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OCT 6 – DAY ONE $OCT 7 – DAY TWO$ OCT 8 – DAY THREE $ OCT 9 – DAY FOUR 2008 48 NO SIGN OF SLOWDOWN All roads in Dubai lead to Cityscape this week and the traffic jams were the only Contents sign of slowdown yesterday, as thousands of visitors flocked to the world’s largest B2B real estate investment event, breaking all previous day-one figures. 9 Cityscape: welcome Personal perspective on the week’s networking and awards events 10 Update: exhibitor news Latest updates from the show floor and key emerging markets 23 Focus: financial The potential impact of the 2010 GCC Currency Union 24 Line-up: conference programme Analysis and debate of the industry’s hot topics 27 Line-up: speaker profiles Leading industry experts share their market insight 34 Review: day one Round-up of action from the conference sessions and show floor 43 Focus: industry report Mazaya Real Estate Index activity report on Saudi Arabia 45 Focus: Cityscape Intelligence Jones Lang LaSalle’s MENA Investor Sentiment Survey 48 Overview: Saudi Arabia Destination market overview 53 Event: awards Winners of the 2008 Cityscape Architectural Awards 58 Focus: Oxford Business Group The 2008 exhibition and the “US bail-out already region’s leading players continued He elaborated by saying that Syria’s investment and development focus conference was officially opened feels like last year’s story.” to unveil a raft of high-profile it was important that the region’s by His Highness Sheikh Hamdan He also referenced the projects following hot on the key players educate buyers about bin Mohammed bin Rashid industry’s eternal buoyancy as heels of Nakheel’s tallest tower the changing market environment, Meraas launches Al Maktoum, Crown Prince of a key factor. “You want to be announcement yesterday. and readjust ROI expectations. Dubai and Chairman of the optimistic, it’s the business DAMAC Properties reconfirmed “But I don’t see real estate going Jumeira Gardens Executive Council of Dubai. you’re in. However, for the its confidence in the UAE market, down in value,” he commented. US$95 billion ‘city within a city’ for Dubai According to the organiser, moment there is only uncertainty, guaranteeing 40 percent rental Jonathan Garner, a global IIR Conferences & Exhibitions, and many of today’s speakers returns on its new Executive emerging markets strategist for Meraas Development, a newly launched Dubai-based real estate day one visitor figures broke will hopefully help us peer Suites project in Business Bay the UK’s Morgan Stanley was also development company, has announced the launch of its US$95 the 2007 record and there through the sand in search and Ali Kolaghassi, vice chairman upbeat, particularly about the billion Jumeira Gardens master planned community project. were a number of multi-billion of light,” said Dimbleby. and CEO of Jordan’s Saraya prospects of emerging markets, The mixed-use, freehold and leasehold development is being dollar announcements to This year’s conference sessions Holdings said that the UAE is echoing some analyst comment positioned as an integrated ‘city within a city’, with the team of launch the show including also feature an interactive “well placed to weather the that the current slump is a cyclical architects and planners tasked to devise bold designs that will help Meraas Development’s US$95 keypad for instantaneous storm and will rebound faster downturn and market structures redefine Dubai’s visual character and cityscape. billion Jumeira Gardens delegate polling on a range of than most other economies.” would emerge largely intact. Jumeira Gardens will be home to some of the city’s largest towers, master planned community. issues. The first question was which Meraas says will set standards of green building design. Veteran British broadcaster, ‘would things look brighter for Sina Al Kazim, CEO of Meraas Development, said that the project and political commentator, real estate projects within the will be “a community that enriches the lives of everyone living and Jonathan Dimbleby chaired next six months?’ A total of 53 working within its borders”. the opening Real Estate percent of delegates said there To be constructed over a 12-year phased timeline, Jumeira Leadership Strategy Summit, would be little change in the Gardens will see the redevelopment of an area north of Sheikh Zayed addressing a packed audience market but 29 percent believe Road, between Al Diyafa Street and Safa Park. of regional investors, developers that banks will curb lending. Construction of Phase 1 has already begun, and the first buildings and industry professionals. Despite industry-wide are due for handover in the fourth quarter of 2011. Final completion Commenting on the daily acknowledgement of established of Phase 1 is set for the fourth quarter of 2013. Stand PB10 changing scenario in the market issues and a slowdown Turn to page 10 for the full story global markets he said that in some emerging markets, the welcome SHOW

WELCOME TO CITYSCAPE DUBAI 2008 Adrian Smith & Gordon Gill, winners at the Cityscape Architectural Awards Ken Jamieson On behalf of the exhibition and showcase got off to a flying events team, may I welcome start on Sunday 5th with the you to day two of Cityscape traditional curtain-raiser, the Dubai. As expected, yesterday Cityscape Dubai Golf Classic. was a very busy first day and This event provides the ideal we are looking forward to an opportunity for international equally rewarding second day. participants to meet and Due to the immense size of network in the friendly and the exhibition and its various informal environment that high-profile conferences, such a fun activity creates. Cityscape Dubai often Once again, the golf presents a challenge to many tournament proved to be participants and attendees a great success with over to meet and network with 120 real estate industry prospective business partners, professionals competing in industry colleagues and peers. two-player teams for a range To address this issue, my team of prizes and the accolade and I play an increasingly of being the Cityscape Dubai important role at Cityscape, Golf Champions. This year’s in creating a range of special tournament was sponsored events and activities designed by Shaikh Holdings who have to get groups of people to approached the event with great meet and network through a enthusiasm and excitement variety of different activities. to ensure that the tournament In developing a series of participants had a truly special events and activities, memorable and enjoyable day. Over the last few years the Over 850 industry professionals Cityscape Dubai have the Village, one of the inspiring what we are trying to create is a Played on the stunning Cityscape Architectural Awards from the emerging markets opportunity to not only benefit developments from the Dubai set of multi-layered experiences Dubai Creek Golf and Yacht have developed into the world’s attended to celebrate and from attending the exhibition Properties Group. Undoubtedly, designed to ensure any visitor Club course, the afternoon premier recognition vehicle acknowledge industry and various conferences, but this year will present a number or attendee of Cityscape is able competition allowed all players for the emerging markets. The figureheads who have also to network and meet future of new ideas and suggestions to network and develop future to enjoy the excitement, awards recognise excellence in surpassed the already high business associates at a variety for special events and activities business opportunities with friendly competition and architecture and design from standards of the industry. of other networking events.. for next year. By developing other visitors and attendees. camaraderie that can only be the emerging regions of the Tonight, we have the Finally, on Wednesday and integrating these new The key to success is to experienced by playing with Gulf States, the Middle East, third of our special events evening we have the Cityscape activities into the special deliver a series of memorable fellow real estate industry peers Asia, Africa, South America and and activities, the Cityscape Cultural Evening. This is a new events programme we hope to events which promote and and colleagues. A resounding South and East Asia and Latin Cocktail Reception. This event event designed specifically offer a comprehensive range encourage personal interaction success, the tournament is America. The awards seek to has been designed to bring for our international guests of special events and activities between attendees. This set to remain a key feature of recognise and reward real estate together key participants of to savour a truly authentic for all Cityscape attendees. requires detailed and careful Cityscape Dubai’s portfolio of industry professionals, projects, Cityscape for a final evening Arabic evening of fine food On behalf of my planning to ensure the range special events and activities. developments and architects of fun and excitement. Set and entertainment. Set in the colleagues, I wish you a of activities meet with the Last night, we had the that have shown outstanding in the specially designed stunning Cityscape marquee productive and rewarding aims and objectives of the second of our special events designs, performance, vision Cityscape marquee and along the Mina A’Salam hotel Cityscape Dubai 2008. profile of Cityscape attendees. and activities, the 2008 and achievement in key overlooking the stunning beachfront, this evening will When developing these Cityscape Architectural emerging market and project Burj Al Arab, this event will allow delegates to meet, Ken Jamieson events for 2008, we have tried Awards. This event is areas. The awards, and seals once again be a highlight of network and enjoy traditional Chief Xperience Officer and to place the consumer as a designed to bring together of distinction, were presented the week’s social calendar. Arabic hospitality. The venue Group Director – Special Events key performer within all of the the cream of the emerging at an elaborate and lavish So, by creating an integrated has been specially created and activities. This was suitably market real estate industry gala dinner held at the Grand programme of special events themed along traditional lines demonstrated when this year’s for one night of celebration. Hyatt Dubai, last night. and activities, attendees to and is sponsored by Culture

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Dubai 2008 $ Cityscape official show daily $ 9 NEWS update

Solidere unveils Al Zorah Riviera Lebanese developer announces first emirates based project in Ajman

DUBAI – Solidere International announced its Al Zorah Riviera residential complex at Cityscape Dubai yesterday. Designed by the world-renowned German architect Axel Schultes, Al Zorah Riviera is the first residential project to be announced within the US$60 billion Al Zorah City, the largest development launched to date in Ajman. Al Zorah Riviera will reflect outstanding design elements and the natural ambience of Al Zorah City and will be strategically located on the sandy beaches of Ajman next to the downtown district of the city, MERAAS LAUNCHES (also known as the Balad) offering direct access to the beach with stunning views of the sea, old town fort and marina. The project comprises six towers offering 1,400 JUMEIRA GARDENS to 1,500 freehold residential units in an attractive mix of low and high-rise buildings ranging from 22 to Mixed-use project in Dubai will feature 45 floors, with studios, one, two and three-bedroom apartments. future iconic landmarks Residents of each unit will enjoy unobstructed views of the Arabian Gulf and will have direct DUBAI – Continued from cover. Meraas Development, a Dubai-based real access to white sandy beaches. The towers will be estate development company with an innovative approach to sustainable surrounded by five-star resort hotels, marinas and urban planning, architecture and design, announced the launch of open public green spaces. Stand PG10 the US$95 billion Jumeira Gardens in Dubai, its first master planned Investment guarantee community, at Cityscape Dubai yesterday. DAMAC launches Executive Suites with The mixed-use, freehold and leasehold development will be an integrated ‘city within a city’, with distinct neighbourhoods linked by a 40 percent rental guarantee diverse network of transportation options, and will comprise low, medium and high density areas with business, residential, retail, leisure and Bloom’s sunny outlook DUBAI – DAMAC Properties has underlined the recreational components. Multi-use, community-oriented investment potential of the UAE with its own Sustainability and appeal for urban living were overriding concerns for assurance – launching Executive Suites, a serviced planners and architects, who also were encouraged to devise bold designs development expected to do well in office tower on the first day of Cityscape Dubai, with that would help redefine Dubai’s visual character and cityscape. Some new growth markets a 40 percent rental return guarantee over three years of the city’s largest towers will be located in Jumeira Gardens, which will for the project. set standards of ‘green’ building design, through features such as passive DUBAI – Bloom Properties CEO, Dr. Hani Shammah Speaking at the launch, Peter Riddoch, CEO, energy generation, shaded foliage-covered atriums and roofs, heat reducing has stated that a selection of fast growing markets DAMAC Properties Dubai said: “We believe Dubai cladding and shading fins. will remain attractive to property developers, has the potential to become the most expensive All of the holding company’s collective resources will contribute to the especially as the demand fundamentals of these commercial real estate destination in the world in Jumeira Gardens project. “We will leverage our subsidiaries’ expertise in countries remain strong. the coming years. The demand and prices for office healthcare, education, retail and leisure to complement the competencies “We are particularly bullish about Abu Dhabi in space is increasing; a recent report by Gulf News of Meraas Development in building a district of unrivalled comfort, addition to select markets in the MENA, South East stated a price increase of 74 percent over last year. convenience and community,” said HE Abdulla Ahmad Al Habbai, Europe and South East Asia regions. The current And, according to Colliers International, today Chairman of parent company Meraas Holding. global turmoil will certainly affect developer and Dubai is ranked third in terms of global office real Sina Al Kazim, CEO of Meraas Development, said that the project buyer bank lending behaviours across these markets, estate construction activity, behind Moscow “addresses every element of urban living through comprehensive planning, however this should not divert us from the fact and Shanghai.” adopts sustainable building practices, implements cutting-edge designs that some of these countries have medium-term He added: “In line with these reports and based and engineering, and always focuses on people, to ensure Jumeira Gardens structurally undersupplied property markets.” on our research, we at DAMAC Properties are so is a community that enriches Shammah says that community-orientated confident about the market that we are assuring a 40 the lives of everyone living and developments specifically, have experienced percent rental return on the property over the three working within its borders.” unabated interest over the last year, and this trend is years following delivery. We are offering this incentive Jumeira Gardens will be built likely to continue as investors seek out convenience to our customers as we forecast positive growth over 12 years, across an area north in terms of location and amenities. trends in the coming years where the market will of Sheikh Zayed Road between Al Following the success of its Bloom Gardens still be bullish and we are aiming to supply for the Diyafa Street and Safa Park. There development situated on one of the last stretches growing demand.” will be several major parks and of land on Abu Dhabi’s Eastern Mangrove Corniche Executive Suites’, located in Business Bay – the a number of smaller community Road, Bloom is launching the second phase of most-sought-after business hub of Dubai – will offer parks to ensure extensive this development, consisting of Andalusian-style customers a completely new concept in working. green areas. A large canal will villas and townhouses in addition to luxury low rise Customised to suit personal taste and designed run through the heart of the apartments. Stand MC10 with access to full business services and facility for development and will flow, at one effective functioning of an office, the tower is being end, into the Business Bay Canal positioned as an ideal location to work among the and, at the other end, out to sea. company of like-minded people. Stand RN10 Construction of Phase 1 has already begun, and the first CITYSCAPE SOUNDBITE... buildings are due for handover in the fourth quarter of 2011. Final MIMIT BHUTA completion of Phase 1 is set for the fourth quarter of 2013. Director, Ajit Bhuta & Associates Stand PB10 What are you hoping to achieve at Cityscape Dubai? We are hoping to achieve a new clientele base, establish joint ventures, meet new contractors and vendors as well as embark on partnerships for new technologies and investments to enable us to add more landmark projects in the other Gulf regions as well as India

10 $ Cityscape official show daily $ Dubai 2008 update NEWS

Anana Tower ACCOLADES FOR TAMEER SKYSCRAPER Atkins Dubai wins design competition for 600-metre tall tower

DUBAI – Tameer unveiled the competition-winning design of its 600- metre-tall skyscraper project on Sheikh Zayed Road in Dubai yesterday. A global design competition brought several global offices of the design firm Atkins – from Dubai, London and Hong Kong – into competition against each other, with the winning bid coming from Atkins Dubai. CEO of Tameer, Ghassan Sakhnini, said that the design of the Anana Tower represents a convergence of art and culture, with a world-renowned art gallery at the heart of this 100-storey building, which will sit at the foot of ‘New Dubai’. “Like Dubai itself, great art comes from great vision. Anara represents the future The design also incorporates the latest environmental considerations and will adhere to LEED of what is already the most future-forward certification requirements. metropolis in the world,” said Sakhnini. The company also revealed its Podium project yesterday. This mixed use development boasts The tower will house a mix of one, two a 33-storey media screen façade – the world’s largest LED screen – which will be visible from and three-bedroom apartments as well as 1.5 kilometres away. penthouse suites. Along with the art gallery The Podium project will be developed in the Majan district of Dubailand, and offer a it will have a spacious retail outlet and a powerful medium for advertising, messaging and art, when completed in the third quarter of five-star boutique hotel. 2011. Stand 2A10

