and the required data, whether from within the country and from abroad; who wish to receive the quality of services provided by the project in one place that contains all the facilities necessary for a wonderful and enjoyable stay.

The following are population statistics issued by the Statistics Center, indicating a growth in the population of the Emirate (Dubai) according to recent years:

48 49 Tourist numbers in Dubai, according to the exporting countries for the year 2018

Top 20 Markets Leading Dubai’s Visitors List Per thousands of visitors (‘000) January – March (2018/2019)

The most prominent 11-20 topmarkets Ranking of the first ten leading markets

Country Rank India

Kuwait K.S.A

Iran United Kingdom

Philippines China

Egypt Oman Italy Russia Australia Germany Canada United States Jordan

Pakistan Holland

France Iraq 50 Performance Report of the Supply and Demand and the Number of Tourists inDubai Until the First Quarter of 2019 Dubai Tourism 2019: Performance Report The Hotel Sector and the Monitoring of Supply and Demand Ratios – as of March 2019

The percentage Number of Hotels by Category and Key of the total Performance Indicators number of Average occupancy rooms Total number of rooms available (offer) Facility Categories

Luxury hotel apartments

Medium standard hotelapartments

717 Facilities Total March 2019

689 Facilities March 2018

Revenue from available/ vacantrooms Average daily rate Length of stay for residents Number of rooms reserved(overnight)

AED AED nights million

51 2-3 Studying the marketing aspect in Dubai

Pricing has been approved on the services provided in the proposed project as follows: 1The average occupancy of chalets in the project for 200 is40%, with an annual increase of 5%. 2 It was assumed that the sale price of one chalet is 450dirhams 3It was assumed that the number of project residents in the first year is 22,500 people 4It was assumed that other revenues from the project arerealized, which is the facility for the services provided, 10 dirhams per person 5The price of meals is 210 dirhams, including breakfast, lunchand dinner 6 The average value of orders in the café is 35 dirhams perperson 52 2: Proposal of promotional programs to reach the targetedsegments

The promotional factors that will attract visitors & encourage theirre-visit: 1- The quality of the medical curative health services provided and the integrated program of the idea and nature of theproject. 2The distinguished location of the project, which serves the natureof the project idea by being within a natural park and reserve that makes visitors closer to nature and avoid the stresses of life automatically before starting the proposed treatmentprogram.

3 Good, competitive and moderate prices.

53 Project Advantages: 1 It is the first of its kind in the Gulf 2 One of the aims of Dubai Municipality is to maintain public health, and this project supports this goal 3The presence of the project in the tree-planted Mushrif Park, which is an auxiliary factor that supports the original idea of the project and enhances the quality of services provided by the project 4 The project is unique in that the program is comprehensive in one place in which the visitor gets all kinds of services in addition to his maingoal 5 The importance of the project that it is inside the city of Dubai 6The proposed project is in line with the support of the medical tourism sector in Dubai and focuses on the general direction of the Dubai government to improve public health and disease resistance of various kinds with the best quality of competitive services provided through this project.

54 Advertising policy for the project through:

Programs aiming to attract new segments of the project through: 1 Ads 2 Exploiting the tourist seasons and discounts in the tourism festivals in Dubai 3 Billboards

Programs aiming to maintain the current target segments: 1- Program brochures 2 Following-up 3 Services program for the long and short term 4Communication channels - festivals - brochures - Eid advertisements - specialized exhibitions 55 Technical study of the project: Project description: Investment in one of the most important plots of land in the city of Dubai by establishing a medical, health and treatment resort that contains:

1 The project consists of a ground floor and three floors 2 Administrative offices 3 Therapeutic spa 4 Fitness center / facilities for medical rehabilitation 5 Underwater exercise center 6 Massage center 7 Maternal and child care center 8 Service buildings for the project 9 Restaurants and cafes 10 Staff accommodations 11 Chalets for guests - 200 chalets – (Overlooking the nature, consisting of a lounge and 1-3 bedrooms and bathrooms) 56 The total area of the project: The total area of the project is estimated at about 50,000 square meters, and the proportion of construction utilized of it is 50%, on which buildings are built with an area of 25,000 square meters. Expected investment costs of the project: The project cost is 79,999,333 million dirhams. Rate Amount inDirhams % 3.00 2.400.00 General site coordination %70.00 56.000.000 Building construction %12.00 9.600.000 Furniture and furnishing equipment %2.06 1.648.000 Tools %2.10 1.680.000 Establishment expenses % 93.00 74.000.000 Total fixed capital %6.80 5.440.000 Working capital %0.44 3.520.000 Transportation

%100 79,999,333 Total capital invested

57 The base cost of the buildings is estimated based on the price per square meter of the facility: Cost Clause (m)

30.000.000 Chalets (200 units) capacity 2 and 3 bedrooms (100 m) 18.500 meter square

6.250.000 Fitness and Rehabilitation Center 2500 meter square 2.500.000 Administration and Public Utilities 1000 meter square 4.000.000 Fitness and Rehabilitation Center 1600 meter square 3.000.000 Underwater Medical Exercises 2000 meter square 2.200.000 Therapeutic Spa 2200 meter square 4.500.000 Restaurantsandcafes 3000 meter square 900.000 Multipurpose Hall 750 meter square 1.500.000 Staff Accommodation 1200 meter square 1.050.000 Service Building 350 meter square 1.440.000 Maternal and Child Care Center 1200 meter square 57.000.000 Total Area of Buildings 36.300 meter square

58 Average annual revenue expected for the first ten years:

Amount inDirhams Revenue Clause 21.600.000 Dirham Main activity revenue 6.500.000 Dirham Other revenues 28.100.000 Dirham Total

Main activity revenue details:

Currency Cost Revenue Clause Dirham 14.000.000 Health program revenue Dirham 5.600.000 Restaurants Dirham 800.000 Thecafe Dirham 400.000 Accompanying services

59 The Most Important Financial Indicators of the Project:

The financial analyses of the project were made in light of the following assumptions:

1- The percentage of occupancy in the first year of the project was assumed at a rate of 40% for the facility to rise annually by an estimated rate of 5% 2 - It was assumed that the annual profit carried forward was accumulated in the cash balance accumulated for the project 3- The financial indicators were extracted through studying the financial analysis for a period of ten years of the life of the project

Average Net Profit of the Project:

It is the result of subtracting the total costs, including the depreciation from the total revenues that the project achieves, where the average net profit during the ten years amounted to 6,941,013 dirhams and represents 46.6% of the total operating profit of the project during the period.

60 Return on Investment Rate:

The percentage of the average net profits achieved during the ten years to the total value of the investment in the project, and this rate in the project is about 15.42%. In order to judge the feasibility of this ratio, it must be compared with similar projects or compared to the average interest rates of banks.

Capital Recovery Period:

Which is the period of time during which the project recovers its invested capital through the annual net cash flow, and that period is shorter, but this indicates the viability of the project. The capital recovery period in this project is about 6.43 years

61 Conclusion:

Based on the above financial analysis indicators, there is an economic feasibility of the investment opportunity for investing in a spa and medical rehabilitation resort in Mushrif Park - Dubai, where indicators have shown encouraging financial returns for the project in managing its financial flows.

However, these results are ultimately only expectations based on achieving specific operating rates and then achieving specific revenues, and this does not negate the need to prepare a detailed feasibility study for this project in light of more accurate data.

62 The End

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