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The rates are tentative and are subjected to change. Media Facts Size : W: 20.5 cm X H: 27.5 cm For all inquiries, kindly contact: Date of publication : 1st of each month Pan Asian Media MFZ LLC Circulation : 20,000 per month P.O. Box 39865, Dubai, UAE Material deadline : 20th of every month Tel : +9714 2281021 Subscription : Dh250 per year Fax : +9714 2281051 Distribution : Through subscription and retail sales E-mail : [email protected] Availability : Major newspaper and magazine : [email protected] stands, retail outlets, books and station- Website : www.gulfpropertyme.com ary shops, duty free outlets, etc EDITORIAL 40 COVERSTORY CONTENTS

INTERVIEW The Godfather of Advertising Reforms to help small talks about his projects 50 MEGAPROJECT Danube launches and sells out businesses survive new megaproject Lawnz 56 KEF and Katerra merges to Latest reforms in removing employee bank create $3.7 bn company 60 guarantee, ease in visa, 100% foreign investment and a 10-year residency could EXECUTIVEOPINION 74 INDIAHOME help investors and companies to bounce Christine Lagarde/IMF 30 back and help the overall economy Misuhiro Furusawa/IMF 31 Tao Zhang/IMF 32 Sailesh Jatania/Gemini 34 Dhiren Gupta/Mortgage 4C 35 he sweeping reforms announced by the UAE federal government including granting 100 percent FOCALPOINT foreign ownership to foreign investors, a 10-year Recent reforms to help UAE residency to investors, professionals in addition to economy to grow 36 the removal of the Dh3,000 bank guarantee replacing it with a Dh60 health insurance will go a long way in COVERSTORY supporting the struggling small companies to recover from RAKEZ boosts investment into theT current economic situation. Ras Al Khaimah 40

In Dubai, the trade licensing authorities are waiving fines INVESTMENT and reducing fees while allowing companies to pay for the Shurooq boosts Sharjah GDP trade license renewals in 12 monthly installments. Abu 50 INTERVIEW with Dh7.6 bn investment 64 Dhabi Government is injecting Dh50 billion to stimulate the Fidu gets Dh380m Chinese economy. investment in to Dubai 70

How it helps the real estate market – is to be seen. How- INDIAHOME ever, the resurgence of oil price is comforting. Although it Omkar current project portfolio pushes up the gasoline price and thus contributes to infla- exceeds $6 billion 74 tion, but the higher oil price means higher government revenues that will be invested in infrastructure and housing. REGULARFEATURES Realty Bytes 10 The good news is that property prices are at rock-bottom Spotlight 78 and developers are going the extra mile to help property buyers. There is a growing number of ready-to-move-in GULF PROPERTY LICENCE homes in Dubai and the buyers could choose homes ac- The region’s premier Licenced by RAK Media City, cording to their budget. monthly for lifestyle, real authorised by the National estate, construction and Media Council. Gulf Property is building materials Most developers are luckily focussing on the affordable a publication of Pan Asian homes and they are getting snapped up by the property Media MFZ-LLC buyers and investors. The latest project launch, Lawnz, by EDITORIAL Danube is a case in point that witnessed the sell out of 76 EDITOR EDITORIAL AND percent of the Phase I in three days. T. Akhtar [email protected] COMMERCIAL ADDRESS It offers studios from Dh290,000, one-bedroom apart- Pan Asian Media MFZ-LLC STAFF WRITER P.O. Box No.: 39865. ment from Dh499,000 and two-bedroom apartment for Dubai, UAE Dh699,000! The success of Danube’s latest project proves Shayaree Islam [email protected] Tel : (9714) 2281021 that there is no shortage of buyers for the right properties Fax : (9714) 2281051 at the right location at the right price and that comes with EDITORIAL COORDINATOR E-mail the right payment plan. Zeba Malik [email protected] [email protected] Web www.gulfpropertyme.com – T. Akhtar PUBLISHER T. Akhtar CIRCULATION Pan Asian Media MFZ LLC 20,000 copies

Gulf Property 09 REALTYBYTES

he health of the UAE’s non-oil private sector improved at the fastest rate in four months in May, according to Emirates NBD UAEUAE non-oilnon-oil growthgrowth UAE Purchasing Managers’ TIndex (PMI) – a composite indicator designed to give an accurate overview of operat- 4-monthin4-month early-2012,” it said. high:high:the headlinePMIPMI index shows ing conditions in the non-oil Reflecting sharp growth in strength in activity, profit mar- private sector economy. client demand, new project gins remain under pressure.” The headline seasonally wins and developments sur- On the price front, firms re- adjusted Emirates NBD UAE rounding Expo 2020, positive ported a reduced level of PMI rose to 56.5 in May, from sentiment in the non-oil pri- input cost inflation in May. 55.1 in April. The figure was vate sector reached its high- Softer staff cost and pur- indicative of a sharp im- est for at least six years. 56.5 chase price inflation con- provement in business con- Reflecting a strong level of tributed to only a modest ditions across the non-oil business confidence along- UAE increase in operating costs. private sector, and one that side rising output require- Promotional activity was re- was above the long-run aver- ments, firms hired additional Purchasing ported in the most recent sur- age. The PMI has registered staff at the fastest pace in vey, as reflected by a solid in growth territory continu- four months. That said, the Managers’ drop in output charges. ously since September 2009. rate of growth was only slight May data signalled a con- “Sharper growth in both overall and below the long- Index reached tinuation of rising backlogs of output and new orders were run average. Some firms that work in the non-oil private the key drivers behind the reported falling employment in May 2018 sector. The current phase of latest expansion. Further- levels linked this to cost opti- build-up was extended to 17 more, new export business misation. months. Firms linked higher reached a 30-month high The survey, sponsored by levels of work outstanding to alongside reports of stronger Emirates NBD and produced strong inflows of new busi- Emirates NBD, said: “The demand from neighbouring by IHS Markit, contains origi- ness. strong PMI reading in May GCC countries. Responding nal data collected from a Stocks of input goods rose to robust market conditions, monthly survey of business was partly due to a rebound in the May’s survey. Accord- new project wins and strong conditions in the UAE non-oil in export orders - reflecting ing to anecdotal evidence, growth impetus, firms re- private sector. improved external demand companies acquired addi- ported the highest degree of Commenting on the UAE conditions - as well as signif- tional stockpiles of goods in confidence towards the year PMI® survey, Khatija Haque, icant price discounting do- anticipation of rising output ahead since this index began Head of MENA Research at mestically. As a result, while requirements. g

10 Gulf Property REALTYBYTES DubaiDubai privateprivate sectorsector UAE Central Bank freezes bank fees growthgrowth 13-mths13-mths highhigh he UAE Central Bank has announced imposing caps on the maximum service fees and charges, to protect the consumers from pay- ingT excessive fees and service charges. It also in- structed banks and finance companies to display the new fee caps on their websites. “The UAE Central Bank (CBUAE) announces that it has published an Amendment to ‘Annexure 2’ of the Regulations Re- Dubai’s non-oil growth is 13-months high, says Emirates NBD Economy Tracker garding Bank Loans & Services Offered to Indi- vidual Customers (2011). ubai’s non-oil pri- tourism (57.3). At 54.6, down month.” This Amendment sets out vate sector showed marginally from 54.9 in April, Output across Dubai’s non- the new maximum limits or a sharp and acceler- construction was the only oil private sector increased at ‘fee caps’ for fees or com- ated improvement in sector to record softer growth the fastest pace in 40 months missions charged on retail health, according to in May. during May. Business activity customer service. The fee the latest survey data com- A reading of below 50.0 in- has risen continuously on a caps apply to banking piled by Emirates NBD – the dicates that the non-oil pri- monthly basis since March consumer related charges Dcountry’s largest lender. vate sector economy is 2016. According to anecdotal for example, home loans “Output and new orders generally declining; above evidence, a sharp expansion and late fees for credit both expanded at the 50.0, that it is generally ex- in new order books which in cards,” a UAE Central strongest rates since early panding. A reading of 50.0 turn was linked to promo- Bank statement said. 2015, with increases in the signals no change. tional activities and strong “If consumers notice in- travel and tourism and The survey covers the client demand, led to rising cidents of non-compliance wholesale and retail sectors Dubai non-oil private sector output requirements in the they are urged to notify the key drivers of May’s improve- economy, with additional sec- sector. Central Bank immediately. ment. Reflective of strong tor data published for travel Despite steep increases in “This amendment business conditions in the and tourism, wholesale and activity and new work, firms comes as CBUAE is un- sector, positive sentiment retail and construction. hired additional staff at only a dertaking more supervi- was at its highest since the Khatija Haque, Head of fractional pace in May. Many sion of the banking sector series began in April 2012,” it MENA Research at Emirates respondents indicated that with consumer protection said. NBD, said: “The sharp rise in employment growth was re- principles - competition in- The seasonally adjusted the Dubai Economy Tracker stricted due to efforts to con- hibiting, usury, notary Emirates NBD Dubai Econ- index supports our view that tain costs. function, and strategic re- omy Tracker Index scored growth in Dubai will be faster Continuing the current lated principles. Further- 57.6, up from 53.9 in April. this year relative to 2017, but phase of growth that began more, banks must have The latest figure signalled a the headline reading masks in March 2016, latest data the appropriate product sharp improvement that was the squeeze on profit mar- signalled a further improve- approval processes in the strongest recorded since gins which is also evident in ment in new order books. place for all products.” April 2017. the survey data. Firms, par- Furthermore, the rate of Fee caps are being used Wholesale and retail led ticularly in the wholesale and growth accelerated to a 39- as a tool to protect con- the upturn on a sector basis, retail sector, cut prices ag- month high amid successful sumers from unfair prac- with an index reading of 58.3, gressively to boost their out- promotional activities and ro- tices. g closely followed by travel and put and new orders last bust demand conditions. g

Gulf Property 11 @

REALTYBYTES

DED issues 1,689 new DubaiDubai easeseases feefee licenses he Department of Economic Depart- ment (DED) issued 1,689 new licenses && finefine paymentpayment and completed 26,184 transactions relating to business registra- tionT and licensing in the emirate during the month of May 2018. Renewal of existing licenses accounted for the largest share of the total transactions as their num- bers reached 12,618, according to data recorded on the ‘Business Map’ digital platform the Business Registration and Licensing (BRL) sector in DED. The Business Map showed that 2,954 of the transactions during the ubai Government’s tablishments in Dubai from all nance and a number of local last month were related to trade licensing body fines imposed on them and banks. Trade Name Reservation, – the Department of granted them time till end of Mohammed Al Shehhi, 2,083 to Initial Approvals, Economic Develop- 2018 to renew their licenses.” Deputy CEO, Corporate Sup- and 3,013 to Commercial ment (DED) – said, The move comes after Abu port Services sector in DED, Permits. There were also it has exempted companies Dhabi and Dubai govern- said: "The DED is committed 5,122 Auto Renewal trans- and business establishments ments have announced a to enhancing competitive- actions, 97 related to In- inD Dubai from all fines im- number of stimulus packages ness in Dubai through ex- stant License, and 119 posed on them and granted to create employment and tending value added facilities e-Trader license transac- them time till end of 2018 to sustain businesses. How- that help business owners tions as the emirate con- renew their licenses. ever, in Dubai, the announce- continue their activity and tinued to attract investors “The DED launched a ments are more on the lines sustain their business. Elimi- with its strong credentials package to make it further of offering leniency in paying nating all obstacles faced by as a regional and global easier for businesses to clear fines or reducing fines and companies is important to business hub. fines and renew their li- fees – in order to help strug- developing the economy and The outsourced service censes. The package will gling companies continue creating a competitive envi- centres, a growing net- allow businesses to pay their their business activities amid ronment conducive to invest- work providing competitive fees and fines in easy instal- declining demand and busi- ment in Dubai." services to customers, ac- ments, freeze their trade li- ness activities. Investors can apply for the counted for 77.6 percent cense for a year and seek an The move comes a few fees not to be paid and avoid or 18,446 of the total amicable settlement with months after the government fines in case they wish to transactions completed DED on commercial viola- raised fees and introducing a temporarily freeze doing during May 2018. tions,” it said in a statement. 5 percent value-added-tax business while retaining their The top ten nationalities “The service package is (VAT). The new package al- license. The waiver applies to among customers were part of enabling businesses lows for the payment of li- fines issued before Indians, Pakistanis, Egyp- to overcome obstacles and cense renewal fees and 14/04/2018 and for fines is- tians, followed by Chi- benefit from a credit facility accumulated fines through sued after this date license nese, Jordanians, British, that would allow them to instalments in 12 months. holders can take advantage Bangladeshis, Saudis, maintain competitiveness. DED is extending the facility of the offer of amicable settle- Syrians and Lebanese in DED had recently exempted in co-operation with its strate- ment and payment in instal- that order. g companies and business es- gic partner aafaq Islamic Fi- ments. g

12 Gulf Property UAE’s openness and business-friendly environment will continue to attract investment REALTYBYTES

decline is in stark contrast to other macroeconomic vari- ables, which saw substantial improvement in 2017. “Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries,” UNCTAD Secre- tary-General Mukhisa Kituyi said. “Investment in productive assets will be needed to achieve sustainable development in the poorest countries.” The global fall was caused in part by a 22 percent decrease in the value of merg- ers and acquisitions. But even discounting the large one-off deals and corporate UAE tops MENA FDI reconfigurations that inflated FDI in 2016, the 2017 decline remained significant. The value of announced greenfield investment – an listhe UAE, with with $10.35billion investment bn in down- list with $10.35 bn indicator of future trends – US$10.35 billion for- stream petrochemical sector also fell by 14 percent, to eign direct investment by Abu Dhabi – will help new $720 billion. (FDI) inflow, remained industries to develop in the “Prospects for 2018 are the top investment UAE and help attract more therefore muted. Global destination in the Middle foreign investment coming in flows are forecast to increase East, according to the annual $1.43 the country. This is one ex- marginally but remain well WorldT Investment Report trillion ample. below the average over the 2018, published by United “Besides, the UAE’s early past 10 years. An escalation Nations Council on Trade foreign direct adoption of the Fourth Indus- and broadening of trade ten- and Development (UNC- trial Revolution or Industries sions could negatively affect TAD). UAE’s total FDI stock investment 4.0, it will attract more invest- investment in global value rose to $129.93 billion in ment in futuristic industries chains. Tax reforms in the 2017, up from $119.58 in recorded in such as artificial intelligence United States are likely to 2016. In 2017, UAE investors and robotics, cyber-security, significantly affect global in- invested $13.95 billion in 2017 internet of things, bio-tech- vestment patterns,” the re- other countries – higher than nology, big data, etc. These port said. the investment attracted by factors as well as a higher re- The negative FDI trend is ment due to is openness and the country – thus making it a turn on investment and the caused by a decrease in a more investment-friendly net capital exporting country investors’ ability to move cap- rates of return. The global environment,” a Dubai-based in the region. ital freely in and out of the average return on foreign in- Compared to the UAE, its business analyst, requesting country easily, will continue to vestment is now at 6.7 per- regional peers performed the anonymity, said. attract investment to the cent, down from 8.1 percent worst in attracting FDI. Saudi “In the coming years, global UAE.” in 2012. FDI remains the Arabia attracted only $1.42 investors will find the UAE a However, the UAE’s im- largest external source of fi- billion while Qatar attracted a much safer haven to invest pressive record comes at the nance for developing dismal $986 million – less due to the economic opportu- backdrop of a 23 percent de- economies. It makes up 39 than the $1 billion mark. nities being created for for- cline in global FDI flows in percent of total finance in “In a world where deglobal- eign investors, in addition to 2017, to $1.43 trillion from developing economies. It isation and protectionism is maintaining an investment- $1.87 trillion in 2016, accord- now accounts for less than a gaining momentum, the UAE friendly environment. The an- ing to UNCTAD’s World In- quarter in the least devel- will continue to attract invest- nouncement of the Dh165 vestment Report 2018. The oped countries. g

Gulf Property 13 REALTYBYTES Palm Pointe Wade Adams gets fountain costs Dh66m akheel has Dh447m Nakheel job signed a contract The Deira Islands bridges are crucial infrastructure projects for the new islands worth Dh66 million for a spectac- u l a r , choreographed fountain at The Pointe, its new, NDh800 million waterfront dining and entertainment destination on Dubai’s world-famous Palm Jumeirah. The developer has appointed one of China’s largest fountain special- ists, Beijing Water Design, to deliver and operate the fountain, which will cover a 12,000 square metre area of water at the tip of the island, across the bay from Atlantis The Palm. ubai government- way.” Operated by Nakheel owned master de- Nakheel, developer of the Malls, the retail arm of veloper Nakheel palm-shaped islands off the Nakheel, The Pointe fea- has awarded a con- coast of the Arabian Gulf, tures nearly 70 restau- tract worth Dh447 has created a number of rants, shops and million for the construction of master developments that attractions, with F&B mak- a 12-lane bridge connecting 25,000 helped re-shape Dubai’s sky- ing up some 70 per cent of Dthe Dubai mainland with line, including Palm the concepts on offer. Deira Islands. No of units in Jumeirah, The World, Deira There is also a cinema, The 600 metre bridge, Islands, Jumeirah Islands, children’s play area, su- being constructed by Wade Nakheel Jumeirah Village, Jumeirah permarket, gyms and Adams Contracting under Park, Jumeirah Heights, The beauty salons. the supervision of the Roads pipeline Gardens, Discovery Gar- Located five kilometres and Transport Authority dens, Al Furjan, Warsan Vil- out to sea, The Pointe en- (RTA), will provide the main lage, Dragon City, joys cool sea breezes and access route to the new, 15.3 ment, and a key contributor International City, Jebel Ali stunning views. Its 1.5 square kilometre waterfront to the Government of Dubai’s Gardens and Nad Al Sheba. kilometre promenade is a city. Work began in May, and tourism vision. The project Together, these span more destination in itself for res- is scheduled for completion will add 40 kilometres of new than 15,000 hectares and idents and tourists to un- in the second quarter of coastline to Dubai, house currently provide homes for wind at one of Dubai’s 2020. The bridge starts at Al 250,000 residents and create over 270,000 people. most iconic locations, or Khaleej Road on the main- 80,000 new jobs. Nakheel has around 25,000 snap the perfect holiday land and leads to Deira Is- Nakheel Chairman Ali residential units under con- pictures against a stun- lands A, where several new Rashid Lootah said: “We struction or in the pipeline. ning backdrop. Nakheel developments, in- thank the RTA for its ongoing The company’s growing The Pointe has a car cluding Deira Islands Night assistance and co-operation hospitality project portfolio park for 1,600 vehicles, Souk, Deira Mall and RIU for our transport links at comprises 18 hotels and and will have a monorail and Centara resorts are cur- Deira Islands, where we serviced apartment develop- station. There are also rently under construction. have now invested more ments with over 6,500 rooms plans for boat access from Deira Islands will be a than AED8.5 billion in infra- and hotel apartments be- Palm Jumeirah’s hotels world-class hub for tourism, structure and construction tween them at various loca- and resorts. g leisure, retail and entertain- contracts, with more on the tions in Dubai. g

14 Gulf Property REALTYBYTES

work to involve a fixed location and a 9-5 schedule. But 60%60% ofof UAEUAE staffsstaffs an unprecedented number of businesses are now adopting a very different working model, which pro- duces benefits for them and work elsewhere their workers. workFlexible working helps companies elsewhere retain top talents, survey reveals The IWG survey found that flexible working not only reduces commuting time, but enhances productivity, staff retention, job satisfaction and even creativity. This is in addition to the financial and strategic advantages that it brings for businesses. The move to flexible workspaces reflects the changing demands and expectations of the workforce. About 84 percent of those surveyed in the UAE agree that flexible working helps them retain top talent whilst 65% are now offering this to help them recruit. Al- most half (44%) agreed that ore than half of in a particular office. We are offering flexible working im- UAE employees entering the era of the mobile proves job satisfaction, work remotely workforce and it is hugely ex- demonstrating the need for every week, and citing. Not just for individual businesses to provide work- over 50 percent employees, but for busi- ing environments suited to do so for at least half of the nesses too. This is a huge today’s employees to main- week, heralding a major re- 18,00018,000 shift in the workspace land- tain a first-class workforce. assessmentM of corporate real peoplepeople werewere scape globally, and busi- The benefits UAE busi- estate, according to new nesses are now looking nesses are experiencing are study by International Work- surveyedsurveyed inin closely at what this means for clear: a resounding 86% place Group (IWG), the par- their corporate real estate said that flexible work- ent group of leading 9696 countriescountries portfolios.” spaces enable employees workspace companies in- The study by IWG also to be more productive while cluding Regus. found that UAE businesses on the move. The survey The UAE study was part of flected a similar trend in the recognised that offering flexi- showed also that flexible a comprehensive global workforce with every week 70 ble working strategies to their working and the use of study based on the insights percent of employees are employees provided them shared workspaces are no of over 18,000 business peo- working at least one day a with significant benefits: Busi- longer the preserve of start- ple across 96 companies. It week somewhere other than ness growth (91% - 2% ups. Over 18,000 profes- found that every week 60 the office. According to the above the global average), sionals from a range of percent of the UAE employ- study, the emergence of this Competitiveness (97% - 10% different industries in 96 ees are working at least one mobile workforce has been above the global average), countries were surveyed in day a week somewhere other driven by technological productivity (85% - 3% above the IWG Flexible Working than the office. More than half change, globalisation and the global average), attract- Survey. The sample is (52%) work remotely for half changes in employee expec- ing and retaining top talent drawn from an IWG global of the week or more, whilst tations. (84% - 4% above the global contacts database of over one in 10 (10%) people work Mark Dixon, founder and average), profit maximisation 2.1 million senior business- outside of their company’s CEO of IWG, said: “People (91% - 8% above the global people, managers or busi- main office location five times from Seattle to Singapore, average) ness owners, worldwide. a week. London to Lagos no longer For generations, the world IWG is leading the work- Globally, the results re- need to spend so much time has understood office-based space revolution. g

Gulf Property 15 REALTYBYTES Bloom ends AddressAddress DowntownDowntown enabling works opensopens afterafter NYENYE firefire loom Properties, a Bloom Holding business special- izing in the development of integrated and sustainable communities, announced Bthe completion of enabling works at Bloom Towers, a residential development located in Jumeirah Vil- lage Circle (JVC) in Dubai. National Piling, a leading contracting company with long-standing experience in general construction and civil engineering, exe- cuted the project that is scheduled for completion in Q4 2020. early two and a half Towering high at 302 me- Launched at Cityscape years after a devas- tres in 63 levels, Address Abu Dhabi 2017, Bloom tating fire that en- Downtown is one of the Towers, once complete, gulfed Address world’s foremost references will include three inde- Downtown hotel at for luxury hospitality, only 15 pendent high-rise build- Downtown Dubai district next Dh1.22 minutes from the Dubai Inter- ings comprising a total of to Dubai Mall and close to billion was the national Airport. The hotel is 944 units built over a four- NBurj Khalifa, on December also near the city’s business level podium. Two towers 31, 2015, it re-opened after a hubs such as the Dubai Inter- are allocated for sale, fea- massive refurbishment with a fire insurance national Financial Centre and turing 689 contemporary Dh1.22 billion insurance set- claim by Emaar the Dubai International Con- studios and one-bedroom tlement with Arab Orient In- vention Centre. apartments boasting a surance last year. Properties The 220 rooms and suites timeless and elegant de- The fire at the 63-storey of Address Downtown are sign and quality finishes. tower, which has been closed equipped with high-speed Targeting the mid-mar- much-loved destination, pop- since, was caused by an ular among visitors from wireless Internet, interactive ket housing segment, electrical short circuit on a across the world,” Emaar TVs, room automation and Bloom Towers attracted spotlight, according to the po- Properties said in a state- an entertainment interface. high investor uptake fol- lice. The hotel was expected ment. Olivier Harnisch, Chief Ex- lowing its launch due to its to re¬open in the middle of “Address Downtown has ecutive Officer of Emaar Hos- accessible location and this year after Emaar hired opened with several innova- pitality Group, said: “Address excellent potential for Dubai-based Dutco Group as tive features including new Downtown holds a very spe- rental and capital value the contractor to undertake restaurant concepts, addi- cial place in the hearts of all growth. Ideally located on restoration work on the hotel tional rooms and suites, The discerning travellers and Al Khail Road within a in what it said would be Spa at Address Downtown, guests. Defined by its central short commute from “record time”. and a brand-new interior de- location overlooking Burj Dubai’s major business “Address Downtown, the sign. With 220 guest rooms Khalifa, the hotel has consis- hubs and free zones, the flagship hotel under Emaar and suites, several of them tently secured the world’s development will provide a Hospitality Group’s premium opening to spectacular views leading tourism and hospital- complete range of facilities lifestyle Address Hotels + Re- of the iconic Burj Khalifa and ity awards. The hotel will con- to help residents achieve sorts brand, has opened its The Dubai Fountain, Address tinue to uphold its distinctive a perfect work-life bal- doors to hotel guests, mark- Downtown will add additional positioning of ‘where life hap- ance. g ing the arrival of Dubai’s features in the coming days.” pens’.” g