Dubai 2008 $ Cityscape official show daily $ 11 NEWS update

UP’s retail focus Five million square feet of retail space planned

DUBAI – Union Properties is showcasing its current developments: Index, Limestone and its signature MotorCity project at Cityscape Dubai. The company has announced that it will develop an area of five million square feet of high street retail, commercial and hospitality space in MotorCity, a development based on a unique automobile and motor sport theme that includes residential, business and leisure opportunities. The project’s construction has commenced and is due for completion in 2010. “We are delighted to announce the development of the unique high street retail, commercial and hospitality area within MotorCity,” said Simon E. Azzam, CEO of UP. “The new development will include a total of 11 buildings that will stretch through MotorCity.” “Business and leisure are important factors that enhance any development and in the case

of MotorCity, the new areas will complement Dr Saleb Al Habib the existing residential, commercial and leisure components,” commented Azzam. “MotorCity is our latest addition to UP’s brands, New enterprises it is in fact ‘a city within a city’ with five project PAFILIALAUNCHES components that include Dubai Autodrome, F1-X Dubai, Business Park MotorCity and its two for Jiwar residential components of UPTOWN MotorCity and Three new companies launched to Green Community MotorCity.” promote real estate development, With easy access from the MotorCity interchange, MINTHIS HILLS the new district will stretch through MotorCity. The property finance and hotel management buildings along this stretch will vary from four to 10 storeys in a total built-up area of five million square SAUDI ARABIA – Saudi-based Jiwar Real Estate feet, and total leasable area of 2.25 million square Management & Marketing, the marketing arm of the feet with 4,000 basement parking spaces and 800 WOODS IN CYPRUS Saudi-based Bin Laden Group, announced the launch surface parking spaces. Stand 3B30 Bagot and Lovejoy London create of three new companies at Cityscape Dubai yesterday. The first company specialises in the area of real eleven villa designs estate development, the second in the area of property finance and the third related to hotel management. CYPRUS – Traditional Cypriot architectural values and styles have been Dr. Saleh Al Habib, CEO of Jiwar Real Estate CITYSCAPE SOUNDBITE... retained in the latest housing development by Pafilia. Located in Tsada Management & Marketing, said: “This move comes village, between Pafos and Polis, Minthis Hills is a private residential amid efforts to further promote our company’s growth RAZA SIDDIQUI complex that stretches across 4.9 million square metres of land, with just and to leverage opportunities provided by the promising 100,000 square metres being built on. real estate sector in the region. We aim to expand our Executive Director, David Blackwood-Murray, director of Lovejoy London, creators of the business to provide an integrated property group, with master plan, explained: “We wanted to integrate the architecture with the specialised divisions in sales, marketing, real estate Dubai Lifestyle City landscape, utilising local natural materials, whilst giving a sense of privacy development and finance, and hotel management.” What are you hoping to achieve at Cityscape and community. By working with the natural assets and ecology, we are Dr. Al Habib added: “We look forward to Dubai? Having the privilege of being the developing a country estate that celebrates nature, giving us the opportunity establishing a real estate development company only property developer that JW Marriott has to replant and replenish and maintain what is special to Cyprus.” with a value of US$133 million, headquartered in partnered with to provide the ultimate in There are 11 villa designs, with another to be announced shortly. These Jeddah with branches across the main cities of the luxurious ‘branded living’, we hope to be able to include three, four and five-bedroom villas, three-bedroom bungalows and Kingdom. This company will focus in various areas, showcase the world-renowned JW Marriott two and three-bedroom junior villas, with plots starting from 1,000 square including engineering and design for the residential hospitality, luxury and comfort that makes metres and costing upwards of US$1.4 million. and commercial projects, conducting studies to Dubai Lifestyle City the place for ‘haute living’ Rob Steul, principal at Woods Bagot, said: “We spent a lot of time identify the locations of the residents and commercial studying Cypriot vernacular architecture, particularly the traditional stone complexes, in addition to real estate development houses and buildings in the mountain villages. These buildings were and management; as it is projected to commence its perfectly suited to their climate and landscape and developed over the operations early next year.” CITYSCAPE SOUNDBITE... centuries, and we wanted to use these building techniques in the house Dr. Al Habib explained that the Saudi market has designs. We took the main elements of stone walls, courtyards, natural witnessed a significant growth in the area of real DR. MOHAMMED HADDAD ventilation, single pitched roofs, etc. and reinterpreted them in a modern estate finance; as it valued US$1.07 billion last year, way. While contemporary in style, the houses fit seamlessly with the and it is expected to reach US$13.3 billion by 2010; CEO, KM Holding environment as well as the traditional architecture.” Shaded courtyards, while the value of construction projects is expected What are your expectations for Cityscape natural light and ventilation are all utilised and other eco initiatives have to reach US$133.5 billion in 2010; as the real Dubai? Dubai is becoming the region’s property been taken, including water recycling and the planting of around 50,000 estate finance is one of the contributing factors in the hub and, as is the case every year, we feel indigenous trees and other plants. Stand RQ01 growth and development of the real estate industry. that Cityscape Dubai will result in even more Stand 2A10 investments and deals. Many people come from all around the world to Dubai to find out about the latest developments, and this is what we will focus on, informing them of our latest news and giving them the information they need. More importantly, we will also guide them to make better investment choices so they can realise their desired profit level

12 $ Cityscape official show daily $ Dubai 2008 NEWS update

CITYSCAPE SOUNDBITE... Dubai needs ABDULLAH AL MAJED, Vice Chairman, Tanmiyat Group public What do you think will be this year’s hot topics? The issue of sustainability, both in terms of the economy and the environment has been transport a hot topic in the regional real estate sector for some time now and will likely feature prominently in discussions at Cityscape this year. Similarly, I think that the Former London effects of the global economic crisis on Middle East investment markets are of interest to mayor “delighted” to developers and other parties involved in the regional real estate sector advise Dubai

Marina Bay DUBAI – The former mayor of London, Ken Livingstone, addressed regional and international press at Cityscape yesterday, urging Dubai to recognise the need for an efficient public transport system if it wants ETA Star launches to succeed in becoming a Waterfront ‘club living’ major financial centre. Livingstone, who is chairing concept the World Architecture Congress which forms a key part of this Luxury residential project valued at year’s Cityscape programme, US$545 million was recently appointed an advisor on urban planning to DUBAI – ETA Star Property Developers has announced Caracas, Venezuela, acting the launch of its first residential club-living project, as a consultant on the city’s Starliving, in Waterfront, Dubai. policing and transport. Asked The project is valued at an estimated US$545 million SINGAPORE UNVEILS if he would consider taking and will comprise a main residential tower and a on a similar role for Dubai, 5,500-square-metre communal amenities area. he said: “I’d be delighted!” The 38-storey tower will feature one to four- Being a strong advocate of bedroom apartments and penthouses, and will public transport, with firm offer amenities related to serviced apartments and PLANS TO DOUBLE ideas about how a city should hospitality packages. be run, Livingstone introduced “We are very proud to unveil our first ever club the congestion charge in London living concept. Starliving will truly reflect the ultimate and oversaw a transformation in club living and offer a unique experience that will FINANCIAL DISTRICT of the city’s aging elicit a state of overall well-being to its residents. The transportation infrastructure Starliving project will set a standard in the luxury New district more than twice the size of to free up London traffic. apartment space and we are sure that it will be a When asked for his sought out residential address to have,” said Abid London’s Canary Wharf suggestions on how Dubai could Junaid, executive director, ETA Star. SINGAPORE – Singapore has announced plans to double the size of its financial district as part be improved, he replied: “Dubai As part of the concept, the project will have onsite of a strategy to position itself as one of Asia’s leading financial centres. The new growth area must recognise a modern restaurants and retail areas, as well as medical set aside for the extension of the existing financial district will be more than twice the size of financial district requires facilities and a business centre. The fitness centre London’s Canary Wharf. It will provide some 2.82 million square metres of office space – or the the vast majority of workers will feature a gym, running track, a spa and sports equivalent area of Hong Kong’s main business district. to use public transport.” courts and the developer also plans to also offer “Singapore’s strong economic fundamentals have been driving the growth of the property In an effort to both lower indoor entertainment areas including a private market, and the corresponding demand for quality office space for the past few years. the Cityscape event’s carbon theatre. Stand 6C20 To continue attracting investments, we are planning ahead to ensure we have sufficient footprint and alleviate traffic, land and infrastructure to support our robust economic growth,” said Marc Boey, general organisers have laid on a series manager, international land sales of the Urban Redevelopment Authority (URA), Singapore’s of buses to shuttle delegates land-use agency. between major hotels in the city. Singapore’s economy grew by 7.7 percent in 2007, and is expected to continue to grow by CITYSCAPE SOUNDBITE... between four and six percent in the medium-term. This sustained growth is what is hoped will drive the property market and demand for quality office spaces in the next few years. GABRIEL BEDOYA, “Singapore’s strategic location means we are well positioned to ride this growth. Thanks to forward planning on the part of the government some 30 years ago, we are now in an enviable CITYSCAPE SOUNDBITE... President, Corcoran New position of being able to seamlessly extend our existing business district to accommodate growing demand. Marina Bay remains the centrepiece of our plans to become a global financial ASHER H SCHÖN York/Miami hub,” Boey added. What are your objectives at Cityscape Singapore’s office sector has seen robust growth over the past three years, with demand for Vice President, Dubai? To speak with as many delegates office space increasing by 260,000 square metres in 2007. The URA will continue to offer sites as possible about real estate investment for development at Marina Bay over the next five to six years to meet expected demand. Schön Properties opportunities in the US “A nucleus of office developments is already forming at the new extension of the financial What are you hoping district with the development of One Raffles Quay; the soon-to-be-completed Marina Bay to achieve at Cityscape Financial Centre, and the two recently sold sites at Marina View. Several global banks and Dubai? This year we MNCs, including UBS, Deutsche Bank, DBS and Standard Chartered are already located or will are using Cityscape Dubai CITYSCAPE SOUNDBITE... be locating in these developments,” said Boey. as a platform to launch our Apart from Marina Bay, to meet the future demand for Grade A office space, sites around the newest commercial project, ZIAD BUSHNAQ Tanjong Pagar precinct will be released, and the Ophir-Rochor corridor will also be redeveloped Libertas, to the market and into an office cluster. expect this will generate a great CEO, Cornerstone Real Estate Extending from the commercial hub at Marina Centre, the Ophir-Rochor corridor will deal of interest from potential What are your expectations for Cityscape complement the Marina Bay area, and will feature mixed-use developments with a mix of investors, due to a strong Dubai? Our expectations are high in terms of offices, hotels, residential and other facilities set within a park-like environment. As with Marina product offering and the attendance of investors and end-users Bay, the area is envisioned to be a pedestrian-friendly environment with green ‘lungs’ and sheer demand for such interested in the Abu Dhabi market, exciting activities at the street level. properties, especially in and we are hoping to position the Cornerstone The URA will feature these sites at Cityscape Dubai as part of the Singapore government’s the ‘New Dubai’ area stamp as the main provider of quality projects ongoing efforts to interest international investors in property development and investment opportunities in Singapore. Stand 6D31

14 $ Cityscape official show daily $ Dubai 2008 NEWS update

CITYSCAPE SOUNDBITE... CITYSCAPE SOUNDBITE... DARRELL METZGER, CEO, Ruwaad Destinations AJAY RAJENDRAN What are you hoping to achieve at Cityscape Dubai? The reason we chose to attend Cityscape Dubai, is because it is one of the most definitive Vice Chairman, industry events that has the power – just by its pre-eminent status – to make and break brands in our industry. As such, we are seeking to garner maximum awareness of Ruwaad Sobha Real at Cityscape for our potential markets in the Middle East and Africa region. We will also be seeking to reiterate that we are committed to the development of the UAE, the entire Estate Group Middle East and across the African continent, through sustainable destinations and What are you hoping developments that will add value and economic benefits to the communities in which we to achieve at Cityscape choose to locate our projects Dubai? Primarily, we will be using Cityscape as a Dubai’s Limitless forum to strengthen our brand enters Indonesia identity as a developer with over 30 years experience in US$1.7 billion joint venture deal signed making homes, along with an opportunity to INDONESIA – Limitless, the global real estate arm showcase our new and of Dubai World, is set to develop its first project in existing projects Indonesia, Rasuna Epicentrum. This US$1.7 billion, 330,000-square-metre mixed-use project in Jakarta will accommodate 40,000 people in more than 1.2 million square metres of office and residential towers. The development – open to foreign investors – will be Real estate is completed in phases over the next eight years. The announcement follows a joint venture signing huge income between Limitless and Jakarta-based Bakrieland generator Development (BLD). Under the agreement, Limitless becomes a 30 percent shareholder in Bakrie Swasakti for GCC Utama, Bumi Daya Makmur and Superwish Perkasa, subsidiaries of BLD. Hiramsyah Thaib, president and Work in progress totals CEO of Bakrieland Development, added: “Bakrieland US$1.3 trillion is honoured to partner with Limitless, whose world- class reputation and unrivalled expertise will ensure DUBAI – Planned and on-going the successful delivery of Rasuna Epicentrum.” real estate and construction Saeed Ahmed Saeed, CEO of Limitless, said: projects in the GCC account “Our entry into Indonesia cements our commitment for more than 150 percent of to South East Asia, where we have made huge strides the region’s GDP, according since launching our operations there nine months to a report. ago.” The company already has developments The total value of work-in- underway in Malaysia and Vietnam, with 11 projects progress developments is a currently underway worldwide, worth over US$100 staggering US$1.3 trillion, LUXURY DEVELOPER billion, covering more than two billion square metres with the 23 major planned and accommodating three million people. Stand ZJ20 property projects worth more than US$300 billion alone, according to global management consulting company McKinsey. ANNOUNCES MEGA An estimated 16.35 million square metre of gross leasable Government bid to area (GLA) is set to be added to tackle spiralling rents the region by 2010 – which is equivalent to 45 percent of the YACHT MARINA PROJECT total GLA in Frankfurt. Backing given to new build programme US$116 million Dubai scheme will boast 75 berths The expected expansion ABU DHABI – A huge construction initiative to drive represents an increase in GLA DUBAI – Island Global Yachting (IGY) the luxury marina developer and management company down rents by bridging the gap between supply and of more than 20 percent per has revealed plans to develop and manage Dubai’s first dedicated mega yacht marina. demand has been launched in Abu Dhabi. year over the ten-year period. In Palm Jumeirah Mega Yacht Marina will become one of only a handful in the world and has This will bring welcome relief to thousands of hard- contrast, the GLA in China has an estimated completion date of 2009. It will be located on the west side of Palm Jumeirah’s pressed tenants who have suffered huge rent rises been increasing at around 16 trunk, adjacent to the Trump International Hotel Tower. which have also been blamed for a surge in inflation. percent per year. With an estimated value of US$116 million, the marina will have 75 berths, 30 of which will The government has given the go-ahead to a Projects will include housing, be capable of accommodating yachts between 50 to 165 metres in length. The remaining 45 number of major property projects to address the retail, office, industrial and berths will accommodate yachts between 14 to 20 metres in length. crisis caused by the rapid population growth and hotel space as large developers IGY’s Middle East CEO, Michael Horrigan, said: “The Middle East is home to more mega an economic boom, said Butti Al Qubaisi, executive attempt to meet demand. yachts than any other region in the world, so it is fitting that such a magnificent facility should director of planning and statistics at Abu Dhabi Figures reveal that Dubai- be located in Dubai. Department of Economy and Planning. based Emaar is the seventh “Even amidst the current economic climate, demand remains extremely high for this size of Qubaisi told the Abu Dhabi-based Sama Emirates largest real estate company yacht, and we are delighted to be able to deliver the magnificent Palm Jumeirah Mega Yacht magazine that rising rents were responsible for nearly in the world by market Marina through our partnership with Nakheel. 60 percent of Abu Dhabi’s inflation last year. capitalisation, which currently “The Palm Jumeirah Mega Yacht Marina is set to become our global flagship marina, He said: “Because of this, the government of Abu stands at US$19 billion. enhanced by the exceptional upland and water based facilities it will offer. Using the business Dhabi has ordered the construction of massive housing The tourism market is also model that we have successfully implemented in our many luxury marinas around the world, we projects in the next three years to alleviate this crisis, growing strongly say McKinsey. will be able to offer berth holders the very highest levels of service in a stunning environment.” which in turn will contribute to tackling inflation. Around 37 million foreign At the heart of the marina will be the clubhouse, a members’ only facility with other “If such projects attain their goals of achieving a tourists visited the region last outstanding design features such as car access on to the pontoons and high level security. balance between supply and demand in the housing year generating US$28 billion The design allows for 75 berths that will provide private yachts with facilities such as spacious sector, then rents will begin to go down. of income. This figure is likely to pontoons that are wide enough to accommodate two cars side by side, as well as in-berth “We have conducted studies, which will be more than double by 2017. fuelling, dockside storage modules, shore-side crew facilities and full berthing utility provisions. presented to the Abu Dhabi Executive Council The marina will have security checkpoints at the connection to the Palm Jumeirah trunk that include several solutions to the problem, and and the exclusive T-head pier will provide customers with a secure and exclusive location to I believe if all those projects are carried out, the homeport their vessels. problem will be resolved.” The luxurious clubhouse located in the centre of the radiating berths will be a members- only No details of the projects were given but according facility and will feature elevated rooftop dining with views looking back to Trump Tower, at the to reliable sources, investments in the construction centrepoint of the Palm Jumeirah shoreline, as well as a sunset view towards the Jumeirah and property sector will exceed US$190 billion in the skyline with the mega yachts in the foreground. Stand 3B10 emirate in the next five years.

