Dubai Real Times Feb'10

Message from the Director General

Fifty golden years As a small seed produces a large tree so from small, humble beginnings Dubai’s Land Department has grown into a large, modern, technology-savvy corporation looking after the emirates’ real estate market in all ways. For 50 years the Land Department has seen epochmaking developments.

From a land sale transaction confirmed by a handshake in the sixties, Dubai’s land and property regulations have come a long way. These traditional methods have been replaced with contracts, paperwork and modern legislation facilitating transactions between landowners and buyers, and their heirs.

Since then, the committee, now called Land Department, has kept pace with the great strides the country has made towards modernisation.

Today, we celebrate the journey so far, and look forward to the years to come.

Sultan Butti Bin Mijrin Director General, Land Department

DUBAI REAL TIMES

The story started on 24 January 1960 when His Highness Sheikh Rashid bin Saeed Al Maktoum, the late Ruler of Dubai, signed a decree, stating: “We have decided to establish a committee to oversee affairs related to land and private properties in the emirate, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of our people.”

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50 years … and counting Dubai offers many examples of extraordinary achievements, and this year, on its 50th anniversary, few would argue the Land Department does not deserve to be ranked among the most impressive. The simple fact of the matter is that the Land Department is one of the oldest of Dubai’s formal government institutions.

The Department first saw the light of day 50 years ago, on January 24, 1960, courtesy of H.H. Sheikh Rashid bin Saeed al Maktoum’s foresightedness. Even at that early stage, this visionary leader was able to foresee the need to put in place an institution which would formalise land ownership and manage the dual and parallel existence of government, non-government and private rights over real estate. He was sufficiently far-sighted to anticipate the need for some legal buttress for the system he regarded as so essential to the future of the emirate.

The result was a decree establishing a Land Committee to “oversee affairs related to land and private properties in the emirate, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of our people.”

Fifty years later, now that we are properly able to put into perspective the significance of those first initial steps, we are able to genuinely appreciate their significance and contribution to present-day Dubai. Effectively, they laid the groundwork for modern Dubai, for the unprecedented scale of private and public real estate development which occurred in the following decades and, crucially, for today’s Land Department as one of the most progressive and highly developed land registries and regulators anywhere in the world.

So, if even from this contemporary perspective, those early steps must be considered sufficiently impressive to be regarded as genuine achievements; what was to follow can only be described as extraordinary.

Because from those humble beginnings – the Sheikh’s vision, a single decree, a small office overlooking the creek, 20 staff occasionally processing real estate transactions and issuing handwritten title deeds – emerged the modern-day Land Department. This institution is a leader and first-class government institution with responsibility for a sector attracting many billions of dollars in local and international investment. Equally, there is no doubt that it is genuinely an international class institution applying global best practice across all its operations and activities and leading the way in innovation, standard setting and professionalism. Truly, a remarkable achievement in its short span of history.

And there is no question that the Department is a first-class institution fit to rank among the best in the world. A series of top awards, state-of-art technologies, more than 170 services, and formal recognition from global institutions such as the World Bank confirm the Land Department has become a fully mature institution that ranks among the best of the best not only in its own field but among all government entities.

The pioneer has undertaken a long, and at times, arduous journey along paths whose eventual destination would not always have been clear. Fifty years later, it has arrived at a destination which makes all that has gone before worthwhile. Nevertheless, the journey continues. We are at the end of the beginning; and set fair to continue to lead the region, and protect the rights and interests of all our stakeholders.

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C O N T E N T S

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Golden Jubilee

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Bulletin Board

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Personality

Professional status Eye of the storm

10 Statistics Transactions in Dubai

12 Association Taqyeem and TEGoVA

MTA Greater Stability Market equilibrium Opportunity index Alternative financing methods Burj Al Khalifa Owners Association

22 Comments A new address Foreclosures Opportunities for savvy investors Mergers and acquisitions Customer supremacy Ban the spam 29 Environment Green buildings 32 Discussion Knowledge transfer on sustainability

34 Infrastructure Building Dubai together 36 Focus Green roofs Legislation to solve disputes Valuations Safety on site Rentals 41

Launches Conference centre, factory and apartments

44 Under Construction Ground breaking ceremonies 46 Handover Ready and occupied

49 Facilities & Services Safeguarding freehold investments 50 Community Awards and charity work 51

Legally Speaking Clause for concern Legislative Agenda for 2010 Questions & Answers Decree no. (56) of 2009

56 Developers List 64 Appointments Dubai Properties Group

DUBAI REAL TIMES

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4 Cover Story

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Golden jubilee

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COVER STORY

Golden jubilee DUBAI REAL TIMES

Land Department celebrated its 50th birthday last month, and it put on an exhibition of 50 photos from days gone by in the atrium at Dubai Mall as a present.

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the award-winning real estate registrar and regulator it is today.

HE Sultan Bin Butti said: “This occasion puts into perspective the remarkable progress that has been made in the past 50 years. Its significance lies, of course, in the fact that it reflects the changes and developments in Dubai itself in the past five decades and which has seen a transformation of a city unprecedented in modern times. This exhibition is a marker of how much has been achieved in a remarkably condensed period of time.”

The photographs are of people, buildings and a collection of antique title deeds harking back to an age when these documents were handwritten and signed by the Director General and real estate transactions were sealed with a handshake.

He added: “The photographs track some of the changes. To my eye the title deeds are at least as interesting, and demonstrate in the clearest possible way how quickly and conclusively not

only ownership but the procedures involved in establishing title have changed in the past half century.”

The exhibition covers three distinct eras: The 20-year period from 1960 to the 1980’s covering the early years of the Department’s existence and the formative years of Dubai’s development, the creation of the Federation and closer ties between the participating seven emirates.

The second part of the exhibition is rooted in the 1990s when the groundwork was laid for much of the future escalating growth of the emirate.

Part three covers the progression of the Department and Dubai in the recent era of transformation and growth which saw Dubai become a global city and the Land Department one of the world’s leading registries and real estate regulator.

The property story in Dubai started from the day Dubai Land Department was established on January 24, 1960

when His Highness Sheikh Rashid bin Saeed Al Maktoum, the late Ruler of Dubai, signed a decree, stating: “We have decided to establish a committee to oversee affairs related to land and private properties in the emirate, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of our people.”

Since then, the Land Department (LD) has kept pace with the great strides the UAE has made towards modernisation. In days bygone, the sale of land was based on trust, and sealed with a handshake. Now, these traditional methods have been replaced with contracts and paperwork.

All matters of legalisation of sale and purchase of lands have been entrusted to the LD. This has served to regulate the registration process and protect property from misappropriation. It has also facilitated transactions between landowners and buyers, and their heirs, when applicable.

Throughout the decades, the LD

DUBAI REAL TIMES

H Sheikh Mohammed Bin Khalifah Al Maktoum, President of the Land Department, opened ‘50’ an exhibition of photographs and historical documents scheduled as one of the feature events of the Department’s 50th anniversary celebrations which began in January.

He was joined by Land Department Director General Sultan Bin Butti Bin Mejren, VIP guests, senior government officials, real estate corporate heads and the Department’s senior management for the ceremony and special viewing held at Dubai Mall HH Sheikh Mohammed Bin Khalifah Al Maktoum cut the ribbon to formally open the exhibition which ran until the end of January.

On display was a unique collection of photographs capturing the defining images of the five decades of the Department’s history and which has seen it transformed from a small committee located in an office overlooking the creek back in 1960 to

6 Group photograph of the Land Department employees in the early sixties

HH Sheikh Mohammed Bin Rashid Al Maktoum in a photograph alongside the Land Department executives during the ceremony held to honor the winners of Dubai Government Excellence awards in 2009

regulates, manages and licenses various real estates related activities in Dubai. RERA was established in July 2007 by a decree of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai.

RERA envisages a transparent and effective regulatory environment in which various entities pertaining to real estate can conduct their business. As part of this vision, RERA would like to create an online community and marketplace thus enabling various categories of stakeholders to interact and transact with each other and with RERA The new initiative by RERA to launch one of its kind online, virtual community for the sector is one step in the ladder of the Land Department vision. The real estate community shall serve all real estate stake holders. The online community and marketplace shall have an educational and training hub flavour for disseminating the information needed by the authorities as well as developers and brokers alike. The online community and marketplace shall service all the real estate practitioners, Â including investors, property developers, consumers of Dubai property and all associated with the peripheral supporting industries such as banking, finance, insurance and legal professions.

The community will also allow people associated with the real estate industry to better serve their industry, their clients and customers and realize their objective.

Community members that will regularly visit the portal and marketplace, will gain a deeper appreciation of the rules and regulations, and will stay updated on changes affecting real estate business conducted in Dubai to stay ahead of the crowd and be prepared for transacting a sale or purchase in Dubai.

Keeping Dubai’s strategic plan 2015 as its guide, the Land Department is working to upgrade all Dubai real estate services to be the trusted, strongest, fastest and most transparent real estate registration system in the world.

A photograph of one of the oldest Land Department buildings

Forms of old documents used for documentation of property transfer

DUBAI REAL TIMES

gained the trust of UAE nationals, by offering sound advice and distinguished services.

It has left the era of manual work behind, keeping pace with advanced technology, which allows it to provide clients with quality and time-efficient service. Several electronic systems are in place such as the Land System, the Land Information system(LIS), the archiving system and the newly launched pre-registration system.

Land Department has a comprehensive set of applications to meet various business requirements and processes. These include GIS (Geographical Information System), Registration systems for Agents and developers, Parcel Locator, e-Mortgage and website providing basic information. Many of the applications are home-grown and provide rich business functionality.

Land department applications are built around Microsoft and Oracle technologies. Server infrastructure is in-house deployed and managed.

The Government of Dubai instituted new rules, regulations and laws in the Emirate to regulate the market, to protect the rights and interests of consumers, and to ensure Dubai property investors are assured the highest possible service standards from real estate agents, brokers and property developers transacting business in Dubai and maintain the integrity of all the developments.

Real estate laws and regulations are in place. The Land Department launched a number of laws and regulations that regulate the property sector: starting with Law No. 7 concerning land registration in Dubai, Law No. 3 concerning areas of properties that can be owned by non-UAE nationals in Dubai, Law No. 8 concerning property trust account in Dubai, Law No. 85 concerning real ease agent regulation and the upcoming strata law. A number of additional laws are in the pipeline such as the mortgage law and the time share regulation.

The latest move of Dubai government to regulate the market is the establishment of Real Estate Regulatory Agency (RERA), part of the Dubai Land Department, which is a nodal agency that formulates,

7 A photograph of the Land Department older building during the early sixties

BULLETIN BOARD

Brokers achieve professional status following RERA initiative

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he prospect of an ‘all professional’ property sector in Dubai moved a step closer last month with the Real Estate Regulatory Agency (RERA) announcing an agreement with the Ministry of Labour (MoL) to have real estate brokers officially recognised as a separate professional category. New Labour Cards and Residence Visas issued to real estate brokers will now include their designation, replacing the previous practice of categorising them all as sales staff.

RERA is close to finalising a comprehensive agreement with the MoL which will see all the professions it registers, such as valuers, consultants, mortgage brokers, agents and surveyors, formally recognised as separate job categories by the ministry.

Marwan bin Ghulaita, Chief Executive Officer of RERA, said, “This is the first step towards a complete classification of the

Marwan bin Ghulaita

real estate professions in Dubai.”

Bin Ghulaita added, “The practical objective is to make sure each real estate professional’s designation reflects what he does, so buyers and sellers are clear that they are dealing with properly qualified, competent, licensed and registered professionals.

The overall effect will be to increase transparency and professionalism across the sector. This, in turn, will boost confidence in property dealings and in the networks of agents and third parties investors depend on to execute their transactions.”

“Previously, there were no officially recognised categories for real estate professionals and none was recognised by the ministry. RERA, as the custodian of these professional services, took the initiative and approached the MoL. The ministry has now approved the first step of officially recognising ‘broker’ as a professional category and this will be included in all the related professional and operations documents,” Bin Ghulaita pointed out.

“So when firms come to renew their registration and labour permits, these will be issued with the new designation,” he said.

RERA has, as part of its agreement with the MoL, set up an electronic link direct to the ministry which will allow the exchange of information to speed up processing of Labour Permits.

