Week 22 SUNDAY, 02 JUNE 2019

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REAL ESTATE NEWS

UAE / GCC / MENA UAE ECONOMY EXPECTED TO GROW 2 PER CENT THIS YEAR, CENTRAL BANK SAYS KUWAIT'S SOVEREIGN WEALTH FUND ASSETS GROW DESPITE OIL PRICE VOLATILITY UAE GLOBAL COMPETITIVENESS EDGES UP IN 2019, SAYS IMD STUDY SPINNEYS PLANS EIGHT NEW UAE SUPERMARKETS BY END-2019 COMMITTEE OF UAE PRESIDENT INITIATIVES APPROVES FUNDS FOR $245M PROJECTS UAE TO SLASH OR WAIVE FEES FOR 1,500 BUSINESS SERVICES JEDDAH FORECAST TO SEE 4,000 NEW HOTEL ROOMS BY 2022 RICH KEEPING LARGE CHUNK OF THEIR WEALTH IN UAE GEMS BUYS SAUDI SCHOOL GROUP MA'ARIF SAUDI ARABIA’S REAL ESTATE NEEDS A NEW SET OF IDEAS DAMAC TO OPEN DISCOVERY HUB OF OMAN'S MINA AL SULTAN QABOOS IN Q3 SAUDI ARABIA CONSTRUCTION CONTRACT AWARDS GROW 113% TO $13BN IN Q1 DUBAI'S ENOC REVEALS EXPANSION PLAN AHEAD OF EXPO 2020 SAUDI ARABIAN RETAIL MARKET IS 'REBOUNDING', SAYS PATRICK CHALHOUB OMAN'S SALALAH GRAND MALL SET TO OPEN BY END-2019 HOMEFRONT: 'MY OFF-PLAN PROPERTY IS DELAYED. HOW DO I SEEK COMPENSATION?' SAUDI ARABIA'S DIRIYAH TO BE THE 'BEVERLY HILLS' OF RIYADH, SAYS CEO SAUDI ARABIA'S SRC REDUCES RATES FOR LONG-TERM, FIXED RATE MORTGAGES

DUBAI

DUBAI LAND DEPARTMENT AND MASHREQ BANK SIGN E-MORTGAGE DEAL

GOLD CARD VISA RESIDENCY SYSTEM A 'GAME CHANGER' FOR UAE PROPERTY MARKET

ARABTEC SUBSIDIARY BAGS DH192M DEAL TO BUILD TWIN RESIDENTIAL TOWERS

DUBAI'S EMAAR DENIES PLAN TO SELL DISTRICT COOLING BUSINESS

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REAL ESTATE NEWS UAE'S AZIZI OFFERS $2.7M BONUS TO DRIVE DUBAI PROJECT COMPLETIONS

NEARLY 430 NEW RESTAURANTS, CAFES OPEN IN DUBAI IN 2019

DUBAI COMPLETES PROJECT TO REVIVE DEIRA MARKETS IN HERITAGE PUSH

OVER 4,000 COMPANIES OPERATE IN DUBAI'S GOLD SECTOR, SAYS DED

$1.4BN ROYAL ATLANTIS ON TRACK TO OPEN NEXT YEAR

DUBAI'S DAMAC HANDS OVER FIRST SHARIA COMPLIANT PROPERTY

INVESTORS IN DUBAI'S HEART OF EUROPE TO QUALIFY FOR MOLDOVAN PASSPORTS

UAE'S AZIZI OFFERS $2.7M BONUS TO DRIVE DUBAI PROJECT COMPLETIONS

DEVELOPER SAYS $410M DUBAI PROJECT ON TRACK FOR END-2019 COMPLETION

DUBAI’S HOMEOWNERS WANT THEIR SAY ON SHORT-TERM RENTS

CASH-BASED TRANSACTIONS CONTINUE TO DOMINATE DUBAI REALTY

NEW DOWNTOWN EMERGING IN DUBAI: AREAS IN DEMAND AROUND EXPO 2020

DUBAI HAS OVER 15,000 CHINESE INVESTORS, SAYS DED REPORT

DIC TARGETS EMERGING MARKETS

ENBD REIT POSTS $270M NET ASSET VALUE AND PROPOSES DIVIDEND

ABU DHABI ABU DHABI HOTEL REVENUES RISE TO $460M IN Q1 ABU DHABI RESIDENT BECOMES FIRST FOREIGN PROPERTY BUYER TO RECEIVE FREEHOLD TITLE DEED ABU DHABI NATIONAL HOTELS LOOKS TO GLOBAL ACQUISITIONS AND JOINT VENTURES AFTER EMAAR DEAL ABU DHABI OFFICE LANDLORDS BECOME 'INCREASINGLY FLEXIBLE' ON RENTS MIRAL'S $100M CLYMB SPORTS FACILITY TO OPEN IN EARLY 2020 CHINESE FIRM TO INVEST DH36.7B IN KIZAD

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REAL ESTATE NEWS INTERNATIONAL DUBAI'S EMAAR INKS DEAL TO DEVELOP MEGA PROJECT IN BEIJING DUBAI'S COVE BEACH EYES US, EUROPEAN EXPANSION OVER NEXT 2-3 YEARS DUBAI-BACKED SMARTCITY KOCHI EYES $575M IN NEW FUNDS

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U AE ECONOMY EXPECTED TO GROW 2 PER CENT THIS YEAR, CENTRAL BANK SAYS Wednesday, May 29, 2019

The UAE Central Bank revised its forecast on economic expansion this year to 2 per cent from a projected 3.5 per cent, as Opec’s third-largest producer reduced output and the global economy is slated to slow down due to escalating trade tensions between the world's two largest economies.

The UAE economy accelerated 1.7 per cent last year, according to the latest data from the central bank.

“Signs of weaker economic growth in advanced economies as well as in some emerging markets have emerged towards the end of 2018,” the central bank said in its 2018 annual report. “From the supply side of the global oil markets, Opec and non-Opec members proceeded with a decision for further reduction of their oil production.”

Crude production in the UAE, the second biggest Arab economy, averaged 3 million barrels per day in 2018, increasing by 1 per cent compared to a decline of 3.9 per cent in 2017, the banking regulator noted.

The central bank estimates oil production to continue declining this year to an average of 3.1 million bpd, down from an average of 3.285 million bpd in the fourth quarter of 2018. It will consequently push the oil-GDP growth to 2.7 per cent, lower than 3.7 estimates released in March.

In the wake of a slump in oil prices that began in the mid-2014, Opec+, as the alliance led by sovereign producers Saudi Arabia and Russia is called, undertook measures to reduce oil supplies at the start of 2017. The conditions of the pact were reset at the start of January this year with members agreeing to collectively cut oil production by 1.2 million bpd for six months. Opec+ will meet at the end of June in Vienna to decide whether to extend the pact. The indications are the group will take the production cuts deeper into the second half of this year.

Compliance by Opec and its allies with voluntary cuts in crude production, rose to 168 per cent in April, the highest level since output curbs were agreed in 2017, Suhail Al Mazrouei, the UAE Minister of Energy and Industry said earlier this month. The conformity of the group, coupled with the gloomy global economic outlook, is dampening economic growth in some of the oil producing nations.

In April the International Monetary Fund revised its global growth forecasts for 2019. The Washington-based lender estimates the global economy to grow 3.3 per cent, compared with a previous forecast of 3.5 per cent. The revision was the third by the IMF within six months. The 2019 outlook is the weakest since the 2007-08 financial crisis, and reflects a slowdown in most advanced and some emerging economies, as reciprocal export tariffs introduced by the US and China last year continue to weigh on trade and dampen demand.

The central bank projects the UAE’s non-oil GDP, which rose 1.3 per cent in 2018, to climb to 1.8 per cent in 2019 and continue on “its upward trajectory in the subsequent years”. The central bank had previously forecast a 3.4 per cent rise in non-oil GDP in its quarterly report in March.

“The announced fiscal stimulus packages and the new investment law will encourage economic growth, increase consumption, reinvigorate the property market, and improve the labour markets as the investors and consumer sentiments continue to solidify,” the banking regulator said in the report.

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To boost economic growth in the non-oil sector the government rolled out stimulus packages in line with the UAE Vision 2021. The federal government relaxed foreign ownership requirements and also introduced ten-year visas to stimulate the private sector and promote tourism. The new regulation also included job seekers who can now obtain a six month visa, which will support companies and organisations in attracting and retaining talent. In addition, the government announced a landmark law allowing foreign investors to own 100 per cent of companies in selected sectors in the UAE.

Last year Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, and Deputy Supreme Commander of the UAE Armed Forces, approved a Dh50 billion economic stimulus package, with a fund of Dh20bn allocated to the 2019 development package. The measures will help reduce the UAE’s dependence on oil revenues and help create new industries while attracting foreign investment.

Dubai's government also rolled out several initiatives of its own to stimulate growth while reducing costs in key industries like aviation, real estate and education. The emirate also reduced the cost of doing business and lowered taxes by reducing service fees for commercial entities by 50 per cent, cancelling 19 fees related to the aviation industry and aircraft landing permits, and waiving 4 per cent late property registration fees imposed by the Dubai Land Department. Source: The National Back to Index

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KUWAIT'S SOVEREIGN WEALTH FUND ASSETS GROW DESPITE OIL PRICE VOLATILITY Wednesday, May 29, 2019

Assets of the Kuwait Investment Authority (KIA), the oldest sovereign wealth fund (SWF) in the world, have continued to grow despite the oil price shocks, according to Moody’s Investors Service.

Future Generations Fund (FGF), one of two funds managed by the KIA, which receives mandatory transfers of funds equivalent to 10 per cent of the government's revenue has continued to grow with solid profitability that has seen it rise to about 309 per cent of Kuwait's gross domestic product, Moody’s said in a report. The growth has come despite a reduction in the ratio of mandatory funds transfer from previous 25 per cent, Moody’s which rates Kuwait at Aa2 with a stable outlook, said.

“We expect it [FGF] will continue to grow as long as the fund remains profitable and the mandatory transfer remains in place,” it noted in the report.

By contrast, Kuwait's government has drawn down on its second investment vehicle, the General Reserve Fund (GRF) “quite rapidly since the 2015-16 fiscal year to finance deficits triggered by the oil price shock,” Moody’s said.

Kuwait's fiscal deficit peaked at 17.5 per cent of its GDP in 2016-17, a huge decline from a 20 per cent surplus recorded in 2013-14. The government had tried to relieve pressure on the GRF in beginning of the oil slum that saw crude falling from a peak of $115 per barrel in the mid-2014 to below $30 per barrel in the first quarter of 2016, by issuing domestic and international.

However, the country’s parliament blocked the government's attempts to increase the debt ceiling to 25 billion dinars (Dh301.6bn) and lengthen tenors up to 30 years in 2017 from previous 10bn dinars and 10 years, respectively. The debt law subsequently expired and the government was forced to finance deficits and maturing domestic borrowings from the GRF. Relying on the GRF has led to an accelerated drawdown of the fund's assets to an estimated 23bn dinars as of March 2019, from 26.4bn dinars from a year earlier, Moody’s explained.

The rating agency said a further depletion of the GRF would depend on “if and when” parliament passed another debt law, but the government will need to finance deficits around 9 per cent of GDP over the next few years. However, as only around 65 per cent of GRF assets are liquid, the fund would only be able to finance around three years’ worth of deficits and run out by the end of fiscal year 2021-22.

“The eventual depletion of the GRF could have several implications for sovereign creditworthiness,” Moody’s said. “Under our baseline scenario, which assumes parliament approves the debt law by 2020 and FGF assets remain ring-fenced, a depleted GRF implies that the government will rely much more on debt issuance for funding.”

Combined with large fiscal deficits, such a scenario could lead to a rapid increase in general government debt and an increase in debt-servicing costs from the budget.

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“Although unlikely, a situation where the GRF is depleted before no alternative funding sources have been arranged would be very credit negative,” Moody’s said. “Such a scenario would require the government to make significant cuts to spending, given our expectations for persistent fiscal deficits.” Source: The National Back to Index

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UAE GLOBAL COMPETITIVENESS EDGES UP IN 2019, SAYS IMD STUDY Wednesday, May 29, 2019

The UAE made significant advances in competitiveness globally and regionally last year, with the country improving its business friendly environment and serving as a springboard for more start-ups, according to the latest survey from IMD Business School.

The UAE edged up two notches to fifth place in the IMD World Competitiveness Rankings out of 63 countries. In its peer group of countries across Europe, the Middle East and Africa the country rose to second place, from fourth.

“The two main components of the UAE’s success this year are government efficiency – including good management of public finances and tax policies – and business efficiency, such as labour market productivity and management processes, helping companies to adapt to changing market conditions,” Christos Cabolis, chief economist of the IMD World Competitiveness Center, told The National.

The UAE topped the global ranking for improvements in business efficiency, rising to first position from 18th in four years since 2015, according to the survey. The country ranked second for government efficiency, from third in 2015 and seventh in 2016.

The business school interviewed mid- and upper-tier managers globally and received around as many as 6,500 responses. The number of UAE responses was not provided.

Growing the number of patents in force and patent applications per capita – which points to an uptick in innovation and entrepreneurship - are among the other 15 biggest improvements the UAE has made since 2018. The country has also advanced when it comes to reducing the time it takes to launch a start-up.

The economic resilience of the UAE has strengthened over the past year, as the level of government subsidies and cost of capital fell while the private sector matures, the survey found.

