Knight Frank Hub Report

THE HUB

REPORT How does Dubai fare compared to other global hubs?

Country Key

= Hong Kong

= United States

= United Kingdom

= Germany

= France

= United Arab Emirates

= Australia

= Singapore

Introduction Mus es et fugitaestio. Ut aute dolesed quiatectis es ped qui alignis volupta et liquos ratempo rehendipid molores serspicto min nimusam, to dolest, in commo que voloreria sequo cum quam, officime nulpari busciun dandendit et quist quias quis dolut doloribust Mus es et fugitaestio. Ut aute dolesed quiatectis es ped qui alignis volupta et liquos ratempo rehenEcustis si dero inist que plit faccus.

Tatias dellaborro conserum quas ape noneces tiissim et eaquibus doluptae vent hilicia vel est, sinvernat.

Ro dit essum ea sum ut atur molut es ulpa quos eium quia ipicilit eum faciatem sincipsae ipidus nos denimus est, con num excessitia ent, cus re idit essitibea doluptatusam acculla cescimus.

Aboris eium eictassitia qui qui ratio coruptatur solore nusapiti dit ea dolupis sit qui dit ullo tectur aped qui aut aperitatiur re sitaspicati consequam quo cum,

simet ad quiat.

Mint eum sit, odic tem que et etur aut odit voles quam facea dolores tecuptat omnihilibus es quatus mosant, soluptaqui sunt a autatem vellaccab in resectotaqui necte suntur, consequate custi quidem voloria nonsecae. Culpa niandio et alistor eprovit eumquam, temposam fuga. Et voloreh enitae volorrorro culpa nulparum landus reptio. Ovit asimi, ut acese sequibus voloriatur sant pelestotatem faccum nobit explab ius, ommo officip issusa sequi quos et, aut eati cum essimpores moluptat quae arum il et ma quis el ipis sim et facerspit vellor secusdam quos

KEY FINDINGS Mus es et fugitaestio. Ut aute dolesed quiatectis es ped qui alignis volupta et liquos ratempo rehendipid molores serspicto min nimusam, to dolest, in commo que voloreria sequo cum quam, officime nulpari busciun dandendit et quist quias quis dolut doloribust Mus es et fugitaestio. Ut aute dolesed quiatectis es ped qui alignis volupta et liquos ratempo rehenEcustis si dero inist que plit faccus.

Tatias dellaborro conserum quas ape noneces tiissim et eaquibus doluptae vent hilicia vel est, sinvernat.

Ro dit essum ea sum ut atur molut es ulpa quos eium quia ipicilit eum faciatem sincipsae ipidus nos denimus est, con num excessitia ent, cus re idit essitibea doluptatusam acculla cescimus.

Aboris eium eictassitia qui qui ratio coruptatur solore nusapiti dit ea dolupis sit qui dit ullo tectur aped qui aut aperitatiur re sitaspicati consequam quo cum,

simet ad quiat.

Mint eum sit, odic tem que et etur aut odit voles quam facea dolores tecuptat omnihilibus es quatus mosant, soluptaqui sunt a autatem vellaccab in resectotaqui necte suntur, consequate custi quidem voloria nonsecae. Culpa niandio et alistor eprovit eumquam, temposam fuga. Et voloreh enitae volorrorro culpa nulparum landus reptio. Ovit asimi, ut acese sequibus voloriatur sant pelestotatem faccum nobit explab ius, ommo officip issusa sequi quos et, aut eati cum essimpores moluptat quae arum il et ma quis el ipis sim et facerspit vellor secusdam quos