16 $ Cityscape official show daily $ Dubai 2008 update NEWS

Hydra Cubic One to launch at Cityscape Project founded on potential of real estate market in Abu Dhabi

ABU DHABI – Hydra Cubic One, a joint venture from Hydra Properties and Cubic Real Estate, has been launched at Cityscape in Dubai. The project is founded on the potential of the real estate market in Abu Dhabi as the large amount of funds being invested in infrastructure in the emirate should ensure it becomes a popular investment destination for both business and tourism. Dr Suleiman Al Fahim, chief executive officer of Hydra Properties, stated: “We are very pleased to announce this new project with Cubic Real Estate. Both Hydra Properties and Cubic have established themselves as visionaries and leaders in their respective fields.” Mira Tascova, sales director of Cubic Real Estate, added that the project should ensure the relationship between the two firms is taken to the next level. Further details surrounding the property are to be revealed at their stand during the show. WEATHERING Meanwhile, Hydra Properties attended the Cityscape event in New York, unveiling its Al-Aqeeq Masdar invests Marina project in Khiran, Kuwait. Stand ZR40 US$176 million in European wind THE STORM turbine firm Conference speakers offer Move signals entry into lucrative delegates reassurance new market DUBAI – It doesn’t often rain in the UAE and it seems that the analogy is also true in the current international market turmoil, according to ABU DHABI – Masdar has announced that it has conference speakers yesterday. bought a US$176 million stake in WinWinD, a The UAE is “well placed to weather the storm”, which is raining down Finnish wind turbine manufacturer. on the global real estate market, according to Ali Kolaghassi, vice chairman The move highlights the Abu Dhabi company’s and CEO, Saraya Holdings. commitment to being a key player in the wind Kolaghassi started his speech by jokingly commenting that delegates energy markets. “should hold a minute’s silence for the markets”, but he was nevertheless “Wind plays a crucial part within renewable buoyant about the UAE’s potential. “We are well placed to weather the energy as it is commercially competitive today. It is storm and will rebound faster than most other economies,” he said. important for Masdar to be part of that growth,” said “What’s important is that we educate buyers that the markets have Dr Sultan Al Jaber, CEO of Masdar. changed – we won’t see the 40 to 50 percent investment returns of “WinWinD is at an interesting phase and is set to previously, it will more likely be 7-10 percent. But I don’t see real estate expand into a truly global wind company servicing going down in value.” several key markets like Scandinavia, USA, Europe, Jonathan Garner, a Global Emerging Markets strategist for Morgan Luxury Living the Middle East and Asia,” added Al Jaber. Stanley in the UK, was also upbeat, particularly about the prospects of WinWinD is a manufacturer active in the design, emerging markets – which will grow by 6.7% this year and account for up in Fujairah development and assembly of technologically to 75 percent of global growth. advanced one and three megawatt wind turbines. He predicted the current slump was a cyclical downturn and market 21 units remaining in Headquartered in Helsinki, Finland, WinWinD has structures would emerge largely intact. “Emerging markets trade far more Mina Al Fajer resort corporate offices in Oulu, Finland and Chennai, India with each other than in the past,” he said. “China funds its own growth, and following this deal there are plans to expand has been active with policies and isn’t reliant on foreign savings.” FUJAIRAH – Progress is continuing at Mina Al Fajer elements of the operation into Abu Dhabi. However, in the western world things aren’t as positive. Peter Barge, Real Estate’s 72,000 square metre site at the foot of With a string of projects already under CEO of Jones Lang LaSalle Asia, said second quarter insolvencies in the Hajjar Mountains. The US$217 million Mina Al development, buying into a turbine manufacturer the UK were up 22 percent; UK property stocks have more than halved Fajer Resort is set to become Fujairah’s first high-end underpins Masdar’s strategy of investing in all since the introduction of REITS; and London office prices were down 25 property development when it is finished in 2009. aspects of the renewable energy value chain. percent. “The timing couldn’t be worse with more than 160 floors coming Once completed, Mina Al Fajer will feature a Masdar will work in partnership with the management up in the next two years,” he said. coastal community that will include a marina, 48 of WinWinD and its majority owner, Sterling Infotech He said Dubai wasn’t immune either, describing the fact that CBD office mountain villas, 13 solarium villas, and 80 marina Group to accelerate WinWinD’s geographic expansion rates have risen 70% and residential prices were up 40% as “unsustainable”. apartments, in addition, a 200-room five-star hotel in Europe, India and the Middle East. But he added that for all its challenges, the global financial crisis will will be managed by Fairmont Hotels and Resorts. A large proportion of Masdar’s investment in pass and what’s important is that “we are still around when it recovers”. Hussein Fakih, CEO of Mina Al Fajer Real Estate, WinWinD will go into expanding its Indian operations said: “The marina was finished earlier this year giving the company a better global performance. and foundation works for blocks A,B,C and D are “For WinWinD, the investment is a testament to completely laid out. Retaining walls for the mountain the high quality of Finnish wind energy know-how and villas are also in progress and construction of the the increasing global demand for renewable energy,” buildings has commenced.” said Lassi Noponen, WinWinD’s executive chairman. DELEGATE POLL REACTIONS After the initial launch in May 2007 Mina Al Fajer He added: “The deal provides a solid basis for What will be the value of cross border investment in 2009? reported that most units were swiftly sold, but the developing our company further. This investment also Answer: US$100-200 billion (34 percent) developer is showcasing the remaining 21 units at heralds the breakthrough of Winwind’s utility class Which country will receive the most cross border real estate Cityscape – eight marina apartments, three solarium technology and ensures that wind energy remains a investment in 2009? villas and 12 mountain villas, which it asserts will key part of the renewable energy solutions required to Answer: China (39 percent), followed closely by US (38 percent) appeal to investors looking beyond Dubai and Abu meet the ever increasing global demand for energy.” Has your view of the downside Risk of Middle East real estate Dhabi. Stand RK01 Stand ZM40 investment relative to CEE/Asia changed? Answer: Somewhat (44 percent)

Dubai 2008 $ Cityscape official show daily $ 19 NEWS update

RAFAEL VIÑOLY UNVEILS RAFFLES CITY CONCEPT Cityscape Architectural Award nomination for Bahrain’s Deyaar targets oil wealth waterfront project UAE developer to expand into ‘safe’ oil rich economies BAHRAIN – CapitaLand, the Singaporean developer of Raffles City Bahrain, today announced the public sale of the 43,000-square-metre waterfront development. At a private sales initiative in June, 101 out of 124 residential units in DUBAI – Markus Giebel, the newly appointed chief executive officer of Tower 2 were booked, representing about 80 percent of the total available units. The average sale price has touched Deyaar, outlined a new direction for the company, at Cityscape Dubai, with an unprecedented level for the Kingdom at US$4,500 per square metre. a move to developing iconic towers and community developments as well as “While other parts of the West may currently be feeling the effects of the real estate market decline, the GCC real targeting international markets. estate market in general is healthy,” said Mr. Wong Heang Fine, CEO of CapitaLand GCC Holdings Pte Ltd. Giebel said that the company would at first target oil-rich countries, New York-based architect Rafael Viñoly has released his concept for the design of Raffles City, which was because they were cushioned from the global credit crisis. He added that nominated at this year’s Cityscape Architectural Awards. Inspired by the geometry of Bahrain Bay and the sea, the immediate targets would be Saudi Arabia, Tunisia and Turkey. the design curves in both section and plan, and creates a new, ‘three-dimensional urban typology’ in a single He stressed that it was their goal to have 50 percent of the company’s architectural response to multiple, curved sites. built-up landbank in international markets by 2009. Currently, Deyaar has a “Raffles City Bahrain is one of the six projects under the brand and every one of them is by a signature architect. landbank of 20 million square feet – predominantly in the UAE. We want to create a collection through Raffles City and make everyone an iconic design,” said Mr Wong Heang Fine. Yesterday, the Deyaar stand had a project under wraps for Abu “Our target is to build 10, so we have four more to go. And we are looking at sites around the world. To do a rare Dhabi, which Giebel said would be unveiled by Deyaar chairman Nasser iconic property takes a lot of effort and it also depends on whether we can find the right location. Bin Hassan Al-Shaikh and seven-time F1 World Champion Michael “Raffles City needs a couple of things to work, one of course is that it must be on a prime piece of land and it must Schumacher today. Giebel added: “This will be our first iconic project.” be in the heart of the commercial district. We need the right city and the right site,” he added. The company also revealed Enclave, its first mid-size community For the Bahrain project, three curving apartment towers, varying in height from 34 to 41 storeys, form the development at the up-and-coming International Media Production Zone backdrop of the development, which rises above the 92,000- square-metre retail mall. A total of twelve two-storey (IMPZ). This project will comprise nine residential buildings and will be penthouses and over 600 high-rise and terraced apartments combine with the 200-room five-star serviced residence the first mid-size community to be launched within the IMPZ. to make up the Manama development that is scheudled for completion in Q4 2010. Below these, sit 50 unique Going forward, Giebel said that acquisitions were also a target so long terraced sky villa residences, each of which will include a private swimming pool. as Deyaar could buy a controlling stake. He said the company may also “Rafael Viñoly was chosen for Raffles City Bahrain due to his acclaimed international projects such as the Tokyo look to buy long-term distressed assets in the US. “If it makes money for International Forum and the Kimmel Center for the Performing Arts in the US; and with our development he has truly Deyaar, then it makes sense.” come up with an inspiring design for luxury living which is unique to the Gulf,” commented Mr. Wong Heang Fine. Giebel said that the company was still studying the potential takeover of Bahrain was chosen as CapitaLand’s first Middle Eastern project due to its growing hospitality industry and its the Plantation Polo & Equestrian Resort project. economic diversification, as he explained: “Fundamentally Bahrain is very strong. It is a financial hub, and will Deyaar has been in talks with Dubai Islamic Bank (DIB) to take over continue to be so. It is also a playground for the eastern seaboard of Saudi and so again, that is very attractive for us. the US$680 million real estate project, since it was seized in an effort to “We have long viewed Bahrain as a market with vast and untapped potential, but what this market has lacked, recover debt. until recently, is the upscale mixed-use real estate developments that have become commonplace in the region. “If it is easiest for us to build and grow then we will do that, but we have “We like to go to markets where we have good partners and we have a very strong partnership with Arcapita in nothing against acquiring companies. For us, the most important thing to Bahrain. They were already involved in the Bahrain Bay project, and so it was a good venture.” consider in acquisitions is the landbank,” he added. Investors in the project are predominantly from within the GCCm with a If the company can quickly identify acquisition targets it will move large proportion from Saudi Arabia but the company believes that once the along its growth path with pace, but this, says Giebel, will require a cash Qatar-Bahrain bridge is opened then this will further benefit development injection. If the targets take a little longer to identify, Deyaar can grow within the Kingdom. on the strength of its own capital. Giebel added that all future financing Outside of this region, CapitaLand is also looking at other emerging would be Islamic, in line with its recent US$1.36 billion sukuk. markets. “We are constantly on the lookout in Russia, which is a When asked about the global credit crisis, Giebel said that the balance very different market, and are looking principally at Moscow and St sheets of local developers were still very strong, but he did warn that nothing Petersburg,” said Mr Wong Heang Fine. can continue to grow forever – while adding that he did not anticipate any “I think the global situation is really an opportunity for us and we know major corrections in the domestic market. from our half year results that we have quite a lot of cash and we’re just Furthermore, Giebel said that after reporting a 56 percent rise in profits waiting for the right moment to see what we can pick up,” he added. for Q2 2008, over Q2 2007, the balance sheets remain strong and that Q4 In terms of expanding its REIT base, CapitaLand is looking beyond the results “would break all records”. Far East markets. “We are quite keen on the Middle East but the dynamics Giebel welcomed the calls for transparency and corporate governance of the market are different and we have to see how we would fit it into the in real estate in the UAE, which led to the arrest and detention of his local market. I think it would depend on how we structured the REIT, if we predecessor, Zack Shahin, on alleged charges of a betrayal of trust and did it with very well-respected partners, then I think it would still do very financial irregularities. He added: “In every developing country there are well.” Stand 7A10 always activities outside of what is wanted. We welcome the transparency Rafael Viñoly as a sign that the market is maturing. Any market maturing must go through this.” Deyaar is currently undergoing an internal audit and corporate governance programme, and Giebel added: “I don’t believe there is room for repeats”. Stand 2C10

CITYSCAPE SOUNDBITE... GABRIEL BEDOYA, President, Corcoran New York/Miami How important is it for you to be present at this and other Cityscape events? On a scale of one to 10, it is a 10. This, and other Cityscape events provide me with a great platform to meet a broad range of investors from the region. It has allowed me to better understand the global real estate needs of the delegates

20 $ Cityscape official show daily $ Dubai 2008 financial FOCUS

WHAT WOULD GCC CURRENCY UNION IN 2010 MEAN FOR THE REAL ESTATE INDUSTRY? Peter Cooper weighs the different scenarios and possible outcomes

Until very recently, nobody single GCC currency valued to fight inflation with higher exactly how the GCC common will need to be cleverly phased and confidence in the future. thought that the 2010 Gulf against a basket of currencies. interest rates then this has currency will impact on local so as not to suddenly deflate It says that the Gulf States are single currency plan stood This will probably still mean serious implications for local capital markets, and the booming local economies – and serious about economic reform much chance of success, with that the US dollar will be property markets. The negative finest minds of economics send the real estate industry and prosperity and creating a the divergent politics not to dominant – given its role as real interest rates of the are going to be engaged into a downward spiral, or be modern financial infrastructure. mention economics of the the unit of account for oil US dollar peg have been a over the next 15 months in overly attractive to foreign This will not go unnoticed region. But the combination and gas revenues – but the primary factor supporting the deciding how to proceed, so investors who would therefore among global business and of high inflation and dollar currency basket will also local real estate boom. Kick any discussion of these issues overvalue the currency. finance, and it will tend to devaluation over the past include the Euro, and perhaps that peg away and you could is inevitably speculative. Nevertheless, a well- be a self-fulfilling prophesy couple of years seems to have even gold and silver. Mexico collapse the market, or at least However, if the US dollar managed currency will hold about the future attracting galvanised the governments is working on plans for a new produce a sobering correction. weakens suddenly and severely its value as a new reserve new business, finance and and central banks into action, currency that includes silver, Revaluation is another over the next 15 months – currency of the world, and the commerce to the region. and suddenly a single currency and the idea of a Gold Dinar serious issue to consider. On and the US$2 Euro has been currency basket might just It is for this reason by the original deadline for the GCC has been in the one hand, the prospect of suggested by more extreme be a prelude to a free floating that the real estate sector of 2010 looks very likely, circulation for a long time. at least in some form. A report from the Dubai That is only 15 months International Financial Centre away, and a historic framework economics department It is true that having the UAE currency, and other GCC currencies, pegged to agreement for the currency concluded last month that the US dollar has been a source of stability in the past. But it no longer seems was signed last month with a new GCC currency will be (appropriate for the booming oil states of this region to follow the fiscal and little controversy. The national in great demand as a global monetary policies of a failing US economy currencies of the GCC are going reserve currency, given that it to become a thing of the past, will effectively be backed by and a regional currency will the hydrocarbon assets, oil and revaluation – and there is an commentators, and it does not currency, effectively valued should welcome and not emerge to replace them, just as gas revenues and sovereign emerging consensus that a look so unlikely today with the against every other free moving fear the introduction of a the majority of European Union wealth of the Gulf States. This revaluation will accompany the ongoing US financial crisis currency in the world, and on single currency, although its countries chose to give up their report concentrated mainly on move to the single currency – the new currency presents a par with the dollar and euro. introduction will present a currencies and create the Euro. the mechanisms that might as a one-off action to shrug a generational opportunity to This would after all fit with the change and challenge to the We do not yet know the be used in the running of the off the under-valued dollar break with the US dollar. population size and economic macroeconomic framework name of the new currency or new Gulf Central Bank which – means that owning hard It is true that having the importance of the region. that has created the present where the new GCC Central are clearly important but not assets in the UAE is a no- UAE currency, and other GCC There would also be the real estate boom. But in the Bank will be located, or how the main interest for the public lose bet to win an automatic currencies, pegged to the US opportunity for local and global longer term economic reform it will be operated and to and business in the region. bonus in dollar terms. dollar has been a source of financial institutions to develop and greater financial maturity what mandate. But there is Attention is bound to focus The downside is that after stability in the past. But it no a far more sophisticated and in the region will ultimately a sort of inevitability about on two immediate issues: how the revaluation is in place, and longer seems appropriate for diverse regional financial underpin an even higher level government affairs when a much of a revaluation will the currency basket floated, the booming oil states of this system around the new of demand for property, and goal is decided and a strong the new currency include (if then there is no prospect of a region to follow the fiscal and currency. There would be far that can only benefit the consensus emerges. it actually does)? And how repeat of this bonus. Therefore, monetary policies of a failing more demand for sukuks and regional property industry. The sudden plunge in the much will interest rates rise those investors who positioned US economy. This mismatch equities issued in the new US dollar’s fortunes over the (or fall) as a consequence of themselves to receive the of interest rates alone is currency, and these markets Peter Cooper is the author recent weeks and a reversal of the introduction of the new revaluation bonus might as overheating local economies would have greater depth of ‘Opportunity Dubai’ to what now looks to have been currency and central bank? well sell up and leave, and while the falling dollar is and liquidity. This would be published in London by a bear market rally over the Real estate professionals’ this will depress the local boosting imported inflation. all have clear benefits for Harriman House at the end summer, just underlines the ears will immediately tingle real estate sector just at the Now the Gulf States will have economic growth and create of this month, which includes importance of establishing a at the mention of interest moment the market is digesting to consider very carefully how new demand for offices, two chapters on the Dubai more stable single currency. rates and revaluation. what a GCC central bank will the mandate of the Gulf Central apartments and villas. real estate phenomenon The regional central banks Obviously if a new GCC mean for interest rates. Bank is framed. If it is to target In fact, a single currency is are now working towards a central bank has a mandate But we cannot be sure inflation then interest rate rises a demonstration of political will

