News Brief 39

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NEWS BRIEF 39

SUNDAY, 30 SEPTEMBER 2018

RESEARCH DEPARTMENT

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR OVER 30 YEARS © Asteco Property Management, 2018 asteco.com

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REAL ESTATE NEWS

UAE / GCC BUYING IN THE UAE WILL ALWAYS BEAT RENTING DUE TO LONG-TERM CAPITAL GAIN ALABBAR CALLS FOR 51% LOCAL OWNERSHIP OF UAE E-COMMERCE-RELATED BUSINESSES TOMORROW 2021 IS A BOON FOR INTERNATIONAL INVESTOR CONFIDENCE IN THE UAE WYNDHAM HOTELS PLANS 30% PORTFOLIO GROWTH IN THE MIDDLE EAST 58% OF UAE RESIDENTS PLAN TO INVEST IN PROPERTY IN THE NEXT 12 MONTHS MINISTRY EXTENDS TENDER DEADLINE FOR KUWAIT INTERNATIONAL AIRPORT SAUDI ARABIA LAUNCHES NEW TOURIST VISA FOR INAUGURAL FORMULA E RACE TYPES OF MORTGAGE LOANS AVAILABLE IN THE UAE FOREIGN INVESTMENTS IN BAHRAIN ON THE RISE 10 FACTS TO KEEP IN MIND WHILE BUYING YOUR PROPERTY GCC DOLLAR PEG TO STAY DESPITE TRADE WAR RISK ASTECO SAYS RENT-TO-OWN SCHEMES UNDERPIN 'CAUTIOUS OPTIMISM' ENOC OPENS FIVE NEW SOLAR POWERED STATIONS MAKKAH TO MEDINA IN 90 MINUTES: SAUDI KING LAUNCHES NEW HARAMAIN RAIL SERVICE WHY DUBAI DEVELOPERS NEED TO PICK UP THEIR PACE ON PROJECTS CALLS FOR LOWER LOAN-TO-VALUE RATIOS TO SPUR REALTY IN THE UAE QATAR MOST AT RISK GLOBALLY FROM RATINGS DOWNGRADE, SAYS S&P SAUDI ARABIA COURTS UBER-LUX TRAVELLERS WITH RED SEA PROJECT MANAMA HOTELS REPORT BEST AUGUST OCCUPANCY FOR A DECADE US OPERATOR REVEALS PLAN TO OPEN MORE SAUDI HOTELS

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REAL ESTATE NEWS

DUBAI UNION PROPERTIES 'NOT CONSIDERING ANY MERGER' 'WE WANT TO BE NUMBER ONE' - AZIZI DEVELOPMENTS' MIRWAIS AZIZI ON THE STORY BEHIND DUBAI'S FASTEST-GROWING DEVELOPER UNITS AT WASL GATE GO ON SALE OCTOBER 8 TOWN HOUSE VS VILLA DISTRICT 13 TO BE DUBAI’S SPARKLE AND SHINE DESTINATION THE LURE OF AL WASL NAKHEEL PLANS SUKUK SALE AND MALL FINANCING TOP 10 DUBAI COMMUNITIES WHICH OFFER HIGHEST RENTAL YIELD TOURISTS SPEND MORE IN DUBAI THAN ANY OTHER CITY IN THE WORLD NAKHEEL SIGNS DEAL TO BUILD RESIDENTIAL TWIN TOWERS AT DUBAI'S DRAGON CITY LULU AND WATERFRONT MARKET TO BUILD HYPERMARKET IN DUBAI'S DEIRA DUBAI'S MUSEUM OF THE FUTURE ON TRACK FOR 2019 DELIVERY DUBAI RETAINS RANKING AS WORLD'S FOURTH MOST VISITED CITY RADISSON RED HOTEL LAUNCH IN DUBAI DELAYED TO MID-2019 JOINT VENTURES CAN BE A WIN-WIN IN DUBAI’S REAL ESTATE OPPORTUNITY RIPE FOR DUBAI TO ATTRACT MORE CHINESE WEALTH DUBAI HOMES 22% CHEAPER THAN MARKET PEAK IN 2014 DUBAI'S DEYAAR SET TO LAUNCH NEW BELLA ROSE PROJECT REVEALED: CASH STILL A KEY PLAYER IN DUBAI PROPERTY DEALS DUBAI DEVELOPER OFFERS BUYER OPTIONS FOR ANY JOB LOSS OPPORTUNITY RIPE FOR DUBAI TO ATTRACT MORE CHINESE WEALTH NOW START BUSINESS REMOTELY IN DUBAI HIGH-END DUBAI COMMUNITIES ARE TRENDING, ACCORDING TO DUBIZZLE UNION PROPERTIES COMPLETES HANDOVER OF NEW DUBAI PROJECT

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REAL ESTATE NEWS

AVERAGE DUBAI PROPERTY PRICES SAID TO DROP 3% IN Q3 DUBAI'S SWAROVSKI-INSPIRED TOWERS NEAR COMPLETION DEVELOPER SAYS $109M HOMES SOLD IN MAG EYE PROJECT IN DUBAI DUBAI PROPERTY PRICES, RENTS CONTINUE TO FALL IN Q3 JUST CAVALLI - LUXURY VILLAS FROM DAMAC DUBAI'S DEYAAR HIRES CONTRACTOR FOR NEW BELLA ROSE PROJECT DUBAI'S DEYAAR REVEALS PROGRESS WITH MIDTOWN CONSTRUCTION, SALES SMART POLICE STATION PLANNED FOR FLAGSHIP NEW DUBAI PROJECT REVEALED: STEPHEN HAWKING-INSPIRED DESIGN FOR UK PAVILION AT EXPO 2020 DUBAI REVEALED: WHICH DUBAI HOTEL BRAND DOMINATES TRIPADVISOR RANKINGS NAKHEEL UNVEILS THE UAE'S FIRST FLOATING SWIMMING POOL NAKHEEL LAUNCHES FIRST RESIDENTIAL PROJECT IN DRAGON CITY IS IT THE BEST TIME TO BUY LUXURY PROPERTIES IN DUBAI? WHY DUBAI PROPERTY BELOW DH1.5M IS A STABLE INVESTMENT

ABU DHABI ABU DHABI'S KIZAD LAUNCHES NEW FREE ZONE WAREHOUSES, INDUSTRIAL UNITS PROPERTY GIANT ALDAR BUYS REMAINING 40% STAKE IN UAE'S KHIDMAH MIRAL INVITES PRIVATE SECTOR DEVELOPERS TO INVEST IN PROJECTS ON YAS ISLAND

NORTHERN EMIRATES SHARJAH TO BECOME 'CHINA-READY' DESTINATION, SAYS TOP OFFICIAL SHARJAH, ASEAN SEEK TO BOOST TIES IN NON-OIL SECTORS ARADA AWARDS FIRST INFRA CONTRACT FOR SHARJAH'S $6.8BN MEGA PROJECT

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REAL ESTATE NEWS

NEW LUXURY GARDEN COMMUNITY UNVEILED IN SHARJAH MEGA PROJECT SHARJAH RULER ISSUES DECREE TO SET UP NEW NATURE RESERVE 165 ABANDONED HOUSES DEMOLISHED IN UMM AL QUWAIN

INTERNATIONAL OPEC, ALLIES RULE OUT URGENT HIKE IN OIL OUTPUT HONG KONG MOST AT RISK OF A PROPERTY BUBBLE, SAYS UBS NRIS, YOU CAN EARN UP TO 35% RETURNS ON REALTY IN CERTAIN AREAS IN INDIA

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BUYING IN THE UAE WILL ALWAYS BEAT RENTING DUE TO LONG-TERM CAPITAL GAIN Sunday, September 23, 2018 The intriguing new Rent vs Buy Calculator created by the real estate platform Propertyfinder caught my eye earlier this month. It compares the total cost of renting with the total cost of buying in the UAE. Its conclusion is that the monthly cost of buying is presently cheaper than renting. However useful this calculation is in planning your annual personal budgeting, it does rather miss another very decisive reason for owning rather than renting a home - provided you are looking at a long-term horizon and not merely passing through the UAE for a year or two. A mortgaged-home, bought at the right time, is by far the best financial investment anybody can make. Over time all global central banks allow the value of their currencies to depreciate to pay their national debt off in a relatively painless way. This effectively steals from savers whose money falls in value. But if you own a home it works the other way around. Depreciating currencies also mean asset price inflation is guaranteed over the long-term. So a fixed asset like a house will rise in value, while the fixed amount of the mortgage used to buy it in the first place will remain unchanged. The gap between the two amounts will be a growing capital gain for the owners. If, by contrast, you stay renting the same property over this period, you will have paid a similar, or perhaps higher amount according to the new calculator, but you will have precisely no capital gain. Home owners effectively win a big cash draw, with a free home for life when the mortgage is finally paid off, while renters can only count the fabulous sum that they have lost, just to live comfortably. Buyers effectively get their ‘rent’ back with interest. Earlier this year I wrote of a visit to Thailand and lunch with a couple of retiree expat friends who each made a million on their homes in The Meadows, Dubai. They were early buyers in 2003 and sold about a decade or so later. Of course, the current generation of buyers may not be so lucky - but, remember, those two millionaire expat pensioners had both been owners through the global financial crash and the Dubai real estate bust that came with it. They just carried on paying their mortgage and waited for prices to recover. As observed earlier, house prices always rise over the long-term because the central banks have to devalue money to balance their books. Along with many analysts, I reckon we are currently at, or very close to, the bottom of the price correction that began four years ago with a doubling of transaction fees, tighter mortgage lending criteria and an unfortunately timed oil price collapse.

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Brent crude topped $80 a barrel while I was penning this article. The UAE as the trading hub of the oil-rich Middle East as well as a substantial low-cost producer is obviously going to benefit, and optimism among local businesses is turning up. How long before the recruiters are busy again and new staff require accommodation? Those 15,000 new units delivered in Dubai in the first eight months of this year won’t go that far. Demand will exceed supply and house prices will begin the bullish phase of the typical three-to-four year property up-cycle. It is always a good idea to be in at the start, or even slightly ahead of this cycle, if you want to maximize your capital gains. That said you should never get too strung out about house prices when you own a house. Given that you are usually buying with a five to f15-year time frame, expect fluctuations in value along the way. The best objection to this investment plan is that you do presently require a hefty 25 per cent deposit to get a mortgage to buy a home in the UAE. Not everybody has Dh500,000 lying around to buy a Dh2 million villa. But if you are ever going to beg or borrow from your relatives, this is time to do it. As a young journalist I slept on a friend’s couch for two years to save up, got a mortgage saving scheme and did some extra freelance work. People then told me UK housing was far too expensive. Actually it initially went though a boom-and-bust cycle and I was no better off seven years down the line. But 32 years after I first bought that apartment, it would now be worth 28 times my deposit. Some home owners naturally worry about what happens if they lose their job. The answer is find another one; if you really can’t or it does not provide sufficient income for the mortgage, then rent the house out. My original decision to move to Dubai came because I was made redundant in London; I then rented out my house to pay the mortgage while I was in the UAE. Remember, even if you get fired the bank cannot call your mortgage in early unless you start missing payments. Owning a house might be an additional headache if you lose your job but it does not have to be a financial disaster. It could become a source of additional income if the rent exceeds your mortgage payments, or the source of the deposit on a second property. My only real quibble with the calculator is that it excludes maintenance, and this can be a significant cost factor to ownership. In the UAE particularly, the maintenance of air-conditioning in villas can be onerous, making apartments arguably a better buy. But don’t miss the wood for the trees when thinking about buying or renting UAE property. There is solid oak in the capital accumulation that comes with long-term ownership of mortgaged property, and money spent on rents just goes up in smoke. Peter Cooper has been writing about finance in the Gulf for more than two decades. Source: The National Back to Index

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UNION PROPERTIES 'NOT CONSIDERING ANY MERGER' Monday, September 24, 2018 Union Properties has issued a statement denying any plans to merge with another developer in Dubai. Union Properties has issued a statement denying any plans to merge with another developer in Dubai. In a statement today, Union Properties today referred to speculation “circulating in the media” saying that it is “not considering any merger.” Union Properties added that any possible merger plans would be revealed in accordance with laws and regulations. "In the event that such merger exist, the company’s management will follow the procedures prescribed by the laws, regulations and the disclosure and transparency rules,” the company said. While Union Properties didn't name the other Dubai developer in its statement, Arabic television named Deyaar as the other firm. “We can’t say for certain if the conversation is accurate, but this is what investors are saying,” Mary Salim, head of financial markets at FFA Private Bank Dubai, told Al Arabiyya TV in an interview yesterday. A Union Properties and Deyaar merger was all but certain in 2009, when the fallout from the financial crisis led to the deal being scuppered. “Union Properties has more projects in the pipeline so it’s possible they would be happy to increase their portfolio,” said Salim when asked about which company could stand to benefit most from a possible deal. “However both companies haven’t said much about the rumours yet so no one knows if it would be a 50-50 split or not,” she said. Source: Arabian Business Back to Index

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'WE WANT TO BE NUMBER ONE' - AZIZI DEVELOPMENTS' MIRWAIS AZIZI ON THE STORY BEHIND DUBAI'S FASTEST-GROWING DEVELOPER Sunday, September 23, 2018 “There was war. Every day people would die,” Mirwais Azizi says calmly of a youth that was anything but peaceful in Afghanistan, a country reeling from its ten-year war with the Soviet Union. “My focus was to leave and get enough money for my family to join me.” How the chairman of Azizi Properties not only got out, but subsequently amassed a fortune across multiple businesses and countries, could be the subject of a novel or screenplay. It’s a story that weaves through the shattered former Soviet satellite states following the collapse of communism, and both the Russian and American invasions of his home country. The journey led him to Dubai and, eventually, a property company that today has $1.7bn of contracts awarded, 52,000 launched units and 2.2 million sq m under construction. To understand how he built this empire – and where the money came from to do it so quickly – it is necessary to go right back to beginning. And sitting in a modest, majilis-style meeting area at his head offices on Sheikh Zayed Road in Dubai, a cup of Afghan tea to his right and a mobile phone that repeatedly buzzes with messages on the sofa beside him, Azizi says he is happy to answer any question – and there are certainly many to ask. And so it begins. Exit Afghanistan Mirwais Azizi was comparatively lucky. Being from an educated family – he was the top pupil in his school and went on to practise law – he was able to leave Kabul in 1988 for Uzbekistan. His plan was to seek out an Afghan friend there who could help him further his goal of a new life. “The trouble was I only had $700,” he says, picking up the story. “The idea was to visit my friend, who was in the textiles business, borrow $5,000 and then take my family to Europe.” But after several days of his friend explaining everything he knew about the textiles trade the plan changed. “He told me: ‘Lending you $5,000 is not the issue – I could give you $50,000 – but I want to help you start a business.’ So he gave me two containers of textiles worth $25,000 and told me to sell the contents over the next three months and return his money. "I realised that I would make $8-10,000 profit if I did that. But then the next day I sold them both for $2,000 profit and gave him his money back straight away. He was shocked but also happy that I repaid his trust. After that he gave me another ten containers,” he says.

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Azizi recounts how over the next six months he made $1m. He hired a Russian driver and an Afghan accountant, making a deal with the latter that they would leave for Europe with their families once they’d made $5m, which they estimated would take two years. “But this was just after the end of communism when there was a big deficit for everything and it was easy to make money. It only took me five months to make the $5m and when my accountant said, ‘Now let’s go’, I told him: ‘I’m not going anywhere’. He stayed with me for another two or three years and I gave him $1m when he finally left.” When asked for the secret to this astonishing success Azizi offers a modest reply. “There’s no secret. My textiles friend was importing 100 or 150 containers every week from Korea and each garment that cost $1 to buy would sell for $5 or $6. I quickly gained customers who would purchase $100,000, $150,000 of stock from me every week for a good price. So I just came to understand how business works.” Hungry for further opportunities, Azizi turned his attention to Bulgaria, securing the rights to be the first importer of cigarettes into the post-Soviet state. He soon became the official dealer for the nascent Russian Commonwealth countries and built a network of offices in more than 20 countries. It was this business that first led him to the UAE in 1994, after locating a Sharjah-based supplier of two cigarette brands that he thought would be popular in Uzbekistan. Azizi agreed to purchase two containers for $150,000 and had them shipped to Tashkent. “Then I got a call from someone who saw them in customs and offered to buy them directly for $300,000. So I ordered 50 more containers.” This buoyant trade led to an invite to visit the UAE from the cigarette distributor. Azizi was taken all over the emirates to meet various businessmen and at the end of the trip they suggested he make the UAE his home base for himself and his family. Impressed with the lifestyle, safety and ease of doing business, he readily accepted. “And from here I controlled my operations. I had the cigarette business until 1998. After that I moved into petroleum, purchasing crude oil, having it refined and then shipped to many countries,” he says. Returning home In 2002 he travelled to Afghanistan for the first time in 14 years, and found a country wracked by thirty years of conflict. “I’d helped a lot of relatives and school friends – about 300 people – with money every month over the years. They all came to see me but when I sat with them I felt something different between us. And I kept thinking: did I change or did the people change? After a while I realised that they had seen so much blood and death and there was a physiological problem. So how could I help?” Azizi began by building petrol stations and fuel storage facilities, which he says created 5,000 jobs in a matter of months. Then he built the American University of Afghanistan in Kabul, the first non-profit higher education institution in Afghanistan. Next he established the Azizi Foundation to help underprivileged families, an initiative that included sponsored education placements for students to his university. And in 2006 he spotted another opportunity. “There was no private banking sector so I started one,” he says of Azizi Bank, which opened with 22, mainly foreign, employees due to a skills shortage. “I then built a training centre that has trained 10,000 students, 4,000 of whom are now employees at Azizi Bank and Islamic Bank of Afghanistan (which he purchased from the Central Bank of Afghanistan).”

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In 2006, he also moved into construction with Azizi Union Construction Company (AUCC), which, according to its website, “serves a broad spectrum of organisations and businesses, government, NGO and military sectors.”

And this led to the business in Dubai for which he is now best known. Making a statement “I had been living here for many years and was thankful for the safety in Dubai and excellence of the education for my children,” says Azizi of why he embarked on a mission to build a property empire in the UAE. “All the money from my businesses would come here and I never had to worry about it being stored here. So I felt that Dubai had given me a lot. What could I make that was nice for the city?” He purchased his first plot of land in 2007 and launched the first development at Cityscape in October 2008. “We sold over AED1bn of properties. The customers paid 10 percent so we had AED100m in deposits. But then one month later there was the financial crisis and I chose not to start construction. By the first quarter of 2009 I had given every deposit back, in full, except for one customer who we could not contact.” Asked where he got the money to repay the deposits he replies: “My other businesses were doing well. I hadn’t started to build so I only lost my design costs and marketing spend. In business you cannot make money every time.” In 2013 Azizi decided the time was right to start again, first on the plot he’d purchased in 2007 and then in a splurge of other projects as the property market regained pace. Today Azizi Developments has a pipeline of projects worth $12bn and more than 200 ongoing projects across Dubai. The portfolio includes plans for the world’s fifth-tallest skyscraper, located on Sheikh Zayed Road which will be ready by late 2021 or early 2022. “The design has been completed by one firm and is being reviewed by Atkins,” he says of its status. Azizi Developments strives to promote world-class sports locally and internationally Last year it handed over 13 projects and seven more are set for delivery from Q4 2018 onwards, adding 2,268 units across various Dubai locations to its growing portfolio. The list includes Azizi Mina, its second development on Palm Jumeirah, and Azizi Aliyah Residence, the developer’s first project at Dubai Healthcare City. Azizi Developments also recently announced an important milestone at Azizi Riviera, valued at about $3.2bn, after it passed the 20 percent completion mark. The Meydan development will eventually house over 15,000 apartments and feature an integrated retail complex that has a mix of high-street shops and leisure and entertainment amenities. Plans to build a marina on the canal are also in the pipeline. “We want a nice environment for people to live and work. The apartments are low-rise and it’s close to Meydan Mall. We are also building a four or five star hotel. The design is very good, the materials are very good. Everything is top quality,” Azizi says proudly of the flagship project. Funding the boom There are two obvious questions to ask any developer who embarks on a development spree of such scale. The first is perhaps most pertinent to those unaware of Azizi’s history in business: where did the money come from to build such a large supply of stock? He replies that Azizi invests in a project using “historic and current unit sales”. Dubai Land Department (DLD) rules state that developers must have 100 percent ownership of the land and must complete 20 percent of construction before they can use offplan sales money stored in the escrow account.

