MENA Real Estate Market - Overview September 2012

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MENA Real Estate Market - Overview September 2012

Table of Contents MENA Real Estate Market - Overview September 2012 ...... 1

Chapter1. Overview of GCC and MENA Real Estate Markets ...... 6

Investment Profile of MENA Countries –Established and Emerging Markets- Investment Attractiveness Index ...... 7

Emerging Markets ...... 8

Jordan ...... 10

Political Stability ...... 10

Economic Policy and growth ...... 11

Real Estate ...... 12

Egypt ...... 12

Political Stability ...... 12

Economic Policy and Growth ...... 12

Real Estate ...... 13

Lebanon ...... 13

Political Stability ...... 13

Economic Policy and growth ...... 13

Real Estate ...... 14

Kuwait...... 15

Political Stability ...... 15

Economic Policy and Growth ...... 15

Bahrain ...... 15

Political Stability ...... 15

Economic Policy and growth ...... 16

Oman ...... 16

Political Stability ...... 16

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MENA Real Estate Market - Overview September 2012

Economic Policy and Growth ...... 17

Real Estate ...... 17

Established Markets ...... 17

Saudi Arabia ...... 18

Qatar ...... 19

United Arab Emirates (UAE) ...... 20

Chapter 2.Overview of Real Estate Markets in the GCC ...... 23

Introduction ...... 23

Market Size –Budget Totals for the Building Construction Industry ...... 23

GCC Projects by Stage of Construction ...... 26

Regulatory and Legal Framework of the GCC Real Estate Markets ...... 28

UAE ...... 29

Kingdom of ...... 30

Qatar ...... 30

Bahrain ...... 31

Kuwait...... 31

Oman ...... 31

Real Estate Demand and Supply in GCC Markets – Analysis and Forecasts ...... 32

Saudi Arabia Real Estate Demand Supply Analysis ...... 32

Saudi Arabia Residential Sector ...... 33

Saudi Arabia Commercial (Office) Sector ...... 34

Saudi Arabia Retail Sector ...... 35

UAE Real Estate Demand Supply Analysis...... 36

UAE Residential Sector ...... 38

UAE Commercial (Office) Sector ...... 39

UAE Retail (Office) Sector ...... 40

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MENA Real Estate Market - Overview September 2012

Qatar Real Estate Demand Supply Analysis ...... 42

Qatar Residential Sector ...... 43

Qatar Commercial (Office) Sector ...... 44

Qatar Retail Sector ...... 45

Kuwait Real Estate Demand Supply Analysis ...... 45

Kuwait Residential Sector ...... 46

Kuwait Commercial (Office) Sector ...... 47

Kuwait Retail Sector ...... 47

Bahrain Real Estate Demand Supply Analysis ...... 48

Bahrain Residential Sector ...... 50

Bahrain Commercial (Office) sector ...... 50

Bahrain Retail Sector ...... 51

Oman Real Estate Demand Supply Analysis ...... 52

Oman Residential Sector ...... 53

Oman Commercial (Office) Sector ...... 54

Oman retail Sector ...... 54

Opportunities and Challenges ...... 55

Chapter 3.Future Outlook for MENA Real Estate Sector ...... 57

Chapter4. GCC Real Estate Projects Profile ...... 59

List of Major Projects in the GCC Real Estate Sector, 2012 ...... 59

Profile of the Mega GCC Projects ...... 67

Methodology ...... 91

Code of Ethics ...... 91

List of Figures Figure 1: Budget Totals for the GCC Real Estate Sector by Country, September 2012 ...... 24 Figure 2: GCC Real Estate Projects by Stage of Construction, September 2012 ...... 26

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MENA Real Estate Market - Overview September 2012

Figure 3: GCC Projects by Country and Status of Construction (US$ Million), September 2012 ...... 27 Figure 4: Saudi Arabia Real Estate Demand and Supply by segment (Square Metres), 2011-2015 ...... 33 Figure 5: UAE Real Estate Demand and Supply Estimates by Segment (Square metres), 2011-2014 ...... 37 Figure 6: Qatar Real Estate Demand and Supply Estimates by Segment (Square Metres), 2011-2015 ...... 43 Figure 7: Kuwait Real Estate Market Demand and Supply Estimates by segment (Square Metres), 2011-2015 ...... 46 Figure 8: Bahrain Real Estate Demand and Supply Estimates by Segment (square Metres), 2011-2015 ...... 49 Figure 9: Oman Real Estate Demand and Supply Estimates across Segments (Square Metres), 2011-2015 . 53

List of Tables Table 1: MENA Emerging Markets: Investment Attractiveness Index, 2012 ...... 9 Table 2: MENA Established Markets: Investment Attractiveness Index, 2012...... 18

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MENA Real Estate Market - Overview September 2012

Chapter1. Overview of GCC and MENA Real Estate Markets

In the aftermath of the global economic slowdown, bursting property bubbles in a number of markets on the one hand and saturation of real estate markets in others, investor focus has gradually turned to markets that have a potential both in terms of the inherent demand and growth in domestic investment capabilities. In both these aspects, the and North African (MENA) region has been in the spotlight of investors as much for its influence and control over supply of hydrocarbons and for its emerging investment potential. These countries are a mix of varied economic statures, broadly sharing a geographical area and common demographic traits such as a rapidly growing and urbanizing population. Some of these countries are blessed with abundance of hydrocarbon resources which gives them the required edge to forage into new avenues of development backed by their strong hydrocarbon wealth, while others have to rely heavily on external finance to fund their developmental ambitions.

Their young and dynamic population have attracted investors across the real estate sector segments primarily tourism and residential segments followed by hospitality, commercial and retail segments depending on the urgency and priority of their developmental needs. On the one hand are markets such as Saudi Arabia, Qatar, UAE that have an established real estate sector with strong demand and a massive supply anticipating future growth, yet still growing purely on the ambitions of the governments, and on the other are markets that are being driven by strong demand with a wide supply gap continuing to exist, or the emerging markets such as Lebanon, , , Bahrain, Oman and Kuwait. Of the latter, some are countries that are oil importers except the GCC countries of Bahrain, Oman and Kuwait, and therefore are not as well off as their counterparts in terms of financing their developmental goals. The poor state of their development has also increased their vulnerability to regional uprisings such as the Arab Spring that have led to widespread political uncertainty and hindered investment in these countries in recent times, affecting their real estate sector badly. However, with regional and international backing, these countries are trying to gradually restore normalcy and resume economic progress, thus resurrecting their construction and real estate markets for investors in the future.

With significant moves to liberalise and reform their economies, both the emerging and the established markets of the region are not only looking to conventional income streams such as hydrocarbons and

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MENA Real Estate Market - Overview September 2012

tourism to fund their determined development strategies, they are also utilising their competitive advantages to build truly diversified economies. Foreign investment is seen as key to achieving these goals and opportunities abound in the real estate market.

Regulatory reforms have been undertaken in a number of countries to make them more investor friendly and accommodate the largely expatriate population of the region, while also encouraging employment of the domestic population and building on domestic competencies.

Yet, in the region as a whole there continues to be a shortage of affordable housing, as population and labour forces continue to grow. The increase in housing costs is not only a major contributor to inflation and inflation expectations, but also a set off of political unrest. Government support remains vital to the sector, whether through direct involvement in addressing public housing shortfalls, liquidity-boosting stimulus or financing, or the execution of new laws to improve financing and residency status. It is expected that the regional governments will come with further measures supportive of housing, particularly as population growth make worse supply shortages in the most populous countries.

Investment Profile of MENA Countries –Established and Emerging Markets- Investment Attractiveness Index Dynamic and well established markets such as , , and are markets that have attracted investors irrespective of the global economic slowdown and the regional unrests, while others such as Bahrain, Lebanon, Jordan and Egypt to a large extent and Oman and Kuwait to a smaller extent have been plagued by the uncertainties surrounding the regional unrest of the Arab Spring battering investor sentiments in economies that are badly in need of investment to reaffirm their growth potential. The difference in both markets is not only in the stage of development of their real estate markets, but also in their inherent affluence or the lack of it.

Though, countries such as Saudi Arabia, Qatar and UAE also witnessed the adverse impact of the global economic slowdown, the large scale government spending of the oil surpluses on the expansion and diversification of these economies helped them shield themselves from the worst and prevent a spread of unrest such as the Arab Spring to their countries. The Emerging markets on the other hand, have as yet not realized their true potential in terms of real estate and have everything to offer for the global investor except funds reinforcing the security of the investors’ wealth. The following is a brief investment profile of these markets, which we have classified into the following two broad heads:

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MENA Real Estate Market - Overview September 2012

 Emerging markets which have a small yet fast growing market namely Bahrain, Kuwait, Oman, Lebanon, Egypt and Jordan and  Established markets yet growing namely Saudi Arabia, Qatar and UAE

Having reviewed the markets in 2012, the investment profile provides the reader a brief profile of the market in terms of three broad parameters that are the prime pillars to a growing real estate market, namely, their political stability, Economic performance and policy and the state of their construction industry. A comparison of its absolute performance since 2011 and over 2012, as well relative to the other markets in its category is also provided with the help of a brief comparison of these three parameters in terms of an investment attractiveness index.

Emerging Markets The region exhibits all the characteristics of a growing market with its large and swiftly growing population, growing economies, high regional demand and an increasing supply of premium real estate properties, the investor sentiment . In 2010, the MENA real estate markets were clearly emerging from the slowdown with healthy growth in commercial property and real estate prices.

However, since 2011, civil and political unrest gained ground and spread across the markets festered by corruption, lack of affordable social infrastructure such as basic housing, sanitation and other facilities. Pockets of dissatisfaction and unrest grouped together to be collectively called the Arab Spring, battering investor sentiments and bringing construction industries to a complete halt. Governments were forced to relook their policies and invest heavily in social infrastructure and measures to curb the rebellion, often resulting in running vast deficits and eroded foreign reserves for the less affluent countries such as Egypt.

The subsequent year has witnessed a gradual move of most countries to better regulated regimes, stronger government focus on the residential and infrastructure segments of construction and easing of a number of barriers in a bid to restore international investor confidence. However, years of underdevelopment and inefficiencies are not likely to be eliminated in a short period and the progress amidst the tense and fragile political situation is slow and often unsteady.

The progress of individual emerging economies is depicted in Table 1 below:

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MENA Real Estate Market - Overview September 2012

Table 1: MENA Emerging Markets: Investment Attra ctiveness Index, 2012

Countries Political Stability Economic Policy and Real Estate Growth Performance Emerging Markets

Jordan  Political unrests  Encouraging Foreign  Financial worries leads dampens growth investment by reducing to delays and prospects minimum capital cancellations  Receding investor requirements for business  Lengthy and expensive confidence leads to start ups procedures for financial challenges  One stop shop solutions obtaining construction for obtaining business permits and dispute permits reduce costs and resolutions restricts time market players  Establishment of credit information system enables growth  Easing of trading barriers across borders fuels funding chances Egypt  Stability post  Global economic  Lack of transparency presidential slowdown and political and legal battles elections witnesses unrests causes extensive restricts growth protracted growth damage to economic prospects in few areas growth  Moody’s negative outlook, vague real estate regulations dampens investor confidence  Large mismatches in healthy demand chasing limited supply provides excellent growth avenues Lebanon  Prevailing political  Economic growth  Despite a healthy unrests hit investor witnessing its lowest since demand chasing confidence 2006 at 1.5% in 2011 limited supply the  Receding balance of market outlook payments and negative remains clouded by investor confidence hits negative investor all sectors including confidence, lengthy tourism and real estate and costly procedures for construction permits, registration of property, obtaining credit and trading across borders

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MENA Real Estate Market - Overview September 2012

Countries Political Stability Economic Policy and Real Estate Growth Performance Kuwait  Stringent military  Discount cuts and ease of  Government controls actions to lending facilities, in release of land for safeguard against permitting foreign real estate political unrests and ownerships enables development poses planned social growth in mixed use, supply challenges to infrastructure retail, and tourism and meet growing demand investment leisure sector. programs worth US$ 37 billion across 2010-2014 fuels growth Bahrain  Social unrests had  Restrictions and  Government spending led to severe delays procedural delays to provide social and cancellations in involved in starting up of infrastructure such as construction sector business inhibits obtaining affordable housing financial assistance fuels slow but steady  Procedural reforms on recovery export and imports  Hike in property through electronic records registration fees and paves easy trading across cumbersome borders thus enabling procedure involved in economic growth property registrations restricts growth Oman  Transparent policies  Prudent fiscal and  Buoyant growth in and regulations economic policies residential and boosts construction achieves a 5 percent infrastructure sector and tourism growth thus shielding the segments country from deterring  Oman Real Estate effects of Arab spring Association (ORA) lures private investors thus fuelling growth.  Spurt in tourism to drive growth in other related sector

Jordan

Political Stability Domestic unrest combined with the adverse effect of the regional Arab Spring have taken a heavy toll on Jordan’s fiscal state leading to high fiscal deficit and hampered growth on the back of prolonging political uncertainty. The government introduced fuel caps in 2011 to curb unrest, which in turn led to suspension of open market price mechanisms and fuel subsidies that further aggravated the fiscal position. External deficits were also high with current account deficit standing at 9.5 percent of GDP as of 2011.

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MENA Real Estate Market - Overview September 2012

As investor confidence eroded and tourism, one of the leading garners of foreign exchange also fell, by 18.4 percent from 7.8 million in 2010 to 6.4 million in 2011. FDI into Jordan fell by 17.7 percent during 2011 as against previous year.

Economic Policy and growth Amid economic slowdown and sluggish growth measured at 2.5 percent in real terms in 2011, Jordan has continued to woo investors in a bid to restore normalcy and resume the interrupted healthy growth pattern achieved prior to 2009, at great fiscal costs. Procedures to start a business according to the World Bank-IFC Ease of Doing Business 2012 report, have been eased in terms of minimum capital requirements, creating one stop shops for obtaining permits in order to reduce time and costs involved in procedures, improving its credit information system by setting up a regulatory framework for establishing a Private Credit Bureau and lowering loan thresholds for reporting to the public credit registry. However, Jordan still has a long way to go in terms of its long and costly procedures in terms of registration of property and obtaining of construction permits and dispute resolution as well as investor protection mechanisms, all of which form a conducive business environment, making it fall below the regional average in world rankings of countries in ease of doing business.

In 2010, Jordan had taken a few significant steps such as setting up of special commercial courts and equipping them with computer-aided case management systems. In addition, a higher threshold for the lower conciliation court is expected to result in better distribution of cases, though after that further steps have not been taken to improve the situation. However, in terms of ease of paying taxes Jordan ranks 21 among 183 countries much above the regional average with the introduction of electronic filing of income and sales taxes and abolishing of certain taxes.

Sops were also handed out to the real estate market in terms of waiving of transfer fees on small properties and reduction of property taxes, which greatly benefited the real estate sector.

Jordan also scores in comparison with other economies in the region in terms of the ease of trading across borders in terms of reduction in the documentation and time required to export and import. In 2012, Jordan made trading across borders faster by introducing X-ray scanners for risk management systems and earlier in 2010 by easing clearance procedures and making documentation such as customs clearance electronic, reducing the time involved. However, with the poor fiscal position, mounting state debt and external deficits, there is a growing concern among the international community on the sustainability of these incentives to uphold the economy and its fledgling industries.

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MENA Real Estate Market - Overview September 2012

Real Estate As temporary government measures to bolster the real estate sector could not sustain growth in the nascent real estate sector, the worsening fiscal situation of the government and the regional unrest began translating into sluggish growth of the economy and weighing on investors and the real estate sector of Jordan slowed down, growing by only 5.4 percent in 2011 and contribution of the sector reduced from 4.8 percent of GDP in 2010 to 4.2 % in 2011. The situation was aggravated by negative investor sentiment, lower FDI and tightening credit for construction fell which fell by nearly 49.5 percent. Commercial real estate had begun its decline in 2010 itself as industrial activity began slowing and with the sluggishness in economic growth the situation has worsened in 2011.

Egypt

Political Stability After political revolution of January 2011 and the subsequent takeover by military council followed by the presidential elections in 2012, some semblance of order has gradually being restored as indicated by the rise in tourism revenues by 19 percent in the first 8 months of 2012, according to official figures. However, overall uncertainty remains on the future time frame and nature of restoration of a healthy investment climate. This situation has even prompting credit rating agencies such as Moody’s to maintain its negative outlook on the country, while upholding that the country has made significant progress toward restoring stability such as formally seeking IMF financial help, making progress toward restoration of financial and macroeconomic stability by the government, as well as the stabilization in its external payments position, retaining financial reserves at US$ 15 billion after a steep drop in 2010 by borrowing from countries like Qatar and Saudi Arabia. However, the uncertainty on how these plans are likely to be adhered to and progress is likely to determine its future prospects.

Economic Policy and Growth In the aftermath of the global economic slowdown, regional unrest and the lack of transparency in the property markets leading to large scale legal battles involving large real estate developers, the Egyptian economy and its real estate market took a battering in 2011 which change in regimes has not resolved . The fiscal and external balance positions sustained extensive damage and the macroeconomic situation at the end of 2011 showed that, most sectors were badly hit except the revenues and some defensive sectors such as pharmaceuticals, fertilizers and chemicals. The economy and its key sectors are

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MENA Real Estate Market - Overview September 2012

desperate for external finance as the country’s fiscal and external borrowing positions have turned dismal, following the heavy erosion in the external balances and domestic expenditure to curb the unrest and uncertainty prevailing in 2011 and beyond. But an externally backed sustained economic readjustment program could restore normalcy and investor confidence.

Real Estate As lack of clear regulations and transparency in real estate markets, led to unearthing of a number of legal upheaval in the Egyptian real estate markets, combined with the regional unrests, investor confidence was badly eroded resulting in a sudden decline in investment into the economy and its real estate in 2011. Nearly US$ 15 billion worth of projects suspended by the end of 2011 and with tourism also affected, recovery in the new regime is likely to be cautious and slow, depending on the nature of the readjustment program to set right the economic fundamentals. However, the inherent strength of the real estate market in terms of demand far outpacing supply when tackled with the supply demand mismatches that are common in a number of nascent markets, are likely to restore growth momentum in the long run once normalcy and investor confidence is restored.

Lebanon

Political Stability Political climate remains tense after an overthrow of the ruling government in January 2012 due to unrest among the population on perceived failure to meet the needs of development satisfactorily. The subsequent government has also been plagued by dissatisfaction on progress achieved in resolving the economic and social situation in the country. Pockets of sporadic unrest and violence continue to erupt in pockets of Lebanon, especially in Tripoli and Beirut. Regional unrest caused by the Arab Spring combined with its proximity to Syria also continue to cause concern on the unrest in Syria spilling over to Lebanon which have badly hit investor confidence in the region and bringing economic growth down sharply to the lowest since 2006 at 1.5 % in 2011.