This RERA initiative effectively establishes the basis for the professional framework the agency’s CEO, in particular, has recommended as the most efficient regulatory mechanism for Dubai’s real estate market. Mr. Bin Ghulaita said: “A properly professional sector is an investor’s best guarantee. If the lawyers, valuers, brokers, consultants are qualified and trained by professional associations registered here, and who regulate their members’ conduct, then we have sound foundations on which to build. RERA takes that process forward in playing a key role in the legislative and regulatory framework established by the government, but our success must depend on professional associations.”

Harmonisation of real estate professional practice draws closer

DUBAI REAL TIMES

Agreement puts Dubai Property College at centre of new cooperation initiative

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Dubai Property College, which saw some 5,000 students take its courses last year and is the only specialist real estate academy in the Arab world, is set to act as a catalyst for harmonisation of professional standards and training across the regional real estate sector, following an agreement with an Arab Leaguebacked organisation. The college, a member of the International Union for Property Education (IUPE), has extended its scope of operation with a formal tie-up with the Arab Leaguesponsored Arab Administrative Development Organisation (AADO).

Under the terms of the partnership, the Dubai-based college which is affiliated with the Land Department

and its Real Estate Regulatory Agency (RERA), will spearhead a new initiative to spread real estate sector professional education and training throughout the region.

The agreement was formally signed by Mahmoud El Burai, director of the college, and Dr Rifhat Al Faoury, the general manager of AADO. Mr El Burai, who is also RERA director for Real Estate Development, said: “This agreement marks a pivotal moment for region-wide cross border cooperation on real estate professional practice and training.

It puts in place the foundation, not merely for harmonisation of standards and practices, but also for the creation of a real estate bloc

Mahmoud El Burai

with huge appeal and, significantly, credibility for investors from any part of the world. The aim is to get the professional practice right by making sure the training is available to a level which is aligned with best international practice.”

The partnership is looking to a

future where the regional real estate sector has a strong professional and knowledge base. Earlier initiatives, with the Land Department at their centre, have focused on building regional and international cooperation across a number of real estate specialist areas. In fact, the organisation, in tandem with RERA, was instrumental in organising the recent Arab Conference for Real Estate Development and Construction held in Dubai. That brought together experts from around the world, including leading institutions from the US, Europe, UK and Singapore, to participate in discussions aimed at raising standards and building cooperation across the region.

PERSONALITY

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he ‘perfect storm’ which has swept like a wind of change through the Dubai real estate sector and turned the rental market on its head, shows few signs of abating. Still, it is reassuring to discover that amid the turbulence the ‘eye of the storm’ offers an unexpected haven of calm.

How much this can be attributed solely to the work of the Real Estate Relationships Regulatory Department, part of RERA is debateable. What is not open to question is the value of its contribution in bringing to the marketplace order, fairness and a cap on the excesses indulged in by landlords.

If the Department remains one of the less prominent players in Dubai’s high profile real estate sector nonetheless it continues to be key to the much sought after stability which is so essential to being able to plan as the marketplace adapts to a new economic reality. Its role as overseer of the ground rules, laws and practices which regulate the rental tier of the sector, and broad responsibilities for ensuring the equitable application of the law as between landlord and tenants, remain crucial. It also covers the now firmly established rental index and rent cap, registering leases, and the activities of landowners and owners associations. Effectively, this is the part of RERA which acts as the ombudsman for real estate rental in Dubai.

The formal aspects of this department, its roles, responsibilities, and procedures are easy to pin down.

Less so are the spirit and motivation which drive its activities and result in customers leaving the office reassured, more often than not their problems solved, and almost without exception grateful for the assistance and care they receive.

“That is the best reward for what we do,” says Maitha Al Mazroua, one of the Department’s Senior Officers

Maitha Al Mazroua

and an ambassador for its best qualities.

“Often, what they are really looking for is someone to talk to, who will listen to them and point them in the right direction. I try to help in any way I can,” she adds. “I like my job and I like to help. No two days are the same and that is part of the attraction of what I do.”

First contact with the Department is likely to be through either Maitha or one of her colleagues. You are guaranteed a sympathetic ear plus knowledge, expertise and experience of the practical application of the rules and regulations.

Maitha spent 10 years with Dubai Development Board before joining RERA two years ago. “We are a very small Department – with a core team of me and my manager Mohammad Bin Hamad - with a limited remit to help tenants, landlords and companies to solve their problems where these involve real estate rental law and practice such as the practical application of the Rent Index to rent increases, service charge levels, or contract terms for a lease.

And which question is she most often asked? “It is usually along

the lines of: I can’t open the rent calculator on the RERA site could you calculate the …? Whenever I have checked the site subsequently there has not been a problem. The reality is that not every customer can use the calculator, even though it is very simple. My feeling is that they want to discuss their problems with someone and the Department offers them a willing ear. In the main, the answer will already exist, perhaps in the law, and they just need it pointed out to them. At other times, a different approach is needed altogether and we try to accommodate this.

What we have and are able to offer is experience. No matter what the difficulty is in all probability we would have faced it at some time in the past and know at first hand how to deal with it. For our customers the problem is new every time and despite the experience we have in the Department I can honestly say that in trying to deal with them I learn something new every day.

As well as tenants we deal with owners of leased properties and management companies who are required to lodge details of their operations and transactions in order

to renew their licenses. The Ijari system for registering property management companies will be ready in a matter of weeks and the implications of having it in place are immense as it will offer the Department comprehensive details of all rental transactions and their terms. The system will allow remote input but will of course restrict access to the information.

At the moment our priority is basic data input of details such as the unit being offered, its area, price per square foot and DEWA number. All the vital information will be entered in the system to enable better regulation and monitoring taking us a step closer to the cleaning up and proper writing and registration of contracts that we have been looking for.”

Her 10 years with the Board, which followed a Diploma course in Business Administration taken at Dubai Women’s College, gave her a sound ground for the role she has undertaken at RERA. Nevertheless, there was some trepidation on her part when she first agreed to move over. She says: “I had spent 10 years with the Board and was comfortable.

I knew the work and I knew everyone, so it was quite an undertaking to change it all and move to a new job and new people. But I am happy with the way it turned out. I liked this department from the very first day. It is like being part of a family.”

It has some unique characteristics too she explains: “The people, the place, the style of working, and the access you have to all levels, even to the Director General. Some places pay lip service to the idea of an ‘open door’ policy. This is not true of the Land Department.”

The calm at the centre of the storm is rippling out and, increasingly, offering a safe haven for the rental community and price stability. Maitha continues to be part of that calming influence.

DUBAI REAL TIMES

The eye of a storm

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STATISTICS

2009 Report of real estate transactions Total Transactions value of the year 2009 was Dh153 billion through sales, mortgages, Ijarah, governor of the mortgage, deferred, Musataha and donations.

Land Land Sales Transactions : Total number of sales was 6,924 with a total value of Dh66,294 million for 114,875 thousand square feet.

Jebel Ali had the highest number of Sales with 2,242 transaction.

The highest value of sales was achieved by Jabal Ali district with Dh24,234 million.

The largest area size was in Nad Al Shiba district with 33,356 thousands square feet

Total Number of Land Sales Transaction -Top 10

DUBAI REAL TIMES

Total Area of Sales Transaction (thousands Sq.ft) - Top 10

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Note: this table represents "Sales & Mortgages "Only

Total Value of Land Sales Transaction (Million, AED) - Top 10

Land Mortgage Transactions : Total number of land mortgage transactions was 3,983 with atotal value of Dh 50,964 million for 229,267 thousand square feet Auood Al Meetina First Districts had the highest number of mortgages with 612 transactions.

The highest value of mortgages was achieved by Jabal Ali district with Dh9,780 million.

The largest area size was in Jabal Ali First district with 93,411 thousands square feet

Flat

Flat Sales Transactions:

Total Number of Sales Transactions was 22,715 with a total value of Dh20,455 million for 24,449 thousands square feet Warsan First had the highest number of Sales with 7,720 transactions.

The highest value of Sales was achieved by Dubai Marina district with Dh4,554 million.

The largest area size was in Dubai Marina district with 5,163 thousands square feet

Total No. of Flat Sales Transaction

Flat Mortgage Transactions

Total number of mortgage transactions was 5089 with a total value of Dh5,951 million for 1,793,801 thousands square feet Dubai Marina had the highest number of mortgages, with 934 transactions.

The highest value of mortgages was achieved by Dubai Marina district with Dh1,475 million.

The largest area size was in Motor City district with 1,245,671 thousands square feet

Total Area Flat of Sales Transaction (thousand Sq.ft).

Flat Total Area of Mortgages Transaction (Thousands Sq.ft)

Villa

Villa Sales Transactions

Total Number of sales transactions was 1322 with a total value of Dh3,790 million for 6,431 thousands square feet Emirates Hill 3rd had the highest number of Sales with 672 transactions.

The highest value of Sales was achieved by Sheikh.Zayed Road district with Dh1,645 million.

The largest area size was in Emirates Hills Third district with 2,075 thousands square feet

Total Number of villa sales Transactions

Villa Mortgage Transactions:

Total Number of villa Mortgage Transactions was 787 with a total value of Dh1,381 million for 3,061 thousand square feet Emirates Hill 3rd had the highest number of Mortgages with 391 transactions.

The highest value of Mortgage was achieved by Emirates Hill 3rd district with Dh558 million.

The largest area size was in Emirates Hill 3rd district with 1,282,392 thousands square feet

Total Area of Villa Sales Transaction (Thousand Sq.ft) DUBAI REAL TIMES

Total Value of villa Sales Transaction (Million, AED)

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ASSOCIATION

Taqyeem and TEGoVA A first step to convergence of Arab and European valuation practice

By Roger Messenger REV Chairman of TEGoVA, The European Group of Valuers’ Associations

DUBAI REAL TIMES

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am honoured by this opportunity to address the Dubai Government, real estate and valuation professions and inspired by the immense opportunities opened up by Taqyeem in TEGoVA, the first ever membership in our organisation by an Arab valuation body.

I am fully aware that Dubai and the United Arab Emirates are at the fulcrum of many regions, Asia and Africa just as much as Europe. That is one of its commercial and cultural strengths. Nonetheless, I do believe that Europe and TEGoVA hold special promise for Taqyeem and for Arab valuers generally, and vice versa, and I look forward to developing that potential in the years to come.

Impact of E U on real estate and valuation What is special about European valuation is the harmony that stems from the political and economic integration of the European Union.

This directly affects real estate because the EU guarantees the freedom to invest in property anywhere in the Union without obstacle, and that is no small achievement. Current events show that, in a world of sovereign states, where treaties and ‘open markets’ are here today and gone tomorrow, nothing is guaranteed, especially concerning the right to buy land and buildings. Witness, even before the crisis, China’s crackdown on foreign

property investment, about which nobody can do anything.

The only place cross-border property investment is guaranteed is the EU, because it is not a trading bloc, it is a union of European citizens founded on real political institutions and a real court of Justice that guarantees the right for everybody to buy and sell property wherever they want, without obstacle.

The very meaning of ‘freedom to invest in property’ varies from night to day depending on whether you’re talking global or European.

Globally, it means, at best, in a given country, that there’s no law formally forbidding foreigners from buying local real estate. Beyond that, there can be any amount of controls, and

foreign investors are often a captive market for all local real estate service providers. In the EU, freedom to invest means the whole package: investors can buy wherever they want, they can use their own estate agents, valuers, architects and contractors, from the investor’s home country or from anywhere else in the Union. And above all, the EU means security: these freedoms can never be repealed.

This was not done in a day. It took more than 30 years just to get free movement of capital, the basic building block of crossborder property investment, and even today, 25 years after that was achieved, much work is still under way: property investors need to

of the EU on real estate is the fight against climate warming. Buildings are key – 40 per cent of European CO2 emissions come from buildings – and the EU, working with us, has produced a raft of legislation that could make European real estate the world leader in carbon reduction and in overall environmental performance. Energy performance renovation and certification requirements for buildings are being increased, including renewable energy, and also extended to water performance of the building and, in response to a two-year effort by TEGoVA, EPF and allies, there will be harmonisation of the certification categories of commercial buildings, so that investors and developers can market their environmentally cutting-edge buildings globally and valuers can start integrating the EU energy grades into their reports. The EU Ecolabel is being extended to buildings, EU green public procurement is prioritising construction, and construction products will have to be more environmentally friendly to earn the EU CE mark, facilitating crossborder trade. EU flood management rules are keeping property above water and EU money is repairing the damage already done, for instance in my country, the UK. It all means a change to planning, construction and investment culture for half a billion people, a massive challenge and opportunity for

investors and valuers.