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“But I always have three options so that construction never has to stop. Once construction has reached 20 percent, funds are released from the escrow account. If further finance is required in order to keep the construction running to schedule we may use bank finance, though this is rare. And following that, and if necessary, we will inject our own money to ensure timely completion of projects. But until now I have rarely needed the second two options.” The second big question is whether he is worried about oversupply. Once again Azizi seems untroubled by the notion, noting the continued strength of offplan sales which he says remain buoyant and are currently rising again after a brief lull during August. More generally he points to the many hundreds of cranes dotted around the city as proof of confidence in the market. “Sure, there are businessmen who make mistakes, there are good and bad projects. But people are still purchasing. Dubai is a strategic and prestigious place where people with money want to own a house," he says. "For example, all the rich people in India have a business and family here. And then the Arabs come for shopping and investments – I see many Saudi customers. And the Chinese are starting to arrive, so this keeps the market going.” When asked about his confidence in the economy more generally he responds: “There is a very simple answer. This is a city without metal, copper, crude oil, or even drinking water. But it has prospered because we have the best leadership in the world who have built beautiful things in the desert. You can find anything you need close to where you live. This is very attractive to many people.” Asked whether the real estate sector has any reputational issues due to unfinished projects not being satisfactorily cleared up after the 2008 crash, he says: “The government learned a lot from the 2008 crisis and we now have very good regulations from the Land Department. Whereas a developer could previously pay 10 percent of land costs and then open an escrow account, they must now own 100 percent of the land. And in addition to the 20 percent escrow project value, they must continuously verify ownership of a project, benefiting all parties involved. If the project fails then it is easy to manage.” As the conversation is taking place almost ten years to the week since Lehman Brothers collapsed, it feels appropriate to ask what would happen here if a comparable event were to happen again. “If something bad happens in America it is damaging everywhere. And in Dubai it is also the case, but we have customers from so many other countries so it is not so bad,” he replies. When asked what does keep him awake at night, Azizi says he frets about more immediate events that are under his control. “I always want to build and handover to the people. That is my biggest concern.” Future of Azizi Azizi’s current pipeline runs through to 2024. While no further projects have been announced, Azizi reveals that the company is set to build and manage its own, as yet unnamed, hotel and hospitality chain that it will roll out to other countries. Asked whether Azizi will go to the market for debt to finance this or any other ventures, he says there are no plans. “Now is okay. If I feel I need it I will organise one year before, not at the last moment.” He also reveals that an IPO for the hospitality and development businesses is being discussed. “We are waiting for the audit report at the end of the year. When this is finished we will see whether to apply.” His ultimate aim, he admits, is to be “the number one private developer and not just here but everywhere. I want to build a unique tower or building in every major city; something to make people happy.” And he says he will “always support Afghanistan in business and education. It is where I was born.”

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Clearly he shows no signs of taking a backseat. In fact, we are told his son, Farhad Azizi is still CEO – a post he has held since 2013 – though he is no longer listed as such on the company website as he is currently managing Azizi interests overseas. Another son, Fawad Azizi remains as deputy CEO. Clearly, Mirwais Azizi will be busy steering the ship for some time to come. But before he resumes his day, there is just enough time to ask again what he thinks has been the key to his success over the decades. Azizi thinks for a moment and then replies: “Before I start a business I study it, I think about it. I take an idea and develop it before I begin. And then it is important to have the right team to follow up on the idea to build it. You must have trust in business and in normal life. This makes you successful. You need trust and you build it by the work that you do.” The same kind of trust that the Afghan textiles trader in Uzbekistan showed to him so many years before? Mirwais Azizi smiles. “Yes, like this.” Dubai to get 2,270 new Azizi homes in Q4 2018 Azizi Developments this month said it would deliver seven projects from Q4 2018 onwards, adding 2,268 units across various Dubai locations to its growing portfolio. These planned handovers include units in Shaista Azizi, Samia Azizi, Azizi Star, Farishta Azizi, and Azizi Plaza in Al Furjan. The development brings the total number of projects by the developer in Al Furjan to 17. Azizi Mina will be Azizi’s second development on Palm Jumeirah, housing 174 residential apartments and four penthouses. Azizi Aliyah Residence will be the developer’s first project at Dubai Healthcare City, offering a total of 346 residences. Azizi Developments reaffirms support for Shabab Al Ahli Dubai Football Club for the second year Azizi Developments has created a strategic partnership with Shabab Al Ahli Dubai Football Club for the 2018/ 2019 season in the hope of steering the club towards a repeat of their 2015/16 title. This is the second year that Azizi has sponsored the club, which he considers part of giving back to the community that has provided him so many opportunities. It’s not just football. As part of its partnership with Meydan, Azizi is committed to the growth of equestrian sports in the region by sponsoring the Sheikh Mohammed Bin Rashid Al Maktoum UK Endurance Festival. Source: Arabian Business Back to Index

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ALABBAR CALLS FOR 51% LOCAL OWNERSHIP OF UAE E-COMMERCE- RELATED BUSINESSES Monday, September 24, 2018 Mohamed Alabbar, the chairman of Emaar Properties and founder of e-retailer Noon.com, has called for new legislation that imposes 51% local ownership of e-commerce related businesses ranging from payment service firms to logistics companies, in order to protect the national economy from global giants such as Amazon. The Emirati billionaire told Al Khaleej Arabic newspaper that the UAE should follow in China’s footsteps in protecting its national economy by retaining ownership. “China, for example, has taken many measures to ensure that its economy is protected from foreign interference, such as enforcing regulations that ensure that Chinese companies or individuals have at least 51% ownership of e-commerce websites’ payment systems,” he said. "It has also forced foreign companies to establish local information centers. China was able to protect its economy and national and social security." He added that foreign companies pose a danger to the UAE’s national economy. “I know that government officials feel the danger of such foreign companies to the local economy, which requires the issuance of laws on the protection of the national economy, especially from global e-commerce companies. I can summarise in four laws: The first must be investors’ possession of at least 51% of e-commerce companies. “Second, the ownership of local companies or individuals in the logistics companies should not be less than 51%; thirdly, owning the 51% share in the financial transactions and payment systems for e-commerce; and fourthly, obligating the international companies to keep the information in designated centres within the country… Otherwise all sensitive information at the levels economic, financial and social will be in the hands of foreign competitors,” he said. Alabbar referred to global players such as Amazon as a “threat” to the local market. “Companies [such as Noon.com] represent national pride, and encourage competition and economic growth on a national level, in a region that is largely dependent on oil. Companies [such as Amazon] are a threat to our markets because they come to control the rules and implement their own guidelines…,” he said. The chairman vowed never to sell Noon.com to a foreign company, no matter how high the buying price. Its competitor, Dubai-based Souq.com, was acquired by the US giant in July last year for $580 million. “I would never sell my shares in Noon.com, no matter how much [foreign e-commerce giants] offer me. I would never partner with any foreign e-commerce giant; not now, not ever. My goal is to protect the national economy from foreign companies,” he said. Moreover, Alabbar claimed that the e-commerce website, which is based in Riyadh, was established to protect the UAE’s economy from “foreign danger.”

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“Local laws have enabled a company such as Emaar to grow, prosper and reach a level where it could compete with international companies. However, e-commerce is a vital area for investors and entrepreneurs to enter into… and to defend the national economy against external risks. "As a local investor, and especially for someone like me who has benefited from the wealth of this generous country, we have to protect the national economy against any external dangers. From this point of view, Noon was established to protect the economy from foreign danger,” he said. Source: Arabian Business Back to Index

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SHARJAH TO BECOME 'CHINA-READY' DESTINATION, SAYS TOP OFFICIAL Sunday, September 23, 2018 Sharjah registered double-digit growth of Chinese visitors and in one year, we even recorded 120 percent growth. Sharjah is working to transform itself into a ‘China-ready” destination in a bid to woo more Chinese tourists, according to Khalid Jasim Al Midfa, the chairman of the Sharjah Commerce and Tourism Development Authority (SCTDA). Speaking to China’s Xinhua news agency, Al Midfa noted that over the last several years “Sharjah registered double-digit growth of Chinese visitors and in one year, we even recorded 120 percent growth.” “Our emirate is a magnet for Chinese tourists as China has a rich culture and history itself, and we provide a cultural journey to discover Arab and Emirati history and hospitality,” he added. Since 2015, Sharjah’s low cost carrier Air Arabia has operated direct flights from Sharjah to Urumqi, the capital of China’s Xinjiang Uygur Autonomous Region. Al Midfa added that Air Arabia will launch new destinations in China soon, as well as a collaboration between Air Arabia and an unnamed Chinese airline. Source: Arabian Business Back to Index

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UNIT S AT WASL GATE GO ON SALE OCTOBER 8 Sunday, September 23, 2018 Units at two of the buildings comprising “wasl gate” will go on sale on Monday, October 8. The wider development will feature 257 town houses and about 6,500 apartments in the Jebel Ali area and off Shaikh Zayed Road. It will also feature the Festival Plaza, by the Al-Futtaim Group, which is scheduled for completion in the fourth quarter of 2019. “wasl gate is designed to provide a wide array of offerings for Dubai residents, while striving to develop and expand our real estate portfolio,” said Hesham Al Qassim, CEO of wasl Asset Management Group. Source: Gulf News Back to Index

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TOWN HOUSE VS VILLA Sunday, September 23, 2018 The frenzied activity of major developers such as Nakheel, Dubai Properties Group, Emaar, Damac, Binghatti and Azizi across Dubai in preparation for 2020 has positively influenced the supply of good-quality villas and town houses at affordable prices and in good locations, leaving investors, buyers and renters spoilt for choice. In the matter of villa vs town house, a town house emphasises the terraced portion found within compact affordable complexes with shared amenities. A villa is more focused on compounds, which are less crowded and possibly of better design, and a more luxurious interior constructed upon a larger plot with landscaped gardens, communal amenities and a better view. Choosing between a town house and a villa depends on a number of personal considerations, including but not limited to budget, lifestyle, the occupant’s objective, family size, and an investor’s expected return on investment (ROI). Location, affordability Town houses are usually identified as more affordable than villas. Depending on one’s preferences, choices could range from a prime location such as the Lakes, a developing area supporting affordable homes such as Al Furjan, the outer ring of Dubai offering communities such as Mira and Mudon on Al Qudra Road, or in more desirable precincts such as Arabian Ranches. Prices As per research by ValuStrat, we find that the range for a three-bedroom villa within The Lakes is from Dh3.3 million-Dh3.7 million, as opposed to a three-bedroom town house in The Lakes at Dh2.2 million-Dh2.7 million. A three-bedroom villa in Al Furjan will be in the range of Dh3.2 million-Dh3.5 million, while a three-bedroom town house in Al Furjan will achieve Dh1.9 million-Dh2.4 million. A three-bedroom villa in Mudon is capable of selling in the range of Dh3.4 million-Dh3.9 million, while a three-bedroom town house in nearby Mira sells at around Dh1.9 million-Dh2.4 million. A three-bedroom villa in Saheel in Arabian Ranches is currently achieving Dh2.9 million-Dh3.3 million, while a three-bedroom town house in the Al Reem community of Arabian Ranches realises Dh1.8 million-Dh2.4 million. To meet the growing needs of a family with children or those living with extended family and pets, the requirement is usually for a larger plot — preferably a villa close to parks, pools, schools, medical facilities and with the added possibility of social connection with similar family units. In this regard living in a villa community may be preferred. Lifestyle A young professional couple may want to be close to a health, spa and fitness centre, gyms, restaurants and coffee shops. They may also want themed lifestyle developments offering leisure facilities such as golf courses and club houses for social interaction, and may also enjoy travelling for leisure or alternatively for work. They may also prefer a “lock up and go” lifestyle and elect the town house option. Bachelors and single women professionals often opt for prestigious and strategically located apartments on locations such as the Dubai Marina, which offers beach and marina access and activities such as cycling, volley ball, kayaking, or Downtown Dubai, which features international retail offering, malls, restaurants and the convenience of easy access to public transport.

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View and noise

For most villa and town house occupants a view is one of the selected criteria, albeit over water, canal, swimming pool, park or landscaped gardens, as opposed to construction in progress on a neighbouring site, a blocked view or looking directly onto the neighbour’s property. It is found that in most affordable compact town houses the view is generally that of the community. An attached or terraced town house offers very little insulation when it comes to rowdy neighbours, while a villa offers a lot more distance and privacy especially for outdoor living. Parking Parking in town houses is usually very limited within a confined space with not much provision for additional parking for visitors, while villas may provide additional on-street parking. Maintenance The maintenance cost of a town house is usually less than a larger villa in that the built-up area is smaller, with insurance premiums, service charges and garden maintenance being more affordable. The cost to refurbish, fit-out, decorate or furnish a smaller town house is also more manageable than a larger villa. Practicalities Finding the perfect residential community that combines work, home, leisure and play is inextricably linked to transport and ease of access to schools, work, home and leisure facilities. Travelling time, traffic congestion, access to public transportation are all part of the decision-making process and will be one of the deciding factors in the selection of a villa or a town house. Cheryl McAdam is director of residential real estate at ValuStrat. The views expressed here are her own. Source: Gulf News Back to Index

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DISTRICT 13 TO BE DUBAI’S SPARKLE AND SHINE DESTINATION Sunday, September 23, 2018 The focal point of Dubai’s gold and jewellery business — the Deira Gold Souq — is inching closer to a makeover. A shiny new extension called “District 13” will be formally launched next month, according to gold industry sources. This is taking shape on a stretch of land between the existing Gold Souq and the Creek. Being developed by Ithra Dubai, District 13 itself forms part of an ambitious redevelopment programme — that of Deira, currently featuring a resident base of an estimated 400,000 and contributes 10 per cent of Dubai’s GDP. But it is District 13 — covering more than 255,000 square feet — that has the gold trade in Dubai all excited at the moment. “A stand-alone extension for the Gold Souq will alter many of the trends the industry had been witness to,” said Cyriac Varghese, General Manager at Sky Jewellery. “In the last five years, Dubai’s gold retail had been focused on opening stores in the city’s newly developed areas and even within hypermarkets. “It was because there was little new retail space being added at the Gold Souq, and parking was becoming an issue. This meant families were less likely to come to shop at the Gold Souq. “What the new extension does is bring the focus of Dubai’s gold trade back to its centre.” Apart from the new shops, District 13 will create more than 8,000 parking spaces and even residential and office space. And unlike the leasing traditions in the Gold Souq, District 13 shops will not require “key money” from its tenants. According to Anil Dhanak, Chairman of Kanz Jewels, “There is a lot of the “old way” of doing things at the Gold Souq — the new Extension takes everything into the present. In terms of significance for the gold trade, I would say it would be similar to what The Dubai Mall did for the mall business back in 2009. “Because of this, no retailer would want to miss out on securing a place in the Extension. It doesn’t matter whether the retailer has multiple stores at Gold Souq … he will still need to be in the Extension. It will take at least two years for the gold market to absorb the changes brought on by the Extension. ” What District 13 does is jazz up the business of gold retail on that side of the city, and where the bricks were first laid for Dubai to emerge as the “City of Gold”. But because of the way it was built up, the Gold Souq eventually became too densely packed with shopping options and little of else. District 13 will change all of that. F&B options have been given due prominence, while there will also be dedicated areas for a bit of rooftop dining. Enough space will be brought in between the buildings, and where such connectivity is needed, there will be bridges too between the buildings. Construction had been on at the site since late last year, and as things stand now, District 13 will be open to the public by October next year. “Anything that is new will create a lot of buzz in Dubai — if that brings in more tourist and resident buyers back into the Gold Souq and its extension, then all the better,” said Dhanak. Starting December, retailers are to submit their expressions of interest for locations at the Extension. “The absence of key money in itself is going to be a major incentive,” said Dhanak. “Though they have dropped now,

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key money in the Gold Souq had touched Dh5 million and more.” (Key money was a constant feature of leasing deals, whereby the potential tenant on paying a certain amount secures that location.

It is over and above all other financial arrangements between the parties. And key money values can vary depending on a host of factors.) Dhanak believes rents would be decided on the store’s turnover basis, which is how it is done at all of the major malls and shopping centres. There would be 170 plus outlets and 109,000 square feet plus of net leasable area. According to Chirag Vora of Bafleh, “There will definitely be a visible change in the way business is conducted at the Gold Souq. We are not yet clear how the lease rates will be effected … but they will allow a more competitive market that can challenge the world’s biggest jewellery hubs.” For the “City of Gold”, that will be a goal worth pursuing. And District 13 can make those opportunities happen. For Deira, the times are changing ▪ On-land and off, the Deira landscape — which makes up about 1 per cent of the city’s land mass — is transforming. Owned by Investment Corporation of Dubai, Ithra Dubai is overseeing the “Deira Enrichment Project,” which includes the making of District 13 as an extension to the Gold Souq. ▪ Off the Deira shoreline, Nakheel is making headway with the Deira Islands, covering an expanse of 15.3 square kilometres of reclaimed land. Must-see destinations of the future will include a mega-mall, a night souq, multiple hotels and resorts, and residential towers. ▪ Between Deira City Centre and Maktoum Bridge, an area is being developed for the “Jewel of the Creek” development, featuring hotels and serviced residences. Dubai International Real Estate is the developer and the site will eventually have a built-up of over 1 million square metres. Source: Gulf News Back to Index

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SHARJAH, ASEAN SEEK TO BOOST TIES IN NON-OIL SECTORS Saturday, September 22, 2018 Sharjah has welcomed the Asean community's growing interest in the emirate's diversified economy, which attracted $1.63 billion in foreign direct investments in 2017, recording a sizeable jump in growth compared to 2016. Investors, diplomats, expanding enterprises and private businesses representing Asean members were recently brought together on a networking platform, the Sharjah-Asean Business Roundtable, organised by the Sharjah FDI Office (Invest in Sharjah) in collaboration with the Asean Business Councils Alliance. Sharjah had a well-rounded participation represented by governmental and semi-governmental entities from several sectors, and included Khaled Al Huraimel, Group CEO, Bee'ah - Sharjah Environment Company; Ahmed Al Suwaidi, head of commercial investment, Sharjah Economic Development Department (Sedd); Ahmed Obaid Al- Tunaiji, director of standards department at the Sharjah Commerce & Tourism Development Authority; and the business development manager at Gulftainer, Emerson Buarque, who participated in a panel discussion titled, Investment Opportunities in Sharjah, to suggest ways to grow and expand Asean's business interests in the Middle East through Sharjah. Energy has been the most defining component of the economic engagement between Asean and the UAE, accounting for almost 33 per cent of Thailand's oil imports, for instance. The roundtable event was designed to focus on the plethora of non-energy trade and investment opportunities offered by Sharjah's economy, and shed light on ways Asean counterparts can tap further potential for cooperation in these sectors. Samuel Tan Chi Tse, Ambassador of Singapore in the UAE (chair of Asean), said: "Asean and Sharjah are very similar as they share a common interest in taking our business interests beyond borders. We've talked about creating mutually beneficial partnerships." Source: Gulf News Back to Index

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TOMORROW 2021 IS A BOON FOR INTERNATIONAL INVESTOR CONFIDENCE IN THE UAE Monday, September 24, 2018 The diverse international community of the UAE awoke just a few short weeks ago to yet more announcements from the country’s leadership about plans to further reform the economy. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, announced the Tomorrow 2021 plan including 50 initiatives to spur growth in areas such as investment, job creation and improving the overall quality of life in Abu Dhabi. At Deutsche Bank, we view Tomorrow 2021 as a potent catalyst for further growth and improved sustainability for the economy in Abu Dhabi and the wider UAE. Deutsche Bank expects economic growth in the UAE to accelerate to 2.7 per cent or better in late 2018 and to top 3 per cent in 2019 due to growth in private consumption and non-oil exports. We are optimistic that the market’s growth expectations next year will be met against a backdrop of improved crude oil markets and a more positive environment for foreign investments in the UAE driven in part by the recent reforms, and initiatives including Tomorrow 2021. International investors and partners to the UAE, including organisations like the IMF and World Bank, have long argued for these reforms to ensure the continued growth and prosperity of the UAE. For oil-producing Arabian Gulf economies, the move to re-calibrate their economies away from a reliance on oil is critical for future economic, and by extension social, prosperity. The UAE’s efforts in this regard, particularly over the last two years, are laudable. The four pillars upon which Tomorrow 2021 is built are: supporting and promoting business and investment in industry and renewable energy; creating suitable employment opportunities for Emiratis along with affordable education and housing; attracting and incubating technology; and the active pursuit of a knowledge-based economy and enhancing quality of life across the emirates. These are well-envisioned and form a sound basis for launching such a transformative program. The drive to enhance the ease of doing business, promote research and development, reduce costs to businesses across the board and support small and medium-sized enterprises is particularly important for Abu Dhabi to achieve its objective of becoming a global hub for entrepreneurship, innovation and technology. The UAE economy has over the years shown resilience due to its higher level of diversification, well-developed infrastructure, substantial fiscal buffers, political stability and its significant appeal when it comes to foreign investments. Programs such as Abu Dhabi Tomorrow 2021 will further enhance the economy’s growth prospects and diversification. We also applaud the program’s focus on education and equipping the country’s youth for a knowledge-based economy through high-quality education that is accessible to all segments of society. This is the key to building the human capital necessary and capable of sustaining the UAE’s prosperity and achieving its lofty goals.

