News Brief 04 Sunday, 27 January 2019

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NEWS BRIEF 04 SUNDAY, 27 JANUARY 2019

RESEARCH DEPARTMENT

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR OVER 30 YEARS © Asteco Property Management, 2019 asteco.com

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REAL ESTATE NEWS

UAE / GCC / MENA GCC ECONOMIC GROWTH TO DRIVE MENA EXPANSION DESPITE IRAN CONTRACTION SAUDI HOTEL INDUSTRY TO BOOM ON RELIGIOUS AND BUSINESS TRAVEL ALMOST $30BN IN HOTEL CONSTRUCTION CONTRACTS TO BE AWARDED BY 2023 MIDDLE EAST PROVES MAGNET AS GLOBAL TOURISTS RISE TO 1.4BN IN 2018 UAE'S SAFESTWAY SUPERMARKET BRAND SOLD MASTER PLAN APPROVED FOR NEW SAUDI ECO-TOURISM MEGA PROJECT NEW VISA REFORMS TO SPUR UAE PROPERTY DEMAND FROM INVESTORS HOW MUCH SHOULD I BORROW FOR MY MORTGAGE? REAL ESTATE INVESTMENT TRUSTS LOWER ENTRY BARRIER FOR INVESTORS SAUDI ARABIA UNVEILS INVESTMENT PRINCIPLES AS IT COURTS FOREIGN INVESTORS UAE RETAIL GIANT OPENS NEW $117M OMAN MALL BAHRAIN TO GET 'SIGNIFICANT' GDP BOOST FROM TOURISM: EXPERT OMAN TOURISTS FALL 2.8% IN 2018 DESPITE RISE IN HOTEL REVENUES MIDDLE EAST MERGER AND ACQUISITION DEALS VALUE CLIMBS 50% BOOSTED BY MEGA TRANSACTIONS PLANS REVEALED FOR WORLD'S LARGEST CROWNE PLAZA HOTEL IN MAKKAH LUXURY HOTEL BRAND FAIRMONT MAKES DEBUT IN RIYADH TIME DEVELOPERS START THINKING BEYOND POST-HANDOVER PLANS UAE ECONOMY SET FOR 3.8% ANNUAL SURGE UNTIL 2023

DUBAI TOP DUBAI BROKER TARGETS CHINESE REAL ESTATE INVESTORS IN 2019 WORLD'S LARGEST SPORTS MALL ON TRACK FOR Q1 2020 LAUNCH IN DUBAI DUBAI'S RTA LAUNCHES SIX NEW BUS ROUTES

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REAL ESTATE NEWS

WALDORF ASTORIA DIFC TO OPEN IN SPRING 2019 DUBAI PROPERTY DEVELOPERS PUT BOND PLANS ON HOLD: SOURCES DUBAI'S ECONOMIC GROWTH BETWEEN ILLUSIONS OF EXPECTATIONS AND FACTS EMAAR SAYS SET TO OPEN NEW DUBAI MALL LINK BRIDGES HANDOVER BEGINS AT $141M DUBAI MARINA WATERFRONT PROJECT DUBAI RULER ORDERS HATTA TOURISM PROJECTS TO BE FAST-TRACKED PRIME RESIDENTIAL OPPORTUNITIES IN DUBAI SHOULD YOU BUY OR RENT A PROPERTY IN DUBAI? BUY DUBAI HOUSE, GET FREE TRADE LICENCE DUBAI AMONG 10 BEST CITIES TO LIVE IN 2019 DUBAI SOUTH INVESTING DH2BN IN EXPO 2020 HOMES DISTRICT, CHIEF EXECUTIVE SAYS HOMEFRONT: CAN I ASK FOR A RENT REDUCTION IF MY VILLA IS ALREADY BELOW MARKET RATE? MORE JOBS AND SOLAR-POWERED VILLAS TO CROP UP IN UAE'S GREEN ECONOMY DAMAC CHAIRMAN SAYS 2018 AND 2019 WILL 'NOT BE EASY' RISE OF A NEW CITY NEAR EXPO SITE: DUBAI SOUTH TO ATTRACT 50,000 RESIDENTS DUBAI PRIME PROPERTY SALES FALL 11% TO $10.6BN IN 2018 DEVELOPER BREAKS GROUND ON $272M MIXED-USE PROJECT IN DUBAI NEW FERRY SERVICE LAUNCHED TO LINK DUBAI SHOPPING MALLS HOTEL GIANT INKS DEAL TO DEVELOP NEW UPMARKET DUBAI PROPERTY PANTHEON GROUP TO INVEST DH600 MILLION IN DUBAI DUBAI DEVELOPER PHASES OUT LAUNCH TO TEST MARKET DEMAND CANADA CONFIRMS EXPO 2020 PARTICIPATION

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REAL ESTATE NEWS

ABU DHABI ALDAR PLANS TWO NEW DEVELOPMENTS AMID STRONGER MARKET SENTIMENT SERVICE FEES REDUCED BY 50 PER CENT IN UAE ALDAR OFFERS MID-MARKET PLOTS TO EXPATS FOR THE FIRST TIME ABU DHABI VILLAS BUCK TREND OF FALLING RENTS, POST 1.5% INCREASE

INTERNATIONAL ASKING PRICES FOR LONDON HOMES FALL TO 2015 LOWS HONG KONG HOUSING RANKED WORLD’S LEAST AFFORDABLE FOR 9TH YEAR IMF CUTS GLOBAL GROWTH OUTLOOK FOR 2019 WORLD TOURIST NUMBERS HIT 1.4 BILLION IN 2018, TWO YEARS AHEAD OF FORECAST DUBAI BILLIONAIRE, FOUNDER OF DAMAC PLANS TO INVEST $1.3 BILLION IN LONDON GLOBAL CEOS MORE PESSIMISTIC ON ECONOMIC GROWTH IN 2019, SAYS PWC 'INDIA TO GROW 7-7.5% OVER NEXT FEW YEARS'

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ALDAR PLANS TWO NEW DEVELOPMENTS AMID STRONGER MARKET SENTIMENT Sunday, January 20, 2019 Aldar Properties, the Abu Dhabi real estate developer, plans to unveil two new projects in the first half of this year as it responds to an increase in investor activity fuelled by initiatives such as the emirate’s Dh50 billion stimulus, its chief executive said. The schemes to be announced include a mix of residential and commercial units and land plots for development by third-party investors on Yas and Saadiyat islands, and elsewhere in the emirate, Talal Al Dhiyebi said yesterday. “Last year, people were seeing value in the market but were cautious and preferred to wait, whereas now they are seeing opportunities and want to capitalise on them,” he said. “We are working on several projects to suit current demand.” Aldar expects to finalise research in the next 30 to 60 days to inform design and cost elements, and exactly which products to bring to market. The first development is set to be unveiled at the annual Cityscape exhibition in Abu Dhabi in April, he said. In particular, Aldar sees strong demand for affordably priced plots of land – a previously untapped segment of the market. Last week, the company unveiled its Alreeman project, a 2.8 million square-metre development in Al Shamkha featuring residential and commercial land plots with prices starting at Dh690,000 for villas and Dh4.69m for commercial areas. On Saturday, Aldar said it secured Dh1.6bn of sales at Alreeman, in a statement to the Abu Dhabi stock exchange, where its shares are traded. Most of the buyers are Arab expatriates or UAE nationals, Mr Al Dhiyebi said. “There has always been a will to buy land and build on it – it’s a cost-effective way of acquiring real estate – but people never had access to plots at these kind of prices and with flexible payment plans. “We will certainly be doing more of this.” The successful launch of Alreeman is a “very encouraging” start to 2019, he said, following a tough few years for UAE real estate in the wake of tumbling oil prices since 2014, which muted economic growth for many regional markets until last year. Property sales and rental values have declined steadily as cost-conscious residents seek cheaper deals and an influx of new supply keeps prices modest. However, a pickup in global GDP growth last year, together with specific national initiatives including Abu Dhabi’s Dh50bn fiscal package intended to encourage investment in the emirate, is starting to raise positive business sentiment. Mr Al Dhiyebi said there remain “pockets of very strong demand” despite price corrections in many areas of Abu Dhabi last year, and that Aldar “will continue to serve all segments of the market”. Within its commercial portfolio, Aldar is recording high occupancy rates of around

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90 per cent and tenants have begun requesting larger floor plans, indicating a rise in corporate hiring activity, he said.

In addition, state-owned oil giant Abu Dhabi National Oil Company has announced a string of deals and expansion plans over the past six months, which could further boost the emirate’s property market. Around 50 to 60 per cent of Aldar’s proposed new residential supply falls in the affordable category, while around 30 per cent will be in the premium (mid-to-upper) segment, and 5 per cent is luxury product, mainly on Saadiyat Island. There are no plans to raise further financing in the first half of this year, following the issuance of Aldar’s $500m sukuk in September and an extension of its existing debt facilities, Mr Al Dhiyebi added. “We are very well financed for our new projects,” he said. Source: The National Back to Index

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GCC ECONOMIC GROWTH TO DRIVE MENA EXPANSION DESPITE IRAN CONTRACTION Monday, January 21, 2019 The UAE, Saudi Arabia and Egypt will drive economic expansion in the Middle East and North Africa in 2019, even as recession in Iran weighs on the region’s overall growth, Fitch Solutions said in a report yesterday. In the year ahead, a forecast of 4.1 per cent economic contraction in Iran, compared to 0.5 per cent in 2018, will act as the biggest drag on Mena growth, according to the unit of Fitch Group. “We believe the Iranian economy entered into recession in 2018 as the reimposition of US sanctions spurred investment outflows, oil export reductions, rial weakness and soaring inflation,” the report said. “This recession looks set to deepen in 2019 as sanctions remain in place and likely tighten further.” Last year, prior to reimposing sanctions, the US also withdrew from a nuclear deal struck between the US, UK, France, China, Russia, Germany and Iran in 2015. Mena average GDP growth will decelerate to 1.9 per cent in 2019 from 2.1 per cent in 2018 due to the recession in Iran, the report said. The report assumes Iran’s net hydrocarbons exports will reduce by about 30 per cent as a result of the reimposition of sanctions. An accompanying fall in hard currency inflows will weigh on the rial further this year and increase import costs, constraining business activity and reducing the government’s ability to subsidise basic goods. Iranian plans to restructure its squeezed banking system will likely be postponed too, Fitch said, meaning the private sector will find it hard to access credit and inflation could rise. Private investment and consumption will in turn likely contract. Overall, another drag on Mena growth could be a sharper than expected slowdown in global economic growth, which could reduce oil demand and discourage investment. Mena oil producers’ export gains are being capped over the quarters ahead – at least until mid-2019. Global financial tightening and trade tensions are other downside risks, Fitch said. However, economic growth in the GCC will rise slightly to 2.6 per cent in 2019, up from 2.5 per cent in 2018, driven by Saudi Arabia and the UAE, whose expansionary fiscal policies are helping boost non-oil investment and consumption. Growth in Saudi Arabia is forecast to be 2.4 per cent this year from an estimated 2.3 per cent in 2018, while the UAE economy is set to accelerate to 3 per cent in 2019, from 2.8 per cent, as the Abu Dhabi Government scales up investment and Dubai prepares for the Expo 2020. Meanwhile, Egypt is expected to continue to outperform in the region, with forecast growth averaging above 5 per cent over 2019-2020. The North African country has implemented a package of economic and structural reforms over the past three years to improve fiscal stability and encourage investment. Source: The National Back to Index

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SAUDI HOTEL INDUSTRY TO BOOM ON RELIGIOUS AND BUSINESS TRAVEL Tuesday, January 22, 2019 Saudi Arabia’s hotel sector will grow in 2019, fuelled by increasing demand from religious, business and leisure visitors and the ongoing diversification of the kingdom’s economy through Vision 2030, real estate consultancy Savills said. “The diversification of Saudi Arabia’s economy has provided a boost for employment and its GDP outlook,” said David O’Hara, Savills’ head of Saudi Arabia, in a report on Monday. “Major hotel groups are driving construction trends across the country as they aim to meet the demands of an increasing number of domestic tourists and international visitors. We think this trend is likely to continue for many years, as both private and public capital is invested into tourist infrastructure.” Savills’ hotel sector report for Saudi Arabia notes a 13 per cent annual increase in the number of rooms in 2017 and an extra 48,000 under construction. This would increase current stock levels by 51.4 per cent, it said, citing figures from hotel data company STR. Over the past three years, several international hospitality brands have increased their investments in the kingdom by opening new hotels, including Marriott International, Rocco Forte Hotels, Hilton and Swiss-Belhotel International. There are also plans for Accor and InterContinental. Saudi Arabia’s Vision 2030 economic diversification plan aims to grow the contribution of tourism to the kingdom’s GDP under the National Transformation Plan. Officials are working to expand the industry by liberalising visa regulations and opening up new areas of the kingdom, including the Red Sea coastline, to international and domestic visitors. The kingdom also aims to grow numbers of Hajj and Umrah tourists – currently the biggest contributor to Saudi visitor numbers – to 30 million by 2030, from around 19 million today. Recent tourism growth was driven by three key groups – leisure, pilgrims and corporate visitors, Savills said. International arrivals are due to increase by around 4 per cent per year to reach 22.1 milllion by 2025, according to the World Travel and Tourism Council. Corporate travel demand is also expected to expand as the country grows alternative industries away from its traditional oil-based economy, Savills’ trends report said. “Improving the transport network for travellers is vital for the sustainable growth of tourism,” Mr O’Hara said. “As such, we expect heavy investment into connectivity infrastructure.” Source: The National Back to Index

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TOP DUBAI BROKER TARGETS CHINESE REAL ESTATE INVESTORS IN 2019 Monday, January 21, 2019 The top selling real estate broker in Dubai has predicted that half of its sales this year will come from Chinese investors. Firas Al Msaddi, CEO of fäm Properties, has set the target for 2019 after the company was honoured by the Dubai Land Department (DLD) following total 2018 sales of AED1.33 billion. Al Msaddi was also recognised by the DLD as the leading individual broker for 2018 with a total of 262 transactions. Al Msaddi said: "Immediately we’ve set our sights on achieving higher targets this year, and I’m forecasting that 50 percent of our sales and above will come from the Chinese market.” After conducting extensive research into Chinese investment potential for Dubai property, fäm said it will shortly be finalising a strategic partnership to maximise this. “There is huge potential for Dubai real estate in the Chinese market and we’re adopting a strategic approach to give fäm a strong presence there and ensure we’re able to tap into it,” he added. His comments come as data released by DLD revealed that 7,013 Chinese investors made 9,640 real estate transactions from July 2002 until July 2018 worth AED14.34 billion, with a continuous increase in the volume of investment from 2013. Last month, Dubai-based real estate giant Emaar Properties said Emaar it has begun business development operations in China in a bid to promote Dubai as an investment destination. Emaar said it has begun the design and fit-out of two offices in Beijing and Shanghai, staffed by a team specially recruited from China. The two showrooms will be used to showcase the UAE as an investment destination, with a focus on property, educational opportunities and healthcare. Source: Arabian Business Back to Index

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ASKING PRICES FOR LONDON HOMES FALL TO 2015 LOWS Monday, January 21, 2019 London home asking prices fell to their weakest level in 3 1/2-years in January as sellers spooked by Brexit held off putting their properties up for sale. Asking prices in the capital slipped 1.5 percent from December to 593,972 pounds ($765,000), the lowest level since August 2015, according to Rightmove. New listings in the first two weeks of the year were 10 percent lower than in 2018 as owners were deterred by the cost of moving and concern about the political backdrop, the property website said. After years of outsize gains in home values, London and its surrounding areas have so far borne the brunt of Brexit, with a lack of clarity over the future relationship with Europe causing both households and firms to hold off on investment decisions. Listing prices in the capital have declined from a peak of almost 650,000 pounds in May 2016, the month before Britons voted to leave the European Union. Nationally, values rose 0.4 percent to 298,734 pounds, with the biggest gains in the north of England. Rightmove’s data is compiled from 70,068 properties put on sale by agents across the country from Dec. 9 to Jan. 12. A separate report by Acadata, which incorporates all house transactions, showed national home prices rose 0.6 percent in the year to December. Excluding London and the south east, values climbed 1.4 percent. Source: Arabian Business Back to Index