Dubai 2008 $ Cityscape official show daily $ 23 CONFERENCE programme

THE LINE-UP: CONFERENCE AND SUMMIT PROGRAMME DAY 2: TUESDAY 7TH OCTOBER

INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE 13:00 The Hot Debate 16.45 Lifting The Veil On Africa – The Enigmatic Jewel: PROPERTY TRENDS – STANDING OUT FROM THE Chaired By Jonathan Dimbleby Exploring The Developments And Investment CROWD OR SITTING ON THE FENCE? Potential Of The Residential, Commercial, 09:00 Registration And Coffee Following The Investor Instincts – Institutional Industrial And Hospitality Sectors Over The Next 2 Investors Allocation To Real Estate Years Across This Untapped Continent 10:00 Chairman’s Opening Remarks: Kamel Lazaar, Moderator: Ian Ohan, Head of Investment Geoffrey Kruger Snr, Chairman, DTZ Leadenhall, Chairman, Swicorp Financial Advisory Services Transactions, Middle East & North Africa, South Africa SA, Switzerland Jones Lang LaSalle MENA, UAE David Baker, Director aluations,V DTZ Leadenhall, Paul Devonshire, Managing Director, Pramerica South Africa 10:10 International Keynote: Powerful Strategies Property Funds AG, Germany Geoff Kruger Jnr, Director of African Operations, And Tactics For Mastering Every Deal – Trump Richard Draycott, Managing Director – DTZ Leadenhall, South Africa Style Negotiation Middle East, Goodman International Ltd, UAE George Ross, Executive Vice President and Senior 17:15 Latin America – The New Wave Counsel – Trump Organization, USA 13:45 Networking Lunch Wencesla Bunge, Managing Director – European-Latin American Head Real Estate Group, 11:00 Value Creation In Middle East Real Estate Markets Credit Suisse, UK – Fuelling The Growth Engine STREAM A Eduardo Machado, Managing Director, Carlyle Blair Hagkull, Managing Director, Jones Lang LaSalle EMERGING MARKETS TAKE CENTRE STAGE – CHINA, Group, Brazil MENA, UAE INDIA, EASTERN EUROPE, AFRICA AND LATIN AMERICA Henry Azzam, CEO, Middle East and North Africa, 14:45 China – Far East, Far Out Or Far Fetched Deutsche Bank, UAE Asia – Has Vietnam Arrived? STREAM B Kate Godfrey, Senior Consultant, Oxford Business Asian REITs – What’s Next In Store? TO MIX OR NOT TO MIX: HOT OFF THE PRESS REAL Group, UAE Nicholas Brooke, Chairman, Professional Property ESTATE SECTOR DEVELOPMENTS AND ANALYSIS Services Group, Hong Kong 14.45 How Will Retail Real Estate Hold Its Own And COURTING DANGER – REAL ESTATE LEGISLATION Sunil Gomes, Development Manager, Nakheel, UAE Continue To Create High Returns? 12:00 Real Estate Legislation – Too Much Or Not Enough? Shahram Shamsaee, Senior iceV President – Lisa Dale, Partner – Head of property Department, Al 15:30 Demystifying India – Is It Too Good To Be True? Shopping Malls, MAF Investments LLC, UAE Tamimi & Company, UAE Shahzaad Dalal, Vice Chairman & Managing Director, Graham Dreverman, Group Managing Director, Duane Keighran, Senior Associate, Freshfields IL&FS Investment Managers Limited, India Nakheel Retail, UAE Bruckhaus Deringe, UAE Arun K Nanda, Vice Chairman and Executive Director, Mahindra & Mahindra, India 15.15 Strengthening The Next Act For Commercial/Office 12:15 The Impact of the Government Involvment in Lakshmi Narayanani, CEO, Real Estate Bank India, India Property Development: What Does The Future Hold Enhancing Real Estate Investment Sanjay Sachdeva, President – Corporate Strategy With Demand Reaching Its Peak Frontier? H. E. Eng. Imad N. Fakhoury, Chief Executive Officer, & Business Development, Advance India Projects Robin Williamson, Managing Director – Middle East Aqaba Development Corporation (ADC), UAE Limited, India Operations, DTZ International, UAE

12:30 Following Investor Instincts – Institutional Investors’ 16.15 Eastern Europe – The Next Opportunity After 15.40 Industrial Real Estate: Is This Asset Class Coming Allocation To Real Estate The BRIC Markets? Russia – A Review Of The Of Age In The Region With The Increase In Demand Ian Ohan, Head of Investment Transaction, Middle Opportunities For GCC Investors For Logistic Hubs? East &North Africa, Jones Lang LaSalle MENA, UAE Alwin M Tamacius, Chairman, Guardian Joseph Ghazal, Senior iceV President, Regional Paul Devonshire, Managing Director, Pramerica Managers Ltd., UK Director GCC, ProLogis, UAE Property Funds AG, Germany Jerry Oates, Managing Director, Knight Frank, Russia Richard Draycott, Chief Operating Officer, Goodman Paul Green, Chief Financial Officer, Limitless LLC, UAE 16.00 Crystallizing the Opportunity in Residential Real Sorouh, UAE Estate: Strategies for Development Now, Next and Heather Mulahasani, Head of Real Estate, Goldman Beyond The Horizon? Sachs MENA Elaine Jones, CEO, Asteco, UAE Tim Rose, Senior Fund Manager, EIS 16.25 Transcending The Paradigm Shift Of Mixed Use Developments: Creating a New Regional Economic Hub in South-East Asia – The Iskandar Malaysia experience Dato’ Ikmal Hijaz Hashim, CEO, Iskandar Regional Authority (IRDA), Malaysia

16:50 Scaling The Pyramid Of Luxury Real Estate: Capitalising On The Increasing Plethora Of Opportunities In Luxury Hotels And High-End Branded Residences Rohit Talwar, CEO, Fast Future, UK

17:15 Sustainability In Focus – Hype Or Reality? Evaluating New Risks And Opportunities Fuelled By An Increasing Consumer And Market Demand For Sustainable Real Estate Stephen Oehme, Regional Director – alueV Management and Sustainability, Hyder Consulting Middle East, UAE

24 $ Cityscape official show daily $ Dubai 2008 programme CONFERENCE

STREAM C 14TH MIDDLE EAST FACILITIES INTERACTIVE ROUNDTABLES – ACTION AND ASSET MANAGEMENT 14:45 Round One (FAAM) CONFERENCE

15:45 Round Two 08:30 Registration And Coffee Discussion 1: Joint enturesV In The Middle East – With Or Without Local Partners? 09:00 Opening Remarks By The Chairman Discussion 2: Infrastructure: The Oil In The Engine Iain A. Murray, Chairman, British Institute Of Facilities Or A Fly In The Ointment? Management, UK Discussion 3: Asset Management – What Works, Chief Executive Officer, SMC Facilities Management, UK What Doesn’t? 09:10 Keynote Address: Reducing Whole Life Costs Discussion 4: The UK And Europe: Through Effective Facilities Management – A Global aluableV Or olatile?V Best Practice Guide Discussion 5: Investing In Distressed Markets – Iain A. Murray, Chairman, British Institute Of Facilities Great Timing For US Investments? Management, UK Discussion 6: How, Where, When And Why? Chief Executive Officer, SMC Facilities Management, UK Developers’ Issues In The Middle East 09:50 Comparing An In-House FM Solution Versus An Outsource Partnership 18:00 Close Of Day One Mike Liddle, Board Member, Global Consultants 14:00 Case Study: Adopting Facilities Management Council, International Facilities Management Principles At The Early Stage Of Design 19:00 A Debut Performance – Association IFMA, USA And Development Cityscape Cultural Evening – Arabian Nights Mick Dalton, Senior Director Property Management, 10:30 Keynote Session – Outlining The Key Challenges Emaar Properties, UAE IIR Facilities Management Interactive Voting Session Using individual electronic voting pads, you can 15:15 Afternoon Networking Break take part in a live survey to capture the priorities and common challenges faced by the audience. 15:20 Case Study: Investing Early In Facilities Management To Reduce Life-Cycle Costs In The Long-Term 11:00 Morning Networking Break Mohamed Habbal, Senior Manager – Operability, Nakheel, UAE 11:30 Case Study: Outsourcing Facilities Management Through A Successful Selection Process 15:40 Panel Session: Developing Innovative Ways To Ahmad Hussain, Acting Director, Facilities Reduce Electricity And Water Consumption Management Department, Engineer’s Office, UAE Elaine Kelly, Regional Facilities Manager, DLA Piper, UAE Jitin Kandy, Real Estate And Facilities Manager – 12:10 Assessing Building Performance – Gulf, Microsoft, UAE An Integrated Approach Sean Lockie, Director, Faithful+Gould, UAE Dr Danny Shiem Shin Then, Associate Professor, Mick Dalton, Senior Director Property Management, Hong Kong Polytechnic University, Hong Kong, China Emaar Properties, UAE

13:00 Networking Lunch For Delegates And Speakers 16:00 Coaches To Cityscape Exhibition

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Dubai 2008 $ Cityscape official show daily $ 25 keynote SPEAKERS

SPEAKERS ONE-ON-ONE

Mohammed Al-Tawash Richard Draycott Vice chairman and president, RealCAPITA General manager, Goodman Sorouh

INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE INTERNATIONAL REAL ESTATE INVESTMENT AND Topic: The role of Sovereign Wealth Funds in regional and international real estate markets DEVELOPMENT CONFERENCE Session timing: 2.45pm Today @ Sheikh Maktoum Hall Topic: Following the investor instincts – Institutional investors allocation to real estate Mohammed Al-Tawash to me personally, and for the US$7 trillion in international offers sovereigns protection Session timing: 11:45am Today @ Sheikh Maktoum Hall has a wealth of real estate company and the investors, to reserves (including gold) and against inflation as well a experience, which began in provide a positive experience.” an additional US$2 to 3 trillion diversification tool. Some Richard Draycott worked in Goodman develops which his role as a Regional Manager RealCAPITA is a real in SWFs (see table below). market observers argue that banking and consulting roles allow institutional investors with FNC (Fujairah National estate investment company “SWF have made headlines real estate gives sovereigns in London and Hong Kong to access particular asset Construction). In this role he founded in April 2006, with coming to the rescue of access to so-called alpha before moving into real estate classes the world over. He was responsible for setting up a paid-up capital of US$54 investment banks damaged generating assets without five years ago. When Goodman says: “It will be interesting the entire investment package million and an authorised by bad real estate bets in the entangling them in sensitive to explore where the Middle for the Al Moayyad Tower capital of US$200 million. subprime mortgage market. national security issues.” East market is now in terms in Bahrain and Al Fujairah RealCAPITA is based in Now these same funds are Today, the biggest of accepting and embracing Tower in Fujairah, which were Bahrain and today has projects targeting real estate directly. concentration of SWFs by the importance of ‘investment both among the tallest towers that span the Middle East and “Cash rich SWF have trillions dollar volume is in the Middle grade’ quality products, and in the world at the time. North Africa (MENA) region, stashed away from surplus East and East Asia, and their also examining the criteria by He went on to hold several Europe, and the Far East. revenues generated in most increasing direct investment which institutional investors are senior positions before Al-Tawash explains: “Our cases by oil sales. Even if only a activity is causing concern now examining opportunities in becoming a founding partner business’s success has been small proportion of this wealth in some recipient countries, the real estate space.” in Tameer, where his vision propelled through developing is directed to real estate it could especially in the west. Draycott says that the and leadership propelled long term partnerships, thought mean US$80 billion to US$120 Recent investments by Sorouh decided to enter the current trend in institutional the company to become the leadership, operational synergy, billion annually,” says Al-Tawash. Middle Eastern SWFs suggest Middle East market in 2006, investment has seen something first publicly held real estate and privileged transaction flows.” Since the beginning of that there is an appetite for Draycott was asked to establish of a rationalisation of managers. company on the Bahrain Stock Al-Tawash is an expert in 2000, countries, especially alternative investments in the the company’s presence in the “It seems that institutions are Exchange with a dual listing Sovereign Wealth Funds (SWF) in Asia and the Middle-East, region. Carlyle Group, GLG Middle East. pinning their colours to a limited on the Kuwait Stock Exchange. and he will be explaining to have been transferring an Partners and Och-Ziff Capital Macquarie Goodman Industrial number of masts i.e. those who delegates how the role of SWFs, increasing part of growing have sold stakes in their Trust (now Goodman Industrial can demonstrate track record in regional and international foreign reserves to SWFs. In management companies to Trust) listed on the Australian and capability. real estate markets has the meantime, the demand Middle Eastern investors, says Stock Exchange in 1995. “In addition, more complex changed over the years. of SWFs for risky assets has Al-Tawash. He adds: “Dubai Through a series of mergers and procedures of asset allocation He explains: “The SWFs used been going up as a result of a for example, has launched acquisitions, it soon became the are becoming commonplace, to be big pension portfolios management of foreign reserves a new multi-billion pound largest listed industrial property and investment decisions are investing in government safe apparently more prone to risk. sovereign wealth fund Dubai group in Australia. being expected to adhere to a haven securities. However, Even long-established SWFs International Capital (DIC), In 2005, the group strategic overlay,” he adds. that role has now changed and have announced that they the new fund is backed embarked on a series of The distribution of SWFs now trade using funds would increase their exposure by state money and not acquisitions designed to institutional investment earned from commodity export to risky assets. It is unclear just the personal wealth increase its breadth and depth geographically appears to be revenues, real estate and if and how the ongoing credit of the Maktoum family.” and expand its operations mixed, but generally there alternative assets markets.” crisis will affect this trend. Another fund by Dubai into new markets. It acquired is a positive outlook on Asia, Al-Tawash believes that there He adds: “On a fundamental “The Dubai World” is one Arlington, Eurinpro, Akeler, an opportunistic approach to After this success he went will be considerable growth in level SWF attraction to of the biggest holding Rosemound and J-REP. Europe, and an increasing on to founder RealCAPITA, SWF activity, reflecting high real estate is also part of a companies on earth. Dubai The Goodman Group of level of interest in the Middle which has also developed a oil and non-oil commodity wider trend among global World controls well over today was formed in 2007 East. However, this will vary solid base for expansion. prices and general reserve investors towards considering US$100 billion, employs over following these acquisitions. according to the point in the Throughout his career, accumulation in other countries. real estate as part of their 100,000 people and has a It emerged from this period of cycle of each jurisdiction and Al-Tawash has demonstrated Estimates of foreign assets held overall asset allocation. presence in 100 different growth as one of the leading geography, says Draycott. strong leadership and by sovereigns include about “As an asset class, real estate cities in 60 countries. international players in He adds that a healthy management skills in industrial property, business percentage of this institutional investment and real estate space and fund management. investment is still going into organisations, throughout all of LARGEST SWFS US$BILLIONS UNDER COUNTRY INCEPTION As general manager of real estate, although fresh the real estate market cycles. MANAGEMENT YEAR Goodman Sorouh, Draycott allocations are probably down on Al-Tawash’s real estate Abu Dhabi Investment Council 875 UAE 1976 is responsible for keeping two years ago globally. In order career spans 12 years, Government Pension Fund of Norway 380 Norway 1990 shareholders informed and to encourage more investment covering the GCC and Government of Singapore Investment Corp. 330 Singapore 1981 ensuring that the business has in real estate the industry must global investment and real Saudi Arabia - various holdings 300 Saudi Arabia n/a a sufficient deal pipeline. increase transparency, enhance estate markets – private as Kuwait Investment Authority 250 Kuwait 1953 He is also overseeing the liquidity, and encouragement well as public sectors. China Investment Corporation 200 China 2007 commercial success of the investment grade products, and Time and again Al-Tawash Hong Kong Monetary Authority Invest. Portfolio 163 China 1998 Business Park and Logistics competent management. was able to demonstrate his Temasek Holdings 159 Singapore 1974 joint ventures, undertaken The level of investor flexibility in responding to Stabilisation Fund (and National Welfare Fund) 157 Russia 2004 by Goodman in a joint confidence in real estate varies changing market conditions Australian Future Fund 61 Australia 2004 venture partnership. from place to place. Draycott and his ability to “wear Qatar Investment Authority 50 Qatar 2000 Draycott finds working says: “In the Middle East, there many hats” in the effort to Libyan Arab Foreign Investment Company 50 Libya 1981 in the Middle East a is strong confidence in the meet and exceed corporate Revenue Regulation Fund 43 Algeria 2000 fascinating experience. He sector. The UK and Asia view goals and challenges. Alaska Permanent Fund 40 US 1976 says: “Being involved in real real estate as a staple, and are Today his role includes National Pensions Reserve Fund 31 Ireland 2001 estate in the Middle East is strong advocates of the long deal origination, forging Brunei Investment Agency 30 Brunei 1983 motivation in itself. We are Term viability of the asset class. strategic alliances, and setting Korea Investment Corporation 30 South Korea 2005 offering something new and “The US has suffered, not the company’s strategy. Khazanah Nasional 26 Malaysia 1993 differentiated in one of the least in light of the mortgage “I have always wanted to Kazakhstan National Fund 22 Kazakhstan 2000 most dynamic and exciting backed crisis. Most large ensure that my company’s Alberta’s Heritage Fund 16 Canada 1976 markets in the world.” investors will view the sector investors get the best returns Others 87 Draycott’s speech at as cyclical, but there will I can provide. I’ve always Total 3,300 Cityscape Dubai will focus inevitably be moments of felt that it’s important, both on the products that concern between the highs.”

