Week 44 SUNDAY, 03 NOVEMBER 2019

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA HOUSE BUYING IN RIYADH AND JEDDAH RAMPS UP IN THIRD QUARTER HOMEFRONT: 'I BOUNCED NINE RENTAL CHEQUES DESPITE ASKING THE LANDLORD FOR A SHORT DELAY' SAUDI ARABIA’S ECONOMY PROJECTED TO GROW 2.3% NEXT YEAR RED SEA DEVELOPMENT CO ASSEMBLING 10BN SAUDI RIYAL DEBT PACKAGE FOR GIGA-PROJECT SAUDI TOURISM MEGA PROJECT AWARDS CONTRACT FOR AIRPORT PLAN WORK SET TO START ON $3.5BN KING HAMAD CAUSEWAY MEGA PROJECT CONSTRUCTION STARTS ON MANDARIN ORIENTAL, MUSCAT NEW DIRECT, INDIRECT TAXES TO BE IMPOSED IN UAE HOW VISA REFORMS BOOST UAE ECONOMY NON-OIL SECTOR SET TO DRIVE UAE GROWTH LOANS MAY GET CHEAPER IN UAE AS CENTRAL BANK CUTS INTEREST RATES

DUBAI

DEYAAR TO START DH800 MILLION PROJECT IN MIDTOWN DEVELOPMENT IN DUBAI

HOW DUBAI OFFICE RENTS HAVE FARED SO FAR IN 2019

MORE DUBAI TENANTS 'TRADE UP' TO BIGGER HOMES AS RENTS REMAIN SUBDUED

'IF YOUR PROFITS HAVE FALLEN BY NEARLY 90%, IT'S DIFFICULT TO FOCUS,' SAYS ALABBAR OVER DAMAC CLAIMS

DUBAI DEVELOPER CALLS FOR PROPERTY SUPPLY FREEZE

UAE'S AZIZI ADDS 6,000 WORKERS TO BOOST CONSTRUCTION OF FLAGSHIP PROJECT

DUBAI AUTODROME BUSINESS PARK PHASE 2 ON TRACK FOR FEBRUARY DELIVERY

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

PIRELLI LAUNCHES TYRE HOTEL CONCEPT IN DUBAI

DANUBE READIES FOR DH1.5B PROJECT LAUNCH IN DUBAI

FIVE NEW COMMUNITIES IN DUBAI TO MOVE INTO

DEVELOPER TAKES VERTICAL LIVING IN DUBAI TO ‘LOFTY’ HEIGHTS

DUBAI'S REAL ESTATE TO DRIVE ITS OWN GROWTH IN COMING YEARS

CHINESE INVESTORS' INTEREST IN DUBAI'S REAL ESTATE SECTOR GROWING

NO RENT HIKE FOR THREE YEARS IN DUBAI, DRAFT LAW PROPOSES

SMART DUBAI TO PROMOTE USE OF ADVANCED TECHNOLOGIES IN REAL ESTATE

ABU DHABI

FITCH ASSIGNS STABLE OUTLOOK FOR ABU DHABI ON HIGH GDP PER CAPITA

ABU DHABI'S AED 12BN WATERFRONT DESTINATION YAS BAY COMPLETES MAJOR MILESTONES

REALTY A KEY COMPONENT OF ABU DHABI ECONOMY

NORTHERN EMIRATES

RAK PROPERTIES' PROFIT SPIKES AS MORE NEW HOMES ARE SOLD

INTERNATIONAL

BLACKSTONE, OTHER PE MAJORS INVEST $3.8BN IN INDIAN REAL ESTATE PROJECTS

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

HOUSE BUYING IN RIYADH AND JEDDAH RAMPS UP IN THIRD QUARTER Thursday, Oct 31, 2019 The number of residential transactions in Riyadh and Jeddah rose substantially during the third quarter of 2019, driven by improving consumer sentiment, attractive valuations and the development of several large-scale housing schemes, according to a new report from Knight Frank. Efforts to expand the mortgage market also had a positive impact. Residential transactions in Riyadh rose 122 per cent year-on-year in the third quarter whereas in Jeddah, transactions rose 82 per cent. The value of transactions also rose in both major cities, with Riyadh recording 12.92 billion Saudi riyals (Dh12.65bn) in transactions during the third quarter, up 139 per cent year-on-year. Transactions in Jeddah were up 60 per cent to 4.27bn riyals, the report said. “We expect the volume of transactions to maintain a positive momentum over the next 12 months, underpinned by the Sakani affordable housing programme and the regulatory efforts to expand the mortgage market,” Knight Frank said in the report. Sakani is a government programme aimed at providing affordable homes for Saudis via subsidised land plots and access to cheap home loans. Residential supply in Riyadh increased to 1.24 million housing units, with 8,000 new units added in the third quarter, Knight Frank said. The consultancy expects 70,000 more units to be handed over to the market between 2019 and 2021. In Jeddah, residential supply reached 835,000 housing units, with about 1,800 added to the market during the third quarter. About 25,000 units are expected to be handed over between 2019 and 2021 to the Jeddah market. Villa sale prices in Riyadh recorded a 1.4 per cent year-on-year increase during the third quarter whereas apartment sale prices declined moderately at 0.4 per cent. In Jeddah, villa and apartment sale prices dropped 6 per cent and 7 per cent, respectively, year-on-year. Price falls in Jeddah are likely to moderate due to the pick-up in activity, which will also cause prices in Riyadh to stabilise, the consultancy said. Rival consultancy JLL said Riyadh's residential market continued to soften during the third quarter with apartment and villa sale prices dropping 6 per cent and 5 per cent, respectively, year-on-year. Rental rates of apartments and villas also declined at a rate of 1 per cent during the period. JLL said the Jeddah residential market remained "weak" during the third quarter due to a slowdown in economic activity and softening demand. On an annual basis, average rental rates and sale prices continued to soften by 7 per cent and 8 per cent, respectively, for both apartments and villas. “The performance of the residential market is expected to witness further declines as more supply is delivered in the coming 12 to 24 months,” JLL said on Jeddah. “However, we remain positive in our long-term outlook as the market is expected to pick up on the back of housing initiatives, which tackle the shortage of affordability and increase homeownership rates in line with Vision 2030,” it said.

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The office market fared slightly better, showing stabilisation, JLL said, after a number of difficult years.

Select Grade A spaces characterised by high-quality finishing with ease of access and ample amenities maintained healthy rents of approximately 1,500 riyals per square metre. The recent launch of international tourist e-visas in Saudi Arabia, as part of Vision 2030 initiatives to boost tourism, is set to have a positive long term impact on the Kingdom’s real estate market, JLL said. Source: The National Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

HOMEFRONT: 'I BOUNCED NINE RENTAL CHEQUES DESPITE ASKING THE LANDLORD FOR A SHORT DELAY' Wednesday, Oct 30, 2019 I rented a studio in Abu Dhabi and signed a contract for a year. After signing the cheques for the property, my company started delaying my salary payment. I approached the landlord and asked him not to deposit the cheque on the date mentioned to avoid it bouncing. I requested an eight-day delay on each monthly cheque to allow my salary to come in, but he refused and deposited the cheque on the mentioned dates. It meant the cheque bounced every month. When my salary eventually dropped, I would then go and pay him in cash to cover the bounced amount, however, he never gave me a receipt to prove I had paid him. This went on for nine months, so I asked him to return all the cheques I had given him. He refused saying I must pay Dh500 for each bounced cheque before he would give them to me. I told him I did not have the money and that he could keep the cheques for now. However, I demanded he give me a receipt for the rent I have paid to cover the nine months. He refused and then started cutting my electricity and AC on a regular basis. I later told him I would not honour the remaining three months' rent unless he gave me a receipt for the nine months. Alternatively, I again demanded he give me back my cheques. He did not agree and now my AC has been cut off for three months because I have refused to pay due to him not giving me any proof of payment. Also my contract is not registered. What should I do? EV, Abu Dhabi Your situation is not ideal for you or your landlord: in your case because of the delay in your employer paying your salary; for the landlord it is the bounced cheques. The landlord, however, is clearly not being sympathetic especially as you do pay your rent — albeit late in cash. The reason the landlord is requesting the penalty of Dh500 per bounced cheque is presumably due to the clauses in your tenancy contract stating this and also to cover any bank charges attracted by the returned cheque. The landlord, however, is not allowed to cut off your AC or water so for this you can go to the police to file a complaint. You can also file a complaint at the rent committee but unfortunately as your rental contract is not registered, your complaint is weakened. My advice is to remove yourself from this situation and to give your landlord the statutory two months' notice of non renewal, seeking alternative accommodation going forward. The real issue is the fact you are paid late by your employer every month. I suggest you seek further advice from the Ministry of Human Resources & Emiratisation. Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Source: The National Back to Index

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DEYAAR TO START DH800 MILLION PROJECT IN MIDTOWN DEVELOPMENT IN DUBAI Tuesday, Oct 29, 2019 Dubai-listed Deyaar Development plans to start a new Dh800 million scheme at its Midtown master development at Dubai Production City despite concerns about a slowdown in the property market due to oversupply and weak demand. Construction of the new project will start in November and is expected to complete in 30 months, Saeed Mohammed Al Qatami, chief executive of the company, said on Tuesday. “It is part of [the] expansion of Midtown, which is a success story. We have developed 13 buildings as part of phase one, which have all been sold out. We are planning to start the second phase with 11 buildings next month,” he said. The overall investment in Midtown, through all the construction phases, is expected to touch Dh2.6 billion, he said. The company is planning to finance the project through a mix of debt and equity. The start of the new project comes despite concerns on the slowdown of the property market due to weak demand and oversupply. The chairman of one of Dubai's biggest privately-owned developers, Hussain Sajwani, called for a one-to-two year pause on new construction projects in an interview with Bloomberg earlier this week as a way of redressing the supply-demand imbalance. “All we need is just to freeze the supply. Reduce it for a year, maybe 18 months, maybe two years,” he told Bloomberg TV. Mr Al Qatami said there is still demand in Dubai’s property market and people will buy a good product. “There is demand, today and there is choice for you to stay," he added. "People who are willing to pay a couple of thousand more than the others, just to have a better life, demand is always there. The demand for me may not be demand for you.” He also sees the property market improving due to initiatives by the government as well as Dubai’s Expo 2020. The Dubai government has recently set up a new real estate committee to ensure a better supply balance in the emirate through greater collaboration between government-related entities and private sector companies. The UAE government is also encouraging investment through long-term visas for investors and professionals. “Things will start improving with more and more government initiatives,” Mr Al Qatami said. He argued that Deyaar has a low level of debt at Dh400m and is supportive of the Central Bank of the UAE’s proposals to create a new regulatory framework limiting banks' exposure to the real estate sector. Deyaar Development is 41 per cent owned by Dubai Islamic Bank. In the hospitality sector, Deyaar Development opened three new hotels in Dubai with 950 rooms and it expects a recurring revenue of Dh100m from next year. “There will be more visitors next year due to Expo 2020 and [this] will benefit the hospitality industry.”