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Measures to reduce operating costs (for example, utility rates for manufacturing facilities and other service fees) coupled with the announced Dh50 billion stimulus package are bound to improve business sentiment and boost consumption, investment and macro-economic growth. An important consideration for the foreign investor community is the strength of the local financial system, and here again the UAE performs well. The banking sector appears poised for another year of positive growth, which we see first-hand as our working capital advisory, trade finance and cash management teams are fully engaged in various client opportunities at the present time. In a region routinely beset by political uncertainty and widely seen as demanding a higher risk premium, the UAE’s unique political and federal governance structure is a strong and sustainable differentiator, achieving a high degree of effectiveness in the provision of services and infrastructure to the people of the UAE and its private businesses. The UAE’s rankings in the World Bank Ease of Doing Business Survey - Number one in the Middle East and North Africa and No 21 globally, ahead of many developed economies - attest to this. As a result of Tomorrow 2021 and the various reforms and initiatives being pursued by the UAE, including in residency and term visa affairs, we are confident the country will continue to lead the region when it comes to its attractiveness to foreign investors. And to the extent success is achieved in this pursuit, we expect the UAE’s ranking in competitiveness and ease of doing business to show further improvement. International investors have long considered the UAE as an innovative, forward-looking jurisdiction with a laser- focused eye on the future. Tomorrow 2021 is yet another example of this vision. The international investment community should take notice. Jamal Al Kishi is Deutsche Bank AG CEO Middle East & Africa and chief country officer UAE. Source: The National Back to Index

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THE LURE OF AL WASL Tuesday, September 25, 2018 The launch of the Dubai Water Canal and Box Park has marked the rebirth of Al Wasl Road as a hub of its own and a popular destination for residents. Running parallel to Jumeirah Beach Road and Shaikh Zayed Road, it offers easy access to old and new Dubai as well as numerous public and private beaches. Shereen Shabnam, a luxury lifestyle journalist who lives in City Walk, is among those who were drawn by the community’s great location and emerging vibrant urban lifestyle. “I used to live in Mirdif, but as a journalist attending press conferences all over the city I needed to be somewhere central with easy access to all parts of Dubai,” Shabnam, a Fijian expat who moved to the neighbourhood four years ago with her husband and daughter, tells Property Weekly. “I love the fact that I can walk to three different supermarkets, have access to so many restaurants, my bank, and I’m a spa junkie so having lots of choices within a five-minute radius helps.” Advantages For Hadil Moufti, a long-time resident of Jumeirah who moved to Umm Suqeim 1 a year ago, being close to the beach is the biggest draw of her new neighbourhood. “It’s a five-minute walk from the beach; that’s the most important thing for us. It’s also quite central,” Moufti tells Property Weekly. “Although I find Jumeirah more charming because it’s slightly older, it was a bit far from the newer parts of Dubai. Umm Suqeim is a great compromise — it’s quiet and residential, close to the beach but not too far from places like Dubai Marina and Palm Jumeirah.” The low-rise residences make Al Wasl less dense than other parts of Dubai On the flip side, her family of four finds it tricky to walk the dog due to the lack of pavements in the vicinity, and the few streetlights make it uncomfortably dark at night. “Jumeirah was a lot better in that regard,” says Moufti, who used to live in the UK. Still, she prefers Umm Suqeim when she found a better-maintained four-bedroom villa at a more competitive rent. Like most houses in this non-freehold area, Moufti’s villa is owned by a local landlord, which is a major advantage for tenants, according to Aida Ibraimova, leasing agent manager at Sky Land Realty. “Many people prefer to deal with local landlords because they rarely give a notice to leave the house and they attend to maintenance requirements,” says Ibraimova, who assisted Moufti in finding both their first and second house. “This is one of the reasons Umm Suqeim and Jumeirah are so popular; locals own a lot of properties here.” Around 90 per cent of people moving to Jumeirah and Umm Suqeim are Europeans, Canadians and American, she adds. “They like this area because it’s close to the beach, shops, schools and kindergartens.” Low-rise, contemporary While most properties around Al Wasl Road are villas, a few offer apartments such as City Walk and Dar Wasl. Located next to Safa Park and the Dubai Water Canal, Dar Wasl is a mixed-use complex with residential and commercial units. Developer Wasl Properties released the villas in the Andalusian-inspired community in 2016 and 112 apartments last year. “Dar Wasl is popular because the apartments are facing the main Al Wasl Road, while the villas are at the back,” says Ibraimova. Further along the road towards Jumeirah 1, City Walk offers the only freehold apartments within the area through 34 low-rise buildings.

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Rajiv Ghanekar, senior broker at Keller Williams Real Estate, says City Walk is sought after primarily for its connectivity and low-rise buildings. A low-rise apartment complex implies fewer units per floor and quiet surroundings, so overall a better living environment. “I have been active in City Walk for almost a year. From a lease perspective, the demand is good,” says Ghanekar. “I receive on average eight leads a month, so about 80 leads a year.” “And that’s only one agent. What’s driving the demand is firstly the contemporary finishing — people like brand new properties. They also like the open-kitchen concept.” Ghanekar says the tenant profile in City Walk is very similar to that of Downtown Dubai — people working in Dubai International Financial Centre or around Shaikh Zayed Road, although more families choose City Walk, he says. “People who move here typically want to live in Jumeirah, Downtown or DIFC. These are the areas that compete with each other.” Besides the residences, City Walk is also home to dynamic leisure and entertainment destinations. “New projects like Dar Wasl are popular but many more developments are coming up,” says Ibraimova. “These areas will always be among the best in Dubai.” Source: Gulf News Back to Index

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NAKHEEL PLANS SUKUK SALE AND MALL FINANCING Monday, September 24, 2018 Nakheel, the developer of the palm shaped islands off Dubai, is working with a group of banks to raise a loan for a new mall and, separately, it is planning to issue US dollar-denominated sukuk, sources familiar with the matter said. The company is now planning to return to the debt market with a new public issue of US dollar-denominated sukuk, or Islamic bonds, which it could sell over the next few months, said the sources. Asked to comment on its sukuk plans, Nakheel said it does not comment on speculation. Separately, the company is putting together a loan needed to back construction of a new mall in Deira, Dubai’s oldest cultural district. Emirates NBD is coordinating the financing, which will involve a consortium of local banks and should reach completion by the end of this year. One of the sources said the deal is expected to be around Dh4 billion ($1.09 billion). A Nakheel spokeswoman said the company has a number of options for project financing, without adding further details. Emirates NBD declined to comment. The mall project, worth Dh6.1 billion, will be built by United Engineering Construction Company under a contract worth Dh4.2 billion, Nakheel said earlier this year. The mall, which the company says will be the biggest in the Middle East, should be completed by 2021. Source: Gulf News Back to Index

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TOP 10 DUBAI COMMUNITIES WHICH OFFER HIGHEST RENTAL YIELD Tuesday, September 25, 2018 Despite decline in rentals and slowdown in overall real estate market, some section of Dubai's property market still offer decent rental yield of high single digit to investors. "With prices flattening, the capital appreciation at this point might seem less, but we expect long-term gains leading up to 2020," Luxhabitat said, adding that rental yields overall have fallen by a minimal of 0.20 per cent but investors can still benefit from an attractive rental yield of 6.23 per cent year-to-date on average. Highlighting the top 10 Dubai communities which offer highest rental yields, the leading high-end property brokerage stated that a Dubai Sports City apartment could offer the best returns of up to 9.2 per cent per annum while the apartment rates in the area have declined by nearly two per cent in the past six months. Similarly, apartment in Dubai Silicon Oasis, where prices have fallen by 3.6 per cent in the past 6 months, offered a rental yield of 8.7 per cent year-to-date to the investors. A popular area for the working class, property prices in International City had dropped 2.6 per cent but it offers strong rental yield of 8.6 per cent to property owners. Jumeirah Village Triangle, which is still under development, is also attracting a good number of tenants and is considered good for people working in Dubai South and communities linked to Al Khail Road and Sheikh Mohammed bin Zayed Road. Prices in JVT had dropped 2 per cent in the past 6 months but apartments there fetched 8.45 rental yield year-to-date. Studies from Chestertons Mena said that apartment rental rates in Dubai declined by 4 per cent quarter-on- quarter in Q2 2018. A July study from property portal Bayut said that Dubai rental rates had fallen by two to nine per cent over the past 12 months, and an April report from Cavendish Maxwell said that Dubai rents had declined by five per cent year-on-year. According to a recent survey from comparison site yallacompare, over 1 in 5 UAE residents were paying more in rent, for the same property, in second-quarter as compared to same quarter last year. However, according to yallacompare's research, 20.4 per cent of UAE residents are currently paying less in housing rent than they were 12 months ago. Over 40 per cent are paying the same in rent as they were last year, and 38.6 per centare actually paying more. According to Luxhabitat, among the top 10 communities that offer best rental yields of the emirate include Discovery Gardens, Dubai Investment Park, Jumeirah Village Circle, Liwan, IMPZ and Dubai Residence Complex which offer rental yields between 7.9 per cent to 8.4 per cent. Apartment prices in these communities fallen between 1 per cent to 2.8 per cent in the last 6 months, Luxhabitat said. Source: Khaleej Times Back to Index

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WYNDHAM HOTELS PLANS 30% PORTFOLIO GROWTH IN THE MIDDLE EAST Tuesday, September 25, 2018 Wyndham Hotels & Resorts, the New York-listed hospitality company, expects to grow its regional portfolio of hotel rooms by 30 per cent by 2022 from 10,500 rooms today, to capitalise on rising demand in the mid-scale sector. “We always say ‘follow the planes’ as this is the best indicator of which markets hotel guests want to be in,” said Dimitris Manikis, president and managing director, EMEA, at Wyndham Hotels, in an interview with The National this month - his first since being appointed to the role in April. “Whether it’s the rise in tourism attractions, conference centres, theme parks - these things are bringing a combination of international, domestic and transit visitors to the Middle East.” Wyndham is also scouting for potential acquisitions in the region. “There is no business that is doing its duty to shareholders if it is not looking at opportunities to buy,” said Mr Manikis. He declined to say whether any talks are ongoing at present. In the UAE, Dubai received 8.1 million tourists in the first half of this year - nearly flat year-on-year growth, but the number of visitors from China and Russia in particular rose thanks to the new visa-on-arrival system for both countries. Dubai has a target to reach 20 million visitors by 2020, and 75,000 hotel rooms are expected to be added to the market by then. The city also recorded the highest international overnight visitor spend in 2017 with tourists spending $29.7 billion (Dh109bn), a ranking of global cities by Mastercard found. The number of hotel guests staying in the capital rose by 10.5 per cent in August compared to the same period last year, said the Department of Culture and Tourism – Abu Dhabi earlier this week. Wyndham operates 20 brands globally, half of which are in the Middle East and Africa, including Wyndham Grand, Tryp by Wyndham, Hawthorn Suites and others. The company is planning to debut its Super 8 budget brand in Dubai by the end of next year and another US brand, Days Inn, which is already in Saudi Arabia, will launch in the UAE in 2020, Mr Manikis said. Wyndham sees substantial opportunities to grow its predominantly mid-scale brands across the region as the segment gains momentum. Hotel revenues across the Middle East and North Africa have fallen in recent years because of low oil prices denting consumer spending, and rising supply of hotel keys as the market matures. However, in many markets including the UAE, hotel occupancy rates have held up indicating resilient demand, according to advisory firm EY’s Mena hotel report in August. “Today we are confronted with the issue of oversupply, which has pressured rates and caused RevPAR [revenue per available hotel room] declines for the past two consecutive years with a few exceptions, such as Kuwait,” said Ignace Bauwens, Wyndham’s regional vice-president for the Middle East, Eurasia and Africa, who also spoke to The National this month. The cost of constructing and operating mid-scale hotels is lower than for upscale properties. There is currently a 50:50 ratio of mid-scale to luxury hotels in the region, compared to around 80:20 in most developed markets, Mr Bauwens added. “So there is significant untapped opportunity.”

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Wyndham grew its room portfolio in the mid-scale sector by over 25 per cent across the Middle East and Africa over the past two years.

Outside the Middle East, Wyndham is focusing on sub-Saharan Africa, where it has eight hotels at present with plans to double the number over the next three years. It is eyeing Kenya, Benin and Senegal and wants to grow its presence in Ethiopia, where it has a Ramada hotel and three more under construction, and Nigeria, where it has one hotel in Abuja and an upcoming property in Lagos. Source: The National Back to Index

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58% OF UAE RESIDENTS PLAN TO INVEST IN PROPERTY IN THE NEXT 12 MONTHS Tuesday, September 25, 2018 Around six in 10 UAE residents plan to invest in property in the UAE or overseas, making real estate the most popular investment class, a new survey found. Fifty-eight per cent are keen on investing in real estate in the next year – an increase on last year’s study, with the United States, United Kingdom and Australia the most popular locations, according to a YouGov poll of 1,000 residents from property investment company IP Global. Investor confidence has returned after the impact of Brexit and the US election, said Richard Bradstock, director and head of the Middle East at IP Global. “In fact, from our global study, UAE residents have the strongest appetite to invest in overseas property (14 per cent) in comparison to citizens from Hong Kong, South Africa and the UK," he said. The UAE property market has struggled in 2018 with S&P Global Ratings estimating earlier this year that prices in Dubai, the country's largest real estate market, could slip 10 to 15 per cent over the next two years. Dubai property market transactions fell 16 per cent year-on-year in value in the first half of the year, according to data from Dubai Land Department. Another July report from property consultancy Chestertons found that apartment and villa rents fell 3 per cent and 1 per cent in Abu Dhabi, respectively, in the second quarter of the year. However, property experts expect a surge in new business from older residents as the UAE Government's new five-year retiree visa unveiled last week, which allows those over the age of 55 to stay in the UAE, takes effect. Lynnette Abad, the director of research and data at real estate portal Propertyfinder.com, expects the number of end users to rise as residents look to qualify for the visa with one of the criteria of an investment property worth at least Dh2 million. Despite the softening UAE market, IP Global says a quarter of those polled hope to acquire housing in the Emirates, while four in 10 plan a purchase in their home country. Reasons for investing overseas include securing future living accommodation for half of those polled, while 46 per cent hope the investment will produce funds for retirement and their children’s education and 39 per cent are focused on achieving capital gains. However, not everyone is on board with the idea of property investment, with some respondents hesitant. Reasons for this include a lack of understanding of the laws and regulations of overseas property markets and tax considerations, said IP Global. The YouGov study also found different attitudes to property investment between nationalities. While Emirati investors were focused on pure capital gains, Arab residents were looking for future living accommodation and Asians planned to invest to earn funds for retirement and their children’s education. Westerners had three incentives: living accommodation, resources for retirement and their children’s education and a monthly rental income. Source: The National Back to Index

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TOURISTS SPEND MORE IN DUBAI THAN ANY OTHER CITY IN THE WORLD Tuesday, September 25, 2018 Dubai recorded the highest international overnight visitor spend in 2017 with tourists shelling out $29.7 billion (Dh109bn), a ranking of global cities by Mastercard found. The emirate attracted the most consumption by tourists for the third year in a row, with a $537 daily spend, according to Mastercard’s Global Destination Cities Index 2018, which assessed 162 cities. Dubai was also ranked the fourth most-visited city in the world for the fourth year. Abu Dhabi is the fastest growing city in the Middle East and Africa, with a compound annual growth rate of 18.21 per cent between 2009 and 2017 in overnight visitor arrivals. The capital is also among the top 10 cities experiencing the strongest growth in international arrivals. New attractions and experiences have contributed to Dubai's success, said Issam Kazim, the chief executive of Dubai Corporation for Tourism and Commerce Marketing. He cited the city's "culture and the arts to history and heritage as well as updates to attractions" as main contributors to the rise. Dubai, the commercial and tourism hub of the Arabian Gulf, received 8.1 million tourists in the first half of this year, a nearly flat year-on-year growth, according to the DCTCM. But the number of visitors from China and Russia rose sharply due to to a relaxation in visa requirements for the nationals from the two countries. The UAE, the second biggest GCC economy, is implementing a number of measures to boost tourism, including plans to grant visit visa to transit passengers.

Abu Dhabi has also seen its investment into promoting the emirate as a must-visit tourist destination pay off. The number of hotel guests staying in the capital rose by 10.5 per cent in August compared to the same period last year, said the Department of Culture and Tourism – Abu Dhabi earlier this week. In Mastercard’s index, Bangkok was the most visited city in the world with 20.05m visitors last year and an average daily spend of $173. London took second position with 19.83m visitors and Paris came in third with 17.44m visitors.

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While Dubai took fourth place as it hosted 15.79m overnight tourists in 2017, with an average stay of three-and- half nights, visitors spent significantly more on a daily basis.

Paris had the second highest daily spend at $301 a day, followed by Singapore at $286. The daily spend amount includes the cost of staying in a hotel. Saudi Arabia’s Mecca had the second highest international spend in 2017 at $18.45bn. This is likely due to the high number of religious visitors the city receives annually. London came in at third position with an annual international spend of $17.45bn. Of the most visited cities, Istanbul had the lowest spend per day at just $108 on average. Source: The National Back to Index

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NAKHEEL SIGNS DEAL TO BUILD RESIDENTIAL TWIN TOWERS AT DUBAI'S DRAGON CITY Tuesday, September 25, 2018 Nakheel has signed a construction contract for Dragon Towers, its new, twin-building residential complex with a total development value of AED713 million, to be built at Dubai’s Dragon City. Under the AED552 million contract, handed to UAE-based Ali Mousa & Sons Contracting, mobilisation will begin immediately, with anticipated completion in 2021. Nakheel also confirmed that Dragon Towers’ apartments will go on sale next week, and is among a range of other Nakheel projects being showcased at the upcoming Cityscape Global. Directly-connected to the world-famous Dragon Mart retail and trading complex, the 37-storey, two tower project comprises one- and two-bedroom apartments; ground and first floor retail; four parking levels and a sixth floor podium-level clubhouse with a swimming pool, restaurant and gym. Dragon Towers is a key component of Nakheel’s ongoing retail, hospitality and residential expansion at Dragon City, which is already home to Dragon Mart 1 and its sister mall, Dragon Mart 2, plus an ibis Styles hotel. A new showroom and car park complex and a second hotel are in advanced stages of construction, with further expansions in the pipeline. Source: Arabian Business Back to Index

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ABU DHABI'S KIZAD LAUNCHES NEW FREE ZONE WAREHOUSES, INDUSTRIAL UNITS Tuesday, September 25, 2018 Khalifa Industrial Zone Abu Dhabi (KIZAD) has expanded its product offerings with the launch of new free zone warehouses and light industrial units in response to the needs of distributors, manufacturers, shippers and logistics companies. Located within KIZAD Logistics City, and adjacent to Khalifa Port, the new free zone warehouses will cater to trading and export companies, third party logistics, freight forwarders and distributors. KIZAD said the industrial units will be completed in October, and are available for pre-booking with early bird incentives and competitive prices. Spanning 17,000 square metres, KIZAD's free zone warehouses offer flexible sizes from 380-761 square metres, high power capacity for air-conditioning and cold storage with cost efficient utilities rates. They come with mezzanine offices, a dedicated loading area for each unit and raised floors for ease of loading. The industrial units encompass a total of 31,000 square metres and come with ample power capacity for industrial activities, fire alarm and sprinkler systems. Mohamed Juma Al Shamisi, Abu Dhabi Ports CEO, said: "Primed to become one of the leading warehousing centres in the region, KIZAD Logistics City and its range of product offerings are fast responding to the needs of the logistics and manufacturing sector. "The ongoing investment into KIZAD, Khalifa Port Free Trade Zone and Khalifa Port has been instrumental in the rising market demand for services within our integrated logistics hub and greater opportunities for growth." KIZAD Logistics City's products also include industrial zone warehouses with a net leasable area of 119,000 square metres. Source: Arabian Business Back to Index

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LULU AND WATERFRONT MARKET TO BUILD HYPERMARKET IN DUBAI'S DEIRA Tuesday, September 25, 2018 The 12ha Warterfront Market in Dubai suburb Deira is one the largest fresh food markets in the region. UAE-based retail giant Lulu Group and The Waterfront Market have signed an agreement to open an anchor outlet in Dubai in January 2019. The Lulu Hypermarket will be spread across 55,000 square feet of retail space within the Waterfront Market and provide the Deira community with a wide range of products, a statement said. It added that the Waterfront Market, a wholly owned subsidiary of Ithra Dubai, is the largest facility for fresh food in the region and consists of dedicated sections for fish and seafood; fruit and vegetables; meat and poultry; and spice and dry goods markets in addition to an array of F&B and retail offerings. Located at the intersection of Al Khaleej Road and Abu Hail Street on the Deira Corniche overlooking the Deira Islands, the market provides the ideal location for Lulu Hypermarket to reach its customers, the statement added. Issam Galadari, CEO of Ithra Dubai, said: “Our partnership with Lulu Group is a major new development which serves to position both brands as the ideal family shopping destination. Waterfront Market is keen to continue providing our growing number of shoppers with a range of choices that will complete their home shopping lists under one roof. "The retail sector remains one of the most robust markets in the region and we are strategically positioned to offer product quality and variety at the best market value while improving our visitors’ shopping experience.” The value of retail sales in Dubai is projected to soar up to AED160.7 billion by 2021 with an average growth of 5.6 percent from 2018 to 2021. Lulu Group is one of the region’s fastest growing retail chains with more than 150 stores spread across the GCC, Egypt, India, and Far East. Yusuff Ali MA, chairman and managing director, Lulu Group International, said: “Lulu Group has been strategically investing in key locations globally where it can best serve its diverse markets. Our partnership with the Waterfront Market serves our loyal customers at the heart of Deira, where we have established one of our earliest shopping centres.” Source: Arabian Business Back to Index