Economic Policy and growth Economic growth fell sharply to 1.5% in 2011, the lowest since 2006, fuelled by regional and domestic unrest and declining balance of payments as investor confidence took a battering both within the region and globally. Tourist arrivals also declined by 7.9 percent as against a growth of 28.7 percent between

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MENA Real Estate Market - Overview September 2012

2007 and 2010. Property sales also witnessed a decline of 16.5% in 2011, as against a growth of 13 percent in 2010.

In terms of business climate, Lebanon is ranked at 104 out of 184 countries surveyed annually by the IMF in terms of ease of doing business, well below the regional average of 93. It continues to have long and costly procedures for starting a business and obtaining requisite permits as also in terms of obtaining construction permits, registration of property, obtaining credit, trading across borders and other essentials of investing and beginning a business in the country, which make it a relatively less attractive destination as compared to its peers in the region. However, a resilient construction market backed by healthy growth in population and demand continuing to outpace supply in residential real estate markets where 90 percent of the market comprises locals and the remaining 10 percent other Arab nationals from the region, are driving forces that keep the market buoyant and likely to resume a competitive growth path in the future.

Real Estate Investors across the region and the world had recognised the potential of a new and healthy and resilient construction sector in Lebanon with the focus on the lower tier of the market as demand for affordable housing exploded and real estate transactions grew by 35 percent annually between 2006 and 2010 in terms of properties sold, while the year up to April 2012 has recorded a decline of 6% in real estate transactions. However, with the political tensions and regional unrest gradually unsettling the growing market, the real estate market in Lebanon was hit badly by erosion of investor sentiment since the end of 2010 and throughout 2011. Though property prices continue to be high, demand for new properties from regional investors and locals have declined sharply. The number of foreign buyers stood at a meagre 2.02 percent by the end of 2011. New construction permits also declined by nearly 6.2 percent by end of 2011 as against an annual increase of 16.4 percent between 2006 and 2010. Project space covered by new permits too has declined in the first four months of 2012 by 10.5% when compared to the previous year.

As the Lebanese construction sector is also predominantly dependent on imported materials for construction which has been badly hit by the uncertain political climate, which too has indirectly affected the construction activity in the country in 2012.

Hope is being pinned on the new projects that are likely to stem from the government and the resilient domestic demand which has as yet not been hit badly by the upheaval, as well as the expectation that the challenging economic climate could prompt the government to introduce Public Private Partnerships (PPP)

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s in areas such as infrastructure, much awaited by the local business groups in Lebanon to participate in the bigger projects for reconstruction and construction in the economy.

Kuwait

Political Stability As the fourth largest exporter of oil in the world, Kuwait’s oil industry is the backbone of the economy, and all land for exploration and that which is free for real estate development is released on a controlled basis by the government which makes real estate development a challenge in terms of limited supply to cater to clamouring demand especially across the residential and retail segments. The economy successfully checked the pockets of uprisings as a part of the Arab Spring and local dissatisfaction with the state of social infrastructure through strict military action and a planned investment programme of US$ 37 billion spread across the period 2010-2014. The programme, not only aimed at diversification from hydrocarbons into other sectors, but also provided the required social infrastructure in terms of affordable housing, roadways, healthcare, education and telecommunications that are likely to help revive the economy and its construction sector from the adverse effects of the global economic slowdown and regional unrest.

Economic Policy and Growth The Kuwait economy predominantly comprises expatriates and the contribution of the real estate sector to the GDP averages around 7 percent of Kuwait’s GDP since the past decade. The government has therefore invested in a slew of measures to appease the growing unrest stemming from unemployment and failure to meet the needs of this growing population and through these also helped boost construction.

In 2011 the Central bank of Kuwait had introduced discount cuts and easy lending facilities for real estate Legislations permitting foreign ownerships to development of mixed-use, leisure, tourism, retail and commercial sector were also promulgated, which are gradually translating into better growth across segments in Kuwait’s real estate sector in 2012.

Bahrain

Political Stability Unlike the other countries in the GCC, Bahrain is among the fifth most densely populated countries in the world and its real estate does not follow the GCC policy of building in anticipation of a market, rather its

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real estate developments are driven more by necessity than ambition. However, the country which was a financial hub of the region and a healthily growing construction sector where demand always outpaced supply, was hit the most badly by the social unrest of the Arab Spring in some pockets and domestic unrest drove down investor confidence, as 2009 and 2010 witnessed a number of projects being shelved or put on hold, while the government’s hasty plans to provide social infrastructure such as affordable housing led to heavy government spending in a bid to appease the masses and trying to revive construction and consumer sentiments. Recovery is slow but steady with strong government backing

Economic Policy and growth In terms of ease of doing business, Bahrain has slipped drastically in world rankings from previous years, in terms of failure to progress in opening up or easing the restrictions and procedural delays involved in starting a business in the country. For example, in spite of having been a very important financial hub of the Middle East, it continues to rank low in the region in terms of ease of obtaining credit and property registration has been made more cumbersome and costly with the hike in the fees involved in 2011.

However, the government has made significant inroads into reform on trading across the borders by making records electronic and reducing the time involved in exporting and importing through procedural reforms, which at a time when neighbouring economies are wooing international investors on a large scale such as Qatar hosting the World cup 2022 and Saudi Arabia with its vast expansion programme, are likely to spill over to Bahrain, helping its growth prospects. The government has also made large investments in social housing schemes to pacify the masses in a bid to curb the unrest in pockets as a result of the Arab Spring which are likely to have a slow but steady effect on the real estate market in the long run. However, unless these issues are addressed, recovery is likely to be slow where investment inflow is concerned.

Oman

Political Stability Oman economy has weathered the global and regional turmoil well with its economy likely to continue its healthy growth and stable economic policies helping its real estate sector continue a well mapped path of growth. The country has also made significant progress in ushering in transparency and strengthening regulations across the construction sector and a strong vision to diversify from hydrocarbons to focusing on Oman as a tourist destination. In a short span it has managed to attract the desired target by being cited as

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one of the most attractive destinations for tourism by leading tourism brands in the international and regional arenas.

Economic Policy and Growth

Prudent fiscal policy combined with strong economic fundamentals has rendered Oman less susceptible to the regional and international turmoil. It is forecast to achieve a growth rate of over 5 percent in real terms in 2012 with inflation at 3 percent. The government role and controls over the real estate sector though still a deterrent is on the way to be rationalized and rendered transparent through a slew of measures to attract tourists and private investment in the economy. Unemployment is another obstacle that is being tackled with Omanisation to prevent unrest among the masses similar to the Arab Spring. Large infrastructure and housing projects are keeping real estate markets buoyant.

Real Estate The Omani government has set up an Oman Real Estate Association (ORA) in a bid to attract private real estate investment and usher in transparency in the market in the latest of its measures to spur growth across its already buoyant real estate markets. Residential and infrastructure segments are witnessing healthy growth while the commercial and retail segments are as yet sluggish. However, with the massive fillip given to tourism in the Oman policy and investment programme for the decade up to 2030, these sectors too are likely to witness a spill over effect and get over their inertia by end of 2012 and beginning of 2013.

Established Markets There are three economies that have long been touted as the oasis of the Middle East, which have their fast depleting hydrocarbon resources and the resultant wealth resulting from the strong oil prices to back up their investment and diversification plans. These are the Kingdom of Saudi Arabia, The and Qatar, all of which have realized the need to reduce their dependence on hydrocarbons and build up competencies across other sectors using their vast oil surpluses to achieve sustained growth and build investor confidence. Table 2 below provides a brief comparison of the investment attractiveness of these economies as of 2012.

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Table 2: MENA Established Markets : Investment Attractiveness Index, 2012

Countries Political Stability Economic Policy and Real Estate Growth Performance Established Markets

Saudi Arabia  Public spending on  Prudent economic policies  Government plans large scale aimed at diversification to add over 500,000 infrastructure and sustains the growth residential units residential projects momentum in the largest boosts growth shields the threat of construction market in prospects downturn Middle East  New Mortgage law enables KSA to address growing housing shortages thus increasing the investments on affordable housing projects

Qatar  Robust financial  "Qatar vision 2030"  Successful bid to reserves and provides the pillar for host the FIFA World prudent fiscal and sustainable economic Cup 2022 offers investment policies development through several growth witnesses diversification from opportunities across progressive growth hydrocarbon sector thus infrastructure, across all sectors of enabling growth across all sports, travel, economy sectors including leisure, commercial construction and other related sectors. UAE  Government backed  Despite modest economic  Challenges spending programs recovery real estate pertaining to supply in infrastructure and property prices continue to exceeding demand mixed use face the strain amidst continues to plague development increasing supplies and rentals and sales enables gradual limited foreign investments despite witnessing recovery from the gradual recovery adverse impact of global economic downturn

Saudi Arabia Even in times of lingering concerns over the global economy, declining property markets and civil unrests in the neighbouring nations, the real estate market in the Kingdom of Saudi Arabia (KSA) has continued to preserve its allure. The continuation of long-term demand fundamentals has substantially favoured the growth of real estate market in Saudi Arabia. KSA, the largest GCC economy, maintains its economic diversification focus. Real estate plays an imperative role in the Kingdom’s non-oil economy. KSA being one

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of the largest construction markets in the Middle East is estimated to have projects in excess of US$ 1.2 trillion in various stages of development.

The country is seeing continued economic growth and is enjoying the benefits of the solid improvement in its real estate environment. Government spending on social infrastructure and other non-oil based projects has supported the state through the tough years and helped resist the threat of downturn. This has then boosted the real estate sector, from both demand and supply perspectives. Public spending plays pivotal role to the Saudi economy and several large-scale residential plans are in progress that includes the development of over 500,000 homes by the government agencies. The country in recent times passed a new mortgage law, which is element of a planned revamp of the country's house financing. The new law will help Saudi Arabia deal with its growing housing shortages and the very necessary construction of new homes also raises on the whole investment in the Kingdom.

The country’s government has spurred measures to sustain demand and the supply of housing units. With several new airports and railways which are under construction and planned, the government is also coming with the logistical links to support real estate construction. The government’s 2011 incentives included 250 billion riyals to finance 500,000 new housing units over the next few years, as well as 40 billion riyals for the real estate development fund. Notwithstanding the new supply and support, it is expected that the underlying supply shortages to keep prices rising, as new units fail to continue with population growth and financing remains a test.

The government plans to add over 500,000 units will help ease some of the disparity between the new supply and demand. Given the growth of the population, and family size, the existing public housing plans are a sheer drop in the bucket, and additional government measures holds key to prop up the market. The planned governmental measures will ultimately filter into commercial property, in particular retail as those moving into the new housing developments demand amenities, links, shopping centres and the like.

Qatar While the similarity of Qatar with its neighbouring GCC economies ends in terms of its vast oil and gas reserves supporting its diversification plans, its construction industry too has been a victim albeit to a smaller extent of the adverse effects of the global economic slowdown.

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MENA Real Estate Market - Overview September 2012

In the case of Qatar, strong economic fundamentals, a robust reserve, prudent fiscal policy and a sustained long term plan to diversify the economy and reduce its dependence on the hydrocarbon sector by focusing on other areas such as infrastructure, sports, industry, tourism, hospitality, healthcare and retail have led the economy into a quick recovery that is likely to sustain growth steadily across the segments of the construction industry into the future.

Qatar’s successful bid to hold the FIFA World cup 2022 is set to offer many opportunities to businesses and investors in the country and GCC region that has struggled since the start of the global recession in 2008. A number of infrastructure, sports, travel and leisure projects are seen coming over the next five six years and is expected to boost construction sector while increasing overall economic activity. Building towards the World Cup will infuse a new enthusiasm into the drive by Qatar, and the GCC region, to diversify its economy away from its reliance on oil and gas. For businesses operating in Qatar, the World Cup will guarantee that a long list of will now go forward as the country seeks to put in place the infrastructure needed to deliver the event. From the metro system to a string of outstanding football stadiums, contractors in the state can hope for a golden period in the country’s construction sector. The World Cup will also offer a boost to the rest of the GCC countries, not only in drawing more visitors to the region, but also in showing that the Gulf is world-class destination competent of holding global events.

While demand in the residential segment is likely to be sluggish longer than the other segments, retail and tourism are likely to report the strongest growth in the industry. The high projected economic growth of the economy, making it the fastest growing economy among the GCC countries as also among the fastest in the world, is likely to prove an extra feather in the cap of the Qatari real estate market.

United Arab Emirates (UAE) According to official figures from the National Bureau of Statistics, the UAE’s real estate sector rebounded into growth in 2010 after recording one of its largest falls in 2009 because of the 2008 global fiscal distress while construction activity also sharply picked up.

After declining by around 18.6 per cent in 2009 the real estate sector recovered by around 2.5 per cent in real terms in 2010. The construction sector, one of the largest components of the country’s GDP, also recorded strong recovery in 2010, when it expanded by 8.6 per cent in real terms compared with 1.3 per cent in 2009.

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The real estate sector’s contribution to real GDP grew from Dh95.7 billion in 2006 to Dh111.1 billion in 2007 and Dh114 billion in 2008 before slumping to Dh92.7 billion in 2009. It rebounded to Dh95.1 billion in 2010. The construction sector’s contribution to real GDP expanded from Dh86.1 billion in 2006 to Dh94.7 billion in 2007, around Dh104.4 billion in 2008, Dh105.8 billion in 2009 and nearly Dh114.9 billion in 2010.

The prevailing trend across the various segments of the building construction industry in the UAE, clearly shows that while UAE has been the worst hit amongst the GCC nations due to the global economic slowdown and the adverse impact of the credit crisis in 2009, it continues to hold the position as the world’s largest construction industry with projects resuming normalcy gradually on the back of government backed spending programs and investment in infrastructure and mixed use development on the one hand and the gradual revival of tourism, retail and commercial activities on the other fuelling the growth of the tourism, hospitality, leisure and retail segments on a greater scale than other segments and at a more cautious pace than yesteryears.

Despite a modest lift up in the economic activity, the real estate property prices in the UAE are still declining amidst of the increasing supplies and as foreign investments remains limited. The recent steps to call off some unbeneficial projects and to widen the homeowners’ visa will offer some support, but primary structural issues will keep the sector under strain. On the other hand transaction activity has picked up as prices have dropped, with internal migration within the country and some relocation from the GCC. Declining rents have added to housing affordability, and allowed renters and even buyers to be choosier, even as they have reduced returns for investors and landlords who cannot depend on the same income from their real estate investments.

House sale prices have rejuvenated more than rents, which continue to reduce modestly with some of the largest properties suffering the most as tenants negotiate harder. This decline in rents is also dampening price pressures for the average consumer, and allowing many global companies to trim their housing packages for expatriates, reasonably reducing the cost of doing business. Likewise, more reasonable pricing is supporting commercial property as companies shift to high-grade office space, and many of the newer hotels in Dubai have reduced rack rates to persuade higher occupancy. To a great extent, the reduction in Dubai International Financial Centre rents earlier in 2011 is part of this trend. The UAE’s stronger logistics are attracting more investment, as well as more business travel, than other GCC countries.

The new supply is keeping vacancy rates high and as a result UAE real estate market will remain only a modest donor to economic growth in the medium term, but that it will no longer be a major detractor. In

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due course, local authorities need to follow up actions like extending the homeowners visa, with clearer implementation of new regulations on the financial sector to get the full effect.

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Chapter 2.Overview of Real Estate Markets in the GCC

Introduction Even under the prevailing global market conditions, the massive development and diversification programmes of the government including the vast infrastructure upgrades of airports, roads, railways and has succeeded in attracting a huge influx of tourists into the region. While the political unrest has proved to have an adverse impact on markets in Bahrain and Oman to a large extent, it has diverted tourist revenues to the neighbours, resulting in a mini hospitality boom aided by country specific factors such as Qatar’s preparation for hosting the World Cup 2022, Saudi Arabia’s religious tourism in and , Oman focusing on tourism as a cornerstone to growth and the UAE regaining its spot as one of the top tourist destinations of the world. While top retailers flock to the region as the rising oasis amid the global economic gloom, the real estate sector in the GCC becomes an attractive destination for investors. The inherent strength of a young, growing population has driven demand and investment across the markets in the GCC, helping it to remain buoyant amid the global economic turmoil.

Market Size –Budget Totals for the Building Construction Industry The following figure presents the shares of the real estate market in the GCC as of September 2012.

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Figure 1: Budget Totals for the GCC Real Estate Sector by Country, September 2012

Budget Totals for GCC Real Estate Sector by Country (US$ Million), September 2012

Bahrain 2.5% Oman Kuwait 2.9% 7.5% Qatar 6 %

UAE 48.8%

Saudi Arabia 32.3%

Source: Ventures Onsite MENA Projects Database, www.venturesonsite.com UAE is back to becoming one of the favourite destinations for global realtors, with Dubai performing much better than its earlier turbulent years. Abu Dhabi however is now treading a more cautious path with slower progress on a number of large projects to prevent a recurrence of the real estate catastrophe of the neighbouring Emirate. With a global pioneering Real Estate Regulatory Authority (RERA) to help the real estate sector get back on its growth path through a thorough overhaul and review of all projects, 2012 has spelt a better year from the UAE with investors now considering it a relatively safe haven to invest in comparison to its neighbouring regions plagued by the European slowdown and the Arab Spring.

As liquidity returns, and government efforts at revival through social infrastructure spending and measures to strengthen the real estate markets and make them more transparent take effect, UAE markets have recovered steadily and received fresh projects with revived vigour in 2012. While markets across the residential and retail sectors have witnessed healthy growth especially in the higher grade properties, office market continues to be sluggish and occupier consolidation and portfolio optimization remains imminent in Dubai. Though new office supply is expected to come into the market in the latter half of

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2012, there are still a huge number of projects that continue to be on hold and some which are delayed to be delivered into 2013, totalling the largest number of such projects across the GCC.

The Kingdom of Saudi Arabia is fast becoming an attractive hub for real estate investment with the sustained budget allocations toward the betterment of the residential sector, infrastructure and other investments which provide the required fillip to spur growth across construction and real estate markets. The regional unrest in other parts of the Middle East is leading to a reversal of investment flows into this thriving market with a stable political climate.

Kuwait also has put forth ambitious developmental plans that have involved massive public sector spending on infrastructure and social needs and have managed to quell minor unrest in certain pockets which had put a dampener on certain sections of its real estate market.

Qatar continued at its steady pace to retain its share of 6 percent share of the budget totals pie in 2012 on the back of the strong pipeline of projects in preparation for hosting the World Cup 2022 Football event with bulk of the projects for infrastructure upgrades and across hospitality, commercial and retail segments of the real estate sector being awarded in 2011 and 2012, providing a healthy boost to the real estate sector.

