News Brief 46 Sunday, 12 November 2017

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

NEWS BRIEF 46 SUNDAY, 12 NOVEMBER 2017

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC MAKE SURE THE OQOOD CERTIFICATES ARE ISSUED ON TIME THE BAD BOYS OF ENERGY CONSUMPTION THE PROS AND CONS OF USING A REAL ESTATE AGENT ARABTEC SWINGS TO DH17.8M PROFIT IN THIRD QUARTER THERE IS NO GOING BACK ON REFORMS FOR GULF STATES MID-MARKET HOTELS TO APPEAL TO EXPO VISITORS BUILDING EFFICIENCY MUST START FROM THE DESIGN PROCESS EMIRATES ON CLOUD NINE AS PROFIT SOARS 111% KINGDOM HOLDING LIKELY TO RETAIN ASSETS FOLLOWING ALWALEED ARREST DUBAI'S SHUAA CAPITAL EYES CONTROLLING STAKE IN KUWAIT'S GLOBAL INVESTMENT HOUSE MIDDLE EAST INVESTORS GLOBALLY DEPLOY $10 BILLION IN COMMERCIAL REAL ESTATE RETAIL SECTOR REMAINS BRIGHT SPOT OF BAHRAIN'S PROPERTY MARKET LISTING OF ETIHAD REIT ‘POSTPONED UNTIL NEXT YEAR’ DUBAI OFF-PLAN SALES OVERTAKE READY FOR FIRST TIME SINCE 2008 DUBAI’S OFF-PLAN PROPERTIES RECORD 18,000 DEALS IN 10 MONTHS MOTOR CITY: FOCUS ON HEALTH AND FITNESS DUBAI’S HOUSING HANDOVER UPSURGE LOOKING FOR THE BARGAINS AZIZI CONFIRMS NOVEMBER LAUNCH FOR DH25B PROJECT DUBAI IS SIXTH MOST VISITED CITY ON EARTH: EUROMONITOR DUBAI TOURIST ARRIVALS UP 7.5% THIS YEAR RECORD NUMBER OF TOURISTS FLOCK TO DUBAI IN JANUARY-SEPTEMBER THIS YEAR EMPOWER COOLS DUBAI’S SEVEN PRESTIGIOUS BUILDINGS 28,600 BUILDINGS UNDER CONSTRUCTION IN DUBAI - 5,633 COMPLETED THIS YEAR

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REAL ESTATE NEWS

WASL TO LAUNCH 3RD TOWER OF PARK GATE RESIDENCES FOR SALE SOON OFFPLAN TRUMPS DUBAI READY HOME SALES IN 10 MONTHS HOW THE EARLY BIRDS ARE REAPING GOOD RETURNS AT DUBAILAND HERE'S A VIABLE OPTION FOR COST-CONSCIOUS BUYERS, TENANTS IN DUBAI DH41M DUBAI HILLS 'BLANK CANVAS' VILLA AWAITS NEW OWNER'S ARTISTRY CAN I DEMAND A MONTH'S FREE RENT RENT FOR NOISY CONSTRUCTION WORK NEXT TO MY DUBAI APARTMENT? AMLAK SAYS THAT THIRD QUARTER PROFIT DOUBLES AFTER IMPAIRMENT REVERSAL DUBAI’S SHUAA CAPITAL SWINGS TO PROFIT IN THIRD QUARTER, EYES ACQUISITIONS ABU DHABI MUBADALA SIGNS DEAL WITH FRENCH FIRMS TO INVEST UP TO €1B NORTHERN EMIRATES AJMAN A MAJOR ATTRACTION AT WORLD TRAVEL MARKET AL ISLAMI FOODS OPENS ITS LARGEST FACTORY IN THE MIDDLE EAST SHARJAH TO HOST LARGEST ENTREPRENEURSHIP FESTIVAL IN THE UAE INTERNATIONAL SHORT-LEASE PROPERTY IN LONDON INDIA'S ECONOMIC WOES HIT DEMAND FOR DUBAI REAL ESTATE MORTGAGE APPLICATION VOLUMES IN U.S. GO FLAT IN EARLY NOVEMBER LOS ANGELES NOW LEAST AFFORDABLE HOUSING MARKET IN U.S.

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MAKE SURE THE OQOOD CERTIFICATES ARE ISSUED ON TIME Wednesday, November 8, 2017 In recent months, it has been highlighted that for a number of new launches by private sector developers, the “Oqood” contract has not been registered. This has served in many cases as a marketing tool in order to facilitate speculation and entice the customer. This issue needs to be highlighted both for the investor/enduser as well as the developer for the gravity that it carries. In 2008, Dubai imposed Law Number 13, which laid out a number of responsibilities for the developer to adhere to. Article 3 of the said Law is clear when it states: “Any disposition that occurs in respect of any real property unit sold off plan will be entered in the Interim Property Register, and any sale or any other legal disposition that transfers or restricts ownership will be void unless entered in the Register”. In a number of cases, the local courts have ruled repeatedly that failure on part of the developer to register the contracts in an expeditious manner not only renders the contract null and void, but that the entire amounts be refunded to the investor along with penalties of a grievous nature. In particular, the Dubai Court of Cassation has predominantly ruled in favour of investors even when the developer has appealed. It has only been in certain select cases where the buyer has not fulfilled his initial purchase conditions and considerations of the contract did the courts consider an exception. Given this clarity, it is somewhat puzzling that investors and purchasers of the real estate are not getting their Oqood contracts from the developer in certain cases. In point of fact, to quell the speculation, Law number 13 stipulates that for all developers who had issued contracts before the passage of the law, they had 60 days to register the same contracts in the Interim Property Register. This highlighted the expediency with which the courts wanted the issue to be resolved and made transparent. For the most part, this has now transpired, with Dubai’s Rera (Real Estate Regulatory Agency) becoming a model for other countries to replicate. India has already established its own version of Rera, and there are moves underway for other countries in Asia and the Far East to follow suit. It is under this ambit that recent reports of developers violating the laws has become somewhat concerning. Investors and end users have a right to insist for their Oqood contracts and it is under the responsibility of the developer to assure that this has been done. To be sure, this is very different from developers waiving the fees of registration. This is done as a marketing tool which is well within their rights to do so. However under no condition are the said developers exempt from registering the contract because of this waiver of fees that has been granted. It is the registration of such contracts that ensure all rights of the investor are protected in the event of project cancellation, a factor that became common place in the financial crisis between 2008-11. in many cases some of the fallout is still being dealt with today. Given that all of the contracts have been mandated to be registered, the level of transparency in the industry has gone up manifold. This makes it not only easier for institutional investors to understand what is going on in the markets, but also for the individual buyer to ascertain his or her rights and where they stand vis-a-vis each and every contractual issue and every real estate project. In terms of transparency, it has been an admirable achievement that has taken place in such a short period of time. All the more reason why investors need to be proactive and vigilant in terms of their rights, and not be lured by some of the developer antics in surrendering the rights that are guaranteed to them under the law. This vigilance will ensure the protection of rights of the investor and the stability of the market in the medium term. Source: Gulf News Back to Index

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THE BAD BOYS OF ENERGY CONSUMPTION Wednesday, November 8, 2017 Sustainability stands at the core of the UAE energy policy, with the UAE Energy Plan 2050 focused on boosting clean energy, reducing dependence on natural gas, slashing CO2 emissions by nearly 70 per cent and improving energy efficiency by close to 40 per cent by the middle of the century. These initiatives could result in net savings of a whopping Dh700 billion. With buildings positioned as the highest consumers of energy, using up nearly 70 per cent of all energy produced in Dubai, the energy policy is strongly hinged on improving energy efficiencies in the built environment. Tall buildings and skyscrapers pose an additional challenge, with the design, infrastructure and maintenance demands of these structures creating several energy-intensive scenarios. The UAE’s energy policy takes into account the varied built area, including the old and the new, the tall and low, with energy regulations to control new building fit-outs balanced with retrofitting initiatives to improve energy efficiency of old buildings. But regulations, like the demand-side management initiative, need to be coupled with intensified education efforts and transparency in sharing the savings and benefits with building users, to maximise energy efficiency in buildings. Faisal Rashid, director of demand-side management at the Dubai Supreme Council of Energy, explains, “The Dubai Demand Side Management Strategy 2030 targets savings of 30 per cent on electricity and water. It targets primarily buildings, which comprise over 70 per cent of all consumption, and are thus a key focus for the implementation of the programme. The two key enablers are more stringent building codes and aggressive building retrofit programmes for existing buildings. The Supreme Council of Energy is working closely with other government entities in ensuring all savings are made known to building users and, upon implementation of EE measures, that all savings are measured and verified.” Designing for efficiency A critical part of energy conservation in all new build-outs in Dubai is the design of the building. This can have a significant impact on the energy consumption of the building across its entire life cycle, says Michele Pasca di Magliano, associate director of Zaha-Hadid Architects. “Tall buildings consume a great amount of energy during their construction and within their lifetime,” says Magliano. “It is therefore essential that sustainable measures are taken into consideration in their planning. One of the aspects we principally focus on at Zaha Hadid Architects is minimising embodied energy, such as optimising orientation and reducing areas of full glazing to minimise heat gain. Few key moves can greatly reduce the amount of energy that the building requires.” This brings us to a very important consideration when talking design in the context of Dubai, which is the city’s fixation with super-tall structures clad with glass curtain walls. The “glass-box” phenomenon as it is called, requires a significant amount of energy to be habitable, both from a cooling and a lighting perspective. “The need is to design climate-specific buildings,” exhorts Scott Coombes, director of AESG, a consultancy and commissioning firm for sustainability, energy and facades. “Because we like a building in France does not mean we can replicate the same here. It is necessary to push designers to reflect on traditional architecture, like having thick thermal walls, which provide good insulation, and good ventilation, but if you use big curtain walls and big windows without putting shading outside or across the windows, it is not a sustainable design.” Using small windows that are set back from the façade, with a façade that is reflective of light, is a simple way to make tall towers more energy efficient. Several building codes have been put in place to ensure new building design and construction comply with the energy-efficiency goals of the UAE. Some of the stipulations include 50 per cent of external glazing to be north-facing, 5 per cent of construction materials to be recycled, and the use of light reflective walls, smart meters and speed control escalators with traffic detection capabilities. Keeping cool is costly When analysing energy usage, air conditioning is one of the top culprits as cooling systems use 80-85 per cent of the total energy consumption of buildings. Despite this, it is impossible to eliminate or significantly reduce the use of

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cooling systems in Dubai given the climate and temperature. The key lies in optimising usage, while not compromising comfort, says Rashid.

“In the context of buildings, energy savings must be viewed as a source of energy,” he says. “It is cheapest and cleanest not to use excessive energy at all and have consumption optimised at no loss of comfort or functionality to the user of energy. “Due to harsh weather during approximately half of the year, a lot of life in Dubai happens indoors, which is also where most of generated energy is spent. Ensuring that our comfort is provided at maximum efficiency is our vision and goal.” Smart sensor technology and reprogrammed air-conditioning units can help reduce the HVAC consumption figures by effectively balancing loads with demand. “We try to work with central cooling, which, especially in mixed-use scenarios, allows to reduce the total load by differentiating timing of peak demands between residential, offices and commercial,” says Magliano. Retrofits Old buildings comprise a significant portion of the built-up landscape in Dubai, and pose the greatest challenge being the highest consumers of energy and expenders of carbon emissions. Due to a sharp increase in utility rates between 2008 and 2011, wherein electricity costs went up by 120 per cent and water by 40 per cent, many companies became focused on reducing their utility costs, which has been achieved by retrofitting. Retrofitting, a term that has become more mainstream over the last year, is the process of revamping old buildings with more energy-efficient systems to reduce wastage and optimise consumption. The size of this market is massive. “With over 30,000 potential retrofit projects to be carried out in Dubai before 2030, under the Etihad Esco, a Dubai Electricity and Water Authority-led initiative to retrofit buildings from a lighting and energy perspective, the market has gained considerable momentum with a host of companies looking for solutions to reduce energy consumption and ultimately costs,” says Markus Oberlin, CEO of Farnek, a property maintenance firm. Given the size of the market, the potential for savings is also considerable, especially in the context of tall buildings and skyscrapers. Despite the initial investment, implementers are reporting highly favourable returns. “A large percentage of the savings will come from medium to high investments in HVAC, or air-conditioning units,” says Oberlin. “Those with a long-term vision for profit margins will see greater returns from investing now. Skyscrapers and tall buildings that have not implemented environmentally friendly measures consume considerable energy. Therefore, retrofitting plays an integral role in energy savings and increasingly property owners and managers are recognising the financial upside of ensuring a greener building.” How it impacts end users End users can significantly benefit from energy-saving practices being implemented across old and new buildings. Oberlin says the cost and energy savings from retrofitting include decreased utilities budgets due to higher efficiencies in energy and water usage, reduced building operations budgets due to lower maintenance and repair costs, and better-quality living spaces and greater services and amenities. For landlords, they also benefit as they can charge a premium for providing a quality product. It definitely pays for all stakeholders to be fully involved and committed in the drive to optimise energy usage towards a greener future, not just for the feel-good eco-friendly factor, but also with the favourable returns and savings in energy consumption and maintenance. Source: Gulf News Back to Index

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THE PROS AND CONS OF USING A REAL ESTATE AGENT Wednesday, November 8, 2017 When buying or selling a home most of us rely on a broker or an agent for their professional knowledge or experience. But depending on whether you are a buyer or a seller, there can be certain advantages and disadvantages. In this section we talk about the pros and cons of using a real estate agent from a buyer and seller’s point of view. Cons for a seller • There are not many cons for a seller in Dubai to use a real estate agent. The standard method where the seller would pay 5 per cent (of the total 10 per cent of the agent’s commission) and the buyer would pay other 5 per cent is rapidly becoming the exception rather than the rule. It is now far more common for the parties to agree that the buyer pay the full 10 per cent commission. • Less flexibility in price (should the seller decide to follow the norm and pay the 5 per cent agents commission). • The seller also does not get to stage the home as they choose. To a real estate agent, the sale is just a business contract. The seller on the other hand can pick up on the emotional aspects of the buyer and relate therein to their own emotional experiences and gain the upper hand in the bargaining. Without an agent, the seller has far more power at the bargaining table. • If the seller is liaising directly with the buyer he is cutting out the middleman and in doing so he can ensure that his interests are looked after more so than if a real estate agent was involved who likely just wants to get his commission as soon as possible. Pros for a seller • The most obvious one is that the seller’s home will get introduced to a far greater audience than if he was trying to sell it on his own. Sure, there is the internet but realistically when one is looking for a place their first port of call is usually an estate agent so listing your home with an estate agent will garner a much quicker response. • In line with a quicker response is obviously the time aspect. It takes time and unless the seller is one who stays at home or works from home, they will have to make time to meet the buyers and show their homes which is not always an easy task to comply with and may require time off work or other social activities. • Another pro of using an agent is that the seller has far less paper work to do. The average person may not be fully aware of all the paper work that is required. A real estate agent knows what must be done and is generally quick in getting it done which is far more efficient. • An estate agent knows the market and what the seller can reasonably expect to receive as well as can highlight any hidden costs that may be involved in selling the home so that he can take that into account when quoting the price they want. Cons for a buyer • First and foremost is the commission the buyer will need to pay. The additional 10 per cent commission over and above the purchase price can be quite a hefty additional cost for the buyer which the buyer will have to pay out in cash. This means that commission payment can be an extra burden on the buyer. • A buyer may also feel pressured by the agent in that he may feel a level of distrust thinking the agent is looking out more for the seller than him which in turn makes the buyer weary of entering the deal which in reality could be a good deal. On the opposite end of the spectrum, the pressure can cause the buyer to enter a deal in which they don’t really want to due to pressure from the estate agent.