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ALMOST $30BN IN HOTEL CONSTRUCTION CONTRACTS TO BE AWARDED BY 2023 Sunday, January 20, 2019 Nearly $30 billion worth of hotel construction contracts will be awarded in the Middle East and North Africa between now and 2023, according to a new forecast from the Arabian Hotel Investment Conference (AHIC). According to the research conducted by MEED projects, hotel development is most active in the UAE, Egypt and Saudi Arabia, with the UAE alone accounting for more than $20 billion worth of hotel construction contracts since 2012. Saudi Arabia, for its part, has accounted for just over $10 billion worth of hotel deals in the same time period. In the next five years, an additional $30 billion worth of contracts are due to be awarded, with the UAE accounting for $11 billion. “We’re excited to hear…that the value of future hotel investments in the region is only going to get larger,” said Jonathan Worsley, chairman of bench events and founder of AHIC. “That said, increased supply brings a unique set of challenges.” Worsley added that “tourism has boomed in the MENA region as a result of governments’ commitments to diversifying their economies.” “Relaxed visa regulations, enhanced marketing and investment in key attractions and events such as Louvre Abu Dhabi, Dubai Parks and Resorts and the Bahrain and Abu Dhabi Grand Prix have helped drive a record number of tourists to the region,” he said. AHIC will take place in Ras Al Khaimah between April 9 and 11 at a purpose built “AHIC Village” on the grounds of the Waldorf Astoria. Source: Arabian Business Back to Index

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WORLD'S LARGEST SPORTS MALL ON TRACK FOR Q1 2020 LAUNCH IN DUBAI Sunday, January 20, 2019 The construction of the world’s largest sports mall, Sport Society, is progressing on schedule in Dubai according to developer Viva City and contractor Khansaheb. According to a report in Arabian Business sister publication Construction Week, the first floor of the development is Mirdif is ready, with overall completion slated at the end of 2019. The mall is scheduled for launch in Q1 2020. Construction has also already began on the second of the project’s three floors. The ground floor of the mall has been designed to host and organise sporting events, with the other two floors to feature sports-focused stores, as well as restaurants and cafes that will offer organic diet-friendly options. Once completed, the Sport Society mall will also feature large LED screens in which major sporting and entertainment news will be broadcast, as well as a large ice hockey rink that will be cooled to -5 degrees C during the summer months. Steve Flint, the group general manager of Khansaheb Civil Engineering, said that the contractors previous record in the industry was “the deciding factor” that allowed it to win the project deal. “We employ an integrated process in managing and coordinating all elements of design, ensuring consistency between different construction processes, as the volume of work in the project is huge as well,” he added. Viva City’s head of design, Edgar Bove, said that the Khansaheb’s “efficient operations” were vital in ensuring that construction progresses on schedule. “The world-class building is well under way and on programme, due to the depth of Khansaheb’s experience, innovation and expertise in building such key retail projects,” he said. Source: Arabian Business Back to Index

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DUBAI'S RTA LAUNCHES SIX NEW BUS ROUTES Sunday, January 20, 2019 The Public Transport Agency of Dubai’s Roads and Transport Authority (RTA) has launched six new bus routes and improved services on a seventh, it announced on Sunday. According to Adel Shakeri, the Public Transport Agency’s director of planning and business development, the new routes include route E411 between Etisalat Metro Station and the emirate of Ajman, route F02 between Etisalat Metro Station and Muhaisna 4, and route 50, between International City Dragon Mart and Al Khail Gate via Silicon Oasis, Dubai Mall and Business Bay. Another three routes will be operated on Fridays only. These include route 11B between Rashidiya Metro Station and Al Awir Bus Terminus ad route 34 between Etisalat Metro Station and Al Brayan Labour Camp Al Khawaneej 2 via Al Qusais Bus Station. A seventh route – F56 – will operate between Danube Metro Station and the Dubai World Central staff village. Additionally, the service frequency of route F55 between Ibn Battuta Metro Station and Al Maktoum International Airport has been reduced from every 60 minutes to every 30 minutes. “The Public Transport Agency is always keen on expanding and improving the bus network within Dubai and the bus service linking other emirates,” Shakeri said. “It carries out period studies and site surveys to assess the needs of public transport riders to address them as soon as possible.” Source: Arabian Business Back to Index

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MIDDLE EAST PROVES MAGNET AS GLOBAL TOURISTS RISE TO 1.4BN IN 2018 Monday, January 21, 2019 The number of international tourist arrivals rose by 6 percent last year to 1.4 billion, according to an estimate published Monday by the World Tourism Organization. The increase was driven by travel to southern Europe, the Middle East and Africa, said the Madrid-based UN body, citing economic growth and technological advances as boosting factors. Although arrivals to the Americas grew only by a modest three percent - four for North America - Europe, Africa and Asia-Pacific performed strongly, with respective rises of six, seven and six percent. WTO secretary general, Zurab Pololikashvili, welcomed the strong results as showing that tourism is "one of the most powerful growth motors" for international development. Total arrivals to Europe were 713 million but the WTO noted that arrivals in northern Europe were flat last year, citing uncertainty over Britain's impending exit from the European Union. Closer focus on data for Africa, which welcomed 67 million visitors in total, saw the north of the continent register 10 per cent growth in arrivals staying at least overnight. Sub-Saharan arrivals were up six percent. Middle Eastern arrivals rose 10 percent to 64 million. The body said overall solid economic growth, more broadly accessible air travel on lower fuel prices and more efficient processing of visas had all contributed to the rise. The WTO notably cited better air connections in two substantial developing markets, India and Russia. At the same time it noted some investors as well as travellers were adopting a "wait and see" attitude in considering geopolitical uncertainty stemming from issues such as the US trade war with China as well as the fallout from Brexit. The WTO predicted a global overall increase of between three and four percent for the current year, broadly in line with historical trends. Source: Arabian Business Back to Index

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WALDORF ASTORIA DIFC TO OPEN IN SPRING 2019 Sunday, January 20, 2019 The 275-room property in the financial district comprises 201 guest rooms, 46 suites and 28 residential apartments. It overlooks the Dubai skyline through floor-to-ceiling windows in every room. Evoking the elegance of the early 1960’s New York, the Waldorf Astoria DIFC is described as a “cutting-edge, urban retreat” with bespoke services and elevated culinary experiences. It boasts three dining options and bars including Bull and Bear restaurant, the hotel’s signature restaurant, as well as rooftop lounge St. Trop and the Waldorf’s iconic Peacock Alley Lounge and Bar. It also features state-of-the-art spa and fitness centre facilities as well as meeting spaces, featuring a dedicated Business Centre, Ballroom and Library among three other flexible meeting spaces. Waldorf Astoria DIFC is located at Burj Daman on Happiness Street, just a few minutes’ away from The Dubai Mall and Burj Khalifa and 12 minutes by car from Dubai International Airport. Waldorf Astoria Hotels & Resorts has a portfolio of 30 properties around the world and is part of leading hospitality company Hilton. Source: Arabian Business Back to Index

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DUBAI PROPERTY DEVELOPERS PUT BOND PLANS ON HOLD: SOURCES Monday, January 21, 2019 Dubai’s Emaar Properties and state-owned developer Nakheel have put on hold plans to issue US dollar- denominated bonds, Emaar and sources familiar with the bond issues said, amid a real estate downturn and volatility in emerging markets. Emaar said that it had put on hold a planned bond issue, blaming rising interest rates but did not elaborate. Nakheel declined to comment. Three financial sources said the firms had planned dollar-denominated sukuk, or Islamic bonds, and would have had to pay a yield premium to attract enough investors due to concerns about Dubai’s property price slide and emerging market volatility. Dubai property prices have fallen since a mid-2014 peak, hurt by a period of weak oil prices and muted sales, although the slide has not come close to the more than 50 per cent plunge seen in 2009-2010. Residential prices fell 6 to 10 per cent in 2018 and are expected to drop 5 to 10 per cent more this year, according to Savills. Emaar, developer of Burj Khalifa, the world’s tallest building, reported a 29 per cent fall in the third quarter last year, while Dubai’s second-largest listed developer Damac reported a 68 per cent drop. The financial sources said Emaar and Nakheel hired banks a few months ago to issue Islamic bonds but shelved the plans. An Emaar spokesperson said its decision to put its plan on hold was not linked to the property market performance. “The bond was considered more than a year ago and was put on hold due to increasing interest rates. The decision was not based on market conditions,” the spokesperson said. Dubai government owns a minority stake in Emaar. Nakheel, developer of palm shaped islands off Dubai, was one of the worst hit by Dubai’s 2009-2010 real estate crash, forcing it into a massive debt restructuring. It has not issued public debt since it nearly defaulted in 2009. The market downturn has put pressure on property companies’ existing bonds, which investors use as a parameter to establish the price of new debt sales from borrowers in the same sector. In secondary debt markets, yields of bonds issued by Dubai developers have risen significantly over the past few months, underperforming corporate debt from other sectors. Damac’s $500 million (Dh270.89 million) sukuk due in 2022 and $400 million Islamic paper due in 2023 saw their yields spike by over 200 bps and 150 bps, respectively, since early November. BofA Merrill Lynch last week forecasted weaker booked sales and gross margin for DAMAC, saying it was likely to be pressured by the property market and upcoming debt and land payments.

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Damac did not immediately respond to a request for comment.

Yields on a $600 million sukuk issued by private developer Meraas, due in 2022, have jumped by around 120 basis points in the same period. Meraas declined to comment on the move. Source: Gulf News Back to Index

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HONG KONG HOUSING RANKED WORLD’S LEAST AFFORDABLE FOR 9TH YEAR Monday, January 21, 2019 Hong Kong has been ranked the world’s least-affordable housing market for a ninth straight year. Not only did it retain the notorious title, homes in the city got further out of reach for most residents, according to Demographia, an urban planning policy consultancy. The city’s median property price climbed to 20.9 times median household income in 2018, up from 19.4 times a year earlier. Vancouver was ranked the second-most unaffordable market, leapfrogging Sydney — where the housing boom has gone into reverse. Melbourne came in fourth, followed by San Jose and Los Angeles. London was the worst European city, coming in equal 10th with Toronto. Things may get easier for homebuyers as property markets from Hong Kong to London join a global downturn. Hong Kong housing values have endured their longest losing streak since 2008, prices in outer London neighbourhoods have fallen for the first time since 2011 and Sydney home owners are grappling with the worst real estate slump since the 1980s. The Demographia study covered 309 metropolitan markets across eight countries, including Australia, Canada, the UK and the US, as of the third quarter of 2018. Twenty-nine major housing markets were classed as “severely unaffordable.” Source: Gulf News Back to Index

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DUBAI'S ECONOMIC GROWTH BETWEEN ILLUSIONS OF EXPECTATIONS AND FACTS Monday, January 21, 2019 The global monitoring and evaluation institutions vary in their forecasts for Dubai's economic growth rates for 2019 to 2023, but all agree that the Emirate of Dubai has a proactive capacity to absorb and neutralise the negative repercussions of the global economic and trade volatility. The continued economic activity, which is regularly supported by the Government of Dubai through spending on all development scenes, enhances the confidence of the global financial institutions in the emirate. It was no coincidence that His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced yesterday (Sunday) the allocation of Dh6.5 billion for new projects, including the first Environmental Satellite, (DMSAT1), Waste Management Centre, and Dubai Traditional Market projects as they are well-planned projects that will increase confidence in the economy of Dubai in particular, and the UAE in general. In its latest report about its forecasts for 2019, the International Monetary Fund, IMF, expects the average global growth rate at 3.6 per cent during the period from 2019 to 2023, but it has forecast Dubai's economy growth to reach 4 per cent this year, of which 3.3 per cent is for the non-oil sector. The IMF is optimistic about the continued growth of the Dubai economy in particular and for the UAE in general, due to the continued spending on infrastructure development and construction in preparation for the Expo 2020 Dubai as well as intensive investment in technology, digital and technical programmes. Attractiveness of Dubai You can also add one more advantage, which is lowering the cost of doing business through reforms and incentives aimed at speeding development, which is recorded by the IMF in order to enhance the attractiveness of Dubai as a preferred destination for global investments. Dubai has increased the number of its overseas promotional missions to five missions in 2019 that will visit 10 world cities in the United States, China, Japan and South Korea to explore new investment opportunities and strengthen old trade and investment ties. Meanwhile, in the first half of 2018, Dubai attracted Dh17.8 billion in foreign direct investment, FDI. As part of its commitment to growth, investment and trade, Dubai's promotional missions target the regions and countries which have been associated with the emirate through strategic partnerships over the past two years given the role and location of the UAE as a key gateway to the Middle East. The figures issued by the Dubai Chamber of Commerce and Industry regarding growth rates from 2019 to 2023, are not very different from the IMF data. The emirate's growth rates, as read by the chamber, reaches 4.7 per cent, surpassing the average GDP growth in the next five years at 3.8 per cent. Regarding the financial sector in Dubai, the Bloomberg Economic News Agency, has mentioned the transition to a new and advanced stage in the top lists of the global financial centres. In a previous report, entitled "What recession they talk about in Dubai", Bloomberg has underestimated the rumors of recession and downturn in its economic activity, while emphasising that Dubai leads the Middle East as a financial centre and is now carrying out a programme to triple the area of this sector and tax incentives on

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salaries for 50 years, consequently needs continued expansion of employment, pointing out in this regard to the Dubai International Financial Centre of the expansions which are up to 300 per cent in its area and equivalent to the total area allocated to the Canary Wharf the commercial estate in London. Whatever the expectations, there is a firm belief that the UAE is setting and implementing its plans, and is carving its future with strong determination and relentlessness; it does not know the recession and does not believe in it, but believes that its place is at the forefront, leading the way for all. Source: Gulf News Back to Index

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UAE'S SAFESTWAY SUPERMARKET BRAND SOLD Monday, January 21, 2019 The supermarket chain Safestway has been sold to rival brand West Zone, the retailer’s parent company The Giant Group said on Monday. Employing over 700 people, Safestway describes itself as an importer and distributor of consumer goods, food and grocery products. It also claims to be the “largest importer of specialised Filipino foodstuffs in the Gulf region.” Explaining its decision to divest Safestway from its portfolio, a spokesperson for The Giant Group said that it was shifting its focus away from retail to concentrate on distribution. “We are mainly in distribution, we’re focused on distribution, not retail,” a company spokesperson told Gulf News by phone. The Giant Group recently opened an 85,000 square feet temperature-controlled logistics facility. “So we agreed with management that it would be best to get out of retail, and sell to West Zone who focus on retail,” the spokesperson added. West Zone operates 25 hypermarkets throughout the UAE, in areas such as Al Nadha, Mirdiff and Oud Metha. The company declined to comment for this article. When asked whether the move would lead to redundancies, the Safestway spokesperson responded that “there will be no job losses.” The company operates two branches, one located in the Al Safa area near Shaikh Zayed Road, and the other located in Jumeirah Village Triangle (JVT). A member of staff in the JVT store confirmed that the company had changed hands and was now owned by West Zone, but the Safestway name would remain. The man, who identified himself on the phone as a store manager named Rakesh, added that there would be no job losses from his branch. The Safestway spokesperson from the company’s corporate office declined to say how much West Zone paid for the supermarket, but did note that Safestway branches would not become West Zone outlets. “They will stay exactly the same,” the spokesperson said. Safestway is reportedly popular with North American expats, selling a large variety of products commonly found in US supermarkets, and is known for its competitive pricing. In December, Gulf News reported that the UAE-based supermarket chain Al Manama Group shut a number of its branches after the owner allegedly fled the country, leaving hundreds of employees without pay, and millions of dirhams in money owed to suppliers.