Opportunities for Taqyeem and TEGoVA I believe that the EU and its real estate policies present an opportunity for mutual benefit between Arab and European investors and between Taqyeem and TEGoVA. A key aspect of the EU is that any company, even non-European, that is already operating in one EU member state has automatic access to all the rest of the Union. Thus, all the EU treaty freedoms as they apply to real estate – free circulation of capital and freedom to provide services with or without establishment in other member states – apply to any UAE property company investing in the EU. As a result, the unification and harmonisation of European property investment rules and conditions is potentially as advantageous for an Arab investor as for a European. Arab investors in Europe have the immense advantage of being able to compare their pan-European investments according to harmonised criteria.

But investment flows both ways, and Dubai remains one of the most attractive long-term markets for European investors. Taqyeem’s membership of TEGoVA and of the Recognised European Valuer scheme makes Dubai, its government and its valuers particularly appealing to European investors operating in the UAE.

There may also be lessons to be learnt for UAE valuation authorities from European experience. That is because Europeans have had so many more market busts and hopefully each time they’ve pulled out of one they have learned some painful lesson. Also, TEGoVA is an organisation involving 40 professional bodies from 25 countries. That makes for a lot of synergy and hopefully some collective wisdom emerging from the confrontation and distillation of so many different professional experiences.

The most exciting aspect for us about Taqyeem membership is that its delegates are now going to be an integral part of TEGoVA, participating actively in the production of valuation standards and valuer recognition procedures adapted to the challenges of current times. We look forward to a strong Taqyeem contribution at all levels of TEGoVA standards and recognition work. Indeed, we hope that Taqyeem’s membership will lead to wider Arab participation in TEGoVA and that the Union for the Mediterranean, which already has interesting real estate financing components, may turn out to be the political underpinning for a EuroArab cooperation and integration that could over time produce the largest and fastest growing real estate investment and valuation area in the world.

DUBAI REAL TIMES

be able to use their preferred investment vehicles, such as real estate investment trusts or openended real estate funds across the Union, without obstacle. Ordinary people need to be able to buy a secondary residence wherever they want, using their home country mortgage bank. EU legislation is still needed for this and TEGoVA is working on it with the European Property Federation (owners and investors) and the EU authorities.

The crisis in the financial markets also requires common European solutions, and not only is banking supervision now going to be a largely EU affair, so too, are real estate funds and their managers who will now be subjected to EU supervision and control. TEGoVA is working on the many valuation aspects of this with the EU authorities.

But perhaps the most exciting aspect of European valuation is the extent to which the success of cross-border property investment depends, not just on EU law, but on the rules and safeguards set and policed by the valuation profession itself. That is because common European valuation practice is truly market-led: in a cross-border context, first-time investors on a new and strange property market need reliable local valuation more than anybody else. They are more dependent on valuation than they would be in their home countries, which is why they need the assurance that their local valuer works according to the same core European valuation standards as in the investor’s home country. Just as important, the investor needs to be sure that the local valuer is qualified to a recognised high European standard. That is why TEGoVA’s European Valuation Standards and its Recognised European Valuer scheme have become central to the whole European cross-border property investment and valuation process.

The second fundamental impact

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MARKET TRENDS & ANALYSIS

JLL forecasts greater stability Rate of decline in residential rents and values has slowed, says Dubai Real Estate Market Overview

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he year 2010 would be marked by increased vacancies and a continued decline in average prices and rentals across the market, which is expected to show comparatively greater stability, according to Jones La Salle’s latest Dubai overview.

This will be further helped by the strength of ongoing demand, it said.

Overall, all the segments of the market - office, residential and retail - are becoming more favourable for tenants, the leading property consultancy firm said.

In the residential market, average prices and rentals in the Dubai are expected to show more stability in 2010 as the rate of decline has slowed in the past few months, the report said. While conditions may stabilise in some locations and sectors, the overall market is likely to see a continued decline in average prices and rentals in 2010. The performance of different locations will be more driven by local demand and supply issues, it pointed out.

“Prices seem to have stabilised over recent months, despite the existing over-supply situation.

Stabilisation of transactional volumes is another positive indicator of investor confidence, but the lack of housing finance remains a major challenge in Dubai. An improved lending scenario is one of the key factors for a sustainable recovery as the value of mortgages as a percentage of total sales value has dropped significantly during 2009,” said Blair Hagkull, Managing Director of Jones Lang LaSalle MENA. With an additional 24,000 units expected to be completed in 2010 and 25,000 units in 2011, there may be an emerging opportunity for both investors and financers in the Dubai residential market as it has already seen a significant level of pricing adjustment in 2009, he pointed out.

The report pointed out that the office market was becoming increasingly favourable for tenants as it witnessed a significant demand-supply mismatch along with falling rentals and increased vacancies. While demand levels are increasing, as both existing and new tenants seek to consolidate and take advantage of better quality space becoming available on more

competitive terms, there is not likely to be enough demand to meet the high level of new supply entering the market in 2010.

The report pointed out that

Demand levels in the office segment are increasing as both existing and new tenants seek to consolidate and take advantage of better quality space becoming available on more competitive terms

average vacancies across the city are therefore likely to increase from their current level of around 33 per cent during 2010; much of this space is contained in strata titled buildings in non-core locations. Many international and regional tenants will not consider such space and an increasingly two-tier market is therefore likely to emerge. Vacancies in single ownership buildings in the most sought after Central Business District locations are currently

DUBAI REAL TIMES

Current and Future Residential Supply

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less than 10 per cent, resulting in selective shortages in meeting certain tenant requirements.

Vacancies in this sector are likely to remain limited and this is in many

ways a more telling statistic given the polarisation of demand, it said.

“The tenant is becoming the ultimate winner as the office market is going through a significant adjustment with more vacancies and cheaper rents on offer. This scenario is encouraging for businesses as it offers multiple options for expansion and relocation as Dubai becomes a more competitive office location, both locally and regionally,” Blair said.

“Given the current oversupply in many sectors, we will see a shift this year from asset creation to asset management as the market moves into a period of more controlled and regulated growth. We also expect to see a greater emphasis on corporate governance and market transparency,” the report said.

Referring to the global real estate market, the report states that the New Year has unfolded, for the most part, with a more orderly and thoughtful approach in the international real estate markets, where caution is still the dominant sentiment. Debt markets are easing, distressed assets have not overwhelmed, and rents are

occupiers are thinking strategically about what the new reality can offer.

“The old year passed with a few pleasant surprises. Leasing activity in Asia-Pacific continued to gather pace in the fourth quarter, and across the region, yields in most office markets started to compress as asset prices increased. Ample liquidity in the market sparked more transactional activity and led to the start of rising capital values”.

The report notes that in the Europe, Middle East and Africa (EMEA) markets, there was steady improvement in activity during the year from the low point in quarter

them back to 2002 levels.

“US still faces challenges.

Although sales activity bottomed out in the second quarter of 2009, the recovery to date continues to be very muted and uneven. Only in top-tier coastal cities do supply and demand patterns seem to indicate a return to stability. In other US office markets, vacancy will continue to rise and rents will fall throughout most or all of 2010, as many corporations accelerate their space rationalisation and consolidation activities.

JLL feels that momentum may have arrived for the global real estate market at last, and any further upside surprises will be welcome.

Office Supply - Current and Future Stock

Asking Vs Acheived Prices

bottoming out in most countries.

“Now that the problems have largely been quantified, the search for solutions is on. For example,

one. Investment volumes edged close to 70 billion euros in 2009 and are expected to increase by nearly 20 per cent this year, albeit only bringing

Last year’s shadow may still cloud many markets, but its effect has, so far, kept the recovery cool and orderly, it said.

DUBAI REAL TIMES

According to him, attractive deals can be found throughout the city’s prime and peripheral areas as rental rates and capital values are hovering at pre-2007 levels. This is an opportune time for tenants as average annual Grade A rentals have fallen to around Dh220 per sq ft, he pointed out.

Referring to the retail market, the report observes that rental adjustments are comparatively less compared to the office or residential sectors but the market is still moving in favour of tenants in 2010. Average rentals have declined by around 29 per cent from the fourth quarter of 2008 to the fourth quarter of 2009 and by 13 per cent from the third quarter of 2009 to the fourth quarter of 2009 on the back of a 15-20 per cent decline in retail sales in 2009.

Several planned projects have experienced delays, which in turn has affected the future supply pipeline.

This lower level of future supply relative to planned completions in the office and residential sectors, is providing the retail market with something of a breathing space.

“This is an interesting time as the dynamics of the Dubai retail market continues to swing in favour of tenants due to falling rents and increased vacancies in some centres. In spite of the cutback in future supply levels, we expect to see an increase in shorter leases, break clauses and rent-free periods as we go through this tectonic shift in the market. There will be more and more incentives for tenants due to the shift in power from landlords to tenants”, Blair Hagkull pointed out He said JLL was also seeing the emergence of a two-tier retail market as occupancy rates in super regional and regional malls remain above 90 per cent as opposed to older shopping centres.

JLL said in its reference to Dubai in the Global Market Perspective Report that the opening of Burj Khalifa, the tallest built structure in the world, marks the end of a transformational’ decade in Dubai real estate.

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MARKET TRENDS & ANALYSIS

Property sector ends 2009 with signs of market equilibrium Investors should take a cautious stance, despite recovery expectations and rising risk inclination

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he UAE’s property sector has been able to survive a very challenging year which ended with the debt problems of major developers attracting an international spotlight.

Although positive industry developments in the last two months of 2009 and prospects of some form of economic recovery in 2010 point to a better year ahead, the country’s real estate stakeholders are advised to exercise extra caution as they plan for the next 12 months.

Dubai rentals stabilised in November and December of 2009 at +2 and +1 per cent, respectively, as the take-up ratio continued its downslide. Since rentals excellently reflect demand-supply dynamics, the November rally following nine successive months of decline indicates that the market is reaching equilibrium. Although available for-sale stock slumped 71 per cent year-on-year from 18,000 units

Dubai Advertised Price Survey

DUBAI REAL TIMES

Reantals rise 2% in Nov 09 and 1% in Dec. 09 after nine months of successive declines

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Mortgage values declined to 21 per cent of transactions in November 2009 after recovering by 32 per cent in September. Volumes also slipped by 13 per cent during the month from 25 per cent in September. The normal industry slowdown in Ramadan transactions

in Downtown Burj Khalifa and Dubai Marina. Nonetheless, a three per cent month-on-month rise was posted by the emirate in December.

very timely as they provided a positive transition to 2010. These are precursors to renewed interest in the domestic property sector, which we will most likely see towards the second half of this year as industry restructuring efforts gain momentum. Although any form of sector optimism is guarded at best, there are investments such as Emaar Properties which continue to enjoy buy recommendations from the securities community,” says Majed Azzam, MENA Real Estate Analyst, HC Securities and Investment.

impacted October 2009 figures, although liquidity improved in December as mortgage values climbed 26 per cent and volumes rose 22 per cent. These can be partially attributed to the market optimism fueled by the $10 billion debt assistance, provided by Abu Dhabi to Dubai in December.

Moreover, a five per cent drop was observed in Dubai agreed prices in October and November 2009, attributed to mortgage lending decline and property offloads prior to final payments. The last trend was especially prominent

might again put pressure on rentals this year. Nevertheless, robust economic growth and expectations of the start of global economic recovery are projected to drive demand in the UAE in 2010. It is also worth noting that the Abu Dhabi property market outperformed that of Dubai in 2009, despite around 90 per cent of its transactions being off-plan. This reflects stronger market fundamentals in Abu Dhabi, given its high property shortage and rental yields of as much as 14 per cent. As with Dubai, the beginning of deliveries will put

Looking ahead Although market trends point to rent stability, incoming supply

short-term pressure on prices, as buyers strategise to avoid the final installment.

Looking forward, initial signs of global recovery and declining risk aversion portend better property performance this year, although investors should constantly monitor domestic demand as restructuring continues. One of the preferred plays as of January 2010 is Emaar, which enjoys a ‘buy’ recommendation and TP of Dh6.5 per share with a potential upside of 65 per cent.

The developer has substantial oversees exposure, has a solid net debt-to-equity ratio, can easily meet short-term financial obligations, and manages hospitality and retail portfolios which link to the tourism sector.

However, Emaar faces several challenges which other players would do well to take note of, such as potential oversupply, the possibility of currency revaluation, a regulatory environment where minority interests can be overlooked, and the operational strain caused by large-scale and geographically dispersed developments.