16 Gulf Property REALTYBYTES Aldar delivers sors, motion sensors and smart home assistants. West Yas features attrac- Dh3.2 b West Yas tive amenities and facilities West Yas Community will soon become vibrant with residents for its community, including a mosque for 2,000 wor- shippers, two schools, a retail centre, sports facilities, a petrol station, and extensive landscaping and greenery in its open public spaces, which overlook the man- groves surrounding Yas Is- land. Client inspections, snag- ging and disinfecting of villas is well under way, and the garden plots will feature sweet soil instead of sand, to enable home owners to start grassing their lawns and put in their own plants. As at the end of Q1 this year, West Yas was 80 percent sold, which equates to 801 villas, with a sales value of Dh3.66 billion. Those in- terested in West Yas can dar Properties said, it earlier in the year. West Yas visit Aldar’s sales centre on will start delivery of is a key component of Yas Is- Yas Island. villas within its West land, offering a full range of Aldar Properties is the Yas community in community amenities for res- leading real estate devel- June 2018. The han- idents of all nationalities. The oper in Abu Dhabi with $10 dover process will be under- delivery of these prime villas billion in assets, a 75 million taken in phases, the first of $10$10 bnbn reinforces our reputation for square metres land bank, Awhich incorporates 300 villas, valuevalue ofof AldarAldar delivering high quality homes and through its iconic devel- and continue throughout the in desirable locations and we opments, it is one of the remainder of 2018. Properties’Properties’ look forward to continuing most well known in the Launched in September Yas Island’s success story as UAE, and wider Middle East 2015, the Dh3.2 billion West totaltotal assetsassets Abu Dhabi’s most exciting region. From its beginnings Yas community consists of destination.” in 2005 through to today, 1,014 four and five bedrooms As part of the handover Aldar continues to shape villas, ranging from 488 to non-gated community, there process, Aldar is offering cus- and enhance the urban fab- 580 square metres. Homes are no service fees payable tomers the opportunity to in- ric of the UAE’s Capital City are still available for pur- by villa owners. corporate a number of smart in addition to other key chase within West Yas with Maan Farid Al Awlaqi, Ex- technology options into their areas of the Emirate. prices starting from Dh4.8 ecutive Director – Commer- homes which focus on safety Aldar develops innovative million. Its location on the cial, at Aldar Properties, said: and security, cost saving, projects, such as the inter- iconic Yas Island offers resi- “We are proud to start the sustainability and lifestyle nationally recognized HQ dents waterfront views, an handover of West Yas to cus- and convenience. Solutions building situated in the Al abundance of green open tomers, which marks the ex- being offered include smart Raha Beach development, spaces, and close proximity pansion of the residential lighting and thermostats, the Gate Towers in Shams to Yas Mall and the island’s population on Yas Island and smart locks, fire alarm sys- Abu Dhabi on Al Reem Is- other leisure facilities, builds on the handover of tems, security cameras, land, in addition to Yas Is- beaches and hotels. As a apartment community Ansam smart door and window sen- land’s F1 circuit. g

Gulf Property 17 REALTYBYTES Wasl leases IREIS 2018 to offer out Block 1 at Wasl District the best properties in 1 week Exhibitions such as IREIS help property developers to market properties asl Proper- ties, a sub- sidiary of Wasl Asset Management Group, has announced the official release of ‘BlockW A’ — phase two of Wasl District into the market, after leasing out 166 units of the first phase in a record one week that was delivered in December 2017. The company’s mission is to maintain the city’s rich history and strives to cater to its customers’ needs by delivering on their percep- tions. Wasl District brings AE-based Interna- more than 12,000 visitors. To Foundation’s 2017 Index of residents an authentic tional Real Estate give a greater value to the Economic Freedom ranked blend of traditional Emirati and Investment exhibitors and visitors, the the U.A.E. as the 8th most architecture with a range Show (IREIS) is set associated events that will free economy in the world, of modern amenities and to bring the biggest complement the main IREIS calling out efforts to facilities. ‘Block A’ offers local and international Abu Dhabi 2018 are ‘Interna- strengthen the business cli- residential apartments names in the real estate and tional Real Estate Confer- mate, boost investment and from one-bedroom to Uproperty investment industry ence’, ‘Citizenship & foster the emergence of a three-bedroom apart- to the UAE’s capital. Sched- Residency Expo’ and the more vibrant and diverse pri- ments, some with a maid’s uled to be held at the Abu ‘Global Investor Meet’. vate sector. room, that range from 833 Dhabi National Exhibition Antoine Georges, Manag- “This has allowed Dubai to to 2,712 square feet in Centre(ADNEC) from No- ing Director of Dome Exhibi- build globally competitive size. Apartments on vember 1st to 3rd, 2018, the tions, said “Despite slow and economic sectors including higher floors will also show will be a one-stop shop gradual pace of UAE real es- finance, logistics, maritime enjoy large terraces and a for global investors who seek tate market, investors have and tourism. The growth in pristine view of the city. real estate investment oppor- faith in the emirate based on these sectors in Dubai will Zainab Mohammed, tunities in the UAE. Abu Dhabi’s reserves, gov- continue to drive demand Chief Property Manage- The 10th edition of the In- ernment economic stimulus across the real estate mar- ment and Marketing Offi- ternational Real Estate and and affordable inventory. It ket, including office, residen- cer at Wasl Properties, Investment Show, a B2C was reflected in our in-house tial, retail, hospitality, said: “Last year we sales and networking plat- data of UAE and foreign real industrial and logistics uses.” handed over 166 units that form where spot sales are estate companies. Higher oil Dubai remains an attrac- comprised the first phase permitted, is bringing leading prices have provided added tive destination for investors of the project, all of which local and foreign real estate stimulus to the market and which is evident from the were leased within a developers and agents boosted investor confi- emirate's data of investors, record one week. Due to a under one roof will reflect the dence.” who belong to more than 217 high demand for quality attractiveness of UAE’s real Deloitte’s Middle East Real nationalities from all over the residences within the estate sector and will attract Estate and Construction world. Dubai Land Depart- area, we are now proud to investors from various parts 2018 report said: “Dubai has ment reports showed that deliver 190 additional units of the world. developed a business 13,759 real estate transac- as part of the second The show is expecting over friendly legal and regulatory tions worth Dh58 billion were phase of the project.” g 125 high-end exhibitors and environment. The Heritage recorded in Q1 2018. g

18 Gulf Property Dubai now hosts 2,091 mosques REALTYBYTES

Nakheel gets Dh650 m Dragon Towers bid aster developer Nakheel is assessing 11 proposals, with the lowest bid at just under Dh650 million, for the construc- tionM of Dragon Towers, its twin-building residential complex at the rapidly-expanding Dragon City community in Dubai. Dragon Towers, which will be released for sale in early fourth quarter this UAE now operates year, comprises 1,142 one and two bedroom apartments across two buildings and is directly linked to the world-famous he number of are divided into two cate- and musallas in Dubai. 4,818 mosques Dragon Mart retail and mosques in Dubai gories, masjids that host Fri- "Indeed, this continuous trading hub. reached 2,091 with day prayer representing 32 growth in the number of The complex will have a the total capacity of percent of all Dubai's masjids masjids and the notable de- podium-level clubhouse prayer exceeding and masjids that host only velopment in the quality of with a swimming pool, 624,000 by end of 2017 ac- regular prayers which repre- their construction corre- restaurant and gymna- cording to data issued by Is- sent 68 percent out of the sponds to the world-class sium, as well as two floors Tlamic Affairs and Charitable total number of masjids and standards of construction. of retail facilities and four Activities Department musallas in Dubai," Muaid This reflects IACAD's keen- parking floors. Nakheel (IACAD). Salami, Social Statistics Sec- ness to actually realise the will award the contract in Almost 400 mosques were tion Manager at Dubai Statis- Government's vision and the third quarter of this built in Dubai between 2008 tics Center (DSC) said. policies, which aim at pro- year, with construction and 2012. Philanthropists "The average annual moting our Islamic heritage, completion in 2021. play an important role in sup- growth of masjids during highlighting its Islamic iden- The news comes a day porting the building of 2012- 2017 was 8.2 percent." tity and making masjids avail- after Nakheel announced mosques in Dubai, with citi- As for masjids' capacity, able in various residential, that construction of the zens paying for 499 of Salami stated that the num- commercial, industrial and third expansion at Dragon mosques in the emirate. ber of masjids that facilitate tourism areas," said Muaid. City – an Dh169 million There are about 4,818 the capacity of 100 to 599 "Additionally, IACAD strives showroom and car park mosques in the UAE open all worshiper is 1567 masjids to appoint qualified and com- complex – has reached day long to call for piety, representing 74.9 percent of petent Imams and Khatibs to the 80 per cent mark. righteousness, and peace. the total masjids and Musal- operate all these masjids." Dragon Towers is part of There are 2,212 mosques in las in Dubai. Meanwhile, the IACAD also supervises 8 Nakheel’s ongoing retail, Abu Dhabi emirate, 973 in number of masjids with a ca- Eid Musallas throughout hospitality and residential Ras Al Khaimah, 734 in Shar- pacity of 600 to 1000 wor- Dubai in the following areas: expansion at Dragon City, jah, 302 in Ajman, 291 in Fu- shiper is 390 masjids, that is Nad Al Hamar, Umm Suqaim which is already home to jairah and 176 in Umm Al 18.7 percent of the total num- First, Al-Aweer 2, Al-Baraha, Dragon Mart 1, Dragon Quwain. ber of masjids and masjids Hatta, Al-Lesaily, Al Barshaa Mart 2 and an ibis Styles “The total number of with a capacity of more than 2 and Al Mankhool. The ca- hotel. A second hotel is masjids and musallas in 1000 worshiper are 134 ones pacity of these Eid Musallas currently under construc- Dubai reached 2091 in 2017 representing 6.4 percent of accommodate more than tion. g excluding Eid Musallas. They the total number of masjids 277,000 worshipers. g

Gulf Property 19 ,

REALTYBYTES

Aldar working with Viceroy hotel Aldar Properties said, it is working with Viceroy Hotel Group on a Viceroy branded property in Abu Dhabi. The move comes after AldarA appointed Marriott as operator of the Yas Viceroy Hotel, removing This is how Fujairah Business Centre will look like, when completed Viceroy as the hotel’s operator. Viceroy came on as operator of the Yas property back in 2011, marking its entrance into the Middle East, Viceroy's dismissal from the Yas Island prop- Dh460mDh460m FujairahFujairah BizBiz erty comes at the same time a year ago that it was relieved of managerial du- ties from the Viceroy on CentreCentre underwayunderway ubai Investments, group. The business centre Arab heritage through its at- Dubai's Palm Jumeirah. In the leading, diversi- will also include a G+2 level tractions. 2013, Viceroy signed a fied investments shopping mall and retail area The project will be served management agreement company listed on coupled with parking space through a district cooling with the hotel’s owner, an the Dubai Financial to accommodate over 670 plant for the cooling needs of affiliate of Five Holdings. Market, has announced that vehicles. the development, enabling Four years later, on June the Dh460 million Fujairah Khalid Bin Kalban, Manag- significant savings in com- 19 of last year, Five re- DBusiness Centre project, ing Director and CEO of parison to the power con- moved Viceroy from the being developed by its joint Dubai Investments and sumption through hotel. venture entity Al Taif Invest- Chairman of Al Taif Invest- conventional air cooled Jassem Busaibe, Chief ment, is progressing ahead ment, said: “The Fujairah chillers. Investment Officer of Aldar of schedule. Business Centre by Al Taif In- Al Taif Investment had ear- Properties, said: “We are Al Taif Investment, DIC’s vestment is an iconic project lier signed an Dh325 million pleased to continue our joint venture with Fujairah In- which aims to capitalize on financing agreement with Al relationship with Viceroy vestment Establishment [FIE] the investment potential and Hilal Bank, a UAE-based pro- Hotel Group on this hospi- – the investment arm of Fu- business opportunities that gressive Islamic Bank, for the tality project in line with jairah Government, an- Fujairah offers. The project project. China State Con- our strategy to leverage nounced that the project will will set benchmarks in urban struction Engineering Corpo- partnerships with interna- be completed by the fourth development in the Emirate ration Middle East is the tional operators and quarter of 2020. The overall and act as a growth catalyst project construction contrac- brands for our portfolio of project construction work is for creating robust opportuni- tor and Dewan Architects and eleven hotels.” progressing ahead of sched- ties for commerce and entre- Engineers is the consultant. Bill Walshe, CEO of ule. The Fujairah Business preneurship.” Al Taif Investment, Viceroy Hotel Group, com- Centre will have a total built- The project has been launched in 2007, invests in mented: “We are excited up area of 96,400 square planned in line with the mar- real estate and industry ven- by what the next chapter metres and will comprise two ket requirements in Fujairah tures locally and internation- brings for Viceroy Hotel towers, including a 19-level and aims to create a vibrant ally to develop a strong Group in the region. We plus roof Office Tower and a destination that will not only investment portfolio. Dubai look forward to working 19-level plus roof hotel with address the lifestyle needs of Investments owns 60 per with them in the drive to 228 rooms and suites as well modern retail, entertainment cent stake in Al Taif Invest- position Abu Dhabi glob- as 79 furnished apartments and hospitality in the Emirate, ment, while the remaining 40 ally.” g operated by a leading hotel but also connect them to their per cent is held by FIE. g

20 Gulf Property REALTYBYTES

Dragon City’s Arada launches Dh169 million expansion underway Bareem at Nasma onstruction of Nakheel’s third expansion at Dragon City – an Dh169 million showroom and car park complex – has reached Cthe 80 per cent mark, with completion due in the fourth quarter of 2018, the master developer announced. Managed by Nakheel Malls, the retail arm of Nakheel, the 375,000 square foot complex comprises 118,000 square feet of ground floor showroom space – all of which has been leased – and a multi- storey car park for nearly 900 vehicles. harjah-based master on Nasma Residences is Bareem Townhouses are an The new facility is the developer Arada is progressing rapidly, with excellent addition to the latest in Nakheel’s ongo- launching Phase 4 of Phase 1 now 35 percent homes on offer at this well- ing retail, hospitality and Nasma Residences, complete and on track to be designed community.” residential expansion at following exceptional delivered by the end of this Launched in March 2017, Dragon City which will sales in the project’s earlier year. Nasma Residences sold out bring the overall size of phases. Mobilisation on Phase 2 the first of the community’s the mixed-use develop- SThe release of 302 units in took place earlier this year, five phases in less than a ment to 11 million square Phase 4 will also include the and the main contract for month, making it the fastest- feet. launch of the Bareem Town- Phase 3 construction is ex- selling residential real estate Dragon City is already houses, a stylish collection of pected to be awarded in July. project in Sharjah. In total, home to the globally-fa- two- and three-bedroom Infrastructure contract for the project contains more mous Dragon Mart, the homes created for couples Nasma Residences has than 800 homes. world’s largest Chinese re- and young families. been awarded to Darwish Spread over an area of 5 tail and trading hub out- Featuring a clean, mod- Engineering Emirates, and million square feet Nasma side China and its sister ernist design that makes the that work on the community’s Residences has been mall, Dragon Mart 2, best use of available space, 6,500 square foot shopping planned to ensure a balance which opened in 2015. the Bareem Townhouses are centre has reached ground between living areas and Nakheel’s first hotel – an priced extremely competi- floor level, and is expected to community facilities. ibis Styles with 251 rooms With homes ranging in size tively, in line with Arada’s be completed by the end of – opened at Dragon City from 1,400 square feet to commitment to provide im- this year. in 2016 and a 304-room 4,400 square feet comple- peccably built homes at a Sheikh Sultan bin Ahmed Al Premier Inn is under con- price point that is accessible Qasimi, Chairman of Arada, mented by generous plots, struction. Meanwhile, for everyone. said: “With only one more there is an offering to suit Nakheel’s Dragon Towers, Also available in Phase 4, phase to come before every prospective home- a twin-building residential which is due to be handed Arada’s first project, Nasma owner. With homes starting development with 1,120 over to owners by the end of Residences, is completely from Dh899,000, it offers an apartments, is set to break 2019, are a select number of sold out, we are expecting a opportunity for investors who ground in the third quarter Arada’s four- and five-bed- significant response from in- want to buy in a lively new of this year. g room Signature Villas. Work vestors and end-users. The urban destination. g

Gulf Property 21 REALTYBYTES

Tilal Al Ghaf EmaarEmaar startsstarts worksworks seeks green credentials onon Dh1bnDh1bn BeachBeach VistaVista ajid Al Futtaim, Bringing a Miami beach style living to Dubai, Emaar Beachfront delivers a new lifestyle choice is setting am- that fulfils the aspirations of the discerning customers bitious sustainability targets for its new flagship Dubai community, Tilal Al Ghaf, with Mplans to become the first mixed-use development in the emirate to achieve a ‘very good’ rating under the BREEAM sustainability accreditation programme. Energy, water and waste are among key metrics measured to enhance the community’s environmental, social and economic sustainability performance as per BREEAM’s assessment. Extensive on-site gener- maar Development UAE and international mar- tion of Beach Vista homes is ation of solar power will be has taken possession kets. We are now commenc- set in a twin-tower develop- a key pillar of Tilal Al of the land for con- ing the construction of Beach ment of 33-storeys and 26- Ghaf’s sustainability strat- struction of Beach Vista residences highlighting storeys. The homes have egy. Majid Al Futtaim aims Vista residences in our commitment to on- glass facades and bask in to produce 20 percent of Emaar Beachfront, the pri- schedule delivery. We are natural sunlight, and feature the community’s energy vate island destination in the working with the best-in- large balconies overlooking needs from renewable ArabianE Gulf. Site mobilisa- class contractors and con- the sea. The homes have solar power, transferring tion and enabling work has sultants to deliver Beach luxury finishes and fittings. In surplus electricity to commenced with the hand- Vista to the highest stan- addition to residential facili- DEWA through the Shams over of homes scheduled for dards of design excellence ties such as swimming pools, Dubai initiative. the third quarter of 2021. and build quality.” gyms and parking areas at To achieve this, the Emaar launched the sale of The unique value proposi- the podium, there will also be upper-luxury villas and Beach Vista earlier this year, tions of Emaar Beachfront several high-end retail out- bungalows will offer recording sell-out response. are the uninterrupted views lets at the ground level. rooftop solar panels as a All 375 residences were sold of the Arabian Sea, The Emaar Beachfront offers di- standard feature, provid- out recording total sales Palm Jumeirah, Dubai Ma- rect access to Sheikh Zayed ing 45 percent of energy worth about Dh1 billion, un- rina and the Dubai skyline. Road and Palm Jumeirah. needs, along with solar derlining the strong investor Residents will have access Following the successful hot water heating and top- confidence in Emaar’s devel- to a private beach and a wide launch of Beach Vista, notch air conditioning sys- opment competencies and range of leisure and lifestyle Emaar earlier launched Sun- tems. In addition, solar the appeal of Emaar Beach- attractions including F&B rise Bay, a residential desti- panels will be offered as front as a sought-after resi- outlets, beachside play nation in Emaar Beachfront, options on other single- dential destination. areas, retail pop-ups set which brings a refreshing di- family buildings, and in- Ahmad Al Matrooshi, Man- along a promenade, and mension to resort-style living stalled on public buildings aging Director of Emaar more. Bringing a Miami in Dubai. With their homes across the community. Properties, said: “Emaar beach style living to Dubai, opening to views of the Public spaces will be lit by Beachfront’s first residential Emaar Beachfront delivers a Dubai Marina and the beach- solar-powered streetlights launch, Beach Vista has new lifestyle choice that ful- front, Sunrise Bay comprises and renewable energy will been an overwhelming suc- fils the aspirations of the dis- a limited collection of 1, 2, 3 be deployed to reduce en- cess recording strong in- cerning customers. The and 4-bedroom premium ergy consumption. g vestor response from the thoughtfully designed collec- residences. g

22 Gulf Property REALTYBYTES

Marriott to operate Yas Island hotel dar Properties has appointed Marriott International, to manage one of its most strategically located hotels on Yas Is- land, as part of its active Aasset management strategy for its Dh20 billion real estate portfolio. Effective July 1, 2018, Marriott International will Rove Hotels to operate Rove Hotel at the La Mer beach in Dubai assume operation of the Yas Island hotel, which will go through a refurbishment period before opening under W Hotels – marking the debut of the brand in Abu Dhabi. Areas across the hotel will be re- Rove Hotels to designed as per W Hotels’ brand standards. The hotel which over- looks the Formula 1 Abu Dhabi Grand Prix race operateove Hotels, the con- Canal, La Merin features La a Properties. Mer track is a key component temporary midscale wide array of dining, shop- Olivier Harnisch, Chief Ex- of Aldar’s Yas Island des- hotel brand, has an- ping, leisure and entertain- ecutive Officer of Emaar Hos- tination. The island is set nounced Rove La ment choices, and is already pitality Group, said: “La Mer to welcome Warner Bros. Mer located in the one of the go-to attractions in is an ideal fit to the brand val- World Abu Dhabi next heart of La Mer, Dubai’s the city. ues that Rove Hotels cele- month, building on the ex- world-class beachfront. Set La Mer, which opened in brates, with a focus on isting leisure attractions Rby the Arabian Gulf and with October 2017, comprises offering exceptional lifestyle and driving more tourists spectacular views of the city over 100 shops, cafés, experiences in a trendy envi- to the destination, where skyline, the 366-room Rove restaurants, and beach activ- ronment. The positive buzz of Aldar has a portfolio of La Mer marks the newest ad- ities. The central Laguna La Mer and the popularity it seven hotels. dition to the growing portfolio area includes a waterpark has gained among the young Abu Dhabi’s media and of Rove Hotels properties in with a surf park that is a first- and young at heart make entertainment free zone is the UAE. of-its kind in the region. The Rove La Mer Resort ideally also relocating to Yas Is- Rove La Mer stands out for destination spans a total of positioned to meet the needs land and has appointed its central location at La Mer, 13.4 million square feet be- of the new generation of trav- Aldar as its real estate a destination created by Mer- tween Pearl Jumeira and ellers who explore without partner. The first phase of aas that benefits from a min- Jumeira Bay with a new cin- boundaries and seek cultur- the new free zone is val- imalist and contemporary ema and additional retail and ally inspiring experiences.” ued at Dh1 billion and is design. Stretching into the dining space planned. Designed for the value- set to grow with a target of ocean in the Jumeirah 1 Designed for the value- conscious modern travellers attracting 10,000 profes- neighbourhood, La Mer of- conscious modern travellers who seek reliable, modern sionals. This will form part fers an inspiring lifestyle and who seek reliable, modern and fuss-free hospitality serv- of the Dh12 billion Yas Bay master development, leisure environment sur- and fuss-free hospitality service in a tech-driven environ- which also comprises a rounded by 2.5 kilometres of ice in a tech-driven environment, Rove Hotels are waterfront and entertain- relaxing sandy beaches. In ment, Rove Hotels are developed as a joint venture ment district and an urban close proximity to Etihad Mu- developed as a joint venture between Meraas and Emaar community. g seum and Dubai Water between Meraas and Emaar Properties. g