UAE competitiveness

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In the past 12 months, the UAE took measures to strengthen its economy and further boost the private sector to mitigate against lower oil revenues. Last year, Abu Dhabi’s government announced a Dh50 billion economic stimulus and the country has implemented reforms, including lowering business registration fees.

The UAE’s GDP growth is expected to strengthen this year, boosted by higher levels of government spending and increased oil production, with headline economic growth forecast to rise to 2.2 per cent from an estimated 1.7 per cent in 2018, according to the latest outlook from Oxford Economics and the ICAEW in April. The International Monetary Fund’s earlier projections depicteds even stronger growth, of 3.7 per cent in 2019.

On infrastructure, which includes technology, science, health and education, the UAE moved up to 32nd place – from 38th in 2015. Given the importance the UAE government has placed on the knowledge economy to drive future growth, “more concentration is needed to boost scientific infrastructure in particular, including investment in research and development, R&D output and human resources”, Mr Cabolis said.

Globally, Singapore was ranked the world’s most competitive economy for the first time since 2010 – boosted by advanced technology, skilled labour and efficiency – while the US slipped from top spot to third position and economic uncertainty took its toll on Europe.

Hong Kong occupied second position in the ranking, helped by its favourable tax environment and access to finance.

The Arabian Gulf’s biggest economy, Saudi Arabia, climbed 13 places to 26th, on stronger trade revenues. Source: The National Back to Index

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SPINNEYS PLANS EIGHT NEW UAE SUPERMARKETS BY END-2019 Saturday, Jun 01, 2019

Supermarket retailer Spinneys reveals UAE expansion plan as it opens its second store in Ajman

Retailer Spinneys has announced plans to open a further eight supermarkets in the UAE this year, as it prepares to launch operations at its second outlet in Ajman.

Measuring more than 14,000 square foot, the new Ajman store will create more than 35 new jobs for the local community, and will be open seven days a week from 8am until midnight.

In a statement, Spinneys said it also plans to open eight supermarkets in Jumeirah Golf Estate, Dubai, Damac Hills, Dubai, Dubai Creek Residences, Meydan, Dubai, and Al Maryah Central, Abu Dhabi).

The new Ajman supermarket will be Spinneys 58th store in the UAE and will feature a range of on-site facilities including an in-store bakery with an Arabic bread baking facility, fresh cold and hot deli, and a butchery.

Morne Fourie, general manager, marketing, Spinneys, said: “With our continued focus on expansion throughout 2019, opening our second store in Ajman reinforces Spinneys’ footprint across the emirate. Al Jurf community offers a diverse selection of retail and dining attractions and we’re delighted to bring our fresh food offering to local shoppers in Ajman.” Source: Arabian Business Back to Index

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COMMITTEE OF UAE PRESIDENT INITIATIVES APPROVES FUNDS FOR $245M PROJECTS Tuesday, May 28, 2019

Meeting also discussed the progress of the Mohamed bin Zayed Residential City Project and the Sheikh Khalifa Central Hospital in Fujairah

The Follow-Up Committee of the Initiatives of the UAE President has approved the funding of a number of new projects for the country, valued at AED900 million ($245 million).

The effort comes in implementation of the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the support of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and the monitoring of H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs.

The launch took place during the committee’s meeting held at the Abu Dhabi Crown Prince’s Court, led by Jabr Mohammed Ghanim Al Suwaidi, Director-General of the Court.

The meeting’s participants also discussed the progress of the Mohamed bin Zayed Residential City Project and the Sheikh Khalifa Central Hospital in Fujairah, as well as future road projects, including the construction of a road between Wadi Al Qor, the Al Habbab Roundabout and Nizwa Road, along with the Dubai-Hatta Road and the Sharjah-Kalba Road.

Mohammed Abdullah Al Rumaithi, Under-Secretary of the Presidency Affairs Ministry for Financial and Procurement Affairs, Rashid Al Ameri, Under-Secretary of the Presidency Affairs Ministry for Government Coordination Sector, Mohammed Saleh, Director-General of the Federal Electricity and Water Authority, Hassan Juma Al Mansouri, Under-Secretary of Infrastructure Development Ministry, and Ali Jassem Al Mazrouei, Director of the Initiatives Affairs Office, also attended the meeting. Source: Arabian Business Back to Index

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UAE TO SLASH OR WAIVE FEES FOR 1,500 BUSINESS SERVICES Tuesday, May 28, 2019

The UAE Cabinet on Tuesday said it would further waive or reduce fees levied on businesses for government services, as part of a strategy to attract more foreign investment.

“[The cabinet] adopts a decision to amend and waive fees for a number of federal services within the framework of the government’s effort to enhance the national economy, reduce costs to business owners and increase the UAE’s competitiveness,” the cabinet said in a tweet on Tuesday afternoon.

The move involves the reduction or cancellation of fees for more than 1,500 government services provided by the UAE Ministry of Economy, Ministry of Interior and Ministry of Human Resources and Emiratisation, according to the tweet. But the cabinet gave no further details on which fees are to be changed.

Over the past 12 months, the UAE has taken measures to strengthen its economy and further boost the private sector to mitigate against lower oil revenues.

Last year, Abu Dhabi’s government announced a Dh50 billion economic stimulus - known as Ghadan 21 - and the country has implemented reforms to help diversify the economy and encourage the creation of new businesses, including lowering business registration fees.

The decision aims to “promote foreign investments and make the UAE a distinctive destination for investments, by reducing administrative costs and fees and stabilising the business environment”, a statement in Arabic on the UAE’s state news agency Wam said.

So-called "onshore" companies in the UAE – those registered outside free trade zones – which had been fined by Ministry of Human Resources and Emiratisation for failing to comply with labour regulations, were told they could apply for exemption from the fines, according to a paper from immigration consultancy Fragomen this month. Source: The National Back to Index

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JEDDAH FORECAST TO SEE 4,000 NEW HOTEL ROOMS BY 2022 Saturday, Jun 01, 2019

KPMG Al Fozan & Partners report says new hotel rooms will increase the current inventory by 35%

The report said Jeddah's hospitality market showed an upward trend in key performance indicators in 2018.

The hospitality market in the Saudi city of Jeddah will receive more than 4,000 new hotel rooms in the coming three years, according to a new report.

The new hotel rooms will increase the current inventory by 35 percent, said KPMG Al Fozan & Partners, an audit, tax and advisory services provider in Saudi Arabia.

It said Jeddah's hospitality market showed an upward trend in key performance indicators in 2018, driven by a surge in tourist numbers and limited supply during the year following a dwindling performance during 2016–17.

KPMG added that it expects the market to remain subdued in the short term owing to the bulk of supply due to deliver in 2019.

"However, the market is expected to witness a steady performance in the long term, backed by the government’s initiatives to support the development of culture, leisure and entertainment projects in Jeddah. Furthermore, the growing number of pilgrims will have a positive impact on the hospitality market of Jeddah," the report noted.

Firas Hassan, head of real estate at KPMG Al Fozan and Partners, said: "Despite the forthcoming supply putting a downward pressure on the performance in the short term, we believe that the demand for hospitality units in Jeddah is likely to remain robust due to which the market is expected to recover in the medium to long term, backed by the government’s initiatives to support the development of culture, leisure and entertainment projects."

The KPMG report also forecasts a diminishing trend in occupancy rates and average daily rates (ADRs) in the upscale market segment, primarily due to increased competition.

"Lack of three-star hotels in Jeddah offers a solid investment option for potential investors. As the number of business travelers grows in the kingdom, budget constraints from companies are fueling demand for three-star hotels," said Hassan.

The report also said that Riyadh will see supply of 2,500 new hotel rooms in 2019, bringing the total number to 16,000 rooms. The future supply in the Saudi capital is expected to rise by 52 percent in the next five years.

Despite occupancy rates improving by 6 percent to 53 percent in 2018, ADR and revenue per available room (RevPAR) fell by 10 percent and 8 percent, respectively, it added.

"We expect limited improvement in performance in 2019 compared to last year, as supply continues to increase, occupancy levels and ADR decline moderate and heavy reliance on business travellers," said Hassan. Source: Arabian Business Back to Index

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RICH KEEPING LARGE CHUNK OF THEIR WEALTH IN UAE Saturday, Jun 01, 2019

Ultra-high net worth and high net worth individuals continue to retain large portions of their wealth in the UAE, a senior private banker at HSBC said.

"We have seen that our clients prefer to keep significant portion of their wealth in the UAE while they continue to diversify selectively into other opportunities globally." said Farzad Billimoria, head of the HSBC Private Banking (Suisse), Dubai International Financial Centre Branch.

He pointed out that there are quite a few trends emerging in terms of private banking in the UAE.

Some of these emerging trends relate to clients wanting to be closer to their bankers, prefer to deal with banks that have a full-service offering and there is a huge growing demand for credit and related services in the country.

"Credit in terms of liquidity against existing portfolio and real estate is the changing trend we have seen. Also, we have seen more demand for lifestyle-related private banking services and private wealth solutions including trust and insurance services," Billimoria said in a recent interview with Khaleej Times.

A Boston Consulting Group report last year had predicted that personal wealth in the UAE is projected to continue to grow at 8 per cent compound annual growth rate to Dh2.16 trillion ($590 billion) in investable assets by 2022.

A report by New World Wealth had predicted that growth in UAE wealth will be strong over the next 10 years, growing at 51 per cent to reach Dh5.14 trillion by 2027. The number of high net worth individuals in UAE is expected to reach just over 140,000 by 2027, whilst the number of billionaires is expected to reach around 30 by 2027.

Billimoria disclosed that the bank, which has recently shifted its private banking office to a new DIFC office space as it expands its presence in the UAE, has been consistently growing and has doubled its revenues and assets under management, as well as its employee base since 2015.

"From here onward, our ambition is to grow 20 per cent year-on-year until 2022 in terms of workforce in the UAE. HSBC will be hiring strategically and adding to its presence in the new DIFC office - relationship managers, investment advisors and wealth planners. By 2022, the target is to double assets under management, revenues and the number of clients in the UAE," he added.

Billimoria attributes the growth of its private banking business in the UAE to HSBC's full universal banking model.

"We serve client needs - no matter how complex - in collaboration with all other lines of businesses... when you offer a client a full banking solution along with other lines of businesses, you become a bank of choice which can offer a whole range of services to the client," he added,

He noted that the growth of wealth in the UAE has been positive due to several factors.

"One is the geographical advantage of where the UAE is placed. Secondly, the advanced financial infrastructure in the country and also the strength of the regulatory framework. Hence, the UAE remains the destination of choice for ultra-high net worth and high net worth individuals.

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Considering the above, Billimoria expects private wealth will continue to grow in the UAE.

Source: Khaleej Times Back to Index

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GEMS BUYS SAUDI SCHOOL GROUP MA'ARIF Friday, May 31, 2019

Gems Education has expanded into Saudi Arabia by buying Ma'arif Education Group, the largest private school owner and operator in the kingdom, through a joint venture with Hassana Investment.

Gems, the Middle East-focused education group whose investors include Blackstone, said in October it may invest $800 million with Hassana over the next decade to develop a network of schools in Saudi Arabia.

Gems , which is majority owned by Dubai-based Varkey Group, said in a statement that it had signed an agreement to acquire Ma'arif, which has more than 22,000 students across its national and international schools in Saudi, with Hassana.

It did not disclose the value of the deal.

The joint venture plans to build a portfolio of more than 50 schools for some 100,000 students as the kingdom pushes ahead with reforms and privatisation, making it one of the most attractive growth markets for Gems .

"The Ma'arif acquisition of 14 schools is an ideal platform from which to grow," Dino Varkey, Gems' chief executive, said. – Reuters Source: Khaleej Times Back to Index

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SAUDI ARABIA’S REAL ESTATE NEEDS A NEW SET OF IDEAS Friday, May 31, 2019

Like the rest of Saudi life, the real estate market is going through a profound and transformational change. The old certainties are being replaced, and new economic forces — global, regional and national — are changing forever the property environment.

The transformation underway involves a makeover of the Saudi citizen, making them entrepreneurial self-starters in an economy typically dependent on a traditional model. The appeal is not limited to economic policies, but also a strong social movement wherein policymakers are promising to improve the quality of life.

The new Saudi will expect to live in a very different environment to the one that has conditioned the Kingdom for the past 80 years. The shift to modernity in Saudi terms involves a change of mindset certainly, but also necessitates a change in the physical environment wherein stand-alone buildings and big villa residential stock are still a clear majority and at a ratio significantly higher than in neighbouring Gulf countries.

Saudi Arabia’s challenge remains to deliver Class A assets in line with the changing nature of the market, in both commercial and residential spaces. Other hubs in the region have responded to similar challenges by moving increasingly to mixed-use developments in high quality constructions with good infrastructure. Projects like Dubai International Financial Centre, the Downtown area, or Abu Dhabi’s Yas Island, could provide some signposts for Saudi Arabia to follow.

Further out, the London King’s Cross redevelopment or the huge Hudson Yards project in Manhattan are examples of the kind of integrated work-lifestyle hubs aspirational young people are choosing in the West.

Placemaking is crucial to the new Saudi real estate proposition. It helps developers enhance the value of their assets and generates a revenue stream to offset the development and operational costs. Amenities such as digital connectivity, restaurants, cafés, fitness facilities, events spaces, and easy parking — all within the context of a residential and commercial hub — generate additional revenue for developers ... and are exactly what the new generation of Saudi citizen wants.