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DUBAI'S MUSEUM OF THE FUTURE ON TRACK FOR 2019 DELIVERY Tuesday, September 25, 2018 The construction of Dubai's Museum of the Future is at an advanced stage and the technically complex project is on track for completion in 2019. Steelwork is expected to be substantially complete in the next three months, allowing plenty of time for mechanical, electrical, and plumbing (MEP) fit-outs, internal lining, and architectural finishes, which have already commenced, to gather momentum in 2019, a representative from project contractor BAM International told Construction Week. “We are nearly there, with approximately 90% of the concrete work done,” said Denis McNelis, engineering manager at BAM International, which is constructing one of the region's most intricately designed developments. “All the podium levels [and] the core are done, and volume-wise, approximately 95% of the volume is poured. “Structural steelwork is more than 90% complete; we’ve just got to finish off the bit over the bridge, and [...] because it is one of the most complicated elements, it’s due to be completed in the next couple of months.” “Because of the construction sequencing, we have to finish the steel before we can [implement] concrete work on the higher levels, because we can’t put the weight on the building until we have a finished, closed structure. “We are only able to pour concrete up to level four, and we still have levels five, six, and seven to [work on],” he explained. McNelis described the Museum of the Future as an “engineering marvel” and reiterated that BAM is on track to complete its scope for the project in 2019. The Museum of the Future website states the project will open in Q4 2019. Designed by architectural firm Killa Design, the oval-shaped superstructure features an impressive steel and glass façade and Arabic poem about innovation woven into the exterior of the building. The calligraphy on the building is a major design feature. BAM International, in collaboration with other project stakeholders, has employed advanced building information modelling (BIM) and 3D modelling technologies to support the delivery of the project. Source: Arabian Business Back to Index

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ARADA AWARDS FIRST INFRA CONTRACT FOR SHARJAH'S $6.8BN MEGA PROJECT Tuesday, September 25, 2018 The total infrastructure package for the $6.8bn project, which has been designed by global engineering contractor Jacobs, will be worth more than $270m (AED1bn). Arada has awarded the first infrastructure package, worth $28 million (AED103m), for its landmark Sharjah megaproject to BIC Contracting. The total infrastructure package for the $6.8bn project, which has been designed by global engineering contractor Jacobs, will be worth more than $270m (AED1bn). The scope of work includes the construction of power, water and communications networks, as well as landscaping and building roads. BICC will mobilise on site immediately and the work will be completed by October 2019. Phase 1 of Aljada consists of 14 apartment buildings, totalling 1,300 units, as well as more than 100 townhouses and semi-detached villas, and is scheduled to be completed by the end of next year. Construction at Aljada is already in full swing, following the development’s official ground-breaking in April, with contractor MBCC on site and building the first four apartment blocks in the AED24 billion project. BICC, formerly known as HLG Contracting, has worked on many of the Middle East’s most important projects, including the expansion of Dubai International Airport, Zayed University in Abu Dhabi and the Burj Al Arab. BICC is part-owned by CIMIC Group, a global infrastructure, mining, services, and public private partnerships group that is listed on the Australian Securities Exchange (ASX). The news follows ARADA’s recent announcement that Sharjah’s first smart homes would be based in Aljada, via the introduction of next-generation technology to the development’s Misk Apartments buildings. In April, ARADA announced the launch of East Village, a 15-building creative community targeting the younger generation, which constitutes Phase 2 of Aljada. Also in April, ARADA signed a management agreement with Emaar Hospitality Group to bring three new hotels, The Address Aljada Sharjah, Vida Aljada Sharjah and Rove Aljada to the megaproject. In January, the developer also confirmed that Jacobs had won a key contract to design the infrastructure for the project. Source: Arabian Business Back to Index

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MINISTRY EXTENDS TENDER DEADLINE FOR KUWAIT INTERNATIONAL AIRPORT Tuesday, September 25, 2018 Kuwait's ministry has extended the tender to deliver programme management consulting services for its international airport's construction Kuwait’s Ministry of Public Works has extended the deadline to bid on programme management consulting delivery for the construction of its international airport, Construction Week reports. The bid submission date for Kuwait International airport project’s construction has been extended to October 24, 2018, instead of September 24, according to the public works office. The ministry issued a tender in July, inviting Louis Berger, CH2M, SNC Lavalin, Ineco, Egis, Turner & Townsend, Hill International, and Parsons to work on the project. Each consultant was required to attach an initial insurance of $330,350 (KWD100,000) alongside their technical proposal. These announcements do not mention additional details of the airport project being tendered. Equipment manufacturer Mammoet said in May that it had been awarded a contract to work on Kuwait International airport's new terminal building, part of a $4.3bn (KWD1.3bn) project. The terminal has a trefoil plan, comprising of three symmetrical wings for departure gates. Each of its façades spans 1.2km, with all of them extending from a 25km central space. Source: Arabian Business Back to Index

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DUBAI RETAINS RANKING AS WORLD'S FOURTH MOST VISITED CITY Tuesday, September 25, 2018 Dubai has retained its ranking as the fourth most visited city in the world for the fourth straight year, according to Mastercard’s Global Destination Cities Index (GDCI) 2018. The city welcomed 15.79 million overnight visitors last year and with a projected growth rate of 5.5 percent, the emirate is expected to witness another year of steady expansion in 2018. Only Bangkok, London and Paris were ahead of Dubai in the global list. Dubai also topped the list of global cities with the highest international overnight visitor spend for the third year in a row, with total international visitor spending of $29.70 billion in 2017, ahead of Saudi Arabia's Makkah ($18.45 billion) and London ($17.45 billion). Abu Dhabi was also named the fastest growing city in the Middle East and Africa, with a compound annual growth rate (CAGR) of 18.21 percent between 2009 and 2017 in overnight visitor arrivals. The UAE’s capital city was also among the top 10 global cities that experienced the strongest growth in international arrivals in the Mastercard study. “Renowned for global firsts and world records, Dubai has never shied away from evolving, and has transformed itself into one of the world’s most prolific tourism and investment hubs,” said Girish Nanda, general manager, UAE & Oman, Mastercard. Issam Kazim, CEO, Dubai Corporation for Tourism and Commerce Marketing (DCTCM) added: “The Mastercard Global Destination Cities Index 2018 confirms Dubai’s retained position as fourth most visited city in the world, cementing the success of joint initiatives we have been working on over the last 12 months in partnership with both government departments and the private sector. "With a focus on highlighting the depth of Dubai’s offering, encouraging visitors to look beyond the city’s iconic landmarks Dubai has continued to be a must-visit and must-return destination. "New attractions and experiences have contributed to this success – from culture and the arts to history and heritage as well as updates to attractions. The retail sector is also further enhancing its offering, presenting visitors with the opportunity to experience an ever-evolving array of shopping districts, activities and offers.” The GDCI expanded this year to look at 162 cities across the world. Source: Arabian Business Back to Index

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SAUDI ARABIA LAUNCHES NEW TOURIST VISA FOR INAUGURAL FORMULA E RACE Tuesday, September 25, 2018 Saudi Arabia announced on Tuesday the launch of a new electronic visa that will allow international motor racing fans to travel to the kingdom to attend the inaugural Saudia Ad Diriyah E Prix to be held near Riyadh later this year. “Saudi Arabia will open up its borders to fans of live sport, music and culture for the first time with the launch of a new online visa process,” said the Saudi General Sports Authority in a statement. The new visa process platform known as Sharek will be introduced for the Saudia Ad Diriyah E Prix on December 15, it added. The historical city of Ad Diriyah, the first seat of power for Saudi kings, will host the biggest festival of car racing, live music and entertainment over three days. Today’s announcement was attended by Formula E stars Felipe Massa, Susie Wolff and André Lotterer. Sharek has been launched as part of the country’s Vision 2030, strategy for the future, spearheaded by Crown Prince Mohammed bin Salman. Organisers expressed hope that a large number of international fans would take advantage to travel to the kingdom. Prince Abdulaziz Bin Turki AlFaisal Al Saud, vice-chair of Saudi Arabia’s General Sports Authority, said: “This is a truly game-changing moment for Saudi Arabia and one that we can share with the world. It is very fitting that the such a futuristic and sustainable sport as Formula E is pointing to the future direction of our country. “With the introduction with ‘Sharek’ our visa entry process for fans worldwide, we can share the event. We hope the Saudia Diriyah E Prix will see fans from around the globe come to Saudi Arabia to watch this epic sporting spectacle as now your ticket is your visa. “Saudi Arabia is racing into the future with Formula E as we open the kingdom to the world in a transformation that is being supercharged by the Vision 2030 plan.” Saudi Arabia has worked with UNESCO to build the track from the historic city’s existing road network. More details about the race will be announced in the coming weeks. The event is officially sanctioned by the Fédération Internationale de l'Automobile (FIA). Formula E joins sporting powerhouses such as WWE and European Tour Golf that have forged long-term partnerships with Saudi Arabia as it establishes itself as a destination for global sports. Source: Arabian Business Back to Index

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RADISSON RED HOTEL LAUNCH IN DUBAI DELAYED TO MID-2019 Tuesday, September 25, 2018 The newly christened Radisson Hotel Group is set to bring a new hotel brand to the Middle East with the debut of the region’s first Radisson Red hotel in Dubai in Silicon Oasis, in mid-2019. “Radisson Red was established to capture the trend of something new, something innovative. It's about integration of technology, a social space and hub dedicated to the millennials,” said Ramsay Rankoussi, vice president, business development – Middle East, North Africa & Turkey, speaking to Hotelier Middle East. Rankoussi said Radisson Red will be a fresh addition to a UAE hotel market that still has a heavy presence of luxury hotels, but has a growing demand for mid-scale and upscale hotels, as well as places where people can share and connect in a flexible and fun environment. When the project was announced in 2016, the then Carlson Rezidor Hotel Group had aimed to introduce the lifestyle select brand to Dubai by Q3 2018. Two years after the brand launch in 2016 in Brussels, construction is still underway for the hotel, as it is part of the $353.9m smart city project in Dubai Silicon Oasis. Since its launch in Europe, the brand has evolved and expanded to other cities in South Africa, Brazil, Scotland, and the United States. The brand's pipeline also includes new hotel projects in China’s Guangzhou, Kuala Lumpur, Malaysia and Mohali in India. These planned hotels keep Radisson Hotel Group on track to meeting its goal of having more than 200 hotels open or in development by 2022 in South Asia. Source: Arabian Business Back to Index

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TYPES OF MORTGAGE LOANS AVAILABLE IN THE UAE Tuesday, September 25, 2018 Finding the right bank for a mortgage loan is the first step prior to a property hunt. Financial institutions provide different types of mortgages, which can vary depending on the preference and eligibility of the borrower. But before picking a particular type of mortgage, borrowers need to do their homework on the types of mortgage available with the banks in their region. Here are some of the standard mortgage types available in UAE. Fixed-rate mortgage Fixed-rate mortgage is traditional and well-known. The interest rate will remain the same throughout the loan period. The flat rate will be predefined during loan approval, which will be followed until the end of the tenure. At some institutions the fixed rate may not last for the entire tenure. Lenders charge a fixed rate for a certain period and then shift to a variable interest rate decided by the Emirates InterBank Offered Rate (Eibor). Variable rate mortgage The variable rate is the inverse of the fixed rate. This keeps fluctuating on a daily basis. Current variable rates in the UAE start from 2.5 per cent. This can increase or decrease as determined by Eibor. With some lenders the standard variable rate is not as high as the fixed rate. If you are planning to choose a variable rate mortgage, then prepare with the fluctuation as it will certainly have an impact on your monthly expenses. Discounted rate Under a discounted rate mortgage, finance is provided based on a standard variable rate. Lenders provide a certain percentage of discount on the interest rate — say 0.5 per cent off for the first three years. The discount is provided as an introductory or welcome offer. This may sound the best mortgage type, but definitely not the cheapest as the discount is only for a limited time. From an overall, long-term perspective there may be other types of mortgages that save money on the total interest paid. Capped mortgage As already mentioned, the variable mortgage rates are slightly low compared to a fixed-rate mortgage. But variable rates are unpredictable as they may rise or fall anytime. This can be stressful for the loan holders. To make it better, financial institutions provide an option called capped mortgage. A maximum cap is set and if Eibor rates increase, the monthly instalment will not go beyond the predefined cap. The capped mortgage is again valid only for a certain period as an introductory offer. Remortgage A remortgage is getting a mortgage loan on an existing mortgage or in simple terms transferring your existing mortgage to a new lender. This is popularly known as balance transfer in the UAE. It can be availed with a different lender or the same lender itself. The concept of remortgage is helpful if the new loan is provided on low interest rates or if the loan holder is in need of additional funds.

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Offset mortgage

Offset mortgage is a new concept in the UAE. Very few lenders provide offset mortgage here. Under an offset mortgage, loan holders can link their savings account, current account, credit card account and the loan account. Whenever some funds are credited on any of the accounts the loan amount gets reduced by an offset of the credited amount. For example, on a mortgage amount of Dh300,000, if the funds added to the account are Dh50,000 then the loan amount will be Dh250,000. The interest rate will be calculated on Dh250,000 only. The borrower can use the funds on the linked savings/current account when required. The interest rate is paid only on the loan amount left, decreasing the amount of total interest paid, while not depriving you of financial independence. For any individual, purchasing a home should definitely be a pleasant experience and it can be achieved only if you plan well and figure out the financial products that are best for you. It is important to understand the different mortgage types before you sign the dotted line as a home mortgage is something that will have a huge financial impact for the long term. Souri Guha is the co-founder of MyMoneySouq. The viewes expressed here are his own. Source: Gulf News Back to Index

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JOINT VENTURES CAN BE A WIN-WIN IN DUBAI’S REAL ESTATE Tuesday, September 25, 2018 In anticipation of the World Expo 2020 and as part of the broader UAE vision 2021, the Dubai real estate market has experienced an increase in the use of joint venture arrangements between foreign developers and local land owners as a means of developing real estate. More often than not, such joint venture arrangements are proposed by experienced foreign developers to land owners who may not have the time or know-how to monetise the land. However, if structured properly, both parties can come out winning from such an arrangement. The establishment In Dubai, a joint venture between a foreign developer and a local land owner can be structured through an “incorporated joint venture” or a “contractual joint venture”. Under an “incorporated joint venture” structure, a new company is incorporated and which is jointly owned by the joint venturers. In Dubai, typically a limited liability company (LLC) is incorporated as it is considered the most suitable form for joint ventures between local and foreign entities due to the flexible management structure, the availability of minority shareholder protections, the ease of formation, and the operation of the Dubai Land Department’s current policy on foreign ownership of land. That is, foreigners can only own land in the designated areas in Dubai via three company vehicles, being: (1) an LLC which is 51 per cent owned by a local and 49 per cent owned by a foreigner; or (2) a JAFZA offshore company or a DMCC offshore company that can be both up to 100 per cent owned by foreign entities. Under a “contractual joint venture” structure, the joint venture is merely a contractual arrangement between the parties. In Dubai, this structure is rarely used because it cannot be registered. The main considerations for joint venturers when establishing are the contribution of capital/assets, management and governance, distribution of profit and losses, exit provisions, deadlock and dispute resolution. These issues are typically documented and dealt with in a formal joint venture agreement, as well as in the articles of association of the LLC. Contribution of capital/assets Typically, joint venturers contribute equity combined with “in-kind” contributions, which are often in the form of development management services from the foreign developer and land from the local land owner. Management and governance A joint venture arrangement is typically managed by a board of directors. However, there is often a list of reserved matters that require shareholder approval. It is also common for joint venture partners to execute non- compete agreements. Distribution of profit and losses Although the law prescribes that in an LLC, the local land owner must own 51 per cent of the share capital, the joint venturers can determine an alternative ratio for the profit and loss distribution themselves. Deadlocks and dispute resolution

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The joint venture agreement typically sets out how deadlock situations will be resolved between the joint venturers. One common method is to create a decision-making authority or committee in the joint venture entity and designate the process for deadlock situations to be resolved. Alternatively, joint venturers may establish an obligation to escalate the deadlock to senior management to negotiate in good faith to resolve the deadlock for a period, after which the given dispute resolution mechanism would apply. Thereafter, dispute resolutions common in the UAE are litigation or arbitration. — Shahram Safai is a Partner and Anna White an Associate at Afridi & Angell Legal Consultants’ Dubai office. Source: Gulf News Back to Index

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FOREIGN INVESTMENTS IN BAHRAIN ON THE RISE Tuesday, September 25, 2018 New foreign direct investment in Bahrain more than doubled in the first nine months of 2018 as the kingdom marketed itself as a base for companies to access the region, especially Saudi Arabia, data released on Tuesday showed. Investment commitments between January and September jumped 138 per cent from a year ago to a record $810 million (Dh2.97 billion) from 76 firms, said the Economic Development Board, an investment promotion agency. That compared to $733 million in all of 2017, and was over five times the amount of FDI in 2015. The rise in FDI is good news for Bahrain’s balance of payments, which has been under pressure as the kingdom runs fiscal and current account deficits fuelled by low oil prices. The central bank’s net foreign reserves hit a one-year low of 499.4 million dinars ($1.32 billion; Dh4.82 billion) in July, although they rebounded to 734.2 million dinars last month. Manufacturing and logistics accounted for most foreign investment in the first nine months of this year, the EDB said. Some companies are locating operations in Bahrain to take advantage of reforms in Saudi Arabia, which aims to develop non-oil industries such as mining, light manufacturing and tourism. Bahrain also wants to become a centre for financial technology; last year it created a “regulatory sandbox” allowing companies in the field to experiment without facing normal regulatory constraints. This year it established a $100 million fund of funds to support technology start-ups across the region, which it hopes will attract venture capital firms to Bahrain. Source: Gulf News Back to Index

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10 FACTS TO KEEP IN MIND WHILE BUYING YOUR PROPERTY Tuesday, September 25, 2018 For those living in the UAE, taking the plunge into property investment comes with many concerns that require careful consideration. Below are 10 points that could help put your mind at ease when considering investing in property in the UAE: Affordable housing The luxury property segment will always be synonymous with the UAE. However, as the population grows, the demand for affordable housing is set to continue for years to come. As a result, developers are now moving towards bringing more options of affordable housing for first-time buyers and young families looking for a solid investment. Smaller sized townhouses and generous apartments are becoming ever more popular. Profitable investment While the UAE property market is still relatively young compared to other cities in the world, this offers investors a better investment proposition. Investors looking to purchase properties can potentially get higher-than-average rental yields in comparison to similar developed markets. However, carry out your own due diligence when making assessments on the market as interest rates on the mortgage can fluctuate considerably. Holiday home Planning to spend the summer out of the UAE? Why not consider letting your property as a holiday home for short-term rental? Remember, your guests are likely to choose a holiday home based on design, feel and functionality, so invest in the look and feel to keep your short-term rental price competitive. Put your rent money into a mortgage As a UAE resident, you are likely to spend a substantial sum of money on rent. By buying a property on a mortgage, your monthly rent could go for your mortgage repayment. You may also choose to lease out the property and the rental income could go towards your mortgage payments. Location is king Where you buy a property can make the biggest difference when it comes to seeing your investment grow. Across the UAE, new projects are under development and investors now have the luxury of choosing from a number of communities with good levels of infrastructure, facilities and lifestyle amenities at arm's reach. Diversify your investment portfolio Planning for the future, whether it means saving for university fees for your children or supplementing your income for retirement, should be a key priority for everyone. If you are planning to diversify your investments, consider including real estate in your portfolio. Start saving now for the down payment In today's market, UAE nationals purchasing property are required to put a down payment of 20 per cent and while non-UAE citizens must set aside a 25 per cent down payment. Start saving, so that you can afford the down payment.