“It will be interesting to see how the Dubai and Abu Dhabi markets play off of each other in 2010, and how recovery and an improving risk appetite could lead to a rally from the cyclical sectors. For the moment, we can say that the property industry’s restructuring efforts are paying off and that there is a big possibility that real estate will either sustain or overtake its 2009 performance. But again, we strongly advise investors to be highly cautious and closely monitor regional and global economic developments as well as local market movements,” concludes Azzam.

DUBAI REAL TIMES

in December 2008 to 5,000 units in December 2009, transaction volumes remained strong last year, with average unit sales per month at 1,821 as compared to 1,300 in 2008.

“The initial signs of rental stabilisation in December were

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MARKET TRENDS & ANALYSIS

Real estate global opportunity index demonstrates ME growth in ranking Rankings on the world stage

By Olivier Laroche, Senior Manager of A.T. Kearney Middle East

DUBAI REAL TIMES

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he Real Estate Global Opportunity Index is designed to help property developers decide where to expand outside of familiar markets. Focused on emerging markets, the index weighs real estate development potential, based on construction spending and growth, risk avoidance as well as a combination of a country’s risk and the ease of doing business there.

When A.T. Kearney issued its last Real Estate Global Opportunity Index in 2008, the real estate crisis was in its early stages. Since then, prices have plummeted worldwide, creating a downward spiral that has devastated economies. In the Middle East, promising projects have been cancelled or downscaled, and developers are coping with previously unseen financial difficulties. Today, however, the market is gearing up for a comeback.

The countries of the Middle East and North Africa (MENA) continue to improve in the index, even as they are hit by the economic crisis. Saudi Arabia moves from 6th to 4th place overall, the United Arab Emirates jumps significantly, from 31st to 18th, and Egypt goes from 39th to 22nd.

Since the beginning of the economic crisis, more than a year ago, most real estate markets—emerging and mature—have seen plummeting prices, as much as 40 to 50 per cent in some Middle East countries.

According to a report by Real Capital Analytics, volume on global real estate transactions plunged 67 per cent year-over-year in the second quarter of 2009. Recently, conditions in most emerging markets seem to be improving, thanks to government

developers with some cash, the first step at this point is to reconsider whether to invest in geographic expansion or the transition towards a business of specialisation with the opportunity to improve operational excellence and develop ancillary revenue opportunities through asset management.

Apart from looking to geographically expand to markets where there is currently undersupply, developers in emerging markets may stimulus, infrastructure investment and a resumption of lending.

For the markets of the Gulf Cooperation Council (GCC), and specifically the UAE, which had great price declines in 2008-2009, the Asian recovery following its 1997 crisis offers reason for hope.

Low real estate prices could put the UAE back on track for attracting foreign investors, who are already interested in the region for its other advantages. Gulf oil reserves, amounting to more than $5 trillion, give the area ample financial strength, and the region’s lifestyle, particularly in the UAE, is attractive to foreign companies. As development projects are temporarily or permanently halted, the oversupply will begin to diminish. For

increasingly consider diversification towards asset management activities to attract additional capital through funds and REITs, and towards best practices in property management.

For developers who want to emerge stronger from the current crisis, it is key to take these strategic decisions early on in order to maximise revenue, increase profitability and take advantage of current attractive asset prices.

The 2010 A.T. Kearney Real estate Opportunity Index

BURJ KHALIFA

Building vibrant vertical communities

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he launch of the Burj Khalifa on January 4, 2010 was a proud day not only for those like me who are closely associated with the tower but for every resident in Dubai.

Despite all the predictions of gloom and doom of the foreign media due to recent events in the region, Dubai once again showed the world that its architecture and community development initiatives are second to none.

This is not only the tallest tower in the world, it will also be home to over 1,000 families and 100 offices living in vertical communities perched on top of each other in an iconic edifice that also contains the first Armani Hotel in the world. The multiple, mixed-use Owners Associations that will be established will make them the highest democratically managed communities in the world.

All these Owners Associations will be established in compliance with Law 27 of 2007 concerning JointlyOwned property in Dubai. According to the law a jointly-owned property is defined as ‘the whole or part of a building divided into Units intended for separate ownership, where part of such building or land has been, designated as Common Areas’.

These jointly-owned properties will form Owners Association where every owner will be a member of the Association represented by an elected Board of Directors.

While in a regular residential or commercial tower, formation of Owners Associations is not too difficult a task, the mixed-use nature of Burj Khalifa poses several challenges. The different uses namely, residential, commercial, hospitality, tourism and retail aspects of the project made it

critical to implement proper management strategies in line with international best practices but also in compliance with local laws and regulations.

When the team studied the tower to put forth a strategy on how best to manage the tower, several models were debated each with its own pros and cons.

The overriding thought was to provide some degree of independence to each function of the tower, while ensuring that the various functions worked towards the ultimate well-being of the tower as a brand.

While most people will always see this as one iconic tower, it is in fact several towers on top of each other. The strategy finally proposed was that each of these ‘towers’ is defined as a building component and as such be subject to volumetric subdivisions of, The Armani Hotel, Armani Residences, Corporate Suites, Residences, Office Annex and Burj Khalifa LLC among others.

Each component will have a specific use and function, while the last one is a mixture of several uses including the communication spire and several bits and pieces that will remain in the ownership of Burj Khalifa LLC. The various components of the tower whether jointly-owned or privately owned will have their schemes registered with RERA. The registration will involve the submission of volumetric and strata plans along with various governing documents such as Jointly-Owned Property Declarations, Association Constitutions, Community Rules etc.

After receiving the relevant approvals from RERA, the Owners Associations will formally be established when the owners of the various jointlyowned property components obtain their Title Deed from the Dubai Land Department.

The relationship between the components, including their rights and responsibilities will be governed by a contractual document called a ‘Building Management Statement’ which will be registered at the Dubai Land Department. This form of building management will ensure transparency of operations both in terms of cost and service levels.

Emaar Community Management will be the first community and association manager for the tower, while the Burj Khalifa Operations Team will manage the various facilities and services.

With the formation of Owners Associations, each component will have a say in the management of

their own affairs, while they will elect representatives to sit on a top-level management body called the ‘Building Management Group’.

The democratic nature of the community means that every individual owner in an Owners Association has the opportunity to become involved and participate in the on-going affairs of the community, contribute ideas and resources to the well being of the tower as a whole. As such, volunteers or elected owners, who assume positions of responsibility as officers and directors of the various Owners Associations, will be the key to its success or the catalyst for its failure.

We’re confident that with the involvement of owners in the matters of the tower, Burj Khalifa will be a vibrant vertical community of involved and informed owners with lofty ambitions.

Jeevan J D’Mello GDArch, AIIA. CMCA® is a Senior Director with Emaar Properties and is a certified manager of community associations. He was the first professional in the region to receive this prestigious certification from the US-based Community Association Institute. Jeevan currently manages over 32,000 residential units across four of Dubai’s master communities and has been noted as a pioneer in the field of community management in Dubai.

DUBAI REAL TIMES

By Jeevan J D’Mello GDArch, AIIA, CMCA

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FINANCIAL ROUNDUP

Alternative financing methods for regional infrastructure Arab economies ready themselves to build for the future, but conventional funding is still limited as a result of the global financial crisis

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op-level delegates representing major economies from across the region gathered at Dubai International Financial Centre (DIFC) recently to discuss and identify the best possible means to access channels of funding for the ongoing and proposed infrastructure development projects in the region.

Dr. Nasser Al Saidi, Chief Economist at the DIFC Authority,

DUBAI REAL TIMES

Dr. Nasser Al Saidi

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pointed out that the regional economies - and particularly the Gulf countries - are relatively young and unhampered by historic and obsolete technologies that some of the more mature economies face.

This allows GCC countries to leap ahead and adopt the most modern technologies, without going through intermediate phases “Infrastructure investment has been a major driver of economic growth in the Gulf region over the past six years. Despite the global financial crisis, there continues to be enormous demand for new

infrastructure across the GCC countries, driven by population growth, economic development and diversification imperatives, as well as the overall aim of being counted among the most advanced nations.

Indeed counter-cyclical fiscal policy has focused on maintaining or even increasing government expenditure on public works and infrastructure,” said Dr Al Saidi.

“Effective financial solutions, the availability of long-term finance and continuous and timely funding are critical to the smooth implementation of new infrastructure projects,” he pointed out.

Some of the alternative means of funding identified by the workshop included Project Financing, PublicPrivate Partnerships (PPP), BuildOperate-Transfer (BOT) models, Capital market based financing, Housing Finance as well as raising Public Debt and recourse to Islamic instruments such as Sukuk (Islamic bonds).

Frank Beckers, Managing Director and Head of Project & Capital Advisory at Deutsche Bank

commented “Given the challenging amounts of financing to be raised for infrastructure developments, we will have to explore all available liquidity pools. This will likely require a more diversified approach towards funding sources compared to the bank loan focused approach we have seen so far. However, the strategic nature of most infrastructure developments in the GCC, evidenced also by strong government support, will continue to support those efforts.”

Adil Marghub Manager, Infrastructure Cluster at the

Adil Marghub

International Finance Corporation (IFC) added “Beginning in the fall of 2008, the tightening of global credit conditions adversely affected global infrastructure finance. Lending from commercial sources declined substantially, while state-owned and multilateral and bilateral (IFIs) have emerged as growing players in funding infrastructure finance.

The MENA region has been one of the more active regions globally Frank Beckers

in infrastructure projects, and the underlying fundamentals for an increasing role for the private sector in infrastructure remain strong.”

Guide on sukuk issue from DIFC Prepared by Clifford Chance, Amanie Consulting, the DFSA and the DIFC Authority, the guide provides a summary of sukuk structures and information on issuing sukuk in DIFC The Dubai International Financial Centre Authority has released the DIFC Sukuk Guide – a comprehensive introduction to various sukuk structures, as well as legal and regulatory information on issuing sukuk from the DIFC and listing sukuk on Nasdaq Dubai.

The guide reflects the leading role that DIFC plays in global Islamic finance. Not only is it home to the largest exchange for sukuk by listed value, worth more than $16 billion, it provides an operating, listing and incorporating environment that is world class, and ideally suited to structured Islamic, and non-Islamic, products.

It provides detailed descriptions of more than 10 sukuk structures, information on the history and current status of sukuk globally, an overview regarding the issuing and listing of sukuk in or from DIFC, and regulatory licensing in the district.

Some features of DIFC’s supportive infrastructure include the

basic infrastructure for the Olympic Swimming Pool project and a number of construction projects for public parks. He noted that the total cost of these projects has amounted to approximately Dh5 billion.

Dh4.393 billion budget for Dubai Municipality Tamweel reduces base rate Eng. Hussain Nasser Lootah, Director General of Dubai Municipality revealed that the Municipality has approved Dh4.393 billion budget for the current year. “As per the

Hussain Lootah

approved financial studies on the various services provided by Dubai Municipality, the civic body’s income is expected to reach Dh4.865 billion this year, that means a surplus of up to Dh472 million,” he said.

Lootah said that Dh2.5 billion has been allocated for the completion of construction projects this year, which reiterates the Dubai Government’s support for the completion of infrastructure projects that propel the economy of the emirate.

He added that Dubai Municipality is pursuing strict fiscal policies in its work, especially through the rationalisation of expenditures, which contribute to the general budget support to the Government of Dubai.

On the other hand, Lootah said Dubai Municipality last year completed the initial stages of a group of large projects such as Wastewater Treatment Plant in Jebel Ali, Sheikh Hamdan bin Rashid Al Maktoum Awards Complex, Al Warsan Nursery project and the

Tamweel PJSC recently announced a reduction in its Base Rate by 50 basis points to 7.9 per cent for all flexible rate products effective March 1,

Varun Sood

2010.

“This reduction is in line with our constant endeavour to maintain profit rates at a reasonable level. We have decided to review our Base Rate and reduce it by 50 Basis Points to 7.9 per cent as per our pricing terms

for flexible rate products effective March 1st, 2010. All our customers who have opted for flexible rate finance will benefit from a profit rate reduction,” said Varun Sood, CEO Tamweel Home Finance Division.

Buyers find villas in Victory Heights offer excellent value Residents enjoy active lifestyle and green spaces at Dubai Sports City location Buying a brand new luxury villa in Victory Heights, which is located within the world’s first sporting city, offers excellent value for money compared with homes situated in similar Dubai residential communities, it has been revealed. On an average, a villa in the golfing community that surrounds the award-winning The Els Club 18hole golf course in Dubai Sports City costs Dh1,100 per square foot, which is around Dh200 cheaper per square foot than other similar villa developments in the emirate.