Mixed-use developments help create real communities where none existed before, and urban planners see them as the answer to 21st century city living. At the moment, a city like Riyadh has hundreds of square kilometres of housing, but few neighbourhoods. The “placemakers” will help policymakers create such urban magnets.

Experts now believe that the dominant trends in commercial and residential real estate in Saudi Arabia’s big cities are low-rise, mixed-use quality projects that create communities offering lifestyle services. Master-developers are beginning to realise that they need to incorporate community features into their mixed-use developments at an early stage. If not, the impact will be felt for years to come as the industry fails to satisfy market needs, and the aspirations of the Vision 2030 generation go unrealised.

For developers and asset managers, the trends present vibrant opportunities. The burgeoning market is underpinned by three factors: high population growth, steady physical expansion of the urban area, and rapid changes in consumer behaviour. This is creating exciting new opportunities for lifestyle retail, restaurants, events, and mixed-use developments. It is also driving rapid obsolescence of property locations and concepts.

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Property owners in must be adaptable, be agile to the market conditions and invest in their assets to maintain long-term value and relevance. Even with trophy assets such as the Granada Centre, Kingdom Centre and the

Faisaliah District, owners are investing in upgrades and expansions to meet the market, even though they are not much more than 15 years old.

Elsewhere in Saudi Arabia, we see many examples of assets which were once prime but are now trading at 50 per cent discounts to prime rents. The most important job of asset managers in the Kingdom is to plan and deliver life cycle maintenance and improvements that secure and enhance value for the owners.

The pace of change in Saudi Arabia is accelerating at an unprecedented rate under the stimulus of the Vision 2030 diversification strategy. The generation of Saudi citizens coming of age now has different lifestyles and employment and leisure expectations. They want communities and neighbourhoods, not compounds and office blocks.

The real estate industry will play an essential role in that transformation, but it too has to adapt to the new environment and give citizens the experiences they want.

Waleed Alesia is CEO of Raza, the property asset management arm of the Saudi Public Pension Agency. Source: Gulf News Back to Index

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DAMAC TO OPEN DISCOVERY HUB OF OMAN'S MINA AL SULTAN QABOOS IN Q3 Monday, May 27, 2019

The discovery centre of Oman's Mina Al Sultan Qaboos is currently readying to open its doors to the public in Q3 2019, Dubai Financial Market-listed real estate developer Damac International — which is building the waterfront project with Oman Government's tourism development arm Oman Tourism Development Co (Omran) through their joint venture Muttrah Tourism Development Co— confirmed earlier in May.

Senior vice president for international development at Damac, Wael Al Lawati, said the company was looking forward to welcoming visitors to explore Mina Al Sultan Qaboos through its discovery centre.

He added: “Having redefined urban development in the Middle East, our support in this landmark project was an obvious fit, and underlines our ongoing commitment to the development of this region across market segments.”

The development is in line with Oman’s National Strategy for Tourism 2040.

Located at the southern end of the Muttrah Corniche, the space aims to educate visitors of the heritage of Muscat’s Muttrah district, and will also house Bait Al Luban’s seafood restaurant against the waterfront’s backdrop.

Since its initial announcement, Muttrah has undergone extensive planning and place-making research, and obstructing structures around the Phase 1 construction area have been cleared. Source: Arabian Business Back to Index

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SAUDI ARABIA CONSTRUCTION CONTRACT AWARDS GROW 113% TO $13BN IN Q1 Sunday, May 26, 2019

The US-Saudi Arabian Business Council (USSABC) revealed that the value of contract awards in Saudi Arabia grew to $13bn (SAR48.9bn) in Q1 2019, a staggering 113% increase from $6.1bn (SAR23bn) in the same period in 2018, Construction Week reports.

According to USSABC’s Contract Awards Index (CAI) report, the total value of contracts covers megaprojects in various sectors, with oil and gas; water; and transportation projects making up 67% of the total value, accounting for $8.7bn (SAR32.6bn).

The value of awarded contracts in Q1 2019 alone represented approximately 48% of the total value of contracts awarded in 2018.

Makkah accounted for 17% of the total contracts in Q1 2019, recording $2.2bn (SAR8.2bn) during the period, particularly in the water and hospitality sectors.

These projects include the world’s largest desalination plant in Rabigh and the Four Seasons hotel in Jeddah.

Construction work is also under way on Riyadh’s second Ring Road, as well as the country’s much anticipated Riyadh Metro, all of which led to contracts worth $1.7bn (SAR6.4bn) in the capital city.

Saudi Arabia's water sector accounted for $3.2bn (SAR11.8bn) contracts in the first quarter of 2019, led predominantly by the Gulf nation’s Water and Electricity Company, and its Saline Water Conversion Corporation (SWCC).

The value of these contracts surged by 383% compared to Q1 2018 figures, reaching $3.7bbn (SAR14bn) in 2019.

In January 2019, SWCC awarded a $613.5m (SAR2.3bn) contract to a joint venture of Al Rashid Trading & Contracting and Spain's Acciona Group for the construction of a seawater reverse osmosis (SWRO) plant that has a capacity of 600,000m3 per day.

The project is part of Al Khobar SWRO desalination plant's Phase 2 in Al Khobar, and is due to complete in Q4 2021.

Activity was also high in the oil and gas sector in Q1 2019. The world’s largest oil producer, Saudi Aramco, awarded a $640.2m (SAR2.4bn) contract to a consortium of India’s Larsen and Turbo (L&T) and Subsea 7 to expand and construct new facilities at the oil giant’s Zuluf offshore oilfield during Q1 2019.

The project is expected to be completed in Q4 2021.

In the transport sector, Saudi Arabia’s Ministry of Transport inked 88 road infrastructure contracts worth $1.4bn (SAR5.1bn) in February 2019.

Of these, 15 each were signed for work in Riyadh and Makkah – valued respectively at $161.1m (SAR604m) and $262.5m (SAR984m).

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Saudi Aramco’s Marjan and Berri field development projects, and the Jeddah Public Transportation Program, are some of the upcoming schemes for which awards are due in 2019.

The Neom gigaproject, and megaprojects in KA Care, as well as Ma’aden’s Ras Al-Khair, are some of the medium- to long-term projects in Saudi Arabia's pipeline that are expected to bolster construction activities in the years to come.

The positive performance comes as the kingdom’s government, backed by Crown Prince HRH Mohammed Bin Salman, and the Saudi private sector, work to improve the country’s economic position, which was briefly hit by a decline in oil revenues some years ago.

“Consequently, the pace of awarded contracts thus far indicates that construction activities across all sectors will re-emerge as a strategic focal point in the kingdom,” USSABC said in its CAI report. Source: Arabian Business Back to Index

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DUBAI'S ENOC REVEALS EXPANSION PLAN AHEAD OF EXPO 2020 Monday, May 27, 2019

Enoc Group has announced ambitious plans to strengthen its retail and service station network by 2020 to meet the requirements of Expo 2020 Dubai.

The company said it will further expand its retail network to 191 from its current 129 service stations across the UAE in the lead up to the Expo.

It will also expand its local presence across the Northern Emirates through reopening service stations in Sharjah, Ras Al Khaimah and Fujairah.

In 2019, Enoc said it plans to open 15 service stations across the UAE, with five service stations and three compact stations in Dubai.

The group added that it will also move forward with its plans for Sharjah by opening five service stations in its reclaimed locations - one new service station in Fujairah, one in Ras Al Khaimah and three compact stations.

Saif Humaid Al Falasi, Group CEO of Enoc, said: “We are committed and well-prepared to support the UAE’s expansion vision by building a robust fuel retail infrastructure needed in the run up to Expo 2020, expected to attract over 20 million visitors, and beyond.”

By 2020, the company plans to build a total of 47 service stations, which will include 25 stations in Sharjah, four in the Northern Emirates and 15 stations in Dubai, three of which are confirmed at the Expo 2020 Dubai site, in addition to three compact stations.

The compact station is a new fuelling format introduced last year offering customers accessible and convenient refuelling services. The first of these will be in Sustainable City, while future stations will be located in residential communities operated by Emaar and Meydan.

Enoc said its new service station at the Expo 2020 Dubai site will follow the new design concept of the Ghaf tree, which symbolises the Year of Tolerance observed by the UAE this year. Source: Arabian Business Back to Index

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SAUDI ARABIAN RETAIL MARKET IS 'REBOUNDING', SAYS PATRICK CHALHOUB Monday, May 27, 2019

The Saudi Arabian retail market is tipped for huge growth in the coming years, driven by solid government strategy and a growing middle class.

That’s according to Patrick Chalhoub, co-CEO of the Dubai-headquartered Chalhoub Group. The retail veteran told Arabian Business he is ‘confident’ of the kingdom’s retail outlook.

“We can see the rebound with Saudi Arabian consumers already and we hope it lasts,” he said.

Chalhoub said he is confident that kingdom’s middle class will sector will grow as more women go out to work.

“When you go to Saudi Arabia you can see a real change, it’s phenomenal. The [Saudi] women are working now. Their lives were previously taken care of by the husband and fathers and while I don’t think this will change a lot, the revenues will now be spent in different sectors, including the consumption of luxury and beauty products,” the co-CEO of the Middle East’s largest retail operator said.

Chalhoub is also confident of a wider retail rebound across the GCC, in part due to successful government economic diversification strategies.

He said, “I feel that the different governments have put in place some hard visions and strategies for economic diversification, which means a rebound in the development of different sectors, which will benefit a lot of people within the middle classes.”

Retail boom

Despite a slowing global economy, the GCC's retail sector is forecast to grow by about 22 percent to $308 billion in 2023 from last year with the UAE and Saudi Arabia accounting for the bulk of sales over the next five years, said recent report from Alpen Capital.

Population growth, a rise in per capita gross domestic product, and an expanding tourism industry will help drive the retail sector's acceleration in the GCC, it said.

Chalhoub is in agreement with the report’s findings and said he expects about four percent growth per annum for GCC retail for the next "four or five years".

The co-CEO, who was speaking at a launch event in London for The Chalhoub Group’s annual Luxury Travel and Retail whitepaper on Thursday, said today’s customers are evolving and becoming more connected, demanding and knowledgeable.

Chalhoub said that while only four percent of the group’s sales are online, he is prepared to rapidly customise the group’s offerings based on consumer demand.

He said: “We have to engage through digital and all our windows and social connections. It’s all a world of commerce – whether it’s commerce or e-commerce. It’s not just one world or the other – we just need to understand customer journey. We really need to be able touch our customers at any touch point.

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“I don’t care if we have 8 per cent cent ecommerce or 50% ecommerce. For me, the focus is the customers and what they want. We need to stop having this divide between on and offline. I focus on my customers and all their touch points.”

The Chalhoub Group has more than 12,000 employees in 14 countries. Some of Chalhoub’s joint ventures include Louis Vuitton, DioCouture, Sephora, Fendi, Puig, Celine, Givenchy, Louboutin, and Christofle. Source: Arabian Business Back to Index

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OMAN'S SALALAH GRAND MALL SET TO OPEN BY END-2019 Friday, May 31, 2019

Salalah Commercial Centre hosts a signing ceremony of 27 new lease agreements for the new mall project located in the Dhofar Governorate

Salalah Grand Mall will include a LuLu Hypermarket, along with several brands operated by Dubai-based Landmark Group and entertainment centre Faby Land.

Salalah Grand Mall, a mixed-used project being developed by Salalah Commercial Centre in partnership with the Ministry of Defence Pension Fund and Al Madina Real Estate, is set to open by the end of this year.

The opening date was revealed as Salalah Commercial Centre hosted a signing ceremony of 27 new lease agreements for the new retail complex located in the Dhofar Governorate.

The new mall covers an area of 51,000 square metres and will include a Lulu hypermarket, retail stores, food court, and cafes.

Hamad Mohammed Hamood Al Wahaibi, chairman of Salalah Commercial Centre, said: “We are delighted to welcome the first batch of brands to our latest projects in the Governorate of Dhofar – the Salalah Grand Mall. The mall will be of great value to the Wilayat of Salalah and, by extension, the Dhofar Governorate as a whole.”

Khamis bin Mubark Al Kiyumi, chairman of Al Madina Real Estate added: “The mall opens doors for foreign investments in the retail sector, and job opportunities for the people of the governorate, as well as enhances the attractiveness of the region from a tourism perspective.”

Salalah is the capital of Omani tourism and attracted more than 826,000 visitors during the last Khareef season, an increase of over 28 percent over the previous year. That number is expected to reach one million visitors this year.

Salalah Grand Mall will include a LuLu Hypermarket, along with several brands operated by Dubai-based Landmark Group and entertainment centre Faby Land. Source: Arabian Business Back to Index

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HOMEFRONT: 'MY OFF-PLAN PROPERTY IS DELAYED. HOW DO I SEEK COMPENSATION?' Wednesday, May 29, 2019

The UAE resident will have to rent another home while he waits for the property to be delivered

The buyer wonders if he should represent himself in any arbitration proceedings or appoint an Emirati lawyer. Getty Images

I purchased an off-plan property under a 40/60 payment plan, where 60 per cent of it was paid at handover. I have paid around 91 per cent now and have completed the Oqood registration. The property was supposed to be handed over by June 2018 , according to the sales and purchase agreement (Spa), with 12 months more time if required. It should ideally be handed over by June 30 but the contractor has stated July 31 as the completion date. There has been no communication of 'force majeure' [unforeseeable circumstances that prevent a contract being fulfilled] on the delay from the developer. Based on an internal discussion with them, the delay is mainly due to lack of funding. According to the Dubai Land Department website, the project is 73 per cent complete.