Gulf Property 23 REALTYBYTES

Dh135 m PII of Millennium Residences launched ubai-based Bing- hatti Developers has launched the second Phase of its Dh400 million waterfront project Millen- nium Binghatti Resi- dences,D along with attractive discounts and Steve Morgan with Mark Ridley following Savills acquisition of Cluttons Middle East special payment plans. Following the tremendous success of Millen- nium Binghatti Residences’ first sales phase, Binghatti Develop- ers decided to launch the Savills acquires second sales phase of the waterfront project which is valued at Dh135 million. Inspired from the Millen- Cluttonsnternational real estate The regionMiddle has been a both existing East and new clients nium Hotels and Resorts advisor Savills has ac- strategic target for Savills, as we look to expand our and consisting of 230 units quired Cluttons Middle and the acquisition sees platform of services.” including Studio, one-Bed- East, a leading real es- Savills establish its first With offices across the room and two-Bedroom tate consultancy busi- wholly owned business in the UAE, Bahrain, Egypt, Oman apartments, this 29-story ness in the Gulf region. Middle East. This new Savills and Saudi Arabia, Cluttons waterfront project is cur- “The business employs business in the Middle East Middle East is the most es- rently being constructed I190 staff in seven locations provides a vital bridge be- tablished Real Estate Advi- by Dubai’s Water Canal in throughout the Gulf region, tween Savills expanding Eu- sory business in the region, Business Bay and is ex- providing agency, manage- ropean business and its servicing a large portfolio of pected to be completed by ment and consultancy advice established Asian operation. clients ranging from interna- the fourth quarter of 2019. in both the Commercial and Savills has developed some tional corporate and institu- The tower’s design is a Residential sectors. The strong relationships with its tional investors, to private unique and modern rein- deal, which was completed associates in the region over individuals and families. on 31 May will see Savills many years and while the terpretation of traditional Steven Morgan, Chief Ex- take full ownership of Clut- formal associations will come ideas that are still relevant ecutive at Cluttons Middle tons Middle East, a brand to an end, the firm expects to to the regional culture and East, comments: “Despite which has been established continue cooperating with its climate. With a fresh take economic headwinds across in the region for more than former partners in the future. on historical ideas, Millen- the region in recent years, 40 years,” a statement said. Mark Ridley, Savills Deputy nium Binghatti Resi- Cluttons Middle East has The business will be re- Group Chief Executive, says: dences is a rare example grown from strength to of the Arabic architecture branded Savills during 2018. “The Middle East region is Cluttons Middle East’s 190 key to the global economy strength and Savills acquisi- that has often been over- tion is testament to our cur- looked in the pursuit of au- strong team will transfer to and its continued economic Savills global platform with development, increased gov- rent position in the market. thentic modernism in This acquisition by Savills is Dubai. The building sits di- immediate effect. The full re- ernment investment and a tention of Cluttons Middle young population will con- an incredibly positive and rectly on the Dubai Water East leadership team and tinue to accelerate its signifi- exciting opportunity for all Canal waterfront at Busi- employees will ensure clients cance. Cluttons Middle East clients ness Bay, which allows it not only continue to benefit “With a market leading po- and employees as it will to offer direct views of the from the same regional ex- sition, and strong local lead- merge our regional expertise iconic Dubai Skyline and pertise but also benefit from ership, we will be able to with Savills global capabili- Burj Khalifa. g Savills global platform. offer a high quality service to ties.” g

24 Gulf Property REALTYBYTES

ADFD powers ADFD pumps in Uganda with Dh40m loan bu Dhabi Fund for Development, the Dh11 b in Ethiopia leading national entity for development aid, has ap- Ethiopian proved an Dh40 million economy is concessionary loan for the undergoing Adevelopment of a rural recession electrification project in and the Kalongo in Uganda. support Aimed at electrifying from Abu Dhabi will homes, schools, health- help the care centres, offices, in- country’s dustrial and agricultural economy to establishments, the proj- come back ect seeks to help the government achieve its objective of meeting the rural electricity demand that currently stands at less than seven per cent bu Dhabi Fund for in Addis Ababa, the capital of try’s gross national income to 26 per cent by 2022. Development Ethiopia. The signing cere- and revitalise key strategic Set to benefit 20,634 con- (ADFD), the leading mony was held on the side- sectors. sumers over the next 10 national entity for de- lines of the official visit of His ADFD’s contribution to the years, the rural electrifica- velopment aid, said, Highness Sheikh Mo- development of Ethiopia tion project is anticipated it allocated an Dh11 billion hammed bin Zayed Al dates back to 2012. Since to improve the living stan- (US$3 billion) economic aid Nahyan, Crown Prince of then, the Fund has disbursed dards of the rural popula- packageA to the Ethiopian Abu Dhabi and Deputy Dh36.7 million ($10 million) tion and minimise government to support sus- Supreme Commander of the towards financing the Gedo migration to cities. tainable socio-economic de- UAE Armed Forces, to Fincha-Limlem Peria Road The 33kV rural electrifi- velopment in that country. Ethiopia. Government offi- project. The operational 80 cation project involves civil The purpose of the funding cials and senior representa- kilometres road serves the and electrical works for is twofold. ADFD deposited tives of the two entities also Oromia Region in the west of the installation of a 139- an amount of Dh3.7 billion attended the signing cere- the Ethiopian Highlands, fa- kilometre transmission ($1 billion) in the National mony. cilitating the movement of ve- line, as well as 88 distribu- Bank of Ethiopia to bolster Mohammed Saif Al hicles and reducing tion stations and 415 volts’ the country's fiscal and mon- Suwaidi said: “ADFD con- transportation costs. distribution lines on a 167- etary policy, as well as to en- tributes to the UAE’s efforts Since its inception in 1971, kilometre stretch that will hance the liquidity and to assist developing coun- ADFD has financed develop- bring electricity to about foreign exchange reserves of tries in achieving sustainable ment projects valued at 2,000 consumers. The its central bank. The remain- development and improving project supports the devel- ing Dh7.3 billion ($2 billion) socio-economic conditions. Dh80 billion in 88 countries around the world. The Fund opment of small indus- seeks to stimulate the “In addition to helping tries, workshops and Ethiopian economy and en- Ethiopia overcome the chal- focuses on projects that en- agricultural units in courage joint investments. lenges it faces, the funding hance key sectors including Uganda, while curbing the Mohammed Saif Al will encourage the UAE pri- renewable energy, transport, over-exploitation of vege- Suwaidi, Director General of vate sector to enter the infrastructure, agriculture, tation as a source of en- ADFD, and Teklewold At- Ethiopian market and benefit mining, industry, health care, ergy. nafu, Governor of the Na- from the investment opportu- social services, housing, Since 1977, the Fund tional Bank of Ethiopia, nities it offers.” water and electricity. has extended Dh79 million signed a memorandum of Furthermore, Mohammed ADFD is an organisation in loans and government understanding (MoU) outlin- Saif Al Suwaidi noted that the owned by the Abu Dhabi grants. g ing the terms of the funding funding will boost the coun- government. g

Gulf Property 25 REALTYBYTES

Se7en City P1 sold out AE property developer Seven Tides said, it has sold 661 apartments, valued at Dh301,863,775 million since the sales launch of itsU first mixed-use development in Jumeirah Lakes Towers (JLT), in Dubai, Se7en City JLT, on Thurs- day 24th May 2018. “To sell out phase one of our project in less than one week is remarkable and due to that success, we are now launching phase two of the project,” said Abdulla Bin Sulayem, CEO of Seven Tides. CSCEC bags Dh72m “We are offering excellent value at a competitive price point. In addition, we offer a very attractive easy Damacamac Properties contractmajor contract to Arabtec to payment option consisting has awarded China build 916 villas at Akoya Oxy- of a 5 percent deposit, fol- State Construction gen in March 2018, and in lowed by payments equal Engineering Corpo- August 2017, Arabtec was to 6 percent of the cost ration (CSCEC) with also chosen to build 1,296 price to be paid every sub- an Dh72 million construction 1,623 villas. sequent quarter, with a contract for major road and Located off the Umm completion date of Q3 infrastructureD work at Akoya villas will be Suqeim Road extension and 2021. We estimate that Oxygen. This latest contract approximately 15 minutes studios should yield 12 brings total construction accessible from Damac Hills, Akoya percent per annum. spend to over Dh5.6 billion Oxygen will offer residents a Studio units proved to be since its inception, as Damac with the serene, family-friendly com- most popular with 572 continues development at its munity surrounded by beau- sales valued at 55 million square-foot com- infrastructure tiful landscaping and Dh226,844,420, followed munity, and looks to start de- cascading water features. It by one-bedroom units liveries end of this year. works features homes made up of which recorded sales “This latest contract award energy efficient materials, worth Dh51,335,958 and to CSCEC will see major controls and systems, amidst sales of two and three- road and infrastructure work to welcome its first residents a green and secluded set- bedroom units were worth being carried out at three at the end of 2018.” ting. Dh236,833, 970. clusters within Akoya Oxy- CSCEC will carry out major With access to an 18-hole Indian investors have gen, providing access and work at Victoria, Avencia and golf course, Akoya Oxygen bought 17 percent of the services to support 1,623 vil- Amargo clusters which con- will also offer residents with units sold so far; UAE and las,” said Ali Sajwani, Gen- sist of 1,623 villas, and was state-of-the-art amenities Pakistani investors pur- eral Manager of Operations awarded the work based on such as luxury shopping ar- chased 7 percent each; at Damac Properties. “We a competitive bid, as one of cades, five-star hotel and followed by British, Russ- are pleased to further the world’s largest multidisci- suites, an organic market, ian, Saudi and Canadian strengthen our relationship plinary companies in the field among others. The commu- nationals, acquiring 6.8 with CSCEC, as we acceler- of civil and industrial engi- nity will also include conven- percent, 6.1 percent, 5.1 ate development in almost neering, and the leading con- iences such as mosques, percent and 4.7 percent every part of our largest mas- tractor in the Middle East. clinics, schools, nurseries, respectively. g ter community which will start Damac recently awarded a and restaurants. g

26 Gulf Property REALTYBYTES Azizi Star set Al Habbai toto buildbuild for delivery by end 2018 zizi Develop- Dh500mubai-based devel- RSG Chairmanhotel of RSG, comments, a leading oper Raj Sahani mented, “The road was long, private real estate Group (RSG), has and it was tough to finalize developer, said, it awarded a Dh500 the main contractor that is on track to de- million contract to Al matched the same level of liver its largest project in Habbai Contracting to build passion and commitment to- the upcoming develop- Sabah Rotana – a 54- wards Sabah Rotana. In the Ament of Al Furjan – Azizi Dstoreyed hotel and serviced end, the search yielded great Star – by the end of 2018. apartment complex. results in the form of Al Hab- Consisting of a total of Located on Sheikh Zayed bai Contracting, whom we 458 units of studio, one- Road, it lies in the prime welcome to a long partner- bedroom, two-bedroom, neighbourhood of Sufouh ship with us. As evidenced and penthouse apart- Gardens and presents a by their past work, they have ments, Azizi Star is cur- striking vista of the Burj Khal- validated themselves as the rently progressing rapidly ifa and Palm Jumeirah. The perfect choice for the posi- with ongoing internal fin- hotel is a premium property tion. We strongly believe that ishings and elevations on that rises to 54-floors and is the product of this collabora- the external façade. perfectly poised to offer a tion befits the vision that we In the last three years, bird’s eye view of the breath- have for Sabah Rotana.” Azizi has delivered over taking Dubai skyline and its The project has already re- 1,800 units across 12 proj- main attractions. To be ceived pre-approval under ects in Al Furjan. launched before Expo 2020, the category rating of 5-star Al Furjan remains one of the 5-star hotel and hotel and Tourism property by the Dubai’s fastest growing apartments has been pro- Department of Tourism and residential neighborhoods, jected to be completed in 2.5 Commerce Marketing with easy access to Ibn years. (DTCM). Combining ingenu- Battuta Mall, Jebel Ali “The main contractor Al ity in architecture with supe- Free Zone, and the Expo Habbai Contracting was cho- rior services to ensure pletely focus on the construc- 2020 site. The new metro sen from a competent list of comfort and convenience, tion of this massive landmark line named Route 2020 contracting firms who bid for Sabah Rotana is well on its project ‘Sabah Rotana’, will link Al Furjan to Dis- the project. They have a way to becoming an impor- aligning with RSG’s core covery Gardens and will proven track record of excel- tant landmark in Dubai’s principles of quality and service the Al Maktoum In- lence and commitment, that iconography. timely delivery of projects. ternational Airport. tipped the scales in their Raj Sahni Group traces its A 528,531 square foot favour over other competi- Sabah Rotana is a collabo- origin in the 1970s in Kuwait ration between RSG and development, Azizi Star tors,” the company said in a starting off as a modest fam- offers 310 studio units, 46 statement. Rotana, one of the leading ily business of automotive hotel management compa- one-bedroom units, 86 “The project is a marked spare parts that later grew two-bedroom units and 16 nies in the region with hotels into a departure from the standard progressive organisa- penthouses as well as across the Middle East, tion across sectors as di- architectural designs. The 9,500 square feet of retail Africa and Turkey. The tower verse as automotive, real asymmetrical balconies, space. Azizi Star is part of encompasses 5-star rooms, estate, industrial equipment, pointed tapered sides add a a larger portfolio of devel- serviced hotel apartments, investments and property de- layered dimension to the opments that includes the building that both inspires food and beverage outlets, velopment. French-inspired waterfront and challenges the devel- nightclubs and meeting RSG is headquartered in lifestyle project, Azizi Riv- oper. Al Habbai Contracting rooms among other inclu- Dubai and has spanned iera in Meydan One and shares RSG’s enthusiasm in sions. The icing on the cake, across the Middle East, USA the mega mixed-use creating a structure that is a however, is the opulent Sky and South Asia. A diligent urban project, Azizi Victo- visual masterpiece and re- bar where the guests can and sensitive approach to ria in MBR City – District 7, flects the innovative spirit of enjoy an evening with a selecting the right business as well as other projects in the firm.” spectacular view of resplen- at the right place has been Dubai Healthcare City, As per the contract, the dent Dubai. the formula for the group’s and Jebel Ali. g main contractor will com- Raj Sahni, Founder and success. g

Gulf Property 27 fake real

REALTYBYTES

Nshama offers 10/90 ECCECC bagsbags Dh310mDh310m payment plan own Square Dubai NshamaNshama contractcontract by Nshama has announced a new and attractive payment plan that will offer customers a ‘live life at your price’ value propo- Tsition. Already a thriving neighbourhood, Town Square Dubai offers customers the opportunity to become part of one of Dubai’s most sought-after and distinctive neighbourhoods offering attractive price- points that will appeal, especially, to middle income professionals. As part of the new payment plan, customers only have to Una Apartments at Nshama’s Town Square development make a 10 per cent down payment with the rest 90 per cent to be made only ngineering Contract- will draw on their strengths gion with the UAE account- on handover. ing Company LLC for UNA, the path-breaking ing for over half of the active The new 10/90 payment (ECC), a Dubai-based co-living community that as- projects across all segments plan will add to the con- contractor, has been sures a ‘live life at your price’ compared to the rest of the venience of customers re-appointed to lead value proposition.” region. and ensure they can move on the Dh310.57 million con- Spanning over 90,350 “With urban development into an ‘owned home’ tract for the design and con- square metres, UNA Apart- accounting for a large pro- lifestyle in a private, gated structionE of the UNA ments will require design and portion of the projects, there community with access to apartments in Town Square construction of two G+2P+9 is a clear need for industry parks, cycling tracks, land- Dubai by Nshama. storey buildings and is a players to differentiate their scaped gardens and a vi- ECC holds a track record mixed-use development with offering and diversify to re- brant boulevard. of delivering projects on time numerous retail areas on the main competitive in our chal- The plan is applicable and has built a strong pres- ground floor. For a duration lenging market.” According to a recent re- for purchases of the ence and solid reputation of 25 months, ECC will pro- port from the Dubai Land De- thoughtfully designed Safi, through its successful ven- vide its dynamic engineering partment (DLD), there is a Zahra, Zahra Breeze, tures and strategic partner- solutions to oversee and clear shift in the market with Hayat Boulevard, Jenna ships in the market. lead on the project’s design developers focusing on new and Warda Apartments – Fred Durie, CEO, Nshama: and construction. opportunities and finding all of which have a central “Town Square Dubai sets the UNA Apartments is a niches in the market – such position within the neigh- benchmark for future devel- lifestyle residential commu- as co-working and co-living bourhood with easy ac- opments in Dubai and the re- nity that will feature numer- gion to appeal to the ‘new’ ous retail areas, 192 studios, spaces – a prime example of cess to a range of lifestyle generation. Technology has and 764 one-bedroom apart- which is the UNA Apartments amenities. changed the way we live and ments. The main consultant project. UNA Apartments are Nshama is in the work and therefore commu- on the project is Al Wasl Al for the fast-paced entrepre- process of handing over nities need to have develop- Jadeed Consultants. neurs and creative minds the first phase of Zahra ments that meet the modern Kareem Farah, CEO, ECC: seeking a collaborative, sus- Apartments with more de- pace of life and work. ECC “There are over 10,000 tainable, and urban hub pro- liveries scheduled in the has a strong track-record in urban development projects viding a holistic living coming months. g project development and we underway* throughout the re- environment. g

28 Gulf Property

REALTYBYTES

Farnek bags FM contracts worth Dh157m AE-based facilities management company Farnek has been awarded new contracts worth over Dh157 million from sev- eralU major organisations throughout Dubai and the UAE, including Dubai Air- Dubai Hills Mall is going to be a major attractions for visitors ports, The Dubai Mall, RAKBANK, Emaar’s new retail centre, Springs Souk, Abu Dhabi Munici- pality and the new residential community in Dubai South, MAG 5 ALEC finishes 60% Boulevard. Farnek is mobilising 1,170 additional staff and highly skilled, specialist technicians, to manage a of Dubai Hills Mall range of services includ- ubai Hills Mall, the tainable retail destinations, ing, Mechanical, Electrical trendy new retail Emaar Development is fitting and Plumbing (MEP), and lifestyle destina- out car parking shades and cleaning, waste manage- tion in Dubai Hills the rooftop shades with a ment and security. Estate, is coming to 7,000 dual function – of assuring Farnek CEO, Markus life with Emaar Development sun-cover as well as captur- Oberlin said: “These new achieving new construction car parking ing solar energy with the account wins vindicate our milestones.D power generated to be linked business strategy. We en- Al Jaber LEGT Engineering space for to the grid of the Dubai Elec- deavour to add value & Contracting (ALEC), part of tricity and Water Authority. whenever and wherever the Al Jaber Group, is the shoppers The solar shading will gener- we can, by being innova- project’s main contractor. ate 6.5 MW annually. tive and adopting the lat- Dubai Hills Mall will also Offering 2 million square est technology in a feature four major family en- Hills Park, open green feet (about 46 acres or 42 sustainable manner, to de- football pitches) of gross tertainment and leisure cen- spaces and more. liver our promise to our leasable area, Dubai Hills tres including a cineplex, a With a workforce of about customers. Mall will have a diverse mix 6,038 sqm hypermarket, 5,000 on site, and more than Farnek’s newly signed of about 650 retail and F&B seven anchor retail experi- 8.8 million manhours contracts include a three- attractions including ‘fast ence stores, and dedicated achieved already, about 60 year agreement with The fashion’ outlets and trendy parking spaces for over per cent of the mall’s struc- Dubai Mall for soft serv- cafes. Other highlights of 7,000 vehicles. ture has been completed. ices across all aspects of Dubai’s upcoming new mall Dubai Hills Mall is centrally Emaar has also started the the mall including Fashion located in Dubai Hills Estate, structural work of an 18- destination are four major Avenue and the Leisure one of the largest mega-de- screen cineplex as well as family entertainment and and Entertainment areas. velopments by Emaar as a the first glass skylight. leisure centres including an A total of 500 staff will be joint venture with Meraas. It A unique attribute of the 18 screen cineplex, a 63,500 mobilised. Additionally, is set in an area of over 11 Dubai Hills Mall is its solar square feet hypermarket, nu- Farnek will also be provid- million square metres (about harvesting shading systems merous anchor retail experi- ing facilities management the size of 1,550 football that are currently being put in ence stores, and dedicated services to Emaar’s newly fields) and features an 18- place. Set to establish the parking spaces for over opened Springs Souk. g hole golf course, the Dubai mall as one of the most sus- 7,000 vehicles. g

Gulf Property 29 OPINION EuropeanEuropean Union:Union:

UnitedinUnited real income levels among wewe stand!stand!policy. Simply put, the euro the original euro area mem- area should not repeat the bers. Interest rates began to mistakes of the past. Greater converge even before the Several of the risk-sharing combined with common currency was intro- countries hit hardest larger national buffers would duced. allow countries to avoid hav- As we now know, in some during the global ing to raise taxes and cut CHRISTINE LAGARDE cases, these shifts con- financial and euro spending when the next Managing Director tributed to excessive borrow- area crises saw their downturn comes. International Monetary Fund ing, unsustainable growth Every country has a re- levels, and eventually, the income growth fall sponsibility to comply with euro area crisis. significantly behind common fiscal rules and re- he EU and euro area Indeed, several of the duce public debt in places are in the midst of dif- countries hit hardest during that of their peers. where it is too high. ficult decisions about the global financial and euro Many countries are All of these reforms can their future. Populist area crises saw their income make a difference, but they movements — from growth fall significantly be- only now recovering are only part of the solution. Brexit to the recent Italian hind that of their peers. Many to pre-crisis levels... More fiscal integration and elections — have called into countries are only now re- true banking and capital mar- questionT the value of Euro- covering to pre-crisis levels. kets unions will not address pean integration. So, it has been a compli- the structural weaknesses It has been 20 years since cated journey, full of difficult dressed in depth over the holding back growth in many the creation of the euro, we moments — but in each step, next two days. countries. Policymakers know that the journey to inte- we have learned valuable First, the Banking Union must continue the difficult gration dates back much fur- lessons. The euro area is at should be completed with an work of making their own ther. The common currency its best when it is ambitious. adequate backstop for a Sin- economies more resilient capped a 50-year quest to Think of what has been cre- gle Resolution. This is impor- and productive by imple- tear down economic borders. ated over the past decade. tant because ultimately, with menting structural reforms. Today, 19 of 28 European The European Stability the proper safeguards, it This moment — with solid Union members are part of Mechanism and its prede- makes good economic growth and steadily declining the euro area, and the euro cessors worked with the IMF sense to insure credit risks unemployment across the is the world’s second major and provided over 250 billion across member countries. euro area — is the time to reserve currency. euros in loans to the five This kind of insurance can tackle the tough challenges. It has been an incredibly countries hit hardest by the help weaken the “sovereign- fruitful endeavour. The links There is no doubt that se- crisis, and now with the bank doom loop” that was at between European nations curing the euro area for the ESM, credible crisis-fighting the heart of much of the cri- have gone beyond what next twenty years will take resources are at the ready. sis. many imagined in the after- patience, creative thinking, Time and again, Europe Second, the euro area and increased cooperation. math of the Second World rose to meet the challenges War. European integration needs truly integrated finan- But this has always been the it faced, and in the process cial and capital markets that case. has raised standards of living undertook key institutional across the continent. In the allow companies to raise fi- Bringing countries together reforms. I believe there are European Union, real GDP nancing across borders more under difficult circumstances three major areas where per person has increased 40 easily and support invest- has been the mission of the work is needed to enhance percent since the mid-1990s. ment. euro area since its creation. the euro area’s resilience This growth outpaces the ex- Third, the euro area can To be truly effective, the euro and secure its future. pansion seen in the United take steps to introduce area cannot just be a union Of course, progress will not States over the same period. greater fiscal risk-sharing of convenience in calm wa- be easy and it will take time But that is only part of the while reducing underlying fis- ters. It needs to be a strong to reach agreement on many story. In the run up to the cal risks. During the last cri- shield amidst storms.That thorny issues, but I want to adoption of the euro in 1999, sis, there was an should be the objective going outline each area briefly. I we saw strong convergence overreliance on monetary forward. g know these topics will be ad- 30 Gulf Property OPINION

