NEWS BRIEF #44 SUNDAY 03 November 2013

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS UAE CENTRAL BANK ISSUES MORTGAGE SYSTEM: 80% OF PROPERTY VALUE FOR EMIRATIS, 75% FOR EXPATS UAE AN IDEAL PLACE TO LIVE IN: WESTERN EXPATS FOREIGN RESEARCH FIRMS BLAMED FOR UAE PROPERTY CRISIS: AL OTAIBA UAE TOURISM AND HOSPITALITY SECTORS TAKE OFF TO A NEW HIGH EXPO 2020 WOULD GROW FINANCE SECTOR UAE LEADS THE WAY IN GREEN BUILDING PRACTICE

ABU DHABI ALDAR EYES RENTALS, SMALLER PROJECTS POST-MERGER ABU DHABI BOOSTS CHECKS ON READY-MIX SECTOR ABU DHABI’S ESTIDAMA PROGRAMME AT VANGUARD OF GREEN BUILDING REVOLUTION ABU DHABI’S ICONIC ETIHAD TOWERS SCOOPS FIVE AWARDS ABU DHABI INVESTMENT AUTHORITY SET FOR BIG FRENCH PROPERTY DEAL

DUBAI DEYAAR ANNOUNCE PROFIT SURGE AL MAKTOUM INTERNATIONAL: PERFECT LANDING FOR EXPO 2020, HUGE TAKE-OFF FOR DWC PROPERTY DEVELOPMENT A HOME IN THE CLOUDS: WHY DUBAI DOMINATES THE SKY INDIGO'S USD41M ORANGE LAKE PROJECT 50% COMPLETE EMAAR LAUNCHES 'SKY COLLECTION' OF APARTMENTS IN THE ADDRESS RESIDENCE FOUNTAIN VIEWS III DUBAI BUYERS HAVE OPTIONS ON ACCESSIBLE PROPERTIES AL MAZAYA HOLDING RECORDS DH263.7M IN OPERATING REVENUES DUBAI IOAS' DIKTAT: NO MOVING HOMES OVER WEEKENDS NO CURRENT PLANS TO BUILD TOWER TALLER THAN BURJ KHALIFA: EMAAR BUY PROPERTY IN DUBAI AND GET YOUR TICKET MONEY REFUNDED SKY GARDENS PROPERTY LAWSUIT IN DUBAI STARTS TRIAL AT DIFC COURTS TWOFOLD RISE IN DUBAI INVESTMENTS’ QUARTERLY PROFITS AS INVESTMENTS AND RENTAL EARNINGS SOAR

NORTHERN EMIRATES WATER COOLING JOY FOR SHARJAH RESIDENTS AL NAHDA RENTS BEGIN TO SKYROCKET: 2-BED IN DUBAI TOUCHING DH100,000, SHARJAH UP TO DH65,000

QATAR FIRST METRO SERVICE LIKELY BY 2019-END

KSA KINGDOM HOUSING SECTOR ROBUST FOR AT LEAST 5 YEARS NONTOXIC PROJECTS STIMULATE SAUDI BUILDING SECTOR

OTHER CALL TO ROOT OUT FRAUD AND CORRUPTION IN GLOBAL CONSTRUCTION INDUSTRY

DEYAAR ANNOUNCE PROFIT SURGE

MONDAY 28 OCTOBER 2013 Dubai-based commercial and residential developer Deyaar reported a net profit surge in third quarter profit on Monday amid renowned confidence in Dubai’s property market. According to a Deyaar press release the developer recorded Dh40.5 million in the third quarter of 2013, significantly higher than the Dh5.1 million the company reported in the same 2012 period. The company is performance in 2013 has outstripped recent years since the financial crisis. For the first nine months of 2013 Deyaar has recorded Dh87.1 million total net profits, which accumulates to 162 per cent growth when compared to the Dh33.2 recorded over the same 2012 period. Net operating profits at the Dubai-based developer have also improved from Dh72.9 million in the first nine months of 2012 to Dh181.6 million for the same 2013 period. “The real estate segment has been registering ongoing [sic] growth through each quarter this year. This sound financial performance is a testimony to the industry’s underlying resilience,” Saeed Al Qatami, Chief Executive Officer, Deyaar, stated. Deyaar did not respond to request for further comment. According to CBRE’s 2013 third quarter Dubai Office & Residential Market View report the emergence of strong demand has accelerated rental growth among commercial properties in the central business district (CBD) area with average rates increase 7 per cent quarter on quarter. But Dana Williamson, Head of Agency, Middle East North Africa (Mena) at Jones Lang LaSalle, said that residential and land sales were driving the market. Residential rental property rates in Dubai have jumped by 23 per cent so far this year. The main drivers is residential and land sales because in terms of commercial property in the office point there has only been some improvement, Williamson said. However, Deyaar’s third quarter announcement affirms the bounce back the Dubai’s property market is witnessing. “It indicates ... that confidence is up and because confidence is generally is up you will see more transactions in land and residential sales,” Williamson said. Source: Gulf News Back to Index

KINGDOM HOUSING SECTOR ROBUST FOR AT LEAST 5 YEARS

TUESDAY 29 OCTOBER 2013 The supply of housing in Saudi Arabia may lag demand for at least the next five years, creating lucrative opportunities for developers who can benefit from rapid population growth and a new mortgage law, the chairman of the Kingdom's largest listed developer said. "Official numbers refer to a need for 1.25 million units from 2010 through 2014 and for sure the market has not provided these units, which has led to a rise in prices," said Youssef Al- Shelash, who heads Dar Al Arkan Real Estate Development Co. "Supply remains well below demand which is expected to rise to 4 million units in the next 10 years...for developers this is definitely an opportunity." Some 60 percent of nearly 20 million local citizens in Saudi Arabia are estimated to live in rented accommodation. Home ownership is below rates in many developed and even developing countries. Local firms have struggled to meet demand, partly because of limited bank financing for developers and homebuyers, while ownership restrictions make it hard for foreign companies to enter the Saudi real estate sector. In 2011 King Abdullah announced a $67 billion program to build 500,000 homes over several years. The weak competition in the residential real estate market will make the market very attractive for at least the next five years, said Shelash, who with over 20 years of experience is known as a pioneer of the Saudi property industry. Satisfying demand for housing "is a big challenge for the country", he said in an interview at the Reuters Middle East Investment Summit. Partly because of the distortions in the market, responding to the demand does not guarantee rising profits for Saudi developers. Last week Dar Al Arkan posted its fifth straight decline in quarterly profit, citing lower margins and sales; net profit for the three months to end- September dropped 17 percent from a year earlier to SR183.3 million ($48.9 million). But the company's shares are up 21 percent year-to-date, slightly outperforming a 19 percent rise in the main Saudi stock market index. Shelash said that after suffering in 2009-2012 from the global financial crisis, Dar Al Arkan had focused this year on stabilizing cash flow and diversifying income sources, which limited profit growth. Construction firms in Saudi Arabia have faced rising cost pressures this year as the government, aiming to boost employment among its citizens, has cracked down on unregistered employment of cheaper foreign workers.

"We don't face direct labor problems, but contractors and suppliers do, and they are the two legs we walk on - their problems are ours," Shelash said. But he said Dar Al Arkan was now well placed to capitalize on growing demand for residential real estate, partly because a long-awaited package of new mortgage laws introduced last year would gradually make life easier for home buyers. "We expect 2014 to be the year of real growth and we seek growth of not less than 10 percent," he said. Early next year Dar Al Arkan plans to launch a multi-billion riyal, mixed-use real estate project inside Saudi Arabia and will need at least SR1.2 billion of financing for this, which could be raised via a sukuk (Islamic bond) issue, he said. The company does not expect to need this money for at least six to eight months, he added without giving further details of the project. In May this year, Dar Al Arkan sold a $450 million, five-year sukuk, its first international bond sale since 2010. Shelash said company's financial position was now very strong, with an asset base worth SR24 billion at end-June and debts worth only 15 percent of total assets, making it easy to afford payment of two sukuk issues maturing in 2014 and 2015. To ensure stable revenue, Dar Al Arkan has set a diversification plan which aims to obtain 50 percent of revenue from selling housing units and land, 40 percent from leasing housing and commercial units, and 10 percent from investments in equities and deposits. As part of the diversification, the company is studying the possibility of making two relatively small-scale investments in projects in Europe and Turkey, he said without elaborating. Source: The Saudi Gazette Back to Index