After visiting the site in May 2019, it is clear to me it will take another year to complete the construction, particularly as there are less labour staff at the site. In addition to that, I estimate it will be a further one to two months to complete the handover. Effectively, I think I will receive the property in the second quarter of 2020.

I do not plan to the cancel the SPA, however, I plan to move from another emirate to Dubai by July this year. With the children's school in the vicinity of the new apartment, I'll be forced to rent an apartment in Dubai with rental contract of at least one year.

Is there a legal recourse to seek compensation for the rent that I will have to pay in Dubai and the rental contract time, which will overlap the handover date in 2020. Do I start with a written notice to the developer? Do I have to wait until June 2019 and only then initiate any arbitration. Can I go into arbitration on my own as an expatriate or do I have to hire a lawyer and an Emirati to represent me. WS, UAE

As in all these difficult situations, it is better to discuss your position in face-to-face meetings, Therefore, initially, seek to get some answers from a person of high position within the developer's office before doing anything else. Depending on how this meeting goes, this will determine your next move(s).

To answer your questions, I would advise the following: with reference to any legal recourse for compensation in terms of having to rent due to the property being delayed will depend on what your Spa says regarding delay penalties. Often the penalty amount is capped so depending on what the cap is will determine if you will be recompensed the full amount of rent paid should you have to move into another property in the meantime.

Any formal complaint or notice always has to be in writing; this will also act as a record and you have the opportunity of being able to chronologically quote all the facts. Filing a case against the developer can potentially be done at any time however, it is probably wise to wait until handover so you can claim for the full extent of

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damages that were caused by the delay. In addition, if after handover it is found that there are variations in size and specification to the unit, these too can be added into the potential future claim.

Of course you can attend any hearing of arbitration however, it is uncommon for an individual to represent themselves without the use of professional legal counsel. It is therefore advised to have a lawyer present and preferably an Arabic speaker.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years in London and Dubai

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [email protected] Source: The National Back to Index

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SAUDI ARABIA'S DIRIYAH TO BE THE 'BEVERLY HILLS' OF RIYADH, SAYS CEO Wednesday, May 29, 2019

Saudi Arabia’s Diriyah area will one day be the “Beverly Hills of Riyadh”, complete with wellness facilities and resorts, according to Gerard ‘Jerry’ Inzerillo, CEO of the Diriyah Gate Development Authority.

Plans for the Diriyah area, located on the outskirts of Riyadh, call for the adjacent 65 square kilometre Wadi Safar area – currently the site of numerous large farms – to be built-up and developed.

In an interview with Arabian Business, Inzerillo said that once completed, the area would be comparable to California’s Beverly Hills and Bel Air areas.

“One of the busiest metroplexes in America is southern California and the city of Los Angeles, but people say that Beverly Hills and Bel Air are a respite, a beautiful kind of oasis in the middle of a very urban city,” Inzerillo explained. “Diriyah is an oasis in an urban city of what will eventually become 8, 9, 10 million people.”

Formula E Grand Prix

Inzerillo added that the Saudi government has ambitious plans for the ‘greening’ of the area, which include the planting of an additional 10,000 trees in time for the upcoming Formula E Grand Prix in December.

“It will become more environmentally friendly and family friendly,” he added. “The master-plan [in Wadi Safar] calls for beautiful, low-density, high-level wellness facilities where people can come from Riyadh for the weekend and have best-in-class resorts.”

Gerard ‘Jerry’ Inzerillo, CEO of the Diriyah Gate Development Authority.

While the area is still under development, approximately 100,000 people are expected at the Diriyah E-Prix Formula-E race later this year, up from 40,000 in 2018.

The area is also home to the At-Turaif Unesco world heritage site, which is expected to open its doors to the Saudi public – and foreign visitors - for the first time in the fourth quarter of this year. Source: Arabian Business Back to Index

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SAUDI ARABIA'S SRC REDUCES RATES FOR LONG-TERM, FIXED RATE MORTGAGES Thursday, May 30, 2019

The move is aimed at supporting the growth of the kingdom's secondary mortgage market

Saudi Public Investment Fund subsidiary Saudi Real Estate Refinance Company (SRC) has reduced rates for its long term, fixed-rate (LTFR) mortgages offered to eligible borrowers by its partners, it was announced on Thursday.

In a statement, SRC said that the move is aimed at supporting the growth of Saudi Arabia’s secondary mortgage market and to increase liquidity and facilitate access to domestic and international financing sources.

SRC has reduced the profit rates on 15-20 year LTFR mortgage loans. 20-year loans, for example, have done from 7.10 percent APR (3.85 percent flat) to 6.25 APR (3.52 percent flat) effective from April 29, 2019.

Driven by macroeconomic factors, the rate drop enables SRC and the partner primary originators to pass on the benefits to end borrowers.

“The rate drop on our already attractive LTFR products makes home ownership ever more affordable and accessible for Saudi citizens, and on the back of the great work done by the DMO/MOF to extend the tenor of the curve, we will soon provide competitive pricing for even longer tenor,” said Fabrice Susini, CEO of SRC.

“This also acts as a critical enabler in facilitating the mortgage penetration, which is among the lowest in the region,” he added. “In this context, the development of a secondary housing finance market will ultimately meet the Vision 2030 housing sector goal of increasing home ownership to 60 percent by 2020 and 70 percent by 2030.” Source: Arabian Business Back to Index

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DUBAI LAND DEPARTMENT AND MASHREQ BANK SIGN E-MORTGAGE DEAL Tuesday, May 28, 2019

Dubai Land Department and UAE lender Mashreq Bank unveiled a blockchain-based electronic mortgage system to speed up and strengthen the home loan registration process, as the emirate looks to digitalise its services and encourage greater investment in real estate.

“The development and launch of the new e-mortgage system comes as part of our ongoing efforts to enhance automation applications and systems in our transactions to reduce paper transactions and the number of visits,” said DLD director general Sultan Butti Bin Mejren in a statement on Tuesday.

Under the licence agreement, Mashreq Bank mortgage holders will be linked up with DLD’s new electronic mortgage registration system following a property sale to ensure all mortgages are properly registered and recorded via the new platform. Mortgages can also be modified through the system, and liquidations and payment defaults logged.

The e-mortgage system is the latest initiative by Dubai government’s real estate department to adopt blockchain, the digital ledger technology, in its administrative processes. Last year, it launched the blockchain-based Real Estate Self Transaction, or ‘REST’, system, intended to enable “the complete digital management of real estate transactions, eliminating paper documents and reducing brokerage procedures" DLD said at the time.

The initiatives are part of the Dubai 10x initiative, which aims to place government entities 10 years ahead of the rest of the world in all sectors, including real estate. It is a key part of the UAE’s plans to advance its digital economy and further diversify from oil.

Following the deal with Mashreq, DLD will seek new bank partners for its e-mortgage system, it said.

“Applying the e-mortgage system requires synergy with leading UAE banks … to spread its benefits to the largest number of investors,” said Majid Saqer Al Marri, chief executive of registration and real estate services at DLD.

“We will continue to seek the best partners to ensure the comfort and happiness of our customers, as well as develop the system and support it with the latest technologies to keep pace with developments in real estate services.” Source: The National Back to Index

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GOLD CARD VISA RESIDENCY SYSTEM A 'GAME CHANGER' FOR UAE PROPERTY MARKET Tuesday, May 28, 2019

The programme is expected to help in absorbing the supply scheduled to come to the market

According to Property Finder, the current short-term visas linked to employment hold back expats from investing and owning real estate in the UAE, with many opting instead to remit their savings back to their home countries.

The UAE’s decision to grant permanent residency to investors and entrepreneurs is an important boost to the country’s property market, according to Property Finder.

The ‘gold card’ system would see an initial batch of 6,800 people being granted their new status. The first batch of investors would hold total investments of AED100 billion ($27 billion).

“This is a game changer for the real estate industry in Dubai,” said Lynette Abad, the director of research and data for Property Finer. “We are yet to get full details of the gold card programme, such as who can qualify, the terms, etc. However, it’s definitely a step in the right direction and very much needed to stimulate investment, especially foreign direct investment.”

In a statement, Property Finder said the permanent residency programme has the potential to be a ”game changer” for the real estate sector.

“It would have an immediate positive effect on market sentiment and aid in absorbing the supply scheduled to come to the market,” the statement said.

In the first week alone, the UAE government reported receiving approximately 6,000 applications from investors and entrepreneurs seeking long-term residency visas.

“Initiatives and new regulations like these are expected to have a positive impact on the real estate market in Dubai,” Abad said.

“The more the government offers to entice talent and companies, the easier it will be for them to settle here and call Dubai home. Then, the investment should follow suit,” she added.

The Property Finder statement added that developers would be well advised to incentivise investors with schemes that offer “permanence and value for money” in a competitive market. Source: Arabian Business Back to Index

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ARABTEC SUBSIDIARY BAGS DH192M DEAL TO BUILD TWIN RESIDENTIAL TOWERS Tuesday, May 28, 2019

Target Engineering, a wholly owned subsidiary of Dubai-listed Arabtec Holding, won a Dh192 million contract to build a twin-tower residential project in the emirate.

The scope of work on Wilton Park Residence being developed by Ellington Properties includes construction, landscaping, irrigation systems and mechanical, electrical and plumbing works, Arabtec said in a statement to the Dubai Financial Market, where it shares trade.

The 12-storey development is being built in Al Merkadh area of Dubai and work will commence immediately for a duration of 24 months. Target is also working on Ellington’s DT1 project, a high-rise development in Dubai’s Downtown, which was awarded in July 2017.

“Ellington has had the confidence to award Target its second project, highlighting the importance of solid relationships and delivery,” said Arabtec’s acting group chief executive, Peter Pollard.

Earlier this month, Arabtec’s board replaced outgoing group chief executive Hamish Tyrwhitt with Mr Pollard.

Arabtec, whose portfolio of projects include the world’s tallest building, the Burj Khalifa in Dubai, the Emirates Palace Hotel and Louvre Museum in Abu Dhabi, had reported profit increases in eight quarters until the end of last year, after it restructured its business and sold a number of non-core assets. Source: The National Back to Index

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DUBAI'S EMAAR DENIES PLAN TO SELL DISTRICT COOLING BUSINESS Monday, May 27, 2019

Emaar denial follows claims that Burj Khalifa developer had hired Standard Chartered to arrange the sale of cooling business

Emaar Properties is the builder of the world-famous Burj Khalifa in Dubai.

Dubai developer Emaar Properties has denied a report on Sunday it is planning to sell its district cooling business.

The Reuters news agency claimed sources had told them the developer had hired advisors, including Standard Chartered, to arrange the sale of Emaar Distict Cooling.

However, an Emaar spokesperson denied the report, claiming “the information is factually incorrect”.

Emaar Properties in March recorded one of its highest ever quarterly sales in Dubai in Q1 2019 at $1.628 billion (AED 5.979 billion), a 53 percent increase from $1.063bn (AED3.906bn) in the same period as 2018.

The rise in numbers was largely due to a 123 percent surge in sales to international customers, which more than doubled to $720 million, compared to $323 million (AED1.187bn) in Q1 2018. Source: Arabian Business Back to Index

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UAE'S AZIZI OFFERS $2.7M BONUS TO DRIVE DUBAI PROJECT COMPLETIONS Monday, May 27, 2019

UAE-based Azizi Developments has announced plans to incentivise its contracts with a bonus of up to AED10 million ($2.7 million) to encourage the timely completion of its projects in Dubai.

The announcement coincides with Azizi Developments marking 2019 as its Year of Construction, with nine of its projects scheduled for handover this year.

Farhad Azizi, CEO of Azizi Developments, said: “This new incentive is a token of gratitude and an encouragement to our contractors and partners for their commitment to ensure the timely delivery of our projects. At Azizi Developments, we assign the highest priority to five core segments – our customers, staff, contractors, the government and brokerage firms. Every strategic initiative of ours is directed at offering added value for them.”

He added: “Announcing this bonus is a bold move that we have been considering for a while, and we believe that it is a tremendously beneficial one as it will contribute to customer happiness, which is the true benchmark of our success.”

Azizi Developments said it carefully selects its contractors and works closely with them to ensure that all work is completed as per the initial schedule.

It added that with on-time delivery, costs involved in snagging and hiring new contractors, if a project is delayed, as well as other expenses, can be curtailed.

Earlier this year, Azizi said it is exploring opportunities in “iconic” developments in markets including Saudi Arabia, Germany, the UK and Canada.

In an interview with Arabian Business, Azizi said he spent much of 2018 traveling to a number of different countries to examine potential opportunities for the company. Source: Arabian Business Back to Index

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NEARLY 430 NEW RESTAURANTS, CAFES OPEN IN DUBAI IN 2019 Monday, May 27, 2019

The total number of new restaurants and cafes opening in Dubai has reached 427 during the first four months of 2019.

According to the Business Registration and Licensing sector in the Department of Economic Development Dubai, the number includes 258 restaurants and 169 coffee shops, a growth of 25 percent compared to the same period in 2018.

The figures show that at least two restaurants and one coffee shop open daily in Dubai, state news agency WAM reported on Monday.

Bur Dubai accounted for the largest share of operational restaurants and cafes, followed by Deira, the research revealed.

The report also showed that the top ten nationalities investing in this sector during the first four months of 2019 were Indians, followed by Brits, Ethiopians, Pakistanis and Lebanese.

The total number of workers in active restaurants and cafes in Dubai reached 1,566.