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• With the buyer, not being able to talk directly to the seller the buyer may miss out on information that he would otherwise have been able to obtain directly from the seller and which the agent chooses not to disclose unless it is asked. • The buyer is also far more likely to tell an agent what they are looking for and why and the agent can then relay this information to the seller. But if the buyer is desperate for a certain property or has no shortage of funding, the agent can lead the seller to up the price knowing the buyer will likely still take it. Pros for a buyer • As with the pros for the seller, the buyer will receive a much larger market of potential properties to purchase than if they were looking themselves. The buyer would be able to describe to the agent exactly what they were looking for and the agent would be able to direct the buyer to only suitable properties. This is especially true if the buyer is buying from a developer who would only promote their properties and not that of a competitor who could have a better suited property available. • The agent further likely knows the history of a home and what costs can be expected in the future and warn of any red flags that a property may possess. • Like the seller, the buyer may not be aware of all the documents that are required nor the regulations that need to be followed. This again will lead to delays in finalizing the transaction and further costs down the line. • The buyer will also need to sacrifice a lot of time in researching the neighborhood and finding suitable houses than if they simply went to an agent who could inform them what kind of neighbourhood it is and whether it would suit the buyer’s needs. • Again, as with the seller, agents also know the market. The agents can inform the buyer if the market is a buyers’ market or sellers’ market and prevent the buyer from paying far more for a property than what it is worth. As is a con for the buyer where the agent can relay information to the seller, the agent can likewise do same for the buyer and the buyer can then get a property at a better price. • Finally, the buyer, not the seller has the upper hand when negotiating through an agent as the middle man can prevent the seller pressuring the buyer and can further ensure that all communication from the buyer to the seller is done in a neutral and helpful manner preventing either party’s emotions becoming involved which can ruin a deal. It can clearly be seen that there are disadvantages and advantages for both parties in using an agent but in the long term, for both parties, the pros of using an agent outweigh the cons of doing so. Source: Gulf News Back to Index

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ARABTEC SWINGS TO DH17.8M PROFIT IN THIRD QUARTER Wednesday, November 8, 2017 Arabtec Holding reported Dh17.8 million in net profit on Wednesday for the third quarter of this year, a jump from the Dh225.5 million in losses recorded in the same quarter of 2016. The figure brings profits for the first nine months of 2017 to Dh75 million, also a turnaround from the Dh458 million in net losses recorded in the same period last year. The profits mark the Dubai-listed construction company’s third consecutive quarter of profitability following nearly two years of mounting losses that saw the company accumulate Dh4.6 billion in losses by the end of 2016. Arabtec has since restructured its capital and implemented a turnaround plan. Revenues in the third quarter of 2017 rose nearly 6 per cent year-on-year to reach Dh2.1 billion, as revenues for the first nine months of the year inched up 3.2 per cent to Dh6.34 billion. In a statement, Arabtec said it has a “solid pipeline” of project opportunities going forward, with its backlog now at Dh16.8 million. “The group remains on track to achieving the first phase of its strategic road map to stabilise the business in 2017, ensuring long-term, profitable, and sustainable growth,” said Hamish Tyrwhitt, group chief executive officer of Arabtec. Despite the swing to profitability, Arabtec’s share prices fell 4.55 per cent to Dh2.73 on Wednesday as third quarter profits missed expectations. Sanyalaksna Manibhandu, director of research at National Bank of Abu Dhabi Securities, had projected Dh21 million in profits for the quarter. He said he had expected some more improvement in general and administrative expenses. “It’s quite possible that the fourth quarter will be a very good quarter, and they will continue to improve in 2018. But the market at the moment is risk-averse, and that tends to be at the expense of stocks that have high PE,” he said. PE is ratio of a company’s stock price to its earning. Manibhandu added, “The market has a problem with trying to value this stock because how do you value it? Do you value on book, on DCF (Discounted Cash Flow), on PE? It’s just very difficult. However you do it, it looks expensive, so I think you might see some challenge for the stock to go up until quarterly disclosures improve a lot more.” In a presentation posted to the Dubai bourse’s website, Arabtec said that in 2018 it plans to consistently secure an annual backlog of new projects of at least Dh8 billion — Dh9 billion, while it plans to see consistent growth in profits and cash flow in 2019. In the third quarter of 2017, Arabtec was awarded projects that include a Dh628 million contract from Damac, a Dh363 million contract for the Dubai South Mall from Emaar, and a Dh196 million contract for phase 1 of a project by Emaar in Downtown Dubai. Arabtec had earlier this year completed a recapitalisation programme, which included a Dh1.5 billion rights issue followed by capital reduction. The latter step saw the company’s capital reduced to Dh1.5 billion from Dh6.1 billion. Source: Gulf News Back to Index

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THERE IS NO GOING BACK ON REFORMS FOR GULF STATES Friday, November 10, 2017 The headline economic numbers look rather mundane, with no real cause for alarm. Economic growth for the Middle East and North Africa is pegged at 2.6 per cent this year and a reasonable 3.5 per cent for next, in line with global growth projected by the International Monetary Fund. But dig a little bit deeper in the IMF’s regional economic outlook and you’ll find that the pain from lower oil prices will continue after a dramatic correction that began more than three years ago. The Gulf states will grow this year, but just barely, having slashed its forecast for growth across the six members of the Gulf Co-operation Council to just a half per cent, down from 0.9 per cent it forecast in May. The oil exporting states are continuing to adapt to a new normal of crude hovering between $55-$60 a barrel. “It’s important from a policy standpoint to be on the conservative side and to make sure we are not dependent on the oil cycle,” Jihad Azour, director for the Middle East and Central Asia at the IMF told me after a round-table I chaired on the regional outlook. The good news Azour noted is that these countries are progressively reducing the weight of oil on their economies in the drive to diversify. Gulf countries have overhauled their economic strategies. Saudi Arabia, the region’s biggest economy, 18 months ago launched “Vision 2030”, a blueprint to shift more of the burden growth to the private sector. But the IMF warned that drastically reducing a double-digit budget deficit too quickly could suffocate the private sector and hamper growth. In fact, the fund has forecast an economic expansion in the Kingdom of just 0.1 per cent this year before recovering to 1.1 per cent next year. “We’ve seen that move of getting more of a balance of having steady but continual fiscal reforms, but you have to have private sector growth as well,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “Fiscal reform is moving towards not just to cutting back expenditure but also raising revenue which is also an important development.” The government has cut some subsidies (while watering down salary cuts and utility increases), announced new taxes, and lifted a controversial ban on women driving. With a solid credit rating, it went to global bond markets three times in less than a year. While the IMF projection for the Gulf states raised some eyebrows, there was another figure that stood out for me suggesting that the pain offered by lower oil prices will inflict medium term damage as well. In its regional report, the IMF calculated growth for the Middle East oil exporting countries including Algeria, Iran, Iraq and Libya and it is not promising. The expectation is the group will grow at an average annual rate of just 2.8 per cent over the next five years, half the pace achieved in 2016, when the oil crisis took hold. There is however pressure to push ahead. Five energy producers, from Algeria to Saudi Arabia, posted budgets deficits ranging from 13-22 per cent of GDP last year. “My concern, looking at the experience of traditional countries who have gone through these fast- paced necessary liberalisation, privatisation, opening of markets, is that in the short term there is a downside to growth,” said Alia Moubayed, Direct of Geo-economics and Strategy at the International Institute for Strategic Studies. When I asked in her in the round-table if this is the new normal, she did not hesitate in suggesting “experience tells us yes”. The IMF based its projections on an average oil price of $50 a barrel and Brent crude prices are even higher at $60, but there is a hidden danger in the recent rally. There may be pressure by local populations to lift the foot off the pedal in this drive to rebalance government finances. And there is another inherent challenge that comes with sub-par growth, which is worsening youth unemployment, in a region that has the highest rate in the world at just over 27 per cent according to the International Labor Organization. The IMF’s Azour told the audience in Dubai that 25 million jobs will need to be created in the next decade to just tread water with that alarming level of joblessness, especially in North Africa. A young, eager population is a plus for investors in a region that is undertaking overdue reforms, but to deliver job creation the IMF said sustainable annual growth of 6 per cent will be needed. And that through the next five years, in this climate of lower oil prices, is certainly not in the cards despite all the goodwill and painful reforms. Source: Gulf News Back to Index

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MID -MARKET HOTELS TO APPEAL TO EXPO VISITORS Wednesday, November 8, 2017 People are increasingly interested to travel, and aside from the various sights they want to see, there's one other factor that entices them to push ahead with their plans: the mid-market hotel segment. And while cheaper than other high-end establishments, the experience shouldn't be compromised. "Everybody wants to travel, and the mid-market [hotel] segment adds to that desire to do so," Thameem Razick, director of sales and marketing at Rose Hotels and Hotel Apartments said. He was speaking during the formal launch of the Rose Park Hotel in Dubai's Al Barsha area on Tuesday, the latest addition to Rose International Hotel Management's growing portfolio. Razick also revealed that the company is gearing up for the influx of visitors in the run-up to Expo 2020 Dubai: Rose International has six more properties in the pipeline, all planned to be delivered before the mega event begins. And the mid-market hotel range in general is sure to appeal to these visitors. He added that the company - which is also present in Oman and which was the seventh hotel brand to enter the Al Barsha market - is also looking at CIS countries and the Far East. It has also recently partnered with low-cost carrier flydubai for special travel packages. Razick quoted the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as a driving force for Rose International. "Believe in our people, believe in each other - that's the key to success," he added. "Sustainability gives us confidence to diversify further." Source: Khaleej Times Back to Index

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BUILDING EFFICIENCY MUST START FROM THE DESIGN PROCESS Tuesday, November 7, 2017 With rising populations and intensified economic activities, the region is increasingly looking for more sustainable ways of constructing buildings and cities. There has been a growing focus on the importance of creating properties that are smarter and more energy-efficient, particularly in the case of Dubai. They key to this, we believe, starts with the development of individual homes and assets. A decade ago, Dubai had one of the largest ecological footprints of any city in the world. By 2050, it wants to have the lowest. Is this achievable? We believe it is. If we create more sustainable buildings, we will have smarter cities that are more environmentally friendly, more energy-efficient and better connected. Environmental improvement now prominently features in national plans such as Dubai Plan 2021 and Dubai Clean Energy Strategy 2050, as well as a number of commercial strategies in the UAE. The significance of developing sustainable solutions for future generations is of undeniable importance. Guiding more investment towards research and development, innovation and advanced technologies in architecture and construction should be given exceptional priority. So, what does this mean in reality? For architects and designers, it is now critical that we take into account at the very start of the process the environmental impact the construction will have on the surrounding area. As well as the long-term sustainability of the project, it is also important to think about how the property can be as energy-efficient as possible from the beginning. Globally, there have been some incredible innovations that are inspiring designers to think creatively about sustainability. For example, the Hanover Olympic building in Los Angeles was designed with a series of solar-powered apartments built with sustainable materials like recycled glass and reclaimed wood. The building is L.A.'s first net-zero residential space and actually sends power back to the city's utility grid. According to the United Nations Environment Program, energy consumption in buildings can be reduced by 30 to 80 per cent using proven and commercially available technologies. We are seeing steps in the right direction in our region. For example, the Dubai Municipality enacted the 'Green Building Regulations & Specification' in alignment with its Strategic Plan. Mandatory for the private sector since March 1, 2014, the Green Building Regulations apply to all buildings in the city, including those in free trade zones. New green construction creates incredible opportunities in developing countries, where population growth and urbanisation drive building and construction activities. Investment in building energy efficiency translates into direct and indirect savings, offering a small return on investment. As such, building sustainably will result in healthier and more productive environments. Dubai's Green Concrete initiative is expected to have an estimated saving of Dh192 billion for the emirate because of the extended durability of the buildings. In line with Dubai's vision to be a smart city, I think it's important that we implement innovation in the design process and work towards creating smart buildings and automation. For example, we use building information modelling in all the projects we undertake, which insures a quality and quickness of constructing a building, in addition to the right management. It's important that we create buildings that are good for people, planet and profit putting precedence on developing a more sustainable building industry. Our approach to sustainability goes beyond energy efficiency and "green" buildings and projects; it focuses on sustainable procurement, supply chains and overall construction policy. If we recognise the importance of protecting the environment and using building materials and methods responsibly, we will in turn create cities that are greener, smarter and happier than ever. Source: Khaleej Times Back to Index

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EMIRATES ON CLOUD NINE AS PROFIT SOARS 111% Thursday, November 9, 2017 Emirates airline on Thursday posted a triple-digit growth in first-half net profit and said its net income climbed 111 per cent to Dh1.7 billion as it carried more passengers during the period. The Dubai-based airline said it carried 29.2 million, or four per cent, more passengers during April-September 2017 period due to two per cent increase in overall capacity expansion. The airline's first-half revenue rose six per cent to Dh44.5 billion from Dh41.9 billion in same period last year due to improved seat load factors, tight control on capacity deployment, and the strengthening of currencies in Emirates' key markets against the US dollar. Emirates Group, the parent company of Emirates airline, also reported better-then-expected results and attributed the credit to capacity optimisation and efficiency initiatives, easing of strong US dollar, and steady business growth. Its first-half profit climbed 77 per cent to Dh2.3 billion while revenue rose six per cent to Dh49.4 billion. The group's cash position on September 30, 2017 was at Dh18.9 billion compared to Dh19.1 billion as at March 31, 2017. "A lot of the credit for our 2017-18 half-year results goes to our talented workforce who have worked hard to improve our business performance, and address our challenges without compromising on quality and service," Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group, said in a statement to Khaleej Times on Thursday. Dnata's first-half revenue also rose seven per cent to Dh6.3 billion while profit soared 20 per cent to Dh659 million as it handled 330,317 aircraft, reflecting an increase of 11 per cent. In addition, it handled 1.5 million tonnes of cargo, registering 25 per cent year-on-year growth. The airline faced turbulence in the year through March this year as it posted 70 per cent drop in income to Dh2.5 billion due to low oil prices and impact of the travel and electronics ban to the US-bound flights. "Our margins continue to face strong downward pressure from increased competition, oil prices have risen, and we still face weak economic and uncertain political realities in many parts of the world. Yet, the Group has improved revenue and profit performance. This speaks to the resilience of our business model, and the agility of our people," he said. The group saw steady revenue growth and a rebound on profitability compared to the same period last year, in spite of the continuing downward pressure on margins, a rise in oil prices, and other challenges for the airline and travel industry. It attributed the credit to capacity optimisation and efficiency initiatives across the company, steady business growth, and a more favourable foreign exchange situation compared to the same period last year. "The easing of the strong US dollar against other major currencies helped our profitability. We are also seeing the benefit from various initiatives across the company to enhance our capability and efficiency with new technologies and new ways of working. Moving forward, we will continue to keep a careful eye on costs while investing to grow our business and provide our customers with world-class products and services," Sheikh Ahmed said. In the past six months, the group's employee base reduced by three per cent compared to March 31, 2017, from an overall staff count of 105,746 to 102,669. This was largely a result of natural attrition together with a slower pace of recruitment, as various parts of the business adopted new technologies, streamlined business processes and re- allocated resources. Saj Ahmad, chief analyst at StrategicAero Research, said better exchanged and currency rates are key to Emirates' 111 per cent profit rise in first half, underscored by a rise in load factor to 77 per cent on the back of revenue passenger kilometres increasing by 5 per cent. "Despite the challenges, Emirates' own footprint continues to expand and with the closer working relationship with flydubai, integrating their networks and operations to better deploy resources will become an ever-more judicious process as they combat markets where excess capacity has eroded yields for everyone," Ahmad told Khaleej Times.