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Consider going off-plan

If you have ever considered buying a property in the UAE, you would have come up against the question of whether to buy off-plan or to invest in a ready property. While there are pros and cons for each option, you should know that buying off-plan is not as intimidating as it may first appear. Many developers are now offering more flexible payment plans for off-plan properties. Settling down in your own home If you are renting, the majority hesitate to make any changes to their home. Buying your own home can give you a sense of security. Being settled allows you to make renovations and modifications to make your living environment as comfortable as possible. Stricter regulation for agents The UAE government has taken active measures to ensure that real estate companies and brokers are licensed to provide their services. These regulations work towards protecting the investors and regulating the market. For your peace of mind, check the agent's credentials before entering into any agreement and making any payments. The writer is head - consumer assets at ADCB. Views expressed are his own and do not reflect the newspaper's policy. Source: Khaleej Times Back to Index

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OPPORTUNITY RIPE FOR DUBAI TO ATTRACT MORE CHINESE WEALTH Tuesday, September 25, 2018 The first half of the last century witnessed the unstoppable growth that industrialised most of the Western hemisphere. The second half of the past century has seen the "rise of the rest", notably China. The country has grown nine per cent each year for almost 30 years, the fastest rate for a major economy in recorded history. With that large-scale growth, the average Chinese person's income has increased 20-fold. With a considerable amount of disposable income in the pockets of citizens, both industrialised markets as well as those looking to advance their status, have their sights on the Chinese buyer. Equally so, millions of Chinese from high net worth individuals to the burgeoning middle class, have become savvy investors looking to snap up prime real estate from the US to Australia - and many places in between. As Western markets have become more saturated and seen property prices increase exponentially, it is the emerging markets that are providing the most exciting real estate investment opportunities for the savvy investor. Dubai's government has placed the city in many 'top' lists - including being a popular pick for global investors eyeing the expanding real estate market. Already attractive for its lack of taxes, a pillar of any Western economy, Dubai has even more to offer when it comes to that most savvy investor - the Chinese buyer. According to the Royal Institution of Chartered Surveyors (Rics), overseas real estate investment from China has grown rapidly since 2012. Juwai.com, China's largest overseas property website, found that Chinese outbound investment into both residential and commercial real estate in 2014 was more than $50 billion. By 2016, that amount more than doubled, reaching $101.4 billion across both sectors, up 845 per cent over the past five years, and a 25.4 per cent growth from 2015. As Chinese government restrictions kicked in efforts to stabilise the renminbi, 2016 saw a decline in investment, but it is still a sizeable amount at approximately $80 billion. Historically, the US has been the recipient of 43 per cent of Chinese investment in real estate in popular cities like New York, Chicago and Los Angeles, and recently Seattle. Hong Kong at 18 per cent and Australia at 12 per cent account for another 30 per cent of real estate investment by the Chinese, meaning that less than a third of overall investment is spent in other markets. However, what Chinese buyers are coming across are the institutional tax increases from Hong Kong, Australia and the United Kingdom specifically targeting foreign buyers. Conservative projections claim that the Chinese will devour $1.5 trillion in overseas real estate assets within the next decade, thus the opportunity is ripe for Dubai to attract more of that wealth. While Dubai is not completely free of its own taxes, despite many fees, rental yields are some of the most lucrative. The Global Property Guide places Dubai as the top city in the Gulf and third in the Middle East with rental yields at 5.19 per cent per year. When looking at commercial property, JLL ranks Dubai number fifth in the world with prime yields of 7.5 per cent with a manageable supply pipeline. Certainly, the Chinese have caught on when it comes to Dubai. Transactional data shows that since 2014, Chinese investors have ranked in the top 10 nationalities of those investing in the Dubai real estate market. From 2015 to 2016, there was a 16 per cent increase in transactions by Chinese buyers and from 2016 to 2017, there was a significant increase of 64 per cent. A trend that has remained constant is Chinese buyers purchasing apartments in International City that are less than Dh1 million. However, in recent years, we have seen Burj Khalifa area apartments become a popular choice amongst Chinese buyers.

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As part of the 'Belt and Road Initiative' unveiled in 2013 and aimed at strengthening trade and other economic partnerships with 68 countries who encompass 65 per cent of the world's population and 40 per cent of global

GDP, China has strengthened ties with the UAE as a whole. With 4,000 trading companies in the UAE and a surge in Chinese tourists, Dubai has become even more attractive for the Chinese investor. While high net worth Chinese have invested in Western markets for want of obtaining citizenship or to send their children to top universities, the millions that make up the Chinese middle class would be wise to set their sights on investing in Dubai. Just last month, Fidu Properties, a Chinese real estate group, announced plans to invest Dh5 billion in investments over the next three years, Dh2 billion of which will be invested in the real estate sector. Plus, they have a Dh380 million deal with Emaar for residential and commercial space at The Grand in Dubai Creek Harbour. With Emaar's announcement to build the world's largest Chinatown district as well as increased investment from the Chinese government and other Chinese companies in real estate and construction, the UAE will continue to extend its hospitality to the Chinese, and the Chinese will continue to reap the rewards of every opportunity the UAE has to offer. The writer is director of data and research at Propertyfinder Group. Views expressed are her own and do not reflect the newspaper's policy. Source: Khaleej Times Back to Index

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DUBAI HOMES 22% CHEAPER THAN MARKET PEAK IN 2014 Wednesday, September 26, 2018 Property values in Dubai are 22.3 per cent cheaper since the peak of mid-2014, according to a third quarter report issued by local consulting firm ValuStrat. Although residential capital values dipped by nine per cent in third quarter of 2018, the decline has slowed to 2.9 per cent since the previous quarter. "Our research has shown that this quarter saw increased investor focus on ready-to-move-in apartments and villas priced between Dh3 million and Dh5 million, causing the average ticket size to jump," said Haider Tuaima, head of real estate research at ValuStrat. All established freehold locations witnessed price drops since the last quarter, ranging from 0.2 per cent to five per cent, said ValuStrat. Quarterly declines of more than four per cent were registered in Jumeirah Islands, Business Bay, Palm Jumeirah (apartments) and Discovery Gardens. Capital values for villas in Palm Jumeirah and Al Furjan remained mostly flat as compared to Q2. Established areas that witnessed substantial off-plan sale transactions during the last three months included Downtown Dubai at 85 per cent of sales being off-plan, Business Bay at 84 per cent and Remraam 75 per cent. Average ticket prices for off-plan homes fell 3.8 per cent QoQ, whereas ready property ticket sizes jumped 9.5 per cent QoQ, suggesting improved interest in prime properties. According to ValuStrat, an estimated 12,332 apartments and villas, 27 per cent of the total supply as expected at the start of 2018, have been completed year to date. Seventy per cent of these completions, amounting to 8,614 units, were located mainly in five areas: Dubailand, Jumeirah Village Circle, Dubai Silicon Oasis, International City phase 2/3 as well as Dubai Marina. Residential asking rents fell 11 per cent year on year, however, on a quarterly basis, asking rents declined 5.1 per cent. Compared to the same period last year, listed rents were down 11.1 per cent for apartments and 10.2 per cent for villas. Declan King, managing director and group head real estate, ValuStrat, said: "While the third quarter is normally a quieter time in the Dubai real estate sector, with many people away during the summer holiday months, it will be interesting to see if early signs of a slow-down in price declines continue into Q4. Also, bearing in mind the impact off-plan launches have had on the city's wider property market over the last year, we would hope that the forthcoming Cityscape Global will see a more measured approach to new home launches in Dubai." Source: Khaleej Times Back to Index

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OPEC, ALLIES RULE OUT URGENT HIKE IN OIL OUTPUT Sunday, September 23, 2018 Leading oil exporters on Sunday ruled out any immediate boost in crude output but reassured the market that they would do whatever is necessary to balance the supply. The decision by Opec and its allies not to urgently increase output at their meeting in Algiers was in effect a snub to US President Donald Trump, who has been persistently calling for action to cool the market. UAE Energy Minister Suhail bin Mohammed Faraj Faris Al Mazrouei said as the market is right now in "good condition," the UAE would not overuse its spare production capacity. "We still have a job to complete which is going to the 100 per cent," said Al Mazrouei on the sidelines of a meeting by Opec and non-Opec energy ministers. He was referring to the production compliance Opec and allies had agreed.

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Saudi Energy Minister Khalid Al Falih also ruled out the need to use spare capacity to increase oil output.

"My information is that the markets are adequately supplied. I don't know of any refiner in the world who is looking for oil and is not able to get it," the Saudi minister said, adding: "I do not influence prices." Al Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months. "We have the consensus that we need to offset reductions and achieve 100 per cent compliance, which means we can produce significantly more than we are producing today if there is demand," Al Falih said. Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate his demand on Thursday that the Opec lower prices. The price rally mainly stemmed from a decline in oil exports from Opec member Iran due to fresh US sanctions. "We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The Opec monopoly must get prices down now!" Trump wrote on Twitter. Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East." Russian Energy Minister Alexander Novak also ruled out the need for any immediate output increase, and said a trade war between China and the US as well as sanctions on Iran were creating new challenges for oil markets. Seeking to reverse a downturn in oil prices that began in 2014, Opec, Russia and other allies decided in late 2016 to reduce supply by some 1.8 million barrels per day. However, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed in June this year to boost output by returning to 100 per cent compliance. That equates to an increase of about 1 million bpd, but the latest figures show they are some way from achieving that target. In August, Opec and its allies cut production by 600,000bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline. Last week, Opec secretary-general Mohammad Barkindo said in Fujairah that oil producers aimed to agree on a framework for long-term cooperation by December when they meet in Vienna. "Our determination is to institutionalise this cooperation and to get the permanent framework hopefully by December." According to a majority of 200 energy industry executives polled in the UAE last week, Brent crude oil will end 2018 at above $75 a barrel, the highest year-end price in four years. Brent, after briefly breaking through $80 a barrel earlier this month, has stabilised a little below the $80 mark for the past week on mixed signals from oil producers. Brent crude has averaged year to date at $71 a barrel. "We anticipate a decline in demand mainly driven by the trade dispute between the US and China, but also monetary policy normalisation which will affect global growth," said Dr Fahad Al Turki, chief economist and head of research, Jadwa Investment. "All this will potentially reflect on oil prices. We're looking at $68 [average] for this year and $73 for 2019." Source: Khaleej Times Back to Index

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GCC DOLLAR PEG TO STAY DESPITE TRADE WAR RISK Tuesday, September 25, 2018 The dollar peg of GCC currencies will stay on the back of sufficient resources despite the downside risks to the global economic outlook amid escalating trade tensions, MUFG Bank said. "We view that the direct impact on the GCC region from a prolonged global trade dispute, and ultimately the sustainability of the region's currency pegs, as negligible," Ehsan Khoman, head of Mena research and strategy at MUFG Bank, said. In principle, the global trade tensions have no immediate effect on the region, which is not directly involved or implicated in the current trade disputes, Khoman said. Dismissing growing concerns on the sustainability of GCC currency pegs as misplaced, the MUFG report said the dollar link "makes intuitive sense" given the structure of the GCC economies. "The accumulation of large foreign currency savings during the last oil boom can be used to defend the peg. While some of these reserves have been used recently, they remain sizeable and sufficient to defend the peg even if oil prices stay low. On top of that, there is a political will to maintain the peg," said the bank report. The leading Japanese bank, however, warned that devaluation probability could increase sharply at lower oil prices for longer at least for two countries in the GCC - Oman and Bahrain - within two to three years. Under the assumption that Brent oil prices stabilise at $50 per barrel levels constant for the next 10 years, the devaluation probability in Oman could reach over 80 per cent in Oman within three years. Bahrain would follow suit, as its devaluation probability would increase to 60 per cent within five years. The devaluation probabilities would start ratcheting higher in Saudi Arabia after six years and would reach 50 per cent within eight years. Source: Khaleej Times Back to Index

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ASTECO SAYS RENT-TO-OWN SCHEMES

UNDERPIN 'CAUTIOUS OPTIMISM' Wednesday, September 26, 2018 Despite softening real estate prices, property manager Asteco said it is exercising "cautious optimism" as rent-to- own schemes and crowdfunding for properties begin to gain traction in Dubai. “We believe these developments have the potential to absorb some of the pent-up demand from end users and first-time buyers,” John Stevens, managing director of Asteco, said in a statement Wednesday. However, rents across all asset classes are expected to come under further pressure this year, and this trend is likely to spill over into early 2019, according to the property management firm. UAE residential real estate prices continued to slide in the third quarter of 2018, with sale prices in Dubai recording the most pronounced decline of 4 per cent, and apartment rents in Dubai and Abu Dhabi falling 2 per cent and 3 per cent, respectively, according to Asteco. Neighbourhoods with high volumes of new housing stock getting turned over to buyers and tenants for the first time, both within Dubai as well as across surrounding developments, recorded the sharpest rental rate downturn and the highest rise in tenant turnover. In Abu Dhabi, apartment sales prices witnessed a marginal decline of 1 per cent over Q3 2018, mainly due to the limited demand for completed units available within the secondary market, translating into a lower number of transactions, Asteco said. Residents across the country are looking to get more value for their money by seeking out properties in less built- up areas, Mr Stevens said. Another dynamic is also emerging amid increasing affordability, with tenants taking advantage of the sustained rental rate downturn to land a relative bargain and upgrade to larger units with higher quality finishings in more developed areas. Dubai added 3,850 new apartments and 570 new villas and townhouses in Q3 2018 bringing the total for the year to over 12,000 residences. To entice more buyers, real estate professionals are calling for lower loan-to-value (LTV) ratios, said Mr Stevens. The LTV ratio is currently set at a maximum of 75 per cent for expatriates buying a property below Dh5 million, but lowering the ratio would reduce the down payment required for first-time home-buyers. “Although no such changes have been announced at the time of compiling the report, there appears to be a consensus that such a reform would provide a much-needed stimulus to the property market,” Mr Stevens said. Source: The National Back to Index

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NEW LUXURY GARDEN COMMUNITY UNVEILED IN SHARJAH MEGA PROJECT Wednesday, September 26, 2018 Developer Arada has announced the release of a new luxury garden community at the heart of its record- breaking Sharjah mega project, Aljada. Sarab Community will feature 109 townhouses and semi-detached villas, which will go on sale at the upcoming Cityscape Global real estate exhibition, the company said in a statement. The highlight of the Sarab Community is a hidden members-only gym and swimming pool, which is surrounded by trees and built below ground level, it added. Sarab Community is located only a few minutes’ walk away from the Central Hub, a 1.9 million square foot complex designed by Zaha Hadid Architects that is set to be a new leisure and entertainment centre for the UAE. Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada, said: “Sarab Community is a stunning addition to the portfolio of homes available at Aljada, Sharjah’s new lifestyle destination. These tranquil garden homes are perfect for modern families who want to enjoy their privacy while still feeling connected to the pace of city life.” Visitors to Cityscape Global, which is taking place between October 2-4, can register their interest and view the designs and floorplates of these exclusive homes at the Arada stand. The latest announcement at Sharjah’s largest mixed-use lifestyle destination follows a series of milestones, including the first infrastructure contract award, to BICC Contracting in September, and the first main construction contract award, which was handed to Modern Building Contracting Company in July. Launched in September 2017 by Sharjah ruler Sheikh Dr Sultan bin Muhammad Al Qasimi, Aljada will be delivered in phases starting in 2019, with the entire project expected to be completed by 2025. Source: Arabian Business Back to Index

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PR OPERTY GIANT ALDAR BUYS REMAINING 40% STAKE IN UAE'S KHIDMAH Wednesday, September 26, 2018 Abu Dhabi-based Aldar said the acquisition of Khidmah reinforces its commitment to the property management sector. Aldar Properties on Wednesday announced that it has acquired 40 percent of Khidmah, a UAE-based integrated property services companies, taking its total ownership to 100 percent. Abu Dhabi-based Aldar said the acquisition reinforces its commitment to the property management sector and its belief that world class property management is a key source of value creation for real estate owners, in particular the newly-created unit Aldar Investments. "Having 100 percent ownership of Khidmah will enable Aldar to better serve both direct and indirect customers through the seamless integration of customer management between the developer and property/facility manager," a statement cited by state news agency WAM said. Khidmah provides a range of services across property management, facilities management, and consultancy. Talal Al Dhiyebi, CEO, Aldar Properties, said: "We are delighted to complete this acquisition and acquire the remaining 40 percent of Khidmah. Aldar has long been committed to the ongoing success of this business, and this acquisition reinforces that commitment to Khidmah, and most importantly to our valued real estate clients across the UAE and Saudi Arabia." Jassem Saleh Busaibe, chairman of Khidmah, added: "This acquisition by Aldar comes at a time when it has won a number of prestigious contracts, completed several handovers of residential developments, and has an enviable pipeline of opportunities which will continue on ensuring that customer satisfaction is our number one priority. "We look forward to working even closer with our stakeholders to make Khidmah the most successful business of its kind in the region." Earlier this month, Aldar Properties spun off its property investment arm to create the region’s largest diversified real estate investment company with more than $5.4 billion in assets. The new company – Aldar Investment Properties – will take ownership of some of Abu Dhabi’s highest revenue- generating real estate assets, including more than 5,000 residential units and over 500,000 square-metres of prime retail and commercial space, including Yas Mall and the Gate Towers and Arc. Source: Arabian Business Back to Index

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DUBAI'S DEYAAR SET TO LAUNCH NEW BELLA ROSE PROJECT Wednesday, September 26, 2018 Deyaar Development will launch Bella Rose on day one of Cityscape 2018, joining its expanding portfolio of residential and hospitality properties in Dubai. Located in Dubai Science Park, Bella Rose will offer studios, one- and two-bedroom apartments in an 18-storey tower, surrounded by landscaped gardens, and play areas for kids. Unit prices in Bella Rose start from AED449,777 for a studio apartment, Deyaar said in a statement. The tower features an infinity pool, gym, parking for residents and visitors, and 24-hour security, as well as retail stores on the ground level. The project, which is expected to be handed over in 2020, can be booked exclusively at Cityscape with only AED10,000, and a six-year monthly payment plan starting from AED3,750 per month. Saeed Al Qatami, CEO of Deyaar said: “Bella Rose is the ideal complement to our existing portfolio, providing a range of apartment sizes that cater to the needs of Dubai’s growing community. Not only is the project adjacent to a public garden and walking distance to a shopping mall, but it is within easy reach of the Expo 2020 site.” Listed on the Dubai Financial Market, Deyaar is majority-owned by Dubai Islamic Bank. Source: Arabian Business Back to Index

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REVEALED: CASH STILL A KEY PLAYER IN DUBAI PROPERTY DEALS Wednesday, September 26, 2018 Cash continues to play a prominent role in real estate transactions in Dubai, with almost a quarter (22 percent) of buyers wanting to pay cash in full, according to research by Sellanyhome.com. The home buying portal said 57 percent of its buyers want to take recourse to financing, while 13 percent are happy to choose either option. Since the website announced it would open its platform to end users at the start of the year, it said its buyer pool has increased 600 percent and is a "clear signal of how exciting the Dubai real estate market remains". Omar Chihane, CEO and co-founder of Sellanyhome.com, said 49 percent of buyers have a budget of AED1 million and above, while Dubai Land, Dubai Marina, Jumeirah Village Circle, Meydan and Sports City have emerged as the most popular destination for their buyers. “Our data insights, mined from sellers and buyers using SellAnyHome.com, indicate a robust real estate market. Potential buyers are entering the market with healthy budgets. The data also shows that properties large and small, ranging between 1 and 3 bedrooms for instance, are all attracting strong interest," he added. Chihane said that while the majority of registered buyers seem flexible as to the number of bedrooms, 20 percent are looking specifically at 1 beds while 26 percent are preferring 2 and 3 bed properties. At 71 percent, the vast majority of Sellanyhome.com buyers are interested in apartments; with 12 percent preferring villas. Chihane said the website aims to become a one stop shop for home buyers and sellers in the UAE. It allows buyers to book viewings for listed properties and also offers useful tools such as a mortgage calculator and the BorrowMeter that helps buyers determine their borrowing power. Source: Arabian Business Back to Index

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NAKHEEL SAYS TO UNVEIL NEW PROJECTS IN PRIME DUBAI LOCATIONS Wednesday, September 26, 2018 Ali Rashid Lootah, chairman of Nakheel, says the developer will play a major part of the next chapter of Dubai’s real estate success story. Dubai-based master developer Nakheel will launch new projects at prime locations across Dubai at next month's Cityscape Global 2018, the company said on Wednesday. Nakheel said it will unveil a beachfront project at the new Deira Islands waterfront city and a new collection of townhouses – each with a private pool – at the high end Jumeirah Park community. Dragon Towers, Nakheel’s twin-building high-rise apartment complex at Dragon City, on sale from Sunday, will also be showcased, along with a range of other projects across the residential, retail, hospitality and entertainment sectors, the developer said in a statement. Nakheel is also inviting investors to check out an exclusive selection of ready properties at some of Dubai’s most sought-after locations, such as Palm Jumeirah, Jumeirah Islands and Al Furjan. Ready-for-handover homes will come with special offers and attractive payment plans. Nakheel said it has more than AED58 billion worth of projects underway in terms of infrastructure and construction costs, and has awarded construction contracts to the tune of AED7 billion this year, with more to be signed before the end of 2018. The company has nearly 27,500 investors from all over the world, who have collectively spent more than AED117 billion on 42,000 land plots or built-form units since Nakheel started selling properties in 2002. Ali Rashid Lootah, chairman of Nakheel, said: “Our world-famous, established projects such as Palm Jumeirah have played a key role in Dubai’s history by placing the city on the world map, and our upcoming developments, including Deira Islands, will be a major part of the next chapter of Dubai’s real estate success story. “Nakheel continues to develop and deliver a multitude of creative, sustainable projects that will provide new homes, destinations and attractions for Dubai’s growing numbers of residents and tourists. “We are proud to exhibit at Cityscape Global 2018, where we will showcase the latest additions to our ever- expanding collection of unique residential, retail, hospitality and leisure developments that underline our commitment to Dubai’s vision for 2021 – and beyond.” Source: Arabian Business Back to Index