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The Dubai-based developer reported a 54 per cent decline in third-quarter net profit last week as revenue decreased and expenses climbed.

Net profit for the three-month period ending September 30 dropped to Dh16.3m, the company said on Thursday, in a statement to the Dubai Financial Market, where its shares trade. Revenue fell 4.1 per cent year-on-year at the end of the third quarter to Dh145.7m, while expenses increased to Dh43.6m. Property consultancy JLL in its third quarter report published last week said more than 6,300 new homes were completed in Dubai during the three-month period, bringing the total fulfillments so far this year to 23,000. A further 33,000 units are scheduled to complete by the end of the year. Source: The National Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

RAK PROPERTIES' PROFIT SPIKES AS MORE NEW HOMES ARE SOLD Sunday, Oct 27, 2019 RAK Properties reported a five-fold increase in net profit for the first nine months of 2019 as the company achieved much higher levels of sales. Net profit climbed to Dh32.9 million in the nine months to September, up from just Dh6.1m in the same period last year. Revenue grew 70 per cent to Dh134.5m as property sales more than doubled to Dh94m, according to financial statements filed on the Abu Dhabi Securities Exchange, where its shares trade. Finance costs climbed 75 per cent to Dh4.9m, which the company indicated was due to the development of two hotels. "In general, the creation of five-star holiday assets requires significant funding, and the funding for the two hotel properties is facilitated by renowned banks in the UAE," the company said in a statement accompanying its results. The company is currently building two hotels — an 174-room Anantara and a 350-room Intercontinental property. Both will be based at its Dh10 billion Mina Al Arab master community on the Ras Al Khaimah coastline, but their delivery has been delayed. In its latest statement, the company said the "hotel properties are expected to start operation during 2021". In terms of other projects, the company said that both its 266-apartment Julphar Residence project at Reem Island in Abu Dhabi and its 144-unit Gateway Residence project at Mina Al Arab are both "in the advanced stages of development" with expected delivery either in the final quarter of this year or the first quarter of next year. The company also said it has a sales backlog of Dh122m of properties, revenue for which will be recognised in the next two-to-three years, depending on the construction timetable. Rents and prices in the Northern Emirates are continuing to fall as potential occupiers take advantage of cheaper rents in Dubai, where more stock is available. According to Cavendish Maxwell's third quarter UAE property market report, rents in more exclusive areas of Ras al Khaimah such as Mina Al Arab, Al Hamra Village and the Bateen Al Samar residential development range from Dh20,000 per year for a studio apartment to Dh60,000 for a three-bed unit. “A prolonged softening in prices and rents has made real estate more accessible to, and affordable for, owner- occupiers and tenants," said Aditi Hariharan, an associate partner at Cavendish Maxwell. Source: The National Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

FITCH ASSIGNS STABLE OUTLOOK FOR ABU DHABI ON HIGH GDP PER CAPITA Friday, Nov 01, 2019 Fitch Ratings affirmed Abu Dhabi’s long-term issuer rating of AA on Thursday and assigned it a stable outlook based on its strong fiscal and external metrics and high gross domestic product (GDP) per capita. “Sovereign net foreign assets are estimated to be the third-largest among Fitch-rated sovereigns, at 185 per cent of GDP in 2018, and government debt is among the lowest, at a forecast 11 per cent of GDP at end-2019," Fitch said in a statement. A moderation of oil prices will result in lower revenue, only partly offset by a contraction of spending, according to the ratings agency. It expects a fiscal surplus of 1.9 per cent of GDP in 2019, down from 3.3 per cent in 2018 Abu Dhabi’s budget is expected to slip into a deficit of 1 per cent of GDP in 2020 and 2.3 per cent in 2021, as Brent oil prices progressively slide to $60 per barrel, oil production remains broadly stable and moderate spending growth resumes. “Underlying domestic expenditure (excluding aid payments and the federal contribution) will rise and constitute a loosening of fiscal policy following significant structural fiscal reforms and spending cuts undertaken in 2015 and 2016 and the resulting slower GDP growth," Fitch said. Government spending was cut by a cumulative 25 per cent between 2014 and 2016 and various fees and taxes were raised. The UAE government introduced a 5 per cent VAT starting in 2018, after introducing excise tax in October 2017. The rating agency estimates that Abu Dhabi's fiscal financing requirement will total $36 billion (Dh132.2bn) for 2019-2021. Spending is likely to contract about 5 per cent. “We estimate that although ADIA (Abu Dhabi Investment Authority) interest and dividend income could cover most of the financing needs, the government could proceed with new bond issuance to take advantage of a favourable interest rates environment," Fitch said. Abu Dhabi issued bonds for $10bn in September, which received strong interest from international investors. “Strong financial market returns may have allowed ADIA to mostly preserve the value of its assets in recent years, even as they have been used to finance the deficit," Fitch said. "We estimate ADIA's foreign assets at $487bn at end-2018.” The ratings agency expects real GDP growth of 1.3 per cent in 2019, from 1.9 per cent in 2018 which was driven by higher oil production. Abu Dhabi's non-oil growth is expected to pick up moderately to 1.4 per cent in 2019 and 2- 2.5 per cent in 2020-2021, from 0.6 per cent in 2018. Oil production is expected to be close to 3.1 million barrels per day in 2019, below current capacity of 3.5 million bpd. The planned expansion of oil production capacity to 4 million bpd by 2020 represents an upside to growth and government finances, Fitch said adding “it is unlikely to mobilise as long as the Opec+ agreement to cap production remains in place".

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

“Long-term growth potential is supported by continued high public sector investments and structural reforms.”

Source: The National Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

SAUDI ARABIA’S ECONOMY PROJECTED TO GROW 2.3% NEXT YEAR Friday, Nov 01, 2019 Saudi Arabia's economy, the largest in the Arab world, is projected to expand 2.3 per cent next year after growing an expected 0.9 per cent this year, as the kingdom presses on with economic reforms and diversification that support its non-oil private sector, the finance minister said in a pre-budget statement for the 2020 fiscal year. The kingdom expects non-oil GDP growth to accelerate next year after increasing 2.5 per cent in the first half of this year, Mohammed Al Jadaan said at a briefing on Thursday. Overall GDP increased 1.1 per cent over the same period. Saudi Arabia has been boosting alternative revenue lines such as construction and tourism following a three-year oil price slump that began in 2014. A key pillar of its Vision 2030 programme is increasing non-oil economic growth, which accelerated at the fastest pace in four years in the second quarter of this year. The ratio of non-oil revenues to non-oil GDP is expected to increase to 16 per cent at the end of this year compared to only 7 per cent in 2012. Spending is expected at 1.02 trillion Saudi riyals for 2020 compared with 1.048tn projected in 2019, the minister said ahead of the final budget announcement to take place in December. The focus will be on “improving the efficiency of spending without any disruption to diversification and transformation plans”, the Ministry of Finance statement said. Revenues are expected to reach 833bn riyals next year, in comparison to an estimated 917bn this year. The budget deficit is expected to continue to decrease in 2019 to 4.7 per cent of GDP, compared to 5.9 per cent last year. However, the budget deficit will widen to 187 billion riyals next year, or 6.5 per cent of GDP from a projected 131 billion riyals for this year. There are currently 22 support initiatives for the private sector, such as cash subsidies and financing guarantees, which aim to strengthen its role as the main driver of economic growth and job creation. Major projects across various sectors “will support non-oil GDP growth in 2020 and over the medium term”, the statement said. At the Future Investment Initiative in Riyadh this past week, Saudi Arabia closed 24 investment deals worth a total of $20bn. The largest deals included the $5bn mixed-use real estate Arabian Dream project and $11.45bn Air Product Qudra project. “FDI has grown by 10 per cent and local investment is on the rise,” Mr Al Jadaan said at the conference. “Confidence is growing, and public-private partnerships are allowing us to ease the burden on government budgets.” Saudi Arabia’s construction sector is growing for the first time in five years, increasing 3 per cent in the first half of 2019 compared to a decrease of 2.8 per cent during the same period last year. Other sectors that have grown in the first half year-on-year include: wholesale, retail trade, restaurants and hotels by 3.8 per cent; finance, insurance and real estate by 5.1 per cent; transport, storage and communication by 5.6 per cent; and community and social activities, including arts and entertainment by 5.9 per cent.

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“We want the Saudi economy to be immune to global and local challenges,” Mr Al Jadaan said at FII. “This is what we are trying to do to improve sectors, take care of the digital transformation of the government sector, and take fundamental structural reform measures that I believe have put us on the right track towards our endeavour.” According to the IMF’s latest projection last month, economies of Gulf countries are projected to grow 0.7 per cent in 2019, down from 2 per cent last year, before rebounding to 2.5 per cent in 2020. The non-oil sector in the GCC will grow from 1.9 per cent last year to 2.4 per cent in 2019 and 2.8 per cent in 2020, according to the Washington- based lender. Source: The National Back to Index

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RED SEA DEVELOPMENT CO ASSEMBLING 10BN SAUDI RIYAL DEBT PACKAGE FOR GIGA-PROJECT Wednesday, Oct 30, 2019 The Red Sea Development Company is assembling a 10 billion Saudi riyal (Dh9.78bn) debt package in addition to the equity it has received from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, as the company develops an area for tourists on the Red Sea slightly smaller than Belgium. "There's no need for the capital from a bond or sukuk issue, between what we’re getting from the PIF, [public- private partnership agreements] and the debt package", chief executive John Pagano said, "although it would not be ruled out", he added. The Arab world's largest economy is undergoing an economic overhaul as Crown Prince Mohammed Bin Salman, who oversees the kingdom's economic policy, rolls out reforms to cut the country’s dependence on oil under the overarching Vision 2030 agenda. The Red Sea Project is one of three 'giga-projects' under the economic reform plan, alongside the Qiddiya entertainment zone and the $500bn Neom project. Boosting tourism is a major plank of economic reforms. According to the World Travel and Tourism Council, 10.4 per cent of global GDP is derived from tourism. By contrast, 3.4 per cent of Saudi Arabia's economy is from tourism. The Red Sea Project is forecast to add 22bn riyals "of steady state contribution" to the economy per year, Mr Pagano said at a press briefing on the sidelines of the Future Investment Initiative in Riyadh. The area aims to welcome its first guests by 2022 and is targeting 1 million visitors annually by the time the project is complete. At 28,000 square kilometres, the Red Sea project on the western coast of Saudi Arabia is one of the biggest tourism developments ever undertaken in the region. It includes 200km of coastline and an archipelago of 90 untouched islands and coral reef, dormant volcanoes, desert canyons, mountains and abundant wildlife. The company plans to leave 75 per cent of the islands undeveloped and by "using pricing to ensure we don't have too many visitors", will aim to target middle class luxury-minded travellers, Mr Pagano said. The developer worked with the King Abdullah University of Science and Technology to calculate environmental impact. Through that process it identified where to put boat launches, bridges, hotels and dive sites, according to the chief executive, adding that the entire area will be carbon-neutral — save for most of the cars and the aeroplanes that will deposit tourists. Source: The National Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