Bahrain has also begun to recover from the adverse impact of the unrest and also benefiting from the spill over effect of Qatar’s FIFA construction and tourism boosting programmes, primarily through the healthy progress on the Qatar Bahrain Friendship Causeway linking the two countries. Bahrain is also likely to chip in to bridge the needs of raw material and manpower for construction projects in Qatar and leverage the event to revive its investor confidence and growth prospects into 2012.

Oman with its thrust on tourism likely to continue in spite of the dampener of the Arab Spring is likely to benefit from the reverse flow of tourists and investors alike away from the slowing European economies and the unrest plagued Arab Spring affected economies and help revival of its real estate markets which had been hit by the property bubble and the global economic slowdown in 2009 and 2010.

The following is a bird’s eye view of the total pipeline of projects in the building construction industry of the GCC broken down by the stage of construction it is in namely, Planned (including projects from the concept stage to feasibility study and tender for consultancy), Under Design, On Hold, Tender for Construction and Under Construction.

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GCC Projects by Stage of Construction

Figure 2: GCC Real Estate Projects by Stage of Construction, September 2012

GCC Real Estate Projects Split by Status (US$ Million), 2012

Planned 9%

On Hold Design 43% 25%

Construction 21% Tender for Construction 2%

Source: Ventures Onsite MENA Projects Database, www.venturesonsite.com

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Figure 3: GCC Projects by Country and Status of Construction (US$ Million), September 2012

GCC Value of Projects by Country and Status of Construction (US$ Million), 2012 700000

Planned Design Tender for Construction Construction On Hold 600000

500000

400000

300000

200000

Value of Projectsof ConstructionbyofValue StatusMillion) (US$ 100000

0 Bahrain Kuwait Oman Qatar KSA UAE

Source: Ventures Onsite MENA Projects Database, www.venturesonsite.com GCC’s largest market continues to be plagued by large number of projects on hold and delays, though recovery is apparent in the number of fresh projects that have come on board in 2012 as the clean up drive of the Real Estate Regulatory Authority (RERA) in 2011 of UAE real estate markets began to take effect in 2011 and have improved investor sentiments reviving the real estate markets gradually into 2012.

Other markets too have continued to witness a certain amount of sluggishness in terms of projects on hold notably Kuwait and Bahrain , owing to the international economic conditions of which slowdown in key trading partners such as and neighbouring Arab countries have adversely impacted progress Kingdom of Saudi Arabia continues to forge ahead with a healthy pipeline of projects at the planning design, tender for construction, and construction stages, with consistent government spending fuelling growth across sectors. Qatar with its World Cup 2022 Football event backed plans has witnessed a steady

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growth as most of the projects in preparation for the event have been awarded and kicked off in 2011 and 2012. However, it continues its slow cautious approach in order to prevent any catastrophes such as the cases of other countries’ overzealous construction ambitions.

Regulatory and Legal Framework of the GCC Real Estate Markets For GCC markets, real estate offers vast potential and forms the backbone of the region’s ambitious plans for diversification. However, with small native population, these countries are also heavily dependent on expatriate labour and skills to implement their plans, often at a cost to their domestic employment and dissatisfaction of the nationals and ushering in vast international funds, which if absorbed into domestic projects without a strong legal and regulatory framework, can often wreak havoc with the economy and its growth trajectory as has been proved in the case of the global economic slowdown across a number of developed and developing economies and in the case of Dubai which in its zeal faced the brunt of the property bubble and need for stronger and stringent regulation on its real estate markets. Moreover, though these markets are predominantly propped up by hydrocarbon backed government spending on a large scale, their need for private investor participation is growing in order to take advantage of the associated innovations and global scaling of operations from many of the market participants. In the light of the Arab Spring and the associated social unrest among the natives of the countries, maintaining regulations on involvement of domestic labour are also important inclusions in the legislative framework to strike a delicate balance between the need for foreign labour and capital and the development of the domestic economy and its population.

A number of procedures such as a GCC common identity card required for entry into and transacting with the government are already in place. While some countries like Qatar have allowed visa free entry to as many as 30 countries at one end of the spectrum, there are those such as Kuwait and Bahrain that restrict visas for security reasons at the other.

The real estate sector in most of the GCC countries stand as a benchmark in terms of ease of doing business, in deregulation and simplification of procedures such as time and costs involved in obtaining construction permits, finance and so forth. GCC countries are also tax free zones when it comes to tax on individual income and many of them offer corporate tax reductions in special economic zones to promote activity across these areas. Real estate ownership regulations are diverse across the region, with some

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countries allowing foreign ownership across selected locations while others allow across all areas while restricting visa renewal requirements. The following is a current overview of the key legal and regulatory developments that are taking place in each GCC country that are likely to impact the GCC real estate sector.

UAE After 2010, the introduction of new legislation across the Emirates has been relatively less, though much of the regulatory framework has evolved between 2002 and 2010.

Between 2005 and 2010, clear cut guidelines and regulations for ownership of property and transfer of property by UAE nationals, differentiating between the former, GCC nationals and foreign nationals, were framed. Special investment or economic zones were created in the Emirates of Dubai and Abu Dhabi to encourage foreign investment and allowing ownership of property to non-nationals in these select areas as an incentive. The Emirate had in 2011 also extended the tenure for extension of visa for expatriates owning property in the Emirates from the prevailing three months to three years. While the details are yet to be ironed out, this move is likely to provide a positive fillip to FDI and the UAE real estate market, especially the residential segment. There is still ambiguity over mortgage and real estate management companies and the related laws and conditions. Moreover, laws already enacted with regard to common ownership of property though established on clear legal principles continue to lack the backing to enforce them with strictness. Dubai also allowed holders of commercial and industrial land to convert it to freehold property in 2010, allowing them to develop it or mortgage it since then and a number of institutions to resolve property related disputes. The Dubai Land Authority also came up with a circular in 2011, clearly stating that it was prohibited for offshore commercial establishments except those incorporated in the Jebel Ali Free Zone to own property in Dubai.

Emiratization efforts continue to appease domestic labour by trying to limit expatriate employment though with the country’s heavy reliance on the special skills required of expatriate labour for the economy’s development and expansion plans, it is finding it difficult to strictly implement these stringently.

In 2012, a draft law on the Protection of Property Investors is also in the anvil in Dubai that opines that investors cannot be liable to the terms of the reservation form alone while paying a deposit on a property, but be allowed to go through the entire sale and purchase agreements and its terms and if not satisfied back out of the deal without losing their deposit. In Abu Dhabi too, a consolidate property law for multiple owned properties is also under consideration.

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Kingdom of Saudi Arabia The Kingdom of Saudi Arabia has consistently been ranked among the top destinations in the world in terms of ease of doing business and for more than a decade remained the regional leader in terms of ease f doing business. The only drawback is the heavy interference and role of the government in the country’s economic development activities, including stiff Saudization measures that include stiff penalties for non compliance for corporate bodies to encourage employment of domestic labour similar to all other GCC economies.

Laws are clear and well laid down in terms of ownership of property by non-nationals for commercial purposes and for non nationals with legal residency status and the right to ownership of residential property for personal use, subject to the approval of the licensing authority.

The much awaited mortgage law is likely to encourage construction in the residential segment and private participation, providing a fillip to the real estate across tiers in the economy, apart from the plans already in progress for social housing schemes funded by the government.

Qatar Qatar has already successfully reaped the benefits of opening up its real estate markets to foreign investment for commercial and residential purposes except for freehold property, the latter being restricted to only certain developments such as the Pearl, Al Khor, Qatar Island and West Bay Lagoon. In some areas classified by government as Investment district and high rise apartment buildings property is sold as a 99 year lease only. In 2011, steps had also been taken to organize its real estate sector and improve regulations beginning with making registration compulsory for its real estate agents, failure of which is likely to attract penalty up to QAR 50,000.

An integrated financial market regulator has also been a vision to better regulate lending and trading across its financial markets, with the latest regulation providing the Central Bank with complete authority over its stock markets as well. Currently Qatar has a Qatar Financial Markets Authority (QFMA), a Qatar Financial Centre Regulatory Authority (QFCRA) and the central bank with control different aspects of the financial system and the progress toward integrating them into one single regulating entity is the ultimate goal which due to its complexity is progressing slowly. Better financial regulation is likely to encourage real

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estate development and foster a healthy growth climate and investor confidence in the run up to the World Cup 2022 event hosted by Qatar.

Bahrain Free ownership of freehold property is allowed to foreign citizens for commercial and residential purposes subject to ownership limited to five locations in the country.

The significant change that has come about in the regulatory framework of Bahrain is to introduce into it the norms for sustainability in construction. Beginning 2013, Bahrain has plans to introduce sweeping changes to the regulations governing new constructions in the country, mandating the use of eco-friendly best practices in construction. The new mandate would require new construction to adhere to international environmental standards. Current requirements are restricted to making better use of natural lighting and usage of high efficiency light bulbs, heating and ventilation and air conditioning efficiencies, noise and emission reductions and usage of green materials. The new code brings in new requirements such as incorporating a minimum of 50 percent greenery in the total new development space including planting palm trees and indigenous vegetation. Rooftops of such developments must also have a green zone that uses at least half of the available space for greenery. The law is expected to be comprehensive and detailed and help reduce pollution drastically.

Kuwait While foreign investment in certain areas of real estate is permitted under Kuwaiti law such as tourism, hotels, hospitals, certain housing developments and urban development, others are not. Moreover, existing mortgage markets and regulations to open up the market are the dire need for a market which is underserved in terms of financing, especially the residential market in Kuwait. There is a need for clear regulations to encourage banks to lend to this sector and while there is a government housing scheme for first time buyers of homes as well as one for widowed or divorced women, but the amounts are not sufficient to purchase a home.

Oman Property ownership laws already in place in Oman include allowing property ownership by foreign citizens up to 70 percent and these also in only select developments subject to the court approval process. Property ownership has also been allowed to foreign nationals in designated tourist areas in a bid to boost tourism wherein all owners are granted residency visa status.

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Real Estate Demand and Supply in GCC Markets – Analysis and Forecasts Across all spheres of real estate sector, a common challenge that impacts the market at a large is luring investors’ confidence in the growth prospects offered by any particular sector thus paving way for further developments. The real estate market comprises of number of segments and sub classes off which a few outperform the others in terms of growth prospects and profitability. It is therefore imperative to understand the market dynamics of demand and supply side parameters to assess the current and future growth developmental patterns in order to make informed investment decisions. The team at Ventures, after a detailed study of the GCC real estate market, its key trends and key markets, stock of commercial, residential and retail segments and the current and past demand, has forecasted the upcoming movement of demand and supply for real estate sectors across the main GCC markets which are analysed below by country:

Saudi Arabia Real Estate Demand Supply Analysis Boasting the largest hydrocarbon reserves across all GCC nations, the Kingdom of Saudi Arabia is home to the second largest real estate market in terms of projects at all stages of construction and the largest in terms of ongoing projects. The real estate sector in Saudi is typically characterised by a growing population with increasing purchasing power dominating the demand side and prudent government spending and robust fiscal reserves catering to the growing demand. The Saudi Government in its avid efforts to diversify its economy into non-oil sector, had initiated large scale investments in two phases, one to the tune of SAR 600 billion and a further fiscal stimulus of SAR 500 billion to finance developmental initiatives in the six economic cities and provision of affordable housing units for its population thus shielding its economy from the negative effects of global economic slowdown.

The following figure reflects the demand and supply for real estate across the three main segments of the market namely, commercial, residential and retail from 2011 to 2015.

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Figure 4: Saudi Arabia Real Estate Demand and Supply by segment (Square Metres), 2011-2015

45,00,000

40,00,000

35,00,000

30,00,000

25,00,000

20,00,000

15,00,000

10,00,000

5,00,000

- Real Estate Estate Real demand and Supply bySegment (inSquare Meters) 2011 2012 2013 2014 2015

Residential Demand Residential Supply Commercial Demand Commercial Supply Retail Demand Retail Supply

Source: Jones Lang LaSalle, Colliers International The real estate sector in Saudi Arabia offers some of the world’s best investment opportunities thanks to the strong domestic housing demand, large scale infrastructure developments and an impressive project pipeline. A majority of real estate projects in Saudi is concentrated on the largest cities of Riyadh and Jeddah. The opportunities and challenges provided by the three major real estate sectors are analysed as under

Saudi Arabia Residential Sector The residential sector in Saudi Arabia is one of the fastest growing markets buoyed by an escalating demand chasing limited supplies thus prompting a slew of measures taken by the Government to provide affordable housing units to cater to the clamouring demand. The demand for residential units are expected to reach 17, 34, 040 units by end of 2015 when compared to the 14, 67, 340 units as of 2011. The long awaited mortgage law finally witnessed its approval in the second quarter of 2012 and has made its impact

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felt as early as the beginning of the third quarter with mortgage lending growing up to 50 percent to SR 48 billion in Quarter 2 of 2012.

Residential market in the capital city of Riyadh is expected to witness an addition of approximately 23000 units by end of 2012 thus bringing the total residential stock to 912,000 units by the end of the year. A significant majority of these projects will be delivered through small projects comprising less than 20 units. An additional 130,000 units are expected to enter the market by 2015. Most of the new supply completed during the last quarter had been sold off with a very limited inventory available for sale. The first affordable housing project by Ministry of Housing in Riyadh is expected to deliver 2000 units over the next five years. Commercial banks and financing companies have relaxed their financing terms to felicitate the healthy growth in demand. Families can now submit a joint mortgage application to fulfil the salary criteria. Following the success of Rafal tower, interest in offering branded residences for sale is increasing. With the consistently increasing land prices, a greater share of apartments in the compound market is expected to make inroads in future.

Residential sector in Jeddah witnessed an addition of 4000 units in quarter 1 of 2012 with most of them being smaller projects comprising less than 30 units. Units targeted at middle income segment had been sold off as soon as they were released. An additional 12000 residential units are anticipated to be released in 2012 off which a majority are again small projects comprising less than 30 units. Government and semi government entities are working in tandem to develop affordable housing in Jeddah as private sector is facing challenges to provide solutions to lower income households. The Ministry of Housing has identified two locations in Jeddah for affordable housing schemes the exact specifications of which are yet to be announced. One of the rare private sector project aimed at the affordable sector is by the Henaki group comprising a 1000 unit apartment project in Kandarah area thus recording the first large scale project targeted at middle and low income household.

Saudi Arabia Commercial (Office) Sector Growth in the commercial or office sector in Saudi Arabia, similar to other countries across GCC, faces challenges pertaining to oversupply facing a gradually declining demand thus leaving a negative impact on the occupancy rates and consequently the rentals and sales of commercial premises though the magnitude of such impact in Saudi is far lesser compared to the other nations in GCC. Despite challenges on oversupply there exists demand for new and high quality space as evidenced by one of the largest ever

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deals in Riyadh market occurring in Quarter 1 of 2012. A large Saudi Telecom company has pre leased 80,000 square meters in the first phase of ITCC project that is due to be completed by the end of 2012.

Riyadh currently has a total office stock of 1.6 million square meters excluding the recent completion of 10,600 square meters of Sultan building in quarter 1 of 2012. A further 462,000 square meters is touted for completion over the rest of 2012 which includes the first buildings in both King Abdullah Financial District (KAFD) and ITCC. Other projects expected completion includes Granada Business Park on Eastern Ring Road and Al-Anoud Tower II and Mount Tower on King Fahd road. While some of this space is likely to be delayed in 2013, all these projects are well under construction and are likely to result in considerable increase in quality stock in Riyadh over the next two years. Office vacancy rates in Riyadh remained stable in quarter 1 of 2012 with citywide and CBD vacancies at 12% and 16% respectively. However vacancy rates are expected to increase on account of the proposed addition of new supply into the market thus resulting in intense competition to secure large tenants.

At the end of quarter 1 of 2012, Jeddah is home to 536,000 square meters of office space with a proposed addition of a further 134,000 square meters expected completion in the remaining 3 quarters of 2012 thus bringing the total commercial real estate stock to around 670,000 square meters by the end of 2012. The largest proposed delivery for 2012 is the Headquarters project on the Corniche scheduled for occupation during quarter 4 of 2012. Although the credit situation has eased actual project deliveries may be lower than expected in 2012 as developers perceive the oversupply situation could worsen over the coming years. Improvements in infrastructure in Prince Majed and King Fahad Street will further create new districts for offices in competition to the increasingly congested Madinah Road.

Saudi Arabia Retail Sector Similar to the Commercial sector, retail sector in Saudi Arabia is again witnessing greater stability with supplies matching the growing demand and even exceeding in certain places thus paving way for an intense competition for quality retail space whilst maintaining stability in occupancy rates and consequently the rentals and sales of retail real estate stocks. Demand for retail space was estimated at 13, 55,370 square meters of GLA as of 2011 and this expected to reach 21, 86,040 square meters by 2015.

Retail market in the capital city of Riyadh is witnessing increased repositioning and renovation of existing malls. The Sadhan Mall in Sulemania has reopened their hypermarket and the Al Bustan Centre is also

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currently undergoing renovation. Outside the organised retail mall space, a major project that witnessed completion was the Electro standalone store in Salahudin Al Ayoubi Street to the south of Riyadh. Major super and hypermarkets expected completion is the third outlet of Lulu Supermarket/hypermarket to be located in Bathaa in the second quarter of 2012. Al-Qasr mall in Sweidi area is the next major mall expected completion by end of 2012 and is likely to add 76,000 sq m of which 60 percent of the area has already been pre leased. Total mall based retail supply is expected to reach around 1.52 million sq m by the end of 2015. Around 1, 88, 000 sq m of this additional retail space is in mixed use projects within the KAFD and ITCC.

Jeddah witnessed the completion of Haifa Mall on Falasteen Street and the Central Park in Majed Street anchored by a hypermarket in 2011. The next major mall expecting completion is the Flamingo Mall on Prince Street by the end of 2012. This project is expected to add approximately 46,000 sq m and is anchored by Carrefour. Beyond 2012 there is an average of 63,000 Sq m of retail floor space due to complete each year representing two major projects per annum. This is likely to result in a two tired market with downward pressure on rental levels in less strong centres. The retail market in Jeddah is witnessing increased repositioning activity with major malls such as Danube taking up a large unit at Central Park; Carrefour’s pre-commitment to space in flamingo Mall, Hera international which previously lost a major tenant successfully repositioning its image by attracting several new quality tenants during the third quarter of 2012.

Thus with its augmented focus on plugging the demand supply situation in provision of affordable housing units in addition to provision of social infrastructure financed by prudent Government spending in addition to luring local private and foreign investors, the Saudi real estate market is all set to ensure a sustainable economic development with growth opportunities in both hydro carbon and non oil sectors.