CENTRAL BANK ISSUES MORTGAGE SYSTEM: 80% OF PROPERTY VALUE FOR EMIRATIS, 75% FOR EXPATS

TUESDAY 29 OCTOBER 2013 The UAE Central Bank has issued the long-awaited mortgage lending system, which allows the country's banks to provide a loan of up to 80 per cent of the property value to Emiratis and 75 per cent to expatriates. The new rules which were released by the Central Bank on Monday will be enforced one month after they are published in the official gazette this week. A statement by the Central Bank stressed that the 23 national banks and 28 foreign units operating in the second largest Arab economy must take into consideration the debtor's eligibility and financial resources. It also told banks to ensure they would not give loans that exceed 50 per cent of the client's monthly income. The new rules stipulated that mortgage loans to Emiratis must not exceed 80 per cent in case the property value is Dh5 million or less. The loan must be cut to a maximum 70 per cent in case the property value is above Dh5 million. Loans to expatriate clients must not exceed 75 per cent of the property value of Dh5 million or less and 65 per cent if the property value is more than Dh5 million. As for clients buying property before construction or on the map, the maximum loan they can get is 50 per cent of the unit's value. The law set a maximum period of 25 years for a mortgage loan provided that the Emirati debtor must not exceed 70 years of age when repaying the last installment of the loan. As for expatriate clients, the law set the maximum age at 65 years. "The Central Bank, by issuing this new system, wants to ensure all banks and financial institutions in the country have authorised and credible business criteria and effective frameworks that will control their mortgage loans," Central Bank governor Sultan bin Nassir Al Suwaidi said on Monday. Source: Emirates 24/7 Back to Index

AL MAKTOUM INTERNATIONAL: PERFECT LANDING FOR EXPO 2020, HUGE TAKE-OFF FOR DWC PROPERTY DEVELOPMENT

TUESDAY 29 OCTOBER 2013 The opening of Al Maktoum International at Dubai World Central , the UAE's new airport, will lead to gradual urban expansion of Dubai towards the airport, which is currently marked by development activity taking place on Sheikh Mohammed Bin Zayed and Al Khail roads. "This is already evident along these roads," Deepak Jain, Head of Strategic Consulting, Mena, at Jones Lang LaSalle, told Emirates 24|7. Dubai World Central has invested Dh17 billion so far towards developing infrastructure within DWC, including Dh2 billion in developing the residential district. The residential district is already being served with all the major services with 132/11kV electrical substation being handed over to Dubai Electricity and Water Authority for final connections to tenants. District cooling plants to supply chilled water for air-conditioning in the building have been completed. Besides, the main access road to the residential district has been completed, connecting it to the new Emirates Road, Sheikh Mohammed Bin Zayed Road and to Al Maktoum International Airport. Beehive of activity UK-based Knight Frank has emphasised that the Dubai World Central master development will become beehive of activity should Dubai win the UAE bid to host the World Expo 2020. "Investors, developers and occupiers are beginning to look at Dubai World Central as a potential hub of activity," the consultancy said. Mohammed Bin Rashid City, a multi-billion-dollar project housing the world's largest mall and over 100 hotels, is located between Emirates Road, Al Khail Road and Sheikh Zayed Road. Besides, India's Sobha Group has also announced plans to build Sobha City, comprising 280 villas, 13 high-rises, garden apartments, a shopping mall and hotels adjacent to Meydan Godolphin Parks situated along Al Khail Road.

Rising prices?

So, will residential and commercial plot prices rise in communities close to the airport?

Jain doesn't feel so. He states that proximity to airports doesn't necessarily result in increased land values for residential or commercial plots." "But we will see increased activity in and around the airport in the medium- to long-term. "This activity will be accelerated if Dubai were to win the rights to host the Expo 2020." No bubble Last week, US-based investment bank Goldman Sachs Group said fears of Dubai's real estate market experiencing a bubble are "exaggerated". "New regulations from the Dubai Land Department are aimed at curbing speculation, while new supply is helping keep values down," the bank said. Property prices in Dubai are still 36 per cent below their 2008 peak even after rising by about a third from a low in the second quarter of 2011. Standard Chartered has also said despite prices soaring Dubai's property market was not heading towards another crash and the market was more sustainable. Al Maktoum International Airport will be the largest airport in the world when completed with five runways and a capacity of up to 160 million passengers. Source: Emirates 24/7 Back to Index

A HOME IN THE CLOUDS: WHY DUBAI DOMINATES THE SKY

SUNDAY 27 OCTOBER 2013 Emporis, an organisation collating information about building and construction projects, states that desire for recognition and prestige and demonstration of economic growth are the most significant factors leading to the boom in construction, particularly of such gigantic apartment palaces. A 15 to 20 minute walk is all that is needed to see the four tallest residential buildings in the world in Dubai Marina. Earlier this month, EC Harris, a top global built asset consultancy, referred to Dubai Marina, home to 14 out of the 20 current tallest buildings in the emirate, as the "tallest block in the world". Princess Tower is the world's tallest residential tower. The 441-meter-tall skyscraper has a "dream" location right on the beach with a view of the iconic Palm Jumeirah. The 395-meter-tall 23 Marina hold the second spot, while 380-metre Elite Residence takes the third slot. The Torch, 345-meter-high, comes in at fourth place. Only two buildings make it into the Top 10 outside the UAE - Q1 Tower, on the east coast of Australia, and Capital City Moscow Tower in Moscow, Russia. In Dubai alone, there are 19 buildings taller than 200 metres and 18 of them are on Sheikh Zayed Road. Burj Khalifa, 828-metres high (160 storey), is the tallest tower in the world. In its 2012 review on tall buildings, the Council on Tall Buildings and Urban Habitat said: "Dubai continues to be a significant market for tall building construction, despite the much- publicised drop in development after 2008." The average height of the four of the tallest buildings completed in 2012 in Dubai were 385 metres, while the four buildings completed in Guangzhou province in China averaged 310 metres and five buildings completed in Makkah, Saudi Arabia averaged 319 metres. Emporis states that prerequisites for building mega residential towers are particularly ideal in the Gulf region since there are sufficient providers of capital for major projects of this kind and urban planning is not tied to preserving a distinctive existing skyline, which means gigantic development projects can be given the green light. Dubai dominance, however, in the category is being challenged.

Catching up

The World in Mumbai, India, a 442-meter-high, will take over top spot if it is completed in 2015. Besides, Diamond Tower, in Jeddah, Saudi-Arabia, at a projected 432 meters, and 432 Park Avenue in New York City, at 426 meters in height, are also set to overtake the frontrunner from Dubai on their completion. Source: Emirates 24/7 Back to Index

INDIGO'S USD41M ORANGE LAKE PROJECT 50% COMPLETE

TUESDAY 29 OCTOBER 2013 Indigo Properties, a UAE-based real estate developer, said that it has recently resumed works on its AED 150 million (USD 41 million) Orange Lake project at the Jumeirah Golf Estates in Dubai. Launched in 2009, the development was put on hold during the global economic slump and was only revived earlier this year, a senior company official told Zawya in an exclusive interview. "There was demand and investors came up, so we decided to resume construction of the project, which is now 50% complete. Going at this tempo, we will be finishing the project by June next year," said Sumeet Khubchandani, Indigo's sales manager. Speaking about the financing of the project, he said: "We have a payment plan, which is connected to the construction, enabling us to finance the development. All the money the investors pay goes to the escrow account from where the contractors get paid." Indigo has appointed PGS Gulf as contractor for the Orange Lake project. The company is doing the entire scope of works related to the construction of the new community. Developed by Arch group - whose scope of work include architecture, structural design, MEP (mechanical, electrical and plumbing) services, quantity surveying and project management - the new community will span a built-up area of 394,645 square feet. The master plan and villa architectural concept was produced by Serendipity, while the complete detailed design, engineering, project management and execution was done by Arch group Currently under construction, the Orange Lake development, situated on the third and fourth holes of the Greg Norman-designed Fire course, consists of 68 luxury villas featuring five Mediterranean themes. Source: Zawya Back to Index

UAE AN IDEAL PLACE TO LIVE IN: WESTERN EXPATS

SUNDAY 27 OCTOBER 2013 Majority of western expatriates in the UAE choose the country as the most ideal place to live, a study by Standard Life showed. According to the Western Expatriate Wealthy Study, which polled 200 western expats across the UAE, 78 per cent said they consider the UAE as the ideal expatriate location. “Many western expats in the UAE come to live here because of the countless opportunities that this country has to offer, of which one of the biggest benefits is the tax-free salary,” said Chris Divito, CEO, and Standard Life International. The study also indicated that 94 per cent of the expats put their money aside for investments and/or savings, while 97 per cent spend some of their disposable income on luxurious lifestyle choices. More than half (56 per cent) is spent on real estate such as rent or mortgage payments and 51 per cent on loans. “With an increasing number of UAE western expats paying off their financial liabilities, it is leading to greater strain on their long-term savings and investments. Financial stability is a key priority for expats, and it drives them to plan for their future but at the same time our research has found that spending on non-essential luxury items is also a priority for consumers,” Divito added. Source: Gulf News Back to Index