HOW DUBAI OFFICE RENTS HAVE FARED SO FAR IN 2019 Saturday, Nov 02, 2019 A continued lack of demand and drive from occupiers to lower costs has seen Dubai office rental rates fall on average by 8.4 percent in the year to the end of September, according to new research. Knight Frank said Grade A rents in Dubai previously witnessed a period of moderation in rental drops in the year to Q2 but the rate of decline increase to 5.9 percent in Q3. Citywide office rents fell by 9.2 percent in the 12 months to September to AED110 per sq ft per year. Knight Frank said the figures come as business confidence in Dubai has eased in the first two quarters of 2019, following the slowdown registered in Dubai’s GDP growth, where GDP grew by 1.9 percent in 2019, down from 3.1 percent a year earlier. It added that the vast majority of activity in the Dubai office occupier market continues to stem from firms consolidating, with activity from new incoming occupiers remaining very limited in the first three quarters of 2019. Matthew Dadd, partner at Knight Frank Middle East, Occupier Services and Commercial Agency said: “With the premium between entry level prime office space and average Grade A buildings closing, firms are much more open to considering relocating in Dubai to Prime office buildings. Particularly as prime office space offers dual licencing, something which not all Grade A office space offers.” Despite a challenging economic backdrop, data from the Ministry of Human Resources and Emiratisation showed that Dubai has added 90,304 net new jobs in the year to June compared to 74,108 in the same period a year earlier, representing a 21.9 percent increase. Source: Arabian Business Back to Index

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M ORE DUBAI TENANTS 'TRADE UP' TO BIGGER HOMES AS RENTS REMAIN SUBDUED Tuesday, Oct 29, 2019 Tenants in Dubai are making the most of continuing low prices which allow them to attain bigger properties, according to brokerage Appello Real Estate. The property agent said that this year, up to mid-October it has seen a 34 percent of its existing rental clients upgrading to a bigger property. “Every market environment sees definite winners and right now it’s the tenants who are sitting pretty," said Naval Vohra, CEO of Appello Real Estate. “Renting a spacious, modern apartment used to be merely an ambition for a large section of consumers in the UAE. But as the rental market changes, so too are the lifestyles and expectations of tenants. Dubai v Abu Dhabi: where are property prices, rents falling faster? "As leasing rates for flats and villas across the city have dropped year by year, residents are in an ever-stronger position to negotiate on a great deal.” Vohra added that it isn’t just a case of making rental budgets go further in terms of property size, bedrooms or better location, it is also about getting to enjoy added benefits such as having a private garden, a swimming pool or high tech gym next door. The broker said that this trend is ongoing as Dubai rents and prices are set to continue falling both this year and into 2020 as more supply enters the market. A recent report said that nearly 29,500 units will be delivered in the emirate this year, with around 16,500 units already delivered so far and an additional 13,000 units expected over the remainder of 2019. Appello Real Estate also said that 37 percent of its clients in the same time period shifted into newer Dubai communities. Source: Arabian Business Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

'IF YOUR PROFITS HAVE FALLEN BY NEARLY 90%, IT'S DIFFICULT TO FOCUS,' SAYS ALABBAR OVER DAMAC CLAIMS Monday, Oct 28, 2019 Emaar chairman Mohamed Alabbar has hit out over claims from rival developer Damac that the company continues to “dump” properties on the market – and that all new home construction in Dubai should be halted for two years. In a telephone interview with Arabian Business, Alabbar - when quizzed about comments made by a Damac boss to Bloomberg – said: “I don’t know what interview anyone has given to anyone else. I am focused on our customers, the quality of our construction, our technology, our people and our strategy for the future.” When told that the Damac executive had pointed, in the Bloomberg interview, to Emaar as the main culprit in oversupply, and that Emaar’s payment plans had encouraged speculation, Alabbar laughed off the claims, saying: “Really? Maybe if your Q2 profits were down by nearly 90 percent, it’s difficult to focus. I know what I am focused on, which is delivering the results Emaar customers and shareholders expect.” Dubai developer calls for property supply freeze Damac’s latest figures revealed an 87 percent plunge in Q2 profits to $13.7m with revenues falling 46 percent to $264m. After the results were published, EFG Hermes said: “Management indicated that there was a new launch in Business Bay (Zada) during the quarter, yet we see reported sales very weak, especially versus the overall resale market activity during the period and compared to its peer, Emaar Development, which reported sales of AED3,542m during the quarter (almost six times that of Damac’s).” Source: Arabian Business Back to Index

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DUBAI DEVELOPER CALLS FOR PROPERTY SUPPLY FREEZE Monday, Oct 28, 2019 A leading Dubai property developer has called for a temporary end to new construction in the emirate in a bid to address over-supply issued. Around 30,000 new homes will be built this year in Dubai, twice the demand in the Gulf city, according to estimates by property broker JLL. It comes as property prices continue to fall by around 30 percent compared it their peak five years ago. That has led to Damac Properties chairman Hussain Sajwani to call for immediate action. In an interview with Bloomberg, he said: “All we need is just to freeze the supply. Reduce it for a year, maybe 18 months, maybe two years.” Damac has dramatically reduced new sales in the past two years and will focus on selling the properties in its inventory, Sajwani said. Still, the developer will complete 4,000 homes this year and another 6,000 in 2020. Sajwani warned that ignoring the oversupply could spell trouble for the city’s banks. The declining value of homes would inevitably lead to growing bad loans and higher provisions against default, hitting profitability. Dubai has recently created a committee to limit supply and ensure that private developers operate in fair environment. “The domino effect is ridiculous because Dubai’s economy relies on property heavily,” he said. Damac’s share price has fallen 40 percent this year and the company won’t pay dividend because profitability is down. Sajwani said he prefers to keep the cash in the company to meet financial obligations. Earlier this year, Dubai's ruler announced the creation of a panel to address the glut in the property market. The committee charged with rebalancing the industry is headed by Sheikh Mohammed bin Rashid Al-Maktoum's son and deputy, Maktoum bin Mohammed, and includes representatives of top property developers in Dubai. Standard and Poor's ratings agency said earlier this year that property prices in Dubai, where full foreign ownership is allowed, have slumped to levels close to those seen in the 2009-2010 crash. It said prices will continue to fall until they stabilise either next year or in 2021. Source: Arabian Business Back to Index

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BLACKSTONE, OTHER PE MAJORS INVEST $3.8BN IN INDIAN REAL ESTATE PROJECTS Monday, Oct 28, 2019 Private Equity funds have pumped in close to $3.8 billion in Indian real estate projects between January and September this year, coming to the aid of the cash-starved sector which has been facing acute liquidity issues for the last several months. This year’s PE fund flow is 19 percent higher than last year’s $3.2 billion investment during the corresponding period. Commercial real estate projects attracted the large chunk of PE funds in the first 9 months of 2019, amounting to $3 billion, a sharp rise of 43 percent for the segment from $2.1 billion in the year ago period, according to the latest research report by Anarock Capital. “The lion’s share of this year’s PE funding in Indian real estate sector – as high as 95 percent – came as equity funding,” said Shobhit Agarwal, managing director and CEO of Anarock Capital. “Only 5 percent came as structured debt during January-September this year,” he added. Blackstone’s $800 million investment in the commercial real estate project of Indiabulls Real Estate in Mumbai, Blackstone and Salarpuria Sattva’s combined investment of $400 million in Tanglin Retail Realty’s commercial project in Bengaluru and Xander’s $150 million investment in New Vernon Capital’s commercial project in Pune were among the big ticket PE deals that took place in India this year. “Foreign PE funds continued to dominate the real estate investment scene this year as well,” Agarwal said, adding that Blackstone, Hines, Ascendas and Brookefield were the top ones. Residential segment received only $295 million PE funding during January-September this year. This was, however, nearly 40 percent higher than last year same period’s $210 million. Retail segment attracted close to $260 million PE investments since January till September 2019, whereas last year the segment saw higher inflows at $355 million. Logistics & warehousing also witnessed 27 percent decline in total PE inflows in 2019, amounting to just about $200 million as against $275 million in the year ago period. Mumbai attracted maximum PE funding in 2019, amounting to approximately $1.59 billion. This is followed by Benguluru ($420 million), Pune ($390 million) and Chennai (230 million). The south Indian city of Hyderabad, which saw more than $790 million PE inflows in the first three quarters of 2018, saw a fall of 76 percent during the same period this year at $190 million. In 2018, the city attracted total funds worth $1.1 billion. Source: Arabian Business Back to Index

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UAE'S AZIZI ADDS 6,000 WORKERS TO BOOST CONSTRUCTION OF FLAGSHIP PROJECT Friday, Nov 01, 2019 UAE-based Azizi Developments has said it has added a total of 6,000 workers to its workforce to speed up construction at its four-phased residential mega project, Riviera in MBR City, Dubai. The move comes in line with the developer marking 2019 as its Year of Construction, dedicating it to the swift construction of its ongoing projects, a statement. Riviera is the company’s flagship community project, comprising more than 16,000 residences spread across 71 mid-rise buildings that overlook an extensive retail boulevard, a canal walk with artisan eateries and boutiques, and Les Jardins, a social space. The completion of the project’s first phase currently stands at 54 percent, while phase 2 and phase 3 are at 36 and 22 percent respectively. So far, 198 slabs have been casted, 740,855 tons of concrete have been poured, and 31 cranes have been erected. Mohamed Ragheb, executive director - engineering division at Azizi Developments, said: “The addition of this sizable workforce to Riviera helps us ensure timely delivery, as well as the world-class standards of quality and aesthetics that we pride ourselves with. This community has an allure unlike any other, which is reflected in it being one of our most well-received projects with an outstanding investor response.” He added that Riviera is one of Azizi Developments’ most sought-after projects. Source: Arabian Business Back to Index