DebtlyDebtlyhe world economy is uncertainityuncertainitycent higher than its level in currently witnessing a 2007, when it stood at about strong upswing and a Global debt – both US$116 trillion. Private debt broad-based acceler- public and private – has been a major driver of ation not seen since this buildup, accounting for the global financial crisis. has reached at an all- up two thirds of total debt. Yet, as the IMF warned back time peak of US$164 Yet public debt dynamics Tin April, there were risks are also worrisome, espe- looming on the horizon that trillion. This is cially in advanced could derail this recovery. equivalent to 225 economies. At 105 percent of Some of these risks are percent of global GDP, public debt is at levels now closer than we had an- not seen since the Second ticipated, injecting new ur- GDP. Global debt is World War. gency on policy actions to now 40 percent higher In emerging and middle-in- MISUHIRO FURUSAWA sustain the momentum and come economies as well, Deputy Managing Director resilience of the global econ- than its level in 2007, public debt has increased to International Monetary Fund omy. when it stood at about levels seen only during the The global economy has 1980s’ debt crisis. Yet at al- If we add to these risks the gained momentum, driven by US$116 trillion. most 50 percent of GDP in challenges from aging populations and weak productivity stronger investment, a re- 2017, this debt is projected growth, we can see a rather bound in trade, and – Misuhiro Furusawa to rise even further in coming sobering medium-term out- favourable financial condi- years. And for many low-in- look – especially in ad- tions. The recovery is also come countries, debt bur- vanced economies. broad-based: 120 countries dens will become ing in sub-Saharan Africa This means that these saw stronger growth last unsustainable if recent and the Middle East, even as countries will not regain the year, accounting for three- trends continue. These high commodity exporters experi- per capita growth rates they quarter of world GDP. Our levels of debt are at the root ence a modest upswing. experienced before the latest forecast in April there- of rising financial vulnerabili- So, the overall picture for global financial crisis. Eco- fore projected the global ties – the second source of the global economy is bright nomic inequality, debt con- economy to grow by 3.9 per- risk. – for now. But there are risks cerns, and political cent in 2018 and 2019 – 0.2 High debt burdens leave and uncertainties clouding polarisation could get worse. percent higher than our fore- the horizon. governments, companies The bottom line is: there is cast last October. This accel- For one thing, the momen- and households more ex- momentum in the global eration is driven by both tum projected for 2018 and posed to sudden tightening economy, but risks and un- advanced countries and 2019 is temporary. It is ex- of financial conditions. Such certainties to this momentum emerging and developing pected to fade as fiscal stim- potential shift could trigger have risen. The window of economies. ulus unwinds in countries market corrections, debt sus- opportunity may be narrow- Advanced economies are such as the United States tainability concerns, and cap- ing. Policymakers need to projected to grow above and China. It will also fade as ital flow reversals in act decisively to strengthen medium-term potential this interest rates rise and finan- emerging market economies. the resilience of the global year and next. In the United cial conditions tighten with The third risk – and one economy and boost States, which is already at monetary policy normaliza- that is dominating the public prospects for all. full employment, expansion- tion by major central banks. debate – is that of protection- What does this mean in ary fiscal policy will boost Yet there are other vulner- ism and the rise of inward- practice? It means three pri- growth further to 2.9 percent abilities building up that can looking policies. The orities: build policy buffers, this year and 2.7 percent in further threaten this momen- prospect of trade restrictions step up structural reforms, 2019. Japan’s economy is tum. I can see three such and counter-restrictions and steer clear of protection- also growing, despite a soft risks. The first is the risk of threatens to undermine con- ism. Opening up service sec- patch earlier in the year. And high debt. Based on the fidence and derail global tors can help boost emerging Asia will continue analysis in our April Fiscal growth permanently. productivity and long-run grow strongly, at about 6.5 Monitor, global debt – both In Europe, political uncer- growth in many countries. percent in both 2018 and public and private – has tainty about Brexit and policy We need to increase trade in 2019 – led by China and reached at an all-time peak complacency risk diverting services, where tariffs and India. of US$164 trillion. This is attention from the steps barriers remain extremely Challenges, however, re- equivalent to 225 percent of needed to strengthen the in- high. This means that coun- main in other emerging and global GDP. stitutional underpinnings of tries must steer away from developing countries, includ- Global debt is now 40 per- the currency union. protectionism. g

Gulf Property 31 OPINION

Asia’sreversalAsia’s of capital flows, for SustainedSustainedhave seen in recent years example. offer no reason to relax. Asian countries have cer- There are unique forces at tain defenses in place that work that require extra atten- heighten resilience, espe- For example, in India, tion. cially the increased reliance So let’s take a closer look on flexible exchange rates. only about 46 percent at recent developments. And overall, the region is bet- of male adults from Our current Regional Eco- ter placed to resist shocks. the poorest quintile of nomic Outlook for the Asia- Nonetheless, some buffers Pacific analysed the inflation have weakened. Let me now the population have a trends. We saw sharp price offer a few examples, start- formal account. That declines between 2012 and ing with the less worrisome 2015, when disinflation was TAO ZHANG trends and moving toward compares with 79 broad-based by various infla- Deputy Managing Director, International Monetary Fund those that might be of percent in the richest tion measures. Inflation fore- greater concern. casts through 2017 stayed First, our metric for assess- quintile. This disparity constant or were revised ing reserve adequacy shows is even more down. that Asia’s reserve cover is But we now see headline down from immediately be- pronounced when inflation picking up in Aus- fore the global crisis, but measured by use of tralia, Japan, Korea, and much higher than before the mobile transactions (a some ASEAN-5 economies. Asian crisis. Nonetheless, re- That is in line with other ad- here is a broad con- serve adequacy remains at fourfold difference), vanced economies and sensus that the short- the upper end of the ade- or borrowing from a emerging markets, reflecting, term outlook for both quacy range and higher than in part, the recent rise of the global economy in most regions. financial institution commodity prices. and Asia remains Second, the average cur- (about a threefold Our research has pro- strong. Most of you are famil- rent account balance is a lit- difference). duced three main findings: iar with our recent forecasts, tle lower than in 2007. But First, low inflation has been whichT see 3.9 percent global there have been worries driven mainly by temporary growth this year and next. about specific countries. forces, including imported in- But there is also an under- Third, external debt in Asia flation. Our estimates indi- standing that we continue to has substantially risen since cate that weaker import face risks — witness the un- 2007. And even before that, icy makers should focus on prices, including commodi- certainty that hovered over there was a significant in- increasing resilience by ties, contributed to half of the some financial markets in re- crease in external debt after strengthening fiscal and undershooting of inflation tar- cent weeks. This has once the Asian crisis. monetary buffers, and em- gets in advanced Asia, and again raised the concerns Fourth, public debt has ploying macroprudential most of the undershooting in about how Asia will respond risen to 59 percent of the measures where necessary. emerging Asia. to increased market volatility gross domestic product The bottom line is clear: Second, the inflation or even the next global (GDP) from 46 percent in there is still work to be done process has become more downturn. 2007. Fiscal balances also for Asia to have strong de- backward-looking. Expecta- Of course, we have seen have worsened, with an av- fenses. tions are generally well another moments like this in re- erage deficit today of 1.1 per- chored, especially in cent years as central banks cent of GDP. They were in advanced Asia and have carefully moved down surplus in the earlier periods. Inflation in economies with inflation-tar- the path of monetary policy Finally, perhaps the most geting frameworks. Still, the normalisation. striking change since the Asia importance of expectations The Fund has had a clear global crisis has been the in- Here, I would like to touch has declined in recent years, message to Asia to deal with crease in corporate and upon a key element of a pol- with past inflation playing a the uncertainties: we have household indebtedness. icy to strengthen buffers. larger role. consistently called on policy- Many of you know that our This is constant vigilance Third, the sensitivity of in- makers to rebuild monetary message to our global mem- about inflation. flation to slack in labour mar- and fiscal buffers. We see bership has been to “fix the As the central bankers kets has declined. This is this policy approach as es- roof while the sun shines.” today know only too well, the something we have also sential for avoiding a sudden For Asia, this means that pol- subdued price increases we seen in other emerging mar-

32 Gulf Property OPINION

Economicket countries outside of Asia. SuccessFor example, in India, only cent of the population uses There seems to be a flatten- about 46 percent of male mobile banking services. ing of the Phillips Curve adults from the poorest quin- Clearly, there is enormous linked to integration in global tile of the population have a potential to deepen financial value chains and automa- Digital financial formal account. That com- inclusion in the Asia. There tion. These factors weaken services have pares with 79 percent in the are several steps that coun- labor’s bargaining power. richest quintile. This disparity tries can take to address the Looking ahead, our find- expanded recently in is even more pronounced issue: ings suggest that inflation many countries, when measured by use of First, strengthening such may rise in Asia as commod- including electronic mobile transactions (a four- infrastructure as credit bu- ity prices rise and low infla- fold difference), or borrowing reaus, asset registration, tion in advanced economies banking, mobile from a financial institution payment systems, and mi- reverses as monetary policy banking, and mobile (about a threefold differ- crofinance institutions would is normalized. Weaker re- ence). lower the costs of financial gional currencies could also money. We have seen Gender disparities also re- services. Second, countries become a factor. On the notable growth in main significant, especially in need to allocate adequate other hand, it is not clear South Asia. There, less than resources to expand internet what the long-term impact of Bangladesh, 40 percent of women have a and mobile phone connectiv- technological change will be Indonesia, and bank account compared with ity. Third, in some countries, on prices. Mongolia. In Pacific nearly 60 percent for men. liberalization of the telecom- So, central banks should Our research also shows a munications and internet in- be vigilant about imported in- island countries, wider range of financial inclu- dustries would help bring flation, and exchange rate geographical sion across Asian countries down cost and improve serv- flexibility can help provide than within other regions. ices. useful insulation. It will be im- dispersion represents While some Asian countries In conclusion, Asia needs a portant to strengthen mone- a major obstacle to are at the forefront of finan- concerted effort to build pol- tary policy frameworks and cial inclusion, others are only icy buffers that can weather improve central bank com- providing financial able to provide access to unexpected storms. It needs munications to increase the services. basic financial services. The strong monetary policy role of expectations in driving largest disparity is in access frameworks and central bank inflation — and keep those to ATMs or formal banking communications efforts to re- expectations anchored to tar- services. spond and adjust to an un- gets. Digital financial services certain global environment. have expanded recently in Finally, there must be an hances the effectiveness of many countries, including understanding of the obsta- Financial macroeconomic policies. electronic banking, mobile cles to wider financial inclu- Several studies show that fi- banking, and mobile money. sion, and the ways that Inclusion nancial inclusion strengthens We have seen notable technological change can Low inflation is generally the interest rate channel, growth in Bangladesh, In- help make this inclusion pos- thought to be good for low-in- making monetary policy a donesia, and Mongolia. In sible. These issues are inter- come households. But there more effective tool. Pacific island countries, geo- linked: the policies that is another issue relevant to Asia-Pacific countries have graphical dispersion repre- address them can help make the poor that is relevant in made considerable progress sents a major obstacle to the Asia-Pacific region more assessing Asia economic widening access to financial providing financial services. secure as it builds upon an prospects. That issue is fi- services and improving the So it is notable that in extraordinary legacy of eco- nancial inclusion — the final quality of financial products Samoa, mobile products nomic success. But we sim- topic I would like to focus on available across populations. have proven popular. ply cannot take that success today. Financial inclusion in Asia’s Interestingly, mobile bank- for granted. IMF research has shown emerging markets is in line ing is one area where most There will be many chal- that economies that reduce with other regions. But Asia’s Asia-Pacific countries lag lenges in the coming years. income inequality are posi- low-income and developing sub-Saharan Africa. While Some can be anticipated, tioned to achieve sustained countries actually show Asia leads in traditional and some inevitably will take levels of growth. So, targeted wider accessibility. banking infrastructure, it is us by surprise. Our purpose policy action to promote fi- Nonetheless, the gaps are far behind Kenya, Uganda, must be to work to tackle nancial inclusion is essential significant within countries — Tanzania, and Zimbabwe in them in a way that ensures to poverty reduction. between rich and poor, urban mobile transactions. In those strong, sustained and inclu- Financial inclusion also en- and rural, men and women. countries, more than 70 per- sive growth. g

Gulf Property 33 OPINION ReformsReforms toto boostboost

DubaitheDubai Dubai World Trade Cen- realreal estateestatetheir own use or rental pur- tre to cut companies’ regis- poses. tration fees in free zones – Real estate While Indians remain the will help smaller companies biggest foreign investors in to survive and others to ex- transactions Dubai’s real estate, money pand business. increased by Dh1 flowing in from China, Cen- The three-pronged stimu- tral Asia, Africa and the Mid- lus programmes, undertaken billion in May 2018, dle East will drive the growth by the authorities, will give a up from April 2018. in the real estate sector major fillip to real estate, con- going forward. With prices struction, information tech- If we take this as an coming down further, they nology, small and medium indicator, then it would see the higher return enterprises sectors. In addi- looks like that of 6-8 percent per year as a tion, these bold measures motivation for investing in along with the easing of liq- investment is Dubai’s real estate. SAILESH JATANIA uidity through the Dh50 bil- coming back to the Land and property transac- Chief Executive Officer, lion package announced by tions value declined to Gemini Property Developers Abu Dhabi will help banking market, slowly.... Dh57.9 billion in the first and manufacturing sectors quarter of 2018, down from while considerably easing Dh81 billion recorded in the pressure on business com- – Sailesh Jatania corresponding period last munity. year. This is one of the The icing on the cake was steepest declines in transac- the announcement on re- SMEs so that they could tion levels seen in recent leasing Dh14 billion back into come out of the current situ- years. However, on a month- the economy stuck as de- ation. to-month basis, real estate transactions increased by t is a well-known fact posits for labourers’ employ- In the real estate market, ment and bank guarantees – which is adequately regu- Dh1 billion in May 2018, up that industries such as in addition to the mandatory lated now, these decisions from April 2018. real estate and infra- insurance scheme of Dh60 will have a very positive im- Dubai recorded in excess structure are signifi- per worker. pact. The current low-price of Dh17 billion worth of real cantly influenced by These decisions could not environment along with the estate transactions in May, Government decisions and have come at a more appro- new reforms announced by based on figures published policies. priate time, when high cost of the government will help by the Dubai Land Depart- IThe recent series of re- living and higher cost of bring back home buyers and ment (DLD). The figure in- forms announced by the doing business had started investors. creased from around Dh16 UAE federal government au- to take its toll on the small With market shifting to- billion in April. thorities as well as local gov- and medium enterprises wards affordable homes, we If we take this as an indica- ernment bodies – including (SMEs) who are finding it in- believe, the end-users are tor, then it looks like that in- the landmark reforms to creasingly difficult to manage now gradually moving to- vestment is coming back to allow 100 percent foreign the cash flow – or lack of it. wards buying properties. As the market, slowly. However, ownership in companies and These reforms now set a ticket size is reducing, a one- we need to wait a few more a 10-year residency visa for very convenient environment bedroom apartment is cur- months to see if this is a investors and high-quality for businesses. However, rently offered by some of the trend. professionals – will go a long what is missing is the lack of developers just under half a With an end to the Syrian way in boosting investor con- credit – loans to SMEs. million and two-bedroom and Yemeni conflict on sight fidence that will have a pro- Small and cash-strapped apartments at Dh650,000 to and a resurgence of oil price, found impact on the real businesses now need fund- Dh800,000 bracket. there are multiple reasons for estate market. ing by banks – that will help If finance is available more all of us to be hopeful. Fol- Additionally, various au- them bounce back. The au- easily, – the market will pick lowing the usual quiet sum- thorities’ announcements to thorities and lenders could up fast as it will encourage mer months, we hope to see reduce fines and fees – in- work together to gradually many families with regular in- the light at the end of the tun- cluding the latest decision by open up the liquidity tap for come to buy homes either for nel. g

34 Gulf Property OPINION How to Manage

Debtebt Burden Ratio Burdenfurther facilities. essentialRatio measures to fix the (DBR) is crucial Bank expects every re- score from bad to good or equation when one sponsible customer affirm all average to good. For a broad needs a loan from the liability facts and disclose idea of what your DBR might any financial institu- the credit cards owned by look like to banks, divide reg- tions, as it helps to determine them. The credit cards are ular expenses by the total if the applicant can borrow also taken into contemplation monthly gross income. Or moneyD or obtain credit. however they only under- use this: DBR equals to (per- It is indeed essential digit write 5 per cent towards the sonal or mortgage loan pay- which the banks use to DBR based on the credit ment, car loan repayment, DHIREN GUPTA Managing Director screen loan applications and card limit. Today debt burden other liability payments plus 4C Mortgage Consultancy to judge the fitness of the ratio is the main aspect that 5 percent of total credit card buyer to settle up the is taken into attention while limits)/monthly income, and percent. amount, which is based on the loan is applied for the the figure obtain will indicate If he/she can afford and the current revenue or in- mortgage, personal loan, Is- your DBR ratio. can increase the total repay- come and the debts ratio. lamic financing, car loan or ment spending to Dh9,000 As per the UAE Central any type of loan. each month, the ratio will in- Bank regulations, the maxi- Reducing DBR crease to 50 per cent. Like- mum DBR for anyone in the Once you have understood wise, the DBR ratio will surge country cannot surpass more Assessing DBR the debt burden ratio, you but eventually once the liabil- than 50 per cent. Moreover, It is simple to identify your can start sinking it. There are ities paid off, the ratio will the Banks carry out a stress debt to burden ratio. Identify different ways to maintain pass down to zero per cent test on applicants while cal- outgoing regular debt which healthy DBR. due to no accountabilities. culating their debt burden in includes your car loan, exist- Trying to make regular or DBR is certainly essential order to abolish the chances ing mortgage repayment even balloon payments to financial equation for any of overindebtedness during amount, student loan or any your existing debt can be a borrowing henceforth calcu- the repayment. personal loan. great way to reduce the lia- late wisely if opting to buy To identify if you qualify, the Take a notebook, calculate bility. In case, you have dif- credit card or applying for bank will consider DBR, all the existing credit cards ferent types of debs, try to any loan. Always give the which includes your credit re- limits and then sum with 5 consolidate your debt, by ob- close watch to the EMI and port, monthly income and percent divide that equation taining the zero per cent bal- repayment time and ensure how much you can cumulate with your monthly income- ance transfer products. you are able to repay for the upfront payment. In you can broadly identify your Adding other part-time in- smoothly without any extra UAE the banks use the cus- debt burden ratio. come source or a salary hike burden. tomary standards for loan Today in the credit report in your current or new em- Study the product and give consent. To ascertain the they identify your debt to bur- ployment, can add value to a thought on comparing in- loan requirement, the bank den ratio. One can request the financial basket, further- terest rate with lenders to studies the 5Cs in common: the copy of his/her credit re- more, it can also be a way to make sure you end up with collateral, capital, credit his- port from the Al Etihad Credit shrink the current debt bur- ideal product solution. tory, character, and the cash Bureau by submitting some den ratio. Healthy DBR gives you the flow. minimal fee along with the Once you start repaying negotiation power with the When one applies for a identification documents. In the existing debt, understand lenders as well. loan, the banks check the UAE, before lending compul- that the debt to burden ratio Likewise, retain good credit debt-to-burden ratio and sory, the bank checks the will surge as a bigger portion score and uphold 50 per cent based on it equation they credit report credentials of of your income will clear off less debt burden ratio if you calculate – how much appli- every loan applications and the current liabilities. For ex- plan to utilise some more cants can borrow and how consequently they identify ample – if the borrower’s in- credit facilities from the mar- much actually entitled for. the potential value of each come stands at Dh18,000 ket, indeed all this contribute However, if the DBR ex- case. per month and he/she is to your quick approval ceeds 50 per cent of the Credit reports summary as- spending Dh6,000 towards process and give access to monthly income financial in- sist every individual to under- debt repayment each month, the better product as per the stitution will not be providing stand their liability and take the debt burden ratio is 30 requisite g

Gulf Property 35 FOCUSISSUES

Reforms Reforms toto push upup UAE economic growth

Prime Minister of the UAE nesses to recover approxi- the workers' entitlements in Gulf Property and Ruler of Dubai, adopted mately Dh14 billion, repre- terms of end of service ben- Exclusive a number of strategic deci- senting the value of current efits, vacation allowance, sions with regards to foreign guarantees paid by employ- overtime allowance, unpaid workers’ insurance in the pri- ers, which will enable them wages, worker's return ticket he UAE Government vate sector, as well as a leg- to further invest in the devel- and cases of work injury, in has recently an- islative package of visa opment of their business. which the insurance cover- nounced a number of facilitations. The system also enhances age amounts to Dh20,000 sweeping reforms in- According to the an- the ease of doing business in per worker. cluding the abolishing nouncement, the previous the UAE, which effectively Once implemented, a busi- of the Dh3,000 employee mandatory employees’ secu- contributes to market pros- ness owner could recover bank guarantee that will help rity deposit of Dh3,000 per perity and growth,” a govern- the captive money held as Tbusinesses, consumers and worker is now replaced by a ment statement said. deposit and use for running will have a profound impact new insurance that cost only The new system aims to the business. on the overall UAE economy, Dh60 annually per worker. achieve a wider coverage of The cabinet also adopted a officials say. “The newly created the rights and entitlements number of visa facilitations The cabinet, chaired by His scheme secures workers’ for the workers. The value of for visitors, residents, fami- Highness Sheikh Mo- rights in the private sector the insurance policy in the lies and people overstaying hammed bin Rashid Al Mak- and reduces the burdens on new system is Dh60 per year their visa to cater for a wider toum, Vice-President and employers. It allows busi- for each worker and covers segment of the society. The

36 Gulf Property FOCUSISSUES

Its MENA economist, Jean Michel Saliba, said that UAE non-hydrocarbon economic activity is likely to turn the corner in 2019. "We estimate Expo 2020 projects, the boost to corporate profits from the revised worker insurance scheme, the Abu Dhabi fiscal stimulus and ADNOC downstream expansion plans could add about 1 percent to UAE real non-hydrocarbon real GDP growth next year. "Still, reform details and im- plementation timeline need to be further fleshed out. Over the medium term, we expect UAE non-hydrocarbon real GDP growth to increase to about 3.5 percent, from 2.8 percent in 2018 and 1.9 percent in 2017," he added. The Bank of Merrill Lynch also said that overall UAE real GDP growth is set to rise to 1.9 percent in 2018, from 0.5 percent in 2017, adding that the headline figure Cabinet approved a new leg- package to make it further business establishments in masks a likely stabilisation in islative package, including a easier for businesses to clear Dubai from all fines imposed hydrocarbon real GDP fol- review of the current resi- fines and renew their lion them and granted them lowing a contraction in the oil dency system to allow a two- censes. The package will time till end of 2018 to renew sector in 2017 due to the year extension of the allow businesses to pay their their licenses.” OPEC deal. residency period for the de- fees and fines in easy instal- The latest reforms, in addi- The research also said that pendents of their parents ments, freeze their trade li- tion to the Expo 2020, eco- the recently announced for- after finishing their university cense for a year and seek an nomic reforms, Abu Dhabi's eign ownership law should studies. amicable settlement with $13.6 billion stimulus, and boost foreign direct invest- Dubai Government’s trade DED on commercial viola- ADNOC's expansion could ment prospects from a low licensing body – the Depart- tions,” it said in a statement add about 1 percent to the base, as FDI stood at just ment of Economic Develop- issued on Saturday. UAE's non-oil real GDP $10.3 billion (2.7 percent of ment (DED) – said, it has “The service package is growth in 2019, according to GDP) in 2017, but the scope exempted companies and part of enabling businesses new research by Bank of of deregulation is critical. business establishments in to overcome obstacles and America Merrill Lynch said A new decision has also Dubai from all fines imposed benefit from a credit facility structural reforms support been approved to exempt on them and granted them that would allow them to potential growth through transit passengers from all time till end of 2018 to renew maintain their competitive- higher human capital, popu- entry fees for the first 48 their licenses. ness. DED had recently ex- lation, real estate demand hours. Transit visa can be “The DED launched a empted companies and and competitiveness. extended for up to 96 hours