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In first-half, Emirates received 10 wide-body aircraft - four Airbus A380s, and six Boeing 777s. It will add 9 more new aircraft and retire four older aircraft from its fleet by March 31, 2018. The airline launched two new passenger services to Zagreb (Croatia) and Phnom Penh (Cambodia) during the period to expand its global network to 156 destinations in 84 countries. Ahmad of StrategicAero Research said Emirates has been more aggressive in clamping down on capacity by standing down aircraft and the phase out of older jets has help bolster the bottom line. "Behind the scenes, the steady rise of fuel, offset only by its homogenous A380 and 777 fleets, delivering better economies of scale, the pressure on yields has meant that Emirates is still facing wider competitive pressures as the impact of regional capacity increases and the chase for the same traffic ebbs away at fares and makes profitability harder to attain and sustain," he said. Source: Khaleej Times Back to Index

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KINGDOM HOLDING LIKELY TO RETAIN ASSETS FOLLOWING ALWALEED ARREST Thursday, November 9, 2017 Nearly a week on from the detention of Saudi billionaire businessman Prince Alwaleed bin Talal, questions remain about the future of his high-profile investments in some of the world’s largest companies. Prince Alwaleed was detained on Saturday in the wake of an investigation launched by Saudi Arabia’s newly established anti-corruption committee, chaired by Crown Prince Mohammed bin Salman, alongside several other prominent businessmen, marking a dramatic fall from grace for one of the country’s most prominent businessmen. But analysts suggest that Kingdom Holding Company (KHC), his investment vehicle, will hold onto its shareholdings in companies such as Four Seasons Hotels and Resorts, Citigroup, Twitter, Daimler, AccorHotels and Apple. “From a fundamentals standpoint, the company’s position is very strong, backed by the quality of its assets,” said Meriem Kaddour, an analyst with Alphamena in Tunis. “There is no reason for them to be selling assets, as the company is not in cash trouble, as their recent results confirm.” KHC earlier this week reported a 247.5 million Saudi riyal (Dh242m) profit for the third quarter, compared with a restated loss of 355m riyal for the same period last year. KHC’s chief executive Talal Al Maiman insisted earlier this week that the company’s strategy “remains intact” and that it retained the support of the Saudi government. “I suspect the government will punish the individuals accused of corruption but mostly leave their companies alone,” said a Middle East economist who asked not to be named. “The government is unlikely to come down too hard on companies such as KHC and Al Tayyar for fear of scaring away local and foreign investors, which it’s increasingly trying to bring into the country.” Nasser Al Tayyar, founder of Al Tayyar Travel, was also among those arrested earlier in the week. It emerged on Thursday that KHC had divested the remaining 5 per cent stake in Rupert Murdoch’s 21st Century Fox since the end of the last quarter. It is not known whether the sale of the shares had any connection to the anti-corruption drive, or who they were sold to. "Alwaleed is a key ally of Murdoch, so at a time when there's speculation over the future of Fox, it adds to the question marks,” said Alex DeGroote, media analyst at Cenkos Securities. “Previously, Murdoch could count on the support of Alwaleed in votes, but not anymore. Whoever takes up this stake later may or may not be as supportive.” The mood among other companies that KHC has invested in remains one of business as usual, for now at least. Twitter shares fell 2.6 per cent on Monday following news of Alwaleed’s arrest, but have since recovered ground. A Twitter spokesman declined to comment on the impact of the arrest on the company. Four Seasons Hotel Group said this week that it was “business as usual” for the hospitality operator. Egyptian real estate developer Talaat Moustafa Group, which is partnering with KHC for the expansion of the Four Seasons hotel in Sharm Al Shaikh, said in a stock exchange statement on Tuesday that the expansion was self- financed, and that KHC had no investment in the company. Ride-sharing app Careem, in which Alwaleed invested in June together with Daimler, had a similar message. "This matter does not affect the day to day operations of Careem,” a senior spokesperson told The National on Thursday. “We continue to simplify and improve the lives of people across the Kingdom and our network." Citigroup chief executive on Thursday described Alwaleed as “a very consistent, loyal supporter” in an interview with Bloomberg, while also hailing the country’s increasing openness. Source: The National Back to Index

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DUBAI'S SHUAA CAPITAL EYES CONTROLLING STAKE IN KUWAIT'S GLOBAL INVESTMENT HOUSE Tuesday, November 7, 2017 Dubai’s Shuaa Capital aims to conclude a deal to acquire a stake in Kuwait-headquartered Global Investment House (Global) “in the coming year”, its general manager said. Shuaa, which in October said it was interested in a deal with a Kuwaiti financial services firm, is currently in talks with the shareholders of Global for a controlling stake, Fawad Khan said in an interviewTuesday , without specifying the exact size of the shareholding Shuaa seeks in the company. The transaction is still subject to a commercial agreement between the parties and regulatory approvals. Shuaa, which was the top investment bank in the Arabian Gulf region before the 2008 financial crisis, has expressed intentions to gain scale through acquisitions and expand its footprint within the region. Its talks, however, for a possible merger with the Bahrain-based shariah-compliant GFH Financial Group, “were off the table,” Mr Khan said. “We are not talking to them at the moment. There is no immediate plan to recommence these discussions,” he said. “Instead we are looking at other opportunities for growth. We have disclosed our interest in Kuwait-based Global Investment House and believe this to be a better fit with our own business [than GFH].” Talks with Global, Mr Khan added, were in the preliminary stages and are based on perceived synergies between the two firms – in particular, Global’s significant and growing real estate asset management business, which is a core focus for Shuaa. Global is a regional asset management and investment banking firm with offices across Middle East and North African region. Last month, the company said its nine-month 2017 net profit more than doubled year-on-year, to 3.5 million Kuwaiti dinars (US$11.5 million). Total revenues stood at 12.1m dinars for the same period. On Monday, Shuaa said a strong performance in its own real estate asset management and credit businesses helped the company report a nine-month profit of Dh60m, its highest since 2007. The company, which fell on hard times after the financial crisis, had to go through financial restructuring in 2014. Shuaa’s net profit for the three months ending September 30 climbed to Dh23m, from a net loss of Dh35.3m, in the corresponding period last year, the company said in a statement to Dubai Financial Market, where its shares are traded. Cost cuts, Mr Khan said, have helped Shuaa’s return to profitability. The company and its subsidiaries, reduced the total headcount to 130 people in the third quarter of 2017 from 200 at the end of September 2016. This is reflected in a 40 per cent reduction in the general and administrative expenses in the third-quarter earnings, he added. Expenses in the third quarter also fell 85 per cent to Dh13.5m from Dh87.3m a year earlier, including a drop in provisions set aside for non-performing loans. “The significant drop in provisions was an achievement on its own, and is attributed to the newly adopted lending business strategy by the new board and management at Gulf Finance Corporation focused on secured lending and aggressive recoveries,” Mr Khan said. Restructuring of Shuaa’s business is complete and no further cost-cutting is planned. “Now is the time for Shuaa to look ahead and grow,” he said, adding that the company is actively seeking new acquisition opportunities for its capital markets and asset management businesses. Based on strong performance from the firm’s real estate business in Saudi Arabia, the biggest Arab Economy, it will remain a key area of focus for Shuaa in the coming year. It is holding discussions with regulator the Capital Markets Authority to list a real estate investment trust on the Saudi bourse in the first half of 2018, he said. Shuaa, has already identified seed assets for the fund including residential, education and hospitality properties, he noted. Source: The National Back to Index

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MIDDLE EAST INVESTORS GLOBALLY DEPLOY $10 BILLION IN COMMERCIAL REAL ESTATE Wednesday, November 8, 2017 According to global property advisor CBRE, Middle Eastern investment in global commercial real estate reached $10.1 billion in the 12 months leading up to Q2 2017, with the United States the top country target, while New York City and Washington are among the leading cities. After a period of exceptionally strong investment activity, outbound investments from the Middle East eased and returned to similar levels as recorded in 2013 and 2014. The Middle East nevertheless remains a major source of capital globally, representing 8 percent of total cross-regional investments between Q2 2016 and Q2 2017. The U.S. is the top country destination for Middle East investment volume, reaching $3.9 billion in the year to Q2 2017, slightly down from $10.3 billion during the same period in the previous year. London ($1.68 billion) was the leading city target for Middle Eastern investors, followed by New York ($820 million) and Washington, D.C. ($469 million). "Investors from the Middle East remain active buyers in the global real estate market and continue to target core assets with long leases in safe-haven locations. The recent decline in oil price only strengthened the case for investors to diversify their income streams, both in terms of asset classes and geographies; they are taking a long-term view," said Chris Ludeman, Global President, Capital Markets, CBRE. "While investors from other global regions are largely focused on the traditional commercial real estate sectors such as offices, retail and logistics, Middle Eastern buyers typically have a strong appetite for alternative asset classes such as hotels, residential, student housing and healthcare, as well as infrastructure," added Mr. Ludeman. In line with previous years, Sovereign Wealth Funds remain the largest source of Middle Eastern capital, acquiring $5.4 billion in real estate assets globally between Q2 2016 and Q2 2017, although this represents a decline of 17 percent year-over-year. High net worth individuals and private investors from the region were less active compared to previous years, which indicates that this group might be more susceptible to adverse market conditions. "It is becoming increasingly challenging to secure core assets with long leases in the current market environment, particularly with Asian buyers raising exposure to this segment, meaning investors need to be aggressive to win deals. Despite the impact on short-term outflows, the Middle East region remains an important source of global capital with buying activity likely to increase over time," added Mr. Ludeman. Source: World Property Journal Back to Index

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RETAIL SECTOR REMAINS BRIGHT SPOT OF BAHRAIN'S PROPERTY MARKET Wednesday, November 8, 2017 With positive government interventions to bring in more investors and diversify Bahrain's real estate market, retail remains a significant area of growth in the Kingdom's property sector. The renewed confidence amongst retail occupiers and retail developers is especially reflected in the fact that retail rents have remained stable over the last six months, according to leading international real estate consultancy, Cluttons. Commenting on the Bahrain Winter 2017/18 Property Market Outlook, Faisal Durrani, Head of Research at Cluttons said, "Retail is playing a central role in helping various areas in the Kingdom realize their full potential, with residential tenants being drawn to areas that offer high levels of retail penetration. We have noted an upturn in the number of community retail developments in locations such as Juffair, while larger shopping malls, such as the BD 45 million 'The Avenues', are being seen as game changers for the Kingdom's retail scene. We expect some 78,015 sqm of new retail space to be delivered across Bahrain this year, increasing to approximately 93,000 sqm in 2018 and in excess of a further 455,000 sqm by 2020. Separate to the development of retail malls, the Gulf's largest IKEA is on track to open next year at a cost of BD 47 million and is expected to create up to 600 new jobs." Cluttons research highlights that the depth of developers' confidence in the sector is reflected in the fact that it is currently tracking 21 retail schemes, spread across more than 1.05 million sqm, at a total cost of over BD 277 million. All projects are due to be completed between now and the start of 2020. Source: World Property Journal Back to Index

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LISTING OF ETIHAD REIT ‘POSTPONED UNTIL NEXT YEAR’ Saturday, November 11, 2017 The planned flotation of Abu Dhabi Financial Group (ADFG)’s new real estate investment trust (Reit) has been postponed to the first half of 2018 from this year, pending regulatory processes, one of its key advisors said. ADFG, an alternative investment company with US$5 billion in assets, said in April it planned to float the sharia- compliant Etihad Reit by the end of this year. The company said in a statement that it had set up the Reit with a seed portfolio of 10 properties, with Abu Dhabi- based property developer Eshraq Properties as one of its founding shareholders. However, Fawad Tariq Khan, ADFG director of investments and general manager of Dubai-listed investment bank Shuaa Capital, which is advising ADFG on Etihad Reit, said the listing had been delayed. “We are now looking at the first half of 2018 for the flotation while we go through regulatory processes with exchanges,” Mr Khan said in an interview with The National. Etihad Reit would be the first Reit domiciled in the Abu Dhabi Global Market (ADGM) financial free zone to list in the UAE, but regulatory processes with exchanges were taking longer than expected, he said. The Reit, which contains $700m of income-producing assets, is “fully functioning and already yielding dividends”, Mr Khan said. An established vehicle in the US, Europe and Asia, Reits are a type of publicly listed fund that typically own income- producing commercial real estate and are legally obliged to distribute a proportion of their income, usually 80 or 90 percent, as dividends to shareholders. The investment instruments are gaining popularity in the Gulf as investors seek more liquid real estate assets than standalone buildings. The largest Reit in the UAE, Emirates Reit, which is owned by Dubai-based fund manager Equitativa, has more than $1bn of real estate assets under management. Etihad Reit is a mixed-use portfolio, ADFG said, whose initial 10 properties are located across the UAE and have an average occupancy level of over 90 percent. Source: The National Back to Index

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OFF -PLAN SALES OVERTAKE READY FOR FIRST TIME SINCE 2008 Thursday, November 9, 2017 Off-plan sales now make up more than 50 per cent of all real estate transactions in Dubai for the first time since 2008. Now, off-plan is ahead of ready in a 51:49 split, according to data from fam Properties. This is in stark contrast to the times in the last 10 years when ready sales have exceed off-plan transactions by splits of as high as 88:12 (back in 2010), 85:15 (in 2011 and 2012) and 83:17 per cent in 2009, when the market took a deep hit. The gap has since been closing year on year, with off-plan volumes now ahead of ready sales this year. “We’re seeing a shift away from speculation in Dubai real estate as the market matures,” said Firas Al Msaddi, CEO of fäm Properties. “While initial launch phase sales by speculators have dropped, there has been a big increase in pre- handover sales within six to nine months of completion, and these buyers are largely medium to long-term investors or end users.” The gap could widen with a handful of major launches scheduled in the weeks before January 1. Source: Gulf News Back to Index