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DUBAI AUTODROME BUSINESS PARK PHASE 2 ON TRACK FOR FEBRUARY DELIVERY Thursday, Oct 31, 2019 Union Properties, the master developer of MotorCity, has announced it is on schedule to deliver Dubai Autodrome Business Park phase 2 in February 2020. The groundbreaking on the 100 percent pre-booked second phase of Dubai Autodrome Business Park, a purpose- built facility for racing teams and other motorsport related businesses, is currently 30 percent complete. The project, launched in June, has a 95 percent completed foundation work and progress of 60 percent in the erection of steel structure, the developer said in a statement. Ahmad Ibrahim, marketing and communications director at Union Properties, said: "The construction work of Dubai Autodrome Business Park expansion is on track and we expect to complete 50 percent of the project within the upcoming month as we commit to delivering it in Q1 2020." Faisal Al Sahlawi, general manager, Dubai Autodrome, said: "We aim to continually support the motorsport industry in the UAE and the region. This project presents equipped facilities designed to serve this niche industry and our expansion efforts are driven by strong market demand and the success of Phase 1 of the Business Park. "Adjacent to the 5.39km race circuit at Dubai Autodrome, the Dubai Autodrome Business Park project records a total investment of AED25.5 million and is part of Union Properties' development plans for MotorCity Phase 2." Ibrahim added: "Securing a 100 percent booking of all our units before we begin construction reaffirms our successful strategy in supplying the right product in the market, and we are currently conceptualising the design development of Phase 3." MotorCity by Union Properties offers a blend of entertainment, dining, and retail options within a pedestrian- oriented, multi-user environment. The master development encompasses six projects, including Avenue District, Dubai Autodrome, OIA Residence, Uptown MotorCity, Green Community MotorCity, and Business Park MotorCity. Source: Arabian Business Back to Index

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SAUDI TOURISM MEGA PROJECT AWARDS CONTRACT FOR AIRPORT PLAN Friday, Nov 01, 2019 The Red Sea Development Company (TRSDC), the developer behind one of the world’s most ambitious tourism development projects in Saudi Arabia, has awarded UK-based Fosters + Partners the design contract for the destination’s international airport. Announced at the Future Investment Initiative in Riyadh, the airport is set to serve the one million annual tourists and visitors expected by 2030. “Awarding the contract for the design of our airport is an important milestone and the first of the underlying infrastructure projects of the destination,” said John Pagano, CEO at The Red Sea Development Company. The airport, due for completion in 2022, will serve an estimated one million tourists per year with a schedule of domestic and international flights, and a peak of 900 passengers per hour. In line with the company’s sustainability goals, the airport will have an eco-friendly and sustainable design. Its architecture will be informed by the natural beauty of the surrounding landscape and represent the vision of The Red Sea project, Pagano added. Asked how much the company has earmarked for construction spending over the next year, he told a news conference the amount was up to SR12 billion ($3.2 billion), on top of what has been spent already. “What I say to contractors is that Saudi Arabia is where it’s happening. There’s going to be $1.5 trillion in construction spend over the next two or three or four decades and it’s a huge amount of construction. So this is the start of that process, set up now because there’s a long-term pipeline of work. We have enough work to keep most of these contractors busy as well but it’s bigger picture for them. So it is in their interest to make the effort to set up," he said. He added that the company has not taken out any loans to date but was in the process of finalising more than SR10 billion senior debt package expected to be in place by the early part of next year. The Red Sea Project is a new luxury hospitality project on the Red Sea. The first phase of the development will include up to 14 hotels offering 3,000 hotel rooms across five islands and two inland sites, as well as commercial, retail and leisure facilities and other infrastructure. Upon completion in 2030, the destination will deliver up to 8,000 hotel rooms across 22 islands and six inland sites. Source: Arabian Business Back to Index

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WORK SET TO START ON $3.5BN KING HAMAD CAUSEWAY MEGA PROJECT Tuesday, Oct 29, 2019 The King Fahad Causeway Authority on Tuesday signed a consultancy agreement worth around $8.9 million to start work on the $3.5 billion project linking Bahrain and Saudi Arabia. A winning consortium of KPMG, AECOM and CMS, a mix of financial, technical, and legal companies, will work on developing the financing model, design, of the mega project as well as the helping with the assement and selection of the main developers. The agreement was signed on the sidelines of the Future Investment Forum held in Riyadh. Running parallel to the existing King Fahad Causeway, the causeway is expected to be about 25km long and will carry passenger trains, freight trains and vehicles to reduce the traffic on the King Fahad Causeway. Kamal bin Ahmed Mohammed, Bahrai's Minister of Transportation and Telecommunications, said: “We are pleased to announce the appointment of the main consultancy consortium to start developing all necessary requirements and the financial model required for the construction of the new King Hamad Causeway. "This is a strategic project for us which will further enhance our logistics sector and the links between our two countries allowing us to realise common aspirations and reinforce the strong bilateral relations we have with the Kingdom of Saudi Arabia.” The new King Hamad Causeway will be constructed based on a public-private partnership model. Source: Arabian Business Back to Index

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ABU DHABI'S AED 12BN WATERFRONT DESTINATION YAS BAY COMPLETES MAJOR MILESTONES Sunday, Oct 27, 2019 Miral, Abu Dhabi’s creator of destinations announced major progress in the development of Yas Bay, a new and iconic waterfront destination on Yas Island. Miral’s AED 4 billion investment into the AED 12 billion project, includes developing the public realm and infrastructure of Yas Bay, the Hilton hotel and Yas Bay Arena. The 14 million square feet development is comprised of three distinct areas: The Waterfront, Residences at Yas Bay, and twofour54. Mohamed Abdalla Al Zaabi, CEO of Miral: “Our latest construction update highlights the significant progress we have achieved on our pioneering Yas Bay project. The mixed-use development will be a vibrant and iconic addition to Yas Island and a new, exciting destination for Abu Dhabi. Our investment in Yas Bay contributes to the emirate’s vision to diversify the economy and makes us closer to positioning Yas Island as one of the top global destinations for entertainment, leisure and business. With key construction milestones being achieved, we look forward to working with investors and partners from across the world to further develop this unique destination that sets a new benchmark for Yas Island and the UAE.” Yas Bay, once complete, will encompass the 18,000 seat Yas Bay Arena, Residences at Yas Bay – which forecasts 15,000 residents – a boardwalk and pier with 37 cafés and restaurants, 19 retail outlets, beach club, and two hotels, as well as being the new hub for twofour54. In terms of the progress; Yas Bay Arena is 75% complete, while the Hilton hotel and pier are 60% complete and are all scheduled for completion in 2020. As for the public realm and infrastructure of Yas Bay, this will be complete by December 2019. Yas Bay is set to be an exciting addition to Yas Island’s attractions, enhancing the diverse and unique leisure and entertainment experiences already offered on the island. Source: Arabian Business Back to Index

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PIRELLI LAUNCHES TYRE HOTEL CONCEPT IN DUBAI Saturday, Nov 02, 2019 Pirelli, the global tyre manufacturer, has introduced its Pirelli Tyre Hotel concept to the UAE, a tailored facility where drivers can store their premium tyres to optimise performance. The temperature-controlled facility at Pirelli’s P ZERO World in Dubai is fitted with custom-designed racks designed to enhance health and longevity of tyres. The concept was first introduced by Pirelli at its Tyre Performance Centre in Burton-on-Trent, England. Dubai is one of only four such stores in the world, after Munich, Monte Carlo and Los Angeles. With the new motorsport and track day season now in action, the hotel’s location on Hessa Street is close to Dubai Autodrome. Pirelli said drivers can call into P ZERO World, change tyres for their track session before returning them to the hotel. Vintage car owners can also check their tyres into the hotel, which is complimentary for Pirelli customers, to guard against flat spots, a common condition in cars that are parked for long periods while the hotel also caters to off- road enthusiasts. Alberico Avogadro, managing director, Pirelli Middle East, said: “The Tyre Hotel is a novel concept tailored to meet the needs of our loyal customers and drivers who want to optimize the performance, whether on the track or the road. “We are committed to service excellence and the hotel facility means drivers don’t have to worry about the performance of their tyres. Our team of specialists at P Zero World Dubai take care of everything, which allows drivers to pull in for a pit-stop, change their tyres and go.” Source: Arabian Business Back to Index

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CONSTRUCTION STARTS ON MANDARIN ORIENTAL, MUSCAT Saturday, Nov 02, 2019 Oman's upcoming luxury destination, The Mandarin Oriental, Muscat, has taken a major step forward as main construction works officially commenced. Senior executives from Eagle Hills Muscat, a partnership between Eagle Hills Abu Dhabi and Izz International, broke ground on the flagship project, which will bring one of the world’s most luxurious hotels and the first ever branded residences to Oman. The Mandarin Oriental comprises two major waterfront developments – The Mandarin Oriental Hotel Muscat and The Residences at Mandarin Oriental, Muscat – and is expected to play a major role in boosting the country’s tourism and property sectors. Low Ping, CEO of Eagle Hills, said: “The Mandarin Oriental, Muscat will introduce an entirely new concept of luxury living to Oman. With exquisite interiors, unparalleled sea views and iconic opulence, this new development is set to become a waterfront sanctuary right in the heart of the dynamic Muscat city. "This is a very exciting day for us, as we celebrate this significant milestone in our journey to redefine authentic luxury and promote the concept of integrated hospitality and residential development in Oman and across Eagle Hills’ global portfolio.” Mohammed Al Busaidi, CEO of Izz International, added: “We are committed to delivering progress and the highest quality of property developments in the sultanate, in line with the country’s economic growth strategies. We are therefore very proud to be part of this major development that will deliver a world-class destination and play a key role in further strengthening the country’s tourism sector.” Eagle Hills Muscat has recently awarded the main works contract for the project to Larsen & Toubro (L&T) Oman. L&T will carry out the overall construction on site, which includes a 150-key hotel, 156 branded residences, as well as 1,622 sq m of retail. The Mandarin Oriental, Muscat, is located on the coast of the prestigious Shatti Al Qurum district. Eagle Hills is currently developing projects in Bahrain, Ethiopia, Jordan, Morocco, Oman, Serbia and UAE. Source: Arabian Business Back to Index