Gulf Property 37 FOCUSISSUES

for a fee of only Dh50. Ob- (SMEs) who are finding it in- ation. taining transit visa will be fa- creasingly difficult to manage “Additionally, various au- cilitated by a number of the cash flow – or lack of it,” thorities’ announcements to express counter at the pass- said Sailesh Jatania, Chief reduce fines and fees – in- port-control hall across UAE Executive Officer of Gemini cluding the latest decision by airports. Property Developers. the Dubai World Trade Cen- In the same context, the “These reforms now set a tre to cut companies’ regis- Cabinet adopted a decision very convenient environment tration fees in free zones – to grant people overstaying for businesses. However, will help smaller companies their visa a chance to leave what is missing is the lack of to survive and others to ex- the country voluntarily with- credit – loans to SMEs. pand business. out a ‘no entry’ passport Small and cash-strapped “The three-pronged stimu- stamp. businesses now need fund- lus programmes, undertaken “These decisions could not ing by banks – that will help by the authorities, will give a have come at a more appro- them bounce back. The au- major fillip to real estate, con- priate time, when high cost of thorities and lenders could struction, information tech- living and higher cost of work together to gradually nology, small and medium doing business had started open up the liquidity tap for Sailesh Jatania, Chief Ex- enterprises sectors. In addi- to take its toll on the small SMEs so that they could ecutive Officer of Gemini tion, these bold measures Property Developers and medium enterprises come out of the current situ- along with the easing of liq-

38 Gulf Property FOCUSISSUES

year 2017, and approved an additional financial plan for the general budget of the Union for the fiscal year 2018. The cabinet adopted an agreement between the Government of the UAE and the Government of the Russ- ian Federation on the mutual exemption of visa requirements for citizens of the UAE and the citizens of the Russ- ian Federation, thus opening new horizons for mutual tourism, investment and trade. The cabinet also adopted an agreement between the Government of the United Arab Emirates and the Inter- national Exhibitions Bureau on the privileges and benefits accorded to official partici- pants in Expo2020. The Cabinet ratified two agreements on air transport services between the Gov- ernment of the UAE and the Government The Republic of Guinea, and the Government of the Federation of Saint Kitts and Nevis. The Cabinet endorsed a uidity through the Dh50 bil- stamp for two years given various sectors in line with number of agreements on lion package announced by that they provide a valid re- the Government's social de- the mutual protection of in- Abu Dhabi will help banking turn ticket. velopment programs for all vestments between the Gov- segments of the society. and manufacturing sectors Equally, in a step aimed at ernment of the UAE and the while considerably easing simplifying the process and In the same context, the Government of the Republic pressure on business com- easing the financial burden Cabinet adopted the decision of Rwanda, the Government munity.” on individuals wishing to ad- to host the headquarters of of the Republic of Uganda A new 6-month visa will be just or renew their visa, they the Asian Paralympic Com- and the Government of the introduced for job seekers can now do so for a fee with- mittee in the UAE to serve as Republic of Colombia. As who overstayed their visa but out having to leave and re- a unique sports hub in Asia well as the endorsement of wish to work in the country. enter the country. and to provide training conventions on the avoid- The temporary visa en- On the other hand, the courses and workshops for ance of double taxation and hances the UAE’s position as Cabinet adopted a resolution ‘People of Determination’. the prevention of financial a land of opportunities and a on empowering ‘People of In the regulatory affairs, the evasion in respect of taxes destination for talents and Determination’ and enabling UAE cabinet approved the on income and capital with professionals. them to access the job mar- amendment of the statutes of the Government of the King- As for Individuals who en- ket. The resolution provides the Al Etihad Credit Bureau. dom of Saudi Arabia, the tered the UAE illegally, they them with the necessary It also adopted a draft law on Government of the Republic will have the chance to leave support to obtain equal em- the adoption of the unified of Rwanda, and the Govern- voluntarily with a ‘no entry’ ployment opportunities in final account for the fiscal ment of Turkmenistan. g

Gulf Property 39 COVERSTORY RasRas AlAl KhaimahKhaimah getsgets Dh15bnDh15bn investmentinvestment Gulf Property mostly owned by foreigners kilometres landmass that tutions,” His Highness – since 2000, His Highness generate around $11 billion Sheikh Sheikh Saud bin Exclusive Sheikh Sheikh Saud bin (Dh41 billion) gross domes- Saqr Al Qasimi, Member of Saqr Al Qasimi, Member of tic product (GDP). the UAE Supreme Council as Al Khaimah, the the UAE Supreme Council “In a relatively short period and Ruler of Ras Al northernmost of the and Ruler of Ras Al of time, Ras Al Khaimah has Khaimah, told delegates at a seven states that Khaimah, said. changed dramatically, from a recent conference. make up the United Ras Al Khaimah, the last of quiet, agricultural town, “Our emirate, our people, Arab Emirates the seven emirates to join where formal education was our economy and our indus- (UAE), has attracted more the UAE federation, has a hard to come by, to a thriving tries have been on quite an than Dh15 billion ($4.1 bil- population of nearly 350,000 city with a diverse economy incredible journey. In Ras Al lion)R worth of investments spread across 2,478 square and great educational insti- Khaimah, if we can do

40 Gulf Property COVERSTORY

something positive for busi- companies in Ras Al ronment for foreign investors tor to the economy of Ras Al ness, we do it. Ask any of the Khaimah has reached nearly to invest, produce and grow Khaimah and the UAE. We thousands of multinational 37,000, including 14,000 as well as create employ- now host 14,000 companies companies from over 100 registered with RAKEZ. ment that creates domestic within our industrial clusters countries that have set up As the emirate might not consumption demand. and business parks where here,” Sheikh Saud said. emerge as a major oil pro- It is perhaps the only state more than 40,000 profes- “Thanks to them, the volume ducer, RAK has instead had in the region that assembles sionals, workers and busi- of foreign investment in Ras to concentrate on developing automobiles – Ashok Ley- ness leaders work,” Ramy Al Khaimah since 2000 has its non-oil and industrial sec- land buses – and helps the Jallad, Group Chief Execu- exceeded Dh15 billion, and tors. It opened the UAE’s UAE reduce its dependence tive Officer of RAKEZ, tells there are more than 150 first cement company in the on imported buses. Gulf Property in an exclusive large industrial companies early 1970s and is now the The Dh15 billion worth of interview. operating here.” UAE’s largest producer of investments attracted by “One of our key achieve- The emirate, home to RAK cement. Ras Al Khaimah include the ments was to be able to at- Ceramics – the world’s The transformation of the 14,000 companies regis- tract a large sum of largest ceramic tiles manu- economy of Ras Al Khaimah tered with its two free zones investment into manufactur- facturer, and Julphar, one of has largely been a vision-dri- – Ras Al Khaimah Invest- ing sector that now con- the largest medicine produc- ven economic miracle where ment Authority and Ras Al tributes more than 26 ers in the Middle East – opportunities were created Khaimah Free Trade Zone percent to the gross domes- hosts more than 1,000 in- by the government’s eco- (RAKFTZ) – both merged tic product (GDP) of Ras Al dustries in a number of in- nomic diversification pro- into a new entity in 2017 – Khaimah. dustrial areas managed by gramme and its ability to RAKEZ. “We are one of the most ef- Ras Al Khaimah Economic expand the infrastructure “RAKEZ is now a major ficient and cost effective des- Zone (RAKEZ). and legal reforms as well as economic powerhouse in the tination where doing The number of registered creating an enabling envi- region and a major contribu- business is as easy as ‘plug

Jebel Jais mountain range is one of the best tourist spots in the UAE and the government of Ras Al Khaimah is undertaking a number of initiatives to boost tourism in the emirate

Gulf Property 41 COVERSTORY

and play’,” he says, adding our success is that we re- tomised solutions so that Moody’s Investors Service that a trade license takes a main very cost-effective in they could be more effective projected a stable outlook for day to be issued. business licensing, office in terms of managing logis- Ras Al Khaimah, with the “If all necessary papers are space rents and other costs tics, business, marketing and emirates’ economic growth in order and submitted in – compared to other free other aspects of the busi- expected to pick up gradually time, an investor could get a zones,” Jallad says. “In most ness.” in the coming years and is trade license within a work- cases, we are 25 to 50 per- fiscal position to remain ing day and an industrial li- cent cost effective in our fees strong in the years leading to cense in 5-9 working days, and costs, that makes us one RAK Economy 2021. depending on the sector that of the most sought after in- The erstwhile quiet town of According to Moody’s, the industry belongs.” vestment destinations in the Ras Al Khaimah is about to ratings are supported by RAKEZ adds about 2,000 region. undergo a sea change in RAK’s “strong fiscal position, new companies in its registry “The other important factor economic activities as most low debt level, and the ad- every year and the number is is our customer-centric ap- government entities are vantages that RAK derives going to accelerate in the proach. Instead of asking the gearing up to execute the from its membership of the coming months and years investors to follow our pack- emirate’s Vision 2030 – to UAE, including low external due to its aggressive market- ages, we also ask them to transform its economy as a risks”. ing drive, as part of Vision share their short-term and dynamic and vibrant invest- While Moody’s estimated 2030. long-term business plans ment destination. that RAK’s economic growth “One of the key reasons for and we then offer cus- Credit rating agency slowed to 1.5 percent in

42 Gulf Property COVERSTORY Al Marjan Island is currently attracting billions of dollars investment in hotels, real estate and tourism projects activities in the free trade zones, contributes 36 per cent to RAK's GDP, followed by wholesale and retail trade and the quarrying industry at nine per cent and eight per cent respectively. In an exclusive interview with Gulf Property, Ramy Jal- lad, Group Chief Executive Officer of Ras Al Khaimah Economic Zone (RAKEZ), highlighted his thoughts on a number of issues. Excerpts:

Gulf Property: What is the current state of Ras Al Khaimah Economic Zone (RAKEZ)? Ramy Jallad: Following our merger of Ras Al Khaimah Investment Authority (RAKIA) and Ras Al Khaimah Free Trade Zone (RAKFTZ) in April 2017, we have successfully transformed our organisation, streamlined our processes, back office integration and overall consolidation within a year. RAKEZ now hosts roughly 14,000 businesses active in 50 economic sectors including 600 industries that employ 40,000 professionals contributing to the UAE economy. The 14,000 com- 2017, it believes that eco- government revenues ex- “We affirm our ratings on panies represent investment nomic growth will accelerate pected to increase to about RAK at ‘A/A-1’. The stable from more than 100 coun- to average about 2.5 percent 19 percent of GDP in 2018 outlook reflects our expecta- tries. between 2018 and 2021. from 17 percent the previous tion that RAK's economic In April this year, we com- Additionally, Moody’s ex- year. The report also noted performance will improve pleted a year of the merged gradually over the period to pects a budget surplus of that gross debt has been de- entity, RAKEZ. In a year, we about 1.5 percent of GDP in clining in absolute terms 2021, supported by a recov- have witnessed hectic activi- 2018, up from 1 percent of since 2013, and stands at an ery in domestic demand re- ties in all our business cen- GDP in 2017, a much estimated 20 percent of GDP gionally and a high level of tres – with renewed interest weaker outturn than the 4 for 2018. By 2021, consoli- capital spending in the larger amongst investors – to invest percent of GDP recorded in dated gross debt is expected emirates,” S&P said in Janu- with RAKEZ. 2016. Between 2018 and to decline to about 17 per- ary this year. In its first year, RAKEZ suc- 2021, Moody’s expects fiscal cent of GDP. “The stable outlook reflects cessfully signed with Unikai surplus to average approxi- Meanwhile, Ras Al our assumption that RAK's Foods, one of the fastest mately 2 percent. Khaimah will continue to economic growth will pick up growing consumer goods The Moody’s outlook also record fiscal surpluses and gradually in the coming companies in the MENA re- noted that the implementa- maintain its low debt level, years and its fiscal position gion, to establish its largest tion of value-added tax (VAT) according to another credit will remain strong over the food storage and distribution will have a positive economic rating agency Standard and period to 2021.” facility in the northern re- benefit for the emirate, with Poor’s (S&P). Manufacturing, including gions.

Gulf Property 43 COVERSTORY

“RAKEZ is now a major economic powerhouse in the region and a major contributor to the economy of Ras Al Khaimah and the UAE. We now host 14,000 companies within our industrial clusters and business parks where more than 40,000 professionals, workers and Ramy Jallad, Group CEO, Ras business leaders Al Khaimah work....” Economic Zone

– Ramy Jallad, Group CEO RAKEZ

Hesburger, the largest fast leading supplier of concrete tries in RAKEZ have wit- nounced by Ras Al Khaimah food chain in Finland and the connections and composite nessed remarkable growth. government. We are now un- Baltic states, established structures, which acquired The general trade sector has dertaking a number of initia- Hes Pro Foods FZE, its fast an 11,500 square metres in- seen a remarkable 20 per- tives that will boost food manufacturing sub- dustrial plot in the Al Hamra cent growth. Whereas, investment in to Ras Al sidiary. Bin Touq Fire and Industrial Zone; and Auto RAK's media companies Khaimah and help accelerate Safety Company will distrib- Bus Laser, a newly-estab- have increased to reach 11 the economic growth. ute its fire protection systems lished commercial vehicle percent, with its most signifi- Some of our key initiatives and fire alarm systems from parts manufacturer. With cant achievements being the include, revamping the RAKEZ; and Chocolala, the around Dh40 million in in- entry of the RAK Radio media cluster – RAKEZ Estonian handmade choco- vestments, Auto Bus Laser Broadcasting Authority (RAK Media Zone – and create late company established a acquired a vast 20,100 Radio) to its Media Zone in Al new opportunities for the factory in RAKEZ to cater for square metres plot in the Al Hamra. media professionals. Simi- occasions of all sorts. Ghail Industrial Zone to con- larly, we have created RAKEZ also signed with struct a state-of-the-art facil- Could you elaborate on the RAKEZ Academic Zone to Ginox UAE LLC, a company ity that will house the next new initiatives that you seek greater investment in specialised in the manufac- generation of laser ma- have taken recently? knowledge and education turing of construction metal- chines. As a business enabler, and we have seen a greater work and metal cutlery; Since its establishment, a RAKEZ is now gearing itself interest in our new free zone Peikko Group Corporation, a number of sectors and indus- up to realise Vision 2030 an- facilities.

44 Gulf Property COVERSTORY

Ramy Jallad amy Jallad is the Group Chief Ex- ecutive Officer of Ras Al Khaimah Economic Zone (RAKEZ). His role is to develop and drive the strate- Rgic growth creating a thriving commercial and industrial business hub that attracts and wel- comes investors from all around the world. Ramy Jallad has over 25 years of professional experience, where he has developed and led various commercial and industrial free zones, business parks and mixed-use real estate developments. Previously, Ramy Jallad held various key leadership positions in both government and private enterprises, such as: Vice President – Free Zone & Properties for Abu Dhabi Airports Company, Execu- tive Director of Business Development & Customer Services for Dubai Tech- nology and Media Free Zone (TECOM), and Gen- eral Manager of Caltex Oil Company. He is fluent in English In line with its ongoing in- universities, have also joined also opened a service center and Arabic. He holds a terest in the educational sec- the Zone. in the Al Hamra area to pro- Bachelor of Science de- tor, the RAKEZ Academic The Sarhad University of vide all kinds of facilities and gree in Mechanical Engi- Zone succeeded in attracting Science and Information high-end customer services. neering. He is also a Lead elite universities, colleges Technology, accredited by Many governmental entities Assessor by the European and schools, such as the the Higher Education Com- joined the Service Center, Foundation for Quality SBS Swiss Business School, mittee of the Republic of which provides customers Management and a certi- which is dedicated to prepar- Pakistan, provides education with access to various serv- fied trainer in sales, mar- ing students for global econ- in the fields of engineering, ices in one centralised place keting, and customer care omy professions and to pharmaceuticals, computer, to streamline the efficiency as well as people man- providing specialised pro- management and social sci- and completion of govern- agement. g grams in international man- ences in its RAKEZ branch. ment transactions. agement, finance and In all these facilities, we are The Department of Eco- marketing among other also creating room for free- nomic Development is Affairs, Ras Al Khaimah areas. St. Mary Catholic Sec- lance professionals who among the governmental en- Courts, the Environmental ondary School and the Uni- could work from a remote lo- tities present, alongside the Protection and Development versity of West London, cation with a freelance li- Department of Civil Defense, Authority and the General Di- which have the highest aca- cense – one way of offering the Ras Al Khaimah Cham- rectorate of Residency and demic rating in the UK and customized solutions. ber of Commerce and Indus- Foreigners Affairs. are among the top British Earlier this year, RAKEZ try, the Ministry of Foreign RAKEZ launched Mazeed

Gulf Property 45 COVERSTORY

Head offices of RAKEZ

Services, a unique service RAKEZ with 20 percent of its pose – to accelerate invest- space, industrial space, lo- for its customers that aims to operating entities in a wide ment in to Ras Al Khaimah. gistics park, labour accom- meet all their needs and re- range of Indian-based sec- Following the merger, one modation with community quirements. It also singed tors, including manufactur- could now see the benefits of facilities such as recreation, with ‘Sahtak’, the new and ing, trade, logistics, our combined efforts. healthcare, retail and enter- unique healthcare e-portal to education, tourism, services Following the merger of the tainment – offering inte- provide RAKEZ clients and and real estate. two entities, how are you re- grated solutions to investors their families with a range of structuring the businesses in – where people can work, cost-effective health insur- Why did you merge RAKIA the free zones? live and enjoy life. ance plans. and RAKFTZ? We have a land bank of 30 We are currently working As part of our overseas It was part of the govern- million square metres, on a new development strat- marketing and business de- ment’s strategic decision to spread across a number of egy that will incorporate all velopment, RAKEZ opened create greater synergies industrial areas – including Al these concepts with a holistic a new office in India at the from both the successful en- Hamra and Al Ghail industrial approach. This new strategy strategically significant Ban- tities and benefit from their areas as well as other busi- is expected to be completed dra Kurla Complex in Mum- combined strength. ness parks and facilities. We by the end of this year. bai, in order to strengthen We now have combined are currently in the process our relationships with over- team strength of about 500 of master-planning the indus- How much are you invest- seas customers. India is a professionals – who work as trial zones and business ing in development activi- very important market for one team with a single pur- parks incorporating office ties?

46 Gulf Property COVERSTORY RAKEZ as Al Khaimah logistics, academic, media Economic Zone and many more. (RAKEZ) is an au- RAKEZ currently hosts thority established over 14,000 companies by the government from entrepreneurs and of Ras Al Khaimah to over- startups to SMEs and man- see, regulate and consoli- ufacturers covering over 50 Rdate the services, facilities industries from over 100 and zones of Ras Al countries. Through its five Khaimah Free Trade Zone specialised zones including (RAK FTZ) and Ras Al RAKEZ Business Zone, Al Khaimah Investment Au- Hamra Industrial Zone, Al thority (RAKIA), and serves Ghail Industrial Zone, Al Hu- their respective clients. Es- laila Industrial Zone and tablished in 2017, RAKEZ RAKEZ Academic Zone, it builds on 17 years of con- offers a wide range of cus- sistent value generation by tomisable and cost-effective RAK FTZ and RAKIA. solutions for existing clients RAKEZ offers its clients and potential investors. All easy access to local mar- clients have access to three kets of the UAE, in addition local offices in Ras Al to growing markets of the Khaimah, Dubai and Abu Middle East, North Africa, Dhabi, and international of- Europe, and South and fices in India, Turkey and Central Asia. Germany. The authority offers free A leading economic zone, zone and non-free zone li- RAKEZ, aims to continue cences through RAK FTZ attracting diversified invest- and RAKIA for companies ment opportunities that will operating in diverse industry contribute to the economic sectors including, manufac- growth of the emirate of Ras g turing, consulting, trading, Al Khaimah.

working days if the investor the industrial sector and the could act fast on the choice rest are SMEs. of plot and other details. In terms of nationality, the Besides, we are a cost-ef- biggest investors are the In- fective free zone. An investor dians, with over 3,000 com- Our annual capital expendi- built-in our system. can save a lot – between 25- panies. ture in developing and ex- However, the core differ- 50 percent of the cost in set- They are followed by the panding capacity is about ence is in trying to under- ting up and running a British investors, with 1,000 Dh300 million. However, the stand an investor’s needs – business – that helps entre- plus companies, and then by new development strategy both short term and long preneurs to sustain a busi- Pakistanis at nearly 750 will require greater invest- term. An investor might want ness at the initial stage after companies. ment in developing these fa- to set up an industry eventu- incorporation. Local investors or Emiratis cilities and we are talking in ally. However, he might want are also ranks among the top billions of dirhams. to start small – with just a Could you give us the 5 population with around 670 small office to test the mar- breakdown of the 14,000 companies, followed by How is RAKEZ different ket. We work with the in- active companies in French investors with almost from other economic or vestor very closely and help RAKEZ based on sectors 630 companies. free zones? him realise his plans in every and nationalities of own- Among other businessmen Although we have standard steps all the way till he opens ers? we have in our community investment packages for the industry. As we speak, RAKEZ is are the Germans, Jordani- small businesses, ware- Investors could set-up a home to nearly 14,000 com- ans, Americans, Canadians, houses and industries, we company within one working panies coming from different Russians, Italians, Dutch, also customise our offerings day – if all the relevant docu- parts of the globe. Of the al- Australians, and so much to investors, based on their ments are in place. An indus- most 14,000 clients in our more. Our investors come needs. We have flexibility trial license takes up to 9 portfolio, over 600 are from from over 100 countries.