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ENOC OPENS FIVE NEW SOLAR POWERED STATIONS Tuesday, September 25, 2018 The new stations – all solar powered – are located in Hatta, Oud Muteena, two stations on the Dubai-Al Ain Road and one in the City of Arabia, which the company said were designed to serve newly established residential communities and remote locations. The opening of five new ENOC service stations in Dubai has expanded its network to 122 stations throughout the country as it works towards increasing its fuel retail presence by 40 percent by 2020, the company announced on Sunday. The new stations – all solar powered – are located in Hatta, Oud Muteena, two stations on the Dubai-Al Ain Road and one in the City of Arabia, which the company said were designed to serve newly established residential communities and remote locations. “We successfully opened eight service stations this year, and as the official integrated energy partner for Expo 2020, we are on track to expand our service station network by 40 percent by 2020, to accommodate the anticipated 25 million visitors for Expo 2020,” said ENOC Group CEO Saif Humaid Al Falasi. The five most recently opened service stations are built in compliance with Dubai Municipality’s ‘green build’ regulations, with the excess power generated from the solar PV panels installed at the roof of the canopy at each station transmitted to the main DEWA grid. The solar panels have the capacity to generate an average of 120 Kilowatt per hour (kWh) on an ideal day, approximately 30 percent more than the average energy required to run a station. Additionally, all five stations will include electric vehicle charging stations operated by DEWA as well as a ZOOM convenience store, Pronto, a variety of F&B offerings and AutoPro. According to ENOC, more than 23 GWh of solar energy will be generated to power new stations by 2020. It currently has six solar power service stations. Source: Arabian Business Back to Index

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MAKKAH TO MEDINA IN 90 MINUTES: SAUDI KING LAUNCHES NEW HARAMAIN RAIL SERVICE Wednesday, September 26, 2018 King Salman bin Abdulaziz declared, in a ceremony held in the Saudi city of Jeddah, that the service has formally begun and boarded one of the new trains for the inaugural trip between Jeddah and Medina. The Saudi king inaugurated a high-speed rail line connecting the holy cities of Makkah and Medina on Tuesday. King Salman bin Abdulaziz declared, in a ceremony held in the Saudi city of Jeddah, that the service has formally begun and boarded one of the new trains for the inaugural trip between Jeddah and Medina, a spokesman for the construction consortium told Efe news agency. "We thank Allah for the growth and prosperity in all fields in our country, and we thank Allah Almighty for His grace. Thank you," the king said, according to the Saudi official news agency SPA. Initially, the routes of the line will be limited and eight daily trips will be offered between Makkah and Medina for four days a week (Thursday, Friday, Saturday and Sunday). The 450 km Haramain rail line connects Makkah, Jeddah, King Abdulaziz International Airport, King Abdullah Economic City in Rabigh and Medina. A consortium including 12 Spanish firms along with two Saudi firms has been tasked with building the second phase of the project. "This inauguration is a milestone for Spanish engineering, which has demonstrated the ability of our companies and engineers to build a high-speed train under extreme weather conditions," Iranzo said, according to a statement from the consortium. The inauguration was attended by Crown Prince Mohammad Bin Salman and other Saudi officials, as well as by Spain's ambassador to Saudi Arabia, Alvaro Iranzo, and the president of the High Speed Spanish Consortium, Jorge Segrelles, among others. Bashar Al Malik, executive director of the Saudi railway company, told EFE that the actual start of service will begin on October 4. He pointed out that the commercial operation of the line will begin within nine days, but without giving more details. Al Malik said he expects the high speed line to overcome the difficulties and obstacles that have caused its delay, mainly due to sandstorms. The Spanish consortium said in a statement that tickets will be able to be reserved "in the coming weeks." Regular trains will start operating on the line from next month between the stations of Makkah Al Mukarramah, Madinah, Sulaymaniyah in Jeddah and King Abdullah Economic City, while trains to Jeddah's King Abdulaziz International Airport will begin around mid-2019.

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The line is aimed at doubling the number of visitors and pilgrims to the holy cities and is in line with Saudi Arabia's development plan, Vision 2030, which aims to expand the economy and reduce its dependence on oil.

With a fleet of 35 trains, carrying up to 417 people each, the service is expected to ferry around 60 million passengers yearly. The trains will cover the distance between Makkah and Medina in under two hours, less than half the time that it takes to cover the same distance by road. Source: Arabian Business Back to Index

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DUBAI DEVELOPER OFFERS BUYER OPTIONS FOR ANY JOB LOSS Wednesday, September 26, 2018 Want to make a property purchase but worried whether you can keep up with the payments because of a sudden change in the job status? A developer in Dubai wants to ease any such concerns of prospective buyers with an exit scheme. The way it works is fairly straight-forward — those buying off-plan into the “SunCity” project at International City can make use of two exit options. One where they get to stay in their apartment for up to three years once the project is completed and units handed over in 2020. They will not need to pay any rents during this period because the downpayments they made up to that point will be counted as rent. “There is a bit of uncertainty in the job marketplace, which is why some potential end-users may not want to commit to property purchases now,” said Sailesh Israni of Sunn & Sand Developers, which has completed mid-rise projects in Silicon Oasis and Industrial City. “Through this exit option, the buyers will not have to worry about continuing their payments if something suddenly happens on the job side and they still want to remain Dubai. Buyers can make an exit from their payment obligations for genuine reasons.” The second exit option kicks in when they can reclaim part of the downpayments made until the time of handover. To put this into effect, the property will be rented out directly by the developer and the funds received will then be passed on to the buyer over a three-year term. (This will be minus the service charges.) According to Israni, “As a developer we are willing to compensate the buyer up to a sizeable percentage of his/her down payment if he wishes to stop his commitments for verifiable reasons. What we are trying to do is assure buyers that we are covering most of their risks.” (As per the current law, if a developer has completed more than 80 per cent of a project, he needs to pay back only 40 per cent of the sale value.) Local developers are gradually moving away from thinking of stretched post-handover payment plans as the only way to sell in this market. Right through 2017, it did seem as if this was the only to sustain off-plan sales. But it had come to a situation where even first-time developers were willing to extend post-handover terms to well over seven years. Thankfully, this over-emphasis on post-handover plans has eased up considerably this year. Instead, those developers who can afford to do so are offering more immediate cost incentives. Developers have been offering waivers/discounts on registration charges, while Damac has one campaign where it promises no service charges for a 10-year stretch at one of its projects. Clearly, the market is getting serious about what it has to offer and the promotions that go along with them. Source: Gulf News Back to Index

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WH Y DUBAI DEVELOPERS NEED TO PICK UP THEIR PACE ON PROJECTS Wednesday, September 26, 2018 Dubai’s developers just aren’t pushing ahead with their projects fast enough - only about 16,750 new homes will get delivered this year. That compares with forecasts of 30,000 units made at the start of the year and only a slight improvement on the 15,000 actually delivered last year, according to estimates by Asteco. So, many property buyers who were expecting to get the keys before the end of the year will now delay moving in or renting out their new homes until some time next year. Either way, it means they have a cost to bear. According to John Stevens, Managing Director of Asteco, the reasons are straight-forward. “Lower than anticipated handovers are the result of project delays and overly ambitious handover programmes. It is in the best interest of developers to deliver as scheduled as payments are generally linked to construction milestones with the bulk of the money often due on or post-handover.” (Asteco defines completion as those projects where the handover process has been initiated or the units are available for lease in the open market.) In the year to now, about 12,000 homes have been delivered, according to Asteco. Developers too may be missing out through these project delays. More buyers are opting for ready or soon-to-be-ready properties rather than go with offplan and then wait around a further three to four years to take possession. Some developers who held back sales until completion have been doing exceptionally well… and that too in an extremely tight market situation where buyers are showing extra caution when it comes to entering into transactions. But Stevens does not see this as ready properties winning over offplan. “There has been emphasis on completed properties - but this is predominantly due to a lack of new project launches,” he added. “Developers entice customers with incentives and flexible payment plans, while secondary market sales are often the result of discounted sales prices and/or great offers. “Phasing of large-scale projects may be considered to avoid flooding the market, though more often than not, this phasing is not intentional but due to capacity restrictions.” Whatever be the case, by year-end, demand for ready properties in Dubai stands a good chance of beating last year’s tally, while offplan will continue to lag significantly. On the rental side, there is still a lot of pressure. Average apartment rents in Dubai were down 3 per cent from the second quarter, and compared to what they were a year ago, they are down 11 per cent. For instance, Asteco reckons that a studio in Business Bay is now asking for between Dh45,000-Dh65,000 after a 10 per cent dip in the last 12 months. At Dubai Marina, a similar unit would have a wider range - between Dh40,000-Dh80,000 after an 8 per cent average decline. At Deira, a studio could command Dh20,000-Dh45,000 after factoring in a 12 per cent dip year-on-year.

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“Wider economic uncertainties resulted in many residents downsizing, or to seek value-for-money properties in less established areas,” the report states. “Rental rates are expected to come under further pressure this year, a trend that is likely to spill over into early 2019.” The pressure on apartment rents is equally visible in Sharjah as well. On a year-to-year basis, rents are down by 9 per cent on average at all of the key residential areas, with a studio in Al Nahda being available at Dh18,000- Dh25,000, at Dh18,000-Dh28,000 in Al Khan, and Dh20,000-Dh28,000 on the Corniche.

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And simlutaneously, new supply is being built in Sharjah. “As a result of the rise in masterplan communities and large-scale developments, concerns in regards to a marked future oversupply situation are starting to emerge,” the Asteco report adds. “Particularly as increasing supply and declining rates in Dubai generally encourage tenant movement to the neighbouring emirate. “However, it is yet to be seen how well (or not) the new inventory will be absorbed. In the meantime, further pressure on rental rates is to be expected.” Abu Dhabi could see another 3,000 units delivered before year-end The islands - Reem, Yas and Saadiyat - should account for 2,000 of the 3,100 new residential units due for handover in Abu Dhabi before the year is out. In Q3-18, the total handovers would come to about 2,150 units. The other area that will more handover action in the next six to 12 months is Rawdhat district. Source: Gulf News Back to Index

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CALLS FOR LOWER LOAN-TO-VALUE RATIOS TO SPUR REALTY IN THE UAE Wednesday, September 26, 2018 The property landscape in the UAE will get a much-needed stimulus if the Central Bank of the UAE lowers existing loan-to-value (LTV) ratios to facilitate home ownership for those unable to afford the current mortgage deposit requirements, according to experts. Real estate professionals and participants have been increasingly vocal in urging the central bank to take up the initiative amid signs of a slowdown in the property market across most asset classes, according to a report released by Asteco. The realty sector has welcomed the introduction of new initiatives, such as rent-to-own schemes and crowd funding. "We believe these developments have the potential to absorb some of the pent-up demand from end users and first-time buyers," said John Stevens, managing director of Asteco. A. Najeeb, a senior executive of M.S. International Real Estate, said the property market needed more stimuli to get out of the slow down. "A string of bold reforms announced by the government over the past few months will certainly invigorate the property market. The long-term residency rules in favour of property investors will help ignite a revival in global investor flow into the UAE real estate market. We hope the scenario will change for the better within a matter of months." In Dubai, the market has seen a substantial delay in project handovers, mainly resulting from project delays and overly ambitious handover schedules, according to a just-released Asteco survey. A sizeable number of units previously forecasted for completion in first half 2018, will only be ready in 2019. Dubai's new inventory added in third quarter 2018 comprises 3,850 apartments and 570 villas and townhouses, bringing the total for the year to date to just over 12,000 residences, with projections for the final quarter in line with these figures, according to the UAE Real Estate Report Q3 2018 report from Asteco. Across the UAE, rental rates and sale prices of commercial and residential properties dipped in the third quarter, said the report In Dubai, villa and apartment rental rates dropped by three and two per cent respectively since the second quarter, "maintaining the downward trajectory" observed over the past quarters. The decline of residential sales prices has been more pronounced at four per cent. Office rental rates also declined five per cent in the third quarter following a period of relative stability as a result of new supply and limited, if not negative, business and employment growth. The report noted that in Dubai neighbourhoods with high handover volumes, both within the city as well as across surrounding developments, recorded the sharpest rental rate downturn and a significant rise in tenant turnover. Stevens said rental rates across all asset classes are expected to come under further pressure this year, and this trend is likely to spill over into early-2019. However, some property analysts are optimistic that the real estate sector would be a fillip following a series of residence visa reforms introduced by the government.

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In Abu Dhabi, apartment sales prices witnessed a marginal decline of one per cent over the third quarter of 2018, mainly due to the limited demand for completed units available within the secondary market, translating into low transactional volumes. "However, off-plan and newly completed properties fared better and continued to generate interest," said the report released just ahead of Cityscape Global. While apartment rental rates in Abu Dhabi fell by an average of three per cent, with the highest drop reported for mid- and lower-end properties, villa rental rates followed a similar trend with a quarterly decrease of one per cent. The demand for office space remained limited. While the average rental rates softened by one per cent over the last three months, some mid- to low-end commercial buildings recorded significant annual declines of up to 10 per cent. In Al Ain, the overall subdued market activity has resulted in relatively static rental rates in third quarter 2018 across most asset classes, with moderate annual drops of six per cent for apartments, and five per cent for office and retail rents. In the Northern Emirates, apartment rental rates reported an average quarterly decline of four per cent, with Ras Al Khaimah and Ajman taking the lead with 6 per cent, followed by Sharjah and Fujairah with three per cent, while Umm Al Quwain rates softened marginally by one per cent. In Sharjah, office rental rates continued their downward trend with quarterly and annual reductions of three per cent and eight per cent on the back of low demand. Source: Khaleej Times Back to Index

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NOW START BUSINESS REMOTELY IN DUBAI Thursday, September 27, 2018 The initiative is to attract sustainable foreign investment in line with the goals of the Dubai Plan 2021. Investors from across the world will now be able to start their business in Dubai without being present in the UAE following a new initiative undertaken by Dubai Investment Development Agency (Dubai FDI) in collaboration with the US-based Alliance Business Centres Network (ABCN). In what is billed as another world's first, Dubai thus becomes the only city on the planet to enable investors start business from remote locations, Dubai FDI, an agency of Dubai's Department of Economic Development, said in a statement. Dubai FDI-ABCN partnership will enable investors overseas to use a network of 650 business centres spread across 85 cities in 45 countries to set up business in Dubai. "The initiative is part of Dubai FDI's continuing efforts to attract sustainable foreign investment in line with the goals of the Dubai Plan 2021 and promote the emirate as a competitive destination to do business," said the statement. Fahad Al Gergawi, CEO of Dubai FDI, said the new initiative is in line with Dubai's objectives to reach out to international investors and companies, remove hurdles for those looking to benefit from investment opportunities and economic development in Dubai, and sustain economic growth. "Dubai's strategy, supported by free and open economies policies and competitiveness, allows companies to benefit from the movement of goods to various regional and international markets, which is positively reflected on the promotion of global trade," said Al Gergawi. Suresh Kumar, president of the Indian Business and Professional Council Dubai, said the new initiative by Dubai FDI is yet another exemplary instance of how Smart Dubai drive is transforming the way of doing business. "As another world's first, these kind of innovative measures will go a long way in reinforcing Dubai's status as sought- after global investor destination," said Kumar. "The new scheme is trail-blazing and will further enhance Dubai's international image as a pro-business and investor-friendly place. It will increase Dubai's competitiveness and help drastically improve the ease of doing business ranking," said MAK Harid, managing director, Paradigm Investment Services. The new measure is the latest in a string of bold reforms and steps taken over the past few months by Dubai to boost investor confidence and business environment. Dubai FDI said it seeks to attract international companies to Dubai and enable them grow and expand their business by leveraging a full range of professional services provided by ABCN. "The partnership comes at a time when global investors and major multinationals are looking to capitalise on the prospects in Dubai, including its vibrant lifestyle, modern facilities, cultural diversity and openness, in addition to the highly competitive business environment," the statement said. "Dubai FDI continues to develop strategies that would enhance Dubai's appeal as a global investment haven. The agreement with Alliance Business Centres provides a new channel to attract foreign investments towards achieving economic growth and sustainability in Dubai and the UAE in general," said Al Gergawi.

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He said those seeking to know more about the business rules and regulations in various sectors in Dubai will find the required support as a result of this agreement. "It will also allow investors and business owners to be updated on economic activity, opportunities and expansion potential in Dubai," said Al Gergawi. Known to be the largest global network of serviced offices, Alliance Business Centres is also one of the leading providers of investor and corporate services for more than 50,000 clients and manages 15 million square-foot of serviced offices worldwide. "The network will particularly cover GCC countries such as Saudi Arabia, Bahrain and Kuwait, in view of the close relationship between these countries and Dubai and the importance accorded to regional co-operation in the vision and directives of the UAE leadership," said Al Gergawi. He also underscored Dubai FDI's efforts to boost public-private partnerships and reinforce the role of global investment in economic development, as reflected in the agreement with ABCN. Sherif Kamel, regional president, ABCN in RMEA, said the strategic partnership would further stimulate economic activity, attracting new investors to capitalise on the opportunities in Dubai, which is emerging as a preferred global investment destination. "Dubai has a solid economic foundation, based on advanced legislations that allow it to keep pace with rapid global changes. The emirate has developed clear policies and laws that serve its goals in attracting investments, facilitating business and offering an integrated package of innovative services that support business growth and expansion." "We are committed to developing our global network to serve the needs of investors and help Dubai FDI deliver innovative and reliable services that meet the expectations of global investors who want to grow and expand their business locally and regionally through Dubai," said Kamel. ABCN's service centres around the world offer solutions and important information about the various economic sectors in Dubai, in addition to facilitating constant communication and follow-up to ensure uninterrupted processes, Kamel said. The agreement seeks to build on the growing interest in Dubai and the UAE worldwide as a growing number of multinational companies are attracted by the UAE's political and economic stability, rapid population and economic growth, and efficient and fast-growing capital markets. Source: Khaleej Times Back to Index

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MIRAL INVITES PRIVATE SECTOR DEVELOPERS TO INVEST IN PROJECTS ON YAS ISLAND Saturday, September 29, 2018 Cyclists at Yas Circuit. Abu Dhabi's Miral is putting up land plots for sale on Yas Island, as it continues to transform the island into a destination for business and tourism. Getty Cyclists at Yas Circuit. Abu Dhabi's Miral is putting up land plots for sale on Yas Island, as it continues to transform the island into a destination for business and tourism. Getty Abu Dhabi developer Miral is putting up ready-for-development land plots for sale on Yas Island, as it continues to transform the island into a destination for business and tourism. The land plots, which include 35 residential building lots, two retail plots and two dedicated for building schools, are part of Yas Bay development, a 14 million square foot, mixed-used project by Miral on the southern end of the island, Miral said in a statement on Saturday. Yas Bay, which will be home to the relocated media hub twofour54, also features Yas Bay Residences, where the plots are located. Once fully developed, the residential district will also have 20 recreational parks, three mosques and schools, and aims to welcome 15,000 residents and 10,000 professionals to the island, Miral said. “As creators of Yas Island, we are offering third-party developers an opportunity to invest in this prime area of Abu Dhabi which benefits from being a globally recognised, world-class destination drawing millions of visits from all over the world,” Mohamed Al Zaabi, the chief executive of Miral, said. “The available land plots are part of an attractive concept for a mixed-use neighbourhood which is integrated with Yas Island’s existing world-class infrastructure.” Miral, which is responsible for several developments on Yas Island such as Warner Bros World, aims to attract 48 million visits to the destination by 2022. It is investing Dh4 billion in the Dh12bn master plan to develop the waterfront entertainment and leisure district. The company is now opening opportunities to invest in business and residential assets at Yas Bay, which it says will complement the Yas Island’s existing attractions. Adjacent to Yas Bay Residences will be Yas Bay Waterfront, representing the island’s new entertainment and leisure district which includes Yas Arena of 18,000 capacity, a cinema, family entertainment centre, beach club and two hotels including a Hilton family resort, the company said. Source: The National Back to Index

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HIGH -END DUBAI COMMUNITIES ARE TRENDING, ACCORDING TO DUBIZZLE Saturday, September 29, 2018 Upscale Dubai Marina and Downtown Dubai are among the top-five most searched apartment communities for buyers in 2018 as softening prices, particularly in prime neighbourhoods, entice potential investors. Jumeirah Lake Towers, Jumeirah Village Circle and Business Bay are the other three areas included in the five most-searched communities for Dubai apartments for sale as real estate asking prices on average in these five communities fell 8 per cent year-on-year, classifieds portal Dubizzle said in a report released Saturday. The Villa, The Akoya Oxygen, and Mudon were the top-searched villa for sale communities in Dubai, along with more established upmarket communities such as Arabian Ranches and Palm Jumeirah, Dubizzle said. “Overall, we have seen a substantial increase in users searching for properties for sale in 2018 year-to-date…as the softening real estate market continues to provide an investment opportunity that was not always available to many,” Samer Abdin, general manager of Dubizzle Property, said. “Our data highlights this is a particular trend in the prime areas such as Palm Jumeirah, which was not even amongst the top-five searched communities in 2017.” The UAE property market slowed down during the three-year oil slump, which led to cutbacks in government and consumer spending and affected sales and rental prices. With the market forecast to decline further in 2018, albeit at a slower pace, the government has sought to encourage investment. The launch of the real estate self-transaction portal by the Dubai Land Department slated for completion in 2020, as well as the introduction of eMortgages, will make transacting faster and easier on end-users while policy reforms such as the retirement visa initiative will also drive demand for properties and lure further investment to UAE, Mr Abdin noted. In terms of apartments, Dubai Marina accounted for 36 per cent of searches, Jumeirah Lake Towers for 21 per cent and Jumeirah Village Circle for 17 per cent. Downtown Dubai made up 13 per cent of total searches while Business Bay counted 12 per cent of apartment searches. Expat and investor favourite Dubai Marina remained relatively unchanged, with prices dropping an average of 1 per cent across one-to three-bedroom apartments in the area. The demand for three-bed apartments, however, pushed the asking sale price up by 5 per cent to Dh1,647 per square feet as of third quarter of 2018. However, one-bedroom and two-bedroom apartments in the same area saw a decrease of 3 per cent and 4 per cent respectively, according to the report. Downtown Dubai remains the highest valued area for apartments, with an average asking price of Dh2,088 per square foot. However, asking prices declined an average 12 per cent year-on-year across one-to three-bedroom apartments. Jumeirah Lakes Towers also experienced an average of 12 per cent decrease in asking sale price, while Jumeirah Village Circle and Business Bay experienced a decline of 6 per cent and 10 per cent respectively. Dubizzle Property, which has over 130,000 listings at any given time and registers over 100,000 daily visits, said The Villa was the most-searched development for villas for sale accounting for 23 per cent of total searches, with Arabian Ranches, the Palm Jumeirah, Akoya Oxygen and Mudon making up 21, 20, 18 and 17 per cent, respectively.