Dubai 2008 $ Cityscape official show daily $ 27 CONFERENCE programme

THE LINE-UP: CONFERENCE AND SUMMIT PROGRAMME DAY 2: TUESDAY 7TH OCTOBER

HOTEL & TOURISM INVESTMENT & DEVELOPMENT CONFERENCE

09:00 Registration And Coffee 12:00 Responsible Expansion: The Tourism Time Bomb WORLD ARCHITECTURE CONGRESS Jan Laverty Jones, Former Mayor, Las Vegas 09:30 Welcome James Simmonds, Project Manager, Mubadala, UAE 08:00 Registration And Coffee Rohit Talwar, CEO, Fast Future, UK 09:35 Chairman’s Welcome 08:35 Opening Remarks From The Chairman David Foster, News Producer and Presenter, 13:00 Lunch For Delegates And Speakers Ken Livingstone, Former Mayor of London, UK Al Jazeera International, Qatar 14:00 Vacation Ownership: The Share Option With A 08:45 Special Opening Address: 09:45 Global Overview: On The Up, On The Down And On Difference – Part 1 Rashad Mohammed Bukhash, Director of The Brink Adbul Wahab al Halabi, Chief Operating Officer, Architectural Heritage, Dubai Municipality, UAE Taleb Rifai, Deputy Secretary General, United Nations Dubailand, UAE World Tourism Organization, Spain Piaras Moriarty, Executive VP, IFA Hotels and 09:00 Keynote Address: Strategies For New Urbanism Resorts, UAE Ken Livingstone, Former Mayor of London, UK 10:30 The Champions And Challengers Of Middle Eric Gummers, Senior Partner, Howard Kennedy, UK East Tourism Nick Turner, Managing Director, RCI Middle East, UAE 09:50 Keynote: A Commentary On New Urbanism From Conrad Bigham, Director, Cushman & Wakefield Dave Evans, Executive Vice President, Group RCI, UK Pritzker Prize Laureate Hospitality EMEA, UK Thom Mayne, Principal, Morphosis, USA Philippe Baretaud, Development Director, 15:00 Networking And Refreshment Break Accor Middle East, UAE 10:50 Networking And Refreshment Break Alexandre Sogno, Managing Director Asset 15:30 Vacation Ownership: The Share Option With A Management, Global Asset Solution, Indonesia Difference – Part 2 11:15 Integrating Urbanity With Lifestyle and Singapore Geoff Richards, Executive Vice President, Wyndham Marilyn Jordan Taylor, Partner in Charge of Urban Rohit Talwar, CEO, Fast Future, UK Vacation Ownership, USA Design and Planning, Skidmore Owings & Merrill, USA Lee Tabler, CEO, Tourism Development and Dale P. Young, Vice President & General Manager – 12:00 Achieving Caring Cities By Design Investment Company, Abu Dhabi Middle East, Marriott Vacation Club International, UAE Donna Sultan, CEO, KEO Consultants, UAE Claude Attalla, Managing Director Northcourse 11:10 Networking And Refreshment Break Advisory Services, UAE 12:45 Reflecting The New Hybrid Identity In Urban And Jose Ventura, Executive Director, Interval Architectural Design 11:30 The Good, The Bad And The Ugly: Using Other International, UAE Wael Al-Masri, Partner and Director of Urban Planning Markets As Models and Architectural Design, Dar Al-Omran, Jordan Conrad Bigham, Director, Cushman & Wakefield 16:45 Chairman’s Summary Of Day One Hospitality EMEA, UK 13.30 Lunch For Delegates And Speakers Alexandre Sogno, Managing Director Asset 17:00 Close Of Conference Day One Management, Global Asset Solution, Indonesia TALL BUILDINGS – LATEST SCHOOLS OF THOUGHT and Singapore 14:30 Iconic Towers – Getting The Right Balance Rohit Talwar, CEO, Fast Future, UK David Scott, Chairman, Council of Tall Buildings and Urban Habitat (CTBUH) and Principal, Arup, USA

15:10 Keynote: Supertall, Super Sustainable Adrian Smith, Partner, Adrian Smith + Gordon Gill Architecture, USA

16:00 Networking And Refreshment Break

SUSTAINABILITY – THE REALITY 16:30 High Performance Green Buildings – International Inspiration And Impact Mario Seneviratne, FI. Mech E.,P. Eng., Director, Green Technologies FZCO, Founder and Secretary to the Board, Emirates Green Building Council and Board Member and Chairman –Tools & Projects Committee, World Green Building Council, UAE

17:10 Keynote: New Construction Technologies For Sustainability – The Rotating Towers David Fisher, Chairman, Dynamic Architecture, Italy

17:45 Chairman’s Summary Of Day One

17:50 Close Of Congress Day One

28 $ Cityscape official show daily $ Dubai 2008 programme CONFERENCE

WORKSHOP AND SEMINAR PROGRAMME DAY 2: TUESDAY 7TH OCTOBER

SEMINARS@CITYSCAPE DUBAI

11:00 – 12:00 11:00 – 12:00 16:00 – 17:00 REAL ESTATE THEME HOTEL THEME CONSTRUCTION THEME Investing In UAE Property Market – A Practical Guide Service Quality In The Face Of Saturation Developing And Implementing Best Practice Health And t

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Dubai 2008 $ Cityscape official show daily $ 29 SPEAKERS keynote

SPEAKERS ONE-ON-ONE

Lakshmi Narayanan Jeffrey Willis CEO, Real Estate Bank India Associate Director, Arup

INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE WORLD ARCHITECTURE CONGRESS Topic: Demystifying India – Is It Too Good To Be True? High Performance Green Buildings – International Inspiration And Impact Session timing: 3.15pm Today @ Sheikh Maktoum Hall Session timing: 4.30pm Today @ Sheikh Maktoum Hall

As president and CEO of professional intermediary which in concluding that India A mechanical engineer with associate member of the materials. Secondly, LEED Real Estate Bank India could facilitate real estate is unique in itself and no nearly 40 years experience World Green Building Council is an international badge of (REBI), Lakshmi Narayanan transactions,” adds Narayanan. parallels can be drawn. This is in the construction industry, Tools & Projects Committee. sustainable achievement, which is responsible for the strategic This idea was developed into the greatest mystery of India.” Willis comments: “I have Arup was founded in London will command better sales/ direction of the company. a strong and robust business Narayanan says there been working for Arup for 30 in 1946 and over the years rental prices. Thirdly, there He says: “Being a young model with the help of partners is no “one country-one years, across our offices in it has grown to encompass is the satisfaction of knowing company, I have managed the like KPMG and TCS. Together, market” rule, and that India Europe, the Middle East and 10,000 staff in 37 countries, that something is being operations for the past two they built the strong operational has multiple Indias within the Far East. I am currently with skills across a very done to help in the attempt years, slowly taking a step frameworks and technology herself, which makes it all based in Dubai on my third wide range of disciplines. to slow global warming. back, by putting in an efficient backbone of REBI, which will the more difficult to decipher posting to the Middle East, In a presentation to Willis believes that the senior management team. facilitate its development. tastes and preferences. All having previously been in Cityscape Dubai delegates, cost implication of adhering “I can now focus on Today, the company is looking the common demographic Qatar in the early 80s and Willis will talk about the to LEED depends upon the creating the right ecosystem to expand its network into indicators used across the Abu Dhabi in the early 90s. need to focus on the local level of certification, the for REBI to thrive, by being seven other countries. world, do not work here. The “As a sustainability leader environment in design, to go expectations of the developer the spokesperson for the In his Cityscape Dubai wealthy of Punjab will behave for Arup in the Gulf, I have beyond LEED and to no longer and the approach to the design company and representing it speech Narayanan will be giving completely differently from a long-standing interest in design buildings in isolation process. He says: “If the at various forums, creating the audience a sneak peek the wealthy of Delhi, and sustainable design for buildings from their urban context. design approach is correct, alliances and networks with into the key Indian markets they will be different from and urban developments. Willis says: “LEED there is little additional cost champions of industry.” and how they are driving the the wealthy of Mumbai. And, as a founding member of was devised to move the to achieve gold. In energy, for Prior to REBI, Narayanan was growth story that is India. Narayanan argues that the Emirates Green Building industry forward in terms of example, the existing Dubai involved in the marketing and Narayanan believes that India is not for weak-hearted, Council, and coordinator of the sustainability. Its targets were Municipality regulations will manufacturing of food products, India is a land of paradoxes. short-term investors, but it Technical & Awards Committee, aimed at improving, without take you very close to the and has worked in Asia, the He says: “You will find bullock is a much touted destination Middle East and Africa. carts driving people around of the future, and companies He adds: “Though there has as their operators talk over looking at time windows While The industry can actually design beyond the been no ‘design’ in my plans to mobile phones. The rate of of a decade or more are LEED targets – the challenge is to do so in a way that is arrive at wherever I am today, adoption of some of the new sure to find their time and ( I have discovered the path technologies is leaving market investments worthwhile. acceptable to all players in the industry that I will take into the future observers breathless. But there Indian real estate requires a with REBI and its growing and seems to be no predictability strong single window regulator evolving business model.” in the way in which the to guide the industry and set setting targets so high that performance level required to Real Estate Bank India was Indian consumer behaves. performance benchmarks. the industry would not be become gold certified, and the set up to explore opportunities “The Indian consumer’s Laws relating to real estate interested to take them on. current Dubai World regulatory in the ‘title insurance’ business value-consciousness is now need to be consolidated and The industry can actually authority EHS (Environment, in India. “While researching legendary and it is not easy to made more user-friendly, design beyond the LEED targets Health and Safety) regulations the market, we realised that ‘market’ the market. In fact he says. “Transparency is – the challenge is to do so in will get you very close to there was a tremendous marketers around the world are the key watch word and a way that is acceptable to all silver certification.” opportunity to create a now more or less unanimous real estate in India can do players in the industry.” However, if the developer with oodles of that. Though He believes that the is focused on minimal apparently real estate has readiness of developers to pay expenditure and maximum been granted industry status, for LEED certification varies, return, this is likely to be the financing side of it still depending upon their interest perceived as a greater needs to reform and be in the occupancy stage, what additional cost, he adds. treated at par with other I am responsible for liaison image they wish to promote According to Willis the UAE industries,” adds Narayanan. with the US Green Building and their conviction that a is moving very fast in terms The Indian economy is Council for the localisation of LEED badge will dictate better of green building and LEED growing at seven to eight LEED, (Leadership in Energy revenues. However, the level accreditation. In terms of percent per annum and real and Environmental Design) and of acceptance is growing. enforcement and promotion he estate is barely keeping pace the production of the EGBC For Willis the motivation to believes that the authorities with demand. There may Green Building Guidelines.” excel on LEED is threefold. are becoming more and more be talk of a slowdown, but Willis is also currently a Firstly, there is the long- active within the UAE. He given the growth trajectory member of the advisory group term improvement in the adds: “More education is of compounded growth of for the Sustainable Design building’s performance against required, but the fact that 25 percent per annum for of the Built Environment a background of inevitable it is becoming enshrined in the past few years, even programme at the British increases in the cost of new and changing regulations a slowdown leads to a University in Dubai and an energy and replacement will force that forward.” growth of five percent. The Credit Rating Information Services of Kirsch Center India (CRISIL) estimate that the real estate stock in India will reach US$1.4 trillion by 2010, growing Golden Gate Oquirrh Park from the current figure of US$950 billion. Punahou Case

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32 $ Cityscape official show daily $ Dubai 2008 NEWS update

Salwan announces new JBR project Hotel apartments boast stunning views

DUBAI – Salwan, an offshoot of the Dubai Properties Group, has launched a new development at the Jumeirah Beach Residence (JBR). According to the firm, Salwan Hotel Apartments features 204 rooms of various sizes and is fully equipped with nearby amenities and panoramic views of the bay. Mada’in Properties to Saeed Bushalat, chief executive officer of Salwan, said the development has been launched to meet the showcase multi-billion demand for premium property in Dubai. dollar projects eW“ believe the excellent world-class amenities and the choice location will make Salwan Hotel Bay Terrace will be company’s Apartments a distinct choice for travellers and resident visitors,” he stated. third development Other services offered by the subsidiary include the sale and lease of properties, management of Mazad DUBAI – Mada’in Properties will offer an exclusive Auction House, property advisory services and strata preview of prime properties strategically located in and property management. three key districts in Dubai during its participation in Salwan earlier announced the appointment of Cityscape Dubai this week. RSA Insurance as providers of cover for customers The Bay Terrace in the Business Bay area, The THE WAVE, MUSCAT, purchasing property in the JBR. Rubix in Dubai orldW Central and the H Tower Its parent group Dubai Properties is finalising in Meydan City will anchor Mada’in Properties’ insurance packages for homeowners at its Executive presentation. Towers development in Business Bay. Stand CE10 Bay Terrace is poised to be the third project to be launched by Mada’in Properties after the Marina PIONEERS Arcade and The Domain. Amid“ the ongoing real estate rush that is sweeping across the UAE market, Mada’in Properties has remained committed to its strategy of developing SUSTAINABLE truly distinct and unique properties that offer maximum investment value to investors and deliver optimum lifestyle benefits to end-users,” said Abdul Aziz Al Awar, CEO of Mada’in Properties. Located on a prime area measuring 3,130 square DEVELOPMENT metres and with a total built-up area of 15,650 square metres, Bay Terrace offers a range of one, two and three-bedroom apartments along with duplex- type accommodations and penthouses. Amenities include separate fitness centres for men and women, IN OMAN a roof garden, indoor and outdoor swimming pools, Developers of US$2.5 billion project and ample parking spaces. The Rubix project is a residential development place emphasis on eco-friendly consisting of three buildings and a unique common Environmental study Grand Plaza at the ground floor. ithW a total built-up building practices area of 34,374 square metres, the project will have exceeds government studio, one and two-bedroom apartments along with OMAN – The developers of the US$2.5 billion aveW project in Muscat are similar facilities to Bay Terrace. to implement sustainable development practices. The project, the first requirements Offering a total built-up area of 42,000 square 100 percent freehold development in Oman, is a joint venture between EMP plan is 200 percent more in-depth metres, the H Tower is a mixed-use development aterfrontW Investments, representing the Government of Oman, the comprising a 10-storey office tower and a 23-storey National Investment Funds Company, which represents Omani Pension residential tower equipped with one, two and three- Funds, and the UAE-based Majid Al Futtaim Group. BAHRAIN – Diyar al Muharraq has commissioned bedroom apartments, duplexes and penthouses plus The aveW is a mixed-use community development, spread along six international environmental experts to carry out an the requisite number of facilities. Stand ZD20 kilometres of beachfront, and the developer places a significant amount of environmental impact assessment (EIA) and marine emphasis on eco-friendly initiatives as part of its design and development, studies on a scale unprecedented in Bahrain on its including energy efficient construction modules, best practice principles in unique master planned city. creating green spaces and adopting sustainable water recycling techniques. The end result will be a comprehensive and far- All“ the initiatives which we have undertaken are not mandatory for reaching environmental management plan (EMP). CITYSCAPE SOUNDBITE... the construction but we have considered that ‘going green’ is an intrinsic The developer has dedicated over US$8 million part of The ave,W Muscat being recognised as socially responsible to the programme, which exceeds Bahrain’s MEHDI AMJAD, sustainable developers. eW are looking to apply for LEED accreditation governmental requirements by more than 200 percent. where appropriate. This recognition is especially important to us when Aaref Hejres, CEO of Diyar Al Muharraq, said: President and CEO, one considers that a prime motivator for developers to create a certified Preserving“ the environment is at the heart of sustainable building is to differentiate their project from the competition,” everything that Diyar al Muharraq stands for. As CEO, Omniyat Properties said Nick Smith, CEO. I challenge everything that we do, to make sure it’s of How important is it for you to be present at The exterior wall of the units in the development have cavity insulation the highest standard, and this applies equally to our this and other Cityscape events? Cityscape with low E glazing, this reduces heat loss from within the building as well environmental management plan.” exhibitions are the most suitable platform for as reducing the amount of solar heat absorbed. Diyar is working with the UNEP (United Nations any real estate company to enhance Green spaces have also been created throughout the project that are planned Environment Programme) to actively explore a two-year its network and client portfolio by to create habitats for local bird life and will be irrigated using recycled water initiative, designed to improve regional EIA practices. showcasing the latest developments and techniques, while an artificial reef is being created on the sea bed. Diyar Al Muharraq’s programme meets the orldW meeting potential clients and partners. The developers are also sourcing the bulk of building materials, cement Bank guidelines for environmental commitment, and rock requirements from within 45 kilometres of the construction site with one to two percent of the total budget dedicated reducing the construction carbon footprint. The development will also run across a range of environmental initiatives, from EIA, a centralised cooling plant to provide air-conditioning to each apartment monitoring, compensation, habitat enhancement and block rather than separate refrigerant units for each unit. other measures. Stand 6920 A total of 850 units have sold so far and 120 villas and townhouses will be delivered by the end 2008.