To date, over 770 villas have been sold in the 961-unit development, which is on track to handover 50 per cent of completed properties to home-owners in early 2010, despite the economic slowdown of 2009.

“People can buy a brand new villa in Victory Heights at a significantly better price than they would for an older, similar home in one of the more established residential communities in Dubai,” confirmed Lindsey Russell, Managing Director of real estate firm Gulf Platinum Properties.

“These villas offer excellent value for money at a time when people are looking for good quality homes at discounted rates.

The potential to get a great bargain here has led to an increase in interest from buyers, and as a result, we are predicting that prices could move higher within the coming months.”

Tamweel PJSC recently announced a reduction in its Base Rate by 50 basis points to 7.9 per cent for all flexible rate products effective 01 March, 2010

Victory Heights Villas

DUBAI REAL TIMES

ability to establish special purpose companies (SPCs) in the district, enabling market participants to act as both the issuer and trustee in sukuk transactions within DIFC.

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COMMENTS

A new address A watch for a clock, a folding dining table, a bunker bed and cartons for book shelves, I was waiting to move into the next best house. Finally, the genie of huddled spaces was going to be released. Or so, I thought…

By Manju Ramanan

DUBAI REAL TIMES

“N

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ow that the property prices are down, lets go house hunting,” said the husband, and I sprung to my feet, nearly knocking down the dainty watch (also our home’s clock, thanks to small spaces) from the parapet to the bowl of dal sitting on the (foldable)dining table. Used to a space of my own, even if it meant a small writing table where I could doodle at leisure or scribble endlessly into my ‘ideas book’ (now sadly transformed into a banter of colourful graffiti, courtesy my boisterous six-year-old!) Dubai, like a reality check, brought me to the world of actual living space and the associated quell in sanity.

Assuming here that a new house meant more space, off went my train of thoughts that was carrying my existing luggage out of where I lived (in a one-bedroom apartment with walls so thin that I could even hear which neighbour flushed

the loo) to a rosy world of books, music, space for friends and endless conversations over ‘flavoured tea’.

Finally, the genie of huddled spaces was going to be released! Or so, I thought.

The next hour saw me grabbing my perplexed son’s sketch pen (they are usually thinner than markers!) and poring over the newspapers marking the best deals. This was one opportunity I wasn’t going to let go.

“Let’s try this area,” I said to my husband excitedly, who, by then, was

immersed in some ‘very important work’ he had brought home that weekend.

“Too far away from his school,” he murmured.

“This one,” I pointed.

“Doesn’t have good access roads! Has too many empty neighbourhood homes.”

“C’mon, we can do better than that!”

“No, not at all” “So, will it be the Burj Khalifa this time,” I fumed?

Another staccato excuse was coming my way - then he realised I was serious.

“Well, dear, there are lot of homes around, and we’ll surely find one that is a little bigger than this one,” he said in his sweetest tone (reserved for times like these).

“And we are going to find it this weekend,” I said, startling my son from his mirror-talk time. The time is extremely precious to him because his tiny legs don’t allow him to look at himself in the washroom mirror and

right! The watchman smiled when he told us she had taken the flat already and was moving in the next day.

“Why didn’t you get up early,” I told my husband. “If you did, we could be the ones walking past her and I even have a green dress.”

“There are other flats too madam,” cut in the watchman. “But none of them have balconies. The ones with the balconies go first,” he said as we quietly walked away.

The next weekend saw us drive to another part of town to look at another set of houses.

We saw one with strange sized rooms. “This is a hexagon,” said my son, who has just graduated from squares, ovals and circles. Some others seemed to ‘cut corners’ adding a row of half tiles to a room, changing its shape drastically. “Why can’t some people have ordinary rectangle and square shaped rooms,” said the husband as we walked out, his exasperation hidden in his soft tone.

And then, we saw a beautiful

apartment that seemed to be almost made for us.

Almost, did I say? You had to manoeuvre the access roads that was actually a kilometre of dirt track. But when you got in to the cluster of houses there, you would be transformed into a beautiful world. The glitch - the roads leading to the exit too were yet to be built and street lights were yet to be prominent. “Not for us,” we decided sadly.

Our future new home was evading us.

A phone call changed all our plans.

Our current landlord had decided to decrease the rent and the number of instalment cheques if we decided to stay on. “My husband looked at me and I could tell from his eyes that he’d prefer we stay right there.

“Convince him to go a few notches down and we’ll stay here,” I said.

So, that was it. We stayed on!

The bunk bed is useful. Its upper storey becomes my reading room when I want some privacy to read till late. And we now have a new clothes rack that doesn’t sprawl over the whole balcony, so there is place to sit as well. The open kitchen doesn’t alienate me from my family when I am cooking and my son stands on the sofa choosing his ingredients, when he’s bored of playing. Also guests coming home are forced to help you out because they actually see you slogging in the kitchen!

Yes, we can tell which neighbour on the upper floor has used the flush because the walls are thin. Or who is cooking what dish, and where.

But we are alert when the babies next door cry, or smile when people walking past the door hum a popular Hindi film song. Or when the lady at the far end arrives home with her stilletoes clicking along the corridor.

There is an atmosphere to huddled living. The familiar sights, sounds and flavours smell like home.

So, home it must be!

DUBAI REAL TIMES

the house doesn’t have space for a full length one. So, when it is dusk, the glass door of the balcony reflects light and acts like a full-length mirror where he gets to watch himself and his antics.

So, off we went the next afternoon, to look at a lovely building nearby whose roof had wind towers.

The reception had an open-to-sky feel about it and it looked like a well maintained hotel apartment.

“Only families sir. Bachelors not allowed,” said the Malayali watchman who handed over the keys to two apartments – one with a balcony, the other with an open kitchen.

The place was exquisite, the whitewash was perfect (soon this will be filled with cycle tyre marks and some finger prints, I sighed) musing about the place that was soon to be my new address.

“One extra room makes such a lot of difference,” I said to myself as I glided from one room to another, mentally rearranging the furniture and ‘things I would buy’. “See, it has two balconies in the bedroom. This is where I’ll sit and read, the other will be for our weekend tea sessions,” I said.

We went back to the reception, took down the agent’s number, who asked us to come the following day.

The rest of the day saw me mentally rearrange the furniture of the new home and a lot of talking-to- myself times, inviting curious glances from my mother.

“We will discard this giant sofa and get a nice couch instead. Let us buy a lamp and create a corner for reading,” I started off.

For once, I saw my husband partake in my fancy. “The rent is good too. It is the same that we are paying now, and there is one room more,” he said. And we were sure, that the building with the wind towers would be our new address.

It was 12 o, clock sharp when we reached the building’s reception and saw a lady in a bright green dress with two children walk past us. You guessed it

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COMMENTS

Foreclosures – a sign of the times

By Chris Commett, Chief Executive Officer, John Charcol ME

DUBAI REAL TIMES

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he recent announcement by Barclays that they have obtained the first foreclosure judgement from the Lands Department has stimulated much debate on the impact that this development will have on the Dubai property market and the confidence of owners, potential buyers and lenders.

Some have predicted a flood of foreclosures leading to the dumping of distressed property, resulting in a further decline in the values. Others predict that the banks will now be more willing to lend as they can see a clear way to recover the value of their security in the event of default.

I believe that this event signals another step along the Dubai property market’s path to maturity. It has taken some time to come about, but it demonstrates that RERA has established the mechanism required by the Mortgage Law of 2007 to handle mortgages that are in default, and over time, will allow the lenders to resolve those cases where they have no choice but to rely on their security as the borrower has either absconded or simply cannot afford his mortgage repayments.

I do not think this will give banks carte blanche to foreclose at the first sign of trouble. The law requires

Barclays win foreclosure order Barclays, Britain's second largest bank, won the first foreclosure orders in Dubai, clearing the way for lenders holding Dubai home loans to take action when borrowers don’t pay, reported newswire Bloomberg on January 11. Both lenders and developers in the UAE have tried to stem rising defaults through out-of-court settlements with distressed customers after falling prices left buyers with mortgages worth more than their properties.

Islamic lender Tamweel has several of its own foreclosure claims pending and estimates about three per cent of its mortgages are in default.

The Barclays and Tamweel cases show that a 2008 mortgage law - setting out rules for default, foreclosure and repossession - is working. The law requires lenders to give homeowners a 30-day notice of their intent to pursue a foreclosure. Courts then review the case and can issue a debt judgment that turns the property over to Dubai’s Land Department for auction. The process may take two to four months.

them to give the borrower time to bring payments up to date, and banks will exhaust all other solutions rather than risking a loss when the property is auctioned off. They know that in the current market, they are unlikely to recover the full loan amount, so they will use foreclosure as a last resort. At least now though, they can see a route to resolve hardcore cases.

The next challenge for RERA and for the lenders is to establish a workable means for auc-

tioning off foreclosed properties.

Previous attempts to establish property auctions in Dubai have failed, largely due to the mismatch between the expectations of sellers and potential buyers. Realistic reserve prices will need to be set to protect the interests of both the lenders and the borrowers, but most potential buyers will be looking for fire sale bargains at crazy prices. If this happens, the properties will remain unsold, and the banks will be left with the difficult decision of whether to hold on to

the property or to reduce the price and increase their loss.

It is inevitable that foreclosures will become a feature of the next couple of years, as they have done in more mature western markets, and this is not in itself a bad thing. It reflects a market that has grown too fast, fuelled by speculation and relatively easy lending criteria, but without a means to realise their security, banks will avoid mortgage lending, and future recovery and growth will not happen.

COMMENTS

Opportunities for savvy investors

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Raza Jafar: “Real estate firms must consolidate and focus on quality rather than quantity”

plete paradigm shift in the regional property market, and as the focus of the developers is changing, so the focus of investors also needs to change. Now is the perfect time for the savvy investor, whether individual or corporate, to take advantage of the investment opportunities that will follow in the wake of companies’ reassessing their long-term plans.”

“There is definitely a change in mindset taking place, and what both companies and investors need to be focusing on now is consolidation of projects and resources, and quality over quantity. Even without the global crisis, the region’s real estate boom was never going to last indefinitely and this is why it is important to have long-term strategies in place and be prepared for whatever changes the future might

bring. If sufficient thought goes into strategic planning, then even when something as unexpected as the global financial crisis occurs, it becomes a matter of adjusting the plan – whether in terms of timelines, projects or objectives – to reflect the challenges faced, rather than having to create an entirely new plan from scratch when crisis hits,” Jafar continues.

“In light of this, I believe that we can expect to see a number of investment opportunities become available in the course of 2010, partly as a result of companies and investors looking to divest themselves of projects or resources that no longer fit with their revised strategies, and also partly due to the significant impact the challenges arising from the crisis is likely to have had on the number

of speculators in the regional market. The decline in the number of speculators leaves the way open for serious investors to maximise on the opportunities presented by the rapidly changing market,” he adds.

“In the long run, this focus on the consolidation of projects and resources, and on quality rather than quantity, is a good thing for the market, and the end result will be a stronger, more mature regional property market that is better able to withstand challenges in all areas. The challenge now is to come up with the best ways to weather the aftermath of the crisis, although we are seeing signs that the worst may perhaps already be past, and to build in the future to encourage continued growth and prosperity.”

DUBAI REAL TIMES

n the aftermath of the global economic crisis it is important for companies, particularly the region’s real estate companies, to reassess their focus and objectives in order to ensure future growth and prosperity.

So says Raza Jafar, Managing Director of ENSHAA PSC, a development and investment company with interests in the Middle East, North Africa, Asia and Australia.

Jafar’s comments are in line with the findings of the Organisation for Economic Co-operation and Development (OECD) and the World Bank, recently published in the book Innovation and growth: Chasing a moving frontier, that innovation in all areas is critical for the long-term economic growth of both developed countries and emerging economies, even more so in the aftermath of the financial and economic crisis.

Speaking of the particular challenges facing the region’s real estate firms and the way forward, Jafar says, “The global financial crisis and subsequent economic downturn have ushered in a new era for the regional – and global – property market. Whereas a few years ago, everyone was racing to develop and build as much as they could as fast as they could, this is no longer a viable strategy, and companies are being forced to reevaluate their objectives and strategies, and to focus on producing a smaller number of high quality projects. There has been a com-

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COMMENTS

Translating mergers and acquisitions into success stories

By Bassam Samman

DUBAI REAL TIMES

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urrent economic conditions are difficult.