Industry & Transport Annual average growth in manufacturing output

Quality of port infrastructure, 20

(1 = extremely underdeveloped to 7 = w 6.8%

1.9%

1.6%

0.5%

-0.1%

-0.3%

-0.8%

3.6%

(in real terms), 2003-2013, %

5.7

5.7

5.4 5.0

* 2013 data unavailable

0.4%

59.0%

30.7%

26.8%

25.1%

21.0%

20.2%

(% of GDP), 2013

7.2%

Value added in industry,

Industry

19.8%

Volume of exports of

* 2012 data

Industrial Property Sector Jebel Ali Freezone

Prime industrial rent

(US$/m2/annum), Q4, 2014

56

sq km

Dubai World Central 140

sq km

86%

Paris

67

Los Angeles

76

Munich

95

Sydney

103

JAFZA

developed

London

12%

developed

176 198

Hong Kong

203

Singapore

217

013

Gross leasable retail area

869

842

750

360

ub

ai

Ca ir Je o dd ah Ri ya d Ist h an b Lo ul Co nd p e on nh a A b ge u n D S t ha b oc kh i o Ne lm w Yo D rk

46

207

5.8

236

6.4

210

6.8

6.6

1,294

per 1,000 population (m2), 2013 1,163

well developed)

10.5%

Air transport, freight (million ton-km), 2013

37,107

13,985

9,440

7,334

6,513

6,032

4,383

2,682

6.8%

6.7%

3.0%

2.8%

1.6%

f goods (% change), 2013

0.6%

2014

HUB REPORT

Class 1 Industrial Rents (AED/m2) 90 80 70 60 50 40 2008

2009

2010

2011

2012

2013

2014

Sources: World Bank, IMF, World Economic Forum, International CivilAviation Organisation, Civil Aviation Statistics of the World, ICAO StaffEstimates, Knight Frank

Employment and Financial & business ser

Annual Average Real G Growth Forecast, 2014 -2019

Number of free trade zones Oman

1

Bahrain

1

Kenya

1

Saudi Arabia

3 8

India

13

US

20

China

38

UAE

Global Competitiveness Report 2013-14 (ranking out of 148 countries) 2nd

4th

5th

7th

19th

10th

21st

23rd

46

New Y

OďŹƒce Property Sector Total stock

797

703

NY

Sydney

1,002

28.0% Dubai

Singapore

11.2% NY

1,023

9.9% Singapore

Paris

9.0% Sydney

1,879 7.3%

53 Paris

Munich

42 NY

6.9%

22 London

Paris

20 Munich

6.7%

11 HK

London

7 Singapore

3.8% 7 Dubai

HK

5 Sydney

London

Prime vacancy rate

(m2, millions)

rvicess 3.0%

2.9%

GDP

19 (%)

2014

HUB REPORT

Days required to start a business, 2013

3.0%

2.5%

3.6%

1.6%

14.5 38

6.5 11

12.0

5.0 10

23

2.5 4

8.0

2.5 2

21

2.5 1

4.5%

1.5%

Total tax rate (% of commercial profits) London 34%

65% Paris 49% Berlin Singapore 27% Hong Kong 23%

6%

Easier

Sydney 47%

York

Ease of Doing Business Ranking

Dubai 15%

The UAE is easiest place do business in the Middle East

Prime rent

Indicative rents by district,(AED/m2)

5

531

565

(US$/m2/yr)

12 3

Dubai

9 11 1 10 2 6

Munich

Harder

8 13

4 7

1 TECOM C 2 Bur Dubai 3 Deira 4 JLT 5 Festival City 6 Emaar Business Park 7 Business Bay 8 Sheikh Zayed Road 9 Knowledge Village 10 Internet City 11 Media City 12 Emaar Square/Downtown 13 DIFC

915 969 1,075 1,130 1,355 1,399 1,453 1,510 1,615 1,615 1,615 1,991 2,530

Sources: World Bank, IMF, World Economic Forum, Knight Frank

Tourism

Sydney 8

7

6

Sing apor e

Paris

14%

London

18%

Singapore

18%

Sydney

21%

Hong Kong

23%

New York

41%

Dubai

43%

0.4

0.9

2.4 2.5 1.6 1.7

Luxury hotel rooms as a proportion of total hotel stock, 2013

Millions

Hospitality Sector Passenger Traffic at Dubai International + London Heathrow London Heathrow Passenger Traffic

35

30 Dubai Int'l Passenger Traffic

25 H1 2011

H1 2012

H1 2013

H1 2014

Average Occupancy, 2013 (%)