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DUBAI’S OFF-PLAN PROPERTIES RECORD 18,000 DEALS IN 10 MONTHS Wednesday, November 8, 2017 Dubai’s property market sure is buying its way out of a slump — between January to October, 18,000 units have been sold off-plan across the city, while in the ready-to-occupy space, another 9,623 transactions took place. Both numbers are up from the comparable period last year, in offplan’s case significantly so. In these 10 months, there was a 65 per cent spike in transaction numbers from 2015, with the Downtown and Dubai South the most actively traded locations. They accounted for 1,844 and 1,843 deals respectively, with Jumeirah Village Circle following close behind with 1,779 homes sold, according to data from GCP-Reidin. In the ready space, the year-on-year comparison is more modest, up 5 per cent. with properties in Dubai Marina retaining their status as the most traded. The cluster accounted for 1,525 units sold. International City was the only other location to cross 1,000 ready units sold during this period, the GCP-Reidin data show. “At the Marina, ready transactions are up 11 per cent on a year-to-date basis, and twice the citywide average,” said Sameer Lakhani, Managing Director at Global Capital Partners. “But a reduction in transactional activity is not necessarily indicative of lacklustre interest. “It is natural for transactional activity to decline in the ready space over time. Analysts are mistaken when they compare lower volumes with lower sentiments.” In fact, some of the more pronounced price gains are showing up at the mature freehold locations in the city. The villas at the Palm had the highest price gains — of 6 per cent — between January to end September. (They now average Dh2,420 a square foot). The homes at Jumeirah Village Circle came in second, up by 1.9 per cent to an average of Dh913 psf, the apartments on the Palm placed third, gaining 1.7 per cent to an average of Dh1,617 psf. When it comes to declines, Downtown recorded the steepest price fall, by 5.3 per cent to Dh1,5965 psf, the GCP-Reidin data show. The residences at Springs and Meadows were next, down 4.9 per cent to Dh1,099 between January to end September. Even International City is feeling the pressure of a marketplace in rapid change. Sure, it still managed to see just over 1,000 properties being sold in the first 10 months, but that’s 21 per cent off from 2016. Clearly, property buyers on a budget are looking at other options. “What we are seeing is an availability of other options that investors can take advantage of — Discovery Gardens, Remraam, Al Khail Heights — that are of newer build as well as in certain cases proximity to the workplace,” said Lakhani. “But International City will continue to remain predominately an investor- based product.” The current average at International City is Dh672 per square foot. (Between the market’s peak in early 2014 and the subsequent trough, International City prices dropped about 14 per cent.) In contrast, the rise of Dubai South as an investor favourite continues to see steady progress. With the first handovers of new homes likely before year-end, this could trigger a further spike in demand, both within the primary and secondary space, for Dubai South homes. According to Riaz Shariff, Director at Trimark Capital, “It’s clear that Dubai South presents a compelling value proposition. The “aero-tropolis” infrastructure envisaged a decade ago is now beginning to actualise, offering investors further opportunities to capitalise on.” Dubai South in line for pole position Dubai South could close the year as the most traded freehold spot for off-plan properties in Dubai. In the first 10 months, it was pipped by one deal — 1,844 for Downtown vs. 1,843 for Dubai South. But with the secondary market there likely to see more demand as the first handovers start, Dubai South could yet close the year in pole position.

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About 800 units are likely to be handed over in the coming weeks, all of which are homes built by third-party developers.

“The transactions the Dubai Land Department is releasing are a combination of primary and secondary market activity,” said Sameer Lakhani of Global Capital Partners. Dubai South’s “rise has been despite there being no post-handover payment plan offered in Dubai South for the most part. This indicates that at the right price for the right product, demand is present. “Premiums and discounts are a function of launch prices and that has been specific to the developer. What we do see is that on year-over-year basis, prices have risen in this area in the high single digits.” Source: Gulf News Back to Index

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MOTOR CITY: FOCUS ON HEALTH AND FITNESS Wednesday, November 8, 2017 It’s going to get busy at Dubai Motor City as developer Union Properties (UP) prepares to implement a revised master plan for the extension of the already popular community early next year. Union Properties recently signed a memorandum of understanding with the China State Construction Engineering Corporation (CSCEC) to jointly develop the new components, valued at close to Dh8 billion. “We will source the funding through direct finance or financial market instruments,” says Nasser Butti Omair Bin Yousef, chairman of UP. Yu Tao, president and CEO of CSCEC Middle East, confirmed his company’s commitment to the project. “We are willing to help in many aspects, as the financial market responds to most of our deals extremely positively,” says Tao. “So we believe with our excellent relationship with local and international banks, we can bring in that Chinese factor, banks and insurance, as well.” The design phase The project will take four years to complete and require an investment of Dh2 billion per year, according to Bin Yousef. “The first phase will be the Vertex, at the heart of the new master plan, 75 storeys high,” says Bin Yousef. “This will become the landmark of Motor City.” The Vertex will be composed of five towers, including a five-star hotel and serviced apartments. UP’s fully-owned subsidiary, Al Etihad Hotel Management, is starting its portfolio with three properties under development in Motor City and is expected to provide the hospitality services and take over the facility management. On the residential side, more than 11,500 new units from 44 low-rise and high-rise buildings and around 150 villas are being planned. Businesses will appreciate the 300,000 sq m of office space that will be developed, while residents and visitors can take advantage of the expanded retail space. A sporty lifestyle Motor City is well known for the Dubai Autodrome, but it has also flourished into a green residential haven. “We want to re-energise the community,” says Saw Ying Huei, consulting architect of UP. “Sport is one part of it. We want to make health and fitness a priority. Activities that you usually do outside, you’ll be able to do that inside during the summer’s hottest months. And it won’t be just another ski or skating rink in a mall.” Huei says the design team is now fine-tuning the master plan. “The developer wants to innovate its old asset, which was the park. The empty land will now become a city. And what was originally going to become the Automall will now become mixed-use spaces,” he says. Union Malls, another recently created subsidiary of UP, will be in charge of what is to be known as The Central, a four- storey complex filled with shops, cafés and eateries, and a lot of leisure and sporty activities. While motor sport is still part of the plan, there will be room for ultra-modern spacious cycling facilities, a super-sized swimming pool and a running track. “It’s not just about showing off cars; there is plenty of that but there are people who want to do other things,” says Huei. Huei explains that landscape designers of Singapore’s park project, inspired by Cornwall’s Green Eden project, were involved. “We’re not doing gimmicky architecture, but one where people like us want to live. It will look very much like a Green Eden project indoors; there will be plants and the air will be rich in oxygen,” explains Huei. The hotels will also be sporty. “We’ll be looking at sports hotel operators; they are already very popular in Mallorca and Asia, like Phuket,” says Huei. The park concept will have space for residential properties to be built around it. “All the best properties in the world are around parks. We don’t want another huge massive project, that is not the point, but to re-energize the old master-plan.” Source: Gulf News Back to Index

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DUBAI’S HOUSING HANDOVER UPSURGE Wednesday, November 8, 2017 Dubai has seen a significant upsurge in new home handovers during the first half of the year, with 12,525 deliveries as opposed to 5,039 during the same period last year, according to data from REIDIN. Dubai Silicon Oasis had the most handovers with 2,740 units, Dubailand had 2,588 units and International City had 1,679 units. The other communities with significant handovers were Downtown Dubai (1,411), Business Bay (869) and fast-emerging Jumeirah Village Circle (694). “The market upturn in 2011 gradually led to a recovery in the prices, and as the market [improved], a significant number of off-plan projects were launched from the end of 2013,” says Suraj Poon, senior global property sales consultant at Gulf Sotheby’s International Realty. “With an average of three years completion time, there is bound to be substantial handovers in the first half of 2017.” Generally, there is a difference between delivery dates announced by the developers and the actual completion dates, as seen in the last couple of years. However, Ozan Demir, research and data manager at REIDIN, points out that government regulations are now forcing developers to hand over projects on time. “Payments towards off-plan property purchases are protected with escrow accounts, wherein the investors’ payments are released to the developers once the construction reaches certain milestones,” says Demir. “We have seen around 12,500 handovers during the first half, of which a majority were apartments, villas and town houses totalling 10,000 units. The rest were serviced apartments across Dubai.” Demir says the increase in unit handovers this year reflects the developers’ reaction to the market. “We have seen many launches between 2013 and 2014, while property prices were climbing upwards, and those developments are now in the handover phase, says Demir. “When we analyse the past three-year period, project materialisation rate stands at 60 per cent. In other words, 60 per cent of the expected units at the beginning of the year will be added to the market. The rest will be delayed and the stock will be added to consecutive years.” “As per our latest research, Dubai’s real estate supply is currently synced with demand when we consider a materialisation rate of 50-60 per cent and population growth rate at 6 per cent. If Dubai’s population continues to grow at a rate of 6 per cent a year, this means it can absorb around 20,000-25,000 units a year with the current conditions.” Demir points out that any sudden boost in handover may affect the current equilibrium and prevent a price recovery. “Around 25,000 units are in the pipeline in the second half of the year, and 40,000 units are in the pipeline in the first half of 2018. Based on the previous year’s materialisation we expect half of what has been announced to be handed over.” Supply and demand Manika Dhama, senior consultant, strategic consulting and research at Cavendish Maxwell, says the housing demand in Dubai is influenced by white-collar population growth. “While this number has increased in absolute terms since 2014, the percentage contribution of this segment in total population has declined from 44 per cent in 2014 to 40 per cent last year,” says Dhama. “Meanwhile, housing stock has continued to increase over this period, with nearly 12,000- 15,000 new units being added each year in freehold areas alone. The impact of increasing supply has had a more pronounced effect on rents, with 12-month declines averaging 3-4 per cent as of September. “However, there are community-level differences in how demand stacks up against supply, and this incorporates factors such as household sharing ratios, migration trends, project handovers within the community, as well as lower-priced inventory entering the area.” Citing figures from the Property Monitor supply tracker, she says that approximately 30,000 apartment units, 896 villas and 2,500 town houses are scheduled for completion next year. “The historical trends of handovers within each month reveal that the materialisation rate could be less than 50 per cent of the announced supply by the time 2018 ends.” Some of the factors that cause project delays include financing issues, contractual disputes and other interruptions, says Dhama. “In response to the falling rents and prices, developers are now increasingly resorting to staggered delivery schedules to avoid swamping the market with new units, driving prices further down.”

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On the other hand, handovers are based on factors including the financial strength of the developer to complete construction on time, regulatory documentation from the government and phased delivery by the developers.

“Handovers completed in first half of 2017 include projects that have been delayed from previous time periods and hence together with initially projected completions for this period, the total handovers appear higher than earlier years,” says Dhama. “Several stalled projects from 2013-14 or even earlier have now been able to complete, possibly as a result of project financing for the affected projects or off-plan sales.” Here is the low-down on the top-performing communities this year. Dubai Silicon Oasis Demir says around 7,500 units are expected to enter the market from Dubai Silicon Oasis (DSO) in the next three years. The place is preferred by mid-income families because of its location and its commercial and residential amenities. “DSO is one of the top areas for rental returns. While average apartment gross yield in Dubai is around 7 per cent, investors in DSO can expect around 9 per cent return on the apartments. Existing supply is around 12,500 units and more than 60 per cent will be added in the next three years period. The area has around 90 per cent occupancy rate, hence, there is high absorption.” The completed projects this year include four from Binghatti Developers, which added around 700 units, and Seven Towers, which added 1,000 units. Other private developers brought in about 1,000 units. “Around 3,500 units are expected to be handed over next year, if all the developers deliver in the announced timeline,” says Demir. “Key projects include Binghatti Stars and Vista, Topaz Residences, Arabian Gate and Serenity Heights.” Dubailand Tarun Amarmani, global property consultant at Gulf Sotheby’s International Realty, says that over 50 projects are scheduled for handover in Dubailand over the next 12 months. “Most of these are new phase developments of existing smaller communities,” says Amarmani. “For instance, in Mudon an additional 600 units are to be handed over in the first half of next year. Similarly, Damac, Liwan, Al Barari and Reemram will be handing over additional units within the community.” Projects such as Vincitore Palacio and town houses, villas and apartments in Damac Hills are among the projects that were handed over during the year, he says. The community caters to both the low and high income individuals, offering them different options. “The place offers good value for money for end users as it provides affordable housing and it’s well sized units also serve perfect for them,” says Amarmani. “The investors get high rental yields, as their capital investment is low. The community still has to undergo a lot of development, however, since the residential units are increasingly getting handed over in the area, retail spaces should be well planned and developed on time to accommodate the rising population and their needs and requirements in the community.” Commenting on the occupancy rates, he adds that these are not very high but are decent as the community is still slowly developing. “The place covers a huge area, wherein few parts of the place are heavily occupied, and areas that are undergoing construction are more silent.” International City Demir says there are 3,600 units in the pipeline in International City until the end of 2020, based on developer announcements. “International City is one of the most affordable communities compared with the rest of the city, with easy access to both Shaikh Mohammad Bin Zayed and Emirates Roads,” says Demir. “Occupancy level in this place currently stands at 91 per cent. The existing supply in this area stands at around 35,000. Hence, the 10 per cent increase in the supply this year is likely to be absorbed easily by the investors and residents. The projects that were completed and handed over this year included Warsan Village Townhouses by Nakheel and many other single buildings by private developers. The place offers 9.3 per cent gross rental yield, one of the best areas.” Downtown Dubai Poon says 11 projects are expected to be completed next year, adding 4,832 new units in Downtown, with 27 per cent hotel and serviced apartments and 73 per cent residential units. Among the key projects will be The Address Residences Fountain Views and Sky View and Burj Vista by Emaar Properties.