EMAAR LAUNCHES 'SKY COLLECTION' OF APARTMENTS IN THE ADDRESS RESIDENCE FOUNTAIN VIEWS III

TUESDAY 29 OCTOBER 2013 Emaar Properties has launched the ‘Sky Collection’ of serviced apartments in The Address Residence Fountain Views III in Downtown Dubai The ‘Sky Collection’ apartments are located in the highest levels of the 76-storey tower, which also features the Address Fountain Views hotel. The Address Residence Fountain Views III is part of the three-tower serviced apartment development – the only one of its kind in Downtown Dubai. The residences open to views of The Dubai Fountain and views of Burj Khalifa. Ahmad Matrooshi, Managing Director, and Emaar Properties, said: “Across all our new projects in Downtown Dubai, we have set aside an exclusive ‘Sky Collection’ that is specially designed to meet the lifestyle needs of the truly discerning clientele. The ‘Sky Collection’ of The Address Residence Fountain Views III offers a great value proposition, especially for families, with its spectacular location, luxurious range of amenities, elegant finishes and the superb service offered by The Address Hotels + Resorts.” From the Sky Collection, customers can choose four-bedroom and five-bedroom furnished duplexes and apartments, which range in area from over 2,000 sq ft to over 17,000 sq. ft, inclusive of suites and balcony areas. Potential customers can register online for the ‘Sky Collection’ from 10am on October 30 at www.emaar.com. Sales will be held at the Emaar Sales Centre in Downtown Dubai on November 2. For more details, please call: please call, +9714 366 1616 or 800 36227. Source: Emirates 24/7 Back to Index

WATER COOLING JOY FOR SHARJAH RESIDENTS

TUESDAY 29 OCTOBER 2013 Residents have welcomed Sharjah Municipality’s decision to install cooling devices in all new residential buildings to keep water cool during the scorching summer months. “During summer it’s impossible to get cold water. Even when you turn the cold water tap on, the water is boiling hot,” informed Sheila, a resident of Al Nahda, Sharjah. “It’s tough when you have little kids around. If we aren’t careful they can get burnt.” She added that they often store water in buckets to avoid any such accidents. “This is a great initiative by the Sharjah municipality.” Neelima, another resident of the same area, claimed she uses the hot water tap instead to get cool water. “During summers, we reverse the taps. The cold water tap is for hot, and the hot for lukewarm water. And, it works perfectly.” The civic body has ordered all new building owners to install a cooling device in their water tanks, failing which their license will not be issued. Abdul Aziz Al Mansouri, Assistant Director of Sharjah Municipality for Technical Affairs, in a press note, added that the move was made to address the problem of taps running hot water during the summer months. Even, property owners of old buildings have been asked to make adequate changes to ensure that water temperature is maintained. They must either install a cooling device, or use makeshift covers to keep the water tanks protected from the sun. The civic body claimed that inspections will be carried out to ensure everyone complies with the new rule. Officials also urged property owners to use eco-friendly water heaters and those that use solar power. Source: Emirates 24/7 Back to Index

FOREIGN RESEARCH FIRMS BLAMED FOR UAE PROPERTY CRISIS: AL OTAIBA

WEDNESDAY 30 OCTOBER 2013 Foreign companies involved in real estate research have provided inaccurate information on the sector in the UAE and this was a key cause of the property crisis in the second largest Arab economy in the wake of the 2008 global fiscal distress, a prominent UAE businessman was reported Monday as saying. Otaiba bin Saeed Al Otaiba, chairman of the Abu Dhabi-based Al Otaiba Enterprises, said the crisis should prompt the government to create a body to oversee the real estate sector and ensure correct information on demand and supply. Quoted by the October issue of the Abu Dhabi Chamber’s Arabic language magazine Aliqtisad Al Youm (economy today), Otaiba also slammed UAE banks for tightening their lending purses and charging high interest on loans to property and other projects. “The real estate sector in the UAE has started to recover whether in sales or rents and we notice that there is a surplus in housing unit supply in Abu Dhabi, but we do not have precise data in this respect in order to determine the exact surplus and the number of the new units that will enter the market in the coming period,” said Otaiba, whose company belongs to one of the largest family businesses in the Middle East. “Here, I have to say that the reports released by foreign studies and research firms in the UAE have had a negative impact on the country’s real estate sector. “They have provided inaccurate and exaggerated data on demand and this has prompted many investors to launch major projects. “These reports have created harmful speculation and brokerage, which then controlled the market a few years ago.” Otaiba said a property shortage led to a sharp rise in housing rents and prices before the 2008 global crisis, adding that the decision by developers to launch large projects during that period was “wrong, unstudied and without basis”. “It is imperative that we control speculators as they create a fake demand for housing. What we need now is a sort of stability and balance in the UAE’s real estate sector in the short and long term,” he said. Otaiba expected plans by Abu Dhabi, the main oil producer in the UAE, to pump Dh330 billion into development projects over five years would give a strong push to the construction and real estate sectors in the coming few months. He said the effects of such plans have already started to be felt and expected a “boom” in many economic sectors similar to that during 2003-2008.

“What is needed to support this boom is that banks must provide the necessary liquidity “They should also cut interest on loans as such rates are very costly to investors, banks must also revise their tight lending policies,” he said.

“We believe their (banks’) tightness is reducing the positive effects of the recovery being felt in most sectors in the UAE. “Despite a large increase in deposits with banks and the low interest paid by banks on such deposits, they are still charging high interest on loans. “They need to revise these rates because financing is very important for economic recovery, especially the real estate and construction sector. “There can’t be a real recovery or boom in property sales without competitive interest rates.” Source: Emirates 24/7 Back to Index

AL NAHDA RENTS BEGIN TO SKYROCKET: 2-BED IN DUBAI TOUCHING DH100,000, SHARJAH UP TO DH65,000

WEDNESDAY 30 OCTOBER 2013 Rents in the popular Al Nahda area that sits on the edge of Dubai, alongside Sharjah, is gaining popularity and many are relocating to this area to beat rent hikes in other parts of Dubai. Apartments, on either side of the thin fence that runs behind Sahara Centre Mall are increasingly in demand. Apart from affordable rents, the proximity to schools, hospitals and a variety of restaurants are added attractions. Accessibility to Al Ittihad Road, Sheikh Mohammed Bin Zayed Road and Al Khail Road work in its favour. When Emirates 24|7 spoke to a few real estate agents in both emirates, they confirmed the Al Nahda market is booming. “Landlords are asking for what they want and people are willing to pay,” an agent in Al Nahda, Dubai, says. “If a customer likes an apartment we ask them to take it immediately or else someone else might strike a better deal.” On the Sharjah side of Al Nahda, the story is the same. “The market is booming. It’s fast selling. Rents increase every day. Sometimes, landlords increase it by Dh1,000-2,000 within a week,” an agent added. Agreed another agent; “It is a very competitive market. The rents are increasing every day. Landlords are quoting whatever they feel like.” Rents In Al Nahda, Dubai, a 1BHK (bedroom, hall, kitchen) starts at Dh50,000 and goes up till Dh70,000, while in Sharjah, the same specifications will cost between Dh30,000-50,000. A 2BHK in Dubai will cost between Dh60,000 and Dh100,000, while in Sharjah, the cost is Dh65,000.

A 3BHK in Dubai will cost between Dh90,000 and Dh100,000, while in Sharjah it will be up to 80,000. All these new apartments come with a range of amenities like gym, sauna and swimming pool. Al Nahda: Sharjah or Dubai? While the rents are lower on the Sharjah side, the flip side of moving across the border is the long delay in travel time due to peak-time traffic snarls heading into Dubai and the extra amount paid in Salik. “Yes, the traffic is bad, but it’s only during rush hour. If people plan well then, Al Nahda in Sharjah is a good option to cross over to Dubai,” reasons a realty agent. Also, Sharjah residents have to pay extra for parking. “Most landlords (in Sharjah) charge between Dh2,000 to Dh3,000 per year for one parking slot per apartment,” informed an agent. Al Nahda Dubai also offers easier connectivity to Metro stations. Source: Emirates 24/7 Back to Index

NONTOXIC PROJECTS STIMULATE SAUDI BUILDING SECTOR

WEDNESDAY 30 OCTOBER 2013 The building and construction sector's is looking brighter in Saudi Arabia because of new projects, improvements in infrastructure, the adoption of the mortgage law, renewable energy projects, the interest in the fields of environmental protection, and the establishment of green initiatives, according to an expert. Economist Dr. Abdullah Marai bin Mahfouz, a member of the Jeddah Chamber of Commerce and Industry (JCCI), told the Saudi Gazette "I think that the most important features of the development which will appear in Saudi Arabia is an increase of private sector participation in the development process along with the role of economic growth through encouraging legislation and laws, in addition to escalating financial allocations for infrastructure projects, which will encourage growth in all business sectors in the Kingdom and level up the diversity of their investments." He stressed that the construction sector constitutes a major focus of development in Saudi Arabia and ranks second in the national economy after the oil sector while it contributes about 13, percent of non-oil GDP. "Since there are more than 92 industry and activity linked to the real estate sector, some of which is linked to the phase of construction studies such as the offices of real estate studies and consulting, engineering and marketing companies. Some of which is linked to the construction phase, such as the contracting industry, building materials industry, while some of which is linked to after the construction phase, such as the operating and maintenance companies along with the other complementary industries to this sector. In recent years, it has been observed that the efficiency of the performance of the construction sector in Saudi Arabia has increased because of the augmented financial allocations from the budget of Saudi Arabia on infrastructure projects" he further said. He noted due to the continuing increase in population of Saudi Arabia in recent years, and the arrival of population growth rate to 2.9 percent, the Saudi government has allocated recently a large sums of money on the development of infrastructure and superstructure and the establishment of schools, hospitals and the development of transport, railways and secure housing for its citizens. Moreover, he said "this is in addition to an improvement in economic indicators and investment climate over the past years. All of these led to a positive impact on the performance efficiency of the building and construction sector while strengthening its material and technical abilities." The recent statistical data indicate that the building and construction sector has witnessed a remarkable development during the past five years, whereas the added value of the sector reached in 2012 to more than 97 billion riyals, and the value of capital assets for the building and construction sector amounted to more than SR190 billion in 2012.