Financial institutions are less willing to fund businesses, cash flow constraints are pushing many to limit spending and, sometimes, default on due payments, plus business owners as well as customers are worried that the worst is yet to come. It is precisely this environment, running from the period of 1992 to 1996, which has helped in creating the best opportunity for companies to achieve significant growth through mergers and acquisitions.

Nowadays, the media in the Middle East is reporting about many financial transactions among real estate developers, banks and other institutions merging in an effort to form larger companies and conglomerates. A recent Mergermarket data report shows that merger and acquisition (M&A) deals in the Middle East for the first three quarters of 2009 have reached $15.66 billion (Dh57.5 billion), a number that is just a few figures shy from the $15.8 billion worth of such deals posted for the whole of 2008.

An example of this is the recently completed merger between Dubai Properties, Tatweer and Sama Dubai; and the merging of other developers show a beginning trend of more to come.

Companies go for M&As on the premise that the joint company will be able to generate more value than being separate individual firms. Some of the potential benefits include achieving economies of scale, combining complementary resources, garnering tax advantages when applicable and eliminating inefficiencies. Other reasons for considering growth through acquisitions include obtaining proprietary rights to products or

services, increasing market power by purchasing competitors, shoring up weaknesses in key business areas, penetrating new geographic regions and providing managers with new opportunities for career growth and advancement.

The telecommunications, media and technology (TMT) sector has been identified as the most preferred segment for M&A activity in the region. The Mergermarket report reveals that the TMT sector accounts for three quarters (75.6 per cent) of deals by value and more than a fifth (21.8 per cent) by volume over the last nine months.

M&As are usually viewed with a high-risk-of-failure factor due to many reasons. According to a recent Weekly Corporate Growth Report, 70 per cent of today’s mergers have failed in achieving anticipated values. These failures could be attributed to a number of reasons like improper preparation; failure to have a clear exchange of communications; vague strategic objectives on why the deal was done; the inefficient execution of the merger; and the failure to manage human and organisational integration.

Financial losses that could result from a failed merger and acquisition could be massive. For an acquirer expecting to reap $500 million in yearly cost savings, a one-month delay reduces the net present value of the deal by more than $150 million (assuming a 10 per cent cost of capital), or approximately $3.5 million per day. In addition to the financial losses resulting from delayed completions and improper M&As, indirect financial repercussions such as postponed business strategy implementation, diminished employee morale and workforce or customer defections are also likely to happen.

To avoid such losses, project management appears as a viable solution in ensuring the smooth integration between two merging companies. Project management defines the processes required to map the M&A project life cycle into a Work Breakdown Structure (WBS), which further enables the M&A Integration Project Team (M&AIPT) to identify the complete project scope, group those into work packages and assign accountable parties for these work packages. The WBS allows the creation of detailed work plans by identifying activities, milestones, durations, resources required and the sequence for executing the activities. The cost of the different resources needed to execute the project and other expenses are then loaded onto these activities to establish the budget and expenditure plan. This will give the team the advantage of identifying what steps to take to ensure that project deliverables are correct and complete from the first time.

One of the key duties of the project management team is to define the project communication

plan and ensure that the reporting requirements of all stakeholders are properly understood and incorporated into the plan.

Stakeholders in an M&A project are usually composed of executives, functional managers, regulatory bodies, business partners and others.

Risks assessment and management is a key element of an M&A project plan. Much of the content is mainly based on assumptions and only time can help in correcting these assumptions.

Experience and knowledge do make a difference; nevertheless, no one can eliminate the uncertainties associated with the project plan.

By developing a detailed project plan and committing to provide the needed resources and funds to execute it, the merger and acquisition will have a better chance in being successfully delivered. The plan identifies the thousands of decisions and actions that need to be taken. The overseeing project team will be tasked to prepare appropriate documentation to close out integration projects and facilitate effective hand-offs upon the project’s completion.

With the arrival of 2010, analysts predict that emerging economies will be witnessing more M&A activity, mainly due to the increased potential of higher return on investments as compared to their counterparts in more established markets. The expected increase will see firms from emerging markets investing in other emerging markets, adding more vigor to the region’s Merger and Acquisition segment.

Bassam Samman is the CEO and Founder of Collaboration, Management and Control Solutions (CMCS)

COMMENTS

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iddle Eastern realtors are abuzz about the ‘New Reality’ that industry faces in 2010 and beyond. Last year was a sort of experimental stage where property players explored what could and could not work in a recessionafflicted world. While results varied, the consensus was that the customer will reign supreme in the next 12 months as the property sector slowly undergoes market correction.

This year is critical, as it will see industry competing more fiercely to gain a better share of the markets as the world moves towards recovery. There have been many lessons learned by governments, industries and individuals which will lead to more directed economic and commercial activities. In the UAE, one of the region’s more vibrant realty markets, tenants are already showing increased movement due to the wider choices of properties and packages available. This carries the momentum of the past few months of 2009 which saw sales and market changes occurring every month, in stark contrast to the slow-paced movements of 2008.

“The era of easy sales and unlimited demand is behind us now.

Property buyers and lessees have become extra-cautious and look for transparency and top value in potential transactions. We are witnessing a rapid shift from a seller to a buyer market, which means that industry has to quickly adjust and innovate or otherwise collapse. It is important to note that prior to the global crisis, many property purchasers complained of unsatis-

Laura Martorano

factory service levels. This is simply unacceptable these days; professionalism and customer service will dictate a realty player’s ability to survive and thrive amidst such challenging business conditions,” said Laura Martorano, CEO and Founder, Leo Sterling.

An industry survey reveals that 61 per cent of consumers who purchased property in Dubai over the past two years had issues with the level of service provided by real estate professionals. They referred to knowledge, consultative ability and empathy in particular as areas of serious concern. Given that the emirate is expected to experience significant real estate oversupply in the next two years, it would not only be wise, but extremely essential that brokers, lessors and developers give prime consideration to the sensitivities, needs and opinions of their customers. This reality applies to the region’s entire property

industry, which needs to step up its customer service skills in keeping with rapidly evolving markets.

What, then, should realty professionals be doing? The first thing to do is improve the way they present or market their products. During the boom days, it was okay to pitch property even if it was not in top condition. Other factors such as location and recognition could see sales through. Nowadays, it is important to polish the whole package as a client can easily step out of the door and look for numerous other options. The initial presentation in particular makes a big impact on a potential deal. The next goal is to gain a better understanding of clients through multiple resources, from the internet and reference sheets to word-of-mouth and industry reports. This provides a clearer picture of what exactly the customer needs, how they should be approached, and how committed they are to transacting.

One consequence of the downturn is that clients have become more knowledgeable on real estate laws and procedures, so practitioners should also study legal frameworks governing their field more closely to keep up with their customers. Moreover, property professionals should support the creation of laws that better protect the consumer. There are numerous national and regional industry gather-

ings such as Cityscape which provide excellent forums for discussing policies and regulations affecting the business.

It would also be helpful to gain expertise in specific transactions by property type or method of sale.

Aside from establishing solid credibility, this enhances the ability of the practitioner to properly match clients and products.

Transparency has become one of the key attributes that pull in potential buyers, and yet many in industry still do not put too much emphasis on it. As an example, many project developers do not provide even estimates of service charges per square foot prior to completion, which makes it difficult for investors to calculate probable yields. The subprime mortgage crash has already eroded a lot of confidence and trust in industry on a global scale, so not being upfront in deals just magnifies the aversion to real estate investments.

Australian entrepreneur John Ilhan once said, that “This may seem simple, but you need to give customers what they want, not what you think they want. And, if you do this, people will keep coming back.”

As the true impact of the recession on the real estate markets continues to unravel in 2010, brokers, sellers, developers and consultants - all need to realise that many of the things they presumed they knew about their clients are either untrue or have changed. They need to adopt new attitudes towards the business, prioritise quality and value for money, and accept that the consumer is now the king of industry.

DUBAI REAL TIMES

Customer supremacy defining property evolution

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COMMENTS

Ban the spam

By Aditya A Awtani, Fine and Country, UAE

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n the new millennium, more and more companies are investing in information technology. Firms are incorporating both software and systems which allows them to monitor cash flow, inventory, client databases and a host of other key data. Within the region, the top estate agencies have even developed state-of-the art systems to capture potential client’s imagination. However, how are we to ensure that the fast-pace of technology does not affect our client relations, and, more important, privacy?

Last week, a friend of mine, Ahmed, an executive for a topautomotive marquee in the region, was grumbling about the amount of spam mails he gets on a regular basis. He carried on saying that 90 per cent of the spam he gets is from my peer group - real estate agencies, and non-registered independent agents.

For the record, Ahmed owns one property in Dubai, located within the Lakes community. He has been residing in his property for over two years, and has absolutely no intention of selling his house. He shared with me some of the spam mail.

“300-bed labour camp for sale in DIP. Best offer in market.” ,”Studio in International City. Cheapest offer in town”, “Wanted urgently warehouse in Al Quoz. Client ready to close immediately.” Of course I could go on and on with the above list. However, to reiterate, none of the mails were of any interest to him.

Another case pertained to spam, which one of my sales colleagues had to undergo: She was working with a potential client for almost two months, and was about

to secure the transaction when the prospect informed her that she is no longer comfortable in paying this price, as she received a (spam) mail for a similar unit being offered at a lower price. She stated that she would not mind waiting longer for the price of this particular unit to be lowered! The same afternoon, the prospect forwarded our office that mail with that particular lower offer. Naturally, we tried to investigate further, and attempted to establish contact with the ‘listing agent’. Not surprisingly, the sender was one of the thousands of freelancers that continue to hurt the marketplace, using a hotmail ID. When asked about the property, the reply we get: “That has been sold, but I have another...... ” We lost out on a deal courtesy of a phantom listing!

Cold-calling online is called spam!

In several mature markets, spammers get their accounts cancelled

by ISPs every day.

Even RERA has recognised the need of further regulation on this marketing practice and constantly advises clients not to fall prey to ‘spam’ mails Credible businesses simply do not email potential contacts or customers they do not know about their commercial enterprise, services or products without permission first.

The mindset of the spammer follows the belief that the more people they add to their spam list, the higher the chances of scoring a transaction, whether a seller or buyer. However, excessive unsolicited commercial emails (UCE) can often work against the sender. Especially those agents that continue to use web-based email ID’s, leave the perception that they are most likely independent and quite possibly nonRERA approved.

Common courtesies go a long way when trying to foster relationships of any kind, and this rule applies online as well. If the recipient did not specifically ask you for the particular information, or has suggested in any way that they are interested in your product or services, then that person should not be on your company’s mailing list.

Those genuine offices and agents out there, which are RERA approved, face the brunt of loss of potential

business.

To assume that people ‘need’ the information you want to provide as though they have been given a choice, they don’t know better, and you need to send it anyway, is perceived as condescending. These actions can produce dramatic reactions from those tired of being sent information and attachments they didn’t request and wouldn’t request if given the opportunity. Instead, in order to gain commercially online, the brokerage firm should have a great looking website that gets found when looked for. That is just one of many ways to generate leads online. Emailing strangers is not one of them!

Instead of spamming and wasting one’s resources, time and credibility, which can be compared to winking in the dark, we should encourage our associates to invest any spare time in visiting their respective communities and marketing themselves. After all, one needs to sell themselves first and foremost.

I am not suggesting that the regular frequency newsletter to all your clients, or to your genuine database is a bad idea. Far from it. However, it is those agents out there that continue to use their web-based ID’s and bombard inboxes with their UCE that are tarnishing the image of the otherwise hard-working, real estate professional. When was the last time we had a lawyer or a doctor send out spam email, informing the tens of thousands out there of their services?! We, as players in the real estate market need to recognise ourselves as professionals, and value our time, and the time of others.

ENVIRONMENT

Green buildings can boost real estate sector Reducing energy, utility consumption and associated costs

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ohnson Controls (NYSE:JCI), the global leader in energy and operational efficiency for buildings, states that the UAE real estate industry can transform itself by adopting energy efficient green building principles to deal with the current market conditions.

The company’s flagship Metasys building management system that embodies its core competencies and high standards of technical innovation can provide customers in the UAE and across the region with a set of comprehensive tools to improve building efficiency, maximise cost savings, and reduce greenhouse gas emissions.