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“Downtown caters to large and nuclear families as well as executive working singles, and the place has an average occupancy rate between 80 per cent and 85 per cent,” says Poon. “All units delivered in the first half this year were under the hotel/serviced apartment category. “The place was one of the best-performing residential markets in the city during the market upturn in 2011. Investing in a well-established master community like Downtown provides certainty and security.” The area itself is a recognised brand with iconic structures such as the Burj Khalifa and the recently opened Dubai Opera. “By the end of 2021, all of Emaar’s flagship developments in Downtown will be completed, which is predominantly the completion of this mega master community,” says Poon. “This is an indication that the demand for property will only be on the up.” Business Bay Citing the Property Monitor, Dhama says more than 2,000 apartments and about 1,000 hotel rooms are expected in Business Bay next year. Some of the major projects to be completed next year include Damac Towers by Paramount, MajestineAlure with serviced hotel apartments, Marquise Square Tower, The Pad by Omniyat and Moon Tower by Arabia. “Since the master developer, Dubai Properties, began selling plots in Business Bay to private developers in 2005, this community has emerged as one of the core business districts of Dubai,” says Dhama. “Investors can avail of several types of properties ranging from residential, commercial, hospitality and mixed use. Also, this community is located right off Shaikh Zayed Road, close to the airport, the Dubai International Financial Centre and Downtown Dubai, which has helped maintain stable investment yields.” There are still undeveloped plots closer to the canal. “Occupancy rate in this area varies by building, with better- maintained buildings operating at more than 85 per cent occupancy,” says Dhama. “However, with the upcoming supply, these could also come under pressure. The place has a variety of stock available, both for residential and office units. This variation thus creates a disparity in overall occupancy and demand levels, with healthy demand levels being maintained for better-managed buildings as opposed to occupancy pressure for grade B stock.” Jumeirah Village Circle An emerging community with competitive prices, Jumeirah Village Circle (JVC) continues to evolve with its infrastructure is still under development. “Over 600 units have been handed over in JVC as of the third quarter. These include Al Yousuf Towers, Park Square and Pantheon Boulevard, among other projects from private developers,” says Dhama. While a significant number of projects are still under development, existing infrastructure and community facilities, as well as proximity to locations such as Dubai Marina, Jumeirah Lakes Towers and Jebel Ali, “make JVC a popular location for renting and hence it usually tops the off-plan market activity tally,” says Dhama. Source: Gulf News Back to Index

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LOOKING FOR THE BARGAINS Wednesday, November 8, 2017 Our most recent research has showcased a broadly stable third quarter in terms of sales compared with the previous quarter, however, it was the year-on-year figures that have notched the more pronounced decline. From an apartment perspective, we noted average softening of 4 per cent, with Business Bay and Dubai Marina both posting an 8 per cent drop, followed by Dubai Sports City, International City and Jumeirah Village, each recording a fall of 7 per cent. It was only The Greens and Dubai International Financial Centre that remained on par with Q3 2016. Rental rates have shown a more drastic drop in the apartment market, particularly when compared to Q3 2016, with rates indicating an average drop of 12 per cent. Dubai Marina posted the highest decline in rental rates at 19 per cent compared with Q3 2016, followed by Downtown Dubai (18 per cent), Dubai Sports City (16 per cent) and Bur Dubai (16 per cent). The question asked by many is why have these sought-after premium locations witnessed the largest declines? Market conditions have served to strengthen the negotiating position of many residential and commercial tenants. Many existing tenants have taken this opportunity to renegotiate their lease terms. Impact The supply of new developments, particularly those with a larger number of dwellings, are regularly offered below market rate to encourage speedy take-up. As a result, rates for high-end properties, as well as mature units in established neighbourhoods, tend to soften as landlords and developers compete to retain tenants and encourage investors, impacting the price. Landlords, especially corporates, have offered incentives such as increasing the number of cheques accepted and longer rent-free periods to entice take-up, especially in newly handed over communities that still lack supporting infrastructure, retail and leisure facilities. Single-unit owners, especially those with mortgages, were also more inclined to reduce rental rates to increase take-up, rather than undergo prolonged periods without any rental income. Both factors have contributed to the drop in rents. When considering the best bargains in Dubai we have to look at the circumstances of the tenant and investors. Generally speaking, the most affordable communities are located inland or further away from urban areas, but affordability is not just location specific, it also depends on a number of criteria, including but not limited to supply and demand, the quality, age and condition of units and supporting infrastructure and facilities within and around the project. Tenants looking for the best deals in apartments need look no further than International City where rental rates for a studio apartment range from Dh25,000-Dh35,000, Deira (Dh25,000-Dh55,000), Bur Dubai (Dh30,000-Dh55,000), Jumeirah Village (Dh34,000-Dh48,000) and Dubai Sports City (Dh34,000-Dh50,000). That said, the price point between traditional so-called affordable property and mid-to-high end properties has reduced. In Dubai Marina and Jumeirah Lakes Towers, studio apartments start from Dh45,000, just a Dh10,000 difference from the higher end of the affordable properties. In the villa rental market, two-bedroom units are available in areas such as Mirdif (Dh70,000-Dh110,000), Springs (Dh100,000-Dh130,000), Jumeirah Village (Dh100,000-Dh140,000) and Arabian Ranches (Dh115,000-Dh165,000). Interestingly, the line between rental rates for different unit types within the same community is becoming increasingly blurred. Jumeirah Village is a prime example of this, with a rental range of Dh100,000 to Dh140,000, tenants can choose between a two-, three-, four- and five-bedroom town house. Forecast The sheer volume of properties announced and anticipated for delivery over the next few years will continue to put further pressure on rental rates. The impact on some projects will, however, be less notable if they benefit from unique

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demand drivers such as favourable location, advanced facilities, quality finishes, excellent property management and a range of incentives.

Even if not all of these units materialise due to construction delays and phasing, we expect that a large number of dwellings will be offered to the market on discounted rates. From an investor perspective, the general rule of thumb is more affordable units have the potential to return higher yields. International City and Discovery Gardens are within the affordable bracket, have high demand from tenants and, therefore, return good yields. Although villas still have the potential to return competitive yields, the smart money is on apartments, with studios and one-bedroom apartments offering the best returns. Location is another important factor. Completed communities with a wealth of amenities have higher yields when compared to those still under construction. Overall, tenants and investors have benefitted from more choices, as well as lower pricing and more flexible payment terms. Source: Gulf News Back to Index

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AZIZI CONFIRMS NOVEMBER LAUNCH FOR DH25B PROJECT Tuesday, November 7, 2017 The boom times for off-plan launches in Dubai is not about to take a breather — Azizi Developments has officially confirmed that it launch a Dh25 billion (in sales value) development at “central Dubai” this month itself. The project will draw inspiration from a “British-inspired lifestyle”. The developer had earlier launched a Dh12 billion venture, at Meydan One. It had been one of the most heavily promoted — and sold — projects at the recent Cityscape Global event. “Azizi Developments is steadfast in its commitment to developing properties in Dubai and promoting it as one of the top-ranking cities in the world, surpassing the likes of Singapore, Hong Kong and New York,” said Mirwais Azizi, Azizi Group Chairman. Of late, Azizi has been promoting Dubai’s realty’s resilience internationally, with the opening of its first international sales offices in Chennai (India) and with plans to open more in the GCC, the UK and Pakistan in the near future. “Dubai remains a stable investment choice for foreign investors. The size and scale of our new project is a testament to this, and reiterates our alignment with Dubai’s Vision 2021,” the Chairman added. Source: Gulf News Back to Index

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DUBAI IS SIXTH MOST VISITED CITY ON EARTH: EUROMONITOR Wednesday, November 8, 2017 Dubai has retained its crown as the most visited city in the Middle East and landed sixth in the world in the latest global ranking of tourist destinations. Euromonitor International unveiled on Tuesday the Top 100 City Destinations Ranking for 2017 and the latest report shows there are now more tourists visiting Dubai than many other places on earth. Top performing cities in Middle East, 2017top cities Dubai has moved one place up, from the seventh to the sixth position, edging out tourist hotspots like Paris, New York, Rome and Tokyo. It is the only Middle Eastern city in the top ten and is expected to attract more than 26 million visitors by 2025, overtaking London, which is currently in the third place. Overall, Hong Kong held on to its title of the most visited city in the world for the eighth consecutive year, followed by Bangkok. The top ten most visited cities in the world are: 1.Hong Kong: 26.6 million visitors 2.Bangkok: 21.2 million visitors 3.London: 19.2 million visitors 4.Singapore: 16.6 million visitors 5.Macau: 15.4 million visitors 6.Dubai: 14.9 million visitors 7.Paris: 14.4 million visitors 8.New York: 12.7 million visitors 9.Shenzhen: 12.6 million visitors Kuala Lumpur: 12.3 million visitors According to Euromonitor’s data, the number of tourists visiting Dubai has jumped by 11.2 per cent, from 14.9 million in 2016 to more than 16.5 million in 2017, making it a far more popular destination of choice for travellers compared to most cities on earth. Burj Dubai crowds “Dubai seems insulated from all the turmoil that is going on around it. The city’s tourism industry is booming,” Euromonitor said. The city’s rise to popularity is thanks to the integrated approach by all industry players under the 2020 vision. This year, Dubai is regarded as the most sought-after destination for business travellers, or for meetings, incentives, conferencing and exhibitions (MICE) due to its modern infrastructure and premium lodging landscape. BUS_dwtc “Regional offices in free zones further strengthen the case for business travellers,” said Nikola Kosutic, Euromonitor senior research manager.

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“Dubai’s focus on developing world-class theme parks across adventure and entertainment, such as Legoland and Motiongate, are driving demand in the family holiday segment,” she added.

“The dominance of four to five-star lodging discourages aspiring tourists from developing countries but expansion of mid-market options and Airbnb helps bridge the gap thereby sourcing more tourists.” Other key takeaways of the new ranking Dubai is by far the largest and fastest-growing destination in the Middle East and Africa, but Saudi Arabia has three cities in the top ranking. "The hajj is a major draw for arrivals to the country, but the kingdom is looking to ensure it is not just Mecca that benefits," Euromonitor said. "While Dubai is booming, many cities are dealing with turmoil." The top ten most visited Middle East and African cities are: 1. Dubai 2.Mecca 3.Johannesburg 4.Riyadh 5.Dammam City 6.Cairo 7.Doha 8.Jerusalem 9.Tel Aviv 10.Marrakech Dubai has recently bagged a number of awards during the World Travel Awards, which seeks to honour excellence in the tourism industry. The emirate was named the Middle East’s leading destination of the year, while a number of its landmarks, including the Burj Khalifa and Burj Al Arab were declared the region’s leading tourist attraction and leading all-suite hotel for 2017, respectively. Source: Gulf News Back to Index

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DUB AI TOURIST ARRIVALS UP 7.5% THIS YEAR Tuesday, November 7, 2017 Dubai is on track for another record year in terms of tourist volumes, according to the latest data released by Dubai’s Department of Tourism and Commerce Marketing on Tuesday morning. A total of 11.58 million international overnight visitors arrived in Dubai during the first nine months of 2017, reflecting a 7.5 per cent increase over the same period last year. Dubai Tourism says that these figures underline the strength of the emirate’s tourism industry, as well as the growing appeal of Dubai as a global tourism destination of choice. India retained top spot on Dubai’s list of source markets for inbound tourism, with 1,478,000 Indian tourists arriving in the city between January and September, registering a 20 per cent rise over the same period in 2016. The government body says it attributes this steep rise to its promotional push with Bollywood actor Shah Rukh Khan. Meanwhile, China stayed in fifth place with an impressive 49 per cent year-on-year growth, delivering 573,000 visitors in the first nine months of the year and continuing to benefit from regulatory changes introduced in late 2016 granting Chinese citizens free visa-on-arrival access to the UAE. Saudi Arabia and the UK also retained their positions as Dubai’s second- and third-largest feeder markets respectively. A total of 1.25 million Saudis and 905,000 British travellers arrived in the emirate between January and September 2017, the former showing a slight drop compared to the first nine months of 2016, reflecting the ongoing economic challenges facing Saudi Arabia, while the UK witnessed a 2 per cent year-on-year increase. These positive results were bucked by Oman and Kuwait, which saw declines of 23 and 3 per cent respectively. All other top 10 feeder countries posted healthy increases in tourist traffic, including sixth-placed United States, up 6 per cent; seventh-placed Pakistan, up 4 per cent; eighth-placed Iran. up 16 per cent; and ninth-placed Germany, up 6 per cent. From a regional perspective, the GCC emerged as the largest contributor of overnight visitor volumes, with a 21 per cent share compared to second-placed western Europe’s 20 per cent. These were closely followed by south Asia with a share of 18 per cent, the Middle East and North Africa (Mena) and north and south-east Asia regions with 11 per cent each, the Americas, Russia, CIS and eastern Europe bloc with 6 per cent each, Africa with 5 per cent and Australasia with 2 per cent. Source: Gulf News Back to Index

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RECORD NUMBER OF TOURISTS FLOCK TO DUBAI IN JANUARY-SEPTEMBER THIS YEAR Tuesday, November 7, 2017 A record number of tourists, close to 12 million, visited Dubai during the first nine months of 2017, attracted by the emirate’s landmarks, such as the Burj Khalifa and Dubai Fountain, and numerous other lifestyle offerings. Between January and September this year, a total of 11.58 million international overnight visitors visited Dubai, reflecting a 7.5 per cent increase over the same period last year, according to Dubai’s Department of Tourism and commerce Marketing (Dubai Tourism). India remained the biggest feeder of tourist traffic, accounting for 1,478,000 travellers and showing a 20 per cent rise over a year ago. Tourists from the Asian country were apparently attracted by the promotional activities held in Dubai, including the influencer-led collaborations with Bollywood superstar Shah Rukh Khan. Dubai has recently bagged a number of accolades during the World Travel Awards held this month, which seeks to honour and reward excellence in the tourism industry. The emirate was named the Middle East’s leading destination of the year, while a number of its landmarks, including the Burj Khalifa and Burj Al Arab were declared the region’s leading tourist attraction and leading all-suite hotel for 2017, respectively. Burj Khalifa The other two biggest sources of visitors for Dubai are Saudi Arabia and United Kingdom, which sent 1.25 million Saudis and 905,000 Brits between January and September 2017. However, there is a slight decline in visitor arrivals from Saudi Arabia, which is due mainly to the “ongoing economic challenges facing the country." The number of visitors from the UK went up by 2 per cent despite the continued Brexit instability. Chinese visitors represent the fourth-biggest contingent, registering a 49 per cent year-on-year growth in tourist numbers. Dubai Tourism also pointed out that all the top ten markets for Dubai’s tourism, with the exception of Oman and Kuwait, which saw declines of 23 and 3 per cent, respectively, sent more visitors this year compared to last year. The number of American tourists went up by 6 per cent, making the United States, the sixth-biggest contributor of visitor traffic. Pakistan, ranked in the seventh position, registered a 4 per cent increase in tourists, while Iran and Germany, occupying the eighth and ninth positions, respectively, registered an increase of 16 per cent and 6 per cent, respectively. But the source market that posted the biggest increase in tourists during the same period is Russia, up by 95 per cent. This is obviously due to the recent introduction of UAE visa-on-arrival for Russian citizens. The Philippines, which emerged as the 11th biggest source of tourists, as well as France (in the 15th), Jordan (17th) and Lebanon (19th) also posted double-digit year-on-year increases of 10, 12, 18 and 15 per cent, respectively. Source: Gulf News Back to Index