UAE Real Estate Demand Supply Analysis UAE, construction developer’s delight had forever remained the most favourite destination despite the challenges posed by global economic downturn, oversupply across the different sectors in the real estate, credit crunch delaying or cancelling projects. Compared to other established markets, UAE admittedly had suffered the pangs of Global economic downturn thus witnessing a subdued year with construction delays and cancellations affecting the growth momentum for a short span. The country had however gradually stabilised and retained its leadership position thus remaining the largest market for construction projects

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across GCC with construction projects worth US$ 879.991 billion across various stages of construction. The beginning of 2012 witnessed signs of improved investor confidence flowing into the real estate sector with continued demand for quality, well located and income producing assets. The major real estate markets of Dubai and Abu Dhabi are experiencing impressive signs of growth albeit treading on cautiously. The overall residential market is experiencing a positive trend with markets for villas continuing to outperform the apartment sectors across Dubai and Abu Dhabi. Prime residential buildings in well established locations continue to see improved performance. Demand for retail sector remains buoyant in the best performing super regional malls resulting in an increase of prime rents with the country experiencing a two tier market wherein older and less popular malls are witnessing a weakened demand.

The following figure represents the estimated demand and supply across the various segments of the UAE market between 2011 and 2015.

Figure 5: UAE Real Estate Demand and Supply Estimates by Segment (Square metres), 2011-2014

1,20,00,000

1,00,00,000

80,00,000

60,00,000 Meters) 40,00,000

20,00,000

Real Estate Estate Real Demand andSupply by Segment (in Square - 2011 2012 2013 2014

Residential Demand Residential Supply Commercial Demand Commercial Supply Retail Demand Retail Supply

Source: Jones Lang LaSalle, Colliers International, Abu Dhabi Urban Planning Council

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MENA Real Estate Market - Overview September 2012

After three years of subdued performance with declining rates and limited sales activity, the real estate market is on its way to recovery with established quality communities showing increases in values and higher transaction volumes in 2012. The developments in the three major sectors of residential, commercial and retail sectors across the primary markets of Dubai and Abu Dhabi are described below

UAE Residential Sector The first half of 2012 witnessed the residential real estate market bouncing back its way to recovery with the major markets of Dubai and Abu Dhabi witnessing an increase in the rental and sales prices particularly in the apartments and villas category. The second quarter of 2012 saw an addition of 3,000 additional residential units in Dubai this bringing its total residential stock to around 344,000 units with a significant majority amongst the new additions being apartments. Notable projects handed over this quarter included The Villa- phase three in , two towers in , three buildings in Dubai Silicon Oasis and a complex of 26 buildings in International city. According to developers, a total of 24,000 additional units are currently scheduled to be delivered in the second half of 2012. The main locations that are expected to see new completions in the coming six months are Al Furjan (4,000 units expected to be delivered), Jumeirah Village (approximately 3,400 units), Dubai Marina (2,300 units), Dubai Sports City (2,200 units) and Dubai Silicon Oasis (1,800 units). In reality, some of the proposed projects might be delayed beyond their schedule date. The villa market began to see some uptick towards the end of 2011 and this trend has continued into 2012. As of May 2012, villa sale indices have increased by 21 percent year on year and are now 9 percent higher than early 2008 levels. Approximately 2,900 additional residential units were delivered in Abu Dhabi during Q2. The majority of these units are in Rihan Heights and Bloom Gardens in the Grand Mosque District, Burooj Views and Marina Blue on Marina Square and Amaya Towers on Shams. These deliveries bring the total residential stock to approximately 199,800 units at the end of Q2 2012. Up to 11,000 units are scheduled for completion in H2 2012 but it is expected that many of these projects will experience further delays at the final stages of approval. Approximately two thirds of the upcoming supply comprises apartments, with the majority of the upcoming villa supply being within Emirati housing communities such as Al Falah and Watani. Most of the supply for delivery in 2012 comprises additional units in master planned developments including Reem Island, Al Reef Villas, Danet, and Rawdhat. Additional supplies also include Nation Towers on the Corniche, Al Bateen Park and Marasy in Bateen. Although a large proportion of the residential pipeline announced prior to 2008 has since been delayed, the aggregate supply could still reach 238,000 units by the end of 2014. The completion of new high-end apartment

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buildings will improve options for higher income residents and increase vacancies in lower grade assets as tenants upgrade. The sales market has witnessed increased activity in Q2 2012 with interest primarily from Emirati purchasers. The number of sales transactions has increased in line with completions in investment areas and improved market confidence.

UAE Commercial (Office) Sector The commercial or office sector in UAE is witnessing a gradual stability with a two tier market situation wherein demand for quality space keeps growing at a healthy pace whilst that off B grade or less popular locations facing a downward trend with a glut in supply chasing a receding demand. Growth prospects in this sector proceeds at a slightly slower pace with projects slated for completion during the first half of 2012 or even earlier facing severe delays.

Dubai’s total city-wide office stock stood at approximately 6.1 million sq m at the end of Q2 2012. Only 58,000 sq m was delivered in the second quarter of 2012. The major completions during the quarter were the Platinum Towers in Jumeirah Lakes Towers (JLT) and The Annex, an office building annexed to in Downtown. The majority of office supply remains concentrated in onshore locations (53%), compared with a lower proportion of the existing stock located in free zones (47%) and available to companies operating with offshore licenses. An additional 640,000 sq m of office supply will enter the market in the second half of 2012 if all the projects are delivered without delays. This still represents the lowest level of completions since 2007. In reality, not all the proposed space will complete in 2012, with some projects being delayed into 2013 and beyond. In addition to this supply, there is a further 2.2 million sq m which has been placed on hold. Prime quality buildings in areas such as TECOM, SZR and Burj Downtown continue to be popular locations for corporate and are witnessing stabilising rents, but poorer quality space and buildings in secondary locations continue to see rental decline. With limited supply entering the market, vacancy rates in office sector remained stable at around 35%. While well-established buildings in DIFC such as The Gate enjoy high occupancy rates, other areas still suffer high vacancy rates, and this trend is not expected to change soon, especially with the approach of the quieter summer months. Although prime buildings are witnessing stable rental levels, secondary locations are expected to see further rental decline in the second half of 2012 due to the large new supply and weak tenant demand that is further exacerbating the supply-demand imbalance and the two tier nature of the Dubai office market.

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MENA Real Estate Market - Overview September 2012

The capital city of Abu Dhabi on the other hand has reached a point where tenants are able to upgrade space without incurring a significant increase in rent or total occupancy costs. The expanding range of new office supply is likely to spark a wave of increased rental incentives and other inducements, as the competition for tenants intensifies. In the current market climate, tenants remain particularly price sensitive and are attracted to projects where landlords adopt the most flexible terms and conditions. The majority of office demand in Abu Dhabi continues to come from tenants looking to upgrade from existing premises, rather than businesses establishing new operations or major expansions. Given modest take up rates and rising stock, vacancy rates are expected to increase and rents are expected to fall further over the short to medium term. Recovery of the office market is largely dependent on government economic development initiatives to drive employment growth in office related sectors. The decrease in residential rents and availability of better quality housing will have a positive impact on office demand by making Abu Dhabi more attractive for companies to relocate or expand their offices. Demand from the private sector remains limited, with most current requirements being for relatively small areas of between 300 sq m and 400 sq m. Government entities and state-owned enterprises constitute the majority of large scale requirements. However, most of this demand is likely to be accommodated within their HQ projects. The only major new delivery to the Abu Dhabi office market in Q2 2012 was the Al Noor office tower at Al Muneera, Raha Beach. This project added around 17,600 sq m of GLA, bringing the total office stock to approximately 2.72 million sq m. Several large-scale office projects are scheduled to be delivered in the second half of 2012, including Nation Towers on the Corniche, Al Bustan Complex on 29th street, Trust Tower at Central Market, ADIC HQ (Al Bahr Towers) and Capital Tower at Capital Centre. These projects have the potential to add a further 345,000 sq m to the market in 2012. However, it is likely that some of these projects will experience additional delays. The recent handover of Grade A office space and anticipated future supply is providing tenants with an improving standard and range of options from which to choose.

UAE Retail (Office) Sector Retail sector in UAE had forever led the GCC retail market with Dubai touted to remain the Global shopper’s paradise boasting a plethora of state of art malls and other retail establishments. The shopping festivals hosted in Dubai had remained a major tourist attraction across the world for several years in a row now. UAE's insistence on evolution backed by the growing economy, rising purchasing power, and strong consumer confidence has shaped retail with a new dimension. Along with these favourable conditions, supportive government policy frameworks and active participation by the private sector have further

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facilitated retail sector's growth in the country. UAE retail industry has been witnessing strong growth in sales for the past few years and is expected to grow in the coming years as well. Surging public and private sector consumption along with the contribution of strong industry verticals (tourism, trade, banking, etc) are expected to help the retail industry to grow at a CAGR of more than 3% during 2012-2015. Rapid development of modern retail infrastructure is luring consumers for convenient shopping experience and transforming them into high-retail spending. Per capita gross leasable area (GLA) is also increasing in the country with construction of new malls and expansion of some of the existing malls. In addition, fast inflow of foreign retailers is fuelling growth in the shopping mall retail area development. We anticipate that, this trend will prevail in coming years and gradually boost the retail sales growth. Retail sector in the commercial city of Dubai remains dominated by large Super Regional Centres. These currently account for 64% of mall based retail space however this percentage is likely to decline in the coming years as the retail market sees increased emphasis on smaller Community Centres. The only major retail completion in the first half of 2012 was the Madina Mall in Muhaisanah 4, with Carrefour as a main anchor tenant. In the second half of the year, around 16,000 sq m is scheduled to be delivered with the Phase 1 of Meraas The Avenue retail project. There have been a number of new retail announcements made during last quarter. Meraas announced two projects, the second phase of The Avenue in Satwa and a smaller development in Dubai Marina. Nakheel revealed The Pointe on while other retail projects have been announced as part of Dubai Sports City. With the construction of Mall of Arabia currently on hold, the next significant retail completion in Dubai is likely to be the 158,000 sq m extension to Dragon Mart in International City which is due to be delivered to the market in 2014. The Dubai Pearl Shopping Mall is due to complete in 2015 The capital city of Abu Dhabi witnessed a total retail GLA of 1.68 million square meters as of quarter 2 of 2012. The delivery of the retail podium in Etihad towers increased the retail stock by around 7600 square meters in Q2, 2012. There have been major delays in the scheduled openings of retail centres, but an additional 300,000 sq m of retail GLA could enter the market during 2012. Major retail centres scheduled for delivery during H2 2012 include Deerfield’s Townsquare in Bahia, Emporium Mall at Central Market and Capital Mall in Building Materials City. Danet Mall could also be delivered in 2012 as construction is almost complete; however the opening date remains uncertain. In addition to new malls, a number of other projects (including retail offerings within mixed-use schemes) are expected to enter the market, adding more high quality retail space. These include Boutik at the Sun and on Reem, the retail mall at Nation Towers, The Collection at The St. Regis and The Galleria on Sowwah Square. Some community retail space has opened on Reem Island, including a Géant supermarket in Marina Square and Waitrose in Sun

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and Sky Towers. Despite revisions to previous projected supply figures, total retail stock could reach approximately 2.3 million sq m by the end of 2014. Non-mall space currently dominates the Abu Dhabi retail market, accounting for approximately 50% of total supply. Super Regional and Regional Malls currently account for 38% of total space and lead the market in terms of performance. Upcoming retail supply will increase the proportion of mall space in Abu Dhabi as multiple community and regional malls are delivered. The upcoming retail supply is expected to change the retail dynamics in Abu Dhabi, improving the quality and retail mix. The proportion of high-end retail has increased with the opening of luxury stores in the Etihad retail podium and is set to further increase with the delivery of The Galleria on Sowwah Square and the retail centre in Nation Towers. The biggest retail development currently under construction is Yas Mall on which is expected to be completed by late 2013. Due to the large supply in the pipeline, owners of existing retail centres are making more effort to reposition their malls to attract both retailers and consumers. Thus the real estate sector in UAE is witnessing greater stability across all platforms of residential, retail and commercial segments thus leading its way to a steady recovery with demand for quality spaces at prominent locations gearing up whilst those Grade B projects in lesser prominent locations suffering the pangs of oversupply targeting a receding demand. Over the years, the market is expected to witness greater consolidations offering promising opportunities for quality real estate properties.

Qatar Real Estate Demand Supply Analysis Backed by the fastest growing economy and robust fiscal reserves the Real estate sector in Qatar has witnessed promising developments following the Qatari Government’s avid plans as laid out in its National Vision 2030 mandating a complete development chart for its social infrastructure to achieve a balanced economic development between its hydrocarbon and non oil sectors. The year 2012 spells good fortune for the real estate sector as banks in Qatar are now beginning to increase their lending exposure to the real estate sector in a big way after having shunned the sector as a risky one during the period of global economic downturn. The figures indicate that credit dispensation for property sector has now more than quadrupled, touching QR82bn in first half of 2012, from QR19.8bn in 2007. Although the banks adopted a cautious approach when lending to real estate sector until 2009, when real estate was in a bad state, but, things have changed ever-since Qatar won the coveted 2022 World Cup bid at the end of 2010.

The following are the estimates of real estate demand and supply for the Qatar real estate market across its key segments, namely commercial, retail and residential between 2011 and 2015.

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Figure 6: Qatar Real Estate Demand and Supply Estimates by Segment (Square Metres), 2011-2015

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Source: DTZ Research, Colliers, Asteco, Zawya

Qatar Residential Sector Residential sector in Qatar remains greatly benefitted by the country winning the bid to host the World Cup football Event in 2022. Qatar has plunged in a large amount of investment in upgrading its infrastructure in preparations for hosting the prestigious sporting event with the residential sector is witnessing increasing demand particularly in locations where infrastructure projects are planned or under construction across various parts of the country. Furnished residential flats have seen increase in demand by 3 percent, while non-furnished flats have seen 1.7 percent growth in demand, over the same period last year. A similar demand has been recorded for furnished luxurious residential flats, wherein the three bedrooms have seen 3.5 percent growth in demand, while similar non-furnished flats have seen an increase of 0.5 percent. The strong increase in demand for single and double bedroom apartments have

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pushed up the rental rates in Qatar wherein the second quarter of 2012 witnessed an increase of 8 percent in the rentals when compared to q1 2012.

Keeping pace with the increasing demand, the supply of residential units is also progressing at a healthy pace with Souq Waqif Boutique hotels recent release of four triple bedroom and five single bedroom residences into premium segment of Doha rental market. Earlier in June 2012, the Barwa City complex had received its first tenants with over 40 percent of total units being allocated to various Government departments including the Ministry of Municipal Affairs and Urban Planning Development. The residential units are of various sizes and include three bedroom flats, double bedroom flats, studio apartments in two storey, three storey and four storey buildings. Additional residential units are expected to reach the market by 2013 when City is anticipated to host its first tenants towards the end of next year. several investors have begun constructing buildings, with some of them already in the commissioning stage. Lusail City will be complete by 2020. This project has the capacity to accommodate nearly 200,000 residents and 170,000 employees in its commercial area, and will welcome more than 80,000 visitors. The total estimated population of Lusail is 450,000. The Lusail City, spans across an area of 38 square kilometres and includes four exclusive islands, 19 multi-purpose residential, mixed use commercial and entertainment districts. In short, it is a comprehensive arena with residential buildings, commercial avenues, leisure spots, public ports and avenues.

Qatar Commercial (Office) Sector In a stark contrast to the residential sector, the commercial or office sector in Qatar faces oversupply challenges with demand for office spaces in Doha remaining limited and the market continues to receive an oversupply of commercial properties. Total city wide office stock is currently estimated at 3.4 million square meters. The majority of Grade A stock, approximately 1.2 million square meters is located in Diplomatic City and West bay. Office buildings in these areas continue to lead the prime market, housing major Government bodies, financial institutions, oil and gas companies and other multinationals and can command a premium of up to 35 percent above average asking rents. However, despite the strong economic growth being experienced, demand for office space remains at a subdued level with most requirements being for space less than 500 square meters. Vacancies in West bay have increased significantly as more development projects have reached completion, which has had a compressing effect on rental levels. Government entities will continue to provide the major proportion of office demand in the short term, however a number of construction and engineering services companies are expanding their

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regional operations, setting up in Doha to service the infrastructure work being undertaken in advance of the 2022 World Cup. The government has identified the small and medium enterprises (SMEs) sector as a future opportunity for growth with professional and financial services firms also expanding their presence. This coupled with Qatar’s strong economic fundamentals should improve Doha’s competitive presence in the regional and international market.

Qatar Retail Sector Retail sector in Qatar had undergone a dramatic change over the past decade shifting from the more traditional profile of small shops and souqs towards larger malls and dedicated shopping districts. The country’s retail real estate segment is expected to see a gross lettable area of 1 million square metres by 2012, up from 45,000 square metres in 2000. With new retail projects either under construction or in the planning stages, Doha’s GLA is expected to top 1 million square metres by 2012, a far cry from the 45,000 square metres of 2000. This represents a 20-fold growth in 12 years. Much of this new retail space is being developed in conjunction with massive property projects such as The Pearl Qatar, which will have nearly 200,000 square metres dedicated to retailing, and the soon-to-open Lagoona Mall, with more than 50,000 square metres. The increase in supply of retail space is matched by an equally robust demand fuelled by an expanding economy though not at the double digit rates enjoyed over the past few years.

Thus the real estate sector in Qatar is set to experience mixed prospects with commercial real estate likely to be the most benefited from the activity surrounding the World Cup event followed by the retail sector though the frantic pace of supply that is entering the market has caused some concern for analysts who believe will be hard to match with demand after the completion of the football event.

Kuwait Real Estate Demand Supply Analysis In stark contrast to the established and developing markets of Saudi Arabia, UAE and Qatar, the emerging real estate sector in Kuwait had witnessed a challenging year bogged by the effects of Global economic downturn and the political unrests impacting the economic developments across GCC. Similar to other established market, Kuwait too has been plagued by oversupply challenges as it embarked on its ambitious plans of expansion and diversification similar to the other GCC countries in 2011. However a recovery in the real estate sector in Kuwait is expected in 2012 after property sales increased by over 35 percent in 2011.

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The figure below describes the demand and supply forecast for Kuwait real estate sector across the three major segments of residential, commercial and retail for the years 2011 to 2015

Figure 7: Kuwait Real Estate Market Demand and Supply Estimates by segment (Square Metres), 2011 -2015

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Source: Markaz, Capital Standards, NBK Capital, Construction Week Online

Kuwait Residential Sector Residential sector in Kuwait is typically driven by the growth of expatriate population constituting the largest component of Kuwaiti population in addition to ensuring greater transparency and maturity leading to complete information exchange in the real estate sector. According to the latest GCC economic outlook report from the National Bank of Kuwait (NBK), total value of real estate purchases reached KD 2.7 billion as of 2011 off which residential sales accounted for 54 percent of the total sales. The year 2011 also experienced 11 percent increase in the total number of transactions with most of these increases coming

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from the residential property transactions. The real estate sector recovered further in 2011, with special sustained interest in the investment sector, i.e. apartment buildings that generate income. Residential sector sales were KD87.5 million for December, a 15.1% increase year on year. The investment sector, mainly apartments and buildings intended for rental, saw KD61.3 million in transactions for December, a 14% drop year on year. ‘The decline stemmed from a decrease in the number of transactions, which dropped 13% year on year. This slow down is likely to be temporary and activity in the sector should pick up in the months ahead, as investor interest remains high.