The DED said in the report that restaurants and cafes must maintain the highest standards to be accepted by the public, citizens, residents and tourists. Source: Arabian Business Back to Index

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DUBAI COMPLETES PROJECT TO REVIVE DEIRA MARKETS IN HERITAGE PUSH Saturday, Jun 01, 2019

Dubai Municipality aims to revitalise traditional markets and reinforce role as a major cultural and tourism attraction

The development of the Dubai markets was carried out in two phases.

Dubai Municipality on Saturday announced the completion of a project to revive the traditional markets of Deira.

The project aims to revitalise the area’s traditional markets and reinforce its role as a major cultural and tourism attraction in the emirate, a statement said.

While preserving the character and historical importance of Dubai’s traditional markets, the project also adds several creative touches to the surrounding modern buildings to enhance the area’s historical ambience, the statement added.

The initiative is part of the development projects approved by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in January.

The development of the Dubai markets was carried out in two phases, the first of which included the completion of the main information centre at the entrance of the Grand Souq in Deira.

A second centre built close to Al Ras Metro station offers tourist maps and information brochures on the traditional markets and historical landmarks.

Work on the project included installation of shades, development of the floor and ceiling, installation of market entry signboards and billboards, facilitating market connectivity and visitor traffic movement, as well as installing seating areas. Street names and nameplates were changed to reflect the heritage and traditional spirit of the place.

The second phase of the traditional market development project included the addition of an Abra station opposite the historic Shindagha district in addition to allocating a bus stop to give easy access to tourists. These sites will be implemented in conjunction with the Deira Waterfront Development project.

Dawoud Al Hajri, director general of Dubai Municipality, said: "Dubai has witnessed significant leaps in its development over the past few decades and has become a global trading and business hub in a short period of time.

"The retail sector in the region is supported by a range of modern markets that are among the most prominent in the world and attract some of the world’s prestigious international brands. However, this drive for modernity has not diminished the importance of traditional markets, which have been at the heart of the city’s commercial and economic life.

“We received clear directives from HH Sheikh Mohammed to give special attention to these traditional markets and restore the prestige they enjoyed over the decades, which gave them an important place in the emirate's history," Al Hajri added.

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The Dubai Municipality project aimed to preserve more than 220 historical buildings by renovating their facades and restoring their historical and architectural uniqueness.

The project also sought to enhance the urban spaces surrounding these buildings by modifying traffic routes to highlight the distinct character of the historic area.

The oldest commercial complex in Dubai was restored and rehabilitated following specialised studies focused on restoring the architectural authenticity of the markets.

The shops were renovated according to the general requirements of the commercial area.

Dubai Municipality said it is currently reviewing a comprehensive plan for the development of the entire historical areas in Deira and Bur Dubai. It also includes the launch of a smart application that offers a tour of the market and information on its most important heritage features.

The market is the largest, oldest and most important in the area thanks to its direct connectivity with the harbour on the creek that enables it to receive merchandise from cargo ships from Africa and the Indian subcontinent.

Located along a narrow strip, the pedestrianised market featuring small shops has traditional air towers that cool the atmosphere. Large doors made of dark red wood add to the character of the place. The markets offer a wide range of merchandise including souvenirs, metal works, pots, trays, spices, perfumes, medicinal herbs, shawls and fabrics. Source: Arabian Business Back to Index

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OVER 4,000 COMPANIES OPERATE IN DUBAI'S GOLD SECTOR, SAYS DED Sunday, May 26, 2019

The Business Registration and Licensing (BRL) sector in the Department of Economic Development (DED), Dubai, in its new report, states that 4,086 companies operate in the gold sector in Dubai.

The report includes statistics on the number of companies operating in Dubai, the activities of the gold market sector and the distribution of the companies across the emirate. The report aims to familiarise entrepreneurs with the gold sector, and highlight its role in adding value to the economy.

Of the 4,086 companies, 2,498 licences were issued for “Jewellery and jewels of gold and silver”, 1,184 for trade in “Gold and precious metals”, 392 for “Goldsmiths and precious jewellery”, 7 for “Gold foundry and precious metals”, and 5 for "Gold liquidation" activity.

The report highlighted the distribution of the companies according to the top sub-regions. The top regions, which accounted for 46.5% of the total number of companies, are Al Dhagaya followed by Al Ras, Ayal Nasir, Burj Khalifa, Warqa Al Bateen, Al Muraqqabat, Port Said, Al Rigga, Trade Centre 1 and Al Barsha 1.

The report also showed that Indians led the top ten nationalities investing in this sector followed by the citizens of Pakistan, Britain, Saudi Arabia, Switzerland, Oman, Jordan, Belgium, Yemen and Canada. The number of investors in the gold sector stands at 62,125 including 60,012 businessmen and 2,113 businesswomen.

The total gold, jewellery and diamond sales, reached AED 274 billion last year, an increase of about 3% compared to 2017, according to the Dubai Gold and Jewellery Group. The UAE's trade in gold and precious stones has also grown significantly in recent years. The country's foreign trade in this sector is estimated at about AED 400 billion annually. The import of gold was valued at AED 142.4 billion, while the value of exports amounted to AED 75.9 billion, and the value of re-exports to AED 26 billion, according to the Federal Customs Authority.

The gold and jewellery sector provide residents of Dubai with gold imports from about 30 countries. This also meets the demand of tourists who visit Dubai. Source: Arabian Business Back to Index

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$1.4BN ROYAL ATLANTIS ON TRACK TO OPEN NEXT YEAR Wednesday, May 29, 2019

The Royal Atlantis Resort and Residences is on track to open its doors to the public by Q3 of 2020, according to a senior executive.

“The Royal Atlantis project is coming together quite well. All of the design is complete, now it is just about finishing the project,” said Timothy Kelly, executive vice president and managing director of Atlantis Resorts and Residences.

Located on Palm Jumeirah, the $1.4bn (AED5.14bn), 42-storey development – which will operate as a sister hotel to Atlantis, The Palm – will boast 800 guest rooms and more than 230 serviced apartments upon completion.

“We have two, three, four and five bedroom formats available. We are very excited about that coming to life. We will have the building topped off in the coming weeks and with that we are starting to fit out,” he said.

The new Royal Atlantis is planning on introducing innovative food and beverage concepts and will be home to 11 restaurants, 6 of which will feature celebrity chefs, including Estiatorio Milos, Dinner by Heston Blumenthal, Jaleo by Chef José Andrés, Hakkasan and Ariana’s Persian Kitchen.

“Combined with Atlantis The Palm, we will have 10 celebrity chef restaurants, all under one campus which doesn’t exist anywhere in the world,” he said. Source: Arabian Business Back to Index

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DUBAI'S DAMAC HANDS OVER FIRST SHARIA COMPLIANT PROPERTY Thursday, May 30, 2019

Ghalia houses 727 fully furnished, luxury apartments and is located in the heart of the Jumeirah Village Circle

In keeping with Sharia law, Ghalia features separate amenities for men and women, including separate dining facilities, gymnasiums and swimming pools.

Ghalia, Damac’s first Sharia compliant offering, has entered the handover phase with the first residents being welcomed.

The development houses 727 fully furnished, luxury apartments and is located in the heart of the Jumeirah Village Circle community.

“Ghalia is our first Sharia compliant project, catering to the growing demand for luxury living that complies with Sharia laws,” said Ali Sajwani, general manager of operations, Damac Properties. “These are ready-to-live-in apartments, and residents will find that we have paid attention to every last detail in terms of furnishing and accessorising their space.”

In keeping with Sharia law, Ghalia features separate amenities for men and women, including separate dining facilities, gymnasiums and swimming pools.

The residential tower also offers a mix of one, two, and three-bedroom apartments with kitchens, furnishings, bathroom fittings and bedrooms.

Sajwani said: “This year, we are focusing on the completion and delivery of ongoing projects. With the handover of Ghalia, our total number of units delivered will cross the 25,000 mark. In 2018, we handed over 4,100 units, setting a new record for ourselves and we are aiming to out-do last year’s record by handing over more dream homes and hotel units this year.” Source: Arabian Business Back to Index

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INVESTORS IN DUBAI'S HEART OF EUROPE TO QUALIFY FOR MOLDOVAN PASSPORTS Thursday, May 30, 2019

The passports will allow visa-free travel in the Schengen zone and 121 countries around the world

Since the end of December, Kleindienst said it has sold 100 percent of phase one including Sweden Island, Germany Island, St Petersburg Island and over 80 Floating Seahorse Villas.

Investors who buy property worth more than AED 5 million in UAE developer Kleindienst Group’s Heart of Europe project this summer will automatically qualify for Moldovan citizenship, the company announced on Wednesday.

With a Moldovan citizenship, investors would be able to travel visa-free across the Schengen area and 121 countries around the world.

“Surpassing client expectations through every element in our offering is an essential part of our approach,” group founder and chairman Josef Kleindienst said. “We understand the need for creating outstanding value that surpasses high-quality structures and innovative builds.”

“With the demand for nationality by investment growing globally, especially amongst residents in the Middle East and Asia who are looking for more stability and security than their current passports offer, we found this element to be of great value to our investors, and have already started receiving very positive feedback from our clients,” he added.

In April, Kleindienst Group announced a record sales quarter of over AED345 million ($93.9 million) for its freehold second homes.

This represents a 69 percent year on year increase compared to Q1 2018, the developer said in a statement.

Since the end of December, Kleindienst said it has sold 100 percent of phase one including Sweden Island, Germany Island, St Petersburg Island and over 80 Floating Seahorse Villas.

With over 2,000 people working on the islands Kleindienst, will hand over phase 1 by the end of 2019, it added. Source: Arabian Business Back to Index

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UAE'S AZIZI OFFERS $2.7M BONUS TO DRIVE DUBAI PROJECT COMPLETIONS Monday, May 27, 2019

Bonus announcement coincides with Azizi Developments marking 2019 as its Year of Construction, with nine of its projects scheduled for handover this year

UAE-based Azizi Developments has announced plans to incentivise its contracts with a bonus of up to AED10 million ($2.7 million) to encourage the timely completion of its projects in Dubai.

The announcement coincides with Azizi Developments marking 2019 as its Year of Construction, with nine of its projects scheduled for handover this year.

Azizi Developments said it carefully selects its contractors and works closely with them to ensure that all work is completed as per the initial schedule.

It added that with on-time delivery, costs involved in snagging and hiring new contractors, if a project is delayed, as well as other expenses, can be curtailed.

Earlier this year, Azizi said it is exploring opportunities in “iconic” developments in markets including Saudi Arabia, Germany, the UK and Canada.

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DEVELOPER SAYS $410M DUBAI PROJECT ON TRACK FOR END-2019 COMPLETION Sunday, May 26, 2019

Shapoorji Pallonji has announced that its Imperial Avenue tower project in Dubai is now 40% complete

Imperial Avenue in Downtown Dubai consists of 424 apartments and five levels of parking.

Developer Shapoorji Pallonji (SP) has announced that its Imperial Avenue tower project in Dubai is now 40 percent complete and on schedule for handover by December 2019.

The luxury residential project, located in Downtown Dubai, is the company’s flagship project in the UAE.

Construction of 28 floors has been completed in less than two years on the project which is valued at over AED1.5 billion ($410 million).

“We are very pleased with the progress of Imperial Avenue and delighted to announce that we are currently on schedule for a timely completion in twelve months,” said Cyrus Engineer, managing director at SP International Property Developers.

“SPIPD prides itself on serving clients with transparency and honesty to meet contractual handover date. This confirms our commitment to our investors.”

He added: “The property market in the UAE is seeing early signs of resurgence leading to renewed optimism and we have been closely monitoring this trend.”

Imperial Avenue consists of 424 apartments and five levels of parking. Source: Arabian Business Back to Index

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DUBAI’S HOMEOWNERS WANT THEIR SAY ON SHORT-TERM RENTS Thursday, May 30, 2019

Those at Oceana on the Palm decide to impose penalties on landlords offering such stays.

The Oceana on the Palm. Unlike at other communities, the contractual documentation at Oceana does not allow the leasing of a unit for any duration “less than 12 months”.

Dubai: Not everyone in Dubai’s property market is thrilled about landlords offering short-term rentals. The residents at the Oceana on the Palm definitely aren’t.

The Owners Association (OA) at the recent annual general meeting set penalties on any owner allowing his unit to be leased on a short-term basis.

Unlike at other communities, the contractual documentation at Oceana does not allow the leasing of a unit for any duration “less than 12 months” and only then as a single-family residence. The contracts specifically notes that none of the homes should be put up as “holiday homes” or for “short-term rentals”.

Failure to do so will see the concerned property owner being hit with a penalty of Dh10,000 in the first instance, Dh50,000 for a repeat, and no access cards being provided for these transient visitors to access the common facilities.

The Owners Association has been tasked with enforcing these obligations as they do not want shortterm visitors. Many had bought at the development exactly because of this.

- John Stevens | Managing Director at Asteco

As for those at Oceana, “The Owners Association has been tasked with enforcing these obligations as they do not want short-term visitors in their community,” said John Stevens, Managing Director at Asteco. “Many had bought at the development exactly because of this provision in their SPA (sales and purchase agreement).” The Oceana currently has a 95 per cent occupancy, with 60 per cent plus being owner-occupiers.)

It is learnt that owners associations at some of the other towers in Dubai are also in two minds about homes being rented out for durations anywhere from a day to a few weeks. They need to make up their minds either way because the short-term rental phenomenon has caught on, and property owners do not want to miss out on any chance to generate returns from their unit. More so, as the market for yearly rentals is still under extreme duress, with rates continuing to drop across the city.