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EMPOWER COOLS DUBAI’S SEVEN PRESTIGIOUS BUILDINGS Tuesday, November 7, 2017 Seven of the 10 most beautiful and uniquely-designed buildings in Dubai are served with the district cooling system provided by the Emirates Central Cooling Systems Corporation, Empower, the world’s largest district cooling services provider. These buildings were chosen by the UAE newspaper Emarat Al Youm and real estate website AqaratDubai.ae as among the top 10 most prominent landmarks in Dubai. Empower has announced that the Burj Al Arab, Raffles Hotel Dubai, Jumeirah Beach Hotel, Atlantis The Palm, DIFC – Gate Building, Emirates Towers, and JW Marriott Marquis Hotel Dubai preferred to use district cooling, rather than conventional cooling, and have entrusted Empower to provide the services. The use of district cooling in buildings has become a central part of the construction planning and design, as more property developers realise the value of energy-efficient technologies in delivering less expensive and greener built environment. "We are proud to provide services for the most prominent landmarks in Dubai and its most beautiful buildings. Moreover, it is equally important to highlight the internal works that go with the other aspects of the building, particularly their cooling methods. District cooling makes the buildings truly deserving of their titles, given it consumes less water and electricity, amid the global call for reducing carbon dioxide emissions from energy use," said Ahmad Bin Shafar, CEO, Empower. Studies show that district cooling can save approximately 50 percent of the energy used for cooling, compared to conventional methods, which makes the system one of the major energy efficiency accelerators in the world, as declared by the United Nations-led initiatives on energy efficiency. The system is cost-efficient and also saves on resources. Market research has revealed that the global market for district cooling solutions could grow from US$5.14 billion in 2016 to $9.54 billion by 2021 at a compound annual growth rate of 13.19 percent from 2016 to 2021. From an economic perspective, rising energy prices, growing environmental concerns and increasing awareness on low-cost and highly efficient cooling systems are major drivers for their growth. Apart from addressing environmental sustainability, Empower notes that modern district cooling makes it easy for companies to maintain their air-conditioning systems, as the solution is remotely maintained in a highly-controlled environment, thereby, improving safety and security and reducing the leakage rate. Source: Emirates 24/7 Back to Index

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28,600 BUILDINGS UNDER CONSTRUCTION IN DUBAI - 5,633 COMPLETED THIS YEAR Wednesday, November 1, 2017 Layali Al Mulla, Director of the Buildings Department in Dubai Municipality, has said that 5,633 buildings, covering a total construction area of 75,150,033 square feet, were completed in Dubai this year up to the end of September, while the number of buildings under construction is about 28,600, covering an area of 551,034,564 square feet. Abdullah Al Shezawi, Head of the Engineering Supervision Section in the Buildings Department said that the section has conducted more than 105,500 visits to construction sites this year. "We received 42,267 requests for construction site inspection from the beginning of the year until the end of September. 'Green' concrete was used for construction projects at a total area of 4,605,906 feet, which resulted in a reduction in the carbon dioxide ratio of nearly one million tons. The section has also received 9,000 requests for site inspections for the purpose of building completion certificates," he said. Al Shezawi also noted that a specialised team is available around the clock to respond to communications related to construction work. "By the end of the third quarter of this year, the Municipality Call Centre had received 1,878 reports about all kinds of cases of non-compliance with engineering and safety requirements at sites under construction, and the team responded and processed them at the required speed and according to specific performance measures, taking all necessary procedures and requirements after coordination with the concerned bodies and departments to reduce the negative effects, risks and losses resulting from cases of non-compliance," he said. Source: Emirates 24/7 Back to Index

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WASL TO LAUNCH 3RD TOWER OF PARK GATE RESIDENCES FOR SALE SOON Friday, November 10, 2017 Wasl1 is an iconic parkside freehold master development in the heart of Dubai developed by wasl Asset Management Group. Strategically located adjacent to Zabeel Park at the gateway between Old and New Dubai and just a stone's throw from Sheikh Zayed Road and the Jafiliya metro station, wasl1 will keep residents connected with every end of the city while also providing a fully integrated set of lifestyle choices right at their doorstep. The first phase of the development called Park Gate Residences consists of four towers and is home to 746 contemporary units offering residents the option of 1-, 2- and 3-bedroom apartments as well as podium townhouses and penthouses. Many units overlook the lush green gardens of Zabeel Park - making nature their private backyard. In the nearby serenity of the park, residents will find exceptional amenities including lawn areas, swimming pools, water features, children's play areas, fully equipped gymnasiums, a multi-purpose hall, and a range of entertainment facilities, as well as 25,000 square feet of leasable retail area that will mean there is never a dull moment at wasl1. The project promises to unlock an extraordinary lifestyle for residents looking for exceptional facilities and wanting to live in a tranquil environment while remaining at the heart of the vibrant city. The release of the first two residential towers, due for completion by mid-2020, generated a huge amount of interest and was tremendously successful with very few units available. Buoyed by the success of the two towers, wasl will soon launch a 3rd tower for sale. Source: Khaleej Times Back to Index

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OFFPLAN TRUMPS DUBAI READY HOME SALES IN 10 MONTHS Wednesday, November 8, 2017 Dubai has witnessed an uptick in both ready and off-plan transactions annually in the first 10 months of 2017. Approximately 9,183 ready properties were sold from January to October 2016, as compared to 9,623 units in the comparable period in 2017, a marginal increase of five per cent. However, off-plan sales recorded a staggering annual increase of 65 per cent, with 18,000 units being sold so far this year as opposed to 10,939 units in the comparable period last year, according to GCP-Reidin data. The standout performers in the off-plan category were Dubai World Central (annual sales growth of 880 per cent), Dubai Hills Estate (628 per cent), Jumeirah Village Circle (152 per cent) and Dubai Creek Harbour (88 per cent), says Reidin data. "One of the biggest changes that we have seen this year in the off-plan market is extremely attractive payment plans, coupled with offers of DLD fee waivers. There is also the absence of an agent's fee to pay in nearly every case. It's not only investors buying off-plan, there are a lot of end-users too. If a buyer is renting at the moment and looking to purchase, the payment plans and fee reductions can make cash flow a lot easier and they are happy to wait for the development to hand over," says Lewis Allsopp, CEO, Allsopp & Allsopp. The area where off-plan sales have risen the most is Dubai South, where there are no such generous payment plans being offered. This suggests that there is latent demand in areas even when such payment plans are not offered as well. "There has been a genuine rise in demand in many areas [undoubtedly payment plans have played a part, and arguably in some cases have even gone overboard]; however, the data suggests that in emerging communities, the demand has been there because of other factors as well [price, future location and desirability of community, either current or future]," says Hussain Alladin, head of IR and research at Global Capital Partners. According to David Godchaux, CEO of Core Savills: "DWC saw very attractively positioned lower entry products launched in phases such as The Pulse and Towers by MAG, etc. JVC saw the phases of Belgravia as one of the best- performing developments, elevating both the area and transaction average. Creek Harbour is both an investor and end- user product with good payment plans, backed by the developer's reputation and the flagship project anchoring the new district." Meanwhile, in the ready apartments market, Discovery Gardens saw the biggest increase in transactions at 42 per cent. "Discovery Gardens is in an excellent location with improving transport links and relatively close to the Expo 2020 site. It remains a popular area to live and it offers a fantastic return on investment. It's not a huge surprise to see it doing well," observes Allsopp. However, Core Savills attributes the spike in transaction activity in Discovery Gardens to a few bulk deals concluded this year. Communities such as International City, International Media Production Zone (IMPZ) and The Greens have recorded a fall in the number of ready units sold so far in 2017. "Both IMPZ and International City provided one of the lowest entry points for sales in Dubai two to three years ago. In the last 12 to 18 months, there are many more outer areas offering a variety of products which have spread the demand across, thereby affecting transaction volumes of older areas. IMPZ has seen a shift of its demand to newer and sometimes more attractive units at similar entry points in JVC and JVT while International City witnesses increasing competition from products in Dubailand," explains Godchaux. A fall in transactional activity could also be construed as a positive sign, indicating that there are less units available for sale in the market. According to the Reidin data, there were fewer transactions for ready villas in Arabian Ranches (-6 per cent), Jumeirah Park (-22 per cent) and the Palm Jumeirah (-25 per cent).

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"The villa space was considered relatively overvalued and to that extent, a drop in investor activity was going to be more pronounced, especially given the fact that the upper and luxury end of the market has suffered the brunt of the decline in this market cycle, both in terms of price as well as rent," says Alladin. Renovated or newly delivered villas on the Palm Jumeirah have seen good demand since many older units require higher renovation costs. Many other prime and new villa districts offer quality options such as Emirates Hills, Dubai Hills Estate, Jumeirah Golf Estates - these help spread demand. "Ready villas have been largely an end-user driven product as families prefer staying in villas while investors are less attracted due to lower yields. End-user demand in general has been flat over the last 12 to 18 months as the sentiment of uncertainty persists, in contrast to stronger investor demand driven by low-priced products, attractive payment plans and high yields," maintains Godchaux. The nominal drop of six per cent in Arabian Ranches is potentially due to its newer phases (off-plan) and Mira absorbing some demand. Core Savills estimates that Jumeirah Park villas have seen over 12 per cent drops in the last two years (20 per cent from the peak), one of the highest in the villa market. "Landlords in these areas do not wish to exit the market at negative premiums while rent levels are still able to sustain yields and mortgage payments, making sense for owners to hold on to property, meaning lower activity levels in the market," concludes Godchaux. Source: Khaleej Times Back to Index

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HOW THE EARLY BIRDS ARE REAPING GOOD RETURNS AT DUBAILAND Wednesday, November 8, 2017 For those of you who think the community of Arjan in Dubailand is a work in progress, think again. The precinct is seeing a lot of residents moving in to take advantage of competitive rents as well as developers handing over projects. One among them is Vincitore Real Estate Development which is helming two projects at Arjan - Vincitore Palacio and Vincitore Boulevard. The two projects take up 500,000sqft and the developer has another 800,000sqft in Arjan to keep themselves busy for the next few years. Palacio, a single tower comprising 175 apartments and 5,000sqft of retail, is ready for handover whereas the six-tower Boulevard project with 216 apartments and 40,000sqft of retail facing Dubai Miracle Garden will be ready by April 2018. The developer is also looking to acquire plots near the Dubai Water Canal, City Walk and Downtown Dubai. "We are trying to fill the gap in the market for mid-segment branded real estate. The quality we offer is, however, on par with top-notch products. We have a lot of repeat customers in our second project," says Vijay Doshi, managing director at Vincitore Real Estate Development. With four top schools in its vicinity - Safa School, Kings' School, Foremarke School and Nord Anglia International School - Arjan could be a good investment for families. While units released for sale in Palacio have been sold out, Vincitore has retained a few apartments to be released closer to handover. Who is buying? "We have several people currently renting in Arjan who are waiting for Palacio to be handed over so they can move in. We have clients from Emirates airline, oil and gas workers from Abu Dhabi, government employees, investors and overseas customers as well," says Doshi. Boulevard features only studios and one-bed apartments and the developer believes the project will cater to tourists considering its proximity to Miracle Garden. Three buildings out of six have been sold out and Vinctore intends to retain two for leasing. "We have international clients looking at short-term rentals. They can get eight per cent net rental three years from now. The holiday home concept will work very well at Boulevard since it overlooks Miracle Garden," maintains Doshi. The developer claims properties at Palacio have seen good price appreciation. For instance, a studio was launched at Dh475,000 and has today appreciated to Dh570,000. The average sales price for a Palacio studio is Dh1,225 to Dh1,275 per sqft (ones facing the pool come at a premium) while a one-bedroom is priced from Dh1,150 to Dh1,200 per sqft. Sanjay Chimnani, managing director, Raine & Horne, believes Arjan is a good fit for end-users looking for affordable homes. "It is priced around Dh850 to Dh1,000 per sqft. Current rental yields in Arjan are in the region of seven per cent," he informs. However, he warns that anyone moving into the area will see construction for some time to come. "There are a few construction sites in the area and like much of Dubailand, this is surely a site which is a work in progress," Chimnani adds. Commenting on infrastructure at Arjan, Doshi adds: "The road network is done, power sub-station is complete, 90 per cent of street lights are functional and the sewage system is working. This is the right time for an investor or end-user to be a part of the Arjan success story. Road connectivity is also good to Mohammed bin Zayed Road and Umm Suqeim Road. We have a My City centre Barsha, play centres, restaurants, clinics and spas." The top executive advises developers to avoid bulk deals and instead offer post-handover payment plans to genuine end-users. He also warns end-users to do due diligence on a property's liveable area before signing the dotted line.

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"Developers are reducing the size of the liveable area to maximise profits and offer units at a particular price," warns Doshi.

Vincitore has funded both its projects with its own equity and help from non-banking institutions. "Before we commence construction, we arrange for our funds till handover. We don't depend on sales for construction finance," he clarifies. Undeterred by the cyclical nature of Dubai real estate, Doshi adds: "Every market has ups and downs. Dubai, London and Mumbai, for instance, are cities where the price correction in real estate will not persist for long. The government only wants serious players to be in the market. This is healthy for investors and end-users." Source: Khaleej Times Back to Index

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HERE'S A VIABLE OPTION FOR COST- CONSCIOUS BUYERS, TENANTS IN DUBAI Tuesday, November 7, 2017 Launched in 2004, Dubai Sports City combines a mix of residential units and a multi-venue sports complex, constructed on Sheikh Mohammed Bin Zayed Road near Motor City. The three residential districts are a combination of apartment buildings and villas/townhouses, including Canal Residence, Gallery Villas and Victory Heights. Developed by Bukhatir Group, Dubai Sports City has recently become a viable alternative for buyers and renters looking for lower priced units. According to Property Monitor's Supply Tracker, Dubai Sports City has 4,800 units scheduled to be completed by the end of 2017 and a further 1,100 units in 2018. However, many projects are yet to reach near-completion stage, with only eight weeks left in the year. Thus, majority of handovers could be delayed into 2018. This is a substantial number of units being delivered into the community within a short period of time. The increasing supply of apartments in Dubai Sports City may place pressure on the future sales and rents of apartments within the area. The Property Monitor Index shows there has been a 4.3 per cent decrease in residential rental prices in Dubai Sports City in the last 12 months, with the current average rent for a one-bedroom apartment decreasing to Dh65,500. The average rent of a two-bedroom apartment is currently Dh81,375, compared to Dh90,000 in October 2016. The declining rents mean that more attractive options are available for those who are migrating to this area. As has been noticed in most areas across Dubai, the amount of rental cheques a tenant can pay with has increased. The increase in competition has helped ease the burden on tenants, giving them the power to negotiate on the rental contract and number of cheques is a part of that. The market has seen a gradual shift, with two to three cheques being the norm, and four cheques progressively becoming common. With regards to Dubai Sports City apartments in October 2016, rental payments of four cheques dominated contracts with 56.5 per cent, while two and three cheques made up 43.5 per cent of rental payments. In the past years, tenants paying in more than four cheques was unlikely, however, instances of 12 cheques are also being seen for Dubai Sports City apartments. In October 2017, 30.8 per cent of rental payments were in 12 cheques, while 23.1 per cent of rental payments were through four cheques and 46.2 per cent as one, two and three cheques. This trend is likely to continue into 2018 with six and 12 cheques rental agreements expected to become more common. In recent years, post-handover payment plans have also become more prominent in the market. This, along with favourable mortgage products, has led to a significant upward trend in off-plan sales in 2017. With reference to Dubai Sports City, off-plan apartment studios make up 55.7 per cent of the bedroom mix in the community, with an average sales price of Dh451,700. Examples of available payment plans include that of Classic Soccer Tower, which requires a down payment of 40 per cent, with the remaining 60 per cent being separated into four payments throughout the development progression of the building. Similarly, the payment plan for Elite Sports Residence 10 requires a down payment of 40 per cent. However, it offers two options of due dates for the remaining 60 per cent of the payment. The first option is five payments, whereas the second option is three payments with 40 per cent being handed in one year after the handover of the building. In payment plans that are more weighted towards post-construction payment (for instance, 40/60, 30/70), majority of the inflows are linked to completion. Hence, in such cases, the developer is more incentivised to deliver the project in order to realise these cash flows. Such payment plans have contributed to attracting first-time buyers. However, buyers must conduct thorough due diligence on the developer's track record, among other factors like project quality, comparable market prices and rents, before signing onto such plans. Source: Khaleej Times Back to Index