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The chain, which runs more than 20 supermarkets throughout the country, had to halt its operations last month after the head office was down in the last week of November.

Suppliers, employees and the local sponsor of the Ajman-headquartered Al Manama Group alleged that the managing director of the group had left the UAE in September, leaving salaries unpaid and payments pending. Source: Gulf News Back to Index

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SERVICE FEES REDUCED BY 50 PER CENT IN UAE Monday, January 21, 2019 Service fees for the registration of properties, rental contracts and other transactions at the Abu Dhabi Municipality have been reduced by up to 50 per cent, according to a new government resolution. Abu Dhabi has also exempted all businesses issued with new licences from local fees for two years as the Capital looks to attract investors. The Abu Dhabi Executive Council resolutions that have been published in the latest local official gazette came into force on December 1, 2018. The secretary-general of the Executive Council of Abu Dhabi, Dr Ahmed Mubarak Al Mazrouei, issued the Council's Resolution No.336 of 2018 concerning the reduction and cancellation of fees of some municipal services in Abu Dhabi. Al Mazrouei said: "These decisions come with the aim of bolstering the competitiveness of the business environment and improving it in a way that attracts companies and institutions and developing partnerships with the private sector." In the new resolution, 75 municipality services fees were cancelled and 23 municipality fees were reduced by 10 to 50 per cent. Services for which fees were either cancelled or reduced included the replacement of title deeds; photocopying of a real estate's file; land ownership merging; registration of rental contracts; to whom it may concern certificates; clearance certificate for no-objection of building on industrial land; exchange of low-cost houses; will registration; delivery of ownership borderline poles; and provision of land coordinates, digital and paper satellite maps. The changes were applied on fees that ranged from Dh50 to Dh10,000. A separate Resolution No.337 of 2018 has been issued to exempt firms from fees - such as those for government approvals or documenting contracts - upon the release of their new licences. "All concerned parties should implement this decision in coordination with the Department of Economic Development. The decision will be implemented from December 1, 2018," the resolution stated. Emirati businessman Hussein Al Shamsi welcomed the decision, saying it would boost the business landscape of the Capital. "This is a great move by the Abu Dhabi government. The exemption of new businesses from paying licence fees for two years will attract more firms to come to Abu Dhabi," said Al Shamsi. "Reducing the fees on many municipality services including the registration of properties and rental contracts will increase transactions at the municipality and boost economic development." Source: Khaleej Times Back to Index

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IMF CUTS GLOBAL GROWTH OUTLOOK FOR 2019 Monday, January 21, 2019 The International Monetary Fund (IMF) on Monday cut the growth outlook for the Middle East, North Africa, Afghanistan and Pakistan (Menaap) and the world economy for 2019 due to weaker oil prices and the trade war between the US and China. The IMF forecast that growth will remain subdued for the region and slashed its 2019 forecast for Menaap by 0.3 per cent to 2.4 per cent. But growth will recover next year and the region is projected to grow 3 per cent. Next year's growth forecast remained unchanged. "Multiple factors weigh on the region's outlook, including weak oil output growth, which offsets an expected pickup in non-oil activity in Saudi Arabia, tightening financing conditions in Pakistan, US sanctions on Iran and geopolitical tensions," the fund said in its World Economic Outlook Update released on Monday at the World Economic Forum in Davos. It also slashed the 2019 growth outlook for Saudi Arabia, the region's largest economy, to 1.8 per cent, which is 0.6 per cent less than its previous forecast released in October last year. But it hiked the kingdom's next year growth outlook by 0.2 per cent from its previous forecast to 2.1 per cent. Gian Maria Milesi-Ferretti, deputy director in the Research Department of the IMF, blamed lower oil production following Opec's December 2018 meeting for lower growth for Saudi Arabia and other oil-exporting countries. "Slowdown in the GCC countries will see lower remittances to countries that send a lot of workers to the region. While countries like Pakistan and Bangladesh will get lower remittances, but they would benefit from reduced outlays on oil," Milesi-Ferretti said. In October 2018, the IMF hiked the UAE's growth forecast for 2018 and 2019 on the back of higher oil prices, continued reforms to promote the private sector and increased government spending. But earlier in April 2018, the IMF had cut UAE's real GDP growth forecast for to 2 per cent for 2018 and 3 per cent for the next year. Khatija Haque, head of Mena Research at Emirates NBD, said the regional outlook for 2019 is cautiously optimistic, against a backdrop of slowing global growth and heightened geopolitical risks globally. "We expect average growth of 2.5 per cent in the GCC this year, with the UAE and Qatar likely to see faster growth than in 2018. We expect Saudi Arabia's economy to expand two per cent this year, slower than the government's estimate of 2.3 per cent growth in 2018," she said in the latest research note. "In 2019, we expect growth to accelerate to 3.1 per cent down from a previous forecast of 3.6 per cent, on higher average oil production relative to 2018 even after Opec's production cuts come into effect) and faster non-oil sector growth. The latter will be supported by increased government spending (both by Abu Dhabi and through the Federal Government budget), and preparations for Expo 2020 Dubai, which are targeted for completion by end Q3 2019," she said in the note. Emirates NBD has revised oil forecasts for 2019 lower to an average of $65 per barrel for Brent from more than $70.

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Pankaj Gupta, co-founder and CEO, Gulf Islamic Investments, UAE, said 2019 global growth has been hindered as China economy cools, investments weaken and consumer confidence falters, leaving the 218 growth the weakest in 28 years. Moreover, US-China trade and rejection of Brexit unrivalled more speculations within the market. Due to these global factors, it is evident that caution is taken when predicting growth in Mena region. "I believe 2019 should be viewed as a year of progress for Mena as economies are anticipated to lead stronger growth supported by easing fiscal adjustment and infrastructure investment such as the Expo 2020," he said, adding that "private sector sentiments are moving in the right direction while the government is charting master plans for other reforms to promote non-oil sector activity." Furthermore, growth among some oil importers in the region is anticipated to improve as business and consumer confidence are boosted by reforms and as external demand improves, he added. India fastest growing in 2019-20 According to the IMF, global economy is projected to grow at 3.5 per cent in 2019 and 3.6 per cent in 2020, 0.2 and 0.1 percentage point below last October's projections. The fund cut advanced economies projections by 0.1 per cent to 2.0 per cent for 2019 with Germany, Italy and euro-area growth predictions revised down by 0.6 per cent, 0.4 per cent and 0.3 per cent - respectively. While the growth outlook for China remained unchanged for 2019-20 but India's outlook was raised slightly by 0.1 per cent for 2019. Data from the IMF revealed that India will be the fastest growing economy among the major economies of the world, growing at 7.5 per cent in 2019 and even faster at 7.7 per cent in 2020. While address the press conference in Davos, Christine Lagarde, managing director, IMF, said the global economy is growing more slowly than expected and facing significantly higher risks. "After 2 years of solid expansion, the world economy is growing more slowly than expected and risk are rising. But even as the economy continues to move ahead, it is facing significantly higher risks and some of them are related to policies. These risk are increasingly intertwined. We believe the risks to downward correction are rising," she said. However, she ruled that there is any recession around the world. Gita Gopinath, chief economist, IMF, said political risks are very important and leaders must immediately take action to prevent such risk. "Trade tensions and a no-deal Brexit are significant risks to the global economy," she added. Source: Khaleej Times Back to Index

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ALDAR OFFERS MID-MARKET PLOTS TO EXPATS FOR THE FIRST TIME Sunday, January 20, 2019 Aldar Properties on Sunday sold residential and commercial plots to expatriates in the mid-market segment for the first time in Abu Dhabi, cashing in on improving investor sentiment towards the emirate's real estate sector, its CEO said on Sunday. The Abu Dhabi-based master developer sold a total of 764 residential and 150 commercial plots for Dh1.6 billion of Alreeman project - which is a special investment zone - and is located in the Al Shamkha area. Most of the plots were bought by Emiratis and Arab expatriates. Aldar will develop infrastructure of the project over the course of next two years. Speaking to Khaleej Times, Talal Al Dhiyebi said the market has started to see positive investor sentiments in the real estate sector in 2019 and the company will launch more projects. "We have been focusing on the affordable market segment and now tapped into residential and commercial plots. For the first time, expats are allowed to purchase residential villa plots. Prior to this, we did for a few projects but it was only for UAE nationals," Al Dhiyebi said. "This is an opportunity for expats to buy land where they can design and build villas of their choice; for investors, it is opportunity to build small and low-rise buildings of 30-40 apartments which they can sell or lease. We saw unprecedented demand with people queuing for quite some time," Al Dhiyebi said in a telephone interview on Sunday. Prices of plots started from Dh690,000 for villas and Dh4.69 million for commercial land. Currently, 1,500 units are in the pipeline for deliveries in 2019 by Aldar. The master developer had announced deliveries of over 7,000 units from 2018 until 2021 in its 2018 third-quarter results. Al Dhiyebi said they are looking at the launch of new projects on because the market is very positive and much more mature. "We hope this positive sentiment continues as market fundamentals and economy are strong; we'll continue to tap into demand," he said, adding that fiscal stimulus, Adnoc's expansion project, arrival of new companies at Khalifa Port in Kizad, operational sales of nuclear plant, Etihad Rail's second phase and growing tourists will drive the UAE capital's real estate market." Guardian Wealth Management also sees a strong start for the Abu Dhabi real estate market in 2019 due to injection of funds along with an increase in new jobs that will boost activity in the personal finance sector. GWM co-owner David Howell said research into the Abu Dhabi market at the end of 2018 produced very positive results. "There is no question about the level of optimism in Abu Dhabi currently; we are seeing a lot of new expatriate arrivals at the start of this year. Across the board there is activity such as the launch of new projects and developments and the opening of more attractions such as those on Yas Island," said Howell. Source: Khaleej Times Back to Index

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WORLD TOURIST NUMBERS HIT 1.4 BILLION IN 2018, TWO YEARS AHEAD OF FORECAST Tuesday, January 22, 2019 Global tourism in 2019 will grow 3 to 4 per cent but Brexit uncertainty and escalating trade tensions will weigh on the travel outlook, UNWTO says. The annual number of tourists crossing international borders in 2018 accelerated to levels forecast for 2020, but this year’s outlook is clouded by Brexit and trade tensions, the United Nations World Tourism Organisation said. International tourist arrivals increased 6 per cent to 1.4 billion last year led by growth in the Middle East and Africa, the UN body said in its latest report. Affordable air fares, stronger global economic growth and liberalised visa regulations helped boost growth to levels the UNWTO did not expect until 2020. “The growth of tourism in recent years confirms that the sector is today one of the most powerful drivers of economic growth and development,” said Zurab Pololikashvili, UNWTO secretary general. A 10-year forecast by the UNWTO in 2010 estimated that global tourist arrivals would reach the 1.4 billion mark by 2020. However, the world tourism industry hit that mark two years earlier – in 2018. Global passenger traffic last year grew 6.5 per cent to 4.34 billion, according to the International Air Transport Association. Tourist arrivals to the Middle East grew above the global average of 6 per cent, with the region recording a 10 per cent rise from the year before to 64 million overnight visitors in 2018. “The Middle East showed solid results last year, consolidating its 2017 recovery,” the UNWTO report said. Africa recorded a 7 per cent increase in tourist arrivals last year with 67 million visitors to the continent. Asia-Pacific and Europe posted 6 per cent increases in 2018, while the Americas grew below the world average at 3 per cent, the UNWTO said. The Americas showed mixed results where North America led the region with growth of 4 per cent, followed by South America at 3 per cent while Central America and the Caribbean declined by 2 per cent. The drop in tourist arrivals to the Caribbean reflected the effect of the September 2017 hurricanes Irma and Maria. In 2019, international tourist arrivals is forecast to grow 3 to 4 per cent in line with historic growth trends, said the report. However, the global economic slowdown, uncertainty related to Britain leaving the European Union, as well as geopolitical and trade tensions will result in a “wait and see” approach to travel this year, said UNWTO. The International Monetary Fund lowered its global growth forecast for 2019 and warned of the dangers from escalating trade tensions that have already started to dampen the world economic outlook. The global economy is set to grow 3.5 per cent in 2019 from 3.7 per cent in 2018, the IMF said in a report this week.

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Trends for 2019 point to strong outbound travel from emerging markets, especially India and Russia, but also from smaller Asian and Arab source markets, the UNWTO report said.

Source: The National Back to Index

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EMAAR SAYS SET TO OPEN NEW DUBAI MALL LINK BRIDGES Tuesday, January 22, 2019 Emaar said on Tuesday it has made significant progress in the construction of five new retail link bridges that will further strengthen road connectivity to The Dubai Mall. Scheduled to open in February, the retail link bridges connect the mall with Doha Road/Financial Centre Road, the developer said in a statement. The new bridges are part of The Dubai Mall’s Zabeel expansion and are executed by Emaar with the support of the Roads and Transport Authority (RTA). At a length of over 1.78 kilometres, the elevated bridges have a total decked area of about 15,000 square metres. The longest bridge is over 765 metres while the others vary in length from 120 to 582 metres. The bridges are buttressed by over 580 piles of varying diameter adding to their stability and strength. Work on the bridge spans are being done with the support of Dubai Police and RTA in the early hours of the morning to minimise disturbance to drivers, Emaar added. The new retail bridge link will be the third in Downtown Dubai that enhances ease of access for visitors. Emaar has already opened link bridges from the Dubai Metro station as well as between Address Boulevard and the Metro Link. It said the new Zabeel expansion will further add to retail, F&B and entertainment choices of visitors to the mall. The Dubai Mall has welcomed over 80 million annual visitors for the past four consecutive years and is the flagship of Emaar Malls, the shopping malls subsidiary of Emaar Properties. Source: The National Back to Index

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HANDOVER BEGINS AT $141M DUBAI MARINA WATERFRONT PROJECT Tuesday, January 22, 2019 Select Group, a real estate investment and development company headquartered in Dubai, has begun handover of a waterfront project in the emirate. No.9 in Dubai Marina, which has a gross development value of AED520 million ($141.5 million) and built up area of 500,000 square feet, is spread over 34 floors with a total of 223 units. No.9 features 1, 2, 3 bedroom apartments and a limited number of duplex penthouses. Commenting on the handover, Rahail Aslam, Group CEO Select Group, said: “We are pleased to handover yet another tier one development in Dubai Marina. With premium finishes and facilities, the owners of No.9 are set to enjoy excellent returns on their investments. "The vibrant location of the development with easy access to multiple public transportation options, close proximity to JBR beach and neighbouring five star hotels, make No.9 an ideal investment for both occupiers and landlords.” With 10,300 homes, Select Group is one of the largest private developers in the region and No.9 is the second development handed over by the developer in 2018. The first tower in the group’s flagship development The Residences at Marina Gate was completed earlier in the year with the second tower scheduled for handover in 2019. Source: Arabian Business Back to Index

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MASTER PLAN APPROVED FOR NEW SAUDI ECO-TOURISM MEGA PROJECT Tuesday, January 22, 2019 The master plan for a project to develop 22 islands in the Red Sea off the coast of Saudi Arabia has been approved, with phase one scheduled for completion in 2022. The Red Sea Development Company (TRSDC), the developer of the tourism mega project, said the master plan includes design concepts from some of the world’s most prominent architecture firms. The first phase of the project, scheduled for completion in 2022, includes 14 luxury and hyper-luxury hotels providing 3,000 rooms across five islands and two inland resorts. Phase one will also include yacht marinas, leisure and lifestyle amenities and an airport to serve the destination, as well as the supporting logistics and utilities infrastructure, a statement said. It added that the master plan was completed following a series of environmental studies to ensure that the ecologically sensitive area is fully protected during and after development. The final master plan, which preserves some 75 percent of the destination’s islands for conservation and designates nine islands as sites of significant ecological value, required several redesigns throughout the process to avoid potentially disrupting endangered species native to the area. “The design concepts that we have presented to the Board will provide visitors with a uniquely diverse, immersive experience while setting new standards in sustainable development, and positioning Saudi Arabia on the global tourism map,” said John Pagano, CEO of TRSDC. “With the master plan approved, we are now identifying investors and partners who are interested in working with us on realizing the objectives of the project and who share our commitment to enhance, not exploit, the natural ecosystems that make the destination so unique.” The Red Sea Project is an integral component in Saudi Arabia's Vision 2030 strategy. The project is expected to create up to 70,000 new jobs and to contribute as a much as 22 billion Saudi riyals ($5.3 billion) to the nation’s GDP. The destination will be fully completed in 2030 and the approved master plan will steer the development of 22 of the 90+ islands at the destination, providing up to 10,000 hotel rooms across island resorts, mountain retreats and desert hideaways. The destination will also offer luxury residential properties and a wide range of commercial, retail and recreational facilities. TRSDC said it is developing a range of policies including zero waste-to-landfill, zero discharge to the sea, and zero single-use plastics, and has made a commitment to achieve 100 percent carbon neutrality. The destination will also rely solely on renewable energy and have no connection to the national grid.