According to a report published by the US Green Buildings Council, a green building on an average saves 70 per cent electricity, 50 to 60 per cent of water and 36 per cent of energy in the US as compared to standard buildings. With the recent economic downturn, building own-

ers are more interested in making their facilities more energy efficient to save money and decrease operating costs. “We can help businesses reduce energy and utility consumption and the associated costs between 15 per cent and 50 per cent. With the help of Johnson Controls technology - developers and other organisations in the UAE, Saudi Arabia, Qatar and the GCC in general, can get a clear and accurate picture of their facilities that are running over or under budget, whether it is for a new or an existing building. End users can identify energy intensive applications and the amounts being spent on repairs and maintenance building by building on a real time ba-

DUBAI REAL TIMES

By Linda Benbow

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DUBAI REAL TIMES

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sis. They can also see where they have opportunities to reduce costs and be more profitable,” said Iain A. Campbell, Vice President & General Manager, Global Energy & WorkPlace Solutions, Johnson Controls Inc. “The company was established over 100 years ago, in 1885. Its founder developed a temperature regulator for buildings – i.e. a thermostat and set up a company to market the product. This is a key component in making buildings more energy efficient by making sure that buildings are cool – not overcool nor over hot (in some climates). Saves on heating bills,” he explained. “Today, we see significant opportunities for energy efficiencies in buildings, both new and established, in this region.”

“Although concerns are sometimes voiced about the initial cost of green projects, the financial benefits are remarkable in the long run. We’ve learnt the best practices for developing and managing green projects.

We are sharing these lessons with our partners and our customers globally, helping them benefit from the experience that we have gathered over years, added Campbell.

Founded in 1885, Johnson Controls is ranked 58th on the Fortune 500 list. The company has grown exponentially, achieving over $38 billion revenue in 2008. It has over 140,000 employees serving customers in over 170 countries. It is a technology-based company with a very strong balance sheet, which helps to drive innovation – innovative technologies - for its customers.

“The integration of the building systems and the information technology infrastructure into one intelligent network is an important part of our strategy for sustainability,” said Magdy Mekky, Vice President and Managing Director, Middle East, for Johnson Controls. “Johnson Controls has addressed most challenges of real-world integration and enterprise connectivity, allowing building owners and managers to control cost and energy consumption. Thus, from a green building and energy management perspective, Johnson Controls

technology enables a more efficient real estate portfolio management with the benefits of optimum cost savings, process improvements, and improved occupant comfort. Also, in most countries, there are financial incentives to retrofitting or building using ‘green’ principles that business owners should take advantage of. Or soon, legislation will force the issue.”

“Under our performance contract with the Empire State Building in US, we are delivering cutting edge technologies including Metasys building management system with Sustainability Manager, which will provide tenants with an online dashboard to help them track and manage their energy usage; high efficiency York Chillers, variable frequency drive air handling equipment, radiator insulation upgrade and an extensive onsite window refurbishment. The energy conservation solutions offered by Johnson Controls pay back for themselves in the short-to-medium term.

In the case of the Empire State Building, with an initial estimated project cost of $20 million, the building will save over $4.4 million per year in energy costs alone. Greenhouse gas emissions will be reduced by more than 105,000 metric tonnes over the next 15 years.” said Clay Nesler, VicePresident, Global Energy and Sustainability Johnson Controls, Inc. “As you strive to operate a more sustainable enterprise, timely access to data from multiple sites and sources is critical. At both the enterprise and facility level, you’re dealing with volatile energy rates, increasing labour costs, maintenance problems and complex compliance issues. On top of that, global enterprises are tasked with tracking and reducing greenhouse gas emissions. We can help businesses in the GCC reduce their global warming footprint,” added Clay.

Johnson Controls also offers a complete line of integrated controllers and equipment for lighting, fire and life safety, physical security, and heating, ventilation and high efficiency York air conditioning (HVAC) equipment. A unified approach to

encompass HVAC, lighting and access controllers enables facilities to integrate and easily adapt to ever changing operational scenarios, as well as add third party vendor systems.

Johnson Controls

Iain Campbell explained the company’s views on various topics.

Sustainability –reducing the carbon footprint for both our clients and our company. In 2002, we made a commitment to reduce our carbon footprint by 30 per cent by 2012. We actually reduced it by 36 per cent by the time we got to 2008.

So we have set another 30 per cent goal for the next ten years. We will be sharing with others many of the things that we did to achieve those results.

Sustainability – our commitment to communities. We have a ‘blue sky’ programme where we encourage, by corporate funding, our employees to get involved with local activities to support local communities. That is a very active programme.

Helping schools, clean-up initiative, etc.

We are a $38 billion corporation with three main activities of automotives, power solutions (Lithium batteries for hybrid vehicles and plug-in electric ones) and building efficiency.

According to studies, the best way to deal with climate change (greenhouse abatement) is by conserving energy consumption in buildings and then in transportation.

Research into technologies (products, control systems, equipment for new buildings/retro fitting) and the business of service and maintenance ensures that once constructed, a building operates efficiently.

JC manages over 20 billion square feet of commercial, industrial and institutional buildings with its systems.

“We understand buildings through their many stages of construction, design, operational and lifecycle. We know what makes them efficient.”

“Spending an extra dollar in the planning stage gives back at least $18 in its lifecycle,” he adds.

Clay Nesler explained: “We are different to other companies in that we actively get involved in the design stage of a building, we help with the build and retrofit activity they undertake, we directly execute those projects in relation to our technology systems installed, we maintain them over time, and, because we do all that, we put our balance sheet behind it and guarantee the work.”

A good example of this is the Empire State Building, USA, constructed in 1931. Years later, the owner of the building decided to renovate and upgrade the space to be able to get higher quality tenants in the building.

They had already secured funding to do that, and in line with the Cleaner Climate project, they came to us and asked how they could do this – maybe by using some of the money they had put aside for re-furbishment?

This was a three year payback and we managed a $4.4million annual saving. We did this by taking an integrated approach by taking the right steps in the right order to achieve these kind of results. It’s not about just putting in a new system.

The owners goals were: to prove that energy efficientcy retrofits were in fact cost-effective • we can make good decisions financially that are also good for the planet • to create a model that others could follow. JC agreed to share their knowledge on methodology, analysis, etc.

The company spent a lot of time considering what could be done and came up with 60 potential improvements – from putting wind turbines on the roof, to putting green roofs on some of the landings, photovoltaic panels embedded in the windows.

Everything from commonplace to sharp-edge technology. We whittled that down to eight choices that would give the most energy savings as well as investment returns for the client. And, we guaranteed that saving over a 15-year period.

One of the more interesting jobs

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As this is a building of historic value, we had certain rules that we had to follow. An interesting story concerning the red windows is that when the building was originally built in 1931, the windows were delivered with a red primer on them – ready for painting with a top coat of some other colour. But, this happened at the height of America’s Depression and there wasn’t enough money to paint them. So when the windows were replaced in the 1950s, the Historic Landmark Commission in New York would not let them change the colour of the windows as they had become an integral part of the landscape. So they had to find a paint that matched the colour of the original primer from 1931. Building codes and historic companies have to be kept in mind when renovating old buildings.

The newest thing is a Tenant Management Energy system. Every floor within the building will be sub-

metered and some tenants will have their own energy meter with the results seen on their own website every 15 minutes. This will enable choices to be made such as turn off lights, put computers on stand-by, etc. It will also let you compare energy usuage with others in the building. We think that will create a little competition amongst companies to be the one who uses the least energy.

Magdy Mekky expanded on some new ideas relevant to this part of the world by stating that smart grid and smart buildings is a big topic of the future.

“A smart grid is an upgrade of the electrical distribution system allowing it to accomodate more renewable intermittent sources of energy.

The sun shines, it doesn’t shine; the wind blows, it doesn’t blow. The grid has to be smarter to be able to accommodate more variable sources of energy. It is a bit like meshing

the internet with the electrical grid so that the providers of utilities can send information to buildings and the buildings can send information back. Through this, buildings will be able to use less electricity and the system will be more efficient. We believe there won’t be a smart grid until there are smart buildings attached to it.”

JC is the number one management company in the world for its Operations & Maintenance work.

Commenting on the local market, Iain Campbell said: “We have seen lots of clients questioning the service providers they are forced to accept – many want to change, do their own research and change the O&M company.”

The company currently services over 300 commercial buildings under various maintenance contracts with Nakheel, Emaar, banks in Sharjah, Emicool and the largest plant room in the world at Dubai Airport.

DUBAI REAL TIMES

in this project is that we are going to be re-manufacturing the windows – all 6,500 of them– by using and improving the ones that are currently there instead of dumping them in a landfill and making new ones. Every night, 50 windows will come down, The two existing glass panes will be taken out and a new film placed between them to allow visability through into the offices, but will block energy from coming through.

The gap will be filled with an inert gas and those windows will be put back again the following night when the next fifty are taken down to be remanufactured in the same manner.

It will take about a year to complete the job. This job will reduce the cooling needed within the building by 33 per cent. Because of this, we do not have to add to the chiller facility. We are also putting in more efficient air handling units, and digital controls and it will be the world’s largest wireless control system.

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DISCUSSION

Call for greater knowledge transfer on sustainability Architects urged to effectively tackle techno-economic challenges to sustainability

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ustainability cannot be generalised, but should integrate histories, geographies and traditions, including

Hotel in Dubai, under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE

work together to develop a sustainable architecture with an impact both within and beyond the building skin.

For architects to remain relevant in

and confidence. The first edition of The Dubai Forum, held in collaboration with the Cooper Union for the Advancement of Science and Art,

Panel discussions at The Dubai Forum focused on: architecture and sustainable communities; architecture and natural forces, media perspectives; architecture and rapid urbanisation; and architecture and cultural sustainability

DUBAI REAL TIMES

Elizabeth O’Donell

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contemporary building aspects, and Dubai is a perfect example for these trends that professionals need to emulate and share at all practical levels, according to Elizabeth O’Donell, Associate Dean, Irwin S. Chanin School of Architecture, The Cooper Union for the Advancement of Science and Art, USA. O’Donell’s remarks came during her address at The Dubai Forum on ‘Architecture for Sustainable Societies’, held on January 5 at The Address

Mona Al Marri

and Ruler of Dubai.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, attended the premier platform organised by Brand Dubai to foster discussions on sustainable development.

O’Donnell said: “This forum was convened as an opportunity for dialogue among professionals and educators concerned with the built environment to discuss contemporary challenges and assess how we might

this endeavour, they must be willing to develop and critique their work in a context that is not only physical but economic, climatic, social and cultural as well. In this way, architecture can establish relationships, activate and engage civic space and support human activities that foster, protect and encourage a sustainable future.”

Mona Al Marri, Chief Executive Officer of Brand Dubai, said: “Burj Khalifa has sent a clear message about the country’s positive energy, optimism

coincided with the opening of the world’s tallest tower in Dubai, and has proved to be an extraordinary podium for information exchange.

“The panelists and teams deserve to be commended for making this forum an effective knowledge sharing platform that we believe will continue to contribute to sustainable development around the region.”

Panel discussions at the forum focused on architecture and sustainable communities; architecture and

Dubai Forum were: Dr. Sabah Al Rayes, PACE Founder-Managing Partner (Kuwait), Lanny J. Davis, Attorney, McDermott, Will & Emery, Washington, DC, and Former White House Counsel (United States), Kohelika Kohli, Chief Executive, K2INDIA (India), Dr. Tayeb A. Kamali, ViceChancellor, Higher Colleges of Technology (UAE), Dr. Nadim Karam, Architect / Principal, HAPSITUS (Lebanon), George J. Efstathiou, Managing Partner, Skidmore Owings and Merrill, and Lead Architect for Burj Dubai (United States), and Eng. Rashad Mohammed Bukhash, Director of Architectural Heritage Department Dubai.

Other key participants include: Dr. George Campbell Jr., President, The Cooper Union for the Advancement of Science and Art, New York (United States); Diana Hamade Al Ghurair, Architectural Expert (UAE); Salameh Abdul-Hadi, Media Expert (Jordan); Sadruddin Hashwani, Chairman, The Hashoo Group (Pakistan); Farooq Sobhan, President, Bangladesh Enterprise Institute and Former President of G-77 (Bangladesh); and Dr. Michael Sorkin, D is t in g u ish e d Professor of Architecture and the Director of the Graduate Urban Design Programme at the City College of New York (United States).

DUBAI REAL TIMES

natural forces; media perspectives; sustainability means social sustain- containing the proceedings of the architecture and rapid urbanisation; ability, political sustainability, and Forum’s different sessions in 2010 and architecture and cultural sustain- sustainability of a community, and a would also be made available every ability. Among the topics that the city is a reflection of a society’s past, year to serve as a reference guide. panels dealt with are: Architecture mistakes it has made, the novel ideas Among the participants at The and sustainable communities; citizenship and migration; technology and innovation; current research areas; engineering and natural forces in the context of climate change; energy depletion and population explosion; architecture and rapid urbanisation; growth of architecture as art and engineering in the Middle East; and cultural identity and architectural development in poor societies.