Pointing at the challenges faced by the construction industry, Bin Mahfouz said "some of the most important include high operating costs due to increased prices of raw materials that go into the industry such as cement, iron and other raw materials for production. Furthermore, there has been an increase in labor costs, particularly after the imposition of fees on resident employees, which constitute more than 53 percent of the total workforce in the construction sector. Additionally, the raises of land prices, especially in big Saudi cities, which represent 55 percent of the cost of the housing unit, all of these obstacles have been faced by the industry." Source: The Saudi Gazette Back to Index

DUBAI BUYERS HAVE OPTIONS ON ACCESSIBLE PROPERTIES

WEDNESDAY 30 OCTOBER 2013 Potential buyers eyeing mid to upper range properties can try and access the steady supply of new properties in clusters such as Motor City, Dubai Silicon Oasis and a much revived Dubai Sports City. Union Properties, master-developer of Motor City, has just launched new projects there and still has plenty of land bank to utilise there, according to a top official. “Union Properties owns more than 12 million square feet in Motor City and the four announced projects will only take up 1.5 million square feet,” said Khalid Bin Kalban, chairman of Union Properties and of Dubai Investments. Already, Motor City has been witness to solid value appreciation, helped on by the community lifestyle it promises and the more or less self-sufficient infrastructure in place. Its location has also helped, given the proximity to always-in-demand Arabian Ranches and the easy access offered by being on Mohammad Bin Zayed Road. “Today, sale prices in Motor City range from Dh900 a square foot as compared to half the price of 24 months ago; rentals are coming in at Dh70,000 for a one-bedroom and Dh100,000 for a two-bed,” said Niraj Masand, partner at Banke International. “The recent price increase can be attributed to the fact that there were a staggering 254 transactions reported in Q3 at Motor City.” For mid-budget minded buyer, Sports City offers another option. “It is still to be seen whether Sports City will keep pace with the pricing of Motor City considering they are adjacent, and will largely depend on infrastructure and services,” Masand said. “The biggest difference between the two is that Union Properties is entirely developing Motor City while multiple developers are involved in Sports City.” Current selling price is at the Dh700 a square foot mark, while rents are Dh55,000 for a one- bed and Dh80,000 for a two-bed. The value of transactions during the third quarter doubled to Dh75 million over the same period last year. Dubai Silicon Oasis is also seeing an activity spike, with demand for commercial space already in a fairly mature phase. “Prices are increasing in a healthy fashion helped by a proper balance in demand and supply,” said Yash Shah, sales and leasing manager at SPF Realty. “The average price in the area is around Dh750 a square foot and rent returns average around 4- 5.5 per cent annually. This should soon see an increase as well.” Source: Gulf News Back to Index

AL MAZAYA HOLDING RECORDS DH263.7M IN OPERATING REVENUES

WEDNESDAY 30 OCTOBER 2013 Al Mazaya Holding, the Kuwait-based property company, said in a statement on Wednesday that it has achieved Dh263.7 million in operating revenue for the first nine months of this year. “Around 84 per cent is revenues from the sale and delivery of properties, with the remainder being revenues from the company’s income-generating projects, as well as income from the management fees which the company collects from investors,” Rashid Al Nafisi, chairman of Al Mazaya Holding, said in the statement. The company’s gross profit for the same period amounted to Dh67.2 million, while net profit stood at around Dh15.5 million, according to the statement. The company’s positive performance was a result of the completion and delivery of a large number of residential and office units in its current projects, as well as achieving high occupancy rates in its projects in Kuwait, Dubai and Saudi Arabia. Meanwhile, the size of the company’s assets amounted to Dh2,805.7 million, while the shareholders’ total equity climbed to Dh1,177.2 million at the end of September, the statement said. In addition, total financial obligations of the company dropped 6 per cent after delivery of residential units sold in this period. Source: Gulf News Back to Index

DUBAI IOAS' DIKTAT: NO MOVING HOMES OVER WEEKENDS

WEDNESDAY 30 OCTOBER 2013 Getting apartment keys from the landlord won't be enough to move into your new rented apartment. Facility Management (FM) companies, on behalf of Interim Owners' Association in some buildings across freehold communities, are ensuring that tenants have a no-objection certificate (NOC) to move into their leased apartment. The NOC is primarily aimed at getting rogue landlords to pay their service charges. "We have put up notices in all the buildings that an NOC is necessary to move in to any apartment. If the tenant does not show the letter, the security officials will not allow them to enter the building," says a senior official of the top FM Company in Dubai. "There have been instances where we haven't allowed people to shift if the landlord hasn't paid the dues. In fact, the move has helped us in collection as landlords pay up to avoid rental income loss," he added. No noise please Majority of the people tend to shift houses on weekends. But some IOAs in Dubai are putting up notices informing tenants to give advance notice if they are vacating apartments on weekends. A notice has been put up by the FM Company in a residential tower in Tecom, which states tenants will not be permitted to move out of their apartment if they haven't notified them at least two days in advance. Besides, tenants have to pay a refundable deposit of Dh1,000 when moving in or out of a building. This is primarily to cover the cost of repair if while shifting common areas are damaged. "We had to introduce the new clause because we found those shifting create a lot nuisance and are least bothered to clean the common areas. We only allow tenants to move out if they have informed us about their plans in advance," he adds. Source: Gulf News Back to Index

NO CURRENT PLANS TO BUILD TOWER TALLER THAN BURJ KHALIFA: EMAAR

MONDAY 04 NOVEMBER 2013 Emaar Properties had denied reports by a section of the media that the company plans to construct another high-rise in Dubai that is taller than Burj Khalifa, the world's tallest building. An Emaar spokesperson said: "In a television conversation with CNN during April this year, company chairman Mohamed Alabbar discussed tall towers and modern technologies that make it possible for Dubai to build another tall building. "The current media reports use this April conversation as a source which does not spell a firm decision. "Emaar, however, does not have any current plans to develop a building taller than Burj Khalifa in Dubai," the spokesperson added. In media reports that appeared on November 3, 2013, Alabbar was quoted as saying in an interview to CNN: "Emaar plans to build the tallest skyscraper in the world in Dubai." The comments attributed came on the sidelines of launching of a $3 billion development in Arbil, the capital of Iraq's Kurdistan region. Dubai is currently home to 828-metre-high Burj Khalifa, the tallest tower in the world, nestled in a district rated as one of the costliest in the world. Alabbar, however, refused to disclose the height of the new tower. In May, 2013, the Emaar Chairman had said that Dubai can accommodate a tower taller than Burj Khalifa. Speaking at a conference in Dubai at the time, Alabbar said he's considering building a tower which will be taller than the Kingdom Tower, which is currently under construction in Jeddah, Saudi Arabia. Kingdom Tower, which is currently under construction, is set to overtake Burj Khalifa to become the world's tallest by 2017-2018. "Technology has really improved the value of tall buildings which are really important commercially. "We have learned how to make money out of tall buildings." Besides Burj Khalifa, Dubai is home to the tallest residential tower (Princess Tower), the tallest hotel in the world (JW Marriott Marquis) and the tallest building with a 90degree twist (Cayan Tower).

Emporis, a global provider of building information, data reveals Dubai has 909 high-rise buildings, including 448 skyscrapers (comprising 40 floors or more).