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DANUBE READIES FOR DH1.5B PROJECT LAUNCH IN DUBAI Thursday, Oct 31, 2019 Danube Properties is putting the final touches to Dh1.5 billion residential community project — its biggest to date — in Dubai where unit prices start from Dh290,000 and a three-bedroom could be had for Dh1.2 million. The project will be in Dubailand and feature more than 2,000 homes. Targeted completion is in 2022-23. The plan is to launch the project “before the year is out”, and if so, this would be the biggest one by a private developer this year, a period when developers have been hesitant about off-plan launches fearing this would create an imbalance in demand and supply. In fact, there is a debate raging among leading developers in the city, with one side insisting there should be a freeze on all new launches for 12 months or more, while the other side reckons it should be business as usual and leave it for property buyers/investors to decide. But Danube is not about to be distracted by the talk going on outside. “We would love to launch the project this year itself,” said Atif Rahman, Director and Partner at Danube Properties. “Yes, the clock’s ticking away towards year-end, but we are nearly through with the pre-launch formalities. I would say we are at the 85 per cent mark. “For the land, we go through the approval process while we are still negotiating with the master-developer. We don’t want to finalise the land without negotiating the DCRs (Development Control Regulations). It saves us a lot of time subsequently. “If not, I would acquire the land but use buyers’ time to seek all the approvals. That’s what we don’t want to do. It has helped us maintain one of the fastest delivery-to-launch cycles.” Boosted by handovers There are reasons for Rahman’s relative confidence. Danube’s profile received a boost by the handover of the Glitz, its low-rise cluster in Studio City, where occupancy is at more than 90 per cent. This reinforces a message that the developer had been pushing right through with its previous launches — launch at prices the market considers affordable. A Dh290,000 price tag for a studio is on par with current market rates, and Danube is backing that with its usual 1 per cent monthly payments. The 1 per cent strategy has been used by other developers as well, which assures them consistency in payments. And this way, they do not have to resort to extended payment plans like most developers have done in the last two years. “If we are not able to create a “smarter” project with every launch, then we are not doing justice to the consumer,” said Rahman. “What they want is something updated, something with greater value-for-money. Some local developers have also held back sales until the project has gone past the 60-70 per cent stage of build- up. They believe buyers are more receptive these days to ready or near-ready offers. Does Danube intend to do a similar delay-the-sales strategy? “Why should we? We have done well sticking to what we have done in the past — that is, sales right along with the launch,” he added.

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Get it right

But the fears of an oversupply of newly built homes in Dubai persist. More, if developers are not able to find enough takers for these units. This is why some developers, both publicly and in private, have spoken about a freeze on all new launches. “They may have their reasons,” said Rahman. “But we had the launch of Waves recently and we managed to sell more than 90 per cent in relatively quick time. “If I am creating new supply, it’s my responsibility to make sure it cane be backed up with demand. I remain quite confident that we will continue to get those sales.” Source: Gulf News Back to Index

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FIVE NEW COMMUNITIES IN DUBAI TO MOVE INTO Tuesday, Oct 29, 2019 Residents looking to live in new, trendy communities can find plenty of options in Dubai. From beach-themed locations to homes closer to the anticipated Expo 2020 site, Dubai’s housing landscape is loaded with great choices for any house-hunter. Here are some of the newer neighbourhoods to watch out for. 1. Jumeirah Park Nakheel’s Jumeirah Park is a non-gated neighbourhood located behind Jumeirah Lakes Towers, bordering The Meadows. Home to around 21,000 residents, the villa-only community offers a family-friendly atmosphere with parks, cycling and jogging trails. There are four types of villas — Legacy, Heritage, Regional and Nova – and they offer three- to five-bedroom options. Some villas also have private swimming pools. Residents can find supermarkets, clinics and schools nearby and a new sports and leisure complex with an Olympic-size pool is under construction. According to property portal Bayut, rents for villas start from Dh145,000 and sale prices from Dh2.7 million. “Jumeirah Park is the best community in Dubai in my opinion. It is a family-oriented community with easy access to all major roads, lots of activities around, big roads and lots of greenery,” says Gaber Nehma Kenger, CEO of GN Homes Real Estate Development, which is behind luxurious developments such as Haven Villas in Jumeriah Village Circle. 2. Dubai South Dubai South’s residential district benefits from its close distance to Al Maktoum International Airport and the Expo 2020 Dubai site, which will have a Metro station by mid-2020. Located in Jebel Ali, the area comprises several projects. The Pulse, a community comprising 1,200 homes, will have town houses and apartments, with sale prices starting from Dh280,000. The Villages and Park Lane will also contain apartments and town houses, with prices starting from Dh300,000 and Dh1.3 million, respectively. According to the developer, Dubai South Properties, the area is expected to have around 50,000 residents by the time the Expo begins in October next year. “Dubai South and Villa Nova [in Dubailand] have both been reported as experiencing two of the highest levels of villa transactions year to date,” says Nick Grassick, managing director of PH Real Estate. He said that the outer- lying communities generally provide the most potential growth opportunity, noting that values have softened to a greater extent than some of the more central Dubai locations. 3. Dubai Creek Harbour The 6-sq-km Dubai Creek Harbour is a mixed-use waterfront development that will contain 48,500 residential units housing around 200,000 residents when completed. It will have a marina, yacht club, two Metro links and 24 hotels, and will be home to the iconic Dubai Creek Tower that’s set to be taller than the Burj Khalifa. With the planned shopping destination of Dubai Square, and offering dazzling views of the Creek Marina, Dubai skyline and Ras Al Khor Wildlife Sanctuary, the development has generated the third-highest sales volume of almost Dh894.5 million in the third quarter, according to Luxhabitat. Prices currently start from Dh870,000 for a one-bedroom apartment, based on figures from Bayut.com. 4. Dubai Hills Estate

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Dubai Hills Estate is a mega development by Emaar in collaboration with Meraas. Situated around an 18-hole championship golf course, the gated community is a part of MBR City and features parks, lakes and open green areas. It offers low-rise apartments, town houses and villas, as well as co-living spaces at the Collective and the chance to run a home-based business at the Executive Residences. In addition, the neighbourhood is getting its own shopping and leisure destination, Dubai Hills Malls. According to Property Finder, prices start from Dh885,888 for apartments at the sub-community of Park Ridge –scheduled for completion in the fourth quarter next year– and Dh2.1 million for town houses at Maple, most of which have been handed over. In fact, Dubai Hills Estate has seen the highest number of handovers in the last six months. 5. Bluewaters The new island destination of Bluewaters by Meraas offers luxurious seaside residences near the world-famous Caesars Palace and Ain Dubai, the world’s tallest observation wheel. Just a short walk along a bridge from The Beach on JBR, the scenic community has fitness centres, swimming pools, basketball courts and retail and dining outlets. Three modes of transport connect the island to the mainland: a direct link to Sheikh Zayed Road, pedestrian access from The Beach opposite JBR, and water transport. Residences on Bluewaters comprise 10 mid- rise towers containing 698 apartments and 17 town houses, with prices starting from Dh1.9 million. The island welcomed its first residents early this year. Source: Gulf News Back to Index

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DEVELOPER TAKES VERTICAL LIVING IN DUBAI TO ‘LOFTY’ HEIGHTS Tuesday, Oct 29, 2019 Think uber-modern and hyper cool. Think spectacular modern branded units with jaw-dropping views, uniquely designed hotel apartments and hotel rooms, infinity pools on the 75th floor at 325 metres, globally famous culinary concepts, a mixology lounge and a signature rooftop day club lounge and nightlife venue. If Dubai has always been synonymous with luxury, then here’s a twist on what you can expect in one of Dubai’s tallest hotels and residences. The Dubai-based luxury real estate developer, World of Wonders Real Estate Development (WOW RED), has partnered with leading international hospitality and entertainment group, sbe, to build the first flagship SLS brand in Dubai and the region. The $550 million (Dh2 billion) SLS Dubai Hotel & Residences will open its doors in the third quarter of next year and is now 73 per cent complete. The project topped out at 75 floors in April. The tower, one of the tallest hotels and residences in Dubai, brings in a whole new concept of luxury living and boutique hospitality to the emirate. Setting standards “This is a new and exciting residential and lifestyle concept that has attracted international attention to Dubai’s growing and maturing real estate sector. It will set the standard for future luxury residential and hotel developments both in the city and across the region,” explains Yahya Alkan, CEO of WOW RED. The reasons for choosing Dubai, Alkan says, is because the emirate “is synonymous with lifestyle brands and SLS matches the luxury that Dubai offers”. Osman Celiker, director of development, WOW RED, says, “By bringing the SLS brand to Dubai, we have added a twist on luxury. Such a 360-degree lifestyle and entertainment brand was missing in Dubai and the offerings are truly unique. Luxury is a concept, it is not something tangible. The SLS brand will change the dynamics of the hospitality and residential sector.” The focus is on lifestyle here and the design of the tower (managed by international architecture firm Aedas and interior design firm Bishop Design) takes inspiration from the module of an Oriel, a distinct aspect of mid-century classic architecture. The building’s façade has a unique character that brings to mind a “honeycomb” where each module of the double-ceiling vertical community is built by rotating the geometry of the units by 45 degrees in four different axes. The result is breathtaking views and a privacy between neighbouring units as well as neighbouring towers. Alkan explains, “We have offered terraces in the units that extend into your living area and make the outdoors a part of your living space.” While the ceilings are 3.1m, the sliding doors are 3m in height and from the terraces residents can enjoy views of the Burj Khalifa, Dubai Creek, Meydan and Dubai Canal. Location The tower is in the Downtown district, strategically located 10 minutes from the Dubai International Airport, 15 minutes from the iconic Burj Al Arab, five minutes from DIFC and the upcoming Meydan One Mall and only three minutes to the Dubai Mall and Burj Khalifa. It offers studios, one-bedroom and two-bedroom lofts, one-bedroom simplex and one- and two-bedroom duplexes.