34 $ Cityscape official show daily $ Dubai 2008 NEWS update

CITYSCAPE SOUNDBITE... Regional real estate ABID JUNAID sector bucking Executive Director, ETA Star international trends hatW are you hoping to achieve at Cityscape Dubai? Being one of the leading developers in the region, Cityscape Conferences at the world’s largest Dubai provides us with a great opportunity to showcase our B2B real estate investment and strength and vision. Our objective here is to communicate our achievements and latest offerings with our customers, potential development event focus on regional buyers, investors, stakeholders and financial organisations boom despite global downturn

DUBAI – The western downturn in the global property Phase Two for market contrasted with the Middle East, where the real estate market continues to power ahead, comes Ajman One under detailed examination as part of this week’s Cityscape Dubai conference programme. Aqaar launches second phase of A series of important conferences is scheduled, US$750 million complex at which the industry’s leading experts will focus on world and regional developments. AJMAN – On the northern peninsula of the Arabian ouY“ only have to look out of any window to see Gulf, the emirate of Ajman is enjoying a resurgence the astronomical property growth that is transforming in economic growth and popularity with investors cityscapes,” said Shabnam Rawal, group director of and end-users alike. Its growing free zone industrial Cityscape Conferences. area and its proximity to both Dubai and Sharjah hileW“ much of the west appears to be heading has enhanced Ajman’s potential as a business and for a slump, the property business in the Arabian commercial destination, by providing convenient Gulf, along with China and India, continues to grow. accessibility to regional and global markets. This is just one of the many intriguing areas that will Aqaar Properties, the real-estate and property be covered in the widest range of conferences yet at development company based in Ajman, has Cityscape,” she added. revealed two projects that it hopes will contribute The week’s events include the Real Estate to Ajman’s progression. It will launch Phase 2 of its Leadership Strategy Summit, bringing together the maiden project, US$750 million Ajman One, the shrewdest real estate investors from around the world residential, commercial and hospitality complex, to address the trends, strategies and opportunities that encompasses three freehold office towers called in the global market place. The International Real Apex Business Towers, that will house 640 offices; a Estate Investment and Development Conference –the convention centre, and a four-star business hotel with main event in the conference schedule - features serviced apartments. world-class speakers for three days of analysis of the Aqaar will also unveil its inaugural luxury project, macro-economics of real estate development and which will be the first waterfront development in financing options; as well real estate marketing and Ajman. The planned development includes seven branding in the region. high-rise towers, a luxury hotel, residences, a souk, The orldW Architecture Congress also runs parallel spa, retail outlets and restaurants. with the week’s activities, as Rawal elaborates: Designed“ His Highness Sheikh Rashid bin Humaid Al for architecture and urban planning professionals Nuaimi, Chairman, Municipality and Planning it provides a regionally incomparable opportunity Department of Ajman commented: ithW“ the AL-SHOALA AND to learn about the latest architectural concepts, launch of Phase 2 of Ajman One and a new luxury sustainability innovations and design solutions.” development soon to be announced, the emirate of Chaired“ this year by former Mayor of London, Ajman is entering a new era of exciting growth and Ken Livingstone, the programme provides a high- progress. Ajman is transforming from a uietq emirate EMAAR SIGN level analysis of the challenges faced in architectural into a vibrant and progressive tourism and business projects internationally, with a special focus on destination.”Stand RB10 initiatives in the Middle East.” In addition, the week sees a no-holds barred conference on the hotel and tourism industry in the US$7.2 BILLION Middle East at a crucial time for the region’s booming hospitality sector. The“ second Cityscape Dubai Hotel CITYSCAPE SOUNDBITE... and Tourism Investment and Development Conference will host key speakers such as Jan Laverty Jones, MOHAMMED AL SAQQAF former Las egasV Mayor, and look behind the facts, JOINT VENTURE the figures and the finances of the industry to discover CEO and Vice Chairman, Rawabi Rumah mixed-use project to cover the underlying trends,” said Rawal. This year, for the first time, the Middle East ALARGAN International Real 31 million square metres Facilities and Asset Management Conference comes under the Cityscape umbrella and will take Estate Company SAUDI ARABIA –His Royal Highness Prince Meshal Bin AbdulAziz Al place at the Crowne Plaza Hotel opposite the Dubai hatW are you hoping to achieve at Saud, chairman of Saudi Arabia’s Bayah Council, and owner of Al-Shoala International Exhibition Centre. Cityscape Dubai? Cityscape is an appropriate Group of Establishment, has announced a US$7.2 billion joint venture ithW“ so many uncertainties in the world combined platform to showcase our latest developments project with Emaar Properties to develop a 31 million square metre master with a region that appears to be bucking the and it also gives us an opportunity to stress planned community, Rawabi Rumah, located near Riyadh. international trends, there is considerable excitement ALARGAN’s commitment to energy –efficient green Emaar will share its core competencies in integrated mega-project throughout the industry and all its sectors about this buildings. ALARGAN is the first company in Kuwait development by creating a vibrant community featuring luxury homes year’s Cityscape ”concluded Rawal. Stand CB35 and the first real estate developer in the Middle East and commercial space, retail outlets, healthcare centres, educational – to become a member of the United States Green institutions and community centres. One of the highlights of Rawabi Rumah Building Council. In addition, Cityscape also is a proposed date palm park and green belt that will sprawl over 1.6 gives us an excellent chance to network with million square metres –more than the size of Hyde Park. potential institutional investors and high-profile His Royal Highness Prince Meshal said: Rawabi“ Rumah will be a path- industry professionals breaking project for Saudi Arabia and reflects the vision of The Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz Al Saud to further strengthen the economy and enhance the welfare of the people. Rawabi Rumah will create over 25,000 direct jobs across various economic sectors.” He added: Emaar“ is already an active partner in the growth of Saudi Arabia, and through the partnership we are leveraging on the company’s capabilities to create world-class master-planned communities. Rawabi Rumah will be a trend-setting development and a new lifestyle destination for the Saudi people.” Stand 7E10

36 $ Cityscape official show daily $ Dubai 2008 update NEWS

Awali City, Ajman Italian job for select residential project Ferragamo in interior design agreement for Pentominium MIXED-USE DUBAI –Italian luxury fashion house, Salvatore Ferragamo Italia, will design some of the exclusive penthouses in Dubai’s Pentominium building following a landmark agreement with Trident MEGA PROJECTS International Holdings. The deal is the first venture into the high-end luxury residential segment for Salvatore Ferragamo Italia. The Pentominium will be the tallest residential building in the world and is scheduled for completion HERE TO STAY in 2012. It is 500 metres high and the 120-storey Modern lifestyles demand large, mixed- tower offers the ultimate in exclusive services to its 120 penthouse owners. use developments says real estate boss Michele Norsa, CEO of Salvatore Ferragamo, said: This“ is an important achievement in the AJMAN –An Awali Real Estate Investments official has claimed that mixed- brand extension that lays the basis for further use ‘mega developments’ are likely to be the future standard for real estate opportunities.” development in the region. azirW Daredia, CEO of Trident International Mohammed Hussein Abdullah Al Nemer chief marketing officer of Awali Holdings, added: eW“ are very pleased that Salvatore Real Estate Investments believes that the growing economy in the UAE, Ferragamo will make its debut in the top-end luxury particularly in Ajman, attracts larger numbers of new residents each year, properties through the Pentominium project.” creating a knock-on effect in the real estate sector. The official launch of the development will take The result is an increasing demand for high ualityq residential and place today with a spectacular fashion show and commercial projects which prompts the need for convenience, luxury, charity event. Stand 3E20 exclusivity and integrated community services. Al Nemer said: The“ growing trend towards larger, more comprehensive developments is a logical progression from the traditional, smaller projects which have generally been single-faceted. He added that mega-sized, mixed-use developments The“ mega projects we see being erected today are of a far more diverse not only cater to the essential requirements for modern nature, with a tendency to include a great deal more than simply residential or living, but also play a vital role in the sustained office space. development of the region’s economy, as the sheer Instead,“ the inclusion of a variety of services and facilities in a single volume of development required is not only indicative of development provides a secure and convenient environment in which people the vastness of the market, but also a major contributor are able to time-manage their lives, work and play.” to its growth in terms of job creation.

Dubai 2008 $ Cityscape official show daily $ 37 NEWS update

Wasim Saifi Kingdom Tower, Riyadh Qatari Diar forms independent developer of Lusail New company for development, construction and ongoing operations

QATAR – atariQ Diar is to form a new company to work on the development, construction and ongoing operations on its Lusail project. The firm will be managed separately from atariQ Diar, with Mohammed Bin Ali Al Hedfa appointed as the chief executive officer. He will report to chief executive officer of the atariQ firm, Ghanim bin Saad al-Saad, who said: Due“ to the incredible international growth of atariQ Diar, the board of directors has decided that to facilitate the ongoing success of Lusail, a new separate Tamweel to provide company is formed. Its“ sole purpose will be to focus on Lusail.” Al financing for Corporate Hedfa stated that the creation of the new firm will ensure atariQ Diar’s relationship with its customers Tower investors is personalised. The new development will cover 35 square UAE lender partners with Sheffield Real kilometres and contain sufficient residential and Estate to offer businesses finance commercial facilities to cater for an estimated 200,000 people. DUBAI –Tamweel, the largest provider of real estate Meanwhile, Steel Guru reported atariQ Diar had finance in the UAE, has announced that it will offer signed a deal with a German engineering firm to commercial finance to businesses interested in provide a national rail link between Bahrain and Doha. buying office space in the Corporate Tower under Stand ZE10 development by Sheffield Real Estate, a subsidiary of Sheffield Investments Limited. Corporate Tower will total nearly 100,000 square metres of commercial space spread over 44-storeys and a 13-storey extension of office units, in the Omani real estate mixed-use free zone development of Jumeirah Lake DUBAI GROUP Towers in Dubai. market continues asimW Saifi, group chief executive officer, Tamweel, said: Tamweel“ is pleased to partner with rapid growth Sheffield Real Estate and offer exclusive finance to US$20 billion forecast for 2010 end-users of Corporate Tower. Tamweel will offer STEPS UP FOR tailor-made solutions to suit the needs of the project and the specific requirements of investors and OMAN –The Omani real estate market is expected business entities.” to continue its rapid growth well into the future, with Abuali Mallik Shroff, chairman, Sheffield analysts predicting that the value of demand will top Investments Limited, said: Corporate“ Tower was SAUDI ARABIA US$20 billion by 2010. launched to cater to the growing demand for office Financial services arm of Dubai Holding Market studies have also revealed that total space in Dubai. eW are confident that Corporate investments into the real estate sector in Oman Tower will prove to be an attractive investment is founding member of Mazaya Saudi reached US$4 billion in 2007, up from US$0.75 opportunity for both end users and investors alike. million in 2005. Tamweel has a solid track record of providing DUBAI – Dubai Group, the leading diversified financial services company Oman’s residential property sector captured innovative financing solutions through their diverse of Dubai Holding, has become a founding shareholder in Mazaya Saudi the biggest share despite the recent increase in product portfolio and unmatched service, and we for Commercial Investment Co. (Mazaya Saudi) after subscribing to a 20 real estate prices, thereby further underlining look forward to working with them in offering the best percent stake. the competitiveness of Omani-based projects financing options for our customers.” The transaction was completed through its subsidiary Dubai Capital across the GCC. Sheffield Real Estate’s other developments include Group, which has invested approximately US$135 million in the Saudi The growth of investment into commercial Marina 101, Marina Suites, Diamond Mall, Supreme company’s equity. activities including the manufacturing and tourism Residency, Universal Apartments and the Classic As a founding shareholder, Dubai Capital Group will play an important sectors is also expected to drive the demand for Apartments projects. role in the development of the company and will be represented on its real estate this year. To date, Tamweel has provided over US$3.7 billion board of directors. ithW residential properties emerging as the highest in financing for UAE projects. Stand 6B30 Soud Ba’alawy, executive chairman, Dubai Group, said: As“ the leading income-yielding investments within the Sultanate, diversified financial services company of Dubai Holding, Dubai Group Dubai-based Eqarat.com, a total solutions provider attaches paramount importance to diversifying, not only geographically, but to the real estate sector, is gearing up to launch the also into multiple and profitable business sectors. first phase of ‘Al aser’Q –a US$168 million themed This“ transaction is in line with our long-term strategic plans as we residential community project. CITYSCAPE SOUNDBITE... believe Mazaya Saudi is ideally positioned to become a leader in the The luxury villas project will offer 180 three- and booming Saudi real estate sector. eW are also pleased to have forged an four-bedroom villas with an average built-up area of SIPKE FAENSTRA association with Al Mazaya Holding, one of the most dynamic and visionary 278 square metres, in addition to a service block that institutions in the GCC’s real estate landscape.” will offer 90 furnished apartments. Chief Commercial Officer, Mustafa Farid Geninah, CEO of Dubai Capital Group, added: This“ The scheme is being developed by Arabian Gulf transaction demonstrates our confidence in the Saudi real estate sector Gate Investment (AGGI), a leading developer of high La Perla International Living where, it is estimated, that the long term demand for housing units is 1.3 profile and specially designed projects. hatW are you hoping to achieve at Cityscape million units up until 2015. The company’s stronger presence in the market is Dubai? Introducing our global real Further“ market statistics indicate that only 45 percent of Saudi expected to further boost its Oman-based business estate portfolio and our unique lifestyle families own houses, which means that in the long run there are real operations, which has been launched as part of its concept, and at the same time increasing growth opportunities in this important sector. regional expansion strategy. La Perla’s brand awareness in the UAE This“ investment will also contribute to strengthening our regional private eW“ are expecting further growth in the Oman real equity portfolio, which has achieved superior returns in sectors such as estate market and our growing activities within this fertilizer production, cement, glass, aviation and real estate development.” potential-laden destination is a testament to our strong Headquartered in Riyadh, Mazaya Saudi will invest in attractive interest in increasing our presence and strengthen our opportunities in the Kingdom’s real estate sector, targeting the middle and hold on the real estate services sector in the Sultanate,” high end market in the residential, commercial and office segments. said Ali Hussein Al Rahma, CEO, Eqarat.com.

38 $ Cityscape official show daily $ Dubai 2008 DAY 1 REVIEW

JADE FUOCO Asif Khan Amanda Richter Louis Dionne Laluna Estate, Grenada Annur Capital, UAE Marbella Property Noor Architects, Canada I am here representing an estate in the Caribbean and flew in from It’s only the first day but Investments, Spain Friends told me to go and Grenada for the show. I am looking for an investor to buy the site, so far it has been very I’ve been coming to see the show, so I came. which would be ideal for a resort development. So far I’ve had many good. I am looking to buy Cityscape Dubai since It will be interesting to see enquiries. Throughout the real estate industry people know about Dubai. something and have already 2004. This time I am here how it goes over the next few But for Cityscape you can’t imagine it until you actually see it. This visited uiteq a few developers on a fact-finding mission and to days and, more importantly, exceeds all expectations and is like nothing I’ve ever experienced before. with a view to investing. There analyse market trends. So how the market pans out in the are many interesting far, the show seems much future with all that has developments being bigger than previous years. been happening in the US showcased here. market in the last week.

Tony Colborne Christopher Alaa Hatachet Par Louvre Systems, UK Jameel Square, It’s large! eW are looking Pothan, Saudi Arabia to move our business to Palatial Properties, UAE This is a huge show! I flew Dubai and I am here to get My first impressions are in from Jeddah for the event an insight into what is going on. that some of the stands and have plenty of meetings I have colleagues already based are very impressive. eW are arranged for the week. Everyone here and they recommended I considering moving out here to is talking about real estate visit the show. This is my first work in real estate and I want development so I am here to see Cityscape, and I will do to learn more about the what is new in the region. both the Dubai and Abu market. The development This year’s show seems Dhabi shows next year. seems to be ongoing. much bigger than last year.

Layla Clarke George Moore Bhavesh Rachch Guy Geier Michael Owen Asteco, UAE Entech Creative Impact Realty, UAE FXFowle, US Interserve FM, UK This is my first time to Industries, US As developers and real As an exhibitor we are here I am here researching the Cityscape Dubai. I went to The show is very impressive. estate agents, we have seen to network and generally facilities management (FM) the Abu Dhabi show earlier I have flown in from the US a good number of people market the firm. The show market and have flown in this year and that prompted me and have never seen a show coming to the show and are seems just as busy as from the UK for this show. eW to come here. eW are promoting like this. It is really positive. I’ve expecting to do some good last year and, if anything, are looking at entering the our property developments and had some good meetings and I business. The extra day is a seems to be picking up. market and are here to see are confident of a have certainly got a feel for big benefit to us. whether this is feasible. successful week. eW will how confident developers definitely be back next year. are in the region.

TALK OF THE SHOW Cityscape Dubai gets off to a great start as both exhibitors and visitors enthuse about the bigger, better and one-day longer exhibition

Dubai 2008 $ Cityscape official show daily $ 39 NEWS update

Dubai Holding takes stake in Acacia US$76.9 million acquisition made through Dubai Ventures Group

DUBAI – The Dubai Group, a subsidiary of Dubai Holding, has acquired a controlling stake in the Bahrain-based real estate firm Acacia. According to the firm, the acquisition was made through the Dubai enturesV Group at a cost of US$76.9 million. It means it is now the largest shareholder in the company with four representatives on its board of directors. The investment is expected to provide the Dubai Group with access to a new network of business Powering the new partners across developed markets and a new range of financial products. pyramids Abdulhakeem Kamkar, chief executive officer of Dubai enturesV Group, said: This“ is a strategic Timelinks to unveil city of the future investment for Dubai enturesV Group as we seek to at Cityscape expand our real estate portfolio across the Middle East and North Africa region, as well as other DUBAI – Timelinks, a pioneering environmental emerging markets.” design company, unveiled a sustainable city of the He added that the company is looking forward future at Cityscape Dubai. to working with Acacia to add greater value to its The city –called the igguratZ project –is designed investments and generate increasing returns. in the shape of a futuristic pyramid which, according to Meanwhile, Dubai Group acquired a 26 percent Timelinks, could support an entire community of up to stake in a retail mall in Delhi via a joint venture with one million people by harnessing the power of nature. the Anant Raj Group. Ridas Matonis, managing director of Timelinks, said: igguratZ“ communities can be almost totally self-sufficient energy-wise. Apart from using steam AQUITAINIA TO Marzooq Al Rashdan power in the building we will also employ wind turbine technology to harness natural energy resources.” But it is not just about reducing the carbon footprint. The 2.3-square-kilometre pyramid has many other benefits. holeW“ cities can be accommodated in BE LAUNCHED complexes which take up less than 10 percent of the original land surface. Public and private landscaping will be used for leisure pursuits or irrigated as agricultural land.” Matonis added: If“ these projects were realised ON THE WORLD today, the world would see communities that are Development to sit on fusion-border sustainable, environmentally friendly and in tune with their natural surroundings.” between France and Spain The concept will also mean a better ualityq of life for its inhabitants. Transport throughout the complex UK – Select Property, a UK-based developer, is to work with Dubai’s Select would be connected by an integrated 360-degree Group to build the Aquitainia luxury development in The orldW project. Three major launches network so cars would be redundant. Biometrics would The development is situated on the fusion-border between France and provide security with facial recognition technology. Spain, two of the 300 islands which make up the real estate initiative. for Abyaar Timelinks has already patented the design and According to the firms, the joint venture is a combination of Mediterranean incorporated technology into the project, and has elegance with contemporary designs and modern style and will feature in 800 Arts precinct and towers for applied to the European Union for a grant for units covering more than 92,903 square metres. Dubai developer technical projects. Included in the development will be a mixture of one and two bedroom A number of eminent professors from Europe will suites, three bedroom penthouses as well as a number of villas and DUBAI – Founded in 2005, Abyaar Real Estate be on hand to explain the technicalities of how the penthouse apartments. The villas will have rooftop plunge pools with views Development is a joint venture between Kuwait’s igguratZ project works and how these communities across the Indian Ocean. Aayan Leasing and Investment Company and Al can be integrated in master projects. Stand MH40 Properties on Aquitainia are to adopt the names of some of the more Rashdan Group. Three new Dubai developments will popular resorts in France and Spain to reflect the names of the islands be showcased during Cityscape –two new towers they are located on. and an innovative arts precinct project. The Barcelona, Marbella and Madrid are to be used for Spain while Cannes, properties will include Abyaar’s signature entrances, Monaco and St Tropez will represent France said the developers. double-volume ceilings and contemporary inside and outdoor social spaces. Marzooq Al Rashdan, vice chairman and managing director of Abyaar, commented: Our“ aim is to continually outdo customer satisfaction, and offer design CITYSCAPE SOUNDBITE... and uality-consciousq buyers property which surpasses their expectations in terms of luxury and excellence. PATRICK GALLAGHER Cityscape Dubai is one of the foremost property exhibitions in the world and therefore an ideal venue to Patrick Gallagher Decoratives and Design showcase and further emphasise our commitment to hatW do you think will be this year’s hot topics? luxury, passion and precision.” Stand 1D20 Cost“ effective approaches to environmental sustainability; cultural identity in Middle Eastern architecture and the impact of global economic decline on the Middle East.”