Kuwait Commercial (Office) Sector The Kuwait office market is primarily located with the CBD/Sharq area of and Kuwait Free Trade Zone (KFTZ). Of the total stock of 1.2 million square meters approximately 30 percent is prominent Grade A properties such as Sahab Towers housing companies such as Microsoft, BP, Shell, United Airlines, Cisco and Arraya Tower which is the current location for National Bank of Kuwait. New supply that is currently being pre-leased includes Al Hamra Tower in Kuwait City’s Sharq district providing a GLA of 100,000 square meters of office space over 70 levels. Occupiers continue cost cutting and there has been increase in second hand space entering the market as more companies consolidate their operations. The market has become increasingly tenant favourable. Rent levels peaked in mid 2009 at an average of KD 12-15 per square meter per month. Since the onset of financial crisis rents in a few areas have fallen by as much as 50 percent with modern offices quoting KD 6 per square meter per month. With demand levels still subdued further downward pressure on rental levels is anticipated over the next 6 to 12 months. Given the level of supply available and the significant number of buildings coming to the market, it is likely that without substantial political intervention and broadening of the economic base of Kuwait, the office oversupply will continue to spill its negative effects over the short to medium term.

Kuwait Retail Sector

Retail sector in Kuwait remains an important contributor to the economic development despite the absence of vibrant tourist attractions, bitter climatic conditions or stringent Muslim laws. Kuwait is a cash rich oil exporter and remains as a key player in the region’s retail boom attracting the interest of international brands and high flying business people the world over. Kuwait’s growth in this sector is down to the high disposable income per capita among its population, not to mention a favorable long term economic outlook. According to estimates by the International Monetary Fund (IMF), the country is one of the richest in the world, with a 2011 GDP per capita of over $40,700. Economically, Kuwait remains in a

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MENA Real Estate Market - Overview September 2012

strong position because of its growing oil and gas sector, as well as strong government spending. Kuwaiti consumers are sophisticated and have high levels of disposable income. They are keen to shop in large shopping centers that provide them with a range of high-quality, international brands. Boosting the retail market further, is a growth in urbanization, busy lifestyles, and working women. Whilst almost 99 percent of the population is expected to be classified as urban by 2015, surging disposable incomes among families mean that ‘premiumisation’ is becoming a potential avenue of growth. Added to this is a rise in the number foreign workers crossing the border from Iraq, also said to be helping increase retailers’ profits. In the next three years, the consultancy expects the value of the retail segment to rise by 43.1 percent, from KWD2.27bn ($8.45bn) in 2011 to KWD3.25bn ($12.09bn).

However, this is not to say the market in Kuwait is free of challenges. The country’s high oil revenues and hefty consumer purchasing power were unable to protect it from the global financial crisis, which hit the country’s GDP growth hard as it fell into negative territory amid years of strong growth. This, combined with high inflation during 2008 and 2009, had an extremely negative impact on consumer confidence and spending, particularly among expats. Though retail is fairly resilient within the GCC, it is only specific categories within the sector that have managed to flourish throughout the more difficult times, such as more value products. Importantly, retailers are not the only ones suffering. Malls, which were originally designed to accommodate the pre-recession market, are also bearing the brunt of the change, with the gap between the country’s primary and secondary shopping centers becoming ever more apparent. In addition, competition between hypermarkets is also expected to heat up, whilst the fashion market will continue to soar as a slew of big players descend on the market. It all adds up to a bonanza for local shoppers, who are witnessing a retail boom in the unlikeliest of areas.

Thus with the real estate sector providing mixed growth prospects in terms of encouraging developments in the residential and retail segment whilst bearing the brunt of oversupply challenges in its commercial arena, investors vying to enter this market are encouraged to assess the quantum and extent of opportunities and challenges posed by these sectors prior to making informed decisions.

Bahrain Real Estate Demand Supply Analysis Real estate sector in Bahrain remains subdued experiencing a moderate recovery from 2011 where the country’s economic development suffered the negative effects of global economic downturn in addition to the countrywide political unrests causing further damages to an already battering economy. The Kingdom’s

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real estate sector continues to experience difficulties, with the residential, office and commercial segments all seeing little activity in the first half 2012. However, as private developers reconsider several projects currently on hold and government infrastructure projects get underway, there is a general sense that the sector may be close to a turning point. Most segments of the real estate sector have been quiet in the second quarter of this year, but though numbers are still modest, developers are beginning to sell residential units in targeted market segments, such as middle-income villas. The following is the estimate for Bahrain Real Estate Demand and Supply across Segments between 2011 and 2015.

Figure 8: Bahrain Real Estate Demand and Supply Estimates by Segment (square Metres), 2011-2015

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Source: Source: Jones Lang LaSalle, Colliers International Despite witnessing a challenging year ahead, the real estate sector in Bahrain is experiencing a gradual recovery with modest growth particularly in the residential sector thus presenting some opportunities as described below

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Bahrain Residential Sector The residential segment in Bahrain is characterised by a strong demand for low cost affordable housing units which is yet to be met by new stocks. However, Bahrainis in the lower income group are often not in a position to invest in such units even if it were available thus creating a rental market for relatively small, inexpensive apartments. High land prices, which have largely been the result of speculative activity by wealthy Bahrainis and corporate investment, together with the lack of infrastructure in remote areas and high building costs, have also made it difficult for private developers to lower costs enough to meet the lower-income segment’s housing needs. As a result, they have turned their focus to the middle-income segment, where some master-planned projects have revised their schemes to attract this group. Sales to expatriates and investor/speculators remain minimal at the moment but may well be stimulated in the near future by the perception that the Kingdom has pressing housing needs across a variety of sectors and locations, and current prices may well represent good value in the context of likely future movements. While there have been some reports of a rise in the number of foreigners seeking rental accommodation, mainly due to an increase in expatriates being employed in the hydrocarbons sector, this move in the market is acutely area-specific. Also contributing to stabilising rental costs is the lack of new properties coming on to the market with the limited take-up of available rental accommodation draining the supply pool. However, this has only been enough to reverse the downward movement in rents but not push them back into positive territory. One factor that may help stimulate activity in the sector, and the associated construction industry, is the government’s plan to pump $550m into fast-tracked, low-cost housing, with the programme aiming to reduce at least some of the pool of more than 50,000 families waiting for state accommodation.

Bahrain Commercial (Office) sector In the commercial real estate sector, although the earlier political demonstrations and civil unrests witnessed in the first half of 2011 have now subsided, their wider implications for the economy and the real estate sector are still being felt with low levels of investment, development and occupier activity relative to historic levels. The current supply of office space across the three main CBD’s of Bahrain (Seef District, Central Manama and The Diplomatic area) is approximately 650,000 square meters with an estimated vacancy of 25 percent approximately. Although the country has reached a point of relative stability and many future projects have been cancelled or postponed the effect of demand and supply imbalance is not expected to improve in the immediate term and rental levels are likely to move further down in 2012. As Bahrain strives to retain its role as a regional financial centre, Government efforts to

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support the private sector and reinstall confidence in the market will be crucial for the retention of international companies and attracting foreign investments.

Bahrain Retail Sector The outlook for the retail sector is mixed, with some of Bahrain’s shopping centres are facing difficulties, while other indicators suggest that consumer sentiment remains solid and spending could be set to rise. Intense competition between malls, increase in the number of smaller neighbourhood shopping centres and unrest in some areas have combined to weaken the performance of several of the country’s malls. While malls such as the City Centre and Seef Mall continued to enjoy high occupancy and strong rental rates, others have had difficulty retaining tenants and drawing customers. The entry of the 150,000-sq- metre City Centre mall in 2008 has had a major impact on rates and occupancy levels at other local shopping venues. The remaining malls have been faced with increasing vacancy rates and lower profile tenants, and in some cases rates have fallen by almost 75% as mall management have sought to maintain both occupancy and footfall levels. Low occupancy rates in major office complexes like Bahrain Financial Harbour (BFH) have reduced traffic for associated retail outlets. Despite these issues, new retail projects are moving ahead. In mid-May2012, the management of the residential and commercial project Diyar Al Muharraq announced it had signed an agreement with Chinese firm Chinamex to roll out a themed shopping mall on the Bahraini company’s self-titled island. Work on the 46,000-sq-metre Dragon City retail centre will begin shortly and the company has said it expects to attract 500,000 visitors a year once completed in September 2014. The Kingdom’s retailers also look set to benefit from improving consumer sentiment, with a number of key indicators suggesting activity should pick up in the latter half of 2012. According to the findings of the latest regional consumer confidence survey conducted by market research firm YouGov, Bahrain’s consumer confidence remains resilient, with many shoppers indicating they could raise their spending levels. While the majority (58%) of Bahraini respondents thought it was a bad time in terms of business conditions, some 24% said it was a good time to make purchases. This positive news for retailers was further bolstered by the survey’s findings, which showed Bahrain’s Propensity to Consume/Spend Index (PCI) rose to 104.9 points, meaning a majority of respondents were likely to increase their spending in the coming months. Thus with its focus on gearing the real estate sector back to the pre recession levels and moving ahead with the development reforms, Bahrain has various opportunities to offer in terms of affordable housing units and retail developments whilst seeking optimisation in the over supplied commercial real estate arena.

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Oman Real Estate Demand Supply Analysis Buoyed by high oil prices and robust economy, the real estate property market in Oman is set to remain strong in 2012 but under the constraints of a continuing oversupply market, buyers and tenants will very much be governing the sector. The real estate sector in Oman is set for progressive developments ensuring greater professional practices and transparency with the recent launch of Oman Real Estate Association in second half of 2012. The beginning of 2012 witnessed a steady and cautious recovery in the real estate sector driven by Omani Government’s augmented efforts to improve the tourism and hospitality sector into transforming Muscat as the most preferred Global tourist attraction. However, the impacts of global economic downturn and the Arab spring impacting the neighbouring countries of Bahrain had indeed left its lasting effects on the sector in Oman as well with oversupply challenges impacting a few sectors in a more pronounced manner whilst others have exhibited greater resilience.

The following is the demand and supply estimate for the Oman Real Estate Market across Segments between 2011 and 2015.

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Figure 9: Oman Real Estate Demand and Supply Estimates across Segments (Square Metres), 2011-2015

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Residential Demand Residential Supply Commercial Demand Commercial Supply Retail Demand Retail Supply

Source: DTZ Research, Colliers, Asteco, Zawya

Oman Residential Sector The residential sector in Oman had exhibited strong resilience posing a gradual recovery from the effects of global economic downturn and political unrests affecting the economy as a whole. The start of 2012 witnessed a significant increase in apartment supply across Muscat matching a steady demand in established locations. Good quality apartments in prime locations will retain or even increase their value due to strong demand and limited opportunities for further development in the restricted areas. The residential sector is likely to witness a two tier market wherein well designed properties suited to tenants’ desires have relatively stable rental values and high occupancy rates whilst those that are poorly designed have declining rental values and increasing vacancy rates. The sales market will continue to be fluid and

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somewhat unpredictable with both buyers and owners playing a waiting game within the residential property market.

Oman Commercial (Office) Sector The Commercial real estate sector in Oman is expected to remain in good health following an anticipated growth in general business and industrial sectors in Muscat over the next five to ten years. The stock of modern purpose built office space in Muscat has increased dramatically over the last few years stimulated by economic and demographic growth and the Government’s diversification and privatisation initiatives. Existing graded stock totals approximately 600,000 square meters the majority of which comprises Grade B space. Buildings that meet with international company’s requirements remain limited in supply. However this is set to change over the coming years with the expected completion of several new buildings including Al Rawaq Building in Qurum and Tilal Complex in Al Khuwair. The current supply pipeline is expected to add between 2, 00,000 and 2, 50,000 square meters of office space to the market in the next five years. A new energy efficient office building being opened in Muscat’s Qurum district in July 2012 with COWI Oman the company that assisted with the design occupying the second level of the building. Although the demand has remained relatively stable over the first half of the year, prime office rents in Muscat have declined by 33 percent year on year and now stand at OMR 8 per square meter per month. Demand is now shifting to the west of the city where there is less traffic congestion. As commercial landscape transforms and new supply is delivered to the market, the country is expected to witness further falls in rentals as landlords begin to compete on offering quality, service and incentives to retain and attract office occupiers. Due to lack of suitable accommodation available at present, companies are looking at the option of construction purpose built space. This trend may result in additional downward pressure on occupancy levels and rents in existing locations within Ruwi/CBD and Al Khuwair.

Oman retail Sector Similar to other emerging markets, retail sector in Oman continues to enjoy a stable growth with a steady influx of supply matching a healthy demand for organized retail space particularly in the capital city of Muscat. Total retail stock in Muscat amounts to approximately 300,000 square meters in purpose built retail centres. This figure does not include a large number of ground floor retail units and showrooms in mixed use buildings as predominant in areas such as Ruwi, Ghubrah North and Al Khuwair. Over the next 18 months, developments under construction will deliver an additional 100,000 square meters of good quality retail mall space. Muscat City Centre will continue to dominate the retail mall sector in terms of footfall and rental values but the Muscat Grand Mall, located in Al Khuwair, is due to open and will provide

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a similar amount of retail space as part of a major mixed use development. Providing around 60,000 square meters of retail space, the Muscat Grand Mall is the most significant retail mall, in terms of size, to open in the capital area since 2001. The mall will have 160 retail units anchored by a Carrefour Express and will also provide a multiplex cinema, food court and children’s entertainment area. The Royal Opera House mall (Opera Galleria), which will provide around 6,500 square meters of leasable space, is now due to open towards the middle of this year, almost a year after its initial projected opening date. The mall is aimed at the high end of the retail market and will have around 60 retail units ranging in size from 50 to 450 square meters in addition to a range of restaurants and cafés. The mall has a proposed footbridge connection to the InterContinental Hotel site which is due for major .

There exists a continued demand for smaller retail space, in particular from the food and beverage sector, where potential retail tenants are searching for space within successful shopping destinations attracted by proven footfall and/or in prominent locations with ample car parking provision. Demand will also remain strong for established shopping malls with proven footfalls.

Thus with the economic development back on track, the Oman real estate sector is bouncing back to a gradual recovery promising opportunities across its prime sectors of residential, commercial and retail over the next five to ten years.

Opportunities and Challenges Real estate sector in the GCC countries is backed by robust economic fundamentals laid on foundations of sustainable economic developments balancing the growth in oil and non oil sectors in addition to a healthy fiscal reserves, prudent investment policies, and inflation under control despite the heavy investments made by the Governments to boost their construction sectors. While the established economies have marched ahead with large scale development plans the emerging economies are gradually bouncing back to recovery with the help of prudent Government investments. However inherent challenges in the form of luring investors confidence in the growth prospects and procurement of finance inhibits or restricts growth in certain markets particularly those affected by oversupply and consolidation issues. Given these conditions, the GCC real estate sector presents certain key challenges whilst providing numerous

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opportunities for the sector which are summarised in the following figure.

A young and health growth in population with increasing purchasing power driving the demand for affordable housing units offers numerous opportunites across the established and emerging markets.

Impeding recovery from Global economic slowdown, GDP,Inflation, Budget Surpluses and high oil prices with good oil reserves creating opportunities for growth of construction and real estate

Strong government backing and economic stimulus to help boost real estate growth

Introduction of legislations paving way for increased transparency and easing property registeration procedures and licences lures international investors to construction and real estate sector

The threat of oversupply particularly in less favourable real estate assets inhibits investors intrests thus impeding the much required financial impetus

Receding demand in Commercial sector continues to dampen rentals and increase vacancy rates

Demand supply mismatches in the residential segment as affordable housing is the need of the hour while developers continue to flock the more lucrative luxury segment forcing government to step in

Regulatory reforms continue to be disjointed and incomplete preventing foreign captial from flowing into the region to the full extent that would benefit its real estate sector

.

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Chapter 3.Future Outlook for MENA Real Estate Sector

With 43 percent of the construction projects still on hold across the GCC markets on the one hand, and heavy investment by governments across social and physical infrastructure reviving construction and real estate activity gradually on the other, the real estate sector in the GCC has tread a tumultuous growth path since a combination of the global economic slowdown and the Arab Spring and the burst of property bubbles hit it in late 2009. As governments such as Saudi Arabia, UAE and Qatar continued to spend heavily on diversification and expansion programmes not only to reduce dependence on their depleting hydrocarbon reserves, but also to shield the economies from the adverse effects of the slowdown, the real estate sector stood to be the biggest beneficiary. Government spending on social infrastructure also ensured that regional unrest such as the Arab Spring did not affect these economies; rather the safe haven offered by these countries in terms of investment and tourism drew global investors in hordes in a reverse effect of the Arab Spring and European slowdown into these markets.

The real estate markets of the GCC economies are already characterized by a strong demand backed by a growing, affluent population. When governments began strengthening their regulatory framework and ushering in greater transparency in a bid to attract investment, markets have gradually begun to look ahead and usher in growth across the commercial, residential and retail segments, though commercial segments continue to be plagued by oversupply as these economies built up on a large scale in anticipation of demand amid the boom years of 2007 to 2009, and continue to do so albeit at a more cautious pace in 2012 as well.

Some GCC countries took up focus areas to develop and base their expansion and diversification plans on such as Qatar hosting the World Cup 2022 Football event, Oman showcasing itself as a tourist destination for global tourism while others turned their focus inward such as Oman, Kuwait, UAE and Saudi Arabia, that introduced low cost housing schemes and financing to bridge gaps in this section of the real estate market and counter any unrest that might arise among the population due to paucity of dwellings.

Elsewhere across the MENA region, political unrest took its toll heavily on the emerging markets such as Egypt, Lebanon and Jordan, and to a smaller extent Bahrain and Kuwait. In Egypt, Lebanon and Jordan, fragile political stability has emerged in 2012 albeit at the cost of battered fiscal and external financial

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positions of these economies and investor confidence that would take a wait and watch policy by the global investors to resume normalcy. Real estate markets too would require clear cut policies and clear economic readjustment programmes for their economies to put them back on the path of growth.

However, as government take regulatory measures as well to revive markets and woo investors and continue to hold a robust pipeline of projects that are due for completion in 2012 and beyond, the larger growth of fresh projects is not a big concern in a predominantly oversupplied market. The real estate markets have also witnessed a correction and transition to management services rather than indiscriminate construction, which also add to the long run sustainability of the market and its growth beyond 2012.