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“Our unit configuration is incomparable, which makes it very attractive for the buyers. We have studios, one- and two-bedroom duplexes and lofts. Specifically the double-height lofts create extra liveable spaces as well as maximised volume, which is a very important aspect of luxury living,” says Celiker. The average price per square foot here is Dh1,600, a competitive offering for the unique lifestyle it offers. There are 946 units in total – 371 branded residences, 321 hotel apartments and 254 hotel rooms. While the seventh to the 33rd floors are for residential use, the last 10 floors are hotel rooms and the crown of the building or the last six floors (69th to the 75th floor) are built as public areas. Signature lifestyle brands The Crown includes the sbe signature Ciel Spa with seven treatment rooms and Vitamin Bar, salons, a fully equipped gym and two outdoors terraces on the 69th floor. Then there is Fi’lia, the Mediterranean all-day dining restaurant on the 70th floor, the sky lobby and the mixology lounge bar on the 71st, meeting rooms on the 73rd, the award-winning sbe steakhouse Carna by Italian butcher Dario Cecchoni on the 74th and the jewel on the crown, the two infinity pools, and a nightlife venue (Privilege) on the 75th floor. The Crown is set to become the go-to entertainment destination of Dubai with its exceptional food and beverage services and the views. Progress in record time The building has made headlines for its steady progress in record time. Construction started in May 2017, and the floors extending from the seventh to the 75th were completed in less than a year, rising a floor every 5.5 days. It officially topped out in April and is currently the fastest skyscraper building project in Dubai. There is a massive attention to detail onsite and each of the completed units we surveyed on the seventh floor of the building (the - one and two-bedroom lofts and the -one and two-bedroom duplexes) had a high standard of fixtures and fittings, such as custom-made matte lacquered kitchen top and bottom cabinets, state-of-the-art appliances, fully soundproof and thermally insulated rooms, automated curtains and smart climate control systems, among other things. “We are thrilled with the progress being made in the construction of SLS Dubai Hotel & Residences. The building work has been so rapid and smooth, with the tower one of the fastest construction projects in Dubai. The tower is 100 per cent on target to reach its handover deadline by Q3 2020. Being able to maintain this pace of construction is a reflection of our commitment and skills. At the beginning of October, we received a certificate from the Dubai Land Department that has confirmed that we have completed 73.26 per cent of total construction,” says Alkan. International buyers The worldwide appeal of the SLS brand is seen here as well in the diverse and international mix of buyers who have purchased the units. Half of the buyers are from China, with Emiratis making up 15 per cent, Saudis 12 per cent, Indians 8 per cent and the remaining 15 per cent including a mix of Australians, Britons, Pakistanis, Lebanese and South African nationals. The tower has also introduced the loft lifestyle in the UAE for young professionals, couples and smaller families (the two-bedroom has a maid’s room). “We have seen a great appetite from the younger generation. The loft duplexes match their lifestyle. They love the units where there is a living area on the ground floor, and the top area has a bed and en-suite bathroom. It’s like living in a luxury suit,” says Alkan. Some of the duplex lofts even have three glass corners that divide the whole unit in three step ups. You step into the kitchen, step up to the living area and then a floor higher to the bedroom. One of the region’s tallest hotels and residences, the tower boasts a diverse selection of branded residences, hotel apartments and hotel units. SLS will manage and operate the tower’s 321 hotel apartments and 254 hotel rooms, as well as manage the unique luxury F&B, entertainment and lifestyle venues throughout the property. Payments plans

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The developer has also entered into an agreement with Dubai Islamic Bank to provide an exclusive and value- added home finance solution. “Our payment plans for the residential units are flexible,” says Alkan, “whereby you can pay 10 per cent of the unit price in advance, 20 per cent during construction, the other 20 per cent on handover and the balance 50 per cent through a seven-year profit-free payment plan through DIB.” For investors, keeping in mind the unique luxury features of SLS Dubai branded apartments and the expected rental premiums compared to other typical units in the market, the monthly home finance instalments will correspond to less than 35 per cent of their net monthly rental income during the first seven years. This will enable investors to potentially earn more than 45 per cent return on their cumulative equity. Alkan explained that in a market full of real estate opportunities, the need for differentiation for property developers will play a key role in mid to long-term accomplishment targets. “Our formula is simple – no large monthly instalments and maximised returns,” says Alkan. “Now with the extremely low payment schedule investors and end users can own a dream home and enjoy an SLS-branded lifestyle.” Source: Gulf News Back to Index

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DUBAI'S REAL ESTATE TO DRIVE ITS OWN GROWTH IN COMING YEARS Sunday, Nov 03, 2019 real estate sector has all the ingredients in place to drive its growth in the coming years due to timely measures introduced by the government to offset the impact of a slowdown in the global economy, a top industry executive said. Ali Sajwani, general manager for operations at Damac Properties, said the sector will benefit from a mix of activities like the upcoming Expo 2020 Dubai, pro-investment government initiatives and the city's long-held reputation as a preferred investment destination. "For developers, it is vital to align their strategies to the long-term aspirations of the city. We need to build for the future, and that takes a deep understanding of what customers and investors are looking for," Sajwani told Khaleej Times in an interview. The 27-year old scion has been deeply involved in the family business from a young age and currently leads a number of internal working groups at Damac, which oversee international developments, Damac Maison Hotels & Resorts, as well as quality audit and quality control. Present state of property Sajwani said the best way to summarise the state of Dubai's real estate sector is that the industry is maturing. Considering the cyclical nature of the industry, the correction in prices has further amplified the market's appeal to investors with more than half the real estate transactions in the first five months of 2019 coming from new investors. He said the optimism around an expected uptick in real estate has prompted many investors to enter the market. Moreover, with the government's efforts to transform Dubai into a long-term destination for residents, many end- users are finding this to be the right time to make their dream of owning a home in Dubai a reality. "We can already see solid signs of recovery as property prices in certain areas start picking up. The market remains favourable for buyers, and this year, residential transactions reached a four-year high during the summer season. With the countdown to Expo 2020 Dubai beginning in October, we are very optimistic about the industry's growth in the coming few years," the young entrepreneur said. Expo 2020 impact To a question, he said Expo 2020 has already helped in furthering Dubai's presence as a word-class global city. With over 20 million visitors expected to come to Dubai by 2020, the Expo is expected to provide a significant boost to the various sectors including the hospitality sector. "As we draw closer to the event, and with progressive government intervention and reforms, we are already seeing a significant increase in foreign interest and investments. We hope that the positive impact of the event will be felt across all sectors of the economy," he said. Market oversupplied

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Sajwani, an entrepreneur with a diversified portfolio, said the market is oversupplied for the moment, but "we must remember that we are approaching the end of a softer real estate market cycle", and the market is witnessing a lot of encouraging activity. "What the industry should now focus on is creating the right kind of supply that is aligned with what investors and buyers are looking for. The city saw a sharp increase in real estate transactions and investments in the first five months of 2019 driven by competitive product offering and positive initiatives by the government such as the introduction of long-term visas for professionals and investors," he said. "In the first half of 2019, Dubai registered a 135 per cent growth in FDI, which is a sure sign of great things to come. We are going to see more jobs and a greater influx of people entering the city, which will hopefully lead to an increase in demand for real estate," he added. Right balance To a question, Sajwani said the establishment of the Higher Committee for Real Estate is also a positive move that will encourage investor confidence. "The committee will play a key role in creating balance in the supply coming into the market and in setting an agenda for the long-term growth of the sector. The development of a strategic plan for upcoming projects will help align the industry to Dubai's long-term objectives. He said the initiative will boost investors' confidence and pave the road ahead for Dubai's real estate sector. The impact of the Higher Committee can already be seen with Dubai witnessing a 134 per cent rise in sales transactions within days of the committee's establishment, he said. About the new Dubai law for joint real estate ownership, he said the new regulation that has been issued to regulate the joint ownership of real estate in Dubai will add to the reputation of transparency that Dubai's real estate sector is well known for, and it will ensure the rights of all parties and serve as a significant boost for investors' confidence. 40K units in pipeline Sajwani says 2019 has been a busy year for Damac with the commencement of handovers of key projects such as Ghalia - its first Shariah-compliant development - and the Claret cluster at Akoya. "We have handed over close to 1,500 units this year and awarded contracts worth nearly Dh500 million in the first half of the year for the completion of key projects," he said. "Earlier this year, we also launched Zada, our luxury residential project overlooking Dubai Water Canal in Business Bay." So far, Damac has delivered close to 26,000 units since its inception in 2002. "We have close to 40,000 units across residential and hospitality projects that are in various stages of the development, and our focus will continue to be on execution. We are also always on the lookout for lucrative opportunities in local and global markets," he said. To a question about raising funds through bonds or sukuk, he said Damac has always focused on maintaining liquidity and cash flow. "Right now, we are focused on keeping our pace of deliveries and paying down debt. The requirement of raising funds through sukuk or bonds are evaluated by our team of financial experts and acted upon accordingly," he said. Source: Khaleej Times Back to Index

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CHINESE INVESTORS' INTEREST IN DUBAI'S REAL ESTATE SECTOR GROWING Saturday, Nov 02, 2019 Kashif Ansari, Group CEO of property firm IQI Global; and Diana Magariu, founder of Key One at the agreement signing ceremony (Supplied) Dubai - Interest from the Chinese investors into Dubai's real estate sector is growing due to attractive valuations following persistent decline in property prices over the last few years, according to a new study. Analyzing property demand trends of Chinese consumers as recorded over the past seven years by property portal by Juwai.com, Dubai stands out as one of the top destinations for Chinese investors. Recently, Juwai.com was merged with global property firm IQI Global. Last month, IQI Global signed a deal with Dubai-based Key One Realty Group, a leading real estate firm in Dubai, to help the Chinese investors tap Dubai's property sector. Kashif Ansari, Group CEO of property firm IQI Global, said, hundreds of inquiries are received every week from different Chinese customers who are seeking to invest in Dubai's real estate sector. "Dubai has got a lot of prominence among the Chinese investors over the last few years, thanks to massive promotions launched for Expo 2020. There is a lot of awareness and knowledge about Dubai now among the Chinese investors, hence, they inquire about the investment opportunities in the emirates, especially in the real estate sector," Ansari said. "With our success in China and Asia, we are confident of being able to serve Indian clients as well in their search for lucrative global property investments," he added. Recently, IQI announced its alliance with Dubai-based property firm Key One Realty Group to serve the increasing demand from the Chinese and other markets for the emirate's property. Omer Ali Khan, director of IQI Dubai, said Dubai property market is attracting foreign investors' interest owing to its attractive price. Source: Khaleej Times Back to Index

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NO RENT HIKE FOR THREE YEARS IN DUBAI, DRAFT LAW PROPOSES Saturday, Nov 02, 2019 It is also proposed that the owner or his representatives cannot receive commission or any other fee from the tenant. A new draft rental law has proposed that rents of apartments in Dubai should be fixed for the first three years of signing the contract. It is also proposed that the owner or his representatives cannot receive commission or any other fee from the tenant to cover administrative or any other cost while signing or renewing the contract, Arabic daily Emarat Al Youm reported. The draft, which may be tabled for approval of the supreme legislation committee in Dubai, says that the owner may now, for any reason, increase rent during the first three years of the signing of the contract. Source: Khaleej Times Back to Index