Source: Emirates 24/7 Back to Index

ALDAR EYES RENTALS, SMALLER PROJECTS POST-MERGER

SUNDAY 03 NOVEMBER 2013 Aldar Properties, Abu Dhabi's biggest real estate developer, will focus on rental income and smaller projects instead of large developments in order to avoid the risk of becoming overstretched again, a senior executive said. Majority state-owned Aldar piled on debt after being tasked with building trophy assets for the Abu Dhabi government, including a Formula One circuit, the Yas Island entertainment district and lavish waterfront developments. Then the company and other developers were hit hard when a property bubble burst in 2008- 2010, pushing real estate prices down by more than 50%. The government stepped in with a $10bn rescue for Aldar and last year moved to merge Aldar with smaller rival Sorouh Real Estate to create a business with $13bn of assets. The post-merger firm will focus more on earning income from malls, hotels and other rental properties which it owns, along with building small phased developments, Gurjit Singh, the company's Chief Development Officer, told the Reuters Middle East Investment Summit last week. "We are looking at a larger and more expansionary recurring income theme," Singh said. "We have refocused ourselves on very small phased developments. Whatever Aldar did in the past, in terms of creating destinations, is now providing a multiplier effect by improving value of locations for us and the end user." Aldar’s strategy mirrors that of many other property firms in the wake of the UAE's property market crash, which pushed Abu Dhabi's neighbour Dubai close to defaulting on its debt. Dubai's largest developer Emaar Properties, for example, has shifted some focus from residential projects to retail and hospitality sector business that generates rental income. Source: Gulf Times Back to Index

DUBAI CANAL PROJECT: TRAFFIC CHANGES TO SHEIKH ZAYED ROAD; JUMEIRAH-SAFA LINKS REVEALED BY RTA

MONDAY 04 NOVEMBER 2013 The Board of Directors of the Roads and Transport Authority (RTA), chaired by Mattar Al Tayer, RTA Chairman of the Board and Executive Director, has awarded the contract for Phase I of Bridges & Roads Network of the Dubai Water Canal Project to a Turkish firm - Jonal Company - in a contract worth Dh500 million. Upon completion of the final phase the project will link Dubai Creek with the Arabian Gulf via the Canal which will to pass under the Sheikh Zayed Road, and across Al Safa Park, Jumeirah 2 and continue up to the Arabian Gulf near the southern part of the Jumeirah Beach Park. Phase 1 “Phase 1 of the project, awarded to the Turkish Jonal Company comprises the construction of a bridge across the Sheikh Zayed Road passing above the waterway enabling free navigation 24|7, besides modifying the path of impacted roads in a way ensuring integrated traffic flow between the two sides of the new Canal. “An 800-metre long sector of the Sheikh Zayed Road will be impacted by the project which also includes the shifting of the existing utility lines impacted by the course of the Canal, as well as undertaking lighting and water fountains works on the bridge,” Al Tayer said. Traffic diversions Al Tayer added that the RTA had mapped out a comprehensive plan for the traffic diversion in order to ensure a smooth traffic movement. “The engineering design of the temporary traffic diversion will conform to all specifications of permanent roads in terms of engineering design, leveling of the surface and asphalt, and the provision of sufficient lighting matching to the designed road speed to ensure the safety of all road users. “During the diversion stage, the same number of the existing lanes will be maintained in order to avoid any negative repercussions on the current traffic volumes, thus avert any potential additional congestion or delay as a result of the construction works. The contractor’s work site will be fully separated by means of high barriers to suppress the amount of noise or inconvenience to road users as well as residents of the neighbourhood in as much as possible,” Al Tayer said.

Jumeirah and Al Safa benefits

The RTA will undertake several improvements of the network of main roads intercepting the Canal as well as some improvements of the neighbouring localities such as Jumeirah and Al Safa including the construction of roads on both sides of the Canal to serve the mobility between these communities. Pedestrians will have a free and safe movement through the construction of 4 pedestrian bridges above the Canal, one of them will be a bridge fitted with convenient stores. There will also be dedicated tracks for practicing light sports such as jogging and cycling alongside both banks of the Canal in addition to aesthetic landscaping works on both sides of the Canal including greens, plazas, sitting and relaxation areas, and a cocktail of tourist- oriented projects. Three contracts “The project works of the Dubai Water Canal have been split into three contracts; the first and second one include the construction of bridges above the Canal for the main roads intercepting the Canal i.e. the Sheikh Zayed Road comprising 8 lanes in each direction as well as Al Wasl Road and Jumeirah Road, each comprising 3 lanes in each direction. “The bridges will rise 8.5 metres above the water level to enable a free round-the-clock navigation in the Canal. “The project works also include shifting the utility lines via conduits passing underneath the Canal, besides constructing a multi-tier interchange above Al Wasl Road providing free access and smooth traffic movement at Al Hadiqa Road and Al Athar Road upon the completion of the project,” he added. “The third contract of the project is devoted to the drilling and landscaping works, building four pedestrian bridges linking with both sides of the Canal, and constructing four marine transport stations to ease the movement of the public and encourage the mass and tourist transport as the mass transit means are envisioned to serve more than six million passengers according to the Strategic Plan set for the marine transportation in Dubai,” Al Tayer said. Source: Gulf Times Back to Index

BUY PROPERTY IN DUBAI AND GET YOUR TICKET MONEY REFUNDED

THURSDAY 31 OCTOBER 2013 A Dubai-based developer is offering Indians refund cost of an air ticket if they purchase a property in its Dubailand project. Damac Properties, a private developer, has been airing commercials on an Indian channel that says it will refund the cost of an air ticket to Indians who successfully close a deal in its $2.5- billion Akoya by Damac master development in Dubailand. Selling prices of properties in the project starts from Rs8.5 million. Mumbai-Dubai return airfares are currently priced between Rs20,000 and Rs25,000. Damac has earlier held road shows across Indians cities, stating that there has been a significant interest in its project by Indian investors. However, the current marketing strategy isn’t that opulent as the previously offered: a private island on the Caribbean, a private jet and luxury cars. Indians have purchased properties worth over Dh8 billion in the first half of 2013, compared to Dh9 billion they invested in the entire 2012, Dubai Land Department data reveals. Earlier in May, Ziad El Chaar, Managing Director, Damac Properties, told Emirates 24|7 that Akoya by Damac would resemble the Beverly Hills. “We are planning to develop this master plan to be the Beverly Hills of Dubai… you have important communities around this area [Akoya] but we plan to build this as Beverly Hills,” El Chaar had said. The master development in Dubailand includes a variety of luxury villas and condominiums, each with panoramic views of the Trump International Golf Club – the first Trump course to be operated and managed by the Trump Organisation in the Middle East/Asia. Damac said on Wednesday that the main construction contracts to build 677 luxury villas and 480 apartment units and over 100 other work orders and packages have been awarded. Source: Emirates 24/7 Back to Index

UAE TOURISM AND HOSPITALITY SECTORS TAKE OFF TO A NEW HIGH

SATURDAY 02 NOVEMBER 2013 As the world shrinks with increased connectivity, tourism and hospitality prospects are register an astonishing surge, with increasing numbers of new pathways and sub careers. Students now think of tourism and hospitality as a ‘safe bet’. Education spoke to Fabienne Rollandin, director of industry relations with Laureate Hospitality Education, Switzerland, which has now opened a branch in Dubai to help prepare young executives for the challenges of this burgeoning sector. Hospitality and tourism is one of the fastest-growing sectors in the world. What’s responsible for its exponential growth? Several factors, mostly related to development, have made modern tourism one of the key drivers for socio-economic progress. To name a few: more affluence throughout the world, particularly after World War Two. As people become wealthier, there is more disposable income and also paid time off-work to enjoy travelling during the holidays and vacation time. This has been particularly true for emerging economies where the middle class is experiencing not only growth but for the first time, the ability to travel at will in a faster and cheaper way. Second, improvements in technology: travelling today is much quicker and considerably less expensive. Highways and air travel have helped reduce the time to move in between countries and the internet has made it easier for people to book online and choose budget options for their travelling needs. Third the wide choices, with vacation packages by ‘destination’ travel and ecotourism, which encourages travellers to go to places and in ways that match their interests and values. Is there an essential difference between eastern and western hospitality traditions? I do not think there is any essential difference. Hospitality in western or eastern part of the world is about welcoming people and making them experience a unique hospitality journey. What are the strengths of hospitality and tourism in the Middle East? The growth is happening in this region. According to the United Nations World Travel Organisation (UNWTO), the number of travellers in the Middle East more than doubled, from 24.1 million to 60.3 million between 2000 and 2010. This level of growth is unique in the world and it happened despite the volatility experienced in certain parts of the region. Dubai, for example, welcomed 10 million visitors last year and keeps growing, with its ambitious plan to welcome 20 million visitors by 2020. This growth means investment, which allows innovation in building hotels, innovation in service, international mix and diversity. Factors like powerful branding campaigns on the part of governments to promote their countries and/or cities, religious tourism, and of course, the beauty of the region and the UAE’s positioning as a thriving business hub renders this a sustainable tourism growth.

For a young professional in the hospitality industry, this is an ideal time. With such growth, the industry also demands highly skilled professionals who can support the expansion and demands of tourists coming not only from the region but from all over the world.