Oceana’s homeowners have sought clarification from the local authorities, in this case Dubai Tourism and Commerce Marketing (DTCM), which is the entity licensing and regulating short-term rentals. According to sources, DTCM’s stance is that given that it is the licensing authority — giving landlords the right to lease short- term — this overrides any OA directives which is what the Owners in Oceana who bought units there specifically because short-term rentals were prohibited is fighting.

According to Stevens, “Everyone understands the benefits offering units on a short-term basis bring to owners and the economy. But these must not overrule those legal documents that every homeowner has signed

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committing them not to do short-term rents. This will continue to be challenged by Oceana’s Residential Owners Association.” (Asteco is operating as “association managers”.)

It is uncomfortable to have shortterm residents as neighbours, you just don’t know who they are, or our rules or facilities in the same way as those of us who see it as home.

- Marc Haberland | Board member, Oceana Residences

There is no arguing that holiday homes and short-term stays open up more options for property owners/investors in Dubai. Multiple property booking sites have opened up, hoping to do what Airbnb managed on a global scale. More landlords too are willing to give the concept a try, prompted by the sharp drop in rents for full-year leases over the last two years.

But dealing with owners associations needn’t be a smooth ride. Vinayak Mahtani, CEO of bnbme, said: “We understand owners associations in several cases don’t like units to be put up on the short-term market. We work with OAs and (their) board members to understand better what their concerns are and then market out properties accordingly. It is normal that a family building would not like to have five bachelors partying at the pool with music played extra loud.”

Mahtani reckons there are ways to avoid such hassles. The homeowner needs to bring in a property management company and have parameters in place to screen guests.

“Owner associations should also start to vet companies and limit the number allowed to manage in their building,” he added. “Have a tendering process where the property management firm needs to apply to be able to manage in the building. And OAs should dictate minimum prices that units can lease at — this helps keep away unwanted guests.”

But it may take a lot more convincing if OAs are to shift their stance. Their biggest grouse may not be about the music being too loud, but on the cost factor.

“Short-term rentals place a much higher load on a building’s facilities — a long-term resident probably rises in the morning, goes to work during the week and perhaps uses the facilities on weekends or evenings,” said Stevens. “Those using the property as a base for a holiday are probably in and out as well as make more use of the facilities such as the pool and gym.

“This cost then creates an additional expense borne by all those paying service charges.”

As a board member of the Oceana Residential Owners Association and resident, I am very aware that short-term rentals are not allowed in our community. We end up dedicating time and resources to control and manage this issue, which could be better spent elsewhere in the community. This matter is raised annually in our AGM and owners have tasked the board to stop this from happening. On a personal note, it is quite uncomfortable to have short-term residents as neighbours, you just don’t know who they are, or our rules or facilities in the same way as those of us who see it as home - Marc Haberland, board member, Oceana Residences.

When I bought my home in Oceana, I knew that short term rentals were not allowed. I personally have experienced a neighbouring unit who rented out on a short-term basis and they treat the community as a hotel rather than home, The noise, constant change in occupants and general attitude of these visitors is something that I should not have to deal with if the rules are followed - Kosai Daioub, owner, Oceana Residences. Source: Gulf News Back to Index

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CASH -BASED TRANSACTIONS CONTINUE TO DOMINATE DUBAI REALTY Wednesday, May 29, 2019

Cash is still the king and it continues to rule Dubai's property market despite a decline of over one-third in transactions due to a slowdown in the economy and property prices, according to official data.

Figures showed that around 85 per cent of total investment going into Dubai's real estate is cash-based, while the remaining purchases are backed by mortgage. Since most of the purchases are spurred by cash, this shows that a large chunk of investments in property is coming from foreign investors, while mortgage deals are backed by residents.

Quoting data from the Dubai Land Department, the Central Bank of the UAE's 2018 annual report revealed that investments in real estate with a value of deals of less than Dh10 million in Dubai fell 34.3 per cent to Dh45.6 billion last year compared to Dh69.4 billion in the previous year.

Cash payments made up 84.4 per cent while mortgages accounted for 15.6 per cent of the property deals.

Raju Menon, chairman of Kreston Menon, said more cash transactions means most of the investments into Dubai's real estate sector is coming from abroad while smaller mortgage deals are done locally by residents living and working in the UAE.

"It means around 85 per cent of investment flowing into the emirate's property sector is coming from outside in the form of cash. These foreign investments should continue to happen and we need much more investments," Menon said.

He pointed out that overall investment declined due to a slowdown in the economy, a persistent fall in property prices and very low yields.

"Overall investment declined because investors are hesitant to invest due to a drop in property prices. Investors want to see capital appreciation. Now, return on investment has gone down and capital appreciation is also not there. Therefore, the investments have gone down," said Menon.

He praised the government's efforts, saying authorities are announcing great initiatives and encouraging people to come and invest here and then settle on a long-term basis with the introduction of permanent residency and long-term visas. In addition, the cost of doing business is going down too in the form of lower licence and visa fees.Quoting data from Reidin, the central bank report said that Dubai recorded an average fall of 6.4 per cent in residential property prices last year compared to a decrease of 1.3 per cent in 2017. The average price in the property market reached Dh12,918 per square metre compared to Dh13,803 in 2017.

Both property prices and rentals have been consistently on the decline since mid-2014. But now the markets are nearly bottoming out and remain attractive for investors.

Atif Rahman, director and partner at Danube Properties, said cash purchases - which include physical cash and current-dated cheques and instant bank transfers - has historically dominated property transactions in Dubai for a number of reasons. It happens in emerging and high-growth markets, and there are a few reasons for this.

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"Firstly, the market is still run on traditional processes and the cash transactions reflect higher end-user purchase. So, it's not unhealthy. Besides, most property purchases start with a hefty downpayment, which is instant and cash or a current-dated cheque payment. It could also be due to higher foreign buyers entering the market, as Dubai attracts a large amount of foreign property buyers who buy either to live or to rent out as an investment," said Rahman.

He believes that the decline in the transaction value is temporary and it will bounce back by the end of the year. "One reason could be a decline in new property launches. Very few developers have launched projects in the first five months of 2019. However, the scene will change from September onwards as the countdown for Expo 2020 begins."Siddiq Farid, co-founder of Smart Crowd, said transaction volumes and values were lower in 2018 compared to 2017 so, naturally, payments will be lower. Mortgages declined much less due to potentially more end-users looking to take advantage of the reduced prices.

Mortgage rates in the UAE increased last year and earlier this year in line with the Fed rate.

The central bank announced an increase in interest rates applied to its certificates of deposits, in line with the Fed's decision to increase its target Federal Funds rate, which took place four times in 2018, reaching 2.25-2.50 per cent range. Similarly, the repo rate, applicable to banks' borrowing of short-term liquidity from the central bank against their holding of certificate of deposits, has increased in line with the Fed hikes.

Farid noted that pre- and post-payment plans offered by developers may be a key driver for the high disparity between cash and mortgaged payments.

"The ability for an individual to secure a property from as low as 5 per cent is more accessible than over 30 per cent of equity and purchase costs required to obtain a mortgageWith this in mind, individuals looking to acquire a property whether off-plan, new build or secondary market with cash, pre/post payment plan or a mortgage should conduct thorough due diligence on the implications of each and how personal circumstances could be impacted," said Farid. Source: Khaleej Times Back to Index

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NEW DOWNTOWN EMERGING IN DUBAI: AREAS IN DEMAND AROUND EXPO 2020 Tuesday, May 28, 2019

As Dubai works on building different downtown neighborhoods as part of its urban planning, a new centre is emerging fast on the horizon of Dubai's property market, attracting a large number of end-users and investors due to its economical proposition for tenants and better return for investors.

Industry analysts say that areas around Expo 2020 and Al Maktoum Airport such as Dubai South, Meydan City, Mudon and Town Square etc will be the next big downtown area, as they are already seeing a faster inflow of residents. Since massive developments are taking place in terms of infrastructure and mobility, it is expected that property prices in those areas are likely to go up faster and offer a better return in the years to come, compared to areas which are already developed such as JBR, Dubai Marina, and Downtown Dubai.

As part of Expo 2020, the Roads and Transport Authority is expanding the Dubai Metro, which will connect the Expo 2020 areas with the rest of its Red and Green Lines network, making mobility even easier for the residents there. In addition, the other key reason for attraction is that these projects are backed by top-rated developers such as Emaar, Meydan and Dubai Properties.

The development of Al Maktoum International Airport and Dubai's plan to transform the Expo 2020 site into a tourist destination post-event will continue to attract a large number of visitors and residents to that area in post- Expo 2020 period.

Analysts and market players noted that residential properties near Expo 2020 site are garnering strong interest from end-users and investors due to strong rental returns, proximity to exhibition's site, and more affordable rates.

According to Bayut, the studio apartments for sale in Dubai South average at Dh385,000, while 3-bedroom villas are at Dh1 million. In Meydan City, prices are predictably higher with 3-bedroom villas going for an average of Dh3.3 million and studios averaging at Dh450,000. However, the premium amenities of the neighbourhood, which includes a golf course, equestrian centre and mall easily justify the higher price tag, Bayut said.

"We can be optimistic about the growth of areas near Expo 2020 such as Dubai South, Meydan City, Town Square and Mudon in the next few years. They are well-integrated neighbourhoods which already offer a high return on investment to investors. This could improve further when more handovers are completed and tenants have a wider portfolio of properties to choose from," said Haider Ali Khan, CEO of Bayut.

In the Legacy period of May 2021 to December 2031, the Expo site will be redeveloped to District 2020, which is expected to include tenant companies and an expanded Dubai Exhibition Centre (DEC). Over 80 per cent of the Expo-built environment is planned to be retained for District 2020, and eventually expand into a city covering more than four million square metres.

According to EY forecast, the legacy era will see Expo 2020 contributing Dh62.2 billion with main contributions coming from event orgsanisation and business services at Dh54.2 billion, retail at Dh2.5 billion and restaurants and hotels at Dh2 billion. While around 548,300 full-time equivalent jobs will be created during May 2021 to December 2031 years, which will come to around 53,800 full-time equivalent jobs.

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Fadi Nwilati, CEO, Kaizen Asset Management Services, said affordable housing is a definite trend that is prevalent in all of the Expo 2020 surrounding communities.

"Tenants also have good negotiation power in these areas, since handovers will only increase in the latter part of 2019. We have seen the success of Sustainable City in the past, and now Dubai South wants to position itself as a smart and sustainable city, allowing this area to attract a specific investor/tenant class who don't mind paying that higher price tag," said Nwilati.

He said that the core fundamentals for end-users and investors will be location, developer reputation, finance options, and payment plans.

"Expo 2020 has only increased the market sentiment for these emerging districts. Areas like Meydan, Dubai South, Mudon and Town Square have created a lot of investor/tenant interest over the past 12 months. These projects have been built by world-class developers like Emaar, Sobha, Meydan and Dubai Properties, and this only adds to the credibility of these projects," Nwilati added.

He pointed out that these communities also come with an extensive list of amenities which includes equestrian centres, golf courses, malls, and schools ensuring that they can charge that higher price tag. "These well- integrated communities have created a surge of interest in the past year, and this will only increase in the coming months."

Lewis Allsopp, CEO of Allsopp & Allsopp, believes that investors are showing more and more interest in the Dubai South development and rightly so because the price points are exceedingly attractive as a 3-bedroom townhouse in Urbana can be purchased for as little as Dh1 million.

"With the location so close to the Expo 2020 site, residents will benefit immensely from the infrastructure including metro and tram lines with easy access to top spots of the city," he said.

"Investors who are not looking for immediate return but are willing to invest for the future could see a great return on investment in the next five years. I believe Dubai South will be one of Dubai's most popular areas with it being so close to what will be one of the world's busiest airports - Dubai World Central and with the Expo 2020 site becoming a lively business hub," he added.

Lewis Allsopp disclosed that sales in Green Community have increased 10 per cent and it can be attributed to its proximity to Expo 2020, which is witnessing very fast development in terms of infrastructure.

"Tenants and end user buyers are anticipating taking advantage of the infrastructure that will come with the Expo. Green Community will become more accessible from other areas of the city due to the extended tram lines," he noted.

"Regarding tenants and end users, we are seeing an increase in the interest levels, although they are still relatively low. The reason for this is that tenants and end user buyers like to see, touch and feel a property before they show interest. Once handover begins, which should be over the next few months we expect to see the interest ramp up as viewings can take place," he concluded. Source: Khaleej Times Back to Index

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DUBAI HAS OVER 15,000 CHINESE INVESTORS, SAYS DED REPORT Wednesday, May 29, 2019

Over 18,975 Chinese investors own 5,977 active business licences in the emirate of Dubai, according to a report issued by the Business Registration & Licensing (BRL) sector in the Department of Economic Development (DED), Dubai.

Between 2014 and 2018, 2,312 licences were issued for Chinese investors, with 371 licences issued in 2014, 424 in 2015, 396 in 2016, and 503 in 2017. Last year, 618 licences were issued to Chinese investors, an increase of 22.8 per cent over the previous year. Over the past years, Dubai has welcomed 6,364 Chinese investors who have established businesses in various sectors. In 2014, there were 1254 registered Chinese investors for new commercial licenses, 1,222 in 2015, 1,154 in 2016, 1,309 in 2017 and 1325 investors in 2018.