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“The leadership of the kingdom has shown great foresight in its insistence on balanced development of this pristine destination,” said Pagano. “Our plan not only envisions a stunning luxury destination, it also takes tangible, measurable steps to enhance that destination for future generations to enjoy and cherish.” Source: Arabian Business Back to Index

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DUBAI RULER ORDERS HATTA TOURISM PROJECTS TO BE FAST-TRACKED Tuesday, January 22, 2019 Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has ordered government entities to speed up the execution of projects related to Hatta’s comprehensive development plan. The plan seeks to turn Hatta into a key tourism and investment hub, with Meraas Holding behind projects to position the mountainous area as a global destination for eco-tourism. During his visit to Hatta, Sheikh Mohammed stressed the importance of giving priority to service, environmental and heritage-related projects, given its significance in preserving the national identity and heritage. A 10-year Hatta Development plan is already starting to take shape, with Airstream-style trailer accommodation and lodges opening recently in the Hajar Mountains, 115km from Dubai. A big part of the eco-tourism drive is glamping, a term coined due to the more lavish facilities on offer than on the standard camping trip. Sheikh Mohammed was accompanied by Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, chairman of Mohammed bin Rashid Al Maktoum Knowledge Foundation and Khalifa Saeed Suleiman, director-general of the Department of Protocol and Hospitality in Dubai. He was briefed about the various projects being executed in the area, and reviewed the map of projects that are being developed by Meraas Holding. He was also briefed about the projects developed jointly between Dubai Municipality and Meraas, which aims to rehabilitate and develop the environmental aspects of Hatta, as it is a key for the development of tourism sector and preserving the heritage aspect of the area. In November, Meraas opened the Hatta Wadi Hub to offer adventure experiences, inviting visitors from UAE and beyond to rediscover the region’s breath-taking landscape, its mountains and waters. The Hatta Wadi Hub features a coaching centre and activities such as mountain biking and Hatta Drop-in, Asia’s first water jump park plus a glamping experience at the Hatta Damani Lodges. Meraas has also unveil plans for Riad Hatta, a new boutique hotel, currently in design stage and is also collaborating with Dubai Municipality on several projects to redevelop the old heritage village and adding new stores to support Emirati entrepreneurs. There are also plans for a majlis which will be a meeting point for senior Emiratis from Hatta. Another highlight is Hatta Zorbing, a specialised zorbing centre for adults and kids where riders roll downhill inside a giant transparent orb. Source: Arabian Business Back to Index

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NEW VISA REFORMS TO SPUR UAE PROPERTY DEMAND FROM INVESTORS Tuesday, January 22, 2019 The visa reforms in the UAE are expected to encourage residents and investors to build a property investment portfolio in the country and avail long-term residency benefits. In particular, it will be a vehicle to attract and retain more high-net-worth individuals (HNWI) from around the world. “The UAE’s property market has always been attractive to foreign investors; by offering long-term residency, the government aims to strengthen investor confidence even further,” said Niall McLoughlin, senior vice-president of Damac Properties. According to the new regulation, property investors can secure a five-year residence visa when they invest at least Dh5 million in property, whereas investments worth Dh10 million get a 10-year visa. The five-year retirement visa is also available for expatriates age 55 or above against property investments worth at least Dh2 million. “For the investors eyeing the 10-year visa, the property should account for no more than 40 per cent of their total investment of Dh10 million or more,” said McLoughlin. “In the case of the latter, investors can invest in multiple properties up to a total of 40 per cent of their total investments.” Demand trends While the introduction of the property-linked visa will attract more investors, McLoughlin does not expect it to shift the demand away from affordable homes. “Interest in the affordable property segment is a global trend, owing to the growth of several emerging markets and an increase in disposable incomes,” he said. According to Craig Plumb, head of research at JLL Middle East and North Africa, while the new visa regulations will stimulate the market in the long run, the benefit of these initiatives will not be immediate impact and “2019 is expected to remain a challenging year for most sectors of the real estate industry”. Plumb added that the residential and office sectors have the most potential upside from the initiatives launched to stimulate demand. Visa-eligible properties With the visa rule in place, many homebuyers will now aim to acquire property at Dh5-million threshold to benefit from the long-term visa, said Jason Hayes, founder and CEO of LuxuryProperty.com. “The market may not see any changes in the type of units being built in the immediate term as developments are master planned years in advance,” said Hayes. “However, I am sure developers will structure feasibility studies around the Dh5-million price point, and we will undoubtedly see new developments being marketed as long-term visa compliant.” He added that the ruling applies to both secondary and new properties above Dh5 million, of which there is plenty of stock available to satisfy demand, ensuring that both end users and investors can benefit from the new regulations. A few choices, he said, include Arabian Ranches 2, Dubai Hills, District One, Tilal Al Ghaf, Al Barari and Palm Jumeirah.

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“Most new buyers opt for single-unit investments. Over time, seasoned investors may add further units to their portfolio, but it all begins with a single-unit purchase.”

Stock availability There around 5,500 properties with a value of at least Dh5 million presently listed on portals, according to Taimur Khan, research manager at Knight Frank. “If you compare this to the number of sales, which have been registered at the Dh5-million level and above according to Property Monitor, this is less than 1,000 sales,” said Khan. “On the super-prime end of the market, there are more limited options, and if we do see demand extend to here due to the introduction of these visas, we may see greater competition. “The range of properties available for the discerning HNWI buyer is from villas on the Palm, Emirates Hills and Arabian Ranches to apartments in Downtown, the Palm and Dubai Marina. There is a selection of new stock, which has come onto or is about to enter the market, which will also attract such buyers. This includes the Royal Atlantis Residences, 118 Downtown, Emaar Beach Front properties, Opera District, Bulgari, One at Palm Jumeirah and the Alef to name a select few.” Source: Gulf News Back to Index

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PRIME RESIDENTIAL OPPORTUNITIES IN DUBAI Tuesday, January 22, 2019 While the prime residential property market saw a drop in values last year, a trend that investors are keenly observing, the market is also winning new buyers, especially from fast-emerging international markets. The prime residential market last year totalled Dh39 billion, down by around 11 per cent compared with the previous year, according to research by Luxhabitat based on data from Property Monitor. While noting that homebuyers will continue to wield the upper hand this year, Andrew Cleator, sales director at Luxhabitat, said there are strong signs the market is picking up activity. “In my opinion, 2019 will continue to be a buyer’s market with great opportunities for both investors and end users alike,” said Cleator, adding that price reductions have already started to wane with some areas showing signs of stabilising. Last year, Dubai’s prime property prices also saw the fifth-highest decline among 43 major cities around the world according to Knight Frank’s Prime Global Cities Index Q3 2018. Dubai recorded a drop of 3.8 per cent year to date, which was the second highest decline in the region after Istanbul, which saw a 6.3 per cent drop in prime property prices. “The decline in sales prices is of concern to some investors depending on when they entered the market,” Ivana Vucinic, head of valuations and advisory operations at Chestertons Middle East and North Africa, told Property Weekly. “But conversely it is attracting new buyers to the market because of increased affordability. Moreover, we are not just witnessing interest from investors but from end users as well.” Optimism in the market According to analysis by Luxhabitat, new buying trends in the past year indicate a growing optimism in the market. These trends include an increase in the average price per square foot for villas, which indicates interest for higher-end and better-quality units. Luxhabitat also reported that demand for ready-to-move-in villas has doubled. “Arabian Ranches 2 seems to be a popular area, with a 47 per cent increase in sales from the previous year, presumably owing to more launches in 2018,” Luxhabitat said in the report. Last year the most popular prime residential locations in terms of sales volume were Business Bay (Dh6.9 billion), MBR City (Dh6.3 billion), Downtown Dubai (Dh5.4 billion), Dubai Marina (Dh3.7 billion) and Palm Jumeirah (Dh3.3 billion), according to Luxhabitat. But a key shift in buyer interest was seen in the size of units transacted. “It is deduced that the average size of off- plan units transacted has also reduced from an average built-up area of 1,100 sq ft to 917 sq ft, [a drop of] 6.2 per cent,” according to the report. With the broad easing of business regulations and visa rules, particularly those related to property such as the introduction of the retirement visa for those who own property worth at least Dh2 million, there is now much more clarity for many buyers who had earlier adopted a wait-and-see approach, said Taimur Khan, senior analyst at Knight Frank. This is likely to underpin the market moving forward, although he believes it will take time to make an impact. Price advantage

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While prevailing prices and generally favourable to buyers, Mario Volpi, sales and leasing manager at Engel & Völkers Dubai, underlined the opportunities that have opened for investors.

“Dubai is regarded as one of the most sought-after cities in the world to own real estate, given its proven high return on investment. The continued strength of the dollar has, however, meant that some real estate in the emirate is perceived as expensive; the truth is actually the reverse,” Volpi told Property Weekly. According to the 2018 Knight Frank Wealth Report, $1 million (Dh3.67 million) would buy 138 sq m of prime property in Dubai, but only 25 sq m in New York, 28 sq m in London, 39 sq m in Singapore, 56 sq m in Paris and 92 sq m in Mumbai. “The softening of prime property prices and the fact that one gets much more property for their money adds to the attractiveness of Dubai,” said Volpi. “Property markets move in cycles and given the statistics, most analysts believe we are close to the bottom of this particular cycle, so buying real estate now or in the very near future looks to be a good move especially with Expo 2020 just around the corner.” Source: Gulf News Back to Index

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HOW MUCH SHOULD I BORROW FOR MY MORTGAGE? Tuesday, January 22, 2019 The first logical step of buying a house would be to determine your budget. Financial institutions would be happy to lend if the applicant meets the eligibility criteria with a good debt-burden ratio (DBR) and a credit score. Usually, they offer 70-80 per cent of the property value as a loan amount, but at the end of the day, it would be the borrower who decides whether to opt for the maximum finance provided by the bank. It’s not advisable for a borrower to pick a number blindly for the financed amount, as home mortgage is a long-term financial commitment. Before deciding how much to borrow, go through this list: Monthly income Financial institutions check the DBR in addition to the credit score to avoid risks. A low DBR emphasises a person’s capability to pay back the loan. Calculating your DBR yourself prior to applying for a mortgage will help gain a clear perspective on the loan amount that can be approved. Determining your monthly instalment affordability will go a long way to decide the loan amount you can borrow. Just make sure that your monthly installment doesn’t sweep out a major part of your monthly income. Additional expenses Apart from the 20-30 per cent down payment and maintenance costs, the buyer needs to bear some additional expenses like closing costs, early settlement fees, property taxes, etc. The closing costs involved are the registration fee, land department fee, mortgage registration, estate agency fee, valuation costs, etc. In case of clearing the loan before the end of tenure, 1-3 per cent of the outstanding loan amount will be charged as an early settlement fee. So, the early settlement charges will depend on the loan amount you borrow. This itself can make a big dent on your finances and hence worth keeping in mind as one of the principal deciding factors. Future commitments It is advisable not to neglect your future plans while deciding the mortgage amount. Even though initially you can fit your mortgage instalments perfectly into your monthly budget, it is important to make a decision by keeping the future in mind. If you are going to have kids or your kids will start going to school in the next few years, then it would be a burden at that point of time as a mortgage is a long-term financial plan. Although it’s inevitable that your income would increase with time — but let’s not plan with the bright side in focus. You must consider unexpected events like job loss, fluctuations in income etc. Planning for the worst, while hoping for the best is an age-old safe way to make sure you don’t lose out in the long run. Plan effectively so that despite unplanned downturns, your mortgage payments should not bother you much. Maintenance costs It doesn’t end with getting a mortgage and purchasing a house. Ownership involves several costs like electrical repairs, leaking pipes, broken window, pest control and much more. If you were a tenant prior to this new ownership, your landlord might have been bearing these costs. But once you own a property you would be in charge of paying for these. Make sure you do a regular inspection and be prepared financially to bear these costs. It’s essential to set some funds aside for the maintenance of the house. So while deciding the mortgage amount keep these costs in mind as well, as it should affect your monthly ongoing expenses. A home mortgage is a long- term financial commitment. At the end of the day, it must be a comfortable payment rather than making the loan

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holder stressful when paying monthly instalments and this is only possible by taking proper steps right from the initial phase, which starts with deciding how much you should borrow.