Glion and Les Roches’ programmes have been recently recognised by the UAE’s Ministry of Higher Education and Scientific Research (MOHESR) as one of the universities where nationals can pursue an education and get full scholarship (financial support) from the government. Indeed, we are very proud to be part of the UAE’s efforts to professionalise the industry and prepare the country for the increased demand resulting from a dynamic and growing tourism and hospitality industry. Many of our graduates are currently employed in the UAE, excelling in their work and shaping the way the industry is evolving and adapting to current growth challenges and the ones to come as the region prepares for events such as the FIFA World Cup 2022 in Qatar. What are the challenges or weaknesses in this industry? The one that immediately comes to mind is the recent turmoil in the region. However, tourism has proven to be a quite resilient industry and countries affected by the Arab Spring, for example, are showing slow recovery in the last year. Countries which are stable remain very attractive destinations and pull other areas of the region as well - Dubai and Abu Dhabi have brought increased tourism to neighbouring countries as a kind of domino effect. You may also note that intraregional travel accounts for 80 per cent of the total travel, with regional tourists also seeking to stay and enjoy the attractions in the area. In terms of the hospitality industry itself, the industry is making efforts to change the generalised perception that hospitality is more a vocational than a professional choice. This is far from reality. In the case of Glion and Les Roches, our programmes lead to nothing less than a bachelor degree in business administration but are tailored to the needs of the hospitality industry. As more and more members of the general public realise this, and this is a positive trend, and the industry maintains the growth it is expected to generate, we will see the numbers grow. Indeed, we have already seen an increasing growth in the demand for our programmes across the region. What is the most important thing you teach about hospitality during the master class? First, hospitality is about passion: passion to work with people, passion to work hard, passion for service. During this media challenge, we went through different type of challenges such as risk management, managing cost, reservation and revenue management, hygiene fundamentals in order to explain to the audience that our model of education is unique. Our schools, Glion Institute of Higher Education and Les Roches International School of Management (both part of Laureate Hospitality Education network), follow the exceptional Swiss approach to hospitality education, combining theoretical and practical learning as well as professional development.

The curricula is divided into three sections — professional development, entrepreneurial competencies and general education — each one is focused on developing specific aptitudes in order for graduates to be fully prepared to lead and manage teams.

They also look at developing self-confidence and discipline, and students are required to wear business attire to class, which is part of their preparation for successful entry into the professional world. Additionally, courses offer craft-based learning where students get hands- on practical experience to be able to understand the functions they will manage and the operational challenges they will face throughout their careers. What are the strengths a student of hospitality seeking to be successful must possess? In addition to passion, I would say a top-notch, first-class attitude towards service. Our recruiters come to our schools because they know that beyond their excellent academic level, our students have the right attitude with customers: they are humble, flexible, hard-working and pay attention to details. All these soft skills are mandatory if you want to be successful in this industry. Today, a student of hospitality can diversify into IT, human resources, financial management. Walk us through the promising new sub-sectors that have now opened up within this large parent sector. Our hospitality management schools deliver an education in management, focused on the hospitality industry and aligned with the needs of this industry. However, since they are preparing business managers, our graduates are fully prepared to work in many different sectors and industries. Over the last 10 years or so, hospitality higher education has shifted from offering general undergraduate programmes in hospitality management to specialised education in order to respond to the current demand for function-oriented professionals within the field. The combination of these two - a business degree with a focus on different areas of specialisations — allows our students to follow diverse career paths in and outside the industry, from marketing to finance to human resources, in sectors such as luxury brands, entertainment, sports and finance. The hospitality industry continues to be one of the most dynamic in the world. Just to give you some statistics, according to the World Trade and Tourism Council, over the next 10 years, the industry’s total contribution to global GDP is expected to rise by 4 per cent per year, which translates to approximately 69 million new jobs over the same period. (WTTC, November 2011). The same source forecasts travel and tourism’s contribution to global GDP to grow steadily by approximately 3.3 per cent in 2012, despite the current global economic slow-down (WTTC, November 2011). Source: Gulf News Back to Index

FIRST METRO SERVICE LIKELY BY 2019 -END

FRIDAY 01 NOVEMBER 2013 The first Metro rail service is not likely to be flagged off in Doha before the fourth and last quarter (October- December) of 2019. There will be three classes of coaches in each train. Within Doha, trains will run at a speed of 80km per hour, but outside the city limits, the speed would double. Trains will stop for about 90 seconds at rail stations for passengers to alight and board. Within the city limits, the railroad will run underground, while outside Greater Doha, the tracks will be over ground. There will be 105 rail stations and all stations in Doha will be underground. The maximum depth of the Underground Railroad can at some sites reach up to 50 metres. The Katara Cultural Village will have two stations; while there will be one near the Villaggio Mall. There will be a station in the West Bay Lagoon as well, near the Zig-Zag Tower, while Najma, Al Muntazah, Al Sadd and Maither (a sprawling suburb of Doha) will all have stations. Hamad International Airport, the New Doha Port, Equestrian Club, Barwa Village in Al Wakra as well as Al Wakra town will also have stations. The distance between stations is likely to be one to 1.5km, the local Arabic daily Al Watan reported yesterday. Work has already begun on the two major stations: Musheireb and Education City. The former will be the largest junction while the latter will be the second largest. The Musheireb station will have 190-metre long platform and will be located some 30 meters underground. The designs of all stations and related buildings will be based on Arab and Islamic architecture. Traffic is not affected because of the above work, but once work on tunnelling starts, road traffic might be affected due to diversions, the daily said. The government has allotted all the land required for all the rail projects, including Doha Metro, the one that will connect Qatar to the upcoming GCC rail grid and Lusail City light rail. The daily said contracts for the rail projects are being awarded to only those foreign companies that have entered into partnerships with local companies. According to the daily, Metro carriages will have three classes to serve different segments of society. It, however, didn't say if there would be separate coaches for women, which are likely.

Quoting Qatar Rail Company, the daily said the first service of Doha Metro rail was expected to begin only in the fourth and last quarter of 2019, which is six years from now.

Source: The Peninsula Back to Index

ABU DHABI BOOSTS CHECKS ON READY -MIX SECTOR

FRIDAY 01 NOVEMBER 2013 The Environment Agency — Abu Dhabi (EAD) has launched a campaign to limit the amount of particulate matter (PM) released into the atmosphere from ready-mix cement facilities. PM consists of airborne particles in solid or liquid form which comes from vehicles, power plants, other industrial sites and biomass burning, and which is considered an air pollutant. The EAD’s Eltezam (means ‘compliance’ in Arabic) campaign will not only raise their awareness of limiting Particulate Matter release but is also designed to gain the compliance of various industrial sectors, beginning with the Ready-Mix sector. Other sectors EAD plans to target in the near future include the fiber glass, chemical storage and blending as well as the metals industrial sector, a press release issued yesterday said. The EAD works with 160 facilities and outlines the conditions of the environmental permits, specifically targeting the release of Particulate Matter (PM) — a primary by-product from cement-mixing. Razan Khalifa Al Mubarak, Secretary General of EAD, said: “Air quality is one of the agency’s top priorities; we’ve developed an action plan to improve and enhance air quality across the Emirate. The Eltezam campaign is a critical initiative in raising awareness on emission- reduction requirements and standards for industrial emission sources.” EAD held a workshop at the beginning of this month to remind facilities that they are required to adhere to the conditions listed in their environmental permits, specifically the regulations pertaining to the release of PM into the air. Engineer Faisal Al Hammadi, Director, Permitting, Compliance and Enforcement, Environmental Quality Sector added: “We believe that compliance by the Ready-Mix sector is key to addressing the release of PM into the atmosphere for the protection of public health and the environment. We will continue to work collaboratively with all facilities and provide support to facilitate their compliance. However, if facilities fail to comply, we reserve the right to take enforcement measures that may include revoking their permit.” EAD has provided facilities across the Ready-Mix sector a one-month grace period before intensifying inspections to assess their compliance levels. Should facilities fail to comply with the conditions listed on their environmental permit, EAD may take legal action, which ranges from filing a law suit against a facility to revoking an environmental permit, which will warrant an immediate stop of the facility’s operations. Through the ‘Eltezam’ campaign, EAD plans to work with other industrial sectors to address the release of PM going forward. In the meantime, to ensure the Ready-Mix sector is fully aware of the inspections and compliance process, EAD has published a set of standard operating

procedures and guidelines online to help developers, consultants and other stakeholders stay up -to-date with all applicable regulations and permits (downloadable at www.ead.ae).