Of these licences, 4,811 are Limited Liability Companies, in addition to 722 Sole Proprietorship, 337 Civil Companies, 68 Branches of Foreign Companies, 15 Limited Liability Companies, eight Free Zone Branches, eight Branches of Companies based in other emirates, five Government Commercial Liaison Offices, one General Partnership Company, one Public Joint-Stock Company and one Business Forum Licence.

The report showed that commercial activities accounted for 4628 licences, followed by professional activities with 1192 licences, 132 tourism licences and 25 industrial licenses. The number of female Chinese investors is 4,900, compared with 14075 male investors. Readymade Garments topped the list of the ten business activities for Chinese investors, followed by Electronics, Women's saloon, Mechanical, engineering & contracting trade, Construction, Electrical trade, Transportation, shipping & warehousing, Auto parts and Furniture. The top five commercial activities included: clothing, footwear, gifts, textile & fabrics, and handbags & leather goods. Professional activities include: women's salon, beauty center, women's health care, Hanaa Salon.

The tourism activities included: internal tour operator, tour operator, travel and tourism agent, external tour operator, and holiday rental houses, while industrial activities included metal works for buildings, office furniture, home furniture, plastic bags, and maintenance of oil and natural gas wells. Source: Khaleej Times Back to Index

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DIC TARGETS EMERGING MARKETS Tuesday, May 28, 2019

Dubai Internet City (DIC) is focusing on emerging markets such as India, China, Russia and Poland in order to attract more firms in to the technology free zone, a senior official said on Tuesday.

"We have recently visited the US and Europe. We are looking at emerging markets like India, China, Russia and Poland as all these countries have strong potential and are untapped. We went to Poland because it has a very good base of programmers. With India, there is a historical relation with us. While Russian technologies have not been adopted significantly across the world so there is a strong potential as well. Similar is the case with the China," said Ammar Al Malik, managing director, Dubai Internet City.

Malik was speaking after the inauguration of India's National Association of Software and Services Companies (Nasscom) office in the DIC. Navdeep Suri, India's Ambassador to the UAE, Dhibjani Gosh, president, Nasscom, also attended the inauguration ceremony. An agreement was signed between DIC and Nasscom during the last Gitex to allow small and medium enterprise (SMEs) from India to have presence in Dubai.

"There is an overwhelming response from the Indian SMEs to set up base here because Dubai is a gateway for the Mena region. There is a lot of potential for the smaller Indian firms to grow in the Mena region and this is the platform for them to use to grow," Malik said, adding that big Indian companies such as Tata Consultancy, Tech Mahindra and HCL already presence here in the DIC.

There are currently over 1,600 companies operating and 25,000 people working in DIC. Last year, it had announced that its community members collectively attracted Dh7.8 billion in funding since its launch.

"We don't focus too much on numbers but look into how many talented people we have here. The fundamental thing that benefits the economy is the strong presence of talented people that you have in technology sector. We have almost 25,000 people in DIC alone. We will make it around 40,000 in the next five to seven years," Malik told Khaleej Times in an interview.

Dhibjani Gosh, president of Nasscom, expects 30-40 companies from India to avail this facility and explore Dubai market for growth.

"DIC is providing us the co-working space and this opportunity will enable Nasscom's SME members to establish themselves in Dubai and get access to the largest technology community, providing them a gateway and necessary support to grow in the UAE and to the rest of the region," Gosh said after the inauguration.

Most of the Indian ICT companies use Dubai as a gateway to cater Mena region. According to India's Electronics and Computer Software Export Promotion Council (ESC), the South Asian country's exports of electronics goods to Middle Eastern countries during 2017-18 was valued at $885 million (Dh3.25 billion). The UAE was the top destination followed by Saudi Arabia.

Kamal Vachani, regional director for Middle East for ESC, said the council has been facilitating to increase India's IT exports to the Gulf and leveraging that association to get business for Indian IT companies from a multitude of large global corporations. Source: Khaleej Times Back to Index

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ENBD REIT POSTS $270M NET ASSET VALUE AND PROPOSES DIVIDEND Wednesday, May 29, 2019

ENBD Reit, the Sharia-compliant real estate investment trust managed by Emirates NBD Asset Management, said its net asset value for the year ending March 31 declined to $270 million though revenue increased.

Net asset value was down 10 per cent from the same month in 2018, according to the previous year’s results carried on the company’s website. However, rental income bucked trends across the UAE real estate sector improving by more than $5m year-on-year, a company official said in a statement on Wednesday.

“While local real estate market headwinds have put pressure on property valuations, our performance indicates that the portfolio’s rental income is resilient,” said Anthony Taylor, head of real estate at Emirates NBD Asset Management.

“This is borne out by the fact that the total property portfolio value has reduced by only 2.8 per cent [year-on- year] – outperforming market trends across real estate asset classes – with average occupancy robust at 86 per cent and rental income improving by more than $5m year-on-year.”

ENBD’s total portfolio value fell 2.8 per cent to $450m in the period. Total loans this year stood at $180m, at a loan to value ratio of 40 per cent, and average portfolio occupancy stood at 86 per cent.

The Nasdaq Dubai-listed Reit said in February it plans to expand its remit outside Dubai, targeting Abu Dhabi and the northern emirates, and investments specifically in the industrial and healthcare sectors.

“The diversity that we have established in the portfolio has been instrumental for mitigating valuation risk, which is why we are seeking further growth in our holdings, in particular for alternative assets secured with long-term lease agreements,” Mr Taylor said on Wednesday.

ENBD Reit’s board of directors proposed a final dividend of $5.4m, or 0.0215 per share – equivalent to 2 per cent of net asset value and 3.81 per cent of the share price. This is subject to approval by shareholders at the annual general meeting on June 24.

The proposed dividend is equivalent to the net rental income generated by ENBD Reit’s portfolio, “despite movements in valuation experienced during the period”, the company said.

The total dividend payable to shareholders for the year ended March 31 is $12.3m, equivalent to 4.54 per cent of the share price. An interim dividend of $6.9m ($0.0270 per share) was paid to shareholders for the six months ended September 30, 2018 Reit intends to continue paying dividends on a semi-annual basis, the statement said. Source: The National Back to Index

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ABU DHABI HOTEL REVENUES RISE TO $460M IN Q1 Saturday, Jun 01, 2019

Statistics Centre - Abu Dhabi figures show the number of hotel rooms in UAE capital has increased to more than 33,000

The number of hotels and hotel apartments increased to 169 by the end of March against 163 in the same month 2018.

Hotel revenues in Abu Dhabi increased 16.1 percent in Q1 to around AED1.7 billion ($460 million) from AED1.48 billion in the year-earlier period.

According to the Statistics Centre - Abu Dhabi (SCAD), the number of hotels and hotel apartments increased to 169 by the end of March against 163 in the same month 2018.

Hotel rooms increased 5.1 percent to 33,074 during the first three months of the year from 31,482 in Q1 2018, state news agency WAM reported.

Hotel guests increased from 1.285 million to 1.291 million during the review period, with hotel nights up from 3.422 million to 3.513 million, edging occupancy rates up from 78 percent to 79 percent by quarter-end.

Hotel guests carrying Gulf passports increased 7.2 percent to 73,000, with non-Arab Africans up 22.9 percent, Arabs 7.5 percent, while North & South American passports holders increased 16.3 percent. Source: Arabian Business Back to Index

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ABU DHABI RESIDENT BECOMES FIRST FOREIGN PROPERTY BUYER TO RECEIVE FREEHOLD TITLE DEED Thursday, May 30, 2019

The emirate enacted new property ownership rules for overseas investors last month

Abu Dhabi resident Sami Ghandour, from Palestine, with real estate agent Jessica Gane, is now a freehold owner of a six-bedroom villa on Saadiyat island. Courtesy: Henry Wiltshire International

The buyer of a six-bedroom villa on Saadiyat Island became the first foreigner to receive a freehold title deed from Abu Dhabi Municipality on Thursday, according to the real estate consultancy Henry Wiltshire International.

Long-term Abu Dhabi resident Sami Ghandour, 69, an engineer born in Jordan but originally from Palestine, was handed the document by staff at the government department after completing the purchase of his new home in the Hidd Al Saadiyat development, for which he paid Dh10.8 million including fees. Abu Dhabi Municipality did not issue a comment.

“It was a pleasure to be told it was the first freehold title deed,” Mr Ghandour told The National. “I was so happy to hear it as I've become a part of history. The freehold was a bonus for me and it confirmed the privilege that expats can get.”

Mr Ghandour with the freehold title deed for his Abu Dhabi property. Courtesy: Henry Wiltshire International

Abu Dhabi’s government made changes to real estate laws last month allowing foreigners to own freehold property in designated zones, including Saadiyat Island, to increase foreign direct investment and boost the economy. Previously, ownership was restricted to UAE and GCC nationals with foreigners only allowed to own real estate on a 99-year leasehold basis.

Andrew Covill, director of Henry Wiltshire International, the agency that brokered the deal with Mr Ghandour, said he was not expecting to receive a freehold title deed for his client when he was working with the municipality.

“At Cityscape Abu Dhabi in April they announced the fact the freehold was coming and we weren’t sure exactly when and how it was going to happen, so it was a lovely surprise when the lady confirmed it was the first freehold title deed in the emirate,” said Mr Covill.

“She was very clear about it and I asked the question three times. Sami put his arms up and said ‘yes’. We’d explained to him the other day that while the law was changing he would receive a 99-year lease and we did not know the exact mechanism of when it would change. So he bought it on the basis of getting leasehold.”

Mr Ghandour, who will relocate to the villa from his current home in Al Bateen, said he purchased the villa to allow him and his wife to qualify for one of the UAE’s new five-year retirement visas, unveiled by the Government in September. He has previously always rented properties during his 39-year residency in the emirate.

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To qualify for the retiree visa, non-Emiratis over 55 must either have an investment property worth at least Dh2 million, financial savings of Dh1m, or an active monthly income of Dh20,000 or more. The visa, set to be available from this year, is valid for five years with the “possibility” of renewal for those hoping to stay longer.

“We have lived here all our lives so we think we will die here too. I did not buy the visa because of the freehold status,” said Mr Ghandour, who still works full-time in the offshore construction business. “We knew it was coming but we bought the house because we want to retire in this country. I knew that if you invest a certain amount of money you will be entitled to residency that is renewable as long as you still qualify. So the freehold was a nice surprise on top.”

Mr Ghandour, who has previously bought a one-bedroom apartment on Al Reem Island on a leasehold basis, also owns three apartments in Dubai that his children live in.

Mr Covill said the new freehold law has given expatriate buyers in the emirate confidence in the real estate market.

“Coupled with other initiatives such as the long-term visas, the government stimulus and spending, it’s very important that the Government has made the move to give people the security and added investment value of owning the land and the property," he said.

“We’ve seen a good recovery in the Abu Dhabi market this year, which has been down for three or four years, particularly at the premium end, but we are also seeing more transactions and investors coming in at the lower end and more owner-occupiers."

While foreign investors can buy freehold property in over 15 designated investment zones in the emirate, it is unclear how the new law will affect existing real estate leaseholders.

“The big question is whether this will apply retrospectively to existing owners,” Ben Crompton, managing partner of Crompton Partners Estate Agents in Abu Dhabi, told The National last month. Source: The National Back to Index

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ABU DHABI NATIONAL HOTELS LOOKS TO GLOBAL ACQUISITIONS AND JOINT VENTURES AFTER EMAAR DEAL Monday, May 27, 2019

Abu Dhabi National Hotels, a publicly traded holding company with Dh11.4 billion worth of assets in its portfolio, is open to new acquisitions in the Middle East and beyond, following its purchase of several Dubai hotels from Emaar Properties this year, its chief executive said.

In February, ADNH bought five flagship hotels from Emaar Hospitality Group, a subsidiary of Dubai-listed real estate company Emaar Properties, for Dh2.2bn. The hotels were the Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Al Manzil Downtown, which together account for around 1,000 hotel rooms.

Abu Dhabi-listed ADNH is also eyeing joint ventures to streamline its subsidiary operations in retail and transport – along the lines of its longstanding catering and support services JV with UK-based Compass Group, created in 2001.

“Our cash position is healthy and we of course are looking at new acquisitions – though no deals are pending at present,” Khalid Anib told The National at his office in Abu Dhabi.

“Our main focus would be hotels in the UAE but if there was a compelling opportunity in the GCC, North Africa, London or elsewhere, and it would increase value to shareholders, we would consider.” ADNH would seek financing on a case-by-case basis if required, he said.

ADNH has minority stakes in hotel assets in Morocco and Egypt – both fast-growing hospitality markets and among the few Middle East and North Africa markets to have registered room rate increases in recent years. Mena hotels in general have suffered double-digit annual declines in revenues and average daily rates since 2014, as low oil prices have dented consumer purchasing power, and rising supply of hotel keys heaps downward pressure on prices.

Like other hotel firms, ADNH has sought to cut its costs in a tough market. In the past two years, it slashed the group’s headcount by around 20 per cent, according to Mr Anib – equivalent to around 150 people out of a typical 500-strong workforce at each of its hotels – reduced staff accommodation costs and launched a centralised procurement system to achieve supply chain efficiencies across the portfolio.

ADNH reported a 2.7 per cent annual net profit decline in the first quarter of 2019, accelerating its top-line growth from a 6.9 per cent profit drop in the corresponding period of 2018. The chief executive said this represented “a pretty good performance considering the challenging conditions. We anticipated a soft market [two years ago], which is why we came up with the consolidation plan, and we are very glad we did.”