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The Palm Jumeirah moved into the top 5 searched villa communities in 2018, reflecting a trend that softening purchase prices are encouraging residents to consider higher-end communities as they become more affordable.

The new development in Dubailand, Mudon, also entered the top searched communities this year, signifying the effect of off-plan developments on boosting the real estate market, according to the Dubizzle report. Source: The National Back to Index

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HONG KONG MOST AT RISK OF A PROPERTY BUBBLE, SAYS UBS Thursday, September 27, 2018 Hong Kong is the most overvalued housing market this year with significant price bubbles also found in the majority of the world's developed financial centres, a new study from the Swiss Bank UBS found. The bubble risk appears greatest in six global cities with Hong Kong the most vulnerable, followed by Munich, Toronto, Vancouver, Amsterdam and London according to the UBS Global Real Estate Bubble Index 2018. Major imbalances are also found in 10 other locations including Stockholm, Paris, San Francisco, Frankfurt and Sydney. "Although many financial centres remain at risk of a housing bubble, we should not compare today's situation with pre-crisis conditions," said Mark Haefele, chief investment officer at UBS Global Wealth Management in a statement on Thursday. "Nevertheless, investors should remain selective within housing markets in bubble risk territory such as Hong Kong, Toronto, and London." Valuations are also stretched in Los Angeles, Zurich, Tokyo, Geneva and New York, however, property markets in Boston, Singapore and Milan appear fairly valued while Chicago is undervalued. While prices are not rising as fast as in prior years, affordability remains a key concern. Housing prices in major cities have increased by 35 per cent on average over the past five years, according to the report. Despite the explosive upwards swing seen in the largest Eurozone economic centres, as well as in Hong Kong and Vancouver in recent years, cracks have begun appearing. In the past year, the house price boom seen in key cities has lost its intensity and scope, UBS found. Inflation- adjusted city prices increased by 3.5 per cent on average over the last four quarters, considerably less than in previous years but still above the 10-year average. House prices declined in half of last year’s bubble risk cities, in London, Stockholm and Sydney by more than 5 per cent in real terms. "The median total return on housing in the most important developed market financial centres was 10 per cent annually over the past five years, accounting for an imputed rental income and book profits from rising prices," said Claudio Saputelli, head of real estate at UBS Global Wealth Management's Chief Investment Officer. "How appealing returns will be in the next few years is questionable. We recommend caution when buying residential real estate in most of the biggest developed market cities." Source: The National Back to Index

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QATAR MOST AT RISK GLOBALLY FROM RATINGS DOWNGRADE, SAYS S&P Thursday, September 27, 2018 Qatar is the country at the highest risk of having its ratings outlook downgraded, as it continues to feel the impact of a boycott by Arab nations, including the UAE and Saudi Arabia, according to S&P Global Ratings. “Global downgrade risk remains muted, but Qatar leads with an elevated negative bias of 75 per cent,” the ratings agency said in a report. This compares to 16 per cent for the US, which is “relatively low”, the report said. The high negative bias owes to S&P’s negative outlook on the sovereign (currently rated AA-), after Saudi Arabia, the UAE, Bahrain, Egypt, Libya and Yemen cut diplomatic ties, as well as trade and transport links, with Qatar on June 5 last year, S&P added. “These ongoing diplomatic tensions should continue to pressure Qatar’s economic, fiscal and external metrics, especially if the boycott is tightened or prolonged,” the rating agency said. The boycott has disrupted Qatar’s imports and led to the withdrawal of billions of dollars from Qatari banks by depositors from the four states. The damaging impact on the economy prompted the country to dip into its estimated $300 billion-plus sovereign wealth fund to protect its banks. S&P’s negative outlook on Qatar has created a knock-on effect too and issuers with ratings tied to the sovereign have a negative outlook as well, “leading to the inflated negative bias”. Qatar in April issued a $12 billion conventional bond. However, the total volume of islamic bonds, or sukuk, issued by the state in both local and foreign currency has plummeted 50 per cent to $2.6bn so far this year, from $5.5bn in 2016, according to a report by S&P Global Ratings earlier this week. The boycott means Qatari issuers can no longer rely on demand from regional Islamic investors, banks and other institutions in need of high-grade sharia-compliant bonds to meet liquidity standards, the report said. Overall, the issuance of Sharia-compliant bonds in the Arabian Gulf has slowed by around 15 per cent in the first three quarters of this year and is likely to remain lower than $95.9bn in 2017 on the back of tightening international liquidity and rising borrowing costs as the US Federal Reserve hikes interest rates, the S&P report said this week. Source: The National Back to Index

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SAUDI ARABIA COURTS UBER-LUX TRAVELLERS WITH RED SEA PROJECT Thursday, September 27, 2018 Saudi Arabia’s Public Investment Fund is launching an uber-luxury project for international tourists, adding another mega development to the list of projects the sovereign wealth fund is planning for the Red Sea coast. The fund will provide the initial funding for Amaala and has appointed hospitality industry veteran Nicholas Naples as the chief executive of the project, PIF said in a statement on Wednesday. As the project progresses, "attractive partnership and investment packages will be available for the private sector", PIF said, without specifying either the total cost of the development or the partnerships it will offer to the private investors. “Our concept will provide a rich service offering that exceeds customers’ expectations by providing a comprehensive suite of services not commonly found in one location that is unique by all measures,” Mr Naples said. “The Amaala experience will be enhanced by its setting, spread across untouched natural sites.” PIF, the kingdom’s main investment arm which holds stakes in local and international companies such as electric car maker Tesla, is central to Riyadh’s economic diversification agenda. The fund, which manages $250bn of assets, is building Neom, a $500bn (Dh1.8 trillion) futuristic business and industrial city, which extends into Egypt and Jordan. PIF's other development called The Red Sea Project includes a nature reserve and heritage sites on about 50 islands. Amaala will sit alongside Neom and the Red Sea Project within the Prince Mohammed bin Salman Natural Reserve, helping to establish a unique tourism ecosystem, PIF said. The development will add 2,500 hotel rooms to the kingdom’s growing hotel sector and will feature 700 private residential villas along with a retail area with 200 outlets. Amaala will also feature an academy of the arts that aims to further develop young artists from Saudi Arabia and the broader region. The 3,000 square kilometre development, which will be spread across the three sites, will have its own airport and target the top tier of global luxury travellers, PIF said. “As envisioned in Vision 2030, Amaala – along with the other giga-projects - will support the diversification of Saudi Arabia’s leisure and tourism industry, while promoting cultural conservation, ecological preservation and sustainability,” PIF said. Besides the three Read Sea projects, PIF is also developing Qiddiya, a vast entertainment resort being built on a 334 square kilometre site, a parcel two-and-a-half times the size of Disney World. The project is an hour’s drive from capital Riyadh and will include a Six Flags theme park, water parks, motor sports, cultural events and vacation homes. It is expected to attract 1.5 million visitors annually when the first phase opens in 2022. Source: The National Back to Index

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UNION PROPERTIES COMPLETES HANDOVER OF NEW DUBAI PROJECT Saturday, September 29, 2018 Union Properties, the UAE real estate developer, has completed the handover of its latest project, OIA Residences at Dubai Motor City. Developed at the cost of AED450 million, the project includes 269 residential units ranging from one- to four- bedroom apartments and duplexes, now available for lease. Ahmed Yousef Khouri, board member of Union Properties, said: “OIA Residences is a testament to our renewed strategic vision of enhancing the quality of residential units and retail projects in the local market, and ensuring greater value for residents and clients. "The project handover paves the way for Dubai Motor City Phase 2 and subsequent further growth of the neighbourhood, establishing the rapidly emergent development as a premier lifestyle destination, entertainment hub and business centre in Dubai.” The project, located in the heart of Dubai Motor City, is inspired by modern Greek aesthetics and evokes the beauty of European islands, he added. Facilities include outdoor swimming pools, a gym, a squash court, and jogging trails plus community retail centres, cafés, restaurants, and open spaces. Source: Arabian Business Back to Index

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AVERAGE DUBAI PROPERTY PRICES SAID TO DROP 3% IN Q3 Saturday, September 29, 2018 Average property prices in Dubai fell by nearly 3 percent in the third quarter of 2018 compared to the previous quarter, according to a new report from consulting firm ValuStrat. The report said the continued downward trend resulted in citywide capital values falling by 22.3 percent since the peak of mid-2014. ValuStrat said quarterly declines of more than 4 percent were registered in Jumeirah Islands, Business Bay, Palm Jumeirah (apartments), and Discovery Gardens while values for villas in Palm Jumeirah and Al Furjan remained mostly flat as compared to Q2. All established freehold locations monitored by ValuStrat witnessed price drops since the last quarter, ranging from 0.2 percent to 5 percent, it added. The report also showed that established areas that witnessed substantial off-plan sale transactions during the last three months included Downtown Dubai at 85 percent of off-plan sales, Business Bay at 84 percent and Remraam 75 percent. Average ticket prices for off-plan homes fell 3.8 percent on a quarterly basis, while ready property ticket sizes jumped 9.5 percent on the same basis, suggesting improved interest in prime properties, ValuStrat noted. “Our research has shown that this quarter saw increased investor focus on ready-to-move-in apartments and villas priced between AED3 million and AED5 million causing the average ticket size to jump,” said Haider Tuaima, head of research at ValuStrat. The report noted that an estimated 12,332 apartments and villas, 27 percent of the total supply as expected at the start of 2018, have been completed so far this year. ValuStrat also revealed that overall residential asking rents fell 11 percent in the past year and 5.1 percent since Q2. Source: Arabian Business Back to Index

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DUBAI'S SWAROVSKI-INSPIRED TOWERS NEAR COMPLETION Friday, September 28, 2018 The multi-tower luxury waterfront project Sparkle Towers with spaces created by Swarovski will be completed "shortly". Sparkle Towers, a residential project being built in Dubai Marina in a deal with crystal giant Swarovski, is nearing completion, according to project advisors. Recently-founded Devmark, a business created with the core aim of driving developer’s bottom line and optimizing return on investment, said it has been appointed for strategic advisory services on the project. The multi-tower luxury waterfront project with spaces created by Swarovski will be completed "shortly" and will be launched by sales and marketing partner Engel & Völkers at Cityscape Global on October 2. Construction of Sparkle Towers was initally expected to be completed by December 2016. Branded as "space marveled by Swarovski", the ultra-luxurious resort-style residential project will feature "exquisite crystal-themed innovations" including sparkling lighting solutions and crystal interiors, according to a previous press release. The lifestyle on offer at Sparkle Towers includes resort-style services such as valet parking, concierge, housekeeping services, Swarovski designed Crystal Lounge, kids and family friendly garden, play area, swimming and splash pools, leisure facilities, a female-only health club and swimming pool. With careers panning some of Dubai’s largest brands, Sean McCauley and Richard Aybar have joined forces to launch Devmark. “We founded Devmark to deliver against client full value chains, from project conceptualization to the final sales process, providing intelligent, strategic and results-driven solutions fused with deep expertise,” said CEO McCauley. The company offers a full suite of strategic services from, development advisory and research, sales strategy conceptualization, marketing and launch strategy, Devmark is truly innovating and transforming how developers access talent, strategic sales advice and exceptional marketing execution in the UAE. Source: Arabian Business Back to Index

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DEVELOPER SAYS $109M HOMES SOLD IN MAG EYE PROJECT IN DUBAI Friday, September 28, 2018 MAG Lifestyle Development (MAG LD) has announced that 600 units worth AED400 million ($109 million) have been sold in its MAG Eye project in Dubai. The developer said studios and two and three-bedroom townhouses have already been sold in the AED 4.7 billion project which is the only fully gated townhouse and apartment community in Meydan District 7. The development features a total of 4,292 studios, one, and two-bedroom apartments, and 694 two, three, and four-bedroom townhouses. Talal Moafaq Al Gaddah, CEO of MAG LD, said: “We are thrilled with the heightened interest that MAG Eye, our iconic residential property in Meydan, Dubai has received.” MAG Eye residents will also benefit from 4,800 square metres of public facilities, including a private clinic, nursery, and mosque, around 5,000 square metres of retail space, and 84,211 square metres of public parks and green areas, complete with a jogging and bicycle track. Source: Arabian Business Back to Index

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DUBAI PROPERTY PRICES, RENTS CONTINUE TO FALL IN Q3 Thursday, September 27, 2018 Dubai villa and apartment rental rates maintained a downward trajectory during the third quarter of 2018, reflecting a trend observed over the past quarters, a new report by Asteco has revealed. Rents decreased by 3 percent and 2 percent respectively since Q2 while the decline of residential sales prices has been more pronounced at 4 percent, its UAE Real Estate Report Q3 2018 said. It added that following a period of relative stability, office rental rates decreased 5 percent over the last three months as a result of new supply and limited, if not negative, business and employment growth. Neighbourhoods with high handover volumes, both within the city as well as across surrounding developments, recorded the sharpest rental rate downturn and a significant rise in tenant turnover, the report noted. Asteco added that the Dubai market has seen a substantial delay in project handovers, mainly resulting from project delays and overly ambitious handover schedules. Therefore, a sizeable number of units previously forecasted for completion in H2, will only be ready in 2019. John Stevens, managing director of Asteco, said: “Rental rates across all asset classes are expected to come under further pressure this year, and this trend is likely to spill over into early 2019.” In Abu Dhabi, apartment sales prices witnessed a marginal decline of 1 percent during Q3, mainly due to the limited demand for completed units available within the secondary market, translating into low transactional volumes. However, off-plan and newly completed properties fared better and continued to generate interest. Apartment rental rates fell by an average of 3 percent since Q2, with the highest drop reported for mid- and lower-end properties while villa rental rates followed a similar trend with a quarterly decrease of 1 percent. Stevens said: “Residential rents continued to soften over the third quarter due to new supply and reduced levels of demand, largely attributed to a bearish business outlook. These conditions led to an increase in vacancies, particularly in buildings with lower-quality specifications.” Source: Arabian Business Back to Index

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JUST CAVALLI - LUXURY VILLAS FROM DAMAC Wednesday, September 26, 2018 Experience a glamorous lifestyle in luxury villas with interiors by Just Cavalli. Begin your journey at an acclaimed master development, where you will discover an exclusive community specially designed for the Just Cavalli Villas. Pass through the striking, entranceway and be instantly transported into an exotic, colourful world created for a select few. Here, choose from a collection of masterpieces that surpass expectations. The unorthodox style of the Just Cavalli Villas embody the brand’s daring approach to design, creating unique and iconic spaces. The earthy patterns used indoors complement the lush green outdoors, sending you to the heart of nature in a seamless and effortless manner. Boasting unique features and world-class amenities such as a rooftop garden, an exclusive Just Cavalli Gym and a luxurious spa and wellness centre, these stylish homes offer an ideal environment for relaxation, entertainment and play. With booking prices starting from just AED 94,500, the Just Cavalli Villas are perfect for those who love to challenge the ordinary. Source: Arabian Business Back to Index

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DUBAI'S DEYAAR HIRES CONTRACTOR FOR NEW BELLA ROSE PROJECT Saturday, September 29, 2018 Deyaar Development said on Saturday it has appointed Condor Building Contracting as the main contractor for its recently launched residential project, Bella Rose, in Dubai. As part of the 26-month contract, Condor Building Contracting has already begun construction works to deliver the 18-storey development in Dubai Science Park by December 2020. Surrounded by a public garden and children’s play areas, Bella Rose will offer studios, one- and two-bedroom apartments, the developer said in a statement. Khalid Ababneh, vice president for Project & Commercial at Deyaar, said: “The appointment announcement of Condor Building Contracting comes just days after the project’s launch, showing Deyaar’s commitment to meeting the growing demand for high quality residential solutions and modern design.” During Cityscape Global 2018, Deyaar will offer an exclusive campaign to book Bella Rose units with only AED10,000, and a six-year monthly payment plan starting from AED3,750 per month. Unit prices in Bella Rose start from AED449,777 for a studio apartment. Bella Rose also features an infinity pool, gym, parking for residents and visitors, and 24-hour security, as well as retail stores on the ground level. Source: Arabian Business Back to Index

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DUBAI'S DEYAAR REVEALS PROGRESS WITH MIDTOWN CONSTRUCTION, SALES Saturday, September 29, 2018 Deyaar Development has announced that the construction of Afnan and Dania districts in its flagship Midtown project have reached the halfway point, with unit sales in both districts exceeding the 87 percent mark. The update follows the handover of two residential projects within its portfolio earlier this year, the Dubai-based developer said in a statement. A community in Dubai Production City with a built-up area of 5.5 million sq ft, Midtown comprises 27 buildings across six districts, that will share a single-level podium covering retail, parking and essential services. Deyaar added that work on the Deyaar Millennium Hotel and Serviced Apartments is expected to wrap up by the end of 2018. The hotel will have 408 units, including 299 hotel rooms, of which 15 will be suites, in addition to 109 serviced apartments - a mix of 93 one-bed and 16 two-bed apartments. In March, Deyaar handed over the residential towers of the Mont Rose development, a project located in Dubai Science Park. Mont Rose comprises three towers – one with hotel apartments, and two residential. Both residential towers feature 146 one-bedroom, 144 two-bedroom, and seven three-bedroom apartments. The hotel apartment tower has been designed to offer 126 studios, as well as 72 one-bedroom apartments. Since July, the handover of Deyaar’s residential tower, The Atria, has also been ongoing. The Atria comprises 219 units over 30 floors, including one to three-bedroom apartments, three-bedroom duplexes, and four-bedroom penthouse. The hotel apartment tower is composed of 347 bespoke apartments, including studios, one, two and three- bedroom apartments, and three-bedroom duplex units, with construction now complete. Saeed Al Qatami, CEO of Deyaar said: “We have demonstrated that this year with two of our flagship residential projects, the Mont Rose was delivered to the owners earlier this year, and we have recently initiated the handover process for The Atria. Deyaar will continue to develop and deliver properties inline with the UAE’s wide-ranging community needs and preferences.” Deyaar is listed on the Dubai Financial Market and majority-owned by Dubai Islamic Bank. Source: Arabian Business Back to Index

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SMART POLICE STATION PLANNED FOR FLAGSHIP NEW DUBAI PROJECT Saturday, September 29, 2018 Dubai Police and Majid Al Futtaim have signed a memorandum of understanding to develop a smart police station at Tilal Al Ghaf, the company’s flagship new Dubai project. The deal was signed by Major General Muhammad Saeed Al Marri, assistant commandant for Community Happiness and Equipment at Dubai Police, and Hawazen Esber, CEO of Communities at Majid Al Futtaim – Properties. Al Marri said the smart station will provide members of the public with 24-hour access to police services in a neighbourhood setting, where the construction of a conventional police station would not be possible. Dubai Police opened the first smart police station in 2017, in line with its plan to provide completely virtual access for the public to police services by 2030. “Smart Police Stations are part of our vision to support happiness in Dubai, improving access to police services for members of the public. “The smart police stations will offer innovative, high-quality services, including 27 criminal, traffic and community services as well as 33 allied services that will operate without any human intervention,” he added. Esber said: “The smart police station is in line with the community’s innovative 360-degree plan to promote happiness and public safety by using smart technology. Offering services locally, close to people’s homes, also reduces the need to travel, which will support sustainability within the community.” Tilal Al Ghaf is Majid Al Futtaim’s new flagship mixed-use community in Dubai that will be home to more than 20,000 residents once complete. The community spans over three million square metres at the intersection of Hessa Street and Sheikh Zayed Bin Hamdan Al Nahyan Street. The phased project will include more than 6,500 freehold homes, ranging from apartments, townhouses and bungalows, through to substantial luxury villas. Source: Arabian Business Back to Index