Gulf Property 47 COVERSTORY

New waterfront projects are expected to attract massive investments into Ras Al Khaimah in the coming years

How many companies did However, in view of the company has set up their or a service company in your organisation at- changing economic environ- station in RAKEZ Media RAKEZ can hire one of our tracted in 2017 and 2018 – ment, we are in the process Zone where they installed publishing companies in the so far? of revamping the media sec- state-of-the-art equipment Media Zone. The media In 2017, we managed to at- tor through RAKEZ Media that enabled them to broad- community that we are creat- tract more than 3,250 com- Zone. cast from analogue to digital. ing just got more interesting panies. And for 2018, as of We are continuously en- Our vision for the RAKEZ actually, especially with the date, we have already regis- hancing the infrastructure of Media Zone is to build a vi- launch of our newest offering tered almost 1,400 compa- the RAKEZ Media Zone. In brant community of creative – the Freelancer Permit, nies. fact, we have just finished firms and individuals that em- which caters to media and renovating the Media Zone braces B2B collaboration, education professionals. You are planning to re- building and we are still seeking partnerships for the So, creative companies vamp the media sector. seeking new ways to im- benefit of each other, and that are just starting out can Could you give us the lat- prove the environment we even to work together with get access to our growing est restructuring of the provide to our clients within our companies from other in- population of freelancers in RAKEZ Media Zone? the zone. dustries. the media field, such as jour- We have been very active in We are glad to have wel- Perhaps, one of our indus- nalists, photographers, ac- the media sector through comed our first broadcasting trial companies can work tors, and so much more. RAK Media City – part of our company recently, which is with a video production com- There’s a lot of potential for free zones. RAK Radio. The local radio pany for their corporate video our clients and we are really

48 Gulf Property COVERSTORY Ras Al ods of arid zone cultivation Khaimah have made the emirate one as Al Khaimah, an of the leading agricultural erstwhile quiet agri- producers in the UAE. cultural settlement At a very early age, with more than Sheikh Saud bin Saqr Al 7,000 years of his- Qassimi identified some of tory, is a remarkable eco- the natural resources such nomic success story – that sand, clay feldspar, quartz transformedR itself into a vi- and water – key compo- brant industrial belt and an nents in manufacturing ce- economic hub – in just quar- ramics – to turn around the ter of a century, thanks to its emirate’s economy. So, in visionary leadership. 1991, he established RAK With over 7,000 years of Ceramics to manufacture fascinating history and cul- ceramic tiles from the abun- ture, Ras Al Khaimah is the dant natural resources and perfect getaway from every- created the world’s largest day life. Offering magnifi- ceramic tiles brand and cent landscapes, then started investing the breath-taking coastlines surplus resources in devel- and rich, terracotta desert oping industries and proper- planes, the emirate has ties around Al Hamra area. firmly established itself as There have also been re- the UAE’s most authentic cent efforts to diversify the destination in the Middle emirate’s economy. Since East. Sheikh Saud bin Saqr Al With year-long sunshine Qasimi became crown and 64 kilometres of white prince in 2003, the emirate sandy beaches, just 45 min- has embarked on an ag- utes from the busy metrop- gressive development pro- olis of Dubai, Ras Al gramme, with a particular Khaimah offers an entirely focus on tourism and real unique experience from its estate. neighbouring emirates. Capitalising on its virgin This agricultural society coastline and mountains, also relies on fisheries for RAK has launched several their livelihood. More tradi- mixed-use projects that will tional industries, such as feature five-star hotels, res- fishing and agriculture, con- idential units and resorts. determined to building a empower aspiring sole prac- tinue to play an important Some of the more ambitious thriving community of media titioners by opening them up role in RAK’s economy. In plans include a mountain firms and professionals here to a world of opportunities 1955, the first agricultural resort with an artificial ski in Ras Al Khaimah. while keeping their costs in research centre in the UAE slope and a spaceport to check and offering them the was established there, and host the Middle East’s first Could you elaborate on the support they need to suc- since then, innovative meth- suborbital flights. g freelance package? ceed. Earlier this year, we rolled With the freelancer pack- out the red carpet for the age starting from Dh8,990, With the current economic our fees and service charges UAE’s booming population of RAKEZ proves to be among situation, where most as well as rents of office media and education free- the leading cost-effective trade licensing authorities space accordingly. lancers with the introduction destinations for the nation’s are adjusting their fees Having said that, our prices of its Freelancer Permit. bold freelancers. The pack- and fines with the market and fees remain very com- Leaving the usual 9-5 job age, which is targeted to conditions to help busi- petitive and attractive and we takes a lot of courage and I media and education profes- nesses ride out the eco- update them as and when admire individuals who sionals, includes a two-year nomic hardship. Are you needed. We do everything choose to build their own UAE visa as well as access revising your fees down- needed to support our clients path by becoming free to a shared workstation and wards? – including allowing longer agents. We launched the premium services in a one- We constantly monitor the term payment, removal of Freelancer Permit to help stop shop. market situation and revise fines, etc. g

Gulf Property 49 INTERVIEW Meet Joseph

Gulf Property and raised public profile of than talking about them in Ghossoubcompanies, products and 2.0the press. Exclusive services, does not want to Four years later, his prop- take the advertisement route “We entered the erties are now doing the talk- to promote his real estate ing for him. Here comes oseph Ghossoub, who market under a is famous for giving his venture. Joseph Ghossoub 2.0, the clients the best possi- When it comes to real es- different situation. new innings in his career as tate project marketing, prop- a property developer. ble publicity that money erty developers usually start We needed to I asked him, why he chose could buy and, at the selling what is known as to speak to the press now. height of his career, gave all establish ourselves ‘Artist’s Impressions’ of proj- “Well, we have delivered the major advertising and as a credible ects, the 3-D renderings that what we promised and we publicityJ agencies in the Mid- shows the square foot size developer. The only have happy families living in dle East a run for their of the kitchen, bedrooms, the homes that we built. I money, has not spoken way to do this was the living room, etc and the feel, it’s now appropriate for much about himself and his overall look and feel of the to focus on the me to talk because what we business – for a long time. property that helps the buyer promised is now a reality The ‘Godfather of Advertis- timely delivery of make a decision to purchase and it’s visible. Feel free to ing’ – as he is more fa- the off-plan property. It’s like the project and with come and check these mously known to be – has investing in ‘papers’ rather the promised homes to see for yourself also remained pretty quiet in than the real home – which quality. That’s what we have built and deliv- the market – especially on is usually built years later. ered, the quality, finishing, his real estate venture, aptly The developer then exactly what we did. the designs and the ameni- named ‘G&Co’ that under- spends the investors’ money Since the first ties,” Joseph Ghossoub, standably stands for Ghos- in brand-building and con- Chairman of G&Co, told Gulf soub and Company. struction of the project. project was sold out Property. Four years ago, when his Joseph Ghossoub devel- at launch, we were “We delivered 200 villas at company was building the oped his first major project, the Millennium Estates Dh1.5 billion Millennium Es- Millennium Estates mostly able to start the within Meydan City, worth tates, I asked him why he by the property buyers and construction work Dh1.5 billion, a few years was not talking to the press, investors’ money. ago. This year, we are deliv- including Gulf Property mag- The Millennium Estates and finish them in ering 498 villas – that will azine, he told me, “It’s too were sold out in less than time as payment raise the development value early for me to talk about my two months of the commer- was not an issue...” of the overall project to Dh4 projects when I have not yet cial launch. billion, when completed this delivered any of them. I will He spent very little in year,” he said. “Most of the definitely speak when the branding, advertising and – Joseph villas that we are planning to time is right – that is when marketing exercise, as well deliver this year, have been we start delivering proper- as talking about the project. Ghossoub, sold out.” ties.” During the development Chairman of G&Co In an exclusive interview It was then, I sensed a bit phase of the project, his with Gulf Property, Joseph about his persona. The per- company focused on con- Ghossoub, Chairman of son who helped build brands struction activities, rather G&Co, elaborates his

50 Gulf Property INTERVIEW

Joseph Ghossoub, Chairman of G&Co, which will deliver hundreds of homes to buyers in the next few years

Gulf Property 51 INTERVIEW

thoughts on a number of is- We found out that despite sold out at launch, we were new downtown, Burj Khalifa sues relating to the real es- a sizeable number of deliver- able to start the construction and Business Bay, which is tate markets. Excerpts: ies in the luxury villa seg- work and finish them in time going to become the leading ment, there was still a strong as payment was not an commercial centre. Gulf Property: Most devel- demand in this category. issue. Property buyers were The quality of property, opers are now facing prob- However, due to the fallout of regularly updated on the pricing, payment plan and lems in selling homes – the 2008-09 crisis, investors construction progress and our own reputation in the and you do not seem to and property buyers were the payment installments business world worked for have any problems in sell- hesitant to invest, as they were in place – making it less our success. Besides, the ing. How’s that? were not sure who to trust. stressful. timing was also a factor. We Joseph Ghossoub: When So, we entered the market sold out the project when the we entered the real estate under a different situation. So, what worked for you in market was just recovering sector in 2013, we studied We needed to establish our- the initial sales success, and emerging from the previ- the market well. selves as a credible devel- despite not having a ous crisis and the Dubai The market was just recov- oper. The only way to do this strong record of property Expo bid win revived investor ering from the effects of the was to focus on the timely development and delivery? confidence back then. global financial crisis of delivery of the project and I think the location was a fac- If you remember, the mar- 2008-09. So, we had to be with the promised quality. tor – as you can’t get a better ket was really riding high and very cautious in our ap- That’s exactly what we did. location for a villa community a large number of develop- proach. Since the first project was than Meydan – closest to the ers came back to the market.

52 Gulf Property INTERVIEW

Joseph Ghossoub oseph Ghossoub, a successful Lebanese businessman who made his fortune through advertising industry, is the CEO of the Holding Group, parent Jcompany of Team/Young and Rubicam, Intermar- kets Advertising, ASDA’A Public Relations, Polaris Public Relations, medi- aedge:cia, and Wunder- man. Prior to his real estate career, Joseph led one of the largest advertising and media groups in the Mid- dle East, the Menacom Group, for more than 21 years before resigning as Chairman and CEO in 2015. Under his leadership, Menacom grew into one of the Middle East’s most successful communications groups, with over 900 employees in its network of 37 offices across the MENA markets. Until 2008, Joseph served as Chairman and World President of the In- ternational Advertising As- Most stalled and sick proj- Yes there are issues with re- fect the domestic market. sociation. He is also a ects were revived while the gards to slight oversupply. The Middle East region board member of the regulatory regime was Ups and downs are part of continues to have its share of American University of strengthened with solid in- the economic cycle and the the problems, in addition to Dubai. vestor protection mechanism real estate sector is going sharing the burdens of the He was decorated with in place – all worked well for through a phase now. But I global issues – be it protec- Lebanon’s highest civilian property developers. do not see it as a real long- tionist policies adopted by honour, a Knight of the So, our timing was also term problem. It’s a short- some of the leading Order of the Cedar, and very right – in entering the term cyclical phase. economies, or the looming the Vatican conferred on market. However, things And I do not see any fun- trade wars, oil price, geo-po- Joseph a Pontifical Order started to slowdown from damental problem with the litical tension including the of Knighthood in recogni- 2015-17. But we had made market in Dubai – the emi- problems in Iraq, Syria and tion for serving communi- our mark by then. rate has come out strongly Yemen. ties across the Arab after every crisis. There is a All these affect investor World. Recently, he ob- tained an honorary doc- What is your view on the sense of an oversupply of confidence and we feel the toral degree from the current real estate market? homes in the market. The reaction on ground. These Lebanese American Uni- Most indicators show a market has the capacity to are temporary phases and versity for his contributions slowdown due to a sense absorb it eventually. How- the market will soon recover to the Business World in of oversupply. How do you ever, the problem is outside and I feel it will bounce back the Middle East. g see the market? – external factors – that af- next year.

Gulf Property 53 INTERVIEW

What makes you say that? Yemen. 1,000 metres of the long now well regulated and Well there are definite signs Works in Egypt are moving road of the regional strife in matured. Like any matured of recovery already. ahead with new investments the GCC. markets, Dubai also needs Oil price has bounced back are creating jobs. We expect Besides, we are the bottom to develop affordable to the US$70-$80 per barrel to see the same in Iraq, Syria of the current economic homes for the middle in- level, from trading below and Yemen. The latest elec- cycle. The only way from come groups – who were US$50 for three years. There tions in Iraq and Lebanon will here is up. initially priced out as the is a renewed optimism of help the political uncertain- developers were racing money coming back to the ties to end. Despite the talks of against each other to de- market and we can feel that. On top of these, the UAE growth, aren’t we seeing a liver super-luxury homes. Besides, the civil wars in and Saudi Arabian economy very slow growth? Do you feel the same? Syria and Yemen are likely to remains stable. Saudi Ara- Yes. Matured markets do not Well, the market is definitely be over by next year. I think bian Government has started fluctuate too much. Growth moving towards affordable all parties are trying to find a to undertake massive proj- and slowdown curves are not homes, for sure. We all feel face-saving solution to end ects that will help the econ- steep. The slower growth is that. The ticket size is getting the conflicts. Once the wars omy to expand and offer the new normal and the mar- smaller. end, reconstruction works better opportunities to Saudi ket will adjust to the new re- We are also studying the will start and we are talking nationals, create new jobs ality. affordable homes market. If about massive re-develop- and new businesses. the right properties at the ment activities in Syria and We are perhaps at the last Dubai’s property market is right locations could be of-

54 Gulf Property INTERVIEW

G&Co ounded by Joseph Ghossoub in 2006, G&Co is a boutique real estate developer that aims to redefine the UAE real estate sector and play a key role inF making communities more sustainable under its exclusive partnerships with Meydan Group and Bank of Sharjah. By adopting a customer- centric approach, G&Co has quickly gained a reputation for quality, reliability and integrity. G&Co delivered its first project the Dh1.5 billion Millennium Estates, located in the inner city of Meydan, MBR City, in the first quarter of 2016. The development boasts 198 luxury villas built over 3.8 million sqft of land. In 2018, the Dh2.65 billion Grand Views, a gated residential community located within the Millennium Es- tates was completed. The Fields project, also located within MBR City, is scheduled for completion in 2019. Comprising three separate components, Jade, Viridian and Cassia, fered to the end-users with They will definitely have a overall expansion of the the development will offer the right prices and right pay- deeper impact on the overall economy. over 1,000 townhouses ment plan, then we will soon economy and the real estate and family villas. g see increased buying activi- market. Investors will feel What is your advice to ties in the market. more comfortable with the those who are yet to buy longer-term residency visas properties? How do you see the new as they will now develop a Dubai’s property market is and move into their dream announcements of allow- sense of belonging to Dubai the best in the region with homes and save themselves ing 10-year residency to and make the city their strong fundamentals. from fluctuating rents. expatriate businessmen, home. The property developers From an investment point professionals, their fami- The 100 percent foreign are real, ready-to-move-in of view, Dubai’s properties lies and students as well ownership in companies will real homes are there. With still offer one of the highest as the 100 percent foreign attract more foreign invest- 10-15 years’ rental, you can rental yields – ranging be- ownership of companies ment in to the UAE and that easily purchase a home. tween 6-8 percent of the affecting the economy and in turn will create more jobs. One has to muster courage property value. the real estate market? This means more profession- in buying properties. If a fam- Which means the invest- These are game-changing als and their families moving ily has a stable income and ment could be recovered in initiatives. These two an- in to the UAE – that will help some disposable saving to 12-13 years! So, if you buy nouncements could not have push up the demand for cover the initial 25 percent properties in Dubai, you can’t come at a better time. homes, consumption and an payment, they should buy go wrong. g

Gulf Property 55 MEGAPROJECT Rizwan Sajan (Centre), Founder Chairman of Danube Group, flanked by Anis Sajan (3rd right), Managing Director of Danube Group and Atif Rahman (3rd left), Partner and Director of Danube Properties, in front of the model of Lawnz – Danube Properties’ largest real estate project offering 1,032 residential units within a gated complex – that recorded 76 percent sell out of the Phase 1 in three days!

Danube sells Dh550m Lawnz’s 76% in 3 days ments reflects growing buy- erty to be built at the right lo- meaning that the customer Gulf Property ers’ confidence in the devel- cation with the right pricing could either move in to the Staff Report oper based on credibility, and the right payment plan,” apartment after paying 51 in- project location, price and Rizwan Sajan, Founder stallments and save the payment plan. Chairman of Danube Group, rents to pay for the rest of the anube Properties, a Danube Properties said. “Prices of a studio 49 installments. Or the prop- major Dubai-based launched the Lawnz project apartment at Lawnz starts at erty investor could repay the real estate devel- with mouthwatering prices Dh290,000 – the lowest price balance 49 installments from oper, once again with studios starting from for such a property that also rental income – if the prop- defied industry Dh290,000, one-bedroom comes with high-quality fin- erty is bought for investment trends by selling out 76 per- apartments from Dh499,000 ishing kitchen appliances purpose. This means that the cent of the Phase I of the and two-bedroom apart- and bathroom amenities. buyer actually acquires the DDh550 million of the recently ments from Dh699,000 – This is unprecedented in the property after paying half the launched Lawnz project in some of the lowest prices of market. price of the property!” just 3 days, the company quality homes available in “On top of that, our attrac- Danube Properties has so said in a statement. Dubai market. tive and industry trend-set- far delivered 831 residential Property buyers and bro- “The huge response to ting 1 percent per month units in four projects worth kers were seen queueing up Lawnz reflects the fact that payment ensures the deliv- Dh1.12 billion while the for tokens with long cus- there is no shortage of buy- ery of the property after pay- Dubai-based developer tomer queue to book apart- ers for the right quality prop- ment of 51 percent – plans to deliver additional

56 Gulf Property MEGAPROJECT Danube Group stablished in the year 1993, Danube Group was founded and cultivated under the leadership of Rizwan Sajan, who is the known to be the Founder and Chairman of the Group. Starting off as a small trading firm, the company is moving from strength- to-strength, expanding its foothold in the region, and has established itself as the No. 1 building Materials Company along with other branches under its vast umbrella. In 2015, the company recorded a turnover of Dh5.14 billion and has been growing ever since. Moreover, Rizwan Sajan was ranked 12th among the ‘Top 100 Indian leaders in the UAE’ ListE by Forbes Middle East. “Our attractive and The company provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The industry trend-setting company operates from its head offices in JAFZA with logistics facilities across the region 1% per month which amounts to 5.5 million square feet and includes kiln drying facility, factory and ware- houses of the group. payment ensures the From a small trading firm, Danube has grown into one of the largest building materials delivery of the company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar and India, in addition to procurement offices in China and property after Canada. Danube has a team of more than 1,800 people working across strategic locations payment of 51% – across the GCC and India. Danube Properties, part of the Danube Group, made its foray in to the real estate market meaning that the in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it customer could either continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, move in to the Glamz, Miraclz, Resortz, Bayz, Jewelz and Lawnz projects. The company currently has a development portfolio of 4,744 units, with a combined value exceeding Dh3.69 billion. apartment after paying 51 Danube Projects Property Units Sales Value Status Dreamz 171 Townhouses Dh500 million Delivered installments and save Glitz Residence I 151 Units Dh135 million Delivered the rents to pay for Glitz Residence II 151 Units Dh135 million Delivered Glitz Residence III 358 Units Dh350 million Delivered the rest of the 49 Starz Tower 454 Units Dh300 million Delivery in 2018 installments. Or the Glamz Residence 426 Units Dh270 million Delivery in 2018 Miraclz Tower 599 Units Dh400 million Under Construction property investor Resortz Tower 444 Units Dh300 million Under Construction could repay the Bayz 463 Units Dh450 million Tendering Stage balance 49 Jewelz 463 Units Dh300 million Launched Lawnz 1,064 Units Dh550 million Launched installments from Total 11 Projects 4,744 Units Dh3.70 billion Development/Delivery g rental income – if the property is bought for 880 units later this year. With Atif Rahman, Director and announce that Lawnz has in- investment purpose. the launch of the Lawnz, Partner of Danube Proper- voked unprecedented re- This means that the Danube Properties portfolio ties, says, “Ever since we sponse that strengthened buyer actually now exceeds US$1 billion in- started to tune in the market our self-belief in our ability to volving 4,744 units in 11 proj- of the new project, our serve Dubai’s real estate acquires the property ects. phones continued to ring market and property buyers after paying half the The company had earlier from customers and brokers in a bigger way. This demon- completely discouraged trying to understand the proj- strates public trust in Danube price of the property!” wholesalers seeking to buy ect. We have declined many Properties. out blocks of apartments for requests from large investors “Over the last four years, re-selling, so that the end- to snap up part of the project Danube Properties – with its – Rizwan Sajan users could benefit from the and had decided to open the customer-focused ap- Founder Chairman opportunities created by doors for the real property proached – has created a Danube Group Danube Properties with the buyers who have been solid reputation in the market super attractive pricing in the priced out by the high price in for delivering quality homes market. the market. at affordable prices. Our cus- The Phase I of the project “Hundreds of property buy- tomers who have moved into consists of 515 residential ers lined up at our office to their dream homes offer solid units. The project is equally get appointment to buy the testimonies of the good work divided into two phases. apartments. I am happy to put together by our team.

Gulf Property 57 MEGAPROJECT

“Lawnz reflects our focus 1,032 units which will take its Rizwan Sajan said. “This is veniently located at the Inter- on community living and our portfolio to 4,744 units with a our second project launch national City Phase 1. The strong belief in customer development value exceed- this year and comes after super lavish amenities in- happiness in line with the vi- ing Dh3.7 billion in four years three months of the launch of clude a massive 3.8 acres sion of the UAE’s leadership after its foray in the real es- the Dh300 million Jewelz promenade which offers to build a happy nation. tate market in 2014. that adds 463 units offering canal, sunken plaza, a fully “The strong response of Construction of the project more than 15 percent return equipped health club, swim- our project launched in the is expected to start in 2018 on investment, which has ming pool, steam and sauna middle of summer season with completion in 2020. been a runaway success in room, multi-purpose hall, jog- and after Ramadan, reflects Lawnz is Danube Properties’ terms of sale. ging track, barbecue deck, the fact that Danube has de- first project at the Interna- “The launch of such a large badminton court, multi-pur- fied the industry trend in a tional City and its first gated project at such a crucial time pose court and a high tech low season. Lawnz proved complex. reflects our confidence in surveillance system for the that buyers will continue to “This is our biggest project Dubai’s real estate market protection and security of the buy homes regardless of the so far that will add 1,032 which will continue to grow residents. The property also timing. There is no bad tim- units to our existing portfolio due to the attractiveness of comes with a 42 metres wide ing for the launch of a good and we are all excited to Dubai and the UAE as a entrance and outdoor cin- project.” launch the project at the In- major investment destina- ema. Lawnz, Danube Properties’ ternational City that has a tion.” Among the residential 11th project comprises of very vibrant community,” The Lawnz project is con- units, 50 percent of the units

58 Gulf Property MEGAPROJECT

“Ever since we started to tune in the market of the new project, our phones continued to ring from customers and brokers trying to understand the project. We have At A Glance declined many requests from large Dh3.70 billion investors to snap up value of Danube Properties’ part of the project and project portfolio had decided to open the doors for the real Dh550 m property buyers who development value of the Lawnz project have been priced out by the high price in Dh1.12 billion the market....” worth of properties delivered by Danube in 2018 The Dh550 million Lawnz – Danube – Atif Rahman Properties’ largest real estate project Director and Partner offering 1,032 residential units within a Dh570 million gated complex – comes with world-class worth of more projects will Danube Properties luxury facilities at affordable price be delivered by Danube Properties in 2018 are studio apartments while remains a major challenge. large number of new home properties so far including 40 percent are one-bedroom That way, Danube Proper- buyers – who were earlier the handover of 302 units apartments and 10 percent ties’ performance in con- unable to own their home within Glitz Residences 1 are two-bedroom apart- struction and delivery is due to price constraint. and 2 and 358 in Glitz Resi- ments. The building design helping strengthen buyers’ “Because of our Volume, dences 3 as well as 171 and architectural aesthetic trust in real estate. Value Engineering and De- townhouses at Dreamz proj- was created to reinforce the Atif Rahman says, “Apart- sign efficiency, we were able ect till March 2018. It will de- design strategy of Danube, ments at Lawnz have been to offer luxury at an afford- liver a further 870 units later which helps maximise the liv- priced keeping the end-users able price. However, the this year. ing space while delivering in mind and their comfort monthly payment has em- Danube Properties, part of convenience of community level. The units come with powered the buyers and has the Danube Group, entered living. The project dedicates the most unique and unseen encouraged the middle in- Dubai’s real estate market in 50 percent space to open design of living space. come families to put their life June 2014 with Dreamz at Al areas with an emphasis on “In addition to the project’s savings in our properties. Furjan – which was sold out greenery and landscapes. location and the five-star fa- “In this way, we are hopeful at launch. Established in The company has one of cilities, Danube’s industry of attracting new home buy- 1993, Danube Group, the the fastest development-to- leading 1 percent per month ers who were deprived of the UAE’s largest supplier of delivery ratio in the region’s payment scheme will ensure opportunity of owning their building materials and home real estate market where a faster sell-out of the prop- own home until now.” furnishing, this year cele- timely delivery of properties erties. Lawnz will attract a Danube has delivered 831 brates 25th anniversary. g

Gulf Property 59 CONSTRUCTION

Faizal E. Kottikollon, Chairman of KEF Holdings and KEF Katerra Middle East

KEF & Katerra merger to create $3.7 b group 60 Gulf Property CONSTRUCTION

Robots will carry out the most complex construction works in future, replacing humans and make the construction sector more efficient, less dependent on manual labour as the fourth industrial revolution enters the construction sector. KEF Infra remains at the forefront of this new industrial revolution. Its merger with Katerra will help speed up the company’s expansion and its efforts to change the construction industry in the Middle East North Africa and India

manufacturing and enter- interview with Gulf Property. Following the merger, Gulf Property prise technology. The part- “Following the merger, KEF Faizal E. Kottikollon will be Exclusive nership will now help build Infra will become KEF the board member of Katerra KEF Katerra's in-house exe- Katerra Middle East that I will and chairman of KEF Katerra cution team which will re- head and also liaise with the Middle East, while remaining ubai-based KEF duce the on-site challenges management of Katerra on chairman of KEF Holdings – Infra, part of the on a project,” it said. spearheading investment an entity that is owned by KEF Holdings Prior to the merger, KEF into the Middle East and him. Although he did not re- owned by Non-Res- Infra had $250 million order- South Asia.” veal the details of the ident Indian billion- book and $400 million work KEF Holdings in January merger, it was ‘a cash and aire entrepreneur Faizal E. in the pipeline in India where 2018 said, it was planning to equity’ deal in which Faizal Kottikollon, has merged with the company gradually invest US$300 million (Dh1.1 becomes a shareholder in DKaterra, a US-based family- started to change the con- billion) in setting up three the global company in ex- owned construction technol- struction sector with technol- pre-cast factories in India change of merging KEF Infra ogy business to create a ogy-powered building that would help accelerate with Katerra with a significant $3.7 billion conglomerate solutions through off-site pre- the pace of growth of India’s cash payout – to the tune of with a $8.5 billion combined cast technology that saves real estate and construction ‘several hundred million dol- order book. up to 40 percent construction sectors, currently undergoing lars’ – according to a news KEF Infra will now merge to cost and 50 per cent time tremendous transformation. agency. become KEF Katerra in the savings with nearly zero The company’s first such Katerra was co-founded by Middle East and India while wastage. project, KEF Infra One In- Michael Marks who is the the global company will oper- “The merger creates a dustrial Park, one of the chairman and CEO. It operate under Katerra. The part- strong synergy between two world’s largest, integrated ates globally from its corpo- nership will jointly expand forward-looking technology offsite manufacturing facili- rate headquarters at Menlo their geographic reach, man- companies and we are ties, is expected to generate Park, California. It has two ufacturing capacity, and mar- happy with the way the revenues of US$1 billion factories and 2,000 employ- ket expertise, a statement by process has gone through,” (Dh3.67 billion) by 2020, ees worldwide with a KEF said. Faizal E. Kottikollon, Chair- from US$150 million gener- turnover of $1.1 billion. "Both companies employ a man of KEF Holdings – a di- ated in 2017 – its first full Katerra was most recently vertically integrated model, versified business year of operation following valued at $3 billion, and its offering end-to-end building conglomerate that bear his the official inauguration in investors include Softbank, services enhanced by offsite initials – said in an exclusive 2016. Foxconn, and Canada Pen-