Source: Gulf News Back to Index

EXPO 2020 WOULD GROW FINANCE SECTOR

SATURDAY 02 NOVEMBER 2013 The UAE finance sector would be boosted if Dubai is successful next month in its bid for the Expo 2020, one industry finance leader told Gulf News. Abu Dhabi Security Exchange (ADX) Chief Executive Rashid A Al Baloushi, said the finance sector would see direct and indirect from the benefits because of the increase in projects “Hosting the Expo means more infrastructure developments and more liquidity into the economy. We would expect an increase in employment and more products and goods to become available,” he told Gulf News in an exclusive interview on Dubai’s Expo bid. UAE residents and business leaders are gearing up in anticipation in the lead up to the winning host city to be announced next month. But Al Baloushi said it is not just about Dubai and the UAE. “The impact of the Expo is not just going to be seen during the event, but before and after as well. The whole region will be able to take advantage of that and put the spotlight on regional investment,” he said. According to Al Baloushi, the UAE and Dubai’s multiculturalism and awareness of international culture and customs makes the emirate “unique.” Current estimates peg that 25 million visitors would head to Dubai if it was to host the Expo 2020, giving ample opportunity for exposure and development in other parts of the country. “If you look at the amount of people that could visit the UAE as part of the Expo you will see investment being made across Abu Dhabi, Dubai, Sharjah, and the Northern Emirates,” Al Baloushi said. Ultimately, Al Baloushi sees the Expo bid as a feather in the cap of Dubai, the UAE, and all Emiratis. Source: Gulf News Back to Index

ABU DHABI’S ESTIDAMA PROGRAMME AT VANGUARD OF GREEN BUILDING REVOLUTION

THURSDAY 31 OCTOBER 2013 Estidama, which takes its name from the Arabic word for sustainability, is the sustainable building framework of Abu Dhabi’s Urban Planning Council (UPC). Launched in 2010, Estidama is widely perceived as one of the most sophisticated frameworks of its kind in the Middle East. The programme is a key component of the Abu Dhabi Vision 2030. To this end, the programme incorporates a fourth pillar of cultural development alongside the traditional three pillars of social, economic and environmental development espoused by other international sustainability initiatives. At the heart of Estidama’s framework is a series of pearl rating systems for the design, construction and operation of buildings, villas and communities along sustainable lines. The ratings – separate versions of which are available for villas, communities and other buildings – provide guidelines across categories including the use of natural systems, an integrated development process, conservation of water, energy and materials, the incorporation of innovative practices and the creation of livable communities. The criteria are assessed across the design, construction and operation of the building’s life cycle. The programme was officially given teeth in April 2010, when a mandate from the Executive Council decreed that all new buildings, including residential communities and villas must obtain at least a one-pearl rating, while all government buildings and villas must obtain at least a two-pearl rating. As of the beginning of last month, Estidama had rated buildings with a total gross floor area of 10.5 million square metres. Of this, 54 per cent is taken up by multi-residence communities and villas. Schools account for the largest proportion of non-residential rated buildings, followed by airport buildings. Some 86 per cent of Estidama rated projects fall within the one and two-pearl rating. However, in September the UPC announced it had awarded a three-pearl design rating to Abu Dhabi Airports Company’s Midfield Terminal Building project, one of the emirate’s flagship construction developments. The rating was awarded due to the specification of an appropriate and climate-responsive building form and façade, featuring high-performance double glazing to reduce solar glare, and special walls and roof construction to minimise heat gain.

The terminal building, slated for completion in 2017, will also achieve substantial energy demand reductions via the use of a highly efficient lighting system and an adaptive and effectively controlled heating, ventilation and air conditioning system.

More recently, UPC and Estidama last week awarded a three-pearl rating to 10 newly constructed Abu Dhabi Education Council (Adec) school facilities, at a ceremony in Al Ezzah school in the Baniyas area. The 10 school facilities – five in the capital and five in Al Ain – were constructed using sustainable building materials and became available for use last month. The new facilities are designed to significantly reduce energy and water consumption, improve indoor air-quality conditions for students and incorporate better waste management practices. The newly accredited school facilities are the first part of a project that will see a total of 61 school facilities built to the three-pearl standard, with a view to admitting students by September next year, says Edwin Young, Estidama’s programme manager. Estidama is also advising Adec on a number of school refurbishment projects to introduce greater sustainability practices. Educating the construction industry about Estidama’s ratings, and sustainability in general, is perhaps the greatest challenge facing the programme, says Mr. Young, acknowledging it has taken some time to be fully understood and taken on board by the construction industry. “Estidama is a very complex third-generation rating scheme that moves beyond other global rating systems. However, this is a first generation green society that is just beginning to learn about sustainable practices,” he says. In addition to its rating system, training is one of the most important of Estidama’s activity strands, Mr. Young adds. “We’ve trained over 8,000 people in the construction sector. We do training programmes for contractors, consultants and operational training,” he says. “Trying to spread the word is sometimes very difficult but we’ve moved on a lot in the past three years.” Source: The National Back to Index

UAE LEADS THE WAY IN GREEN BUILDING PRACTICE

THURSDAY 31 OCTOBER 2013 As the Kuwait Green Building Forum came to a close yesterday, governments and private sector stakeholders in the Middle East are increasingly embracing the challenge of green development. The move is part of efforts to curb the excesses of the past and move forward to a more sustainable future. One of the key strands in this approach is a sharper focus on building practices, especially here and in Qatar where construction is booming. An increased emphasis on green building is coming not just from the region’s governments, but also from developers, who in turn are responding to rising sustainability benchmarks set by large corporations from both outside and inside the region. Perhaps the most prominent recent example of governments’ new focus on sustainable building practices is the new Dubai Electricity and Water Authority (Dewa) sustainable building in the Al Quoz area, the largest government building in the world to secure the US Green Building Council’s Leadership in Energy and Environmental Design (Leed) platinum rating. Opened in February, the building has become an international showcase for sustainable building practices, using technologies such as low-power LED lights and automatic lighting control systems with occupancy sensors, an on-site 660KW solar power plant and a grey-water treatment plant and sewage treatment plant facility, to drastically reduce electricity and water consumption. Such high-profile buildings are not confined to the UAE, or the Government sector. Other flagship green building developments in the wider region include Qatar’s Barwa Financial District, where each tower has undergone a solar impact study to optimise shading effectiveness and reduce cooling costs, and the King Abdullah Financial District in Saudi Arabia, which will become the world’s largest green development project and first Leed-certified district worldwide. However the UAE is currently at the forefront of the green building movement in the Middle East, accounting for more than two thirds of the 1,236 Leed-rated projects in the GCC. Qatar has 190 registered Leed-rated projects, followed by Saudi Arabia with 158. Bahrain, Kuwait and Oman have 51 Leed-rated projects between them. It is perhaps no coincidence this country’s and Qatar’s leadership in green buildings within our region coincides with the development of the two nations’ own unique green building rating systems to run alongside Leed and other international systems such as the Building Research Establishment Environmental Assessment Method.

Abu Dhabi’s Estidama programme, launched by the Urban Planning Council in 2008, is widely held up as one of the most sophisticated green building frameworks in the region. The programme’s pearl rating system has already been used with more than 230 developments, occupying a gross floor area of more than 10 million square metres, and is mandatory for all new building projects here. The Qatar sustainability assessment system was launched in 2009, aimed at creating a sustainable building environment that address the economic and social development and environmental needs of the country. The Government of Dubai has also shown initiative in the green building sector. The Dubai Municipality Waste Management Department issued mandatory guidelines for waste management in shopping centres last year. Meanwhile, its Green Building Regulations and Specifications, introduced as a voluntary code in 2011, will be applied to all buildings in the emirate from next year. While almost all new buildings in the UAE are built with sustainability principles in mind, the upgrading of older buildings that are already being leased to meet sustainability targets remains a challenge, according to Saeed Al Abbar, the vice chairman of the Emirates Green Building Council. “Globally you see a gap between the incentives for the tenant and the landlords, as any investment that the landlord puts in to save energy will initially only benefits the tenant. Thus the landlord will not have as much incentive to make an additional investment,” he says. Dubai’s Supreme Council for Energy has launched an initiative to increase incentives for landlords to retrofit existing older buildings to make them more sustainable and cost effective, whereby landlords will pay for retrofits out of the savings that they produce, says Mr. Al Abbar. Outside of the UAE there has been little in the way of binding regulation in the area of sustainable building, according to the international property consultants Jones Lang LaSalle (JLL). “The limited progress to-date is due mainly to a lack of legislation, the absence of any discernible financial premium, the heavily subsidised energy, water and waste disposal costs in the region as well as the limited awareness of environmental issues,” JLL said in its investor sentiment report for the Middle East and North Africa region last month. A lack of knowledge among tenants in this country is still a key obstacle to the development of green buildings here, says Mr. Al Abbar. He stresses that the issue is still a new one in this country and the region, and tenants will “vote with their wallets” once they begin to realise the savings that green buildings can offer. While government initiatives will drive the adoption of sustainable practices in the construction sector, the take up of green building practices will mostly be spurred by the evolving demands of large corporate clients looking for sustainable buildings that are more cost effective to run, according to George Kostas, the chief executive of Majid Al Futtaim Properties. Mr. Kostas cites the international bank Standard Chartered, which had opted to build its own headquarters in Downtown Dubai and a second building in the Dubai Multi Commodities Centre free zone, to comply with its own internal targets for sustainability, despite the availability of existing office buildings in prime locations across the emirate.

“I think we’re going to see more examples of this phenomenon, which will drive demand for more sustainable, greener buildings in the local market. These guys will pay to get the sort of facility that they want and they’ll ignore older, more redundant buildings. It’s just going to take time,” Mr. Kostas says.