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DH41M DUBAI HILLS 'BLANK CANVAS' VILLA AWAITS NEW OWNER'S ARTISTRY Wednesday, November 8, 2017 We would all like to design our own home, if not from the ground up then certainly how the interior should look. A problem many property buyers find however, especially with new builds, is that they are put off by the developer's own vision, or that of the previous owner. Now, a rare opportunity has arisen for those looking to buy in Dubai - although it will require a hefty amount of money first. This Dh41.6 million villa in Dubai Hills comes as a blank canvas. The exterior is complete, but the interior can be moulded as per the new owner's imagination to make the home of their dreams. The seven-bedroom home is part of the upmarket 11 million square metre estate, which features three architectural styles. This one in particular is a "Contemporary" villa composed of sleek angular lines and floor to ceiling glass panelling. Other options include Mediterranean villas inspired by Spanish and Italian coastal homes, or Arabesque villas reminiscent of traditional Arab domiciles. The villa is spread over three levels, including a basement, and every facet can be customised from the paint on the walls to the layout and functionality of each room. “When it comes to off-plan properties, this is an ideal choice for the discerning buyer,” said Jason Hayes, chief executive of Luxury Property. “It helps to avoid the pain of architectural drawings, building permits and 24 months of construction, plus the inevitable headaches that come with all of that. The home is delivered as one vast open space. Just take the keys and design the internal configurations of the rooms as you desire.” It has views over Dubai Hills Golf Course, providing a tranquil setting in which to set up what would make a comfortable family home. The outside landscaping is ready for design and can include a swimming pool should the new owner fancy taking a dip. The number of off-plan property deals in Dubai jumped 118 per cent in the third quarter to Dh4 billion from the previous quarter, according to a report from Chestertons released last month. Downtown Dubai accounted for half of the value of off-plan transactions in the third quarter, while Dubai South led in the volume of transactions with 1,151 deals, Chestertons said. Source: The National Back to Index

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CAN I DEMAND A MONTH'S FREE RENT RENT FOR NOISY CONSTRUCTION WORK NEXT TO MY DUBAI APARTMENT? Wednesday, November 8, 2017 I have rented a two bedroom apartment in Dubai in a new building at Al Barsha since August 2016 for Dh83,000. Recently four new construction sites have sprung up around the building, making a load of noise. I renewed my contract on August 2017 and asked for a discount as the prices had dropped but they only gave me a Dh1,000 reduction. When the construction started on the sites, many tenants left the building, so 20 of the 55 apartments are now empty, and the price now for similar apartments to mine is Dh75,000 to Dh78,000 per year. I sent the agency handling the building a request for an additional reduction but they said it was not possible. Can I ask for one month's free rent at the end of my contract? So if my contract finishes on August 2018, can I request to leave on September 2018? AT, Dubai Legally, any changes to a contract can only be made giving 90 days' notice from the renewal date. With reference to your negotiations, you can of course request the owner gives you this extra month for free as long as he agrees. My suggestion would be to notify him 90 days prior to the renewal date to explain what you wish for, be it the extra month for free or any other changes. These changes have to be in writing. It might be helpful to invite the owner to the apartment for this meeting so he can hear for himself what you are going through. If, however, you do not get to any mutual agreements, inform the landlord that you will not renew and then look for another suitable property. With the way the rental prices are currently heading, it would not surprise me if you would achieve a better rent with another property. Is now the right time to buy in Central London or should I wait? AS, Dubai Predicting when the time is right to enter any property market, let alone London, is not for the faint hearted. Getting it right means you will have hit the nail on the head about many factors, such as the British economy, the buyer's sentiment, knowledge about future infrastructure spending such as on roads and transport, new amenities/facilities etc. That said, there are a few factors that are known about the UK market that will allow us to give a best guestimate of future performance. On the negative side, there is still the uncertainty of Brexit and while the negotiations are still ongoing, buyers will be cautious about spending money on large ticket items such as property. I suspect this alone will cool the market leading to low transactions and growth. Last week, the Bank of England raised interest rates by 0.25 per cent. While this is not a huge amount, it will still have a negative effect on mortgage costs, again making buyers think twice. The changes to stamp duty since 2014 have also had a negative effect on London house prices, which in turn has led to price reductions on asking prices after a period of marketing. On the positive side, not enough properties are being built to keep up with demographic demand. London can only build on brownfield sites and this limits the number of property inventory entering the market. In the past, Central London has witnessed an average of 5.7 per cent house price growth per annum but with tax changes such as stamp duty and the uncertain buyer sentiment due to Brexit, this growth is likely to evaporate away. Taking all of the above into consideration, I believe you should wait before purchasing in central London, at least until 2019 as the next two years will likely see subdued growth if at all. Property prices will most likely return to growth in 2020, by then, central London house prices will be perceived to be good value.

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Another element to consider is the strength of the dollar against sterling. The pound devalued by 20 per cent last year in the wake of the Brexit announcement, since then it has regained most of its losses so I guess the time to have jumped into the London property market with the dollar in your pocket would have been last year. For now, just keep an eye on sterling; unless there is a momentous event, it is unlikely to lose ground to the extent it did last year but should it fall again to a greater extent, that too would be the trigger point to enter the London market. Source: The National Back to Index

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AMLAK SAYS THAT THIRD QUARTER PROFIT DOUBLES AFTER IMPAIRMENT REVERSAL Tuesday, November 7, 2017 Amlak, the Sharia'a-compliant mortgage financing company, said its third quarter profit more than doubled after a reversal of impairment on Islamic financing and investment assets. Net income attributable to equity holders of the parent rose to Dh11.8 million in the three months ended September 30 compared to Dh5.67m in the same period last year. The firm said that its Islamic financing and investing assets rose to Dh7.1m in the third quarter compared to a loss of Dh5.3m in the same period last year due to what it said was an improvement in asset quality of its portfolio. "I am pleased with the Q3 2017 results and expect the same trend to continue for the remainder of 2017," said Arif Alharmi, managing director and chief executive officer of Amlak. "Amlak will continue to focus on core business development, product and service differentiation, and driving profitability and value for our shareholders. We will continue with our strategy and efforts to develop the Nad Al Hamar land plots which will support the overall profitability of the company. While there may be challenges ahead, I am confident that Amlak is well-positioned to capitalize on the improving economic backdrop in the UAE and I look forward to seizing these opportunities." Income from Islamic financing and investment assets dropped to Dh45.6m in the three months ended September 30 compared to Dh49.7m in the same period last year, the firm said. Source: The National Back to Index

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DUBAI’S SHUAA CAPITAL SWINGS TO PROFIT IN THIRD QUARTER, EYES ACQUISITIONS Monday, November 6, 2017 Shuaa Capital, a Dubai-listed investment bank, is eyeing acquisitions as it swung to a third quarter net profit thanks to cost cuts and a strong performance in the real estate asset management and credit businesses, the company said. Net profit in the three months ending September 30 reached Dh23 million (US$6.2m) compared with a net loss of Dh35.3m a year earlier, the investment bank said in a statement to the Dubai Financial Market (DFM). “Our operations are now stream-lined and we are actively looking for growth in the Middle East and North Africa region through both organic expansion and acquisitions,” said Fawad Tariq-Khan, general manager of SHUAA Capital. Nine-month net profit reached Dh60m, the highest for an annual period since 2007, compared with a net loss of Dh113.6m in a year-earlier period. However, third-quarter revenue fell 39 per cent to Dh29.6m from Dh48.7m a year ago. Total expenses in the third quarter fell 85 per cent to Dh13.5m from Dh87.3m a year earlier, the company's financial statements showed. Profit at the real estate asset management business soared to Dh6.3m in the third quarter from Dh0.7m, while the credit lines business swung to a profit of Dh15.7m, compared to a loss of Dh38.6m a year earlier, the statement said. The fortunes of Shuaa began to turn around in 2014. Alternative investment company Abu Dhabi Financial Group also bought last year a 48.36 per cent stake in Shuaa and fleshed out a new strategy to breathe life into the struggling Dubai investment bank that focused on growing assets under its management, leveraging its balance sheet and increasing its business in Saudi Arabia and Egypt. Shuaa cited the announcement of plans to manage the development of the Dh1.5 billion ‘Dubawi’ mixed-use tower on Dubai’s Sheikh Zayed Road as a key achievement. Meanwhile, the group’s credit business – comprising Gulf Finance UAE and its sharia-compliant arm Gulf Finance Saudi Arabia – has benefited from the group’s 2014 turnaround strategy, Shuaa noted, which has seen the company return to profit that year after making a loss of Dh300m in 2011. In the third quarter, the company announced a planned expansion of its securities brokerage business that includes the launch of a Cairo office by the end of the year. Meanwhile, Shuaa’s capital markets division “continues to break ground and build on strength in the market making space”, the company said. Source: The National Back to Index

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MUBADALA SIGNS DEAL WITH FRENCH FIRMS TO INVEST UP TO €1B Wednesday, November 8, 2017 Mubadala Investment Company signed an agreement with French firms CDC international Capital and Bpifrance to develop an integrated platform to invest up to €1 billion to support the development of French enterprises as well as technology start-ups. The agreement was signed during the official visit of France President Emmanuel Macron to the UAE. According to the announcement made on Thursday, the investment platform will comprise of two strategic components. The first component pursues and increases the size and scope of the existing co-investment partnership known as “FEF” which was launched by CDC International Capital and Mubadala in 2014 to support the development of French enterprises with a proven growth potential. FEF has already committed nearly 300 million euros through long-term investments in health care, education, elderly care and real estate. Building on this track record, the two partners will jointly increase the capacity of this program up to 500 million euros, the statement said. A second component, dedicated to technology and innovation in France, will see Bpifrance and Mubadala invest up to 500 million euros in start-ups and more mature technology companies through both direct investments and venture capital funds. The program will focus on information and communication technologies, biotech, green tech and other fast-rising technology sectors. “We see France as a significant growth market, in both established and new enterprises. We want to build on our successful partnership by expanding our investments in areas we believe hold long-term commercial potential for both France and the United Arab Emirates,” said Waleed Al Mokarrab Al Muhairi, CEO of Mubadala’s Alternative Investments and Infrastructure Platform and Mubadala’s Deputy Group CEO. Source: Gulf News Back to Index

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AJMAN A MAJOR ATTRACTION AT WORLD TRAVEL MARKET Wednesday, November 8, 2017 The 36th edition of the World Travel Market (WTM) kicked off on Monday in London with the participation of a high- level delegation from the Ajman Department of Tourism Development (ADTD), headed by Director General Saleh Mohamed Al Geziry together with the marketing and promotion team and a number of hotels and tour operators from the emirate. On the first day of the exhibition, the ADTD's pavilion saw an excellent turnout of visitors from the tourism industry and media outlets, and a busy schedule of meetings and interviews with the director general and all members of the delegation, including the representatives of the emirate's hotels and tourism agencies. Al Geziry said: "The ADTD is committed to participate in this international exhibition, which brings together more than 5,000 exhibitors from over 180 countries, with over 51,000 participants." "Outbound tourism operators from Britain, the host country, and from all over Europe, Asia, Africa and the Americas come to meet here, and the ADTD cannot afford to miss the opportunity of participation in such a high profile event. Our presence here will help highlight our tourist attractions and bring many advantages to the tourism and hospitality sector in the up-and-coming tourism industry in the emirate." He pointed to the direct benefits of participation in the meetings that took place on the first day of the exhibition: "I have just held a series of meetings with key tourism operators that have a proven track record in outbound tourism activities to different countries of the world." Al Geziry said: "I am very optimistic about the coming period. Through hard work and joint efforts we are able to reach the desired level." Al Geziry said the ADTD's participation with a delegation representing hotels and companies aims to promote tourist attractions in Ajman, and to highlight the emirate's many landmarks as well as the abundance of resorts, hotels and new tours. Christophe Mousset, the General Manager of The Oberoi Beach Resort Al Zorah, said they count on the UK market to advance the resort's business, and expect a 20 per cent growth compared to the current business level. Michele Frignani, the general manager of Ajman Saray, pointed out that the participation in the exhibition will help strengthen the hotel's presence in the UK market. "The promotion plan with partners addresses all details that would meet the requirements of the UK and international market," he said. Sid Sattanathan, general manager of Radisson Blu Ajman, said they have some interesting projects and plans and excited to implement them to see how it works within the first quarter of next year. "Ajman's target markets have been the UK and Germany for the past years. This year, they hosted roadshows targeting and concentrating on the Russian, CIS and Scandinavian markets, which will have a huge impact during the coming year. And 2018 will also be the time to expand focus on the Asian market, primarily India and China. The main strategy for the coming years is to make Ajman a niche tourism destination, develop archeological tourism sites and promote investment opportunities in the emirate," he concluded. Source: Khaleej Times Back to Index

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AL ISLAMI FOODS OPENS ITS LARGEST FACTORY IN THE MIDDLE EAST Tuesday, November 7, 2017 Leading UAE halal food manufacturer Al Islami Foods has opened its biggest food production facility in the Middle East in Sharjah’s Hamriyah Free Zone. According to Al Islami Foods, the new 10,000 square metre (32,800 sq. ft.) factory is expected to create over 100 new jobs, increase the company’s food product production by 150 percent and allow it to launch a range of new products. Al Islami Foods is one of the largest food manufacturers and distributors in the Arabian Gulf region, offering more than 100 frozen and speciality food products. The company currently employs about 350 people across its operations in Brazil, India, Kuwait and the UAE. Exporting to the GCC states, the broader Middle East, plus markets such as the Seychelles, Maldives and Mauritius, the new Sharjah factory will help the company increase production of Halal processed meat products to 18,000 metric tonnes per year. The new state of the art facility will also enable Al Islami to offer a range of new food solutions, such as products for the in-flight catering industry, sous-vide (vacuum packed) solutions for the hospitality industry and cooked products for the HORECA (hotel, restaurant and cafe) sector. With a heritage dating back to 1970, Al Islami Foods distributes over 100 frozen food items under two brands to local and export markets. Al Islami-branded products include whole chicken, chicken parts, burgers, chicken nuggets, franks, snack foods, seafood, vegetables and fruit, while the Aladdin brand offers a range of food products for children. Favourable business terms and a strategic location have made Hamriyah Free Zone Authority increasingly popular for food manufacturers. Earlier this year, the zone launched ‘Sharjah Food Park’, a regional hub for the Middle East and North Africa’s multi-billion dollar food industry, dedicated to food import, export, storage, manufacture and packaging. Covering a total area of 11 million square metres (118 million square feet), and offering warehousing, office space and labour accommodation, the new zone will be the region’s largest dedicated facility for food industries. Established in 1995, Hamriyah Free Zone is Sharjah’s largest free zone and the second largest industrial hub in the UAE. The free zone houses over 6,500 enterprises from 157 countries, attracting foreign investment from more than 500 industry verticals in the key sectors such as oil and gas, petrochemicals, maritime, steel, construction and food products. The free zone allows 100 percent foreign ownership, exemption from commercial levies, repatriation of capital and profit, no corporation or income tax and no import or export tax. Source: The National Back to Index