Gulf Property 61 CONSTRUCTION KEF Infra One industrial facility at Krishnagiri, Tamil Nadu, India – which has started to change the face of the construction sector and transform it to ‘industry’ from a ‘sector’ sion Plan Investment Board. KEF Infra utilises robotics and automation in its advanced manufacturing operations to deliver high quality building projects more quickly and efficiently. KEF Infra has 1,400 employees and factories in Kr- ishnagiri and Lucknow in India. "The merger will enable Katerra to bring world-class pre-cast concrete technolo- gies to the US market, greatly expanding design and materials options for its American clientele. At the same time, the merger will result in a more robust global supply chain and elevated manufacturing processes in existing KEF markets," the company said. The merger will enable Katerra bring world-class pre-cast concrete technolo- gies to the U.S. market, greatly expanding design and materials options for its American clientele. The merged entity will now assets will become part of global construction industry nificant value addition pow- have a team strength of KEF Katerra – part of Katerra reached $14.5 billion in the ered by technology. 3,400 people with orderbook – following its demerger from first quarter of 2018, accord- KEF Infra uses offsite man- of $3.7 billion and US$8.5 KEF Holdings. ing to accounting firm Price- ufacturing technology on a billion works in the pipeline. Construction is a $8 trillion WaterhouseCooper (PWC). Building Information Model “The merger will help us global business – about “Merger and acquisition ac- (BIM) platform that designs expand our business in India 10.66 per cent of the US$75 tivity in terms of value and the entire building, feeds the and the GCC much faster trillion global economy. volume slowed in Q1 2018 information on materials – than we had planned,” Kot- The global construction in- from Q4 2017 (down slightly both quality and quantity – tikollon says. dustry is expected to reach from Q1 2017),” Colin McIn- and then de-constructs the “This is very good for our an estimated $10.5 trillion by tyre, US Engineering and building part by part and business and as a social en- 2023, and it is forecast to Construction Deals Leader at sends the information to var- trepreneur, I am also happy grow at a compound annual PWC, said. ious production units for pro- because this will help fast- growth rate (CAGR) of 4.2 Faizal E. Kottikollon had cessing and ‘producing’ or track the development of percent from 2018 to 2023. launched KEF Infra One ‘manufacturing’ the building mass housing, schools, hos- The major drivers for the ‘construction factory’ at Kr- components – the floor pitals and important public growth of this industry are in- ishnagiri in Tamil Nadu with slabs, wall panels, door pan- facilities as we want to be a creasing housing starts and an investment of $100 million els, window panels - and catalyst to changes in the so- rising infrastructure due to inin 2014 that was commis- stores them in the right order ciety.” creasing urbanisation and sioned in 2016 that paid off for installation and re-assem- He said, the merger will growing population. handsomely and started to bling onsite. complete in two months time, The value of 567 merger change the labour-intensive In this process, the building when all the employees and and acquisition deals in the construction sector with sig- is manufactured from base-

62 Gulf Property CONSTRUCTION

core slabs, pre-stressed At a Glance beams, automated wall g KEF has invested over panel production, steel Rs6.5 billion to set up the mesh plant, wooden world’s largest integrated joinery, aluminium glaz- to grow at 30 percent over manufacturing facility for ing, stone processing, the next decade, according offsite construction at Kr- pre-fabricated bath- to a report by India Brand ishnagiri, Tamil Nadu. rooms and modular Equity Forum (IBEF). “The MEP, and assembly. Indian real estate market is g KEF’s integrated offsite expected to touch US$ 180 construction technology g Three more integrated billion by 2020. The housing brings speed, skill and industrial parks are sector alone contributes 5-6 scale for projects in planned by KEF across percent to the country's every sector: education, India in the very near fu- Gross Domestic Product healthcare, housing and ture and we are focused (GDP),” it says. urban infrastructure. on skill development by In the period FY2008- investing in R&D and 2020, the market size of this g KEF has the capability training both academi- sector is expected to in- to support Govt. of India cally at the operational crease at a Compound An- projects such as Smart level within our manu- nual Growth Rate (CAGR) of Cities with its technology facturing and engineer- 11.2 per cent. Retail, hospi- that can fast-track mas- ing facilities. tality and commercial real es- sive low-cost housing tate are also growing and urban development g KEF Holdings has an significantly, providing the schemes. ongoing investment in much-needed infrastructure India of Rs11 billion for India's growing needs. g The industrial park will across infrastructure, “A total of 217,900 new open in November 2015 healthcare and educa- houses in six Indian states with 10 different units tion sectors and has a were sanctioned by the Min- under manufacturing firm commitment for a istry of Housing and Urban components for build- total investment of Rs40 Affairs, Government of India ings and infrastructure. billion in the next five under the Pradhan Mantri These include hollow years. g Awas Yojana (PMAY) to push affordable housing in the urban areas of the country,” ment, ground floor upwards KEF Infra has witnessed Building Phase 2 in Ben- the IBEF report says. in an assembly line format at robust growth in its order galuru which is a 500,000 “The private equity invest- the factory. The parts are book, since the launch of the square feet building comments in real estate in- then transported onsite 42-acre KEF Infra One In- pleted in 15 months. creased 26 percent to a where it is then assembled dustrial Park. Currently, the firm is exe- nine-year high of nearly Rs using cranes and machiner- In 2017, KEF Infra deliv- cuting a one million square 40,000 crore (US$6.01 bil- ies with minimal human inter- ered the 400,000 square feet feet college hospital for lion) in 2016.” vention. The entire process MEITRA Hospital (500 beds Kovai Medical Center and The real estate sector in is automated in a factory, in in two phases; 209 com- Hospital (KMCH) in Coimbat- India is estimated to have at- a controlled environment pleted) in Kerala, within a ore, Tamil Nadu, Phase 2 of tracted investments worth thus delivering high quality record time of 18 months, the Indira Canteens and US$7 billion in 2017, which results. and manufactured 175 public kitchen project, which in- will rise further to US$10 bil- “We have started building canteens and 20 kitchens as cludes an additional 262 fa- lion by 2020. India’s first prefabricated part of the Indira Canteens cilities across Karnataka, According to data released shopping mall in Lucknow for Project initiated by Kar- besides the LuLu Mall in Luc- by Department of Industrial LuLu Group. The 2 million nataka state government. know. The firm has also Policy and Promotion square feet project will be In addition, the firm handed signed on the G Kup- (DIPP), the construction de- delivered in a record 21 over the Embassy 7B proj- puswamy Naidu Memorial velopment sector in India months compared to the ect, a 1.7 million square feet Hospital (GKNM) in Coimbat- has received Foreign Direct conventional delivery time of commercial building for the ore as a client. Investment (FDI) equity in- five to six years,” Kottikollon Embassy Group, which was In India, real estate is the flows to the tune of told Gulf Property in a previ- completed in 13.5 months in second largest employer US$24.54 billion in the pe- ous interview. Bengaluru, and the Infosys after agriculture and is slated riod April 2000-June 2017. g

Gulf Property 63 MEGAPROJECT Shurooq Shurooq transforms Sharjah with Dh7.6 b Works on Kalba Waterfront project – a new tourism attraction – has already started

in nine years. (FDI) flow into Sharjah more than 5,000 jobs were created Gulf Property Shurooq was established than doubled in 2017 to in 2017 from all investments, Exclusive in 2009 – at the height of the Dh5.97 billion leading to a including local, regional and global financial crisis that hit major jump in job creation, international businesses. the UAE’s real estate market the investment promotion Sharjah witnessed a quali- harjah Investment in the fourth quarter of 2008, arm of the Sharjah govern- tative growth in FDI inflows in and Development by the Emiri decree No.2 is- ment said earlier this year. the past year, with 18 new Authority (Shurooq), sued by His Highness Dr. Data released by Sharjah businesses bringing in more Sharjah Govern- Sheikh Sultan bin Muham- FDI Office at the 8th Annual than double the capital that ment’s investment mad Al Qasimi, Supreme Investment Meeting in Dubai was invested by 20 projects promotion and asset devel- Council Member Ruler of showed that cumulative inin 2016. opment arm, is gradually Sharjah. Since then, ternational investments in The 2017 capital invest- Stransforming the emirate’s Shurooq has not only played Sharjah surged to Dh36 bil- ments were made by 18 new economy by partnering with a pivotal role in driving in- lion, with 2017 witnessing a projects set up in diverse investors in key tourism and ward investment in to the 174 per cent surge in new sectors, with the top 3 being development projects as its emirate’s growing economy, jobs to 2,815. architectural metal manufac- portfolio of projects reach it has established Sharjah as Sharjah recorded FDI in- turing investing $725 million; Dh7.6 billion (US$2.07 bil- a major international busi- flows worth Dh5.97 billion in agricultural, construction and lion) across a total area of ness hub as well. 2017 as compared to Dh920 mining machinery with $356 11.74 million square metres Foreign direct investment million in 2016 while more million and real estate FDI

64 Gulf Property MEGAPROJECT

“Sharjah’s phenomenal growth cemented the emirate's image as a preferred investment destination for investors from across the world and prompted Shurooq to adopt an integrated plan and a new vision to cope with economic changes, resulting in the formation of the Sharjah FDI Office (Invest in Sharjah)....”

– Marwan Al Sarkal Executive Chairman Marwan bin Jassim Al Shurooq Sarkal, Executive Chairman of Sharjah Investment and Development Authority (Shurooq) standing at $344 million. Qasimi’s foresight, Sharjah Lagoon, combining nature, Shurooq also boasts the Invest in Sharjah identified has built an outstanding in- entertainment, culture and Maraya Art Centre and the top international investors in vestment development art. Other destinations in- 1971-Design Space, the ‘I the emirate in 2017 as India, model for other economies to clude The Flag Island and Love Sharjah’ brand and City the UK, USA, China and emulate. other Flag Squares across Sightseeing Sharjah tour Saudi Arabia and reported “Shurooq was launched the emirate which are among buses. The emirate is also that $10.5 billion was in- under the leadership and vi- the most prominent national home to major events like vested in different busi- sion of Sheikha Bodour bint monuments in the UAE. Sharjah Food Festival and nesses last year in 35 new Sultan Al Qasimi and despite Other projects currently Sharjah World Music Festi- ventures. being a relatively new entity, under construction include val, among many others. Marwan bin Jassim Al the authority has established the ‘Heart of Sharjah’, the “Shurooq focused on con- Sarkal, Shurooq Executive a global reputation.” largest historical preserva- structive cooperation and in- Chairman, said: “Sharjah’s Shurooq’s portfolio in- tion and restoration project in tegration with various state economic strategy is based cludes several large-scale the region. Planned over five departments and agencies on diversification, under- projects including Al Qasba, phases, to be completed by across the UAE for the ben- standing the basic needs of Al Majaz Waterfront and Al 2025, the Heart of Sharjah is efit of all emirates, inspired investors and the desire to Montazah Amusement and home to a variety of tourist by vision of the late Sheikh improve the style and quality Waterpark, as well as the facilities such as Souq Al Zayed bin Sultan Al Nahyan, of life for all residents. iconic Al Noor Island, which Shanasiyah and Al Bait the founder of the nation,” Al Thanks to Sheikh Sultan Al sits on the shores of Khalid Hotel. Sarkal said.

Gulf Property 65 MEGAPROJECT

Sharjah’s Buhairah Corniche at night

“Sharjah’s phenomenal opmental landscape.” properties on a 100-year is adopting an ambitious growth cemented the emi- “According to figures re- leasehold basis.” strategy that focuses on six rate's image as a preferred leased by the Sharjah De- Al Sarkal also indicated main sectors: tourism and investment destination for in- partment of Economic that the lack of real estate leisure; environment and re- vestors from across the Development, in 2016 the projects with integrated serv- newable energy; healthcare; world and prompted Shurooq real estate and business ices and facilities in the past transport and logistics; edu- to adopt an integrated plan service sector achieved have prompted Shurooq to cation; and light industries and a new vision to cope with growth of 4 percent and with announce a series of strate- According to a statistical economic changes, resulting the launch of new, innovative gic partnerships and joint study by Shurooq, the in the formation of the Shar- projects I am confident that ventures with world-class tourism and leisure sector in jah FDI Office (Invest in we are on the threshold of a local companies such as Sharjah has a wealth of op- Sharjah). big jump for this sector in the Eagle Hills, Nakheel, Dia- portunities, especially in lux- “Invest in Sharjah is tasked near future. mond Developers and urious accommodation, with with leading the emirate’s ef- “Sharjah’s sophisticated in- Emaar Hospitality. four-and five-star hotels ac- forts for investment promo- frastructure and legislative counting for 70 percent of tion, with a focus on frameworks encourage the emirate’s total hotel rev- developing leading real es- sector to flourish, especially Key Sectors for enues. tate and tourism projects and with the introduction of the This is apart from potential bringing about a positive usufruct right that allows Investment opportunities in leisure desti- transformation in the devel- non-UAE citizens to own The ‘Invest in Sharjah’ office nations in Sharjah, particu-

66 Gulf Property such as food, packaging, MEGAPROJECT Economic and light metal industries, among others. Sharjah has Landscape of 22 industrial zones offering world-class facilities, open- Sharjah ing the doors to investors harjah’s GDP hit from all over the world. Dh152 billion in Shurooq established 7 2016 according to Current the Department of companies, each with a dif- Economic Develop- ferent function to support Projects Shurooq continues to make ment, partly attributable to the emirate’s economic expansion. achievements in 2018, dur- the emirate’s strategic loca- ing which it revealed the es- Stion between Asia, Europe These are: Sharjah Trans- port Solutions, Absolute Ad- tablishment of a new and Africa. company Eagle Hills Sharjah Sharjah is home to world- ventures, Tasweeq, Poltrona Frau, Qatra, in a strategic partnership with class seaports on the Ara- Abu Dhabi-based leading bian Gulf and Indian Ocean, Mazare’a and TACA Emi- rates. developer Eagle Hills. as well as its international Under this new joint ven- airport and the sophisti- ture, Shurooq launched three cated infrastructure of roads large-scale projects worth and integrated transport Sharjah FDI Dh2.7 billion to be developed Invest in Sharjah is the offi- networks. by the new company. cial entity with a mandate to The transport and logistics The three projects include introduce investment oppor- sector in the emirate is ex- Maryam Island, Palace Al tunities to business owners, pected to achieve a total Khan and Kalba Waterfront, managers and investors in value of $1.7 billion (Dh6.25 all of which are focused on billion) by the end of 2018 various sectors and helping promoting Sharjah's tourism and projected to rise them to make the most of sector and celebrating the steadily to $1.9 billion (Dh7 the emirate’s offerings. emirate's heritage. billion) by the end of 2019. The office implements an The large-scale projects, For light industries, Shar- overall strategy based on including high-end hospitality jah is home to 65,000 small providing a range of advan- facilities, will give a strong and medium-size enter- tages and incentives in co- boost to the emirate’s flour- prises that find the emirate operation with a number of ishing property sector, set- an ideal place for their relevant government agen- ting new benchmarks for growth and expansion. The cies and departments, to housing, hospitality and retail SMEs provide the domestic enhance the business envi- offerings, as well as lifestyle market and foreign markets ronment in Sharjah and communities in Sharjah and with many light industries make it more attractive. g Kalba. The projects are scheduled for completion between 2019 and 2020. larly in the food and bever- and provide facilities that care sector is expected to age sector, which is ex- help attract investments and grow by 9.3 percent annually. pected to reach $1.4 billion capital to these sectors, en- These figures show the in- (Dh5.15 billion) in 2019. suring the free circulation of vestment appeal and rev- Maryam Island The largest of the three proj- The economic value of the data between legal, eco- enue potential in the local ects in term of both value health sector through estab- environment sector is ex- nomic and tourist bodies, en- and area is the Dh2.4-billion pected to reach $281 million hance transparency and lishing more medical facili- Maryam Island, a mixed-use (Dh1.03 billion) in Sharjah by objectivity. ties. development located be- the end of this year. With Sharjah’s healthcare sector In education, Sharjah is tween Al Khan Lagoon and Sharjah placing a high pre- also offers many investment home to an impressive array Al Mamzar in Downtown mium on preservation and opportunities. With imports of prestigious and world- Sharjah. environmentally sustainable accounting for 90 percent of class educational establish- Maryam Island spans practices, the sector is likely medicines, there is investments, with educated people 460,000 square metres, of to grow to $314 million ment potential to establish constituting 92% of the emi- which 310,000 square me- (Dh1.15 billion) by the end of pharmaceutical plants to rate’s total population. The tres are designated for com- 2020. meet a large portion of do- education sector is still very mercial and residential Shurooq is collaborating mestic demand. The number promising for investment, compounds, hotel units, with relevant bodies and of beds in local hospitals ac- particularly in schools, uni- restaurants and cafes, agencies in Sharjah to iden- count for 0.6 beds per 1000 versities and specialised in- shops, leisure facilities and tify potential opportunities people at a time the health- stitutes. green parks.

Gulf Property 67 MEGAPROJECT

His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Member of the UAE Supreme Council and Ruler of Sharjah, being briefed on a new master-planned community by Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Sharjah Media Centre and Arada

The $43.5 million (Dh160 views. Palace Al Khan is de- Under the agreement, and sustainable project in million) Kalba Waterfront is a signed to be Sharjah city’s Nakheel will develop a high- Sharjah. master-planned retail mall first five-star luxury water- class community retail and The green project en- spanning 17,000 square me- front resort. The seaside leisure centre in Sharjah’s hances the quality of real es- tres with 11,200 square me- hotel, extending over 66,200 rapidly-expanding Al Rah- tate projects in Sharjah, tres of gross leasable area. square metres along the maniya district. meeting the highest stan- The shopping centre will be city’s coast in Al Khan area dards of environmental sus- located within the Kalba Eco- overlooking the Arabian Gulf, tainability, allowing new and Tourism Project adjacent to a will offer 87 hotel keys. Sustainable innovative options for invest- lagoon, and house 86 retail ments in the green sector. outlets, indoor and outdoor City, Sharjah dining outlets, local and inter- Community In alignment with its vision to national brands, a supermar- strengthen strategic partner- Eco-Tourism ket and entertainment area. Shopping Mall ships with the private sector The unconventional design In April, Shurooq signed an and boost the emirate’s drive Projects of the mall includes internal agreement with master de- of economic diversification, In its relentless endeavour to public streets with outlets veloper Nakheel to develop a Shurooq signed a partner- promote the value of serv- and shops on both sides, of- new community retail centre ship agreement with Dia- ices and products it offers to fering a unique outdoor din- at a total cost of Dh75 mil- mond Developers to develop the public, Shurooq entered ing space and breathtaking lion. a large mixed-used green the eco-tourism sector,

68 Gulf Property MEGAPROJECT

within a stunning mangrove nature reserve in the heart of Kalba. Construction work on the project began in March 2017, and is expected to open soon. About 80 percent of Fossil Rock Lodge within the Mleiha project is complete, which will serve as a modern luxury hospitality facility offering a unique experience for desert adventurers and nature lovers.

Future projects The authority has been ac- tively involved in developing a range of projects, some of which are near completion and will be opened over the next few months. During 2018, other large- scale projects will be delivered, including Al Bait Hotel, a boutique five-star hospitality facility and the first of its kind heritage hotel in the UAE, and Al Badayer Lodge. Al Bait, part of the ‘Heart of Sharjah’, has transformed authentic Emirati houses launching the Kalba Eco- cal treasures, and a diverse boutique hotels and eco-es- through renovation and ex- Tourism project in May 2012 set of desert adventures. capes, to manage all hospi- pansion. Singaporean Gen- with a view to providing a Shurooq’s strategy for ex- tality facilities that fall under eral Hotel Management the Sharjah Collection brand. number of nature reserves pansion and growth has con- (GHM), a leading operator of and diverse tourist facilities tinued with the launch of the The first phase of the Shar- luxury hotels in the world, in collaboration with the En- ‘Sharjah Collection’ hospital- jah Collection’s portfolio in- has been appointed to oper- vironment and Protected ity brand, which was an- cludes three projects: Al ate the Dh100 million luxury Areas Authority in Sharjah. nounced in April 2017. Badayer Lodge in the Al Ba- resort. Pressing ahead with its The Sharjah Collection in- dayer Desert; Bait Khalid Bin Another project, Al Ba- strategy to implement sus- cludes a number of luxurious Ibrahim in the Heart of Shar- dayer Oasis, is a retreat tainable projects, Shurooq lodge and B&B-style proper- jah; and the Kingfisher overlooking the golden sand began the development of ties, along with environmen- Lodge nestled within the dunes of Sharjah’s central the Mleiha Archaeological tally-conscious hotels to offer Kalba Eco-Tourism project. region. In July 2017, and Eco-Tourism Project in its guests unique living expe- Recently, Shurooq an- Shurooq added 10 dormitory early 2016. In its first phase, riences with an authentic nounced the addition of the rooms for individuals and the project saw the construc- taste of Arabian hospitality, Fossil Rock Lodge to the groups as well as a cinema tion of the Mleiha Archeolog- rich in Emirati culture. Sharjah Collection. and a gym, increasing the ical Centre, which offers Shurooq appointed Mantis The Kingfisher Lodge, a project’s total investment visitors a glimpse into Shar- Collection, the owner of five-star hospitality project, from Dh45 million to Dh60 jah’s rich legacy and histori- some of the world’s finest features a tented camp million. g

Gulf Property 69 INVESTMENT

Fidu Fidu brings Dh380m

Chinesenese investors with investment Emaar The company has invested Non-financial overseas in- Gulf Property Properties to the tune of Dh30 million in setting up vestments by Chinese in- Exclusive Dh380 million involving a and expanding its business vestors reached $120 billion project in Dubai Creek Har- in Dubai, including Dh4.8 mil- in 2017, according to China’s bour – one of many more lion in marketing budget that Ministry of Commerce. idu Properties, a deals to come through Fidu helped spread the com- Chinese outbound invest- Dubai-based real es- Properties,” Amit Dahima, pany’s branding across the ment is set to reach as high tate broker owned by Marketing Manager of Fidu UAE. as $2.5 trillion over the next group of three Chi- Properties, said. Fidu Properties concluded decade despite rising protec- nese businessmen, “We have a very strong Dh780 million real estate tionism, according to new re- has underwritten a Dh380 network among the Chinese deals in the UAE in the last search, suggesting that million (US$103 million) investor community and two years. Fidu is a key annual totals will regularly Fproperty purchase deal by a through this network, Fidu player in both the Chinese beat the record set in 2016, group of Chinese investors Properties will attract more and Hong Kong property according to the international involving a project at Dubai Chinese investment in markets. Bilateral trade be- law firm Linklaters. Creek Harbour cluster, a Dubai’s real estate market.” tween China and UAE Overall, the firm projects senior company official told Fidu Properties was set up touched $41 billion in 2017, Chinese outbound foreign di- Gulf Property. by three Chinese business- that reflects growing eco- rect investment will total $1.5 “We have just concluded a men in 2017, with an office at nomic relations between the trillion to $2.5 trillion over the huge investment deal by Chi- Emaar Square. two countries. next 10 years. Last year

70 Gulf Property INVESTMENT

“Chinese investors look at higher returns on investment and with 6-8 percent annual rental yields, Dubai offers one of the highest returns on investment in real estate. This factor, in addition to strong investor protection mechanism and sound regulatory regime will continue to attract foreign investment, including investment from China....”