— Nikhita Devi is a senior financial analyst at MyMoneySouq.com. The views expressed here are her own. Source: Gulf News Back to Index

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SHOULD YOU BUY OR RENT A PROPERTY IN DUBAI? Wednesday, January 23, 2019 If you are looking for a 'forever home', then buying might just make sense. There are a number of pros and cons regarding buying or renting. Important factors weighing on the decision include your time of life, income, personal status and commitment to a specific place. But we firmly believe that in the current market, you should rent. Simply put, buying requires a lot of money and doesn't earn you any income, in fact you are paying to live in your own house. Also, the cost of borrowing has been increasing, meaning your mortgage payment will increase, while rental prices are still coming down - so you lose that opportunity. The best issue to focus on is your personal needs. If you are looking for a 'forever home', then buying might just make sense. But if you are not sure about your long-term plans - even without looking at the numbers - renting makes more sense as it provides you with a lot of flexibility, especially with the current rising interest rates trend. When it comes to buying versus renting, there is a lot more to consider than simply comparing your rental and mortgage payments. You need to factor in a number of 'hidden costs', such as maintenance, service and insurance charges among other ongoing, variable costs. Consider the opportunity cost of 'parking' your funds into the property that will not provide any cash returns, only the potential of capital returns if the property appreciates, and possibly savings in rent if you have done your numbers right. The equation and opportunity cost changes drastically if you finance your purchase. Then you have not invested in an asset, rather shouldered a long-term liability that will obligate you to pay - rather than earn returns. By renting - and using funds saved that you would use for down payment or buying a property - your wealth can be invested in income-generating real estate or other asset classes. This gives you better overall return as money earned from that investment can be reinvested, giving you compounding ability. There's a reason Einstein called compounding the eighth wonder of the world. Use a property investment crowdfunding platform and invest your hard-earned down payment in multiple properties that will help you diversify your investment, rather than investing all your money in one asset and increasing your concentration risk. You can use the money generated from it to re-invest in more properties and build a real estate portfolio or use it to pay for rent or other lifestyle expenses. You can alternatively use the earnings from the investment to subsidise your rent, allowing you to save more, then that can also be reinvested. Renting provides greater flexibility - you can easily move if required, downsize or upsize, depending on your needs. You are not anchored down by a huge debt burden. Freedom and peace of mind are priceless. No financial return will provide these. As an example of the cost of buying, let's take a studio apartment. Assume you are living in it, and you bought it last year for Dh500,000. At the time of purchase, the rent for a similar property was Dh50,000. Assuming you financed it, you would have made a down payment of approximately Dh150,000 (30 per cent), with all the transaction costs. Rents have reduced, and the interest rate has increased. Assuming your interest rate at

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purchase time was 3.75 per cent, your monthly mortgage payment would have been approximately Dh1,800 a month. With an interest rate increase of almost 0.75 per cent, it would have increased to Dh1,945. That's an 8 per cent payment increase, and rates are expected to increase. Yes, your mortgage payment is still below the rent amount, but once you factor in the service charges, maintenance costs, other costs and the cost of the lack of flexibility, the gap narrows. Furthermore, this property of Dh500,000 will end up costing you approximately Dh687,000 after the loan is paid off. It's fair to assume the value of the property will be higher than that, but you would have paid almost Dh188,000 to the bank in interest, and increased your risk of carrying that investment. What if you lost your job in the process, or the interest rate increased substantially? You expose yourself to many other risks. Also, for 25 years, your down payment of Dh150,000 did not earn you a return - rather got you a liability which you had to fund for 25 years. Yes, you saved some money on rent, but when you factor all the other costs in, the savings don't represent good returns on your investment. The writer is co-founder of Smart Crowd. Views expressed are his own and do not reflect the newspaper's policy. Source: Khaleej Times Back to Index

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REAL ESTATE INVESTMENT TRUSTS LOWER ENTRY BARRIER FOR INVESTORS Tuesday, January 22, 2019 Individual retail investors in the UAE are increasingly looking at real estate investment trusts (Reits) to access property portfolios without owning underlying assets. This reduces the risk associated with owning a property and also gives investors exposure to different asset classes. Reits are funds that own income-producing real estate and are legally obliged to distribute a proportion of their income as dividends to shareholders. "Reits are a relatively new and under-represented sector in the UAE. Although there have been Reits listed in the Dubai and Abu Dhabi markets for the past 10 years, there are currently only a handful of active Reits and these represent only a small fraction of all investors," said Craig Plumb, head of research - real estate/property for JLL in UAE (Dubai, Abu Dhabi) and wider Mena region. Equitativa, a Reit manager, established the UAE's first Reit - Emirates Reit - in 2010. The Reit manager has now launched a new product targeted at investors who are keen to pick up assets along China's Belt and Road initiative. The initiative is fittingly named the Belt & Road Reit. "The B&R Reit was launched along with a Chinese firm, Affluent Partners. It will be a diversified Reit which will include hospitality, industrial, warehouse and office assets. The Reit will invest in B&R countries ranging from Japan to the UAE. The Chinese partners will help raise between $200 million to $500 million in the first phase of the Reit," Sylvain Vieujot, group chairman of Equitativa, told Khaleej Times. Equitativa will take out a road show along with its Chinese partners to market the B&R Reit. It will be promoted in the Middle East at a later stage. "The Chinese government has targeted B&R regions for significant economic investment which will result in growth and eventually offer attractive yields," Vieujot explained. Equitativa has two existing Reits with a sole UAE focus. Emirates Reit has a portfolio of offices and schools in the UAE worth $1 billion. It has grown to be the largest in the region. All assets of Emirates Reit are currently in Dubai, but will be diversified at a later stage. The firm launched a second private Residential Reit in Abu Dhabi. It has a portfolio of residential property in Dubai, Abu Dhabi and Ras Al Khaimah worth Dh1.2 billion. "The prime attractions of Reits are the liquidity they offer and the relatively small entry or ticket price," added Plumb. Opting for listed versus unlisted Reits depends on the investor's risk appetite. "Reits are listed on the stock market and allow investors to buy and sell shares in any volume whenever they wish. Reits provide ordinary investors with an opportunity to enter a market they otherwise could not afford, for example larger commercial real estate assets, and the prospect of targeting sectors they see as holding strong future prospects under the guidance of expert fund managers. They could provide investors with a simple way to obtain income from property without the need to buy an actual property itself," said Haider Tuaima, head of real estate research, ValuStrat. As per Nasdaq Dubai, Reits have produced a steady stream of income through a variety of market conditions with yields significantly higher on average than other equities.

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Equitativa, which has expanded its fund manager role to India, Pakistan and Morocco, believes the current soft UAE property market offers very exciting opportunities.

"The right time to buy property is when the market is at its bottom. The Reit market in the UAE has a lot of potential for growth. However, it is challenging to launch a Reit at the moment. The market is still in a nascent stage," added Vieujot. The fund manager said it has increased revenue from all assets in its portfolio, although not by a huge margin. "The secret of our success is compelling products, an active management strategy and selective approach to asset acquisitions," the chairman added. Since 2006, regulations have permitted Reits in the DIFC. Recently, the Dubai Financial Market published rules on listing and trading of investment funds and Reits and also signed an MoU with the Dubai Land Department to encourage and facilitate opportunities for real estate companies in the financial market. "The market is well regulated in both Dubai and Abu Dhabi. Although the regulatory framework is relatively recent, it provides an adequate framework rather than a constraint to new trusts," said Plumb. Listing the disadvantages of Reits over traditional brick-and-mortar' investments, Tuaima said they cannot be directly leveraged by way of a mortgage and some of the funds have limited options for exit. "For publicly traded Reits, an investor might have to face volatility as share prices are greatly influenced by market conditions which may not reflect the actual value of the properties. Reits may also require some management and transactional fees which could potentially lower investor pay-outs or dividends," Tuaima added. Plumb warned investors to watch out for the quality of underlying assets in Reits. "A number of these funds have so far only purchased a small number of assets, so they do not offer the benefits of diversity offered by larger trusts overseas. Like all investments, the returns available from Reits will be dependent on market conditions. The currently depressed nature of market conditions in the UAE will act as a constraint on the performance of Reits," he concluded. Source: Khaleej Times Back to Index

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BUY DUBAI HOUSE, GET FREE TRADE LICENCE Wednesday, January 23, 2019 Emaar in partnership with the Dubai Multi Commodities Centre has launched almost 200 units in an under- construction building in Dubai Hills Estate. Those who pay 20 per cent of the apartment price at Executive Residences will receive a free three-year renewable business licence (estimated to be worth Dh130,000), a free three-year renewable family residency visa and 100 per cent business ownership. The owner can also apply for two employee visas with every trade licence. This is a product targeted at entrepreneurs and SMEs and is touted to be a game-changer in the UAE real estate industry. Entrepreneurs can now do away with the need to rent office premises. "It will give buyers the freedom to work flexible hours and perhaps set up a business they can run from home. The offer is exceedingly attractive to families with young children as it will give parents the option to spend more time at home and be flexible with child care," said Lewis Allsopp, CEO of Allsopp & Allsopp. A one-bedroom apartment is priced below Dh1 million while two-beds range from Dh1.2 million to Dh1.6 million. The building is slated to be ready by 2021. "It helps you to achieve cost savings. The product is targeted at SMEs, who contribute 80 per cent of the economy," said Kunal Puri, founder and managing director of La Capitale Real Estate. Earlier, business owners had to show their office tenancy contract as proof to get a trade licence. In this project, they can do so with their house Ejari certificate. "People are already waiting in queue to buy with credit card authorisation. This kind of freedom has never existed in the market before. It is a master stroke by the developer," added Puri. With the Executive Residences, entrepreneurs and startup owners have a chance to run a home-based business legally. Source: Khaleej Times Back to Index

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DUBAI AMONG 10 BEST CITIES TO LIVE IN 2019 Wednesday, January 23, 2019 Thanks to its natural and built environment, strong online recommendation and good quality of life, Dubai has been rated among the world's top 10 best cities to live in 2019. Along with Dubai at number 9, two other Gulf cities Abu Dhabi and Doha have been incorporated in the 100 best cities to live this year with 40th and 44th positions respectively, says Resonance Consultancy's 2019 report of "World's Best Cities". Apart from the fact that Dubai is the best city in the Middle East, the emirate is rated higher than San Francisco, Los Angeles, Madrid, Hong Kong, Frankfurt, Sydney and other major cities across Europe, the US and Asia. Globally, London topped followed by Paris, New York, Tokyo, Barcelona, Moscow, Chicago, Singapore, Dubai and San Francisco making up the top 10 positions. The report is based on six parameters - online recommendations; quality of city's natural and built environment; attractions and infrastructure; thriving business sector entrepreneurialism; immigration rate and diversity of the city; and arts, culture, entertainment and culinary scene in the city. The emirate fares even better when it comes to city's natural and built environment where it is ranked 2nd best city globally and in online recommendation category where the emirates is rated 4th most recommended city worldwide. "The emirate comes in at #2 in the world in our deep Place category, for which we look at influential factors like crime rate, neighbourhoods and landmarks, weather and parks and outdoor activities. Dubai ranks #6 in weather and finished second to only Hanoi for parks and outdoor activities," said Chris Fair, president, Resonance Consultancy. According to the latest Cost of Living Index data by Numbeo released earlier this month, Dubai became even more affordable in 2019 compared to the previous year with rentals, prices of groceries and restaurants declining on a year-on-year basis. The emirate was rated 217th costliest city in 2019 as compared to 210th in the previous year. Taimur Khan, research manager, Knight Frank, said given the broad range of pull factors Dubai hosts, it is little surprise that the emirate is ranked in the top 10 of the world's best cites. "The city is home to some of the world's most spectacular architecture, a top 10 global financial centre, one of regions most diversified economies, over 200 private schools and world-class lifestyle and amenities and all within a tax free environment - these factors are helping draw in expats from all over the world," Khan said. He further explained that Dubai's offer of a global business hub combined with an almost unparalleled lifestyle offering has attracted millions to relocated to Dubai from all corners of the world. This is made easier when the location of Dubai is such that you can access two-thirds of the population within eight hours. "As the city develops in line with the leadership's plans, we envisage its rise up the rankings will continue in the future."

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According to Euromonitor International's Top 100 City Destinations 2018 for most attractive cities to international tourists, Dubai stood at 7th position, surpassing New York, Kuala Lumpur and many other European and

American cities. The emirate is estimated to attract 16.7 million tourists in 2018 as compared to 15.8 million in the previous year. The top-ranked city in the Middle East, Dubai targets to attract 20 million visitors in 2020 when it hosts World Expo. Source: Khaleej Times Back to Index

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DUBAI SOUTH INVESTING DH2BN IN EXPO 2020 HOMES DISTRICT, CHIEF EXECUTIVE SAYS Wednesday, January 23, 2019 Dubai South Properties, which is building real estate at the area encompassing Al Maktoum International Airport and the Expo 2020 Dubai site, expects to invest Dh2 billion in residential schemes by the end of next year, its chief executive said. Around half of that has already been spent building 6,000 homes over the past two years, to be delivered by 2020. The government-owned entity has also spent an additional Dh1bn on infrastructure and utilities to serve Dubai South Residential City as it is developed over the coming years. “We are very careful with what types of properties we bring to Dubai South to make sure there is no saturation – we do not want to jeopardise what else is going on in the market,” Mohammed Al Awadhi said in Dubai on Wednesday. Together with third-party developers building smaller clusters of homes, the total investment to 2020 “could easily reach Dh2.5bn”, the chief executive said during an event to update reporters on the scheme’s progress. Dubai South, formerly known as Dubai World Central, was launched in 2006 as the world’s first “aerotropolis”, with Dubai’s second-largest airport, Al Maktoum, at its core. The programme is intended to be a new urban centre for Dubai, and has seven districts spanning 145,000 square kilometres, including a logistics zone close to the airport and an office development. Several projects at Dubai South Residential City have already been completed or are nearing completion, bringing thousands of new homes to the emirate, Mr Al Awadhi said. The Pulse, a freehold mixed-use community comprising 1,200 new homes, is set for handover from mid-2019, while Crew Village, a luxury shared-living development built on behalf of clients, is set to be completed in 2020. Two more communities, The Villages and Park Lane, have been designed and will be built from this year. The company is seeking joint venture partners to bring the rest of phases one and two – around 30 per cent of the total Residential City masterplan – to fruition, the chief executive said. He told The National that Dubai South Properties intends to announce a new mixed-use project spanning almost 1 million square feet next month, following an agreement with an unnamed developer. He declined to reveal further details. Residential City Retail – a shopping district – will bring 30,000 square feet of retail space for leasing by 2020, with ambitions to develop a total 18,581 square metres in the longer term. There is enough land at the site to design a third and fourth phase after Expo 2020, the chief executive said. Outside Residential City, plans are under way to provide at least 2,000 hotel rooms across the wider Dubai South district before Expo 2020. And the first properties at Sakany, a 22-building staff accommodation complex

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intended to house 17,000 workers in time for the Expo, have been completed. An additional residential scheme, Sakany One, will provide cheaper housing with a shopping centre nearby.

Dubai has witnessed a real estate market decline in the past three years on the back of lower oil prices, which have crimped consumer purchasing power and driven a fight for affordability across the Emirates. Residential sales and rental prices have fallen, but developers are bringing new, cheaper products to market to meet demand. “Now is the time for developers to be realistic and provide true value for money,” Mr Al Awadhi said. “Cautious”, smaller developers are retreating right now, which is bringing greater equilibrium to the market and resulting in higher-quality product, he said. Source: The National Back to Index

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HOMEFRONT: CAN I ASK FOR A RENT REDUCTION IF MY VILLA IS ALREADY BELOW MARKET RATE? Wednesday, January 23, 2019 I’ve checked the Real Estate Regulatory Agency (Rera) calculator and we are paying below the market rate but I still fancy asking for a discount on our rent as everyone else is. We are in a Jumeirah villa and there are many empty places available nearby. What are my chances? Any tips? MS, Dubai Despite paying less than the Rera-calculated market rate, there is nothing stopping you from speaking to your landlord and trying to negotiate a new rate. It is definitely a tenants' market at the moment but you must be prepared to move out should your landlord not agree with you. The outcome I guess, depends on how forceful you are at the negotiating stage. In terms of how to approach it, I suggest you organise a face-to-face meeting. At this encounter, have as much information available to justify what you are requesting, only this way will the landlord understand that the request could be justified. Ultimately, weigh up the cost of moving should it come to that, not just in terms of money but hassle, time off work etc. If you will get a better deal elsewhere, obviously you will have to look at this. The alternative could also be to build on a good landlord/tenant relationship, which sometimes is worth more than paying below market rate. I own a townhouse in Dubai. I have rented it out and the tenancy contract will end soon. I intend to move in the property when the contract ends. The regulations say I need to give a 12-month notice to the tenant, which should be a notarised letter. How and where do I get a notarised notice or letter? Is there any format for this? NG, Dubai Law 33 of 2008 amended law 26 of 2007, which is the law that governs the relationship between landlords and tenants. It states that if the owner wishes to recover the property for use by themselves personally, or by their next of kin of first degree, they must prove they do not own another suitable alternative property for that purpose. If they don't have a suitable alternative, the landlord must notify the tenants with reasons for the eviction at least 12 months prior to the date of eviction, subject to the notice being sent via the notary public or registered mail. There are two points to consider here: the first is when you actually serve the notice? According to the wording, the owner can demand eviction upon expiry of the contract after giving at least 12 months' notice. Most judges suggest giving notice at the time of the next renewal, thus the tenant has one more year in the property before moving out. In some cases, landlords have given the notice of 12 months at any time during the agreement but not all judges will actually allow this, however it remains subject to the given judge's decision at the time. The second point is to prove the landlord does not own another suitable property. For this, perhaps a note from the Dubai Land Department confirming this would suffice. The notarised letter can be obtained at any government Happiness Centre, or I would recommend the Al Barsha court next to the Gold and Diamond park. There you can visit the notary public section where the task can be completed for you and sent via registered mail.