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Chapter4. GCC Real Estate Projects Profile

List of Major Projects in the GCC Real Estate Sector, 2012

Project Country Client Consultant Contractor Value Project Name (US$ Status Million) King Abdullah Saudi King Abdullah Snohetta - 100,250 Design City of Arabia City of International Atomic and Atomic and (Norway) Renewable Energy (KA- care) King Abdullah Saudi Emaar - Multiple 100,000 Construction Economic Arabia Economic Contractors City (KAEC) City 500,000 Saudi Ministry of Parsons - 67,000 Design Housing Units Arabia Housing; Engineering in Different Saudi Arabia Corp. Areas of Saudi Arabia

Sudair Saudi Saudi Jurong 40,000 Construction Industrial Arabia Industrial International City Phase 1 Property Authority (Modon) Mega Saudi Supreme - - 40,000 Feasibility Tourism Arabia Commission Study Projects on for Tourism; Saudi Red Saudi Arabia Coast Yas UAE ALDAR Jack Rouse Multiple 40,000 Construction Development Properties Associates Contractors in Al Habl Al Abbyad Island

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Jazan Saudi Saudi MMC 30,000 Construction Economic Arabia Binladin Corporation City (JEC) Group; MMC Berhad Corporation (Malaysia) Berhad (Malaysia); Saudi Arabian General Investment Authority (SAGIA)

Jeddah Saudi Kingdom Pickard Chilton Saudi Binladin 27,000 Construction Kingdom City Arabia Holding Architects; Group Company; Omrania & Emaar Middle Associates East (O&A); Properties Ras Al Khair Saudi Royal W. S. Atkins - 25,000 Design Minerals Arabia Commission Industrial for and City (RCJY) Saadiyat UAE Abu Dhabi - Multiple 23,500 Construction Island Tourism Contractors Development Authority Project (ADTA); Tourism Development & Investment Co. (TDIC) UAE Masdar (Abu Flack & Kurtz Al Ahmadiah 22,000 Construction in Abu Dhabi Dhabi Future Consulting Contracting; Energy Engineers; ETA Dubai; Hip Hing Company) Ascon; Construction - Transsolar; WSP Hong Kong Group South Obhur Saudi Rayadah Sulaiman Al - 15,000 Tender for Project Arabia Investment Khorashi Office Construction Company Contract

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) King Faisal Saudi King Faisal Arch-Centre for Abdullah A. M. 14,721 Construction University in Arabia University Architecture & Al Khodari Sons Al Ihsa Engineering Co.; AlKhobar; Consultant Al Arrab Contracting Company; APTC Trading & Contracting Company; Haif Trading & Contracting Establishment; Yuksel Construction Saudia Co. Ltd. (YISC) Madinaty Egypt Talaat Helman Hurley Alexandria 14,000 Construction Development Moustafa Charvat Construction Group Peacock; USA; Company Holding; Sasaki; USA; Egypt Simpson Weather Associates; USA Qasr Khozam Saudi Dar Al Arkan Dar Al Handasah - 13,000 Design Arabia Development Shair & Partners Company; Jeddah Development and Urban Regeneration Company Al Ruwais Saudi Al Ruwais Rasd Saudi Binladin 13,000 Construction Development Arabia Union International Group; Dallah in Jeddah Company for Group Albaraka Real Estate Group; Zenel Development Company Lulu Island UAE Sorouh Real Martha - 11,000 Design Development Estate Schwartz Partners (USA) Expansion of Saudi General - Saudi Binladin 11,000 Construction Makkah Holy Arabia Presidency of Group Haram Holy Mosques Affairs

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Metropolitan Saudi Arriyadh Dar Al Riyadh - 11,000 Feasibility Development Arabia Development Architecture & Study Strategy Authority Engineering; (MEDSTAR) Shankland Cox; at Riyadh Urbis Nebras UAE Strata - - 10,000 Concept Aviation City Stage Makkah Gate Saudi Al Balad Al - - 10,000 Design Cultural Oasis Arabia Ameen Company for Urban Development ; Makkah Municipality; Sumou Real Estate Company; Makkah Gate Company Marsa Zayed Jordan Al Maabar - - 10,000 Tender for Project Abdoun Real Construction Estate Contract Development Company; Aqaba Special Economic Zone Authority Ghantoot UAE International KEO - 10,000 Design Green City Capital International Trading LLC Consultants King Abdullah Saudi Public - Multiple 10,000 Construction Financial Arabia Pension Contractors District Agency (PPA); (KAFD) Rayadah Investment Company New Doha Qatar NDIA Steering - Multiple 10,000 Construction International Committee Contractors Airport Barwa Al Qatar Barwa Real KEO - 9,600 Design Khor Project Estate International – Urjuan Company; Consultant Qatar

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Festival City UAE Abdullah Al - - 9,537 Concept in Abu Dhabi Futtaim Stage Group; Al Futtaim Investments The Shams UAE Sorouh Real R.W. Armstrong Multiple 9,537 Construction Abu Dhabi Estate and Associates Contractors Reem Island Inc. Danet Abu UAE Al Qudra Real Architectural & Multiple 9,260 Construction Dhabi Estate Engineering Contractors Consultants; Abu Dhabi (AEC); RSP (Raglan Squire and Partners ) Architects Marjan Island UAE Rakeen Conser Multiple 9,000 Construction Development Consulting Contractors Pilgrim City Saudi Ministry of - - 8,000 Concept North of Arabia Municipal & Stage Mina City Rural Affairs (MOMRA); Saudi Arabia Riyadh East Saudi Hamed & W. S. Atkins - 8,000 Tender for Sub Center Arabia Ahmed Construction Mohammed Contract Al Mozainy Real Estate Co. Prince Saudi Al-Mal - - 8,000 Design Abdulaziz Bin Arabia Kuwaiti Mosaed Company; Economic Mohammed City Abdulmohsin Al Kharafi & Sons; Kuwait; Saudi Arabian General Investment Authority (SAGIA); Rakisa Holding Co.

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Najmat Abu UAE Reem - Multiple 8,000 Construction Dhabi in Investments Contractors Reem Island Kingdom Saudi Kingdom Omrania & - 7,000 Design Riyadh Land Arabia Holding Associates Company (O&A); Saudi Arabia Hyde Park Egypt Damac Engineering The Egyptian 7,000 Construction Properties; Consultants Eng. & Trad. Egypt Group (ECG); Co.; Al - Hazik Egypt Egyption Union For Construction Knowledge Saudi Seera Real Omrania & - 6,700 Construction Economic Arabia Estate Associates City in Development (O&A); Saudi Madina (KEC) Company Arabia; IBI Group Boubyan Kuwait Ministry of Hellmuth Obata - 6,640 Construction Island Public Works Kassabaum Development (MPW); (HOK); Gulf Kuwait; Mega Consult; Projects Mouchel; Agency Kuwait (MPA) King Abdullah Saudi Ministry of Dar Al Handasah - 6,000 Tender for Bin Abdulaziz Arabia Interior; Shair & Partners Construction Project For Riyadh; Contract Development Ministry of of Security Interior; Forces Jeddah Medical Complexes Tareeq Al- Saudi Dallah - - 5,600 Design Mawazee Arabia Albaraka Project in Group Makkah

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Musheireb Qatar Msheireb Burns & CAT 5,500 Construction Development Properties McDonnell; USA International; Hyundai Engineering & Construction Company; Qatar; HBK Contracting; Qatar Building Company; Carillion Qatar; Brookfield Multiplex Al Ghadeer at UAE Sorouh Real Sun Jin - 5,400 Construction Saih As Estate Engineering Sidirah (South Korea) Capital UAE Urban Mott - 5,000 Design District in Planning MacDonald Abu Dhabi Council The Abdali Jordan Abdali - Navayuga 5,000 Construction Urban Investment Engineering Regeneration and Company Ltd. Project - Development Phase 1 Company (AIDC) Al Maryah UAE Mubadala - Saudi Oger Ltd 5,000 Construction Island Development Development Company in Abu Dhabi North Bahrain Ministry of - - 4,500 Design Bahrain New Works & Town Project Housing; Bahrain National Saudi Saudi - Saudi Oger; 4,500 Construction Guard - Arabia National Riyadh; Saudi Housing Units Guard Binladin Group; Rabiah and Nassar and Al Zamil Concrete Industries Company Ltd. (Ranco & Zamil)

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Project Country Client Consultant Contractor Value Project Name (US$ Status Million) Sharjah UAE Burooj Khatib & Alami - 4,087 Design Marina Properties; Consolidated Abu Dhabi Engineering Company Al Markaz in UAE Waha Capital Arcadis Gulf - 4,087 Construction Mussafah TMG - Saudi Talaat Zuhair Fayez Saudi Binladin 4,000 Construction Residential Arabia Moustafa Partnership Group City in Jeddah Group Consultants Holding; Egypt; Alexandria for Real Estate Investment Co. Source: Ventures Onsite MENA Projects Database (www.venturesonsite.com)

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Profile of the Mega GCC Projects

King Abdullah City of Atomic and renewable energy (KA-CARE), Saudi Arabia Project Value : US$ 1,00,250 million Status : Design

Construction Start : Q1 2014 Completion : Q1 2017 Client : KA-CARE, Saudi Arabia Location: , Saudi Arabia Consultant : Snohetta International (Norway) Scope: The project calls for the construction of King Abdullah City of Atomic and Renewable Energy, a scientific center for nuclear and renewable power. The facility will investigate the application of nuclear power together with renewable energy to be used in Saudi Arabia to meet rising electricity demand. King Abdullah City of Atomic and Renewable Energy headquartered in Riyadh will be the independent legal entity authorized to develop the city.

Schedule: Snohetta has been selected as the design consultant for the project and it is in the design stage.

King Abdullah Economic City (KAEC), Saudi Arabia

Project Value : US$ 1,00,000 million Status : Construction

Construction Start : Q2 2007 Completion : Q4 2025 Client : Emaar Economic City, Saudi Arabia Location: Makkah Province (Between Jeddah and Rabeigh), Saudi Arabia Consultant : SAGIA, WATG, Parsons International, Dubai, Wimberley Allison Tong & Goo (WAT&G), Skidmore, Owings & Merrill (SOM),SP Architects Planners & Engineers Pte.Ltd Scope: The proposed mixed use development will be built over a 55 million square metres site, with a 35 kilometre beachfront and executed in various stages with have six major elements: 1. Millennium seaport, on an area of 13.8 million square meters with home to light industries and logistics firms and will be served by an integrated transport system. The will have a dedicated Hajj terminal, with capacity to receive 500,000 pilgrims each season, 2. Industrial district, on an area of 8 million square metres 3. Waterside resort, including 3,500 units including hotels, apartments, towers, suites and villas, besides shopping malls and a golf course. 4. Financial Island, including two 60-storey and 100-storey

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towers, offering a total of 500,000 square metres of office space, 5. Residential district, which calls for the construction of a town centre. The property is to be built along a cornice includes a marina and yacht club with 450 boat moorings and a souk to be built on a 350,000-sq.m site and 6. Education zone, comprising universities, schools and research and development centres.

Schedule: The second Phase of the project is expected to be completed in the second quarter of 2014.

500,000 Housing Units in Different Areas of Saudi Arabia

Project Value : US$ 67,000 million Status : Design Construction Start : Q3 2012 Completion : Q4 2014 Client :Ministry of Housing, Saudi Arabia Location: Saudi Arabia Consultant: Parsons Engineering Corp. Scope: The project calls for the construction of 500,000 low-cost housing units in different areas of Saudi Arabia. Schedule: Consultant awarded first phase of contract in July 2011.

Sudair Industrial City Phase 1, Saudi Arabia

Project Value : US$ 40,000 million Status : Construction Construction Start : Q3 2013 (Estimated) Completion : Q1 2028 (Estimated) Client : Saudi Industrial Property Authority (Modon) Location: Sudair, Riyadh Province, Saudi Arabia Consultant: Jurong International, Abu Dhabi Scope: The project entails construction of an industrial zone in the North of Riyadh, to occupy 285 kilometres square and will be developed on Phases, and once completed it will accommodate 1 million residents. Phase 1 will spread over 15 kilometre square and will consist of commercial, warehouse, residential, industrial, technological, and leisure facilities. Schedule: Saudi Industrial Property Authority (SIPA) invited more than 60 developers to invest in Sudair City. The conceptual design of the master plan was completed in September 2008. 10 Companies were short listed to develop . The ITB for the BOT contract was issued in September 2009.The successful developer will be responsible for hiring sub-developers for the project. The deadline to submit bids for the BOT contract was expected on 24 October 2009, but delayed. Saudi Industrial Property Authority (Modon) will develop this phase, and sub developers will be appointed to develop the remaining phases of the Sudair City. The infrastructure package is in the finishing stages.

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Mega Tourism Projects on Saudi Red Coast, Saudi Arabia

Project Value : US$ 40,000 million Status : Feasibility Study

Construction Start : Q2 2015 Completion: Q2 2022 Client : Supreme Commission for Tourism, Saudi Arabia Location: Arrayes in Yanbu, Ras Muhaisen in Makkah, Haridha in Assir, Fursan in Jizan, and Ras Humaid, Sharma, Qayyal, and Dhaffart Al-Wajh in Tabouk Scope: The project calls for the construction of a mega tourism projects on Saudi Red Coast, over an area of 18,000 kilometres. The new resorts will be located at Arrayes in Yanbu, Ras Muhaisen in Makkah, Haridha in Assir, Fursan in Jizan, and Ras Humaid, Sharma, Qayyal, and Dhaffart Al-Wajh in Tabouk. Schedule: Prince Sultan signed a contract with an international consultancy firm. Feasibility studies are ongoing.

Yas Development in Al Habl Al Abbyad Island, UAE

Project Value : US$ 40,000 million Status : Construction Construction Start : Q4 2005 (Estimated) Completion : Q2 2028 (Estimated) Client : ALDAR Properties Location: Yas Island, Abu Dhabi, UAE Consultant: Jack Rouse Associates Scope: Al Habl Al Abbyad Island located in the eastern coast of Abu Dhabi was acquired by Aldar Properties to create a strongly-branded high quality leisure destination. The development which will have a Ferrari concept will be home for a race track, rides and attractions, and virtual simulations. There will also be an advanced and sophisticated circuit where tests and driving courses will be organized as well as races. The concept will also include hotels, retail, residential and hospitality components embracing the design ethics of Ferrari brand. There will also be 2 major marinas and yachting facilities, a water park, 3 golf courses, a polo field and equestrian centre. Shopping will be one of the major attractions with retail area occupying 300,000 square metres. Schedule: Construction has been completed for several packages while some packages are currently under construction and also under design.

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Jazan Economic City (JEC), Saudi Arabia

Project Value : US$ 30,000 million Status : Construction Construction Start : Q4 2009 Completion : Q4 2022 (Estimated) Client : Saudi Binladin Group; Saudi Arabia; MMC Location: Jizan, Saudi Arabia Corporation Berhad (Malaysia); Saudi Arabian General Investment Authority (SAGIA); Jeddah

Consultant: MMC Corporation Berhad (Malaysia) Scope: Jazan Economic City (JEC) is the fourth economic city in Saudi Arabia as the country looks to attract foreign investment and the transfer of technology. JEC is located about 725 kilometres south of Jeddah. Two third of the 117 sq. kilometres project located in Jizan on the coast will comprise an industrial zone with a port, an aluminium refinery with capacity of 1.2 million tonnes a year (t/y), aluminium smelter with production of about 650,000 (t/y), steel and copper processing plants, an oil refinery, a fish processing and agricultural factories including a 4,000-MW power and desalination plant. The remaining area will consist of a central business district, residential areas, a marina and municipal buildings. Schedule: A joint venture of the local Saudi Binladin Group (SBG) and Malaysia's MMC Corporation was awarded a license to develop the city. Contract is for 30 years.

Jeddah Kingdom City, Saudi Arabia

Project Value : US$ 27,000 million Status : Construction Construction Start : Q3 2011 (Estimated) Completion : Q4 2022 (Estimated) Client : Kingdom Holding Company; Emaar Middle East Location: Makkah Province, Jeddah, Saudi Arabia Properties; Saudi Arabia Consultant: Pickard Chilton Architects; Omrania & Associates (O&A); Saudi Arabia Scope: The project entails construction and development of 23 million square meters located in northern area of Jeddah on the Red Sea coastline, comprising a sky scraper (known as Mile High Tower or Kingdom Tower, claimed to become the largest in the world beating the current tallest Burj Dubai) that is surrounded by residential units, commercial space, office area, education vicinity, entertainment facilities, and hotels. The will be 1.5 million square meters and the commercial area will be 470,000 square meters. Educational vicinity with an area of 150,000 square meters and the area of offices will be 800,000 square meters. The remaining land will be utilized for leisure facilities, tourism and construction of four star hotels. Schedule: The main construction contract for the Kingdom Tower was awarded to Saudi Binladin Group in the 3rd quarter of 2011.

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Ras Al Khair Minerals Industrial City, Saudi Arabia

Project Value : US$ 25000 million Status : Design Construction Start : Q4 2014 ( Estimated ) Completion : Q4 2022 ( Estimated ) Client : Royal Commission for Jubail and Yanbu Location: Ras Al Zour, Eastern Province, Saudi Arabia Consultant: W.S. Atkins, Dubai Scope: The project calls for the construction of an industrial economic city dedicated to downstream minerals and petrochemicals as the feedstock. It will be developed in the Eastern Province on the Gulf Coast. The city will benefit from the export port and surrounding minerals deposits (AL Jalamid Phosphate Mines in the north and Al Zabira Bauxite Mines in the northeast) which will be transported on rail to the city’s plants. Schedule: In 2006, SAGIA had announced the launching of Ras Al Khair Resource City. Project completion is expected by 2022. Royal commission for Jubail and Yanbu signed a $15.9 million consultancy contract with the consortium of Atkins with Ali Khoder Al Harbia and Ahmed Omr Radi Engineering Consultancy Co. on 3 July 2010. According to the contract, the joint venture will be responsible for putting the initial master plan, the detailed master plan and the main design of the project including roads and preparing the tenders documents. Ras Al Khair used to be known as Ras Al Zour. In July 2011 the government change Ras Al Zour name into Ras Al Khair.

Saadiyat Island Development Project, UAE

Project Value : US$ 23,500 million Status : Construction

Construction Start : Q4 2006 Completion : Q4 2020 Client : Abu Dhabi Tourism Authority (ADTA) and Tourism Location: Abu Dhabi, UAE Development and Investment Company (TDIC) Consultant: Parsons International, Abu Dhabi and Hills International, Abu Dhabi Scope: Project calls for the development of Saadiyat Island with an area of 27,000 hectares, located 7 km offshore of Abu Dhabi city, into a major mixed use luxury development. Spread over 1,800 hectares, individual plots of land will be developed by investors who will buy the land on long term lease agreements. The master plan envisages six highly individual districts with 29 hotels totalling 7,000 rooms, including a seven-star resort, three marinas, and cultural centres, two golf courses, civic and leisure facilities, sea-view apartments and elite villas. The development will comprise a total of 8,000 villas and 38,000 apartments. The six island districts are: Cultural District, Al Marina, Saadiyat Beach, South Beach, Saadiyat Park and The Wetlands. Saadiyat is expected to be a home to more than 150,000 people and will be linked to Abu Dhabi via two 10-lane freeways and a third bridge linking with Shahama in

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the East. Schedule: Saadiyat will be developed in three phases with total completion scheduled for 2018. A public joint stock company called Tourism Development and Investment Company (TDIC) was formed in April 2006 to manage the project. TDIC will be responsible for the infrastructure of the island, which is estimated to be around Dhs.5, 500 million.