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SHARJAH TO HOST LARGEST ENTREPRENEURSHIP FESTIVAL IN THE UAE Monday, November 6, 2017 Sharjah Entrepreneurship Center, Sheraa, conducted a press conference to announce the launch of the largest entrepreneurship festival in the UAE at the Sheraa Hub, American University of Sharjah in the presence of leading industry experts and strategic partners. Celebrating and recharging the spirit of entrepreneurship, Sharjah Entrepreneurship Festival (SharjahEF) makes its grand debut in Sharjah this November, 2017. SharjahEF, organized and led by Sheraa, is set to be held on 21st and 22nd November 2017 at the Sharjah Golf and Shooting Club. The UAE’s outstanding entrepreneurial environment will witness the largest and most innovative entrepreneurial event, providing a unique platform for global and local entrepreneurs, investors and innovators to explore its diverse and fertile ecosystem. Sharjah Entrepreneurship Festival aims to celebrate entrepreneurship and gather all the key players to inspire, empower and connect. The festival welcomes youth, entrepreneurs, government partners, potential investors and industry veterans from the global business community to experience the unique atmosphere of SharjahEF bringing together over 1500 attendees for two full days of inspiring conversations, empowering workshops, and the region’s 60 best startups showcasing at Startup Town. The startups will also be pitching in the festival’s Pitch Competition for a chance to win up to AED 150,000, judged by an external committee of ecosystem leaders. Najla Al-Midfa, General Manager at Sheraa commented, “Launching the inaugural edition of the Sharjah Entrepreneurship Festival is just one of the many ways Sharjah’s entrepreneurial ecosystem is coming together to fuel not just established startups but also aspiring entrepreneurs. This 2-day celebration of entrepreneurship aims to inspire new achievements, generate thought-provoking discussions, and rejuvenate the ecosystem’s spirit and passion for building a better future.” Najla Al Ansari, Project Lead of Sharjah Entrepreneurship Festival stated, “Sharjah Entrepreneurship Festival will bring together the best and brightest of people in the entrepreneurial ecosystem to celebrate the power of entrepreneurship and inspire further innovation. We look forward to making Sharjah Entrepreneurship Festival a milestone event in the UAE entreprenurship landscape.” The gathering of prominent mentors and business magnates will deliver discussions and insights into a range of topics including social entrepreneurship, creative economies, future and disruptive technologies, fintech, and the cultivation of the startup ecosystem. The event will include notable investors, strategic partners such as Emaar and Sharjah Media City (Shams), and an impressive lineup of 80+ speakers. Hadi Badri, Chief Strategy Officer of Emaar said, “Sheraa has been actively fostering the entrepreneurial culture and environment of Sharjah, and we are honoured to be the strategic partner for Sharjah Entrepreneurship Festival. The festival provides a great platform for the country’s incredible talent to promote themselves and their ideas. There is also an exceptionally strong alignment in the commitment of both our organisations to nurturing the new generation of entrepreneurs to create a dynamic eco-system in UAE that contributes to national growth.” Shihab Al Hammadi, Director of Shams highlighted, “We are keen to strengthen and establish our relationship with Sheraa and delighted to be the strategic sponsor for SharjahEF – a partnership that falls in line with our strategy for taking a proactive role in supporting emerging projects and facilitating the entry of young entrepreneurs into the market. Given this background, we see great potential in collaborating with Sheraa in their efforts to enhance growth, add jobs and build creative communities.” SharjahEF will also be introducing The Seffy Awards, a set of nine prestigious awards for entrepreneurial merit in the UAE’s startup industry to recognize excellence in achievements as assessed by a popular community vote. The various categories include the Entrepreneur of the Year award, the Tech Startup of the Year award and the Sheraa Rising Star of the Year award. The Tech Startup of the Year award has 7 winners, from industries including Travel & Tourism, Fintech, Food & Beverage, Creative Economy, Social Enterprise, Cleantech, and Logistics & Transportation. The ticket shop is now open with Regular tickets on sale, and startups can still apply for the opportunity to showcase. Source: Sharjah Update Back to Index

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SHORT -LEASE PROPERTY IN LONDON Wednesday, November 8, 2017 While international buyers have been familiar with the UK property market for many years and know what type of property they are looking for, which locations they favour and even what price point they should expect, another aspect many may not be so accustomed to is the different levels of ownership available to them. The British system is unique in that there are distinct pros and cons to each of the different types of home ownership and understanding these differences is vital in determining whether your property is a viable asset. Put simply, a house in the UK is typically owned on a freehold basis, meaning that you own the property and the land it is on. However, if you own a flat, it is more than likely that you own it on a leasehold basis, with the freeholder or landlord controlling how many years you can own the property for and perhaps imposing restrictions on the owner, such as banning sub-letting. Many leases are granted on a 99-year term, while some run for 999 years. Usually once a property has less than 50 years remaining on its lease, we begin to see owners enquiring about the process of extending to 100 years plus, which is very simple to do. Pied-à-terre Short-lease properties are attractive to a very specific type of buyer; those who are looking for a property that will offer a certain lifestyle. We often find these buyers are seeking a pied-à-terre close to London’s most iconic locations and have disposable income to top up the lease when needed. For second-home buyers, there is also the additional benefit of saving significantly on the stamp duty tax that comes with owning a second home in the UK. As such, buyers of short-lease properties can ease the financial burden caused by additional government taxes and free up considerably more disposable income to enjoy the elite lifestyle they have obtained. What’s more, with the London super prime market consistently seeing price drops due to Brexit and stamp duty changes, purchasing a short-lease property, where the ownership terms are more flexible, offers an attractive option to live within a prime postcode with more security than renting can offer, while not worrying about current market conditions. Short lease We are currently marketing a short-lease property in Eaton Square, Belgravia, and while many would believe that the short lease on the property would serve as a deterrent, we have found that many international buyers, particularly from the Middle East, have found this unique factor to be extremely attractive. This is not only because it is located in London’s prestigious Eaton Square, which has been named the most desirable place to live in Britain, and perhaps the whole of Europe, but because it offers the opportunity to adopt an attractive apartment in this enviable postcode at a fraction of the cost. The property was originally granted for a 20-year term, and now has two years and nine months remaining. In accordance with Grosvenor’s lease extension policy, a new 20-year lease may be granted, subject to negotiation with The Grosvenor Estate. Favourite Eaton Square has always been an iconic location for residential investment among buyers from the Middle East, more so than ever before due to the regeneration taking place in nearby Victoria and the proximity to great schools. Short- lease properties present excellent value as they can be snapped up for as little as a third of the cost of an average property in the area. Unsurprisingly, homes in this sought-after region do not come on the market often, but when they do, the interest tends to be almost entirely from overseas purchasers. Although many buyers tend to be anxious about having to go through the process of a lease extension, it is actually a much simpler process than many realise and the benefits of a short lease can far outweigh the challenges for the right buyer. Source: Gulf News Back to Index

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INDIA'S ECONOMIC WOES HIT DEMAND FOR DUBAI REAL ESTATE Sunday, November 5, 2017 Dubai real-estate developers have flocked to Mumbai in the past days to target potential homebuyers from one of the emirate’s largest buyer markets, even as the slowdown in the Indian economy has tapered demand. The three-day Dubai Property Show in India's financial capital, organised by the Dubai Land Department, concluded on Sunday, with presentations from developers including Nakheel, Azizi Developments, MAG and Dubai Properties “We remain very committed to the [Indian] market,” said Sanjay Manchanda, the chief executive of Nakheel, for whom Indians make up most of its foreign customers. “Everybody has indicated the fact that these emerging economies are going to be the economies that everybody will have to focus on in every business sector.” But slowing economic growth in India has impacted buyers’ appetite for real estate in Dubai and elsewhere. The country’s economic growth fell to a three-year low of 5.7 per cent for the three months to the end of June, impacted by the government’s controversial demonetisation programme launched late last year. Indians are still the biggest foreign buyers of property in Dubai, purchasing Dh12 billion worth of real estate in the emirate last year, according to figures from the Dubai Land Department. That represents a 40 per cent year on year decline compared with 2015, the department said. Dubai meanwhile is facing its own challenges, with apartment property prices declining by 4 per cent in the third quarter year-on-year amid a weak outlook for oil and the global economy, according to a report by Asteco. “The market has slowed down because of [factors including] the dollar, oil prices, Brexit,” said Omar Al Mesmar, the general manager of Dubai Investments Park. But he said he had seen good levels of interest at the exhibition. “[However] the Indian market is [still] very important and we can't miss such an exhibition.” he said. Some developers resorted to offering free hotel stays and attractive payment plan deals to lure Indian buyers at the show. Held at the Bandra Kurla Complex business district in the city, the event was inaugurated by Bollywood star R Madhavan. But developers did acknowledge some issues that could hamper sales. “Obviously there are a few factors which have made the investor think,” said Nakheel’s Mr Manchanda, who cited the closer monitoring of overseas investment by the authorities, which only permit Indians within India to remit $250,000 abroad a year each. “People I think are a little bit more careful, making sure that they have not transgressed any regulations back home in India while they're investing.” He said that demonetisation had also had an effect. “It's not only Indian investments overseas, but Indian investment in India. That sentiment at home is probably spilling over into Dubai in some measures.” One visitor at the show, Hitesh Rathod, who has a transport business, said he wanted to look at the opportunities to buy a property in Dubai after he visited the emirate last month for the first time for a one-week holiday. “Prices are quite similar to Mumbai,” he said. “I'm going to think about it.” Historic trade ties, the large Indian expat community, and the geographical proximity, mean that developers remain confident that Indians will remain critical customers in the years to come. “The UAE and India's relationship has only been strengthened over the passage of time,” said Vijay Sajjanhar, the chief financial officer of Dubai Sports City. Last year, the show in Mumbai received more than 4,000 visitors, generating sales enquiries worth Dh1.2 billion, according to the event’s organisers. Source: The National Back to Index

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MORTG AGE APPLICATION VOLUMES IN U.S. GO FLAT IN EARLY NOVEMBER Thursday, November 9, 2017 According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 3, 2017, U.S. mortgage applications remained unchanged from one week earlier. The Market Composite Index, a measure of mortgage loan application volume, remained unchanged on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 9 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 49.0 percent of total applications from 48.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.6 percent of total applications. The FHA share of total applications increased to 10.6 percent from 10.4 percent the week prior. The VA share of total applications increased to 10.0 percent from 9.9 percent the week prior. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.18 percent from 4.22 percent, with points decreasing to 0.38 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 4.12 percent from 4.16 percent, with points decreasing to 0.24 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.05 percent from 4.07 percent, with points decreasing to 0.43 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 percent from 3.52 percent, with points remaining unchanged at 0.44 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 5/1 ARMs remained unchanged from the week prior at 3.33 percent, with points increasing to 0.59 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week. Source: World Property Journal Back to Index

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LOS ANGELES NOW LEAST AFFORDABLE HOUSING MARKET IN U.S. Friday, November 10, 2017 According to the latest National Association of Home Builders-Wells Fargo Housing Opportunity Index released this week, San Francisco, which has been the nation's least affordable housing market for nearly five years, was supplanted by Los Angeles in the third quarter of 2017. In all, 58.3 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $68,000. This is down from the 59.4 percent of homes sold that were affordable to median-income earners in the second quarter. "Though builder confidence remains strong, they continue to deal with the long-term repercussions of this devastating hurricane season, which has exacerbated chronic labor and lot shortages and put upward pressure on material and home prices," said NAHB Chairman Granger MacDonald. "Solid economic growth, along with ongoing quarterly job gains and rising household formations, are fueling housing demand," said NAHB Chief Economist Robert Dietz. "Tight inventories and a forecast of rising mortgage interest rates through 2018 will keep home prices on a gradual upward path and slowly lessen housing affordability in the quarters ahead." The national median home price rose to $260,000 in the third quarter from $256,000 in the second quarter of 2017. Meanwhile, average mortgage rates inched up two basis points in the third quarter to 4.1 percent from 4.08 percent in the second quarter. For the fourth consecutive quarter, Youngstown-Warren-Boardman, Ohio-Pa., was rated the nation's most affordable major housing market. There, 90.1 percent of all new and existing homes sold in the third quarter were affordable to families earning the area's median income of $54,600. Meanwhile, Wheeling, W.Va.-Ohio, was rated the nation's most affordable smaller market, with 94.7 percent of homes sold in the third quarter being affordable to families earning the median income of $56,100. Rounding out the top five affordable major housing markets in respective order were Syracuse, N.Y.; Scranton-Wilkes Barre-Hazleton, Pa.; Indianapolis-Carmel-Anderson, Ind.; and Wilmington, Del.-Md.-N.J., which tied for the fifth spot with Cincinnati, Ohio-Ky.-Ind. Smaller markets joining Wheeling at the top of the list included Lima, Ohio; Davenport-Moline-Rock Island, Iowa-Ill.; Bay City, Mich.; and Mansfield, Ohio, which also posted a fifth place tie with Binghamton, N.Y. Los-Angeles-Long-Beach-Glendale, Calif., assumed the mantle as the nation's least affordable major housing market. There, just 9.1 percent of the homes sold during the third quarter were affordable to families earning the area's median income of $64,300. San Francisco-Redwood City-South San Francisco, Calif., which stood as the nation's least affordable major housing market for the past 19 consecutive quarters, fell to No. 2. Other major metros at the bottom of the affordability chart were located in California. In descending order, they included Anaheim-Santa Ana-Irvine; San Jose-Sunnyvale-Santa Clara; and Santa Rosa. All five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Salinas, where 11.3 percent of all new and existing homes sold were affordable to families earning the area's median income of $63,100. In descending order, other small markets at the lowest end of the affordability scale included Santa Cruz-Watsonville; San Luis Obispo-Paso Robles-Arroyo Grande; Napa; and San Rafael. Source: World Property Journal Back to Index

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With over 30 years of Middle East experience, VALUATION & ADVISORY Asteco’s Valuation & Advisory Services Our professional advisory services are conducted by suitably qualified personnel all of whom have had Team brings together a group of the Gulf’s leading extensive real estate experience within the Middle East real estate experts. and internationally.

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

• Consultancy and Advisory Services

John Allen BSc MRICS • Market Research • Valuation Services Director, Valuation & Advisory

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

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

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

SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit owners.