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Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 34 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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MORE JOBS AND SOLAR-POWERED VILLAS TO CROP UP IN UAE'S GREEN ECONOMY Wednesday, January 23, 2019 The UAE's initiatives to develop a green economy will create 277,000 jobs in the country in fields related to solar, water, energy and waste reduction activities by 2030, according to Dubai Carbon's Centre of Excellence's chief executive. For each dollar spent on renewable energy, the green gross domestic product multiplies by seven times, Ivano Iannelli said on Wednesday on the sidelines of a State of Green Economy report launch. Dubai Carbon, which offers advisory services as well as monitors the levels of carbon emissions in the emirate, is owned by the Dubai Electricity and Water Authority, Emirates National Oil Company, Dubal Holding and Empower. "We calculated that there's a pool of 277,000 jobs that will be implemented by 2030," he said. "These are jobs required specifically through the implementation of the country's green initiatives. It's all related to green practices, green infrastructure on the roads, charging points for electrical vehicles, anything which has green component." Dubai is set to exceed its target of generating seven per cent of its energy needs from renewable energy by 2020 and will hit eight per cent next year through the implementation of green initiatives such as solar-powered villas, according to Dewa chief executive Saeed Al Tayer. Dubai is fitting 5,000 villas out of the 44,000 built-up villas in the emirate with solar panels as it pursues a target for 10 per cent penetration of solar rooftops in occupied villas by 2020, Mr Iannelli said. "Solar is no longer a taboo, its an appliance: you buy your fridge, stove, you buy you solar kit, so if you move villas, you get your appliance with you, so it’s been made to fit the nomadic culture of the country," he said. Last year, Dubai installed solar kits on 1,200 villas in Hatta that were commissioned in November with the aim of reducing 80 per cent of electricity consumption. The initiatives are in line with the Dubai Ruler Sheikh Mohammed bin Rashid's 50-Year Charter for the development of the emirate, which outlines plans for the improvement of citizens and residents' lives. One of the nine articles of the charter states that at least a tenth of Dubai homes will be self-sufficient in terms of water, food and energy through the creation of a new economic sector and in the hopes of helping to preserve the environment. The villas are part of a project by Dewa and Etihad Esco, the Dubai-based energy efficiency regulator, in consultation with the Dubai Carbon Centre of Excellence. Etihad Esco is seeking to execute multibillion dollar worth of projects that will generate Dh500 million worth of energy savings from retrofitting and solar rooftop deployment by 2030, it said last year. Source: The National Back to Index

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SAUDI ARABIA UNVEILS INVESTMENT PRINCIPLES AS IT COURTS FOREIGN INVESTORS Wednesday, January 23, 2019 Saudi Arabia unveiled seven investment principles that include equality for foreign and Saudi investors as the Arab world’s biggest economy looks to attract global conglomerates to boost foreign direct investment. Established through a royal decree, the seven-point agenda will support the development of a competitive investment environment in the kingdom, which is going through a massive economic overhaul, the Saudi Arabian General Investment Authority said in a statement on Tuesday. “The rapid pace of economic transformation in the coming years is opening exciting investment opportunities – both in Saudi, a G-20 economy opening up to international businesses, and in the broader Middle East,” said Ibrahim Al Omar, governor of Sagia. “These principles will play an important role in underpinning the reforms that are making it easier for investors to access these markets,”. Saudi Arabia, the world's biggest oil exporter, is undergoing a series of social and economic reforms to cut its dependence on the sale of hydrocarbons. The kingdom is focusing on increasing the contribution of its non-oil economy to gross domestic product by cultivating a local manufacturing industry and attracting FDI. The non-oil sector accounts for about 40 per cent of GDP at present. The collapse of oil prices in mid-2014 from a peak of $115 per barrel to lows of below $30 per barrel in 2016 accelerated the momentum to overhaul the economy. Under its Vision 2030 programme, Saudi Arabia has set the target of increasing foreign investment to 5.7 per cent of the country’s GDP from 3.8 per cent. Last year, FDI recorded a 127 per cent year-on-year growth, according to Sagia, which did not provide further details. The World Bank has ranked Saudi Arabia as the fourth-largest reformer within the G-20 in its latest Doing Business report. The seven principles that will act as guidelines for current and future investment regulations include: ensuring equality between Saudi and foreign investors; protection of investments in compliance with the laws in Saudi Arabia; enabling the sustainability of investment and maintaining transparency when addressing investors complaints. The agenda also addresses: access to equal investment incentives and implementing transparent, non- discriminative criteria for eligibility; implementing social and environmental standards; facilitating access procedures for foreign workers and their families, and ensuring the transfer of knowledge, technology and enhancement of local human capital. Sagia, the kingdom’s state-backed inward investment agency, is also working with the World Bank to improve the country’s global ranking in terms of ease of doing business and has identified 400 reforms that could help it attract more investments. About 40 per cent of those measures have been completed so far, Mr Al Omar said in October at the Future Investment Initiative conference in Riyadh. The establishment of a commercial arbitration centre, allowing investors to start their business within 24 hours through Sagia’s online portal and cutting containers’ clearance time at ports from two weeks to 24 hours, are among the reforms that have been carried out, he said.

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Saudi Arabia is ranked 92nd among 190 countries, ahead of states such as India, the Philippines, Argentina and Lebanon, according to the 2018 World Bank rankings.

Source: The National Back to Index

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DAMAC CHAIRMAN SAYS 2018 AND 2019 WILL 'NOT BE EASY' Thursday, January 24, 2019 The next two years will “not be easy” for the company, according to Damac chairman Hussain Sajwani. Speaking to CNBC at the World Economic Forum in Davos, Sajwani said that he views 2018 as having been “a difficult year”. “Prices have come down, sales have come down. I think ’19 and ’20 are going to also be not easy years,” he said. “I think we are at the bottom, from a price point of view, but it will take at least two years to absorb the supply.” In the long run, however, he added that Dubai’s economy is “very resilient”. “It’s always going to go through the cycle. As a free capital economy, people are going to overbuild, and then going to catch up,” he said. “The leader [Sheikh Mohammed bin Rashid Al Maktoum] is very open-minded…he doesn’t want to restrict the supply or the demand. He says ‘let the supply demand naturally take its place’.” During the interview, Sajwani said he plans to invest as much as $1.3 billion in London’s real estate market, taking advantage of a “great opportunity” in which the weaker pounds makes properties cheaper. Additionally, the chairman said that DAMAC is “really quite interested” in striking deals in American cities including Miami, Boston, New York, as well as Toronto in Canada. China – where Sajwani said he has met with 20 top property developers – is a market he believes is “very closed”. “The property market in China is very much politically controlled, so the land is controlled by the government. Even the permission is controlled by the government, and you need very big Chinese politically connected investors,” he said. “If we ever think of China, we’d probably buy some stocks in the public market. That’s all.” In November, Damac properties announced revenues totalling AED 5.2 billion ($1.4 billion) and net profit of AED 1.1 billion ($299.4 million) in the first three quarters of 2018. In the same period, Damac said it delivered 3,800 units, double the figure reported in the same period of 2017. Source: Arabian Business Back to Index

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UAE RETAIL GIANT OPENS NEW $117M OMAN MALL Wednesday, January 23, 2019 UAE-based mall operator Majid Al Futtaim has opened its fourth shopping and leisure destination in Oman. The launch of City Centre Suhar brings the total number of malls within Majid Al Futtaim’s shopping malls portfolio to 24. With an investment of OR45 million ($117 million), the mall houses international and regional retail stores such as The Body Shop and Max Fashion, entertainment and leisure experiences, and varied dining options, the company said. City Centre Suhar will service a population of 570,370 residents in the burgeoning port city and industrial hub, Suhar, and surrounding districts, Liwa and Shinas, it added. The mall has added 35,301 sq m of gross leasable area to the sultanate’s booming retail sector and features 129 outlets, a 7,348 sq m Carrefour Hypermarket, a nine-screen VOX Cinemas, Magic Planet and over 1,000 available parking spaces. The opening of City Centre Suhar is part of Majid Al Futtaim’s strategy to increase the company’s total investment in the sultanate to OR705 million by 2020. Source: Arabian Business Back to Index

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BAHRAIN TO GET 'SIGNIFICANT' GDP BOOST FROM TOURISM: EXPERT Thursday, January 24, 2019 The tourism sector could create a “potentially very significant” boost to Bahrain’s economy, according to Dr. Jarmo Kotilaine, the chief economic adviser of the Bahrain Economic Development Board. In an interview with Arabian Business, Dr. Kotilaine said that tourism is an opportunity “on multiple levels” for Bahrain, which has traditionally been a weekend destination for travellers from other parts of the GCC, principally Saudi Arabia. “One of the interesting questions there has been, and remains, how can we achieve more? How can we give people more reasons to come back, to do more things, to potentially stay for a little bit longer?” he said. “That is driving infrastructure development in that space.” Dr. Kotilaine added that there has been a “growing emphasis on better articulating and defining the tourism identity of Bahrain” and highlighting its long history and variety of offerings. “It’s almost a microcosm of the region. It has a sort of authenticity, and you can get glimpses of what this region was like decades ago,” he said. “You have the makings and elements of quite an interesting portfolio of offering…..there is still a lot of untapped opportunity. Additionally, Dr. Kotilaine said that attracting tourist inflows from other markets – rather than the traditional GCC source markets – could “significantly” increase tourism’s contribution to GDP, as well as encourage entrepreneurship in Bahrain and create jobs. Speaking at a recent event, Bahrain Tourism and Exhibition Authority CEO Sheikh Khalid bin Hamoud Al Khalifa said that Bahrain attracted 12 million visitors in 2018, a figure that is expected to rise to 14.6 million in 2022. He added that tourism’s share in Bahrain’s economy was 6.5 percent, which he believes will rise to 8.3 percent by 2022. In April 2018, Ali Ghunam Murtaza, the Economic Development Board’s director of real estate, tourism and leisure business development, told Arabian Business that the tourism and hospitality sector will contribute “double digits” to Bahrain’s GDP over the next several years. Source: Arabian Business Back to Index

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OMAN TOURISTS FALL 2.8% IN 2018 DESPITE RISE IN HOTEL REVENUES Wednesday, January 23, 2019 The total number of guests in Omani hotels declined by 2.8 percent to 1.35 million in the first 11 months of 2018 compared to the year-earlier period. The fall in visitors came despite upscale hotels reporting positive spikes in revenues for the period, recording a total revenue of OR188.7 million ($488.9 million), up 8.5 percent, according to figures released by Oman's National Centre for Statistics and Information (NCSI). The data also showed that hotel occupancy rates increased by 0.9 percent to 57 percent from January-November 2018. Europeans topped the list of visitors to the sultanate with 476,875 - a decline of 7.8 percent over the same period of 2017. This was followed by Omani guests (369,373 - down 3.5 percent), and 180,840 tourists from GCC countries, also down 8.8 percent compared to last year. African, Asian, Oceanian and American visitors all rose by 15.8 percent, 17.3 percent, 3.3 percent and 0.8 percent respectively during the 11-month period, the data also showed. Source: Arabian Business Back to Index

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DUBAI BILLIONAIRE, FOUNDER OF DAMAC PLANS TO INVEST $1.3 BILLION IN LONDON Wednesday, January 23, 2019 Damac Properties plans to take advantage of the weak pound to invest as much as £1 billion (Dh4.79 billion or $1.3 billion) in London’s real estate market. Chairman Hussain Sajwani said the Dubai-based property developer is looking at deals with values from £500 million to £1 billion in central London. Even if the UK left the European Union without a trade deal, which some analysts predict would result in sharp drops in the pound and asset values, Sajwani said he would still invest. Damac has more than $1.6 billion in cash, he added. “If it was a hard Brexit there will be more opportunities and we would be looking to take advantage of that,” Sajwani said in a Bloomberg TV interview at the World Economic Forum in Davos on Wednesday. “London is London and you buy when there is blood on the street.” Damac, facing a tough real estate market in Dubai, is looking to trim costs and pay down debt of around $500 million by the end of this year, Sajwani said. The developer is also focusing on international acquisitions as a recovery in Dubai may not materialise before the end of 2020, he said. Dubai residential property prices dropped 6.9 per cent on average in 2018 while rental values fell 7.9 per cent, according to property advisory firm Cavendish Maxwell. The city is suffering from a glut of properties being completed at a time when the weak jobs market is curbing demand. “I hope by the end of 2020, after the Expo, the market starts recovering,” Sajwani said. “Naturally prices have come down and sales have come down” but a total of about Dh20 billion ($5.4 billion) of property sales in Dubai last year is encouraging, he said. Damac’s stock slumped 54 per cent last year along with other developers such as Emaar Properties PJSC, which dropped 40.5 per cent during the same period. Both fared far worse than Dubai’s main benchmark. Source: Gulf News Back to Index

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RISE OF A NEW CITY NEAR EXPO SITE: DUBAI SOUTH TO ATTRACT 50,000 RESIDENTS Wednesday, January 23, 2019 Dubai’s new ‘city’ being created next to Al Maktoum International Airport and the Expo 2020 venue should have a resident base of 50,000 and more by the time the event opens in October 2020, senior officials say. And that’s just the start as the residential component of Dubai South in Jebel Ali takes shape. The master developer is currently working on phases one and two of Residential City, which “only makes up 35 per cent of the seven square kilometre City,” said Mohammad Al Awadhi, CEO of Dubai South Properties. “That’s already more than the size of Downtown Dubai [which covers two square kilometres]. “We are taking an extremely cautious approach to taking on new projects, and one thing we don’t want to do is saturate the market with too many [homes]. The market’s trying to find its equilibrium and [some of the] smaller developers have stopped. We will be ready to offer more when the market’s ready.” One such project with a new third-party developer could come about as early as next month. There is a lot of filling up at Dubai South, which the Dubai Government has conceived as a city-within-a-city anchored by what will be the world’s largest airport. Creating the destination will also free up population density within Dubai’s existing residential clusters, through the creation of the “southern corridor” in Jebel Ali. Dubai South’s land mass is a whopping 145 square kilometres, and divided into mini-cities such as for Residential, Commercial, Aviation, Logistics and Golf, apart from the airport and Expo 2020 site. Currently, Dubai South hosts 6,000 residents living in shared staff accommodation at Phase 1 of “Sakany” cluster in Logistics City located adjacent to Residential. A second phase will add another 11,000 residents into the leasing portfolio. Within Residential City, 6,000 homes will be ready by October 2020, adding a likely resident base of an additional 18,000-24,000 people. At Golf City, Dubai South has a joint venture with Emaar to build 50 per cent of the land under the “Emaar South” banner. Emaar, incidentally, has just released three- and four-bedroom villas starting from Dh1 million, while the golf course should open for teeing off in 2020. Other developers could be brought on board for the remaining portion, senior officials added. Even as Dubai South builds up on land, its management will be looking at what’s happening in the skies over Al Maktoum International Airport. Once its operations reach optimum capacity, this can be the catalyst pulling in more residents and businesses to Dubai South. (The airport in full operational mode is projected to hadle a passenger traffic of 220 million annually and 16 million tonnes of cargo.) At Residential City, about Dh2.5 billion has been pumped in on infrastructure and the various projects. The original masterplan was tweaked to create more residential options and with the rest given over to retail, other community-specific requirements such as healthcare and education. The other mini-cities too are fairly well-advanced on the infrastructure side.