40 $ Cityscape official show daily $ Dubai 2008 update NEWS

Masdar CIty DUBAI SPORTS CITY OFF-PLAN LAUNCH The final residential Arabian-themed building in Sports City released today

DUBAI – The fifth and final residential building in Dubai Sports City’s Canal Residence estW is released for sale today. Following the success of the Mediterranean, Classic European, enetian,V and Andalusian-inspired buildings, the Arabian-themed residence is the last in the series in the Downtown District of Sports City. The development will offer studio, one-bedroom, two-bedroom, three-bedroom, terrace apartments, duplexes and penthouses. Khalid Al arooni,Z president, Dubai Sports City said: ithW“ Dubai Sports City’s stadia infrastructure growing at a rapid pace, and the inauguration of the Els Club earlier this year, the demand for real estate in this area has increased.” Dubai Sports City incorporates international schools, medical facilities, emergency services, parks, playgrounds, hotels, Next Generation Clubs, internationally-renowned sports academies (including the Manchester United Soccer School); and access to state-of-the-art stadia, in addition to Arena Mall, the city’s largest retail destination, Significant“ research and investment has been deployed to ensure a balance that enhances the lifestyle of Dubai Sports City’s residents,” added arooni.Z Stand 7G20

Dubai 2008 $ Cityscape official show daily $ 41 industry report FOCUS

REAL ESTATE ACTIVITY REPORT AUGUST 2008: OMAN

GENERAL PRICE INDEX IN OMAN – TRENDS TRENDS AND MOVEMENTS IN RESIDENTIAL LAND PRICES The square metres transacted reached 268,000, marking a new AND MOVEMENT The price of deals concluded in August went up by 2.4 percent level. And liquidity was affected by the rise in volumes and a slight Omani real estate activity saw the best stability indices as with a cumulative increase of 12.1 percent since April, which drop in average prices; therefore, it went up by 29.2 percent, at a regards the level of drop in deal volume and average price trends indicated a gradual rise in prices revealing a ‘natural activity’ in total value of US$151 million. More liquidity is expected to enter in the Gulf region, during the month of August. The prices of deals without speculation or unrealistic hikes in average prices. the sector which promises lucrative opportunities unavailable in concluded deals continued to rise at varying percentages while This indicates that activity in the sector will continue during the most of the region’s markets. the volumes declined by less than the rates seen elsewhere coming period, depending on the prevailing square-metre-price of in the region. US$203, which remains the lowest in the Gulf. TRENDS AND MOVEMENTS IN RESIDENTIAL The commercial land sector saw a tangible hike assuming 30.8 The volumes of deals dropped by 11.1 percent, bringing APARTMENTS AND VILLA PRICES percent of total activity and continuing to attract more liquidity transacted square metres to 1.3 million. The deals reflected an The index for deals concluded on residential apartments and due to the rapid growth it currently enjoys as evidenced through improvement in the number and the areas transacted, compared villas has continued to rise gradually since April, increasing by increasing demand for components of all sectors. to July. The sector still accounts for the largest share of the deals, 3.1 percent at a cumulative rate increase of 20 percent. This The Omani real estate sector is expected to receive more local representing 81 percent this month. However, the liquidity invested indicates that the sector has maintained demand levels, which and foreign liquidity, capitalising on the low prices and good dropped by nine percent as a result of the drop in the volume of are considered to be the highest in the Omani real estate sector number of projects in the pipeline; dependent on the fact that the deals and the rise in average prices. due to lack of supply. real estate sector remains attractive and provides development Total value of the liquidity circulated amounted to US$265 The price per square metre reached US$1,660, US$52 more and growth opportunities which require some time to complete, million, indicating that the residential land sector still has good than the previous price. et,Y increases are in the air depending compared to development progress seen in other countries. investment opportunities for investors whether in the short, medium on the drop of prices in general, and increasing local and regional Naturally, the flow of capital to countries with good investment or long-term. demand for villas at all levels and locations, with expectations of opportunities and high profits reduces investment risk. sharper demand in the years to come as real estate development The volumes of concluded deals fell by 10.7 percent, bringing TRENDS AND MOVEMENT OF COMMERCIAL companies look towards the sector. transacted square metres to 1.6 million, still revolving around the AND INVESTMENT LAND PRICES The square metres transacted during August amounted to 36,500 levels seen during May and indicating the continuity of activity Noticeable activity was seen in the index for the commercial and at a total value of US$62.3 million. The period ahead is expected to despite the fall. investment land sector, but was reflected in the form of a slight see more activity in terms of the level of volumes and liquidity values. Liquidity circulation was affected by the number and volume of drop in the price of deals by 1.2 percent, at a cumulative rate deals as well as the 1.5 percent drop in average prices; declining increase of 2.7 percent since April, where the price per square Data provided by Mazaya Real Estate Index overall by 23.1 percent which equaled US$478 million, in which metre amounted to US$946. In the land classified as both the commercial land sector accounted for 31.6 percent and the commercial and residential, prices reached US$429 per square housing land sector 55 percent. metre, a figure seen as high compared to 2006. Prices on the whole gradually climbed from deal to deal and month to month. The volumes of deals went up by 30.8 percent, with cumulative OMAN PRICE INDEX MOVEMENT 4500 rate increases hitting 217 percent since April, which indicates that the commercial and investment land sector assumes the largest 4400 share of activity in the Sultanate and reflects more activity on the commercial level in general. 4300

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Dubai 2008 $ Cityscape official show daily $ 43 cityscape intelligence FOCUS

TRACKING SENTIMENT Ian Ohan, head of investment transactions, Jones Lang LaSalle, MENA, discusses the new Investor Sentiment Survey and the economic and real estate outlook for the Middle East with Cityscape Intelligence

WHAT IS THE INVESTOR SENTIMENT SURVEY? TO WHAT EXTENT DO YOU THINK MIDDLE small amount relative to what you are seeing in invigorated by the leadership in terms of the 2030 The survey pooled the views of over 2,000 EAST ECONOMIES ARE INSULATED FROM the rest of the world. Part of it also has to do plan that has been put in place. Abu Dhabi has members of the regional real estate industry RECENT GLOBAL EVENTS? with the fact that the international Commercial the ability to learn from what has happened in including investors, developers, sovereign wealth Increasingly, the Middle East is going to be Mortgage Backed Securities (CMBS) market is Dubai and do things differently. But Dubai did funds and high net worth investors and is the first seen and will play a more and more important a bit uietq these days, so the ability of banks what it had to do because they were the pioneers. of its kind to be conducted in the region. It was role, going forward, in the global economy. The to take mortgages and package them up on a They targeted their own path and Abu Dhabi will undertaken in the aftermath of the collapse of Middle East is affected, as are most regions, by securitisation basis, and free up liquidity, has do the same with that knowledge in mind. The Lehman Brothers, and is thus the most up-to-date the recent events of the economic downturn. been curtailed, because international markets are economic power of Abu Dhabi going forward is not and relevant source on investor sentiment in the eW look at what has happened in some of the not there for that at the moment. something that should be ignored in the market, MENA region. markets around the world, some of them have had and one of the findings of our survey was that eW focused on two main areas. The first looked very dramatic impact, whereas the Middle East WILL THE TIGHTENING OF LIQUIDITY HAVE the economic outlook for Abu Dhabi is probably at global outlook and what investor sentiments has experienced a much milder impact. It will AN IMPACT ON LARGER PROJECTS? among the strongest in the region. are towards the international real estate markets. certainly have an influence in terms of the way we For the larger projects, there is still financing eW examined several different areas within that, do business here. available. The big projects will happen, but they WHAT IS THE ATTITUDE OF INVESTORS TO and the results were uiteq interesting. The other The important thing is that investors are going may start in phases or in a more measured way, SUSTAINABILITY IN THE REGION? area we probed very deeply was what investors’ to be more selective here, as most investors are which again is a positive sign for the economy in The government of Abu Dhabi has taken the lead real estate performance expectations are for internationally. There are still certain interests terms of bringing product on an as-needed basis. on this with the Masdar development, which will the region. The specific areas that we looked at within the region and there is still a lot of liquidity The economic fundamentals of the market are likely set international benchmarks with respect were what their views are on future operating so, going forward, there will be a greater focus still very strong and we shouldn’t forget that. to environmental sustainability. Associated performance across geographies within the MENA on value, resulting in a return to real estate with the Masdar development will be a series region. eW looked at their short-term investment fundamentals. That is key to the market and, in TO WHAT EXTENT DO YOU THINK ECONOMIC of standards that will be adopted to provide intentions, meaning are they buyers, builders or our view, is very encouraging. INFLATION AND THE INFLATION OF accreditation. It is starting in Abu Dhabi and is sellers in terms of real estate investment? And Internationally, it is extremely difficult to find CONSTRUCTION COSTS ARE A PROBLEM? likely to be rolled out across the UAE, so there is what their expectations are with respect to yields financing today, and in the region financing is Inflation of construction costs is a big factor a whole sustainability agenda here and Abu Dhabi with income-producing properties, by asset class. certainly tightening. This is a good thing in the here and has contributed to rising prices of real has a bit of an advantage, simply because they This is very interesting information in a market long-term, but in the short term it will create estate products. I do think we are reaching a are starting with that in mind. that does not have strong benchmarks for value some difficulties. Having said that, you can still point where it is becoming a significant issue, In Dubai, if you talk to developers it is also and pricing. finance projects here in the Middle East, which and will be one of the factors that will reduce the very much on their agendas. It is particularly eW also looked at the key influencers of makes it very attractive for international investors, realisation of supply in the short-term. Again, I important with respect to international corporate investor decision-making, the impact of the in particular, who still have some equity and see the reduction of supply, or a more measured occupiers who now have it within their charters global credit crunch, and the perception of that capital to deploy and may not be able to do so in approach to supply, as a very positive feature of to only occupy environmentally-sustainable within the Middle East. eW also probed some their own markets. the economy in the Middle East going forward. buildings. So there is an impact on value, and issues such as environmental sustainability, as soon as there is an impact on value then it is the importance of sustainability and how that MIDDLE EAST COUNTRIES HAVE HUGE DO YOU THINK A CORRECTION IN THE DUBAI something investors respond to. eW were actually influences investment decisions. Some of the OIL REVENUES SO WHY HAS LIQUIDITY MARKET IS IMMINENT? surprised at the early number of respondents who key findings focus around the theme of maturing TIGHTENED? The market has matured and the steps taken said that it does have an impact on their idea of regional markets, the change from strongly There are a number of reasons why and many by the government are, by design, creating value and sustainable capital values. In terms development–led markets maturing into capital of those predate the allW Street meltdown, but a more measured approach to the real estate of overall sustainability, the government has market activities, and confirming our belief that were obviously exacerbated by that. A lot of cash sector and controlling the economy. ouY can put measures in place from an overall economic regional transaction activity will likely continue to was drawn into the banking system in the UAE see this with the enhanced regulatory standpoint and the fundamentals are extremely increase within 2009-10 for completed assets, from speculators looking to take advantage of the environment and the government focus on strong. If anything, the Middle East is very well- as we move away from more development-led potential revaluation of the local currency. A lot transparency. There is a lot of legislation coming positioned to take advantage of weakness in other transactions to more income-producing assets and of people were buying dirhams on the premise into play to protect investors and consumers. parts of the world to create a much more diverse more fundamentals. that the Gulf would revalue its currency against Certainly some of the consolidation that is about and stable economy. There are the sovereign eW are also seeing that the Middle East is the US dollar peg. As people were speculating to happen now, and in the future, will protect wealth funds, and with their investment, it continuing to be viewed as a source of economic on that, a lot of deposits came into the banking the integrity of the fundamentals of the economy. will create a much more diversified economic strength, not just within the region but on a system. henW it became apparent that the eW are heading towards a more mature state, base going forward. global basis. The focus of the integration of revaluation was less likely, this reduced overall but implied with that is more moderate and The Middle East has always had a prolific the Middle Eastern economies into the global deposit levels. The banking system here has been controlled growth, and this is a welcome sign number of international investors but I think now economy means there is also the sense that largely self-funded in the past, simply because of for the industry. it is a different game. The scale of the foreign the global economy is having an impact and is the amount of liquidity they have from operations. Abu Dhabi is on its own path. eW have investment that is taking place is indicative of the pushing and accelerating maturity as we become The government has announced a US$15 billion to appreciate that Abu Dhabi represents the region’s role in the next few years in the global truly global players. bank liquidity programme but this is a very vast majority of economics of the UAE and is economy and this could be very significant.

Dubai 2008 $ Cityscape official show daily $ 45 OVERVIEW saudi arabia

MARKET OVERVIEW: SAUDI ARABIA

King Abdullah Economic City

Saudi Arabia is the largest projects and it has recently economy in the Middle East been reported this is set to and the world’s largest exporter increase to US$400 billion. of crude oil. As prices of According to GIH, under the crude have increased, Saudi ‘10x10 Strategy’, the authorities Arabia has amassed huge are looking to attract US$300 current account surpluses billion of investments in and, like many countries in energy-intensive industries the region, the government over the next 13 years. A has opted to utilise the oil further US$100 billion of windfall to implement a investments is also being programme of diversification sought for knowledge-based away from the oil sector. industries and a similar amount The new 2000 Foreign for transportation ventures. Investment Law provided the Despite the strength of the legal structure necessary to attract Saudi economy, the Kingdom additional foreign investment has not been immune to events and the corporate tax on foreign- occurring globally. Rising owned firms has been reduced food and housing costs sent from 45 percent to 20 percent. Saudi Arabia’s inflation rate According to Kuwait-based Global to a 30-year high in July. The Investment House (GIH), this annual inflation rate surged to has encouraged foreign direct 11.1 percent in the Kingdom investment inflows to increase compared to 10.6 percent in from US$183 million in 2000 to June, 10.4 percent in May and US$18,293 million in 2006. 10.5 percent in April. In April 2000, the Saudi Despite rising inflation and Arabian General Investment a global economic downturn, Authority (SAGIA) was according to a bulletin by Saudi- established in order to promote based Jadwa Investments, inward investments. In a 2006 over the next few years, the 2010, overall new real estate report, SAGIA indicated it had Saudi economy has sufficient construction activity will reach INDUSTRY ANALYSIS: No. of Projects by Sector licensed more than 4,500 internal momentum to perform US$130 billion in value. It "NPOH
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new projects worth more than strongly despite the weak global said that the majority of the per annum on average US$100 billion since its outlook. An investment boom activity would be generated inception, and that foreign financed by high oil revenues by the housing segment, Sector 2003 2004 2005 2006 2007 2008 Total Average Annual Growth capital accounted for 46 percent earned in recent years, and followed by commercial office Financial Services 32698735 51.4% of those licensed investments. supported by ongoing economic space units and retail. 4PGUXBSF