Masdar City in Abu Dhabi, UAE

Project Value : US$ 22,000 million Status : Construction Construction Start : Q3 2008 Completion : Q4 2027 (Estimated) Client : Masdar (Abu Dhabi Future Energy Company) Location: Abu Dhabi Contractor : Al Ahmadiah Contracting, Dubai, Hip Hing Consultant: Flack & Kurtz Consulting Engineers; ETA Construction - Hong Kong Ascon; Abu Dhabi; Transsolar; WSP Group; Abu Dhabi Scope: MASDAR (Abu Dhabi Future Energy Company) plans to construct an energy, science, and technology community beside Khalifa City and Abu Dhabi International Airport. The free zone development will be a unique and integrated project which plans on using the principles of a walled city, together with existing technologies to achieve a zero carbon and zero-waste sustainable development. The 6-square-kilometer city will be car-free, powered by renewable energy with services digitally managed and providing real time information. With a maximum distance of 200 meters to the nearest transport link and amenities, the network of streets will encourage walking and is complemented by personalized rapid transport system. Shaded walkways and narrow streets will create a pedestrian friendly environment in the context of Abu Dhabi's extreme climate. Surrounding land will contain wind, photovoltaic farms, research fields and plantations, enabling the city to be self-sustaining. Masdar will be developed in phases centred on 2 plazas. The first stage includes the construction of a 60 megawatt photovoltaic power plant that will supply electricity for constructing the rest of the city. This will be followed by a 130-acre main square. Schedule: In July 2010, Foster + Partners announced that the revised master plan for Masdar City is almost complete. The said revision will form part of a wider overhaul to the overall master plan design thus; further mixed-use phases of Masdar City will soon be implemented. Construction is ongoing.

South Obhur Project, Saudi Arabia

Project Value : US$ 15,000 million Status : Tender for Construction Contract Construction Start : Q3 2012 (Estimated) Completion : Q3 2022 (Estimated) Client : Rayadah Investment Company Location: Jeddah, Makkah Province, Saudi Arabia

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Consultant: Sulaiman Al Khorashi Office Scope: The project calls for the construction of a mixed use development in Jeddah, over an area of 2.6 million square meters located close to King Abdul-Aziz International Airport - North Terminal. The project contains 10 residential suburbs. Apartment Buildings will cover an area of 2,800 square meters. The other five suburbs include 727 two-storey (Duplex) residential villas. The project will also contain an open water park in the heart of the central region. There will be 15 plots of land specified for the commercial investment, offices, and services as well as 2 plots of land for the commercial leisure activities. Schedule: Tender for the main construction contract of the 727 duplex villas worth US$250 million (estimated) has been issued and the bid submission is in August 2012.

King Faisal University in Al Ihsa, Saudi Arabia

Project Value : US$ 14,721 million Status : Construction Construction Start : Q3 2006 Completion : Q2 2014 Client : King Faisal University Location: Al Ihsa, Eastern Province, Saudi Arabia Consultant: Arch-Centre for Architecture & Engineering Consultant; Saudi Arabia Scope: The project calls for design and construction of 40, 00,000 square metre King Faisal University in Al Ihsa. The development will include Computer Science College, Medical College, Engineering College, Economic College, Education College, Veterinary Medical College, Agricultural College, Science and Business Colleges and infrastructure works. Schedule: Project commenced in July 2006 and completion is expected by the end of 2013.

Madinaty Development, Egypt

Project Value : US$ 14,000 million Status : Construction Construction Start : Q3 2006 Completion : Q4 2023 (Estimated) Client : Talaat Moustafa Group Holding; Egypt Location: Cairo, Egypt Consultant: Helman Hurley Charvat Peacock; USA; Sasaki; USA; Simpson Weather Associates; USA Scope: The development calls for the construction of a residential, entertainment and commercial community along 33km Cairo-Suez northeast of Cairo, Egypt. The project is spread over a 33.6 million square meters area. Madinaty will embrace 120,000 residential units, hotels, golf course, commercial units including business area with branches of corporations, business, and financial institutions. Educational facilities include schools, universities, and research & development units. Medical facilities include medical center, hospitals, and polyclinics.

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City services facilities are transportation, water (for domestic use and for irrigation), electricity, sewage, telecommunication, and roads (internal network including two ring roads and bus lines, and external network to link the project with the external highways). Schedule: Madinaty will be developed in 14 phases. Phases 1, 2, 3 and 6 include apartments and villas. Phases 4 & 5 include villas. The other remaining phases are still under planning. Phase 3 is expected to be completed in Q1 2013. Phases 4, 5 and 6 are in progress and expected to be completed in 2014. The project is expected to be completed in 2023.

Qasr Khozam, Saudi Arabia

Project Value : US$ 13,000 million Status : Design Construction Start : Q4 2013 Completion : Q4 2017 Project Type : Mixed Use development Location: Jeddah, Saudi Arabia Scope: The project calls for the redevelopment of 45 square kilometres of the Old City Centre in Jeddah. The development will have different zones. The advanced tele-communications will be the key feature of Qasr Khozam, together with walkways and public transport, including a new monorail linked to the main railway station. It will also include a new bridge that will improve access to the area from Jeddah International Airport. Districts surrounding Qasr will include , mosques, public parks, and public services including hospitals and clinics. It will also include a business zone that will include office complexes, Islamic banks and buildings for hosting major trade fairs, exhibitions, and conferences. It will also include a multi-layer car parking that will bring accessibility to all areas. Leisure Zone will include major cultural pavilion and centrepiece park, malls, hotels and supermarkets. Residential Zone will include mixed-use housing complexes. Schedule: The project will be carried out in a partnership between the private and the public sector. The project duration is expected to be 6 years. The site preparation was started on 15 March 2009.

Al Ruwais Development in Jeddah, Saudi Arabia

Project Value : US$ 13,000 million Status : Construction Construction Start : Q1 2011 Completion : Q4 2018 Client : Al Ruwais Union Company for Real Estate Location: Jeddah, Saudi Arabia Development Consultant: Al Awal Financial Services Scope: The project calls for the development of 1.8 million square meters, including the center of Al Ruwais district which is cornered by Al-Andalus road from the west, King Abdullah road from the south,

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Madina Road from the east and Palestine Street from the north. Schedule: In June 2009, Mayor of Jeddah approved the operational summary for the development of Jeddah's unorganized Al Ruwais District.

Lulu Island Development, UAE

Project Value : US$ 11,000 million Status : Design

Construction Start : Q4 2015 Completion : Q4 2020 Client : Sorouh Real Estate Location: Abu Dhabi, UAE Consultant: Martha Schwartz Partners (USA) Scope: Lulu Island development, as per the reviewed master plan prepared by Sorouh will offer a natural extension to Abu Dhabi Island in a prime location opposite Abu Dhabi Corniche. The island's low rise skyline will compliment the cornice. Open spaces, greenery and resorts are at the heart of the development. There will also be cultural centre along with extensive retailing facilities. Private marinas and waterfront residences will differentiate Lulu Island from any other Abu Dhabi Project. Connections with the mainland could be by water taxi, monorail or an undersea tunnel. There is also a proposal for a massive cable system to link the island with the Corniche which would provide a wonderful view of the city and the island to cable car passengers. Project includes construction of roads, bridges, tunnels and pedestrian walkways to link Abu Dhabi with the island. Buildings on the island will not exceed four storeys and would include residential villas, apartment buildings, seven luxurious hotels, including five and seven-star hotels, resorts, offices, shopping malls, international schools and various sports facilities to cater for a population of approximately 20,000 people. Schedule: Approval for the master plan is still awaited.

Expansion of Makkah Holy Haram, Saudi Arabia

Project Value : US$ 11,000 million Status : Construction

Construction Start : Q1 2008 Completion : Q4 2020 Client : General Presidency of Holy Mosques Affairs Location: Makkah, Saudi Arabia

Scope: The project calls for the expansion of Makkah Grand Mosque. The expansion covers the Grand Mosque itself, the external yards and the service area. The total built-up area is 750,000 square meters. Schedule: Main construction contract was awarded to Saudi Binladin Group. Construction started in the 1st quarter

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of 2010. Project duration is 72 months.

Metropolitan Development Strategy (MEDSTAR) at Riyadh, Saudi Arabia Project Value : US$ 11,000 million Status : Feasibility Study Construction Start : Q4 2014 Completion : Q4 2018 Client : Arriyadh Development Authority Location: Riyadh, Saudi Arabia Contractor: Dar Al Riyadh Architecture & Engineering; Shankland Cox; Urbis Scope: The programme, known as the Metropolitan Development Strategy for Arriyadh (Medstar), will centre on the creation of an urban network that includes two suburban cities to curb the outward sprawl of the main city and five sub-centres located in the orbital residential corridors. Schedule: ADA awarded several consultancy contracts as part of its plans to develop Riyadh. Consultants were selected for three of the sub centres to look at demographic trends, budgets and the various packaging strategies for the developments. The master plan for each sub center was two months. The Saudi Dar al-Riyadh worked on developing the eastern sub centre; the UK's Shankland Cox was the consultant for the northern sub centre; and Australia's Urbis was awarded the contract for the south-western part of the city. An award was pending for the two other sub centres, while consultants were still to be selected for the two major cities, which will each house about 500,000 people. The sub centres will accommodate about 1.25 million inhabitants. MEDSTAR project is a very long term project. Project duration is expected to be 50 years.

Nebras Aviation City , UAE

Project Value : US$ 10,000 million Status : Concept Stage Construction Start : Q2 2013 Completion : Q4 2017 Client : Strata Location: Al Ain, Abu Dhabi Scope: The project calls for the construction of an aviation city in Al Ain. Nebras will house aviation industries, educational, and housing facilities. Schedule: The aviation academy and related facilities is the 1st phase of the project. Completion of the 1st phase is expected by 2015.

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Makkah Gate Cultural Oasis , Saudi Arabia

Project Value : US$ 10,000 million Status : Design

Construction Start : Q4 2013 Completion : Q4 2022 Client : Al Balad Al Ameen Company for Urban Location: Makkah, Saudi Arabia Development; Makkah Municipality; Sumou Real Estate Company; Makkah Gate Company

Scope: The project calls for the construction of a mixed use development outside the haram area of Makkah. The development is to be spread over 83 square kilometers and includes museums, convention centers, shops, hotels, and apartments. The scope of work will also include residential districts, government buildings, a university called Hudaibiya University and recreational centres. The project also will include a medical city and an administrative district. Schedule: The developer appointed Design Worldwide Partnership (DWP) and Sidel Gibson Architecture as the concept design consultants. The project will be completed in 15 years and in several phases.

Marsa Zayed Project , Jordan

Project Value : US$ 10,000 million Status : Tender for Construction Contract Client : Al Maabar Abdoun Real Estate Development Location: Aqaba, Jordon Company; Aqaba Special Economic Zone Authority Scope: Marsa Zayed, which was named in memory of the Late Sheikh Zayed Bin Sultan Al Nahyan, is a 3.2 Km² development including 2 Km of waterfront and is the biggest real estate and tourism project to take place in the history of Jordan. It is also one of the most significant developments in the region. It is a mega mixed-use waterfront project, including high-rise residential towers, retail, recreational, entertainment, business and financial districts and several branded hotels. Several marinas will add to the current berthing capacity, which will transform Aqaba into a premier yachting destination; in addition to a state-of-the-art cruise ship terminal, which will become one of Jordan's touristic landmarks and a welcoming gateway to Aqaba. On completion, the total built-up area will be 6.4 million sq m. The development will consist of 7 hotels including around 3,000 hotel rooms, more than 20,000 residential units of premium villas, villas, townhouses and apartments, and at least 350 marina berths. Schedule: The project will be implemented in several phases once the transfer of land ownership is complete. The first phase of the project was to begin by the first half of 2010 following the completion of the land survey and a series of technical studies which are currently taking place in coordination with the Aqaba Special Economic Zone Authority (ASEZA). In 2008, Al Maabar signed an agreement with the government under which the company acquired

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the land in Aqaba for $500 million for the development and establishment of the project. ASEZA is implementing a plan to relocate the current port, moving it from the city centre to the southern tip of the district. The government's handover of the land will be carried out in 3 phases - the first will take place by June of this year and the second in September, while the third and final phase by March 2013 once the new port is built. In Dec 2009, Aqaba Special Economic Zone Authority (ASEZA) approved the final "conceptual master plan" submitted by Al Maabar Jordan Real Estate for Marsa Zayed Project. The project's engineering and technical studies are complete, in addition to the environmental impact assessment and the roads and traffic effect surveys.

Ghantoot Green City, UAE

Project Value : US$ 10,000 million Status : Design Construction Start : Q4 2014 Completion : Q4 2020 Client : International Capital Trading LLC Location: Ghantoot, UAE Scope: The development in Ghantoot will include a commercial center, hotels, office blocks, residential developments, warehousing and light industrial areas. The project is understood to cover 60 sq. km. The development will be split into 12 phases, with the 1st phase covering 6.2 square kilometres. The total built-up area for phase 1 will be about 18.5 million square metres, and it is understood to include residential properties and hotels along the coast. Schedule: Master plan for the project was prepared by US-based RNL. Project has to be implemented in three major phases which includes the development of a six-star resort - the Al Jurf Palace Resort and Golf Club, as well as the development of the Marina District. Phases 2 and 3 will concentrate on the residential portion of the project.

King Abdullah Financial District (KAFD) , Saudi Arabia

Project Value : US$ 10,000 million Status : Construction Construction Start : Q4 2008 Completion : Q4 2019 Client : Public Pension Agency (PPA); Rayadah Location: Hail Province, Saudi Arabia Investment Company Contractor: Saudi Oger; Riyadh; Saudi Binladin Group; Saudi Arabia; Saudi Constructioneers Establishment; El Seif Engineering Contracting Company; Saudi Arabia Scope: The project calls for the construction of 42 plots of land that will include several commercial towers, retail facilities and extensive landscaping. The location is on King Fahd Road and Olaya Street in Al Aqiq Avenue (South of Riyadh). The development covers an area of about 1.6 million square metres. KAFD will also include Saudi Financial

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Market (Tadawal), the Capital Market Authority (CMA) and the Commodity Market headquarters, besides the Financial Academy, bank headquarters, companies related to Saudi stock market, residential complex, mosque, and all luxury facilities such as hotels. The project is divided into three parts: The Leaf, North West Area, and South Area. The Leaf area is divided into 5 areas and includes 23% residential, 5% retail, and 72% offices, it also includes public facilities, aquariums, museums, hotels, exhibition centers, conference centers, and mosques. The North West area includes support services, utilities, and car parking for 40,000 cars. The South Area includes residential buildings and offices. The transportation within the development will be via a monorail system and skywalks bridges (bridges connecting two buildings). Schedule: The project will be built in phases. Phase 1 covers 10 plots from the 42 plots, and include the construction of 15 towers, a hotel and a mosque. While phase 2 covers 30 plots and include the construction of 20 towers, a plaza, and the capital Market Authority. Feasibility study & design phase of the project was completed by the end of 2006. Public Pension Agency (PPA) awarded the project management contract (PMC) to the US-based Hill International in October 2007. The contract duration is 5 years and the contract covers supervision of the design and construction of the project. The project completion is expected by mid-2012, on completion around 70% of KAFD will be built out, with the remaining land developed over time according to the demand.

New Doha International Airport , Qatar

Project Value : US$ 8,000 million Status : Construction Client: NDIA Steering Committee Location: Qatar Contractor: Multiple Contractors Scope: Project calls for the construction of a new international airport in Doha. To the first end, the airport will be able to handle 24 million annual passengers, three times as many as the current airport capacity. Upon final completion in 2015, it will be able to handle 50 million passengers. Schedule: Construction is completed for most of the packages while are underway for some.

Barwa Al Khor Project – Urjuan, Qatar

Project Value : US$ 9600 million Status : Design

Client : Barwa Real Estate Company; Qatar Consultant: KEO International Consultants; Qatar Scope: The Al Khor city project covers an area totalling 5, 459,168 square metres approximately. The built up area of the project is 3,621,458 square metres. The project will feature villas, town houses, terraces, flats and mixed use areas, 2 sprawling hotels; one being a five star and the other four stars, a superior shopping mall, 4 top schools,

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250,000 sq m space for offices, a mosque and an international golf course. The project anticipates offering 24,114 units as homes to the elite with 5 star quality services to surround them. The added amenities include a clinic, library, information center, public and private beaches. The developing homes are set to accommodate a massive population of 60,000 people. Project will be executed in three phases. Schedule: Cansult was appointed as the consultant for the project on 11th July 2006. The initial installation work includes fencing the 15 Km project land and the building of an on-site office for the project, measuring approximately 2,500 square meters.

Festival City in Abu Dhabi, UAE

Project Value : US$ 9,537 million Status : Concept Stage

Construction Start : Q4 2015 Completion : Q4 2027 Client: Abdullah Al Futtaim Group; Al Futtaim Location: Abu Dhabi, UAE Investments Scope: The mixed-use development will, like its counterpart in Dubai, occupy more than 1 million square meters of land. It will have a major commercial complex, hotels, and residential and office towers. The exact location of the project is not confirmed yet, though it is already understood to be on Reem island and will overlook the new stock exchange building that will be built on Suwwa island. Schedule: Project is in the early stage.

The Shams Abu Dhabi Reem Island , UAE

Project Value : US$ 9,537 million Status : Construction

Construction Start : Q1 2007 Completion : Q4 2018 Client : Sorouh Real Estate Location: Abu Dhabi, UAE Consultant: R.W. Armstrong and Associates Inc. Abu Dhabi Scope: The project entails the construction of more than 100 buildings which will offer 22,000 residential units on . The buildings will be from 3-storey to 83-storey in height. It will also include a 100,000 sq.m central park, a 4-kilometre long canal network, and two road bridges connecting the island of Abu Dhabi. The Gate development will comprise of 8 towers with the Sky Tower being the signature property. Sorouh Real Estate and Sharjah-based Tameer Real Estate signed a memorandum of understanding (MoU) in September 2006 to establish 2 joint venture companies that will develop Dhs.13,000 million of tower projects at the Shams. One joint venture will

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build 6 towers of the Gate district, and the other will develop Abu Dhabi Towers in the Central Park District project. Schedule: Arquitectonica is the lead consultant for the Gate project. Aedas was appointed as the lead design architects for the Upper Village. Perkins and Will is the appointed lead design architects for a third development plot supported by Otak as the prime consultant on the project. Hill International (US) with 3D International (US), Projacs International (Bahrain) and Al Qudra Holdings (Local) was appointed to provide Project Management Services. Construction is underway for some of the packages while some are already completed.