– Amit Dahima Marketing Manager Fidu Properties

Amit Dahima, Marketing Manager of Fidu Properties

Gulf Property 71 INVESTMENT

such deals totalled $172 bil- ment having been eighth- have identified China as a high. Over the past two years lion, below the record of highest as recently as May sizeable target buyers and Chinese buyers have consis- $227 billion in 2016 but still last year, according to Knight roughly a quarter of those tently ranked amongst Dubai the second-highest on Frank's Prime International transactions, to the value of Properties’ top ten buyer na- record, Linklaters said, citing Residential Index. over Dh3 billion, took effect tionalities in terms of value, Bloomberg data. Chinese Recent policy changes in the past for joint ventures, however as recently as April balance of payments data such as granting Chinese encouraged by focused mar- they were in the top five, so show a sharper drop from nationals visa on arrival in keting efforts at exhibitions in there is a clear trend for us to $217 billion in 2016 to $101 Dubai, as well as the con- China. Recently, a number of capitalise on. This key mar- billion last year. nectivity permitted by direct Dubai property developers ket that currently represents According to Dubai Land flights to 13 Chinese cities and brokers participated at three percent of Dubai’s real Department (DLD), Dubai's have increased the emirate’s the Luxury Property Show- estate transactions.” real estate market witnessed attractiveness to investors case Beijing 2018 in which Fidu is one of the growing more than 30,000 transac- from the country. 6,000 visitors met 140 ex- number of Chinese players tions worth approximately Recent reports estimate hibitors from 35 countries. in Dubai property market. Ac- Dh56 billion from close to that more than 8,000 real es- Marwan Al Kindi, Director cording to consultancy 23,000 global investors in tate transactions were com- of Sales and Sales Opera- Knight Frank, the Chinese 2017. Chinese investments pleted by Chinese in just two tions at Dubai Properties ranked as the 4th most ac- currently rank sixth-highest years. So it comes as no sur- said: “Interest from the Chi- tive real estate investors in for inbound property invest- prise that Dubai developers nese market is at an all-time the first half of 2017. Interest-

72 Gulf Property INVESTMENT

Dubai’s property market ripe for foreign investment, including Chinese capital

ingly, Chinese contractors ment from China. “So, in the next few outbound direct investment feature among the top 5 con- “Although the average months, you will see hectic (ODI) continued to see dou- tractors in the UAE. The con- ticket size of properties is re- recruitment activities in Fidu ble-digit growth in the first sultancy also estimates that ducing due to a stronger as we plan to aggressively quarter of the year, official Chinese contractors will ac- focus on the affordable hous- buy and sell properties in data showed Monday. count for 6 percent of all con- ing, the average ticket price Dubai and UAE. With declin- Domestic investors made tracts between 2018-2020 in of Chinese investment ing property prices due a $25.5 billion of non-financial the emirates. ranges from Dh1.2 million to lower demand and oversup- ODI in 2,023 overseas enter- Dahima says, “Chinese in- Dh1.5 million – which is quite ply, we see a great opportu- prises in 140 countries for vestors look at higher returns high compared to the current nity for property investors January-March, the Ministry on investment and with 6-8 market trend in Dubai.” and buyers in benefitting of Commerce (MOC) said. percent annual rental yields, Fidu Properties currently from the current property The figure was up 24.1 per- Dubai offers one of the high- employ 40 property brokers price.” cent from the same period est returns on investment in and it is planning to hire The expanded team will last year. ODI in countries real estate. This factor, in ad- more, he said. approach all the investor along the Belt and Road dition to strong investor pro- “We are currently in the communities, while the com- maintained strong expan- tection mechanism and process of increasing our pany’s owners will focus on sion, rising 22.4 percent from sound regulatory regime will sales team to 300 agents bringing in Chinese capital in one year earlier to $3.61 bil- continue to attract foreign in- from the team size of 40,” to the real estate market, he lion during the first three vestment, including invest- Dahima says. says. China's non-financial months. g

Gulf Property 73 INDIAHOME

Omkar Omkar builds $6bn

worth“There isof a renewed senseprojectsbusiness more transparent phases. As the country’s Gulf Property of confidence in investment and efficient. It replaces all commercial capital, Mumbai Exclusive in to real estate in India as other various taxes that we – where we operate – has al- the recent regulatory and used to pay to different au- ready put the system to- legal reforms – such as the thorities. gether. mkar Realtors and enactment of the Real Estate “With the introduction of “This is why more and Developers, a Mum- (Regulation and Develop- the new escrow account, the more Indians are now invest- bai-based real es- ment) Act, 2016 (RERA), the buyers’ and investors’ money ing in their homes as the law tate developer, has Goods and Services Tax directly goes in to the escrow now assures them of the sold properties (GST) as well as the new for- account of each project and timely delivery of the proper- worth Rs3 billion to Non-Res- eign investment law – are the developer is restricted by ties.” ident Indians (NRIs) living in helping the industry to be- the law in using the money India has moved up one Othe GCC countries, a top of- come more transparent with strictly to build and promote place to claim the 35th spot ficial told Gulf Property in an developers becoming more the property. on the Global Real Estate interview. accountable to investors and “The state of Maharashtra Transparency Index (GRETI) “Of these about 65 percent their interests. has already implemented the – published by Jones Lang of the sales have been con- “The GST in real estate escrow account and all de- LaSalle (JLL), a global real cluded in the UAE,” Babulal now varies between 8-12 velopers are currently follow- estate advisory – aided by Varma, Managing Director of percent – which is quite rea- ing this. Other states will improvement in market fun- Omkar, said. sonable and it makes the gradually implement this in damentals, policy reforms,

74 Gulf Property INDIAHOME

Babulal Varma, Managing Director of Omkar

Gulf Property 75 INDIAHOME

and liberalisation of FDI. “The real estate market will 2014 or over last two cycles including converting slums to Digitisation of property continue to grow for the next of JLL’s GRETI. 12,000 affordable homes records and industry status three to five years as buyers Foreign investment into the under a government-man- accorded to affordable hous- are coming back in big num- Indian real estate sector dated scheme and 2,500 lux- ing have also helped. bers to the market. stood at $2.6 billion in 2017, ury homes spread across Varma says, India’s eco- “I believe, the three ‘D’s – according to Knight Frank, a 350 acres of land parcels nomic growth will continue to Democracy, Demand and global real estate advisory. across Mumbai. accelerate and with political Demography – will continue Foreign investments into The company is involved in stability backed up by the on- to drive the growth of Indian Indian real estate was higher 12 types of businesses em- going legal and administra- economy and real estate than collective foreign invest- ploying 3,500 people includ- tive reforms will help the real sector,” he said. ments in the other Asia Pa- ing 1,400 in real estate estate sector to grow further. India has also shown in- cific countries of Malaysia, sector. “The perception of real es- credible improvement in the Thailand, Indonesia, Viet- Omkar Realtors, estab- tate business is changing in latest survey and emerged nam and Philippines. lished in 2003, has already India along with the changing as one of the top 10 coun- With the value of Indian delivered projects spanning times and new regulations,” tries to register maximum im- Rupee losing its shine, more 4 million square feet in resi- he says. “The market is more provement in transparency in and more NRIs are looking at dential and commercial sec- matured, transparent and real estate over last two investing back home in India. tors. The company is there is a sense of trust in the years. The country has Omkar, which has deliv- currently developing over 20 air. moved up five places since ered 14,500 residential units million square feet in Mum-

76 Gulf Property INDIAHOME

India needs to transform its dilapidated urban infrastructure, in order to make the cities more habitable. The government’s smart cities programme might address this partially...

percent of the GDP in 2013- 14, at an estimated 3.7 lakh crores and employed about 7.6 million people. India’s Ministry of Housing estimated a housing shortage of 18.78 million houses during the 12th plan period, with 99 percent in the eco- nomically weaker section (EWS) and lower income groups (LIG). Further, the country’s total urban housing shortage is projected to be about 30 million by 2022. The report pre- pared by the Technical Urban Group (TG-12) on Urban bai. They have also under- “We are offering one-bed- around Rs16-17 billion in the Housing Shortage 2012-17 taken development of an- room homes for 8.5 million to first phase of development also highlights that nearly 1 other 40 million square feet 9 million. We will soon re- and the company expects million households are living for upcoming projects. lease the next phase with about Rs20 billion revenue in non-serviceable kutcha “The portfolio value of our 800 units for selling.” from the sale of the 1,200 houses, while over half a mil- delivered projects have ex- Omkar Realtors last year units. An investor can expect lion households are in home- ceeded US$9 billion (Dh33 said it will invest about Rs17 an annual 12 per cent return less conditions. billion) while the value of billion over the next five on investment (ROI) from “The government’s Hous- projects under execution is years to build a new housing this project. ing for All and Smart Cities around US$6 billion (Dh22 project, comprising 1,200 The company has rehabili- schemes are creating new billion),” Babulal Varma said. flats, at Andheri in Mumbai. tated more than 60,000 slum opportunities for the real es- “We are currently promot- The prices of the flats will dwellers in Mumbai under tate sector,” Varma says. ing 14-15 projects that are range from Rs 87 lakh to Rs the Maharashtra govern- “We ourselves are involved attractive to NRIs in the Gulf. 1.6 crore, while the carpet ment's Slum Rehabilitation in the affordable housing de- Our latest venture, Lawns will vary from 355 to 710 Authority (SRA) housing velopment programmes and and Beyond launched about square feet. scheme. are transforming some of the four months ago, saw about This is the first phase of the The real estate sector is a worst slums with new resi- 200 units or a fifth of the overall 65 acre slum redevel- major component of the In- dential projects with good 1,000 residential units sold opment project. dian economy. The real es- quality homes developed in a out. The project cost would be tate sector contributed to 6.3 good environment.” g

Gulf Property 77 Sweet Homes launches its first serviced apartments

SPOTLIGHT

ADFD extends Dh67m to MuscatMuscat toto buildbuild Yemen

bu Dhabi Fund for Development ajid Al Futtaim, a (ADFD), the lead- $13bn$13bnDubai-based di- townshiptownship ing national entity versified busi- for development n e s s aid, and the Emirates Red conglomerate, Crescent (ERC) signed a and Oman Tourism Develop- MemorandumA of Under- ment Company (Omran), the standing (MoU) to man- Mdevelopment arm of the Gov- age the Dh67million ernment of Oman for the de- ($18.3 million) UAE gov- velopment of the tourism ernment grant aimed to sector, said, they will develop support the healthcare a new $13 billion (Dh50 bil- sector in Hadhramaut lion) township, Madinat Al Governorate in Yemen. Irfan, close to the new Mus- The grant aims to sup- cat International Airport. “Madinat Al Irfan is the Sul- port three healthcare proj- rect jobs in the country. Cen- tres of retail space, 700,000 tanate’s largest urban devel- ects in Yemen’s trally located in Muscat’s square metres of office opment project and is set to Hadhramaut Governorate urban corridor, the develop- space, as well as a number contribute to Oman Vision including rehabilitating ment will become the gate- of cultural and lifestyle offer- 2040. The eastern area cur- hospitals, reconstructing way to Oman; creating a ings. The development will rently being developed by the Maternity and Child modern downtown for resi- serve as an integrated, sus- Hospital, as well as pur- Omran sits alongside Wadi Park just minutes from the dents, businesses and visi- tainable and inclusive com- chasing medicines and tors. munity, true to the values of medical equipment. newly opened Muscat Inter- national Airport. It is a multi- Ali bin Masoud Al-Sunaidy, Omani society. It will cater to Aimed at providing qual- Chairman of Omran stated: all segments of the local ity medical attention to use district adjoining the Oman Convention and Exhi- “The development of Madinat community, providing a Hadhramaut’s population, Al Irfan is a great addition to model for future urban devel- the hospital rehabilitation bition Centre (OCEC), a world- class venue for inter- Muscat and reflects the vi- opments, not just locally, but project will overhaul and sion of His Majesty Sultan across the region. It will cre- equip seven hospitals in national conferences, trade shows and concerts,” a joint Qaboos bin Said to diversify ate a new urban lifestyle not the region. the Omani economy. The yet seen in the Sultanate. Encompassing mainte- statement said. The joint venture will see benefits to the local economy Madinat Al Irfan will be the nance, construction and and tourism are already second mixed-use commu- electrical works, the sec- the development of a vibrant mixed-use community that being realized, but it will also nity by Majid Al Futtaim in ond project will revamp bring great economic and so- Oman following the unri- the will serve as the new urban Maternity and Child cial benefit to the whole of valled success of Al Mouj Hospital through boosting centre for Muscat. The an- the Sultanate. The overall Muscat. Madinat Al Irfan is its capacity with 150 addi- nouncement was made at a scale of the project is un- poised to be a catalyst for tional beds, as well as recent press conference and precedented and directly change in Oman. through the provision of signing ceremony at the Oman Convention and Exhi- aligns with the government’s Alain Bejjani, CEO at Majid necessary medical sup- bition Centre in Muscat. vision to invest in sustainable Al Futtaim – Holding, said plies and equipment. As The new mixed-use com- developments to strengthen “Our long-standing commit- part of the third project, munity is located at the west- and diversify the economy of ment to this country has led ADFD will purchase sup- ern area of Madinat Al Irfan Oman for the future genera- us to invest OR705 million plies of essential medicine and spans over 4.5 million tions.” and create employment op- for the Governorate. square metres. The joint ven- Upon completion in three portunities for more than Since 1974, ADFD has ture project investment value key stages, Madinat Al Irfan 42,000 people. We are spent Dh3 billion in loans is estimated at OR5 billion will feature more than 11,000 Oman’s largest non-energy and government grants to- over a period of 20 years and residential units comprising Gulf investor and a long-term wards the development of is anticipated to create more villas, townhouses and apart- contributor to the local econ- 49 projects in Yemen. g than 30,000 direct and indi- ments, 100,000 square me- omy.” g

78 Gulf Property

SPOTLIGHT

Kalyan Group to build Axs to handle trade license 15 hotels in 3 years issuance in alyan Hospitality, part of Dubai-head- Emaar Hospitality Group to enter in the African market with a tie-up with Kalyan Group Tecom Dubai quartered Kalyan he Business Reg- Group, will develop istration and Li- 10-15 hotels in Sub- censing (BRL) Saharan Africa region, a top Sector of the De- company official said. partment of Eco- K“Hospitality is one of our nomic Development focus business areas and we (DED) in Dubai signed a are planning to build 10-15 memorandumT of under- hotels in the next few years,” standing (MoU) with axs, Ashok Gupta, Chairman of TECOM Group’s smart Kalyan Group, told Gulf gateway for integrated Property in an interview on services. the sidelines of a press con- Omar Bushahab, CEO ference organised to an- of the BRL Sector at DED, nounce a partnership with inked the agreement with Emaar Hospitality, to operate Dr Ayoub Kazim, Manag- Address Hotel 2 Février ing Director of axs. Lomé Togo, an iconic hotel As per the MoU, effec- set in the heart of the city and tive 1 July, 2018, axs has in the tallest building in Togo. access to DED’s business “Our current arrangement licensing and registration with Emaar Hospitality Group systems, and can issue, is to bring Emaar’s expertise ing of the property, which dry bulk shipping, hospitality, renew and cancel com- in managing our flagship was first established in 1980. investments and large-scale mercial licenses for its hotel in Togo and develop Address Hotel 2 Février farming, among others and over 4,000 non-free-zone more hotels in Africa the tap Lomé Togo is a hotel project has developed core expertise business partners. The the growing tourism markets under Address Hotels + Re- specialising in revamping agreement also mandates in the African continent where sorts, which has six opera- and bringing back to life na- that 70 per cent of jobs we see increased economic tional hotels in Dubai that are tional heritage assets and newly created by axs activities in the coming popular among African historical properties. Having should be held by UAE years.” guests to the city. Togo marks redeveloped the hotel to nationals. Only 7 kilometres from the the sixth international desti- world-class standards in an Axs was founded in Lomé–Tokoin International nation for the hotel brand that unprecedented 15 months, 2014, to provide licensing Airport, which connects Togo has upcoming hotel projects the Kalyan Group facilitated and registration services to key African cities as well in Saudi Arabia, Egypt, Togo’s hosting of major inter- for TECOM Group’s non- as Europe and beyond, Ad- Turkey, Bahrain and The Mal- national events, including the free-zone business part- dress Hotel 2 Février Lomé dives, in addition to several African Hospitality Interna- ners in Dubai Industrial Togo will be operated by Ad- new openings in the UAE. tional Forum 2016. Park, Dubai Design Dis- dress Hotels + Resorts, the Emaar Hospitality Group has Olivier Harnisch said: “Our trict (d3), and Barsha premium lifestyle hotel and plans to operate more hotels management agreement to Heights. serviced residences brand of in Sub-Saharan Africa, one of operate Address Hotel 2 The move aims to in- Février Lomé Togo is a signif- Emaar Hospitality Group, the key growth markets. crease the efficiency of icant landmark in our expan- which will assume the man- The management agree- company licensing and sion to Sub-Saharan Africa. agement of the property ment was signed by Olivier registration processes, Togo is also strengthening its shortly. Harnisch, CEO of Emaar and enable all TECOM or- Located near the Monu- Hospitality Group, and Ashok tourism sector with the goal ganisations to complete ment de l'Independance Gupta, CEO of Kalyan Hos- of increasing the share of the the full spectrum of trans- (Monument of Independ- pitality Development Togo industry from 2 to 7 per cent actions under one roof ence), Address Hotel 2 SAU, which owns the hotel. by 2020 and investing infra- without the involvement of Février Lomé Togo will open The Kalyan Group has structure upgrades and any external service cen- doors to welcome guests large diversified business boosting the industrial sec- tres. g shortly following the rebrand- with interests in commodities, tor.” g

Gulf Property 79 rofSweet Homes launches its first serviced apartments

SPOTLIGHT

Emirates to invest $40 m in a large vertical firm

mirates Flight Catering (EKFC) and US-based Crop One will co-invest $40 million to build the world’s largest vertical farming facility Enear Al Maktoum Interna- tional Airport at Dubai Weaker Indian currency could spur investment into Indian realty as they would appear World Central. The project cheaper due to the new currency exchange rate for those remitting from the GCC is a joint venture with U.S.- based Crop One Holdings, the world’s leading vertical farm operator. When complete, the vertical farm facility will cover 130,000 square feet, but Rupee slide to help have a production output equivalent to 900 acres of farmland. At full production, the facility will harvest Indianhe continued decline Dubai.real estatealmost 9 percent with 42.34 three US tons (2,700 kg) Indian real estate of high-quality, herbicide- of the value of the In- “The slide in the Indian percent of respondents de- free and pesticide-free dian currency rupee seems to be encourag- clining requirement for fi- leafy greens daily, using (Rupee) will help ing NRIs living in the UAE to nanceto buy property – up 99 percent less water than greater flow of remit- further invest in their home- from 33.66 percent a few outdoor fields. tance and investment by land with lesser dependence months ago. The proximity of the farm Non-Resident Indians (NRIs) on finance,” a statement said. “Further decline in Indian to the point of consump- whoT can see additional value “The research also high- rupee combined with a spate tion also substantially re- of the UAE Dirhams – that is lighted investors’ increasing of regulatory reforms seems duces carbon emissions pegged to the US Dollar – interest in buying property for to be encouraging NRIs to in- associated with trans- every time they remit or con- investment purpose rather for vest in their favourite asset portation. It will also en- vert Dirhams to Indian own use, a rise of about 17 class. We see the interests sure the quick delivery of Rupee. percent was observed from bouncing back as expat Indi- the fresh products, reach- The rupee plunged as 34.98 percent to 40.87 per- ans are not only keen on pur- ing customers within much as 49 paisa to an all- cent now looking to buy prop- chasing a home in their hours of harvest, maintain- time low of 69.10 vs the US erty in India either as their homeland but have also ing high nutritional value. dollar at the interbank foreign first investment or for an ad- shown an increased interest The construction of the exchange market in the ditional investment to build in purchasing purely for in- facility is scheduled to morning session on Thurs- their property portfolio.” vestment purposes,” com- mented Kowshik Mukherjee, start in November 2018 day. According to the survey, 28 Head of Indian Property and will take one year to Indian Rupee is now traded percent of respondents Show. complete. The first prod- at IRs 69 per 1 US Dollar in showed interest in investing Sultan Butti Bin Mejren, Di- ucts are expected to be the open market – its lowest in properties within the range value. NRIs’ interest in in- of 76 lacs to 2 crores, while rector General of Dubai Land delivered to Emirates vesting in Indian properties 46 percent were keen on Department along with Bolly- Flight Catering’s cus- has increased 17 percent, properties ranging between wood celebrity Arbaaz Khan tomers, including 105 air- according to a latest survey 25 lacs to 75 lacs. opened the latest edition of lines and 25 airport conducted by the organisers Based on feedback of the Indian Property Show at lounges, in December of the Indian Property Show about 15,000 NRIs, the fig- the Dubai World Trade Cen- 2019. g that concluded last month in ures showed a difference of tre last month. g

80 Gulf Property

SPOTLIGHT

ConstructionConstruction ofof $1.2b$1.2b Wasl targets Chinese ReemReem MallMall pickspicks upup investors asl Asset Management Group pre- sented its f l a g s h i p Wasl1 project during the recent Luxury Property ShowcaseW Beijing for an audience of over 7,000 wealthy Chinese investors looking to purchase overseas properties. The event followed the successful launch of the first two towers (C and D) at wasl1, which saw wasl sell the vast majority of units in record time. The third tower (A) has now been released onto the Construction works of Reem Mall is on fast track freehold property market and was the focus of l Farwaniya Property waniya Property Develop- wasl’s participation at the Developments, the ments said, “We’re very ex- LPS Beijing, where the developer behind At A Glance cited about the pace at which company’s officials intro- Reem Mall, Abu Reem Mall construction is duced investors to differ- Dhabi’s up and com- progressing. The cranes are ent options available. ing retail, dining and leisure on site, we have nearly com- The three towers are Dh4.4 billion part of Park Gate Resi- destination, today show- development value of the pleted the substructure and Acased the construction Reem Mall in Abu Dhabi have already completed sev- dences, phase 1 of the progress of the US$ 1.2 bil- eral sections of floor in the wasl1 project, which is the lion (Dh4.4 billion) project. superstructure. We look for- company's iconic parkside Construction of the mall 55,000 ward to delivering this world freehold master develop- commenced in late 2017, and square metres ofconcretes class destination, to the peo- ment in the heart of Dubai. within the first few months, 13 were poured for the ple of Abu Dhabi and the Zainab Mohammed, tower cranes have been foundation works wider UAE.” Chief Property Manage- erected and raft foundation Al Farwaniya Property De- ment and Marketing Offi- works are well advanced with velopments also announced cer at Wasl Properties, over 55,000 square metres – 2.9 million that infrastructure works had said: “Our participation at square feet of gross floor the LPS Beijing provided more than 9,000 truckloads – area to be built at Reem Mall commenced with geotechni- of concrete set in place, and cal investigations required for us with a valuable oppor- over 5,500 tonnes of rein- the projects elevated roads tunity to reach out to Chi- which will when completed nese buyers and introduce forcement installed. square feet of floor area) provide unparalleled access them to Park Gate Resi- In addition the superstruc- which will comprise more ture of the project is now un- to the mall for visitors. dences. We witnessed than 450 retail brands, dining high demand among at- derway with the first Reem Mall site is located in options as well as a range of tendees at the show, sup- suspended slab’s recently the Najmat District on Reem porting Dubai’s vision to poured and vertical works entertainment concepts, in- Island, the residential and attract a new wave of Chi- progressing across the whole cluding the much-anticipated commercial master develop- nese investment by show- site. Snow Park Abu Dhabi, a des- ment by Reem Developers. casing attractive offers Reem Mall is set to bring 2 tination snow park attraction. Reem Island is planned to and high-quality proper- million square feet of Shane Eldstrom, Chief Ex- have a population of 200,000 ties.” g leasable area (2.9 million ecutive Officer of Al Far- at completion. g

Gulf Property 81 /

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