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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