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On the commercial real estate side, “A boulevard avenue will be formed where some of the biggest businesses can set up their own standalone regional headquarters,” said Al Awadhi. “We have signed the first and should be making an announcement soon. “We are building around what will be the aviation capital of the world and featuring the world’s largest airport. The intention is to create a true “aero-tropolis”.” Connecting all points inside the 145 square kilometre Dubai South A metro or tram line connecting all the “mini-cities” within the 145 square kilometre Dubai South development is part of the masterplan. When to flag off the launch of the project has not been decided as yet. “A decision on when to launch a transport network connecting points inside Dubai South could come once the extension of RTA’s Red Line all the way to the Expo 2020 venue is completed,” said Mohammad Al Awadhi, who heads the real estate arm. “Whether the transport connectivity should happen via a metre or tram line can also be decided at the time. “By then, the [Al Maktoum International] Airport too would have moved closer to full operational mode.” The way to finance such a transport network could be a mix of funding from Dubai South as master-developer, RTA and individual developer-investors with interests in the various clusters being set up there. Source: Gulf News Back to Index

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GLOBAL CEOS MORE PESSIMISTIC ON ECONOMIC GROWTH IN 2019, SAYS PWC Saturday, January 26, 2019 Global business leaders are less optimistic about economic growth prospects than they were this time last year, as shrinking fiscal stimuli and ongoing trade tensions prompt uncertainty and caution, a PwC survey shows. Almost 30 per cent of those surveyed said they believed global economic growth would decline in the next 12 months, approximately six times more than the 5 per cent of respondents in last year’s survey – a record jump in pessimism, the global consultancy said in its 22nd annual CEO outlook survey. In the 2018 survey, there was an increase in optimism levels, with 57 per cent of respondents predicting rising economic growth, compared to 29 per cent the previous year. Some 42 per cent still see an improved economic outlook in 2019, according to the latest survey, which collected responses from 1,378 chief executives from across 90 territories. “With the rise of trade tension and protectionism it stands to reason that confidence is waning,” said Bob Moritz, global chairman at PwC, in a statement. Chief executives’ views of the global economy are mirroring outlooks from key economic agencies, which are adjusting their forecasts downward in 2019, he added. The International Monetary Fund, for example, now projects global gross domestic product to grow by 4.5 per cent in in 2019, down from 4.6 per cent in 2018. It is 0.2 per cent lower from than the Washington-based lender’s last forecasts made in October. “What we have forecast is a very modest slowdown ... but what we’re seeing on the horizon are bigger risks and they’re closer to us,” IMF managing director Christine Lagarde told CNN during the World Economic Forum in Davos this week. "A few rooms have been fixed a bit but there’s a lot of work that needs to be done.” The global financial sector has significantly improved in terms of regulatory architecture, capital ratio requirements for banks and overall exposure to financial risk, she added. However, there remain significant macroeconomic risks ahead, including the worsening trade environment due to “the inability of the big players to find an arrangement on trade and tariffs and how they're going to deal with each other.” Policy uncertainty and skills gaps in some markets compound the more negative outlook. Global chief executives’ views on global economic growth are more polarised in this year’s survey compared to 2018, according to PwC, but overall they are trending downward. The most pronounced shift was among business leaders in North America, where optimism dropped to 37 per cent, from 63 per cent in 2018 due to ongoing trade tensions and the tapering of the US fiscal stimulus rolled out in 2018. The Middle East also saw a big drop in business sentiment and prospects of growth, to 28 per cent of total respondents from the region, from 52 per cent last year, “due to increased regional economic uncertainty”, PwC said. The drop in confidence among leaders has impacted their own companies’ international expansion plans, the survey showed. The US narrowly retained its position as the top market for growth with 27 per cent of respondents reporting plans to expand in this market, down from 46 per cent in 2018.

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The second most attractive market, China, also saw its popularity fall to 24 per cent, down from 33 per cent last year . China’s economy grew at its slowest annual rate since 1990 in the fourth quarter of 2018.

Overall, India saw the biggest increase in popularity among business leaders in this year’s survey. It recently surpassed China as the fastest growing large world economy. Source: The National Back to Index

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MIDDLE EAST MERGER AND ACQUISITION DEALS VALUE CLIMBS 50% BOOSTED BY MEGA TRANSACTIONS Thursday, January 24, 2019 The value of merger and acquisition deals in the Middle East soared 50 per cent year-on-year in 2018 as the number of transactions valued at $1 billion (Dh3.67bn) or more climbed, with the UAE claiming the top spot. Although the number of total Middle East deals at the end of last year was almost identical to 2017, the rise in value was spurred by deals such as Saudi British Bank’s $5bn merger with Alawwal Bank in Saudi Arabia, law firm Baker McKenzie said in its latest report on global M&A activity released on Wednesday. In total, 10 deals were valued at more than $1bn in 2018 where the target and/or acquirer was based in the Middle East. "Despite challenging global market conditions in 2018, companies continue to see the value in M&A for growth and expansion, but also appear to be divesting assets to focus on core or more profitable businesses,” said Omar Momany, UAE head of corporate and M&A at Baker McKenzie Habib Al Mulla. "There was a significant amount of consolidation in the Middle East in 2018, particularly, in the financial services sector.” Geopolitical headwinds and regulatory risk may weigh on dealmakers’ minds, the law firm said, although legislative reforms for the foreign direct investment regimes in the region could balance the trend and attract more direct investments in 2019. In terms of inbound deals the value of cross-regional deals targeting the Middle East increased to $11.3bn in 2018 from $9.4bn the previous year. Deal volume, however, fell by 13 per cent year-on-year with a total of 92 inbound transactions in 2018. The UAE, the Arab world's second biggest economy, remained the most attractive target country to overseas investors last year, with a total of 59 inbound deals valued at $7.7bn, followed by Saudi Arabia with 12 transactions amounting to $1.05bn The majority of inbound cross-regional deals were focused on the energy and power sector, with a total of 20 transactions valued at $8.7bn as the hydrocarbon-rich sovereigns in the region continue to diversify their economies, according to the study. The value of outbound cross-regional deals from the Middle East increased by 53 per cent year-on-year to $17.5bn in 2018. The UAE again remained the most active acquirer country both by volume and value, with a total of 89 transactions valued at $9.4bn. Global merger and acquisition deal values soared in 2018, rising by 19 per cent to $4 trillion, although deal volumes dropped by 8 per cent year-on-year, according to the report. Source: The National Back to Index

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DUBAI PRIME PROPERTY SALES FALL 11% TO $10.6BN IN 2018 Friday, January 25, 2019 Sales in Dubai's prime residential market totalled AED39 billion ($10.6 billion) in 2018, about 11 percent lower than the previous year, according to new analysis by Luxhabitat. The UAE luxury real estate firm said the top three areas in terms of sales volume were Business Bay (AED6.9 billion), MBR City (AED6.3 billion) and Downtown Dubai (AED5.4 billion). Its report said average price per square foot for villas that transacted in 2018 increased, indicating interest for higher end and better quality units. The report also revealed that more than 5,454 villas and 25,595 apartments were sold in 2018 across the residential market, with the volume of transactions in the secondary market standing at AED74.7 billion, compared to AED82.6 billion in 2017. Off-plan transaction volumes dropped 34 percent from the previous year to AED23 billion, it noted. The report added that demand for secondary market villas has doubled as resident families look to move into villa communities, with Arabian Ranches 2 seeing a 47 percent increase in sales from the previous year. Off-plan investments in apartments remained steady while the data also indicated that it also more expensive to buy off-plan properties than in previous years, a 8.4 percent annual increase. Luxhabitat said: "Developers will need to offer more incentives than at their current levels. As the supply increases, there is a larger pool of investments to choose from. 2019 looks to be a buyer’s market, with further price stabilisation." Sales director Andrew Cleator said: “In my opinion 2019 will continue to be a buyer’s market with great opportunities for both investors and end users alike. Saying that price reductions have already started to wane with some areas showing signs of stabilising. "For sure this year we will see even more bullish developer sales incentives being offered. Last year we witnessed developers offering DLD fee waivers, free initial period service charges and very attractive post completion payment plans. "The latter was partly due to the UAE central banks reluctance to increase the mortgage loan to value ratio, but I strongly believe this will be addressed in the coming months as part of the current government stimulus plan." He said other key drivers to positively affect the market in 2019 include the current interest from international buyers and institutional investors especially from China. Luxhabitat defines the prime residential market 15 key areas including Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Dubai Creek Harbour, Business Bay, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid city, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers, Palm Jumeirah, The Lakes, Meadows, & Victory Heights. Source: Arabian Business Back to Index

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DEVELOPER BREAKS GROUND ON $272M MIXED-USE PROJECT IN DUBAI Friday, January 25, 2019 UAE-headquartered developer Seven Tides has broken ground on SE7EN City JLT, its first mixed-used development in Jumeirah Lake Towers (JLT), in Dubai. The project, valued at over AED1 billion ($272 million) and due for completion during 2021, completely sold out phase one in less than a week following its launch in May, selling 661 apartments, valued at AED301 million. Sales now total over 800 units, the company said in a statement. “To sell out phase one of our project in less than one week is remarkable, particularly given the tough trading conditions many developers are facing,” said Abdulla Bin Sulayem, CEO, Seven Tides. Spread across 3.5 million square feet and situated within Cluster Z in DMCC, the development is made up of 2,744 units – with its residential element consisting of 2,617 studio, one, two and three-bedroom apartments as well as a limited number of duplex apartments, plus 78 hotel rooms. The tower also features a gym, health club, infinity pool, children’s pool, a roof garden, cafes, other dining options, a large retail offering featuring 48 shops. Studio apartments start from AED354,000. Source: Arabian Business Back to Index

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NEW FERRY SERVICE LAUNCHED TO LINK DUBAI SHOPPING MALLS Saturday, January 26, 2019 Dubai's Roads and Transport Authority (RTA) has commenced the operation of an exclusive Dubai Ferry route linking The Dubai Mall and Dubai Marina Mall. Inaugurated in the presence of senior officials of RTA and Emaar, the new Dubai Ferry service links two of the most popular lifestyle destinations in the city. The new service builds on an earlier agreement signed between RTA and Emaar's At the Top, Burj Khalifa to promote the sale of Dubai Ferry tickets to the popular tourist attraction in the iconic tower. The ferry service, which takes about 1 hour 20 minutes one-way, will offer residents and tourists a new perspective to the city's skyline. Tickets can be purchased from At the Top, Burj Khalifa, from the guest service desks at The Dubai Mall and Dubai Marina Mall or www.burjkhalifa.ae as well as from the ferry stations. They are priced AED68.25 per adult and AED52.5 for children from 5-12 years. Ahmed Bahrozyan, CEO of Public Transport Agency, said: "The marine transport network of Dubai is gaining considerable interest among visitors and residents, especially following the ongoing promotion of the Dubai Ferry service by At the Top, Burj Khalifa. The new service will add to the delight of users, who can cover two of the most popular malls effortlessly while enjoying scenic vistas of the city." Ahmed Al Falasi, executive director of group operations at Emaar Properties, said: "The new ferry service is a remarkable addition that will add to the touristic attractions in the city." RTA has a fleet of nine ferry boats shuttling between eight stations including Ghubaiba, Marina Mall, Jaddaf, Water Canal, Sheikh Zayed Road, Al Wajeha Al Maeyah, Marasi and the Dubai Design District as well as provide charter service. Source: Arabian Business Back to Index

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PLANS REVEALED FOR WORLD'S LARGEST CROWNE PLAZA HOTEL IN MAKKAH Sunday, January 27, 2019 InterContinental Hotels Group (IHG) has signed a management agreement with Bougary Holding Co to develop Crowne Plaza Makkah Beban. Scheduled to open in December 2019, the new hotel comprising 1,200 rooms will be world’s largest Crowne Plaza and will be a landmark hotel for IHG. Located in close proximity to the Holy Mosque, the hotel will join the InterContinental and Holiday Inn in the holy city and cater to the influx of pilgrim visits expected as part of Vision 2030. IHG is the largest international hotel group in Saudi Arabia, both by number of hotels and number of rooms. Crowne Plaza Makkah Beban boasts a host of facilities including two restaurants and a coffee shop, a business centre and three meeting rooms. Pascal Gauvin, managing director, India, Middle East & Africa, IHG said: “Saudi Arabia offers great opportunities both in terms of domestic and inbound tourism and is central to our expansion strategy in the Middle East. "This is a milestone signing for us in the Middle East and is testament to our commitment to the market.” Loay Bougary, CEO, Bougary Holding Co, added: "We are proud to partner with a strong global player such as IHG on this milestone development. We look forward to welcoming guests to the world’s largest Crowne® Plaza in 2019.” Originally from Makkah, the Bougary family has been in business for over 200 years. Based in Jeddah, Bougary Holding Co develops, manages and maintains properties including residential, commercial, clinical and marketing complexes. IHG currently operates 23 Crowne Plaza hotels across the Middle East, with a further six due to open in the next three to five years. Source: Arabian Business Back to Index

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LUXURY HOTEL BRAND FAIRMONT MAKES DEBUT IN RIYADH Saturday, January 26, 2019 Fairmont Hotels & Resorts, a luxury brand within the AccorHotels network, has marked the brand’s debut in Saudi Arabia's capital city with the opening of the Fairmont Riyadh. The new hotel forms a key component of the Business Gate community in Riyadh, a mixed-use development project and business district featuring over 70 multinational and regional companies. Fairmont Riyadh offers 298 rooms – including 40 suites - while its convention centre features two ballrooms that can accommodate up to 1,500 guests each. The property also features 10 meeting rooms, each named after a prominent city in the kingdom. Dining options include the 365, Café Connect, House of Grill, Pesto and the Savoy Lounge while the hotel also offers wellness facilities such as relaxation rooms, steam and sauna rooms and an indoor pool. The hotel also offers a special male only spa and salon, Gentlemen’s Tonic as well as a Ladies Lounge which is fitted with a pampering spa, ladies beauty salon and boutique gym. Salama Bin Saedan, owner’s representative, said: “The luxury hotel is set to become a popular destination through its unique design, unrivalled culinary options, diverse amenities and notable presence in Business Gate, a prominent development within Riyadh." Sami Nasser, chief operating officer, AccorHotels Middle East & Africa, added: “We are delighted to debut our charismatic luxury brand in Riyadh which will offer guests an exciting and unforgettable experience." Fairmont Riyadh joins over 75 Fairmont hotels globally including The Plaza in New York, The Savoy in London, Fairmont Grand Del Mar, Dubai’s Fairmont The Palm and Fairmont Peace Hotel in Shanghai. Fairmont Riyadh also joins a rapidly growing network of 26 other Fairmont hotels in operation and in the pipeline across the Middle East and Africa. Source: Arabian Business Back to Index

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HOTEL GIANT INKS DEAL TO DEVELOP NEW UPMARKET DUBAI PROPERTY Friday, January 25, 2019 Hotel giant Hilton has signed a management agreement with AW Rostamani Group to develop an upscale DoubleTree by Hilton property in Bur Dubai. DoubleTree by Hilton Dubai Al Mankhool will join 11 hotels currently operating or in the pipeline for the brand in the UAE, and represents a first entry into the hospitality industry for the family-owned AW Rostamani Group. “Since we introduced DoubleTree by Hilton to the UAE four years ago, the brand has been a real success story and is now one of the fastest growing in the market,” said Carlos Khneisser, vice president of development, Middle East & North Africa, Hilton. “We look forward to working with AW Rostamani Group to bring about a new and unique offering for travelers looking to experience staying in the heart of Dubai’s traditional, cultural district.” Construction is already underway on the mixed-use development, which will house the property, he added. Nestled within the portion of Dubai commonly referred to as the city’s ‘Old Town’, the hotel will feature 327 rooms with 131 serviced apartments. Khalid Abdul Wahid Al Rostamani, chairman of AW Rostamani Group, said: “Bur Dubai’s rich cultural history offers the ideal location for the new hotel project, and will provide us with another platform to continue enriching customer’s lives. Hilton serves as an ideal partner in managing our project, and it is a pleasure to be working alongside the internationally-renowned brand.” The hotel will also include five food and beverage outlets, two outdoor pools, and fitness and business centres. Source: Arabian Business Back to Index