88

Hong Kong

80

Dubai

84

Sydney

86

Singapore

82

London

79

Paris

89

New York

Dubai

New York

London

Sydney

23 % 13 %

Annual growth in the number of luxury hotels keys in Dubai, 2013

2

Ne w

Yo rk

is Par

per 1,000 population Hong Kong

9

Annual growth in the number of hotels keys in Dubai, 2013

Luxury keys

Paris

11

Lon do n

per 1,000 population

Singapore

i Duba

ng Ko ng Ho

28

Keys

11.8

HUB REPORT

Total number of overnight visitors

Paris 15.3m

17.3m London

2014

Singapore 12.1m

Hong Kong 8.3m

2.8m

Sydney

Dubai 11.1m

New York 11.1m

11

Rise in the number of visitors

% to Dubai over 2012-13

Average Daily Rate, 2013 (US$)

125.7 170.5

Average length of stay

(incl. domestic + international), nights Sydney

Paris

Hong Kong

2.2

2.7

3.4

3.4

3.9

5.3

Dubai

Singapore

London & New York

187.3 206.2 232.0 232.2 296.0

Sources: DTCM, Destination NSW, Singapore Tourism Board, Business Monitor, Hong Kong Statistics Agency, PwC, Paris Office du Tourisme et des Congres, STR, NYC & Company, Visit Britain, Tourism Alliance, Knight Frank, MasterCard Worldwide Insights

Tax 6.9%

25%

-2.5% 205,500 PARIS

5%

10.9% 150,000 NY

-2.9% 750,000 HK

45%

15%

19.3%

-7.7% 579,000

39.6%

SINGAPORE

20%

9.8%

8.1% 295,350 LONDON

Total purchase cost (% of purchase price) Annual property price change Purchase cost

7.9% 10.9% 237,000

45%

SYDNEY

xx%

xx% xxx,xxxx

Income Tax

CITY

45%

6%

6.3% 180,000

xx%

DUBAI

0%

1.41

8

4

245

12

2.06

24

13

120

67

0.47

10

32

Lifestyle factors

350

Residential Property Sector Days of sunshine per year Number of international schools with a 50km radius of the city How far is the closest international airport Average cost of a litre of petrol over the last 12 months (US$) Cost of living (2014 Cost of Living Survey) (higher ranking - lower cost of living)

Dubai

London

Sydney

2014

11.4

12.0

12.5

11.3

10.1

Q3 2011

9.6

10.5

12.7

12.9

12.0

13.9

9.2

Q3 2012

10.7

10.0

14.0

13.6

14.3

13.6

8.9

Q3 2013

13.7

11.0

15.0

13.6

13.7

13.1

9.6

Q3 2014

15.5

11.7

16.1

13.4

12.4

12.8

10.7

NY

Hong Kong

Singapore

1.85

10.6

33

9.4

5

Q3 2010

122

10.0

4

10.0

1.26

10.0

23

10.0

13

10.0

186

10.0

3

10.0

2.06

Q3 2009

43

Sydney

9

Paris

150

Singa

16

HK

1.16

London

29

New York

19

Dubai

Paris

27

How has the price of a hypothetical $10m prime residential bought in Q3 2009 changed in subsequent years?

100

26

HUB REPORT

Sources: World Bank, KPMG, Knight Frank

Contacts James Lewis General Manager/Partner O +971 4 4267 606 M +971 50 226 5368 Harmen De Jong Partner: Development Consultancy and Research O +971 4 4267 623 M +971 56 1766588 harmen.dejong@me.knightfrank.com Khawar Khan Research Manager O +971 4 4267 624 M +971 56 1108 971 khawar.khan@me.knightfrank.com Matthew Dadd Partner Commercial O +971 2 6353 286 M +971 56 6146 087 matthew.dadd@me.knightfrank.com

Jon Mcgloin Senior Surveyor Commercial O +971 4 4267 603 M +971 50 8158 370 jon.mcgloin@me.knightfrank.com Victoria Garrett Associate Partner Residential O +971 4 4267 609 M +971 56 7835 523 victoria.garrett@me.knightfrank.com Arun George Senior Surveyor Commercial O +971 4 4267 605 M +971 56 7834 559 arun.george@me.knightfrank.com

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