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REALTY A KEY COMPONENT OF ABU DHABI ECONOMY Saturday, Nov 02, 2019 Real estate is one of the important sectors in Abu Dhabi's economy in terms of contribution to the GDP and FDI, top officials said in the capital. Rashed Al Beloushi, under-secretary at the Abu Dhabi Department of Economic Development, said the real estate sector, which has seen high annual growth rates, is important part of the UAE's vision to diversify economy away from oil. "There are many non-oil sectors we rely on like manufacturing, renewable energy, aerospace, banking and finance, information and communication technology, tourism and real estate. Over the past five years, we have experienced average growth rate of 4.6 per cent in Abu Dhabi," Al Beloushi said during his keynote speech at the recent International Real Estate and Investment Show in Abu Dhabi. "The value of real estate transactions amounted to Dh31 billion in the first half of 2019, through 10,000 transactions. There were 6,374 registered sales transactions worth Dh12.5 billion, and 3,712 mortgage transactions worth Dh18.5 billion." Reflecting on last year's performance, he pointed out that real estate and construction, with an output of Dh114.4 billion, contributed 14.4 per cent of Abu Dhabi's GDP by the end of 2018. "The portion of real estate in non-oil GDP is 28.2 per cent. FDI in real estate and construction accounted for Dh36 billion, which is 34.4 per cent of total stock of foreign direct investment in Abu Dhabi by the end of 2018." Meanwhile, Majed Ahmed Al Jaberi, acting executive director for the real estate sector at the Department of Urban Planning and Municipalities, said the show was a platform to exchange experiences and build strong partnerships with all the stakeholders. "Our strategy is to raise awareness about strengths of the real estate sector. We are here to provide essential information for investors, real estate developers and landowners. We are aiming to reach out to our stakeholders and advance the transparency of Abu Dhabi's real estate's business environment," he added. Buffett's agency coming soon Meanwhile, legendary investor Warren Buffett's real estate brokerage services is expanding in the UAE with a new office set to open in Abu Dhabi within six months. Despite concerns of oversupply and slowdown, Berkshire Hathaway HomeServices Gulf Properties CEO Phil Sheridan felt there is 'great value' in investing in Dubai and Abu Dhabi. He counted the government's booster doses like fee waiver, deferred payment plans, tax structures, visa norms, favourable pricing, robust infrastructure and attractions - all aspects that added value to the UAE market. "What our leadership team in the US identified was that the UAE is a destination of real value. As the Global Real Estate Bubble Index recently published illustrated that Dubai and, indeed, Abu Dhabi offer good value," Sheridan said at the International Real Estate and Investment Show. Berkshire Hathaway HomeServices has more than 1,400 offices and 50,000 agents in the US. Its first office in the Middle East was opened in Dubai earlier in May. Sheridan noted the firm will see 'accelerated growth' throughout

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the region in coming years. "We are committed to opening a branch in Abu Dhabi within the next six months. We want to make Abu Dhabi as much a success as we have already enjoyed in Dubai where we have 40 agents with

15 support staff. And that's good in first six months. We will have a celebratory launch on January 31." Sheridan pointed out that Berkshire Hathaway's Class A shares have averaged an annual growth of 19 per cent to shareholders since 1965 compared to 9.7 per cent from the S&P 500. "If you had invested $7,100 in June of 1990, on October 2019, it will be $311,640," he added. Source: Khaleej Times Back to Index

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SMART DUBAI TO PROMOTE USE OF ADVANCED TECHNOLOGIES IN REAL ESTATE Monday, Oct 28, 2019 Smart Dubai first announced plans to partner with Property Finder in April 2019 as it launched the Dubai Data Private Sector Strategy and Policy, with the objective of creating new data products for the vital economic sector. Younus Al Nasser, Assistant Director General of Dubai Smart City Office, signed the Memorandum of Understanding (MoU) on behalf of Smart Dubai, with Michael Lahyani, CEO of Property Finder FZ-LLC "Smart Dubai has a mandate to transform Dubai into a full-fledged smart city," said Younus Al Nasser. "With that in mind, we have committed ourselves to introducing advanced technologies into every sector and redesigning every aspect of people's lives to make it easier and ensure their happiness. This agreement we are signing with Property Finder - a true leader in the real estate industry - will help bring more smart-city technology to the people of Dubai as they go about finding their perfect home in the city." "Bringing the public and private sectors together is essential to our strategies," Younus Al Nasser continued. "It is crucial that we all work together to come up with innovative use cases for the city data we are compiling. By bringing advanced data technologies into the real estate sectors, Smart Dubai and Property Finder look forward to leading the region in terms of real estate, developing in-depth studies, formulating data-driven plans for the future, and implementing ground-breaking use cases." For his part, Michael Lahyani, said: "By utilising the various data sets from Smart Dubai and coupling them with our rich data sets, we will be able to create tools and offer more data to the consumers, which is needed to make better informed decisions during their real estate journey." The MoU stipulates that the two parties will work together to demonstrate the value from public and private sector data assets, by creating advanced real estate data products, in addition to conducting analysis and thought leadership projects. Furthermore, the agreement seeks to showcase the power of data science and the potential that can be achieved when cross-sector data teams work together. Source: Khaleej Times Back to Index

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NEW DIRECT, INDIRECT TAXES TO BE IMPOSED IN UAE Sunday, Nov 03, 2019 A mix of new direct and indirect taxes will be levied in the UAE and GCC in the near to medium term because oil prices are expected to remain low, necessitating the creation new sources of revenues to fund budgets, say tax experts. They said new taxes could be levied on wealth and property, as well as corporates, while income tax will also surely come but it will be introduced at the far end in the UAE and GCC. More importantly, new taxes will come in phases rather than being implemented in one go.

"Looking at the budgets and oil prices, GCC governments will have to introduce new taxes but they cannot bundle it in one go. They have to break down slowly. For example, in Kuwait, they mentioned about corporate tax and

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then on the far end it will be income tax," said Dr Rasheed Al Qenae, head of tax at KPMG Middle East and South Asia and managing partner at KPMG Kuwait.

He said the GCC region is at the elementary stage of tax education and the governments will have to look at other sources of funds. "In 10 years, we expect wealth, property and asset taxes can be levied in the region because it is not that the governments want to impose but because they will have to. They will come gradually and take time. Now governments are focused on introducing value-added tax across region. Once that is stabilised, they will think about others," Al Qenae said in an interview with Khaleej Times. He said luxury tax could be also be introduced in the medium term. "First it is going to be VAT and then on top of that will be luxury tax. This is very clear in developed markets and it is called luxury tax," he said, adding that the contribution of taxes to the GCC budget will substantially increase in the next five to 10 years. The UAE, Saudi Arabia and Bahrain has levied 5 per cent VAT on goods and services. The UAE has also levied 100 per cent tax on tobacco and energy drink and 50 per cent on carbonated drinks. From December 1, this sin tax will be expanded to shisha and other drinks that will contain sugar. Jihad Azour, director for the Middle East and Central Asia Department at the IMF, also called on the regional governments to diverse revenue sources including introduction of new taxes. The fund had earlier asked Riyadh to double VAT to 10 per cent. Jane McCormick, global head of tax and legal for KPMG International, said it seems inevitable that VAT is likely to rise for a lot of reasons. "It is tax easy to collect. You can automate a lot of processes." Surandar Jesrani, managing partner and CEO of MMJS Consulting, said GCC governments do recognise revenue from oil would be under immense pressure over the next few years. "The introduction of GCC-wide VAT and excise laws may only be a prelude to introduction of further tax measures in line with global initiatives," Jesrani said. "I believe that the advent of such further tax laws are on the horizon for UAE and Bahrain in the form of corporate taxes, withholding taxes and retention regimes since a majority of GCC member states do have direct taxes through corporate and withholding taxes." Jesrani believes that regulating production and sale of cooked food, such as fast food, may pose significant administrative challenges. However, extension of laws to include such products within the ambit of excise cannot be ruled out. In the space of direct taxes, Rajiv Hira, director at RHMC Management Consultants, expects federal level corporate income distribution tax - i.e. tax on distribution of income/profit, dividend, etc - could be levied in the UAE with a larger and expanded tax base. "Corporate tax creates a stagnant source of income at the country level and facilitate in uplifting the compliance environment with international best practices. We should be expecting the rate of tax in the range of 5 to 10 per cent, to maintain the competitive advantage and also align with global environment for growth and sustainability," Hira added. "In the space of indirect tax, we should be expecting an expansion of industry [based on global presence], for example, gaming, racing, exotic clubs, etc, and resultant expansion of sin tax on those products/services. It's too early to say by when, however this is a balancing act of being global and connected with the roots," he added. Source: Khaleej Times Back to Index

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HOW VISA REFORMS BOOST UAE ECONOMY Sunday, Nov 03, 2019 The UAE is led by a vision to build a knowledge-based economy and this is affirmed by a slew of measures it has undertaken to facilitate entrepreneurs in the country as well as foreign investors. The series of visa reforms initiated by the government will enhance the UAE's attractiveness among expats, encouraging knowledge workers to pursue longer stints in the country. The presence of rich expat talent will persuade foreign companies to enter and operate from the UAE. Typing centres in Dubai are seeing an unusual rush for investors applying for five- and 10-year visas. "We have lot of enquiries for five- and 10-year visas, which are being issued from immigration and land departments only. Investors are showing more confidence and they are willing to invest more in the UAE, which will assure surge in the cash flow," Firose Khan, manager of Arabian Business Centre, said. The UAE government has opened up visas to welcome foreign investments and boost trade ties as it serves the Mena region as the gateway for the same. The Federal Authority for Identity and Citizenship issued the first Golden Residence Permit in Abu Dhabi, as part of the Investors Permanent Residence System implemented under a UAE Cabinet resolution, which aims to help investors, entrepreneurs and qualified individuals who meet its criteria. The authority stated that it launched the programme to assist eligible investors numbering 6,800, as well as brief them about the new system and its features. The first batch of 6,800 investors with Dh100 billion worth of investments were to be granted the Gold Card. The UAE announced that it would grant five- or 10-year residency visas to investors, entrepreneurs, specialists in the medical, scientific, research and technical fields, and 'outstanding' students to "facilitate business and create an attractive and encouraging investment environment" in the country. The visa benefits also extend to the wider family (spouse and children). The government also introduced long-term culture visas for the artists in early October 2019. Henri Hazougi, managing director of Business Setup Consultants, said: "The newly-introduced types of visas have opened up new investment opportunities and supported mainly the startup and micro business owners who are looking for new market and opportunities." Dubai and Abu Dhabi have been at the forefront to launch new strategies that will help evolve, the UAE as a most progressive nation. On average, the Department of Economic Development issues 2,000-2,500 new licences in Dubai. However, the launch of the Virtual Company Licence is expected to attract more than 100,000 companies in the long term and it should help strengthen the knowledge economy of Dubai. The new initiatives are likely to attract more private sector investment and will help in diversifying the economy. "Dubai has launched the Virtual Company Licence, which has helped it take a giant leap forward in business regulation and ease of doing business. The new licence will help entrepreneurs have bank accounts, enable document signing and submission digitally, secure e-residences and will be focused on creative industries, technology and services. The Virtual Company Licence is part of the virtual city programme and will be applicable to only residents of countries that have implemented the Convention on Mutual Administrative Assistance in Tax Matters and share tax information about their citizens and residents," said Vijay Valecha, chief investment officer of Century Financial.