A survey on property investor sentiment in the Middle East released by JJL last month found 63 per cent of investors would pay a sustainability premium of up to 10 per cent to acquire a green building, providing it could be demonstrated it would provide lower operational costs in subsequent years. However, the survey noted that a sustainable building concept in the wider region remains limited, and that the trend to fully embrace the need for more sustainable property will take some time. Source: The National Back to Index

ABU DHABI’S ICONIC ETIHAD TOWERS SCOOPS FIVE AWARDS

THURSDAY 31 OCTOBER 2013 The iconic Etihad Towers scheme on the Abu Dhabi Corniche has scooped five awards at the Arabian regional competition of the International Property Awards. The mixed use tower complex developed by Sheikh Suroor Projects Department (SSPD) will go on to compete in the grand final of the International Property Awards global competition taking place in London in December. The five towers development received awards for Best Residential High-rise Development in Arabia, Best Commercial High-rise Development Arabia, Best Residential High-rise Development in Abu Dhabi, Best Commercial High-rise Development Abu Dhabi and Best Mixed-use Development Abu Dhabi. Richard Foulds, the head of property at Etihad Towers, said: “This recognition bears testament to Etihad Towers’ steadfast commitment to excellence, as well as the high standards we apply to every aspect of our development.” The judging panel consisted of approximately 70 professionals including Andrew Panting, the director of operations for the British Property Federation, Peter Bolton King, the global residential director of the Royal Institute of Chartered Surveyors (RICS); and Christian Morris, director /owner of architectural firm Yotomo. Etihad Tower 2 was this week named as the world’s ninth tallest residential building by database Emporis. Source: The National Back to Index

SKY GARDENS PROPERTY LAWSUIT IN DUBAI STARTS TRIAL AT DIFC COURTS

SUNDAY 27 OCTOBER 2013 The lawsuit over the sale of Sky Gardens, one of the most notorious disputes arising from Dubai’s property crash in 2008, finally comes to trial today. The education provider Taaleem, which brought the case against one of its shareholders, the Dubai-based investment firm National Bonds Corporation (NBC), and Deyaar Development, will be heard at the DIFC Courts. The case concerns a series of transactions between 2008 and 2009 involving the luxury residential complex in the DIFC. The Courts have scheduled nine days for the trial, the longest period assigned since they began operating in 2006. The lawsuit, filed with the DIFC Courts in June 2010, stems from the Dh1.64 billion acquisition of Sky Gardens in mid-2008 by a special purpose vehicle of Amlak, the Islamic home finance company, from First Dubai Real Estate, the developer. A tripartite deal between Taaleem, NBC and Amlak resulted in Taaleem acquiring a 33 per cent stake in the development, which would later be resold for profit, according to the education provider’s claim. NBC financed the acquisition. In its claim, Taaleem said Deyaar signed an agreement later that year to acquire its stake at a premium, thereby assuming Taaleem’s debt to NBC. Taaleem also alleged that Deyaar subsequently tried to rescind and terminate its acquisition, as property valuations in Dubai had begun to decline rapidly. Taaleem is represented by Hogan Lovells, while NBC and Deyaar are represented respectively by Brown Rudnick, and Afridi & Angell. The trial, which Sir David Steel will preside over, is expected to run until November 7. A judgment could be handed down by the end of the year. Source: The National Back to Index

CALL TO ROOT OUT FRAUD AND CORRUPTIO N IN GLOBAL CONSTRUCTION INDUSTRY

MONDAY 28 OCTOBER 2013 The UAE can learn lessons from a report into fraud and corruption in the global building industry. The report says it must be eradicated to keep the sector growing. Time for a New Direction: Fighting Fraud in Real Estate and Construction, published by consultancy Grant Thornton, calls for urgent action on a problem that is estimated to cost companies from 5 to 10 per cent of revenues, or about US$1 trillion (Dh3.67tn) worldwide. “More companies need to recognise that fraud and corruption has a real cost,” said Danny McLaughlin, partner and head of the fraud and forensic division at Grant Thornton UAE. “Corruption and the payment of commissions is often seen as the cost of doing business. This does not have to be the case.” Grant Thornton said the UAE is not exempt from fraud threats. It is a pervasive issue and can cost business greatly. With Dubai making a strong case to host Expo 2020 and Qatar preparing for the Fifa World Cup in 2022, there has been resurgence in building in the GCC. The report followed research in Australia, Canada, India, the US and the UK. It said fraud and corruption posed significant threats to building companies’ finances and reputations, and could hinder growth. It also recommended measures to tackle the problem. Building companies should ensure they are up to date with information technology. Frauds should be prosecuted as a deterrent and companies should introduce an internal process to find the best way of dealing with the problem. “In business, information technology and the internet offer both threats and opportunities,” Mr. McLaughlin said. “Better access to information and data offers great improvements in efficiency and obtaining value for money, but fraudsters can also misuse such technology. “From a business perspective, the use of data analytics can help not only to identify and thereby prevent fraud, but also allows companies, particularly in the construction sector, to spot poor procurement or contracting practices.”

The report says with the building industry continuing to recover from the global financial crisis, incidence of fraud will also increase. Companies became more diligent with their finances during the downturn but this level of prudence is now more difficult and arguably less of a priority, said Grant Thornton. “As a first step, boards should get the subject of fraud on their agenda and board members and non-execs should take real ownership of the issue,” Mr McLaughlin said. Source: The National Back to Index

TWOFOLD RISE IN DUBAI INVESTMENTS’ QUARTERLY PROFITS AS INVESTMENTS AND RENTAL EARNINGS SOAR

THURSDAY 31 OCTOBER 2013 Dubai Investments’ profits nearly doubled in the third quarter, thanks to higher rental income and improving investment valuations. . The conglomerate said yesterday that shareholders’ quarterly profit rose to Dh161 million, up from Dh81m last year. Rental incomes amounted to Dh141.1m, up from Dh115.8m last year. The valuation of its investments rebounded to Dh21.1m from a loss of Dh4.5m last year. For the first nine months of the year, earnings reached Dh531m, more than double last year’s figure of Dh252m. Khalid bin Kalban, Dubai Investments’ chief executive, said the strong results attested to the value and growth potential of its diversified portfolio. “With the upswing in the economic and investment climate in the UAE and the region, we expect the momentum to continue for the rest of the year,” he said, adding the conglomerate was exploring investment opportunities in diverse sectors across the region. Its consolidated total earnings of Dh1.9 billion for the first nine months of the year outpaces the Dh1.7bn it made for the same period last year. At the end of September, Dubai Investments’ net worth increased to Dh8.8bn. For the nine-month period, its annualised return on equity was 8.08 per cent, up from 3.98 per cent in 2012. Dubai Investments, in which the Investment Corporation of Dubai owns an 11.5 per cent stake, has about 40 subsidiaries and wide-ranging joint ventures in construction, food and dairy, industrial and commercial property developments and real estate management. Last month, the conglomerate’s real estate arm said it had started work on a series of new residential and commercial projects in Mirdif, Meydan and Jumeirah in Dubai. The announcement of the new projects came as the firm said it had sold or leased most of the residential units in its Ritaj project.

The development, located in Dubai Investments Park, has more than 2,000 apartments in 11 blocks across a 2.58 million square feet plot. DIC shares closed unchanged at Dh2.23 in trading yesterday. The stock has surged 162 per cent since January. Source: The National Back to Index

ABU DHABI INVESTMENT AUTHORITY SET FOR BIG FRENCH PROPERTY DEAL

THURSDAY 31 OCTOBER 2013 Abu Dhabi Investment Authority (Adia) is in advanced negotiations to buy a €750 million (Dh3.75 billion) property portfolio from the Swiss bank UBS. According to filings made with the French competition commission, the Abu Dhabi sovereign wealth fund, through its subsidiary Tamweel view European Holdings, is in talks with the UBS- owned Docks Lyonnais to sign what could be the biggest deal in French commercial real estate this year. The portfolio includes the 24,000 square metre 19th century 6-8 Boulevard Haussmann office blocks in the 9th arrondissement of Paris currently let to the French bank BPI as its headquarters. The portfolio also includes a 65,000 square metre office block in Nanterre, a town in the western suburbs of Paris in which the healthcare-product manufacturer Kimberly-Clark, the telecoms equipment maker Alcatel, and the regional health authority have offices. It also includes a business park in Antony, a town in the southern suburbs of Paris and some shops in the Grolée area of Lyon. Both Adia and UBS declined to comment. “Gulf-based sovereign wealth funds tend to invest overseas in a quest for diversification so that they don’t have all of their eggs in one basket,” said Fadi Moussalli, the head of Jones Lang LaSalle’s international capital group. “London is traditionally the number one destination for this capital but Paris is probably the second most popular destination,” Mr. Moussalli added. “However, at the moment we are also seeing increased interest in southern European property in Spain, Italy and Greece because funds believe properties there currently offer more value for money.” If the deal goes ahead, it would mark Adia’s largest direct investment to date into French property. In September, the sovereign wealth fund bought the Australian hotel group Tourism Asset Holdings giving it control of 31 properties across the country. And earlier this year Adia was reported to be in negotiations to buy 42 Marriott-branded hotels across the United Kingdom from the Royal Bank of Scotland in a US$990 million deal. The news of the French deal comes just days after a Mubadala subsidiary, Mubadala Real Estate & Infrastructure, said it was looking at investing in property in the United States, Europe and emerging markets as it moved away from developing schemes in Abu Dhabi.

On Monday, Ali Eid AlMheiri, the executive director of Mubadala Real Estate, said a new strategy would be in place by the end of the year for the company, indicating how much it planned to invest.

Source: The National

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