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ABU DHABI VILLAS BUCK TREND OF FALLING RENTS, POST 1.5% INCREASE Thursday, January 24, 2019 Housing rental rates have indeed decreased in many areas across the UAE, but there are some exceptions, according to the latest data. Some properties in Abu Dhabi have recently experienced a rise in leasing rates, bucking the overall trend of decline experienced in many locations. Villa asking rents in the UAE capital posted a 1.5 per cent increase in December 2018 compared to the previous quarter. It’s the first time in three years that villa rents have shown a positive trend, according to ValuStrat. “Citywide villa asking rents saw the first quarterly increase in three years of 1.5 per cent, but were 11.1 per cent lower than the same period last year,” the company said. Overall median residential asking rents also softened by 3.6 per cent on a quarterly basis, with apartments registering a five per cent dip in December 2018 compared to September 2018. Abu Dhabi’s residential supply is set to increase this year as developers continue to build new homes, and this could put further pressure on rents. About 62 per cent of the total supply that were expected at the start of 2018 have already been completed. Al Reem Island saw 945 apartments completed, with more than 500 units coming from the City of Lights development, more than 300 units from Shams Abu Dhabi and 73 more from Najmat Abu Dhabi. Al Reef 2 in Al Samha saw 860 villas completed, while other areas, such as Yas Island, Al Raha Beach and Abu Dhabi Island saw an additional 2,998 residential units. This year, 3,249 apartments and 2,867 villas are scheduled to be completed. Source: Gulf News Back to Index

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TIME DEVELOPERS START THINKING BEYOND POST-HANDOVER PLANS Friday, January 25, 2019 The gap that has opened up in prices between primary and secondary property markets is mostly attributable to the “cost of money” trade. Developers are directly lending to customers via extensive post-handover payment plans and building the cost into their prices. This allows investors to rent out their properties, with a high — but declining, as incremental instalments get paid — return on equity. This is sort of a turbocharged, steroid-injected fixed deposit, and without the hassle of approvals required for financing. While this has opened up a new market for investors — and a lucrative spigot for intermediaries — it also implies developers are increasingly taking up credit risk on their balance-sheets. If default rates rise, the impact on profitability may well be substantial. This has been the reason why developer stocks have borne the brunt of the recent capital market correction. In the secondary market, investors can only sell either a) at lower prices, reflecting this cost of money discount, and/or b) resort to the same mechanism of offering payment plans to compete. We are starting to see these patterns emerge. At a market microstructure level, this calls out for a number of moves. It is self-evident that direct lending requires some sort of oversight, given the blurring of the property and financial services sectors, earlier demarcated with separate mortgage lending arms. Regulation has historically been opposed, but as the performance of every economy becomes more sensitive to asset price movements, it becomes imperative to cushion this volatility to facilitate capital formation. Especially as the economy transitions from a “rent seeking” structure to a more sustainable, resource generating one, spurred on by business creation. Secondly, and perhaps more critically, this calls into question the role of the investor and the nature of the asset class itself. Despite broker talk to the contrary, studies have shown that over the longer term, more than two- thirds of the return generated from real estate has been due to rental incomes and not capital gains. It has only been in the last 20-odd years that capital gains have come to dominate the narrative of real estate discourse. In the new economy, we are seeing a slow reversion to real estate playing its historical role. As the phenomenon of flipping continues to recede as a practice, what we are left with are heterogenous thin-volume markets and increasingly aggressive sales tactics. Some of these require further overview; others will simply get baked into the price action itself. It is critical to observe that as the market starts to get increasingly fragmented — into communities of various income, locational, ethnic and other strata — price variability has increased. The min-max levels recorded are twice as much as what they were in 2012. Once again, this calls into question the performance measurement of the asset class into question. It is inevitable that data providers will increasingly provide community specific and primary/secondary indicators, as the level of data mining becomes more sophisticated.

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Index providers have not taken this price variability into account, as they have in international markets. It is likely that this will start to change in 2019 itself.

Mathematically speaking, we are at the outer limits of what these post-handover payment plans can stretch to. It is increasingly likely that due to endogenous as well as exogenous factors, these plans will start to be offered more selectively as data on buyer profiles become available from experience. Developers, especially smaller ones, will be unable to provide incentives such as this, and apart from price discounts, will be squeezed out, either through consolidation and/or project delays. This necessitates the pace of development will slow. We have seen this phenomenon from 2014 onwards, despite analyst projections. In the years ahead, handovers will continue to slow, itself leading to the cost of money gap narrowing. Supply concerns appear to be overblown — the demand end of the curve is what will require further scrutiny as the supply pipeline recalibrates. Sameer Lakhani is Managing Director of Global Capital Partners. Source: Gulf News Back to Index

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PANTHEON GROUP TO INVEST DH600 MILLION IN DUBAI Saturday, January 26, 2019 Pantheon Group's investments in Dubai's real estate projects will reach Dh600 million by 2020 and it plans to launch new projects in Jumeirah Village Circle (JVC), its chairman and founder said. Kalpesh Kinariwala said the firm intends to nearly double the built-up area from 550,000sqft to 1 million sqft by 2020. "We have already invested Dh330 million in two projects and will invest another Dh250 million by 2020 in Jumeirah Village Circle," said Kinariwala. Pantheon on Saturday launched sales of its Dh180 million Elysee project in JVC, which houses 268 residential units and retail outlets. It is expected to be delivered in Q4 2020. The developer launched its first affordable luxury project, Pantheon Boulevard, in District 13 of JVC, costing Dh150 million and housing 162 units. The company plans to have a 25 per cent market share of JVC. "JVC roughly does around 1,800 apartments in sales a year and we plan to do roughly 25 to 30 per cent of that market share. With the launch of these 180 apartments, and if we launch one project by the end of this year, we will reach 450 to 500 apartments," Kinariwala added. "JVC is one of the best master developments in the affordable segment. If you look at a studio, it is being sold on a four-year payment plan priced at Dh399,000 and a one-bedroom apartment starts from Dh500,000," he said. Source: Gulf News Back to Index

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DUBAI DEVELOPER PHASES OUT LAUNCH TO TEST MARKET DEMAND Thursday, January 24, 2019 After a lull in project launches in the last quarter of 2018, developers are beginning to test the waters. After Danube Properties launched Elz Residences in Arjan in December last year, Sobha Realty is the latest to join the fray by launching apartments in its flagship community, Sobha Hartland. The developer has released around 200 units in the upper floors of its 28-floor twin tower project, Creek Vistas. This comes in addition to the approximately 250 units it had already launched in the towers in May 2018. The developer said two-thirds of the released inventory had already been sold in the project. Tirthankar Ganguly, chief marketing officer, Sobha Realty, told Khaleej Times: "There was a huge demand from first-time home buyers towards the end of 2017. However, most affordable homes brought to the market by developers, including some large master developers, were compromising on quality, size and location. We weren't willing to compromise on any of these points." Creek Vistas offer one and two-bed apartments. The 1-beds span from 500 to 600sqft and are priced from Dh800,000 to Dh1 million. Two beds range from 800 to 900sqft and are priced from Dh1.2 million to Dh1.4 million. The project will be delivered by mid 2021. "Buyers have been a mix of end-users and those aspiring to own an asset that will deliver good returns," Ganguly added. Around 170 apartments in the first phase of Hartland Greens has already been handed over. The second phase in Greens will be ready by August. All phases in Hartland Greens will be delivered in the course of this year. Around 50 villas are also coming up for delivery this year, the senior executive pointed out. Ganguly affirmed that demad is always stable in the luxury market. "Buyers never go by exuberance or market sentiment. These are long-term buyers. There is a steady stream of buying from people who have a long-term view of the market and who aren't into trading units. We don't want to bring a product to the market in a rush to take advantage of a short-term sentiment," he observed. Source: Khaleej Times Back to Index

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UAE ECONOMY SET FOR 3.8% ANNUAL SURGE UNTIL 2023 Friday, January 25, 2019 Driven by an uptick in investment flows and private consumption, the UAE economy is forecast to record an average annual real GDP growth of 3.8 per cent between 2019 and 2023, the Dubai Chamber of Commerce and Industry said. Real GDP for the UAE's non-oil sector is projected to grow by an average of 4.1 per cent between 2019 and 2023, compared to the 2.8 per cent accounted for in the 2014-18 period, a study revealed. The Dubai Chamber's growth projection for the UAE is in line with forecasts made by the International Monetary Fund, which expects the Arab world's second-biggest economy to 3.7 per cent next in 2019, following 2.9 per cent expansion in 2018. UAE Minister of Economy Sultan bin Saeed Al Mansouri predicted that the country's GDP would grow more than 3 per cent in 2019 after recording between 2.5 per cent and 3 per cent growth in 2018. The outlook for the UAE economy is brighter than for the rest of the GCC, according to an IMF report that estimates that the six-nation bloc's GDP is expected to increase by 1.9 per cent in 2018 and 2.6 per cent in 2019, overcoming a dip of 0.2 per cent in 2017. According to analysts, the UAE and Kuwait are set to post fiscal surpluses in 2018 due to the recovery in oil prices, while Saudi Arabia is expected to register a modest deficit as Bahrain and Oman are likely to continue to report mid- to single-digit deficits, keeping their balance sheets under pressure. "The momentum behind the UAE's GDP growth over the next five years will likely be led by the country's transport and communication sector which is set to record GDP growth of 7.9 per cent, followed by construction [4.2 per cent], and real estate and business services [3.8 per cent]," the Dubai Chamber study said. In addition, recent measures to reduce cost of doing business in the UAE are expected to support activity within the country's SME and private sectors in the near future. The findings of the analysis, based on the Dubai Chamber UAE Macroeconomic Model, were revealed during a business seminar recently hosted by the Dubai Chamber, which examined growth projections for the UAE and global economies, Dubai's top export markets, and the most attractive export opportunities for Dubai traders. The analysis identified other key factors that are expected to drive economic activity in the UAE, including expansionary fiscal policy and a growing number of infrastructure and construction investments in the run-up to Expo 2020. The chamber report said a recovery in private consumption and sales of highly cyclical consumer products is expected, extending to products such as vehicles, furniture, household appliances, and medical equipment. The Dubai Chamber also projected robust growth in investment on the back of government fiscal stimulus.

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For Dubai, the Middle East and North Africa accounts for the largest share of exports (41 per cent), followed by Emerging Asia with 26 per cent, Sub-Sahara Africa (18 per cent), the CIS (1 per cent) and Latin America (0.8 per cent), trade data for the first nine months of 2018 revealed. Source: Khaleej Times Back to Index

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'INDIA TO GROW 7-7.5% OVER NEXT FEW YEARS' Friday, January 25, 2019 Despite global and structural challenges, India will continue to grow in the 7-7.5 per cent range in the next few years, one of the highest growth rates in the world that could further go up by at least 1 per cent through reforms designed to address structural problems, the Prime Minister's Economic Advisory Council (EAC-PM) said on Friday. It also strongly felt that there should be no deviation from the fiscal consolidation target even as it made a case for continued emphasis on social sector interventions. The advisory panel, headed by Niti Aayog member Bibek Debroy, held a stock-taking meeting on the state of the economy and noted that the macro-economic fundamentals of the economy were sound, despite challenges "several of which are structural in nature". "While the prospects for world economic growth do not look very promising, particularly in the advanced economies, there is sufficient amount of growth momentum in emerging market economies." "India is not insulated from global developments. Nevertheless, India's growth is expected to be in the 7-7.5 per cent range in the next few years; one of the fastest in the world," the Council said in a statement. "However, with reforms designed to address the structural problems, growth rates can easily be enhanced by at least 1 per cent," it added. The panel said that amongst the challenges that need to be addressed are reforms in the agricultural, banking and MSME sectors, skill development, credit issues and digital payments. It commended the government and the Reserve Bank of India for "sound macroeconomic management" which it said should continue. Among the issues discussed by the EAC-PM were agricultural problems, investment trends, fiscal consolidation, interest rate management and credit and financial market issues. The council felt that the exchange rate management of the rupee by the RBI had been sound despite the volatility in the price of crude oil. "The good news is that oil intensity [use of fossil fuels as a percentage of GDP] is showing a declining trend," it said. "There are indications that financial savings have started going up and there is credit uptick through private banks to the services sector. The reforms in the financial sector should be strengthened further building upon what the government is already doing," it added. The Council felt that the challenge of insularity being seen in external trade should be reversed through supportive policy interventions because there was a positive turn in exports that was now visible. Poised to be 5th-largest economy globally: Modi Meanwhile, India is on the way to becoming the fifth largest economy in the world, Prime Minister Narendra Modi said on Friday. He was addressing the India-South Africa Business Forum organised jointly by Indian industry chambers CII, Ficci and Assocham in the presence of visiting South African President Cyril Ramaphosa.

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Modi also noted that India had risen to 77th place in the World Bank's latest Ease of Doing Business rankings and is currently among the most attractive destinations for foreign direct investment according to the Unctad.

"We are on way to becoming the fifth-largest economy globally and have jumped to 77th position in the World Bank's Ease of Doing Business rankings," he said. Source: Khaleej Times Back to Index

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CANADA CONFIRMS EXPO 2020 PARTICIPATION Sunday, January 27, 2019 Expo 2020 continues to grow bigger as Canada has confirmed its participation in the upcoming mega event set to be held in Dubai next year. The G7 nation's participation was sealed during two separate high-level meetings between Jim Carr, Canada's Minister of International Trade Diversification, Mohammad Al Gergawi, UAE Minister of Cabinet Affairs and the Future, and Mohammed Al Shaibani, director-general of the Ruler's Court, Government of Dubai, held on the sidelines of the World Economic Forum in Davos, Switzerland. "The UAE is a hub for important global events like the Expo that will help contribute to a brighter global future. We are working hard to ensure greater international cooperation to enhance the future of humanity, founded on the strong relationships that we enjoy with countries around the world, including Canada," said Al Gergawi. "It is welcome news that Canada is rejoining the Expo movement to participate at Expo 2020 Dubai. We are looking forward to leveraging the Expo platform to continue to build on investment ties with Canada, Canadian companies and the Canadian community here who call the UAE their home," said Al Shaibani. Expo 2020 Dubai will mark Canada's first participation in a World Expo since Expo 2010 Shanghai China, and will see the country showcase its economic, social and cultural contributions to a global audience of millions. Carr said with the eyes of the world on Dubai, Canada's presence at Expo 2020 affirms the vitality of Canada-UAE relations, while showcasing the best Canada has to offer. "We only need to look at the lasting effects that hosting two world fairs has had on the fabric of our own nation to understand the potential this represents for Canada and for Canadians." A total of 190 countries have already confirmed their participation for Expo 2020. Among the countries that have confirmed their pavilion plans include Austria, Brazil, Czech Republic, Finland, Germany, Luxembourg, New Zealand, Oman, Poland, Switzerland, the UK and the UAE. During the six-month long exhibition, Canada will also be able to further promote its trade diversification strategy through the next World Expo. Canada has a long history of participating in World Expos and has hosted two previous editions: Expo 67 in Montreal and Expo 86 in Vancouver. Canada and the UAE already enjoy strong bilateral relations and Expo 2020 Dubai will offer a unique opportunity to boost them further. The UAE is Canada's largest export market in the Middle East and North Africa region, with merchandise exports valued at $1.6 billion in 2017. Source: Khaleej Times Back to Index

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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.

OWNER ASSOCIATION

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

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

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