The UAE hotel market is currently oversupplied, he added, which has pushed down average room rates across ADNH’s Abu Dhabi portfolio by as much as 30 per cent cumulatively over the past two years, and in Dubai by

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around 15 per cent. Occupancy rates have held up, at around 80-85 per cent for five-star resorts, and 60-65 per cent for upscale luxury properties.

The Emaar hotels are outperforming much of the rest of ADNH’s portfolio due to their prime locations, recent refurbishments and other desirable factors. “Ongoing business looks healthy and we are confident the hotels will continue to perform well,” Mr Anib said.

He expects average room rates across the UAE to stay muted until around the fourth quarter. “We will continue to monitor costs and stay innovative,” he said. This could include the formation of new JVs, particularly to manage its retail services and transport units (it has a fleet of private cars under its subsidiary Al Ghazal Transport Company, and three coffee shop brands under licence from the UK and US). While Al Ghazal’s net profit rose 60 per cent year-on-year in Q1, retail profits plummeted 45 per cent amid a sluggish market.

Another way in which ADNH aims to defend future growth is by clubbing together with local hotel owners and operators to stabilise room rates across the emirates. This could be in the form of agreements on minimum rates to reduce competition and prevent undercutting, and/or a freeze on licences to new hotel operators.

“I would look at introducing tools to stop rates from going any lower,” Mr Anib told The National. “We’d like to see this [a licensing freeze] to stop the pace of supply.” The company is in the “brainstorming” phase and has yet to put its suggestions to government officials. Source: The National Back to Index

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ABU DHABI OFFICE LANDLORDS BECOME 'INCREASINGLY FLEXIBLE' ON RENTS Thursday, May 30, 2019

Knight Frank report says greater rent free periods are among incentives being offered to secure long term leases as prime rents fall

Knight Frank said that the office market remains subdued despite Abu Dhabi’s economy returning to growth in 2018.

Office landlords in Abu Dhabi are becoming increasingly flexible on rents as values continue to decline in the UAE capital, according to real estate consultancy Knight Frank.

Greater rent free periods are among incentives being offered to secure long term leases as prime rents fell by more than 6 percent in the first quarter of 2019 compared to the same period last year.

Matthew Dadd, partner at Knight Frank Middle East, Occupier Services and Commercial Agency said, “Given current market conditions, landlords are increasingly becoming more flexible, where they are willing to offer greater rent free periods amongst other incentives to secure long term leases. Looking ahead, we believe demand will stem from government initiatives and growth in the hydrocarbon sector.”

Knight Franks said average prime rents registered at AED1,685 per sq m per year, a 6.1 percent decline when compared to the same quarter a year earlier.

It added that the decline in Grade A rents looks to have moderated in Q1 with the rents falling by 2.1 percent over the year to March.

In the first quarter of 2019, Knight Frank data also showed that 82 percent of space demanded was for floor areas below 500 square metres, up marginally from 79 percent six months earlier.

Knight Frank said that the office market remains subdued despite Abu Dhabi’s economy returning to growth in 2018, with GDP increasing by 1.9 percent, up from the 0.9 percent contraction witnessed a year earlier.

This growth has primarily been driven by the oil sector which grew by 3.4 percent, up from the 2.9 percent contraction in 2017. However, the non-oil sector’s growth has slowed marginally to 0.6 percent in 2018 from 0.9 percent in 2017. Source: Arabian Business Back to Index

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MIRAL'S $100M CLYMB SPORTS FACILITY TO OPEN IN EARLY 2020 Sunday, May 26, 2019

Developer Miral’s $100 million Clymb sports facility will open its doors to the public in early 2020 according to Miral CEO Mohammed Abdullah Al Zaabi.

Announced in 2016, the facility will include the world’s largest indoor skydiving chamber and tallest indoor, air conditioned climbing wall standing at 43 metres, offering the chance to climb four walls of varying difficulties.

In an interview with Arabian Business, Al Zaabi said that he is “very happy” with the progress of the facility’s construction, which is being undertaken by main contractor Zublin Construction.

“Our target is to open early next year,” he said.

The project was originally slated for a 2018 opening, Miral said in its original announcement.

Al Zaabi said that the complex is being designed to ensure it is connected to nearby attractions, allowing visitors to traverse between locations without having to go outside.

“It’s connected to Yas Mall and Ferrari World. It’s a convenient experience,” he said. “You won’t need to go outside in the sun. We literally spent extra money to make sure it’s connected. I could have saved money and let my customer walk outside, but the direction was to put more money to make that bridge to offer a unique experience.”

Alongside the flight chamber and climbing wall, Clymb will include retailers, food and beverage outlets and a space to host party.

Growing visitor numbers

In his remarks, Al Zaabi said that Miral hopes to achieve a 5 percent increase in visitor numbers in 2019. In 2018, Miral recorded 28 million visitors to Yas Island, a 3 percent increase from the 27 million recorded the previous year.

“I’m very happy with that number [2018’s visitors]. Warner Bros. obviously played a big factor in that,” he said. “Improving the experience and making it more accessible to customers helped us to achieve this....if we achieve 5 percent in 2019 I’d be extremely happy.”

Although Al Zaabi said he was pleased with the increasing number of attractions available in Abu Dhabi - such as the Louvre and Qasr Al Watan, he said that more work needs to be done to attract tourists to the emirate.

“We need to attract more tourists. We need to increase the market size [rather than] focus on market share,” he said. “The second thing is to increase their length of stay in Abu Dhabi and specifically in Abu Dhabi.” Source: Arabian Business Back to Index

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CHINESE FIRM TO INVEST DH36.7B IN KIZAD Sunday, May 26, 2019

Chinese manufacturing giant East Hope Group is working with Khalifa Industrial Zone Abu Dhabi (Kizad) on the feasibility of setting up a development worth more than $10 billion (Dh36.7 billion) at Abu Dhabi's industrial hub.

Under this agreement, the two entities are looking into a possible 15-year, three-phase plan to develop 7.6 sqkm of land at Kizad.

The agreement was signed by Samir Chaturvedi, CEO of Kizad, and Meng Changjun, president of Investments at East Hope Group, in the presence of Rashed Matar Alsiri Alqemzi, Consul-General at the UAE Consulate-General in Shanghai, and Yongxing Liu, chairman of East Hope Group.

In phase one of the proposed project, East Hope would develop an alumina facility, while the second phase would include a red mud research centre and recycling project. The final phase of the project would see large-scale upstream and downstream non-ferrous metal processing facilities.

As part of the agreement, Kizad would support East Hope Group across all areas as it investigates setting up in Abu Dhabi, including ensuring the best utility prices, acquiring the land, creating a masterplan and handling the import of raw materials through Khalifa Port and storage. The agreement also includes exploring options for the sustainable generation of energy and a sustainability programme to preserve the environment, including the research centre.

"The powerful combination of Abu Dhabi's strategic location, Kizad's logistic efficiencies and the connectivity offered by Khalifa Port, the flagship port of Abu Dhabi Ports and one of the region's biggest maritime hubs, continues to be a powerful magnet for Chinese investments in Abu Dhabi," said Chaturvedi.

"I am looking forward to integrating our advanced production capacity in the heavy industry with the UAE's advantages, setting up the strictest environmental standards to establish this new project, facilitating the UAE's sustainability ambitions. This project will become the benchmarking project along the Belt and Road Initiative between the UAE and China," Liu said.

Meanwhile, the China-UAE Industrial Capacity Cooperation Demonstration Zone, which was established in conjunction with Jiangsu Overseas Cooperation Investment, has already attracted the interest of 19 Chinese firms since it was set up last year. Source: Khaleej Times Back to Index

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DUBAI'S EMAAR INKS DEAL TO DEVELOP MEGA PROJECT IN BEIJING Thursday, May 30, 2019

Emaar to partner Beijing New Aeropolis Holdings to develop mixed-used project at Beijing Daxing International Airport

The project will be located within the Aero-Economic Area of Beijing Daxing International Airport, which is set to be the largest airport in the world.

Dubai-based developer Emaar on Thursday signed a memorandum of understanding (MoU) with Beijing New Aeropolis Holdings (BNA) to jointly develop a business and tourism complex.

At a ceremony held at the China National International Convention Centre, Emaar signed up for the project which will integrate retail, entertainment, office, hotel hospitality, convention, sport, art and lifestyle functions in a one- stop solution.

The project will be located within the Aero-Economic Area of Beijing Daxing International Airport, which is set to be the largest airport in the world, a statement said, without giving further details.

Emaar and BNA said they will work closely to drive "diversified collaboration and actively accelerate the share of resources to boost the establishment of the important Aero-Economic Area".

Emaar has a land bank of 1.6 billion square feet in the UAE and key international markets.

In addition to Downtown Dubai, home to Burj Khalifa and The Dubai Mall, Emaar has built many landmark projects in the Middle East, North Africa, the United States, Europe and South Asia.

The group said it also plays an important role in driving China-UAE strategic partnership, and is actively exploring the Chinese market as part of the Belt Road Initiative. Source: Arabian Business Back to Index

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DUBAI'S COVE BEACH EYES US, EUROPEAN EXPANSION OVER NEXT 2-3 YEARS Wednesday, May 29, 2019

Beach club brand is currently hosting a pop-up in Vegas' Caesar's Palace and plans to open branches in California and Miami, says Adel E. Ghazzawi

Ghazzawi, however, will not be setting up in seasonal markets such as Ibiza or Saint Tropez, he said, but is eyeing sustainable destinations.

Dubai beach lounge and nightlife brand Cove Beach is in talks to expand to the US and Europe, according to the co-founder of operating company Livit Hospitality Management.

Speaking to Arabian Business, Adel E. Ghazzawi said the company will expand over the next two to three years.

“We’re in advanced discussions in California and Europe. We’re trying to be surprising about them. They will happen pretty fast. We’re also in advanced discussions around an opportunity in Miami,” he said.

“We’re definitely expanding to Europe and a couple of other places that are pretty interesting, all within next 24- 36 months.”

Ghazzawi, however, will not be setting up in seasonal markets such as Ibiza or Saint Tropez, he said, but is eyeing sustainable destinations.

“I’m not in a seasonal business. Ibiza, Saint Tropez markets are very seasonal, [where] the whole city shuts down then you’re done until next season; that goes against the model of me wanting to own an ongoing business that is sustainable,” Ghazzawi said.

“I’m not interested in none of those markets. I’m interested in markets like Marbella, other places in Spain, Italy. I’m not looking at… little islands like Mykonos. I’m interested in Greece but not your mainstream [islands]. You could go on a boat from Mykonos, 20 minutes across, and you find an incredible place with nothing going on, but a lot of people,” he added.

Cove Beach is currently hosting a pop-up in Vegas’ Caesar’s Palace at Venus Pool & Lounge until the first week of September.

“Our goal has always been to go outside,” Ghazzawi said of the takeover.

“We’re negotiating other deals right now. Caesar’s Palace see our numbers and footfall and so they came to me one day and said, ‘Would you be interested in doing something in Vegas?’

"It’s so crazy, because everyone in Dubai is so excited about having a little piece of Vegas in Dubai through Caesar’s Palace and I know for a fact that everyone in Vegas would be as excited to have a small piece of Dubai in Vegas,” he said. Source: Arabian Business Back to Index

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DUBAI -BACKED SMARTCITY KOCHI EYES $575M IN NEW FUNDS Tuesday, May 28, 2019

Joint venture of Dubai Holding and the Government of Kerala says it will raise an additional $575m from potential investors

SmartCity Kochi is a joint venture company of Dubai Holding and the Government of Kerala.

SmartCity Kochi, a joint venture company of Dubai Holding and the Government of Kerala, said on Tuesday it would raise an additional $575 million from potential investors for its phase III, IV and V development.

The company said it would activate infrastructure ready residential plots and complete the balance infrastructure development in its township side before approaching potential investors for the proposed fund raising.

“The Phase III will witness residential, sports and recreation facilities and mixed-use developments. Phase IV and V planning is underway where we would invest an estimated $30 million to complete the remaining infrastructure to activate 45 acres of additional plots that could be offered to the investors for residential and social infrastructure projects,” said Manoj Nair, CEO, SmartCity Kochi, said in a stement issued on Tuesday.

Gulf-based leading business groups like Lulu Group International and GEMS Modern Academy, besides other major Indian and overseas groups such as Prestige Group, Maratt Group, Holiday Group and Schulte Group are the co-developers which have already signed up to create IT business infrastructure projects in SmartCity Kochi, according to the comany statement.

“With these three phases opening up, and subject to timely clearances and approval from the Government of Kerala, we would create further investment opportunities of $575 million to promote developments in the township side of SmartCity Kochi,” Nair said.

The proposed development entails residential project in an area covering 15.5 acres of land on a freehold basis, with an investment of approximately $173 million,” he added.

Construction work on the residential project is likely to commence during the last quarter of 2019. Work on remaining infrastructure development will be taken up in the last quarter of 2020.

Nair said the master plan of SmartCity Kochi has been updated and environmental study for the expansion is underway.

As per the framework agreement with the Kerala Government, the base investment in SmartCity Kochi was estimated to be $244 million. The JV project has already exceeded this projection to reach a total investment to the tune of $373 million so far, the company said.

“In terms of development of IT business infrastructure, further investments to the tune of $316 million could be attracted. The full build out investment potential of SmartCity Kochi is estimated to be $1.3 billion,” Nair said. Source: Arabian Business Back to Index

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

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

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