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 competitiveness in all regions strong growth in the non- Kingdom of Saudi Arabia is Real Estate 2 484624n/a of the Kingdom, SAGIA has oil private sector. In short, expected to grow at an annual launched four Economic Cities ‘global economic conditions rate of 6.3 percent throughout in Rabigh (King Abdullah will affect the pace of this the Eighth Development Plan Economic City), Hail (Prince growth, but will not derail it.’ covering 2005-2009. Due to the AbdulAziz bin Mousaed In addition to economic rapid growth rate of new families INDUSTRY ANALYSIS: No. of Projects by Activity Economic City), Madinah growth and the government’s (population growth is forecast at Among the top business activities Retail recorded the highest growth at 64 percent per annum (Knowledge Economic City) and drive for investment and 2.5 percent), the plan expects on average Jazan (Jazan Economic City). development, Saudi Arabia’s demand for housing to increase Under the Foreign Investment real estate sector continues to by an additional one million Business Activities 2003 2004 2005 2006 2007 2008 Total Average Annual Growth Act, 100 percent ownership is grow from increasing demand units. This represents an annual Retail 5 6 25 22 7 4 69 64.1% granted to foreign investors at its from an extremely young average increase of 200,000 Manufacturing 4 7 9 15 10 14 59 34.2% Economic Cities. population looking to become units and implies that the Business Services 537811943 36.3% Saudi Arabia currently has future homeowners. The Saudi cumulative number of housing Construction 5 5 10 6 10 36 n/a an estimated US$250 billion Arabia Investment Fund (SAIF) units in the Kingdom will reach Logistics, Distribution of investment in construction estimates that through to almost five million by 2009. 
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OB GIH points out that Saudi Customer Contact Centre 1 1 2 n/a Arabia is witnessing an Recycling 1 1 n/a escalating demand from young middle income nationals. FDI Therefore, if it is to meet such Source: fDi Intelligence from the Financial Times demand, 1.5 million new homes per year through 2010. start anywhere from US$21,300 especially for Class A Figures from January 2003 to August 2008 will need to be built by 2015 According to Oxford Business and reach up to US$27,000, offices, is increasing as the and it will be up to the financial Group (OBG), residential yields whereas owning one would be number of newly established REPORT HIGHLIGHTS institutions (both governmental in Saudi Arabia are amongst no less than US$213,000. companies increases, and t
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developments in the pipeline seven years, with Riyadh alone mortgage law is released. The more foreign investments. Support, which accounted for 22 percent of projects is increasing. Over the past accounting for 35 percent of law, which is expected to be The lack of office space t
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three years, the Saudi Arabian the total, and Riyadh, Makkah passed this year, will establish in prime locations, such as all investment projects with Carrefour (France), TPG General Investment Authority and the Eastern Region, which a housing finance market Riyadh and Jeddah, has caused (Netherlands) and Hewlett-Packard (HP) (USA) among the (SAGIA) has said it has granted contains Jeddah, for 60 percent. which at present is virtually sharp upward movements in top 10 licences to 50 new real estate In Riyadh, to rent a one- non-existent. Once mortgage rent prices. According to data t
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developers. SAIF estimates bedroom apartment would likely finance is in place, demand from OBG, the cost of office Riyadh, Jeddah and Al-Khobar, providing 25 percent, 14 that the number of building to be in the range of US$3,000 is expected to increase due to space prices in prime locations percent and six percent of investment projects respectively permits, which it cites as a to US$3,500 annually, and the young population wishing such as King Fahd Road, the measure of real estate activity, US$35,000 to US$43,000 for to become home owners. main artery in Riyadh, have will continue to exceed 37,000 ownership. Renting a villa would Demand for office space, increased from about US$180

48 $ Cityscape official show daily $ Dubai 2008 saudi arabia OVERVIEW

to US215 per square metre to The planned economic quality hotels achieved an US$350 in just over one year. cities will see major retail average occupancy rate of 71 Sales costs for prime office investments. The conglomerate percent by the end of 2007, Market data space are from US$4,500 and food manufacturer Savola up from 62 percent in 2005. YIELDS BY ASSET CLASS to US$5,500. However the Group, which administers Occupancy rates in Jeddah standard of most stock is below 14 Saudi shopping malls, increased by three percent to % 2005 2006 2007 international expectations and has signed a memorandum reach 64 percent during the Office 9.5 8 N/A Grade A space is rarely offered of understanding for the first same period. Similar growth Residential 9.5 8 8 for sale. Commercial yields phase of retail development rates in occupancy were Retail 8 7 N/A in the capital are now around at Medina’s Knowledge recorded in both Makkah and Hospitality 11 8.5 N/A seven percent; this is however Economic City, covering more Madinah with further increases a decline from the 10 percent than 100,000 square metres in occupancy seen across the yields achieved in 2000. in a deal worth US$133 market in Q1 and Q2 2008. Jeddah is also experiencing million. The group plans to Average room rates have also SUPPLY increasing levels of build a hypermarket and climbed, reaching US$140 in development; Saudi Arabia’s more than 300 stores. There Riyadh and US$137 in Jeddah Sector 2004 2005 2006 2007 2008e 2009e 2010e Prince Khalid bin Al Waleed are also plans for a second respectively, suggesting RevPar Residential bin Talal Al Saud and the UAE- phase to expand the city’s of US$100 and US$87. (No. of Units) 4,390,000 4,520,295 4,654,458 4,792,602 4,934,846 5,081,313 5,232,126 based real estate developer retail space by an additional According to the Office KM Properties have formed a 300,000 square metres. Proleads database, 17 new (GLA m2) 829,284 870,748 914,286 960,000 1,008,000 1,058,400 1,111,320 joint venture, KMPK Properties, International tourism arrivals hotel projects are under Retail with the aim of creating around in Saudi Arabia increased development in Saudi Arabia, (GLA m2) 2,033,407 3,396,641 4,507,313 5,479,670 6,064,360 6,164,360 6,224,360 16,000 units within the next by around 150 percent over including the 10,000-room Hospitality five years. the past ten years, to reach Jabal al-Kaaba complex in (4&5 Star Rooms) 45,074 47,135 49,492 55,431 59,865 62,858 64,116 Saudi is the largest retail an estimated 10 million in Makkah and 1,900 additional market in the Middle East. 2007. Most visitors to Saudi rooms in Riyadh. Weighted Supply figures are total of Saudi Arabia As population size and Arabia are from other Muslim against the consistent growth Office Supply - Grade A, Retail Supply - Shopping Malls disposable income increase, countries and religious tourism in occupancy rates, this e = expected, f = forecast the Kingdom is likely to accounts for around 65 could potentially result in a become one of the fastest percent of all international marginal short term decline growing markets for consumer tourism into the country. in occupancy before the products in the Middle East. According to OBG Riyadh’s market again stabilises.

Dubai 2008 $ Cityscape official show daily $ 49 architectural awards REVIEW

Putrajaya Waterfront, winner, Residential Future DESIGNS ON A NEW FUTURE Cityscape rewards emerging market leaders in architecture

The real estate industry turned out in full force for the Cityscape Douglas Steidl, International Relations Fellow and past president, AIA Architectural Awards last night. George Katodrytis, aaUAE board of directors and associate Over the last few years this Cityscape event has developed professor, American University of Sharjah into the world’s premier Architectural Awards ceremony for the In addition to the tremendous support provided by our emerging markets. international judging panel, the awards were honoured to have The awards recognise excellence in architecture and design, the full support of the Royal Institute of British Architects (RIBA), from the emerging regions of the Gulf States, the Middle East, Asia, the American Institute of Architects (AIA) and the Architectural Africa, South America, South and East Asia and Latin America. Association of the UAE (aaUAE). They also seek to reward real estate industry professionals, projects, This support provides further recognition that the Cityscape developments and architects that have shown outstanding designs, Architectural Awards plays a critical and prominent role in performance, vision and achievement in key emerging markets and promoting, developing and recognising industry innovators and project areas. achievers from the emerging markets. A special feature of this year’s Cityscape Architectural Awards The awards and the seals of distinction were presented at an was the introduction of a Young Architect Awards. elaborate and lavish gala dinner, held at the Grand Hyatt Dubai. This award category was initiated by Meraas Development, the Over 800 industry professionals from the emerging markets exclusive associate sponsor, to promote the development of young attended to celebrate and acknowledge industry figureheads who talent in the architecture and design fields in the Emirates. have surpassed the already high standards of the industry. The judges for the Young Architect Award had a difficult time in deciding a winner. Eventually, after considerable debate and discussion May Barber, a recent Bachelor of Science in architecture from the American University of Sharjah emerged as the worthy winner. Within the main award categories, over 350 different entries were received, from a wide range of emerging market countries. To decide which projects were worthy of winning the awards and seals of distinction, a judging panel, consisting of high profile international judges, spent a whole-day viewing, deliberating and discussing each and every entry. The international judging panel consisted of: Dr. Fatih Rifki, Dean of the School of Architecture and Design, American University of Sharjah, UAE Dr. Suha Ozkan, Chairman, World Architecture Community, Switzerland John Assael, Vice-president, RIBA Professional Services Labour Housing, winner, Young Architect Murat and Melkan Gursel Tabanlioglu

Dubai 2008 $ Cityscape official show daily $ 53 architectural awards REVIEW

Signature Tower, winner, Commercial Future Xanadu Island Resort, winner, Leisure Future

May Barber

WINNERS OF THE COVETED AWARDS AND SEALS OF DISTINCTION WERE:

Commercial / Mixed-Use Category – Built Dogan Media Center, Ankara, Turkey Murat and Melkan Gursel Tabanlioglu

Commercial / Mixed-Use Category – Future Signature Towers, Dubai, UAE Zaha Hadid Architects

Community Category – Built Inkwenkwezi Secondary School, Cape Town, South Africa Sonja Spamer Architects

Community Category – Future National Kaohsiung Performance Arts Center, Kaohsiung, Taiwan Mecanoo Architecten

Leisure Category – Built City Art Square, Shatin, Hong Kong, China Barrie Ho Architecture Interiors and Sun Hung Kai Architects and Engineers

Leisure Category – Future Xanadu Island Resort, Bodrum, Turkey DSA Architects International The Toy Museum, winner, Tourism Travel & Transport Built

Residential Category – Built Levent Loft, Istanbul, Turkey Murat and Melkan Gursel Tabanlioglu

Residential Category – Future Putrajaya Waterfront, Kuala Lumpur, Malaysia Manfred Nicoletti

Tourism, Travel & Transport Category – Built The Toy Museum, Singapore Chan Soo Khian

National Kaohsiung Performance Arts Centre, Tourism, Travel & Transport Category – Future winner, Community Future Bab’ Bhar Resort, Fujairah, UAE Dubai Municipality Draw Link Group Rohan Marwaha, managing director of Cityscape, commented: “Once again we have had a tremendous Young Architect Award response to the awards and received an impressive May Barber, American University of Sharjah, array of nominations from all emerging regions. School of Architecture & Design “Cityscape is proud to be organising and hosting such a valuable vehicle to recognise and reward Special Award – Environmental Award industry achievers from the emerging markets. These Masdar Headquarters, Abu Dhabi, UAE awards would not be possible without the significant Adrian Smith and Gordon Gill Architecture support and encouragement of the award’s sponsors, many of which are returning year after year.” Special Award – Islamic Architecture Award On behalf of Cityscape, Marwaha thanked the Renovation of Shindagha’s historic mosques key sponsors. American Breeze, Etisalat, Bose, Dubai Municipality Smart Box, LAB 23, Gaggenau, RAK Ceramics, Revitalisation of Dubai Old Souq and MAF Dalkia. Dubai Municipality He added: “We would also like to say a big thank Revitalisation of historic Bastakia, you to Meraas Development, our exclusive associate Dubai Municipality sponsor, for introducing the Young Architect Award, an excellent initiative which will go a long way in Special Award – Master Planning Award ensuring that young and aspiring UAE architects Zorlu Center, Istanbul, Turkey play a leading role within the developing UAE real Tabanlioglu Architects Co. and Emre Arolat Architects estate industry.” Bab’ Bhar Resort, winner, Tourism Travel & Transport Future

Dubai 2008 $ Cityscape official show daily $ 55 day one REVIEW

RAZA SIDDIQUI Executive Director, Dubai Lifestyle City What do you think will be the hot topics at this year’s event? The future of real estate in the Gulf region and the ripple effect being felt in the real estate industry, as a result of the international financial crisis and falling commodity prices

MIMIT BHUTA Director, Ajit Bhuta and Associates How important is it for you to be present at this and other Cityscape events? ABA has grown into an international architecture firm because of Cityscape so all the events are important to us, and we plan to participate in other Cityscape events in 2009

MEHDI AMJAD President and CEO, Omniyat Properties What do you think will be this year’s hot topics? Risk assessment and the management of real estate investment portfolios and green communities, as well as real estate investing, sustainable developments and the challenges and opportunities in the global real estate investment market FROM THE SHOW FLOOR The Cityscape show daily took to the halls to get feedback from exhibitors and visitors on the first day of the exhibition. All agreed the event had surpassed all expectations, with exhibitors looking forward to a week full of great business opportunities.

Dubai 2008 $ Cityscape official show daily $ 57 FOCUS oxford business group

Ummayad Mosque, Damascus PLANNING FOR SUCCESS In a bid to open its borders to foreign investment, Syria has developed a five-year business plan, which will target construction and real estate as two essential areas that are ripe for development, reports the Oxford Business Group

Economic growth in Syria has country’s construction sector. economy limits private sector and Turkey, despite the been consistent for the past five While it still holds the lion’s participation, with a resulting current economic downturn in years at an average rate of five share of development, it has lack of supply across the Lebanon following continuous percent per year. Nominal GDP decreased its control in the country. For this reason, many political tension in Beirut. grew by 18 percent in 2005 to past few years and has worked companies in Syria choose There are no internationally- reach US$28 million, which to encourage the development to rent residential space operated retail centres in Syria was the highest growth rate of private sector investment. and use it as an office. but the pipeline indicates recorded by the country over the In 2005, the total amount In Aleppo there is currently a number of Gulf and Arab past few years, according to the of construction area in Syria zero availability of Grade A office joint ventures with Syrian Oxford Business Group (OBG) stood at 16.4 million square space, although Grade B and C government bodies. Many of report published in The Market metres, which represented a stock is available in Jameliah these investment projects are report for the Middle East. compound annual growth rate and Aziziah, both for rental and incorporating a retail component. The IMF also predicts a (CAGR) of 55 percent since real GDP growth rate of 4.6 2002. Contractors regard 2006 percent for 2008, below the and 2007 as the beginning government’s own projections of of a phase of real growth. more than five percent. Syria is Construction and real estate not a major oil producer in the have been targeted as two region or on the world stage, but essential areas that are ripe for the sector remains crucial to the development. Most such activity economy, contributing 50 to 60 has so far been concentrated percent of total export earnings in Damascus, with increasing and up to 25 percent of GDP. activity being seen in Aleppo The country faces a number and other secondary cities. of fiscal challenges, in addition Planning has also taken a step to the problem of declining oil forward, with regional authorities revenues. A number of economic working on the planning reforms have been introduced documentation and strategy to counter these challenges. that are needed as development The recently approved activity across the country. five-year plan has reinforced Residential prices in the reform, stressing the prime suburbs of Damascus, importance of further trade such as Malki, Mezzeh and liberalisation, engagement with Kaffersusse, are between the outside world, the freer US$3,000 and US$4,000 per flow of goods and the need to square metre, while prices in attract foreign investment. low to middle-income areas Many reforms are aimed tend to cost US$1,000 per at improving financial square metre and up. Rents per intermediation, enhancing the square metre begin at US$100 business environment in the per square metre per year and non-oil sector, unifying the climb to close to US$400 per exchange rate, and strengthening square metre in Abu Roumani, the monetary policy framework according to the OBG report. as a means to reinforce market Housing prices in the capital, mechanisms in the pricing of Damascus, rival those in financial assets and to ensure European capitals, while Aleppo,

Citadel, Aleppo the most efficient allocation of Hamdanieh and Shahba have private sector savings. been witnessing a construction Through these reforms, the surge with luxury villas and The recently approved five-year plan has reinforced reform, stressing the ( government aims to accelerate apartments in high demand. growth to an annual rate of Residential prices in importance of further trade liberalisation, engagement with the outside world, seven percent by 2010. These secondary cities are reported to the freer flow of goods and the need to attract foreign investment goals are also encouraging more have risen by over 20 percent in international companies to the last two years, while rentals establish a presence in Syria. have increased by 40 percent. The government has In the office space sector, purchase. As estimated by OBG, In Damascus, between currently under development foreign brands operate in the traditionally dominated the the structure of the Syrian the current vacancy rates in 400,000 and 440,000 square in the city and if all these country at present – Sheraton, existing building in both Aziziah metres of leasable area will projects are completed, supply Le Méridien, Four Seasons, and Jameliah is 10 percent. be delivered to the market by of retail space will witness a Rotana and Sofitel. In addition, Retail in both Aleppo and 2012, adding to the 41,500 tenfold increase to 200,000 there is the local Cham Palace Damascus was, and often still is, square metres that currently square metres by 2012. Per chain of five-star hotels, centred on its historical souks, exists and contributing to an capita space in Aleppo is which includes two hotels street trading and local markets. increase in the city’s space per expected to rise from 0.005 in Damascus, and a smaller Both cities do have a few capita from 0.0009 square square metres to 0.033 square Semiramis chain of four- and boutiques, fashion outlets and metres to 0.09 square metres. metres in 2010 and 0.039 five-star properties. More higher-class retail in high-end Shopping City and Aziziyah square metres in 2012. than half of Syria’s hospitality residential areas like Mogambo Centre are the primary shopping With less than 40,000 beds supply is located in Damascus. in Aleppo and Malki in centres in Aleppo, while New nationwide, many of poor In view of further growth, Damascus, but these are more Town and Safeway are its first quality, the hotel sector is investments in hotels are the exception than the rule. hypermarkets. Apart from these, significantly underdeveloped flourishing with over four Syria is still quite the city lacks formal retail space, in Syria, according to OBG. new high-end hotels that will undeveloped in Western retail with OBG estimating supply Currently the country has 17 be integrated into mixed- terms when compared with its to be less than 20,000 square five-star hotels, 37 four-star and use developments being neighbours in Jordan, Lebanon metres. A number of malls are 54 three-star hotels. Only a few planned in Damascus. Damascus Bazaar

58 $ Cityscape official show daily $ Dubai 2008