Danet Abu Dhabi, UAE

Project Value : US$ 9,260 million Status : Construction

Construction Start : Q1 2007 Completion : Q4 2026 Client : Al Qudra Real Estate Location: Abu Dhabi, UAE Scope: The project is located on Airport Road, at an approximate area of 210,000 square kilometres and will include expansive green areas, residential and commercial towers, hotels, shopping malls and entertainment facilities for the region's inhabitants. The mixed use project comprises of 34 towers ranging from 15 to 23 floors, as well as a four-star hotel, a fully equipped social center, a sports center for all residents and a medium-sized shopping mall servicing the region's residents. The project has been split into five districts - Jumana, Doora, LouLou, Giwan and Gemash. Schedule: RSP Architects, Architectural & Engineering Consultants (AEC) (Design) and Maunsell Consultancy Services with US AECOM Group (Infrastructure) did the master plan for the development. Construction is completed for many buildings within the development while some are still under construction.

Marjan Island , UAE

Project Value : US$ 9, 000 million Status : Construction Construction Start : Q1 2007 Completion : Q4 2019 Client : Rakeen Development Location: Ras Al Khaimah Contractor : Multiple Contractors Scope: The project, which involves an area of about 380 hectares, calls for the construction of tourism and residential district in Ras Al Khaimah. Extending at about two km into the Gulf, the reclaimed land will have 13 hotels, a marina, luxury villas, and a lagoon. The project also includes floating chalets, a water park, a theme park and an aquarium. It is the first man-made island project in the emirate. Schedule: UK's Halcrow did the master plan for the project. Dredging International (Belgium) was awarded in January 2007 the 1st phase of dredging package for the project. by Dredging International was completed

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in March 2009. Kumho Industrial Co. was awarded the contract for the 1st phase of infrastructure development in August 2008. Construction is underway on various packages on the development.

Pilgrim City North of Mina City, Saudi Arabia

Project Value : US$ 8,000 million Status : Concept Stage Construction Start : Q4 2014 Completion : Q4 2020 Client : Ministry of Municipal & Rural Affairs (MOMRA); Location: Mina City, Saudi Arabia Saudi Arabia Scope: The project calls for the construction of a pilgrim city north of Mina City, which is located east of Makkah Province. The city will accommodate 1.5 million pilgrims. The city will be constructed either as multi-storey concrete buildings or set up tents with modern designs. This is yet to be decided. Schedule: The Project is still in concept stage.

Riyadh East Sub Center , Saudi Arabia

Project Value : US$ 8,000 million Status : Tender for Construction Contract Construction Start : Q3 2013 Completion : Q4 2021 Client: Hamed & Ahmed Mohammed Al Mozainy Real Estate Co. Contractor : Atkins; Saudi Arabia Scope: The project calls for the construction of 12,500 residential units in Riyadh. The project would be located on a two million square metre area at the crossing of King Abdullah Road with Sheikh Jaber Road to the east of Riyadh. The project's total built-up area is 7.2 million m2 with a maximum building height of 300m. The scope of works also includes 4 mosques, 13 schools, 2 hospitals, a cultural center, an administrative building and government facilities. Schedule: The High Commission for the Development of Riyadh City has approved the project in November 2011. Infrastructure works (SIS907) contractor was expected to be appointed in the 1st quarter of 2012 and to be completed in the 1st quarter of 2015.

Prince Abdulaziz Bin Mosaed Economic City, Saudi Arabia

Project Value : US$ 8,000 million Status : Design

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Construction Start : Q4 2012 Completion : Q4 2025 Client : Al-Mal Kuwaiti Company; Mohammed Location: Hail Province, Saudi Arabia Abdulmohsin Al Kharafi & Sons; Kuwait; Saudi Arabian General Investment Authority (SAGIA); Rakisa Holding Co. Scope: The project calls for the construction of a new city over a 156 million sq.m land. The construction will be carried out in several stages. The project will have six core districts. The transportation hub is to include an international airport, dry port, supply chain centre, a logistics Center, and multi-model passenger stations. An education district to be built over 10 million square metres with colleges, research centers, schools and universities serving about 40,000 students. An agricultural district, to host a number of factories and research centres. A mining and industrial area is to utilize the region's natural resources and build various secondary industries. An entertainment district will include construction of hotels, shopping malls and associated tourist attractions. A residential district will provide 30,000 housing units to cater to 140,000 residents. Schedule: Construction was scheduled to start in September 2006. The project duration will be 10 years.

Najmat Abu Dhabi in Reem Island, UAE

Project Value : US$ 8,000 million Status : Construction Construction Start : Q1 2007 Completion : Q4 2023 Client : Reem Investments Location: Reem Island, Abu Dhabi Contractor : Multiple Contractors Scope: The project involves construction of a mixed-use development at the Reem Island, Abu Dhabi. Located next to the bridge, connecting Al Reem to Abu Dhabi, the project will serve as a gateway to the island. The 1.9 million square metre development centers on 3 districts: business, art, and village. The total built-up area will be 7.5 million square meters. The central business district will include a range of 40 and 50-storey mixed-use towers that will surround the retail and entertainment district with 2 iconic 80-storey buildings in the centre.

There will be 3 marinas in the development: the Bay Centre Marina (250-meter in diametre), Residential Marina (200- metre in diametre), and Resort Marina (180-metre diametre). They will all be linked by a canal which transverses the spine of the development from northwest to southeast.

Schedule: Construction is underway for various packages.

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Kingdom Riyadh land, Saudi Arabia

Project Value : US$ 7,000 million Status : Design Construction Start : Q4 2013 Completion : Q2 2017 Client : Kingdom Holding Company Location: Riyadh Scope: The scope of work includes the construction of a mixed use residential and commercial buildings, hotels, retail spaces, parks, car parks, and private leisure & equestrian clubs, serviced bungalows.

Schedule: Design is underway, construction is expected to commence during late 2013.

Hyde Park, Egypt

Project Value : US$ 7,000 million Status : Construction Construction Start : Q4 2009 Completion : Q4 2018 Client : Damac Properties Location: New Cairo City Scope: The project entails 4.7 million sq.m community development located in New Cairo City, consisting of 3,000 villas of 14 different styles including Italian country and neo-classical Spanish-Californian style.

Schedule: Construction is underway for various phases, project completion is scheduled in 2018.

Knowledge Economic City in Madina, Saudi Arabia

Project Value : US$ 6,700 million Status : Construction Construction Start : Q3 2010 Completion : Q1 2025 Client : Seera Real Estate Development Company Location: Madina Scope: The project will be constructed on a 4.8 million sq.m. site.The City will house about 200,000 residents and include 30,000 residential units. It will target investment in knowledge-based industries including information technology and life sciences. The City will include a on the life of the Prophet Mohammed and a mosque for 10,000 worshipers and will be linked by monorail to Madina's Grand Mosque.

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Schedule: Construction is underway for various phases, project completion is scheduled in 2025.

Boubyan Island Development, Kuwait

Project Value : US$ 6,640 million Status : Construction Construction Start : Q3 2007 Completion : Q4 2033 Client : Ministry of Public Works / Mega Projects Agency Location: Boubyan Island Scope: The first phase is to be divided in three parts. Part One includes the building of the island's infrastructure, port and railroad system that will link Boubyan to Subiya. Part Two will build a port with the capacity for 16 berths. Part Three includes marine drilling for work that will include widening Boubyan's channel while also constructing buildings and providing other service facilities. The project is to be executed in 3 phases.

Schedule: Construction is underway for the first phase – two stages.

King Abdullah Bin Abdulaziz Project for Development of Security Forces Medical Complexes, Saudi Arabia Project Value : US$ 6,000 million Status : Tender for Construction Contract Construction Start : Q4 2012 Completion : Q1 2019 Client : Ministry of Interior, Riyadh/Ministry of Interior Location: Jeddah / Riyadh Jeddah Scope: The scope of work includes construction of 3 hospitals and all related medical and residential facilities, with a total built-up area of 1.3 million sq m in each location.

Schedule: Main construction contract is expected to be awarded in October 2012.

Tareeq Al-Mawazee Project in Makkah, Saudi Arabia

Project Value : US$ 5,600 million Status : Design Construction Start : Q4 2013 Completion : Q4 2018 Client : Dallah Albaraka Group Location: Makkah

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Scope: The project calls for the construction of a residential and commercial project which will be located in Makkah. The project will develop a four lane highway into the city which will be 3 kilometers long and 80 meters width.

Schedule: The project is in its design stage.

Musheireb Development, Qatar

Project Value : US$ 5,500 million Status : Construction Construction Start : Q2 2010 Completion : Q4 2016 Client : Msheireb Properties Location: Mohamed Bin Jassim District Contractor : Multiple Contractors Scope: Project covers approximately 35 hectares within Mohamed Bin Jassim District in central Doha. Project will comprise of housing units, a theatre auditorium, three types of hotels, a primary school, a heritage quarter, modern civic amenities and infrastructure facilities. There will be 226 buildings between 3 and 30-storey high. On completion, Heart of Doha will be able to accommodate a population of more than 27,000. The modern amenities include centralised district cooling, gas network, vacuum waste disposal system, a dedicated cycle-way and centralised security. A tramway to move residents and visitors has also been planned. Connectivity to Souq Wakif is under study. Project will be executed in 5 phases. Schedule: Construction is underway for various packages. Project is expected to be completed in 2016.

Al Ghadeer At Saih As Sidirah, UAE

Project Value : US$ 5,400 million Status : Construction Construction Start : Q2 2010 Completion : Q4 2018 Client : Sorouh Real Estate Location: Saih As Sidirah Contractor : Construction General Contracting

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Scope: The project will be located near the Ghantoot Bridge on Abu Dhabi-Dubai highway. The development will cover 3 million sq.m. There will be more than 6,000 residential units providing affordable luxury housing. It will also include shopping centers, offices, clinics, business parks, 3 schools and hotels. The project will comprise of six villages- Baraha, Liwa, Falaj, Khaleej, Buhayra and Khubaira. Alghadeer will also contain a Goodman Sorouh Business park and a hotel with conference facilities overlooking Alghadeer Lake.

Schedule: Main construction works for the Phase 1 of the residential development has commenced in October 2010.

Construction General Contracting is the main contractor for the Phase 1.

Capital District in Abu Dhabi, uae

Project Value : US$ 5,000 million Status : Design Construction Start : Q4 2014 Completion : Q4 2028 Client : Urban Planning Council Location: Capital District Scope: The new development located 15 km from Abu Dhabi City and spanning an area of 4,900 hectares, will be implemented in several phases. It will be the headquarters of all federal authorities, ministries, and local government offices. The city will also include office space and residential units housing 350,000 residents across an area of 4,500 hectares. It would be able to accommodate 3 million people in less than 25 years. Phase 1 of the project will cover the construction of houses, universities, offices, federal government offices, town centers, a sports city, Emirati housing, the headquarters for Zayed University and Khalifa University, an exhibition center, and a convention center. The project will be divided in 5 precincts. The Federal Precinct, The City Center Precinct, The Sports Hub Precinct, The Palace District, and The Emirati Neighborhood.

Schedule: Construction works has not commenced on the development. Completion is set for 2028.

The Abdali Urban Regeneration Project – Phase 1, Jordan

Project Value : US$ 5,000 million Status : Construction Construction Start : Q4 2004 Completion : Q4 2015 Client : Abdali Investment & Development Company Location: Abdali Contractor : Navayuga Engineering Company

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Scope: The Abdali Urban Regeneration project is the largest mixed-use development project ever encountered in the heart of . To be developed on 350,000m² of land, the project will comprise of a total built-up area of more than 1,500,000m² consisting of residential apartments, office space, commercial and retail outlets as well as entertainment. Envisioned as the business and commercial center of Amman, the Phase I of Abdali is a highly- efficient and planned pedestrian oriented mixed-use community with a total built up area of 1,034,000sq m.

Schedule: Main construction works for the Phase 1 are underway with completion scheduled in 2015.

Al Maryah Island Development in Abu Dhabi, UAE

Project Value : US$ 5,000 million Status : Construction Construction Start : Q3 2007 Completion : Q4 2017

Client : Mubadala Development Company Location: Contractor : Multiple Contractors Scope: The project calls for the development of Al Maryah Island. It is located between Reem island and Mina area of Abu Dhabi Island. The development will include a new stock exchange building, financial buildings, and a new Cleveland hospital. The island will be connected to Abu Dhabi island by two bridges. The first will connect Falah street next to Abu Dhabi Mall and the second to the Mina area. A third smaller bridge will provide access to Reem island.

Schedule: Construction is underway on various packages under Phase 1. Phase 2 and 3 are still under planning stage.

North Bahrain New Town Project, Bahrain

Project Value : US$ 4,500 million Status : Design Construction Start : Q4 2013 Completion : Q4 2018 Client : Ministry of Works & Housing Location: Budaiya

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Scope: Project calls for the construction of a 10 million square meters community development located in Budaiya on the northern coast of Bahrain. It comprises of 17 man-made islands interconnected with bridges and includes residential and commercial buildings, hotels, schools, universities, hospitals, malls, a port, a water museum, clubs, and other facilities. Project is to be developed in three phases: Phases 1 covers 1,500 houses. Phase 2 covers the construction of 122 houses and 15,000 housing units. Phase 3 is the extension of the project and will be developed at a later stage. Phase 3 covers the construction of three residential areas and 13,000 housing units.

Schedule: Construction is expected to commence during late 2013.

National Guard – Housing Units in Saudi Arabia

Project Value : US$ 4,500 million Status : Construction Construction Start : Q4 2010 Completion : Q4 2019

Client : Saudi National Guard Location: Various Locations Contractor : Saudi Oger / Saudi Binladin Group Scope: The project calls for the construction of 17,000 housing units at eleven locations in Saudi, including Khashm Al- Aan, Al Hasa, Al Qassim, Al Madina, Taif, Jeddah, , Yanbu, Hail, Dirab and King Khalid Military Academy in the northeast of Saudi.

Schedule: Saudi Oger was awarded the main construction contract of 5,000 housing units in Riyadh, while Saudi Binladin was awarded the rest 12,000 housing units by the end of February 2010. Arabtec Saudi received a letter of intent from Saudi Binladin Group to carry out the construction of 5000 housing units in the Eastern province.

Sharjah Marina, UAE

Project Value : US$ 4,087 million Status : Design Construction Start : Q4 2014 Completion : Q4 2021 Client : Burooj Properties Location: Al Khan

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MENA Real Estate Market - Overview September 2012

Scope: The development will include 11 residential buildings, office towers, 4 hotels, an amphitheater, and a shopping mall. The 10 million square feet project will be located on Sharjah's Al Khan Peninsula. There will be a 2,000- meter by 60-meter water canal surrounded by low-rise buildings specifically modelled in Arab design. It also includes an Ottoman mosque, a public beach, a family-oriented park, food courts, spas and offices.

Schedule: The project, currently in the re-design phase, will be implemented in 2 phases.

Al Markaz in Mussafah, UAE

Project Value : US$ 4,087 million Status : Construction Construction Start : Q4 2010 Completion : Q4 2020 Client : Waha Capital Location: Al Hameem, Mussafah Scope: The development in Mussafah will consist of a business park, industrial park for warehousing and logistics facilities, housing for lower and middle classes apart from labor accommodation. The project will be located at Al Hameem area on the Tareef-Abu Dhabi road on a 6 sq.km block of land. The client will allocate 1.4 million sq.m for warehouse and storage, 775,000 sq.m for light industries and 180,000 sq.m for small industries.

Schedule: Construction is underway on the infrastructure as well as light industrial buildings package.

Residential City in Jeddah, Saudi Arabia

Project Value : US$ 4,000 million Status : Construction Construction Start : Q2 2011 Completion : Q3 2016 Client : Talaat Moustafa Group Holding Location: Jeddah Contractor : Saudi Binladin Group Scope: The project calls for the construction of a fully integrated residential city following the Al Rehab City model. It will be over an area of 3.8 million square meters located in Jeddah.

Schedule: Construction started in the 2nd quarter of 2011 is progressing as per schedule.

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MENA Real Estate Market - Overview September 2012

Methodology 1. All estimations made for contract awards are based on the project schedule as of September 2012.

2. All projects announced and on drawing boards as entered in Ventures Onsite (www.venturesonsite.com) MENA Projects Database as of September 2012 are taken into consideration for compiling the charts.

3. Projects which have a project value less than US$5 million are not taken into account for the calculations.

4. The projects considered for the purpose of analysis include projects in all stages of construction including projects on hold, but exclude completed and cancelled projects.

Code of Ethics

Ventures Middle East and its employees adhere to the practices and ethical standards established by the American Marketing Association (AMA), Charter Institute of Marketing (CIM), and the Society of Competitive Intelligence Professionals (SCIP). The firm and its employees abide by the applicable laws for the jurisdiction of the research, Ventures Middle East, and the client organization. Additionally, any request or requirements are incorporated into the practices of Ventures Middle East for the client’s engagement.

END OF REPORT

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MENA Real Estate Market - Overview September 2012

Ventures Onsite MENA Projects Database Ventures MENA Projects Database provides detailed, reliable and current project information on more than 12,000 current / future projects in the Middle East and North African Countries (UAE, Qatar, Saudi Arabia, Kuwait, Bahrain, Oman, Syria, Jordan, Lebanon, Yemen, Egypt, Libya, Algeria, , Iraq, Tunisia, Sudan and Morocco) each over US $ 2.5 million in the following industry sectors; Oil & Gas, Pipeline, Industrial, Buildings, Power & Water, Marine and Infrastructure & Sewerage.

Projects are identified from the concept or preliminary study stage, and followed through the various phases of the project such as tender for the design consultancy, design, tender /contract award of consultant / main contractor through to commissioning.

Our projects information typically includes the project scope, overall project value, project schedule i.e. when tenders where issued/closed for consultancy/main contractor and schedule for appointment of consultant/main contractor etc. and key contacts like client/developer/architectural consultant/ main contractor at a later stage all with project manager names/contact details. MEP (Mechanical, Electrical and plumbing) contractor when appointed is also included for all building projects in the database.

Please see website: www.venturesonsite.com

If you would like to subscribe to our MENA Projects Database, please do not hesitate to contact us.

Ventures Middle East LLC P.O. Box 32094 Abu Dhabi, United Arab Emirates Tel: 009712 6222 455 Fax: 009712 6222 404 Email: [email protected]

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