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GCC governments can generate an incremental of $3.4 billion annually by aligning investments in the leisure and entertainment sector with consumers' needs, according to a new insight by the Ideation Center, the think tank for

Strategy&. GCC countries are investing significantly to develop leisure and entertainment sectors to improve quality of life, celebrate national identities and diversify national economies. Preferred destination for trade and investment The UAE has always stood out as the preferred destination for foreign investments and trade in the Mena region due to its progressive policies. The introduction of new visa rules would further enrich its status, says an expert. MR Raghu, managing director of Marmore Mena Intelligence, said the new visa regime will be a boost to the non- oil economy, bringing further foreign investments into the country. "As these investments are expected to go into the private sector, it will increase business competitiveness, create more jobs and help in diversification of government revenues from oil in the long run," he said. Expats, if encouraged to stay longer, they are more likely to invest or spend their income locally rather than remitting it back to their home country, thereby increasing consumer spending. "As consumer spending increases, tax revenues from VAT would also be boosted. Tourism and hospitality, which is one of the key non-oil industries in the country is likely to see higher traction, with new visa regulations being friendlier for tourists. Retail is another sector that is expected to benefit from the higher consumer spending," added Raghu. Reforms expected to attract, retain top talent The various measures taken by the UAE government to boost Emiratisation in key economic sectors while embracing the global talent has encouraged businesses to scout and retain top talent. Krishnan Ramachandran, chief executive officer of Barjeel Geojit, said the UAE has rolled out a series on visa reforms and initiatives to attract and retain the best businesses and talent in the country. "Businesses, professionals, experts, investors, students and families have been a beneficiaries to the all-inclusive visa concessions extended to UAE residents across the economic and social strata spectrum. These proactive measures has enabled business confidence to improve and is likely to see a quantum jump in investments into the UAE," he said. The new measures, along with the recent reforms, allowing 100 per cent foreign ownership in about 122 activities will see sustainable long term capital investments into the UAE. "The long-term growth strategy will position the UAE, globally as an attractive destination for businesses and services. These initiatives will provide the much needed fillip to the UAE economy and contribute to its overall growth," he added. Cultural attractions to drive int'l and domestic tourism Domestic consumers are willing to significantly increase their spend on leisure and entertainment if they are made aware of the variety of cultural and entertainment options available. Therefore, it is important for governments to encourage the development of various categories from museums and galleries to live performances in theatres and concert halls as well as theme parks and accessible neighbourhood entertainment. Tourists, residents and citizens' visits to these attractions will provide direct revenues to the attractions themselves as well as indirect benefits in increased spend on travel services, accommodation, food and beverage and retail.

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Karim Sarkis, senior executive advisor at Strategy& Middle East, said cultural tourism is an established means of attracting visitors to a country by highlighting its offerings.

"Cultural attractions therefore need to be marketed creatively to entice a broader audience and they need to offer edutainment experiences that are memorable. Cultural tourists tend to spend more than the average tourist and on services such as accommodation, F&B, so they generate direct and indirect economic benefit and help create jobs in the cultural attractions and in their supporting services," he said. Source: Khaleej Times Back to Index

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NON -OIL SECTOR SET TO DRIVE UAE GROWTH Wednesday, Oct 28, 2019 Non-oil sector will drive UAE growth in years to come due to the government’s economic diversification efforts introduced in recent past, according to the International Monetary Fund. In latest projection for the UAE economy, the Washington-based financial institution said non-oil sector growth is set to overtake the oil in 2019 and 2020 as the economic reforms started paying the dividends. The IMF’s latest projections showed that the UAE’s non-oil sector will grow from 1.3 per cent in 2018 to 1.6 per cent in 2019 and 3.0 per cent in 2020. Consequently, the oil GDP growth is forecast to slow down from 2.8 per cent in 2018 to 1.5 per cent this year and 1.4 per cent next year when Expo-led non-oil sectors such as tourism, aviation, retail, hospitality, real estate and construction will give fillip to the economy. In addition, exports and re- exports will also greatly contribute to the country’s economy. Thanks to stronger non-oil growth, the IMF sees UAE’s growth at 2.5 per cent for 2020 as compared to 1.6 per cent this year. These numbers are subject of revision as the IMF team is currently reviewing the performance of the UAE economy. The IMF predicts that the UAE’s oil output will continue to increase from 3.02 million barrels per day (bpd) last year to 3.10 million bpd in 2019 and 3.17 million bpd next year. Jihad Azour, director for Middle East and Central Asia Department at the IMF, said over the last few years, oil price has become more volatile and even with acceleration of shocks, it is not really changing its behaviour patterns. “We are living in an environment, where oil prices will be more volatile and prospects of recovery are limited. Volatility in oil prices affects the regional government’s ability to do proper projections for their economies. In the current context, the encouraging signs is that despite the volatility in crude prices, non-oil growth is growing steadily but it has not reached the level of first 5 years of this decade,” Azour told media in Dubai on Monday. Oil prices, according to IMF, have swung from $55 to $75 a barrel since the start of the year. However, Azour noted that reforms have started to pay off in region’s several countries despite volatility in oil prices and growth slowdown in the oil sector. “We are encouraged by reforms of the GCC countries, performing better in the World Bank’s ease of doing business ranking,” he said. Trade war impact He said direct impact of US-China trade war was limited initially but second round effect is getting through — mainly from the region’s trade partners. “The region trades with Asia, Europe and Africa; we see expectations of trading partners’ growth decelerating, which means exports growth will be affected,” Azour said. He called on the regional governments to diversify their revenues through tax and non-tax sources. IMF said in its report that short-term growth will remain subdued for oil exporters in the region due to volatile oil prices, precarious global growth and high fiscal vulnerabilities.

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As economy slows down, IMF predicts negative inflation in UAE this year at -1.1 per cent and 2.2 per cent for 2020. While the Emirates’ nominal GDP is expected to slip from $414.2 billion in 2018 to $405.8 billion this year. But it will recover again next year to $414 billion in 2020 on the back of non-oil sector growth. For the GCC, the GDP grew 2.0 per cent in 2018 but it slowed down to 0.7 per cent in 2019. It is a cut 1.4 per cent from its April 2019 forecast. For 2020, the GCC is projected to grow 2.5 per cent, a cut of 0.3 per cent from its April 2019 forecast mainly due to oil production cuts in line with Opec+ agreement. Nasser Saidi, president of Nasser Saidi & Associates, said foreign direct investment (FDI) is coming into the region just to exploit natural resources as these are highly capital intensive industries but it is not job creating industries. “Given the low oil prices, there is no way the GCC countries themselves could finance the infrastructure projects worth over $1 trillion out of their budget resources. They need to attract private capitals to fund infrastructure through public-private partnerships and FDI. I hope Aramco’s IPO proceeds successfully which will encourage other regional countries to take the route of privatisation in order to attract capital and create jobs,” Saidi side during a panel discussion at the launch of the IMF report. Khatija Haque, head of Mena Research at Emirates NBD, said the UAE has seen less fiscal stimulus than it was desired this year. She said there is a possibility of room for governments to provide extra stimulus to kick start non-oil growth. Source: Khaleej Times Back to Index

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LOANS MAY GET CHEAPER IN UAE AS CENTRAL BANK CUTS INTEREST RATES Thursday, Oct 31, 2019 The central banks of the UAE, Kuwait, Bahrain and Saudi Arabia late on Wednesday cut interest rates following the US Federal Reserve's decision to reduce rates by 25 basis points earlier on Wednesday. The cut in interest rates will reduce borrowing cost for personal loans, auto loans and home loans etc. All these GCC countries' currencies are pegged to the US dollar, hence, they follow the Fed's monetary policy for interest rates. The Central Bank of the UAE (CBUAE) will lower interest rates applied to the issuance of its Certificates of Deposits from Thursday, October 31, 2019, in line with the decrease in interest rates on US dollar, following the Federal Reserve Board's decision to decrease the Federal Funds Rate by 25 basis points at its meeting. The Repo Rate applicable to borrowing short- term liquidity from CBUAE against Certificates of Deposits has also been decreased by 25 basis points. Certificates of Deposit, which CBUAE issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system. The Federal Reserve on Wednesday cut interest rates for the third time this year in a move to ensure the US economy weathers a global trade war without slipping into a recession, but signaled its rate-cut cycle might be at a pause. Kuwait cut its discount rate by 25 basis points to 2.75 per cent from 3 per cent after staying pat in July and September when other major Gulf central banks followed the Federal Reserve. The decision aims to "reduce the cost of borrowing in the Kuwaiti dinar, maintain a comfortable margin for the Kuwaiti dinar, and prove a supportive environment for investment," the central bank said in a tweet. The Saudi Arabian Monetary Authority (SAMA) cut its repo rate, used to lend money to banks, to 225 basis points from 250 bps, and the reverse repo, the rate at which commercial banks deposit money with the central bank, by the same margin to 175 bps. Bahrain's central bank, which had avoided a rate cut in September, cut all its key rates by 25 basis points. It cut its one-week deposit facility to 2.25 per cent, its overnight deposit rate to 2 per cent, its one-month deposit rate to 2.6 per cent. It cut its lending rate to 4 per cent from 4.25 per cent. Source: Khaleej Times Back to Index

ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

With over 30 years of Middle East experience, Asteco’s VALUATION & ADVISORY Valuation & Advisory Services Team brings together a Our professional advisory services are conducted by group of the Gulf’s leading real estate experts. suitably qualified personnel all of whom have had extensive real estate experience within the Middle Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, East and internationally. Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local Our valuations are carried out in accordance with the markets but also enables us to undertake large Royal Institution of Chartered Surveyors (RICS) and instructions where we can quickly apply resources to meet International Valuation Standards (IVS) and are clients requirements. undertaken by appropriately qualified valuers with Our breadth of experience across all the main property extensive local experience. sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth The Professional Services Asteco conducts throughout of research that supports our decision-making. the region include:

• Consultancy and Advisory Services John Allen BSc MRICS • Market Research

Executive Director, Valuation & Advisory • Valuation Services

+971 4 403 7777 [email protected] SALES Asteco has established a large regional property sales division with representatives based in UAE, Saudi Jenny Weidling BA (Hons) Arabia, Qatar and Jordan. Manager, Research & Advisory Our sales teams have extensive experience in the +971 4 403 7789 negotiation and sale of a variety of assets. [email protected] LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients.

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Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy Services to residential, commercial and mixed use communities throughout the GCC Region.

BUILDING CONSULTANCY The Building Consultancy Team at Asteco have a wealth of experience supporting their Clients throughout all stages of the built asset lifecycle. Each of the team’s highly trained Surveyors have an in- depth knowledge of construction technology, building

pathology and effective project management methods which enable us to provide our Clients with a Comprehensive Building Consultancy Service.