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REVEALED: STEPHEN HAWKING-INSPIRED DESIGN FOR UK PAVILION AT EXPO 2020 DUBAI Saturday, September 29, 2018 Award-winning British artist Es Devlin OBE is set to design the UK pavilion at Expo 2020 Dubai. The pavilion will be the centrepiece of the UK’s presence at the Expo, highlighting UK expertise in artificial intelligence and the space sector. Devlin is known for creating stunning large-scale performative sculptures that fuse technology and poetry, including the interactive Fifth Lion sculpture installed in Trafalgar Square. Her design for the UK pavilion is an illuminated sculptural message to which each of the Expo’s anticipated 25 million visitors will be invited to contribute. It will feature a 20 metre high glowing LED façade which will beam out a collective AI-generated global message, according to a statement by the UK's Department of International Trade. Explaining her inspiration, she said: "The idea draws directly on one of Stephen Hawking’s final projects, ‘Breakthrough Message’, a global competition that Hawking and his colleagues conceived in 2015 inviting people worldwide to consider what message we would communicate to express ourselves as a planet, should we one day encounter other advanced civilisations in space. "What if the UK pavilion at Expo 2020 became a place where visitors from all over the world chose to take part in a collective global project that showcases British expertise in AI technologies and poetry while transcending national identities." International Trade Secretary Dr Liam Fox MP said: "The quality of design proposals we received for the UK pavilion were testament to the UK’s world leading creative talent and I’m confident that Es Devlin OBE and the team will help us take advantage of this unique opportunity to showcase the very best of British to a truly global audience. "This announcement follows a competitive tender process which saw a number of leading designers and firms form consortia to bid for the multi-million-pound contract, and we are grateful for their submissions." Devlin and London and Dubai-based global brand experience agency Avantgarde will join forces with Manchester- based structural engineers Atelier One and sustainability experts Atelier Ten on the project. Dubai Expo 2020 will be visited by an estimated 25 million people in the six months from October 2020 to April 2021. Source: Arabian Business Back to Index

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MANAMA HOTELS REPORT BEST AUGUST OCCUPANCY FOR A DECADE Saturday, September 29, 2018 Hotel occupancy in Manama reached its highest level for an August in a decade, according to new data from analysts STR. The hospitality market in the Bahraini capital city saw occupancy soar by more than 17 percent to over 60 percent last month compared to the same month last year. STR said this was the highest absolute occupancy rate in Manama since 2008. Its data also showed that average daily rates (ADR) for hotels in the city rose by 7.5 percent to BD63.50 while revenue per available room (RevPAR) jumped by 26 percent to BD38.33 compared to August 2017. STR said in a statement: "Demand growth (up 26.9 percent) was in the double digits for the third consecutive month, and absolute occupancy reached its highest level for an August in the market since 2008." It added that year-over-year performance comparisons were enhanced by the calendar shift to an earlier Eid al- Adha than 2017. For the wider Middle East region, STR data showed that occupancy rose by 2 percent to 63.4 percent while ADR increased by 12.2 percent to $169.63 and RevPAR jumped by 14.5 percent to $107.50. Source: Arabian Business Back to Index

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SHARJAH RULER ISSUES DECREE TO SET UP NEW NATURE RESERVE Friday, September 28, 2018 Sharjah ruler Dr Sheikh Sultan bin Mohammed Al Qasimi has issued an Emiri decree establishing a new nature reserve in the emirate. Decree No. 40 of 2018 stipulates the prohibition of activities in Ed Dhelaimah Nature Reserve that would damage or deteriorate the ecosystem and cause wildlife or maritime damages. Ed Dhelaimah, which was first announced as a protected area in March 2007, is Arabic for The Dark Area because of the high density of Ghaf trees which makes it dark during the day as sunlight struggles to pass through. It is one of the most important protected areas in Sharjah, where many wild animals were released by Al Qasimi. It also provide an appropriate environment for endangered fauna and flora in addition of being a home for some reptiles, foxes, and some birds like Chestnut-bellied Sandgrouse and Grey Francolin. According to state news agency WAM, the new decree also states that all animal species including birds and other organisms "enjoy the protection of the reserve". It said that no activities can be carried out within the reserve without a permit from the relevant authority and any violations will be punishable by law. "The competent authority shall administer the reserve and take the necessary administrative measures in coordination of the mechanism of cooperation with the concerned authorities," the decree added. Source: Arabian Business Back to Index

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REVEALED: WHICH DUBAI HOTEL BRAND DOMINATES TRIPADVISOR RANKINGS Saturday, September 29, 2018 Emaar Hospitality Group has secured TripAdvisor’s top rankings among Dubai hotels across all three categories – five-star, four-star and three-star. Address Dubai Marina, a 5-star property, ranks first among all 582 hotels in Dubai, evaluated by the world’s largest travel site based on customer reviews. The company said in a statement that Manzil Downtown tops the 4-star category, and Rove Healthcare City leads in the 3-star category. The other four Rove hotels in Dubai occupy the places 2 to 5 on the TripAdvisor rankings for 3-star hotels, it said, adding that this is the first time that a hospitality company has earned the coveted top position in all three categories. Olivier Harnisch, CEO of Emaar Hospitality Group, said: “The top TripAdvisor rankings gained by our hotels underline the ability of our associates to create delightful and authentic guest experiences. I thank them all for their continuous passion in being such outstanding hosts. "The impressive results achieved by all our hotels are a clear indication that our guests love their stays with us and cherish the amenities and service we provide. “We have always been focused on providing warm and personalized service with a human touch, which we believe is the most powerful driver of guest loyalty. We thank our guests for their positive reviews and constructive feedback and take this as a motivation to further improve our services.” Emaar Hospitality Group operates 14 hotels and three serviced residences in Dubai and Egypt, and has a portfolio of about 40 upcoming properties in several high-growth international markets. The Group operates hotels under three brands - the premium luxury Address Hotels + Resorts; the upscale lifestyle Vida Hotels and Resorts; and the contemporary midscale Rove Hotels. TripAdvisor features approximately 661 million reviews and opinions - covering approximately 7.7 million accommodations, airlines, experiences, and restaurants. Source: Arabian Business Back to Index

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NAKHEEL UNVEILS THE UAE'S FIRST FLOATING SWIMMING POOL Thursday, September 27, 2018 Nakheel Hospitality & Leisure, the hotel, restaurant and leisure arm of developer Nakheel, has unveiled the UAE’s first floating swimming pool, 50 metres offshore in the waters of the Palm Jumeirah in the Arabian Gulf. A new destination for poolside relaxation by day and a venue for private events by night, the pool is an extension of Breeze Beach Grill at Club Vista Mare. Accessible by a 50 metre walkway, the 20 metre long pool has an extensive deck area with sunbeds and seating for up to 75 people. It is attached to the seabed using the Seaflex anchor system that is used for pontoons and floating jetties. Thorsten Ries, managing director, Nakheel Hospitality & Leisure, said: “This stunning new attraction is unique because it allows guests to choose from a fresh water dip in the pool or salt water swim in the Arabian Gulf, in one offshore location. It’s been constructed over the summer to be ready for the winter season, and is already the talk of the town. “Breeze Beach Grill is one of our most popular dining and leisure destinations, thanks to its superb location and private beach. Now it has the added attraction of the UAE’s first floating pool, further enhancing its appeal as a must-visit venue in Dubai.” Day time entry to the pool is for adults only, and costs AED200 per person, AED100 of which is redeemable on food and drinks from Breeze. Towels are provided. By night, the pool transforms into a private function venue – ideal for corporate events, product launches or family celebrations. Source: Arabian Business Back to Index

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US OPERATOR REVEALS PLAN TO OPEN MORE SAUDI HOTELS Thursday, September 27, 2018 US-based Choice Hotels International has revealed plans to bring seven additional hotels to Saudi Arabia under its Comfort and Quality brands. The new hotels represent the first tranche of a broader strategy to open 30 Choice-branded hotels to the Gulf kingdom, Hotelier Middle East reported on Thursday. The hotels include three Comfort Inn & Suites hotels in Riyadh, one Comfort Suites and two Quality Inn & Suites hotels in Jeddah and one Comfort Inn & Suites in Taif. The announcement follows the previously signed master development agreement with an affiliate of one of the largest tourism and travel companies in the Middle East, Al-Tayyar Travel Group. All seven hotels will be operated through hotel-management agreements between CHME Ltd, a subsidiary of Al- Tayyar Travel Group, under a master license agreement with Choice Hotels. Four of the hotels already are under construction and expected to open beginning in the third quarter of 2019. Choice Hotels president and CEO, Patrick Pacious, said: “International growth remains a key strategic focus for Choice, and the kingdom presents an attractive market for expansion. We are proud to leverage our decades of mid-scale experience to bring more hospitality options that travelers desire to the region.” Source: Arabian Business Back to Index

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NAKHEEL LAUNCHES FIRST RESIDENTIAL PROJECT IN DRAGON CITY Saturday, September 29, 2018 Sales open on Sunday at the Dragon Towers in Dubai, with Nakheel pricing entry level units from Dh449,000. The twin-towers are the first residential component at the developer’s Dragon City cluster, which also features Dragon Mart. Aiming for completion in 2021, Dragon Towers on the Hatta-Oman road will be linked by a covered bridge to Dragon Mart and its 5,000 shops. They are 37 storeys apiece, each with 571 one- and two-bedroom apartments. Two floors are dedicated for retail options, four parking levels and a six-floor podium level Clubhouse with a 25- metre swimming pool. Around 130,000 new residential units are currently under construction in Dubai, and potentially scheduled to enter the market by the end of the decade, according to figures from CBRE. The top five locations for future supply include Dubailand, Mohammad Bin Rashid City, Dubai Creek Harbor, Jumeriah Village Circle/Triangle and Dubai South. “While the downward trend in residential sale prices has continued in the first-half of 2018, it has not dented the spirit of developers who are continuing to offer advantageous payment plans and incentives,” said Simon Townsend, Head of Strategic Advisory, CBRE M. E. Source: Gulf News Back to Index

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IS IT THE BEST TIME TO BUY LUXURY PROPERTIES IN DUBAI? Sunday, September 30, 2018 A month-on-month analysis shows that prices in the luxury sector have been stable. The luxury property market in Dubai is close to bottoming out. However, there are certain sub-markets where there is more room for prices to fall further. "In certain markets, this is certainly close to the bottom, however, there is still some room for prices to decrease. In locations such as the Palm Jumeirah villa market, we are seeing that the market is very much there [or there about] and as a result, we are seeing the market begin to pick up in terms of transactions," says Taimur Khan, research manager, Knight Frank. A month-on-month analysis shows that prices in the luxury sector have been stable. According to Luxury Property, average sales prices have changed by zero per cent in Mohammed Bin Rashid City and Arabian Ranches, whereas homes in Jumeirah saw a drop of only 0.12 per cent and Dubai Marina has experienced a drop of 0.44 per cent month-on-month basis in August. "We are at the bottom of the cycle. As the supply/demand matrix stabilises, we will see a return to steady measured growth," observes Jason Hayes, founder and CEO, Luxury Property. However, there are others who believe that if you have a luxury property in a prime location, you hold a value that hardly decreases. "What we describe as "the market" are mass market units that have no individual value or unique selling point. If you are the owner of a prime property within a well-established community, you got an advantage over the rest of the market, reckons Daniel Garofoli, luxury sales specialist, Luxhabitat. According to Knight Frank statistics, the transactional average for prime apartments in the secondary market ranges from Dh2,400 to Dh2,630 per square foot and from Dh2,160 to Dh2,840 per square foot in the off-plan market, depending on the location. Meanwhile in the super prime market, the transactional average in the secondary market ranges from Dh2,250 to Dh3,720 per square foot and Dh3,100 to Dh3,360 per square foot in the off-plan space, Knight Frank informs. "The Marina, JLT and JVC/JVT have a lot of attraction for end-users as well as off-plan buyers. The market in Downtown has slowed a bit. Investors are looking at B- and C- locations for investments as the returns are higher than in prime locations. End-users are still seeking properties in prime locations such as Downtown and the Palm for secondary and Dubai Hills for off-plan," adds Garofoli. "In terms of off-plan sales, beachfront apartments on the Palm Jumeirah have continued to be a popular option, primarily in developments such as the Alef, One Palm and Royal Atlantis. The villas at XXII Carat have also proven to be popular with buyers. Secondary villas sales have been particularly strong in areas such as Al Barari, Arabian Ranches II and District One," continues Hayes. In the off-plan villa and townhouse market, Town Square, Mohammed Bin Rashid City, Al Quoz and Serena have seen most transactions in Q2 2018 whereas in the off-plan apartment space, MBR City, Business Bay, JVC, Downtown, Marina and Dubai South have seen brisk activity.

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In the secondary villa/townhouse space, Emirates Living, Akoya Oxygen, International City, MBR City and Al Furjan have seen most transactions whereas in the secondary apartment market, Marina, International City, Sports City,

Downtown, Palm Jumeirah, JVC, JLT and Business Bay have been popular among buyers. If the unit is correctly priced in terms of market expectations, then it sees good levels of demand, whereas overpriced units will tend to have much longer marketing periods. "More so in areas where we are expecting an influx of supply such as Downtown Dubai, we are seeing greater discounts being achieved compared to the marketing price," elaborates Khan. Some properties are sitting on the market for a longer period as sellers keep a bottom line in mind that they don't want to move from. "The realisation marketing period is longer than it was at this time last year. This is due in part to the increase in newly constructed options for buyers to consider. As their options grow in number, we can accordingly expect a longer marketing period," adds Hayes. The majority of sellers understand the market and their homes are valued and priced accordingly. "Sellers are willing to come down in prices little more now and take a hit, which is a great sign as they see that their market moves sidewards, but not down. So, in order to shift a property quick, it's required to come closer to a serious buyer's offer," adds Garofoli. Purchasers of luxury property in Dubai comprise overseas buyers, second home buyers and people that establish business here in Dubai. Source: Khaleej Times Back to Index

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WHY DUBAI PROPERTY BELOW DH1.5M IS A STABLE INVESTMENT Saturday, September 29, 2018 Majority of expats in UAE traditionally seek to rent rather than purchase realty Expats should invest in property priced below Dh1.5 million, which is the most stable segment and offers best long-term returns, according to real estate market analysts. "For a family that has money to invest, we would also advise to stick below Dh1.5 million price point, which represents the most stable market segment currently," said Richard Paul, head of professional Services for Cluttons Middle East. "At this price point, even if the decision is to lease the property investment out, post- acquisition, a purchaser should expect a 7-9 per cent gross yield in some areas and subsequently after interest payment, service charges and upkeep, there is still good profit rent to be achieved." According to Cluttons Middle East, market activity in studios and one-, two- and three-bedroom apartments, valued at a price point below Dh1.5 million, is the most active segment. In their opinion, it currently makes more financial sense for hopeful end-users who wish to offset the cost of rent to buy at these levels. "One- and two-bedroom apartments in an established area are dominating most of the activity in the market. This is also the case for prospective owner occupiers who wish to cease paying rent. It does depend on where the individual sits financially, but if they have adequate equity, it makes sense for them to contemplate paying off their own mortgage and look at real estate as a mid and long-term investment," Paul said. Craig Plumb, head of research at JLL Mena, said majority of expatriates in the UAE have traditionally sought to rent rather than purchase properties. "As the market has become more mature - with less price volatility than in previous cycles, expatriates can be more confident to buy at close to the bottom of the current cycle to benefit from potential long-term capital growth. Recent changes to visa laws - allowing 10 year residency for certain groups of expatriates - is also likely to increase demand to purchase property in the UAE for their own occupation," Plumb added. "The case for purchasing properties is further strengthened by the attractive payment plans that are currently being offered by developers that are keen to dispose of unsold off plan units and the increased choice of low-to-mid market product available for sale." According to a research from JLL, residential prices in Dubai, which have fallen around 20 per cent since the last market peak in October 2014, are now approaching the bottom of its cycle, with only limited further declines expected. "Prices and rents are both expected to soften further in the short term but a solid case can be made for long-term expatriates to purchase property rather than continuing to rent," it said. Source: Khaleej Times Back to Index

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NRIS, YOU CAN EARN UP TO 35% RETURNS ON REALTY IN CERTAIN AREAS IN INDIA Saturday, September 29, 2018 Apartment buildings are seen in Greater Noida. The realty sector in new towns in India's metropolitan cities will grow very fast in the next five years compared to other locations. Non-resident Indians can earn around 30-35 per cent return on real estate investments in new locations in metropolitan cities of India, such as Navi Mumbai and Powai, where infrastructure as well as residential and commercial projects are being developed fast, according to the patriarch of the country's real estate. Dr Niranjan Hiranandani, president of the National Real Estate Development Council and founder and managing director of Hiranandani Constructions, said residential and commercial sectors will be the hottest segment in real estate in the next few years. "The residential segment is going to grow exponentially fast, maybe 30-35 per cent over the next five years. In addition, affordable segment and rentals are also on the upward trajectory. So, investors will get rental as well as price appreciation in those cities where new locations - both commercial and residential - are being developed," said Dr Hiranandani, who has been ranked among India's 100 richest people with $1.5 billion in assets by Forbes. "Generally speaking, new towns in metropolitan cities like Navi Mumbai will grow very fast in the next five years compared to other locations. There are other sectors that are going to grow such as infrastructure and logistics, but as far as we are concerned, smaller investors will more invest in to residential real estate," he said during a media gathering in Dubai on Saturday. Dr Hiranandani pointed out that in matured locations, where 100 per cent development work is done, investors will not get that much appreciation on their investments. But new locations where there are fresh infrastructure, development new airport, schools and medical centres are going to see huge appreciation. He forecast most of the growth will be in the urban and metropolitan cities of India and peripheral towns of Tier 2 cities. Painting a rosy picture of India's economy and real estate sector, Dr Hiranandani revealed that a real estate investments trust market will open in the next three to four months. "We expect a $1 billion investments from Reits this year," he added. Oil, not trade war Replying to a question, Dr Hiranandani ruled out any impact of the China-US trade war on the Indian economy, but warned that rising oil prices could pose a threat to its growth. "The US-China trade war is unlikely to affect India's economy, but [rather] the oil price because 80 per cent of our oil that we consume is imported. So our problem is not with the trade war. If oil crosses $80 per barrel, I think there will be slowdown in the economy," Dr Hiranandani told Khaleej Times during an interview. And if crude hits $100 a barrel, that could shave off one per cent from India's GDP growth, he said, adding that the country will benefit from the trade war through its services sectors and increased exports. Time ripe to invest in Dubai property Darshan Hiranandani, director at Hiranandani Group of Companies, believes that the time is ripe to start investing in Dubai's real estate and hospitality again as prices are becoming more reasonable.

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"I think there are a few points which hint that we should start investing in Dubai property again. VAT will become a part of life in the next six months and oil is also coming back at $80. Dubai property, which had become uncompetitive due to high prices, is becoming attractive again due to a drop in prices," he said. During an interaction with media in Dubai on Saturday, Hiranandani, who is son of Indian billionaire Dr Niranjan Hiranandani, said that Dubai did become expensive and uncompetitive for hospitality and residential housing, but now that scenario is changing following government's recent initiatives. "Hotels are becoming more reasonable in terms of pricing and residential prices are falling five per annually, making Dubai competitive again," he added. Source: Khaleej Times Back to Index

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165 ABANDONED HOUSES DEMOLISHED IN UMM AL QUWAIN Tuesday, September 25, 2018 The department has started issuing the blueprints of the areas covered by the first phase of the project. The department of urban planning in Umm Al Quwain has started removing 165 old and abandoned houses at the Al Sheyukh district at the Old Belad area. The move is part of the second phase of a project to redevelop the old places, according to Jamal Al Shehi, director of urban planning at the department. "The second phase is expected to take four months during which all the old buildings will be demolished." The project was instructed by His Highness Sheikh Rashid bin Ahmed Al Mualla, Member of the Supreme Council and Ruler of Umm Al Quwain. "Both Al Rigga and Old Belad areas shall be redeveloped and rehabilitated as per this decree No2 of the year 2017." The department has started issuing the blueprints of the areas covered by the first phase of the project. The demolition of the old houses is being done as per the plan of the project follow-up committee. Source: Khaleej Times 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 extensive real estate experience within the Middle East and internationally. leading real estate experts.

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

John Allen BSc MRICS Director, Valuation & Advisory SALES +971 4 403 7777 Asteco has established a large regional property sales [email protected] division with representatives based in UAE, Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the Jenny Weidling BA (Hons) negotiation and sale of a variety of assets. Manager – Research and Advisory +971 4 403 7789 LEASING [email protected] Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

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