Leading media representatives from the Dr. Tayeb A. Kamali Dr. Nadim Karam region and elsewhere discussed issues such as social responsibility and the impact of the media on contemporary architectural orientations.

Speaking on ‘Architecture and Natural Forces’, Dr. Vandana Sehgal, Architect and Professor of Uttar Pradesh Technical University, India, said: “Building the Burj Khalifa tower has been a long and momentous journey from what I gather.

Sustainability is personal Farooq Sobhan to everyone, every region, and every context.

We should however, not be concerned about the Dr. George Campbell Jr extent of accomplishment alone, but it currently nurtures, and its aspira- Dr. Michael Sorkin the economic stability of a building tions for the future.

He added: “Dubai is unique beas well, based on what the country’s cause it has sprung to life in the leaders propagate.”

Panelists discussing the role of shortest span of time. Most cities media and its perspectives in cre- evolve over centuries or decades; but ating architectural and sustainable the emirate has successfully achieved societies in the region felt the pro- this in less than a generation.”

The event hosted over 40 speakcess of social change on sustainability though slow at present, needs to ers, panelists, and more than 400 deltake its natural course. The experts egates from 15 countries.

Ms. Al Marri said the proceedings agreed that media can assist by highlighting the latest technologies of the seminar and the ideas and recavailable, associated costs, and how ommendations that emerge from it things that are evolving now are set would be widely distributed for the benefit of researchers, policy-makers, to make life better.

Hendrik Hertzberg, Senior Edi- educators and the general public. tor, The New Yorker, said: “Cultural She added that an annual booklet

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INFRASTRUCTURE

Together we build the future of Dubai RTA braces for sustained partnership with private sector

R

DUBAI REAL TIMES

oad and Transport Authority (RTA) has a slogan which seems to fit quite a number of companies in the emirate at the moment. “Together we build the future of Dubai” is the slogan they adopted a while ago, and now they are following through with its sentiments by teaming up with companies in the private sector.

During the annual RTA ‘Vendors Open House’, Abdullah Al Madani, CEO of RTA Corporate Technical Support Services Sector, stated that RTA was keen on supporting the existing partnership with the private sector and stressing the importance of maintaining and sustaining this partnership, considering the fundamental role of the private sector in pushing ahead with the development in the emirate of Dubai.

A week later, HE Mattar Al Tayer, Chairman of the Board and Executive Director of Roads & Transport Authority (RTA), received in his office HE Guy Warrington, Consul-General - the British Embassy in Dubai, in a visit that comes in the context of RTA objectives to build on the ongoing cooperative relations with relevant bodies at local, regional and international levels.

The meeting explored means of boosting cooperation and exchanging expertise between the RTA and its counterpart British companies en-

34

gaged in rail, roads and transportation industries, and the parties also reviewed the forthcoming road & infrastructure projects in Dubai.

Prior to this, HE Mattar Al Tayer had revealed that the aggregate approved budget for RTA expenses in 2010 is Dh10.741 billion, of which

“In 2010, RTA will complete the construction of the undergoing projects and engage in a host of other fresh ones as well. Among the key projects underway is the completion of Dubai Metro Project, the first stage of which was opened in September 2009 with 11 stations which are now

HE Mattar Al Tayer receiving the Consul of the British Embassy in Dubai

Dh2.835 billion is Operational Budget, and Dh7.906 billion is Capital & Project Budget.

He confirmed that the Government of Dubai is proceeding with its ongoing drive to upgrade its infrastructure, including roads and transportation projects, out of a solid belief that investment in infrastructure is the core driver of any cosmopolitan city.

operational - the remaining stations will be gradually opened shortly.

Work is progressing on schedule on the construction of the Metro Green Line as well, and will continue in the Al Safouh Tram project, comprising two phases extending 14 kilometres along Al Safouh Road,” he added.

“Among the key road projects earmarked for completion or construction during this year is Sheikh Zayed

Road’s Parallel Roads Project; which is one of the mega projects undertaken by the RTA, extending 108 kilometres starting from Sheikh Rashid Road in the North and stretching southward up to the outskirts of Abu Dhabi emirate. The project comprises flyovers and grade interchanges at junctions with crossing roads in a total length of 42 kilometres,” noted Al Tayer.

He further elaborated: “RTA will also complete Al Khail Road Improvement Project; which is one of the key projects; serving as an extension of the Business Bay Crossing through which RTA is intending to develop road corridors supporting to Sheikh Zayed Road and Emirates Road; which are currently handling huge traffic volumes.

RTA will also undertake several other miscellaneous road widening and improvement projects and internal road projects to serve the residential districts of the emirate”.

As regards public transport, he said RTA would continue upgrading mass transportation infrastructure. In particular, he said: “Bus depots at Al Awir, Al Khawaneej, Jebel Ali and Al

ganisations.

Commenting on this MoU, Al Katheeri said: “Employees’ and workers’ safety are the cornerstone of construction activities at Dubai Silicon Oasis; which derives from our commitment to implement internationally recognised safety standards across all DSO projects. So far, we have managed to reduce the number of incidents and injuries caused

Eng. Muammar Khaled Al Katheeri and Mohamed Al Bahri

Control Unit; where attending staff can make any modifications to ensure the timely deployment of buses on their routes. RTA will also proceed with upgrading of marine transport modes, including water taxi, ferry and stations,” said Al Tayer in a concluding remark.

Dubai Silicon Oasis, the region’s premier integrated innovations hub for high-tech industries, has signed a strategic memorandum of understanding (MoU) with Dubai Industrial Academy (DIA) and Zoning Authority Development Control (ZA) under the Dubai Technology and Media Free Zone Authority to implement a Site Safety Passport (SSP) programme.

The signing ceremony was attended

by Eng. Muammar Khaled Al Katheeri, Chief Officer – Engineering Management at Dubai Silicon Oasis Authority, Rashed Al Ansari, Vice-President of Dubai Industrial City, and Mohamed Al Bahri, Director – Zoning Authority Development Centre.

By the agreement, DIA, a division of Dubai Industrial City, will offer a range of bespoke programmes and fixed-accredited training sessions to DSO that can be shared with other organisations. The SSP programme will also be tailored to suit employees at various tiers within these or-

at construction sites by following these standards and making safety a priority. Dubai Industrial Academy has a successful track record in training and educating employees of various ranks on the need to comply with industry guidelines. We hope more organisations and client groups will become part of this initiative and set higher standards.”

Rashed Al Ansari, Vice-President of Dubai Industrial City, said: “Education and awareness about general guidelines remain the foundations of a knowledge economy and the building blocks for better practices in specialised fields. Our commitment on the industrial sector is substantiated by offering specialised training for specialised professionals.”

The Site Safety Passport additionally allows workers to operate interchangeably at the Zoning Authority and Dubai Silicon Oasis.

The first academy of its kind in the UAE, DIA was set up in partnership with the UK-based Technical Training Group (TTG), which is recognised as a ‘Centre of Vocational Excellence’ by the UK Government.

The academy aims to offer over 250 courses in Quality, Health, Safety and the Environment (QHSE), Mechanical Engineering, Electrical and

Power Engineering, Instrumentation and Process Control, Chemical Process and Laboratory Operations, Oil and Gas, Construction, Logistics and Transport, as well as Technical and Supervisory Development.

Emirates Central Cooling Corporation (Empower) is to expand its district cooling infrastructure to meet rising demand in Dubai. The announcement comes at a time when total square footage committed to district cooling provided by the company reached 40 million square feet covering 80 buildings in 2009. The plans included bidding for more projects which are keen to gain from the benefits delivered by district cooling and its environmentfriendly features.

Demand for district cooling has been increasing rapidly in the last decade. In the UAE, it was firstly used in the 1970s at the Dubai International Airport. It started being adopted commercially in 1998 with the real estate boom in the country. The adoption rate in this technology has remarkably increased in the past five years, especially among large-scale projects.

Ahmad bin Shafar, CEO of Empower, said: “We succeeded in building world-class district cooling infrastructure that is considered an ideal economic and environmental solution for residential and commercial units, offices and hotels. In Dubai, residential units are becoming increasingly aware of the importance of using district cooling system as an alternative to conventional AC systems, leading to energy saving and environment conservation, as well as lower operations and maintenance costs. This is in sharp contrast to lower awareness of its importance in other parts of the Middle East.”

The operational savings percentage in a residential unit compared with conventional AC technologies ranges between 40 and 45 per cent.

Empower was created to provide energy-efficient dis-

trict cooling services to large-scale real estate developments. The company unveiled plans to diversify into other energy efficiency and conservation services.

Bin Shafar added, “DCS achieves economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in less capital and operating costs, thus reducing air-conditioning set-up and energy costs per building.”

Empower provides district cooling service to a wide array of projects in Dubai, including Dubai International Financial Centre, Dubai Healthcare City, Jumeirah Beach Residence, Culture City, Business Bay and City Of Arabia.

Emirates Gas, a subsidiary of Emirates National Oil Company (ENOC), has introduced an environmentally friendly and cost-effective solution to metal cutting by offering Cutting Edge Gas, ideal for metal working applications. Traditionally, metal cutting has been done using acetylene, which is more expensive.

Cutting Edge Gas, which is used for cutting, heating, brazing and gouging applications, is about 30 per cent cheaper, lasts longer, reduces handling costs and is environmentallyfriendly and safer than acetylene.

Cutting Edge Gas was showcased recently at SteelFab 2010 which offers a wide range of machinery and equipment in metal working, metal manufacturing and steel fabrication to specialised segments in the industry. At the event, Emirates Gas received positive response from traders and customers. This product is the company’s first venture into the fabrication industry, and has been well received by the trade.

DUBAI REAL TIMES

Rawiyyah will be completed. We will also complete the Bus Tracking System project; which aims at providing ultra-modern top quality services in public transport services in the emirate. It provides instant tracking of public buses 24 hours a day, providing communication and links with them, ensuring their timely arrival at destinations. The system facilitates bus management through a Central

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FOCUS

Green roofs

D

ubai Municipality (DM) has launched a public awareness campaign called Green Roofs, in cooperation with Al Yousuf Horticulture and Landscaping, BMC Gulf Trading, and Renewed Solutions, companies which specialise in agriculture technology and landscaping.

They will provide information in vital locations such as shopping malls, markets, neighbourhoods: Dubai Festival Centre, Mall of the Emirates and the Al Arabi Mall, Al Mizhar and its branches, Al Warqa, Umm Suqeim, Nad Al Hamar, Al Rigga, Al Sufouh and Mirdiff.

Farhan Al Marzouqi, Head of Corporate Marketing and Exhibitions Section in the Corporate Marketing and Relations Department of Dubai Municipality, said that models will be distributed for display to clarify the engineering idea of green roofs in a much simpler way so that everyone could understand it easily.

The Green Roofs project aims at transforming the roofs of all buildings and houses in Dubai into cultivated areas by using water generated from air conditioners to irrigate plants. It will be implemented gradually as the massive growth of urbanisation in Dubai is leading to rising tempera-

ture in the region, and this is one of the environment-friendly solutions taken up by DM as it reduces temperature and purifies air from other pollutants. It also cools and purifies the air producing oxygen, regulating humidity and absorbing dust.

Also, green roofs reduce energy consumption. Buildings with green roofs require less cooling in the summer than buildings with conventional roofs. It is one of the meaningful methods of thermal insulation which, if used widely, will contribute in addressing the phenomenon of accumulation of gases in the built environment, also known as the

The application of green roofs is optional for residential villas, but for investment buildings, it was decided that the proposal be submitted by the consultant and the owner and discussed with specialists in the municipality during the implementation phase of buildings

DUBAI REAL TIMES

Farhan Hassan Al Marzouqi

36

impact of urban heat island, where the temperature is around three to five degrees celsius higher than the suburbs due to the absorption of the heat by buildings and streets and the inability of the city to get rid of this heat during the night period, which leads to accumulation of gases. It is also worth mentioning that a green roof will isolate external sounds.

The application of green roofs is optional for residential villas, but for investment buildings, it was decided that the proposal be submitted by the consultant and the owner and discussed with specialists in the municipality during the implementation phase of buildings, so as to prevent any delay in treatment due to the application of the system. If they are satisfied with the system, it will be implemented before the issuance of the accomplishment certificate or the implementation suspended for another time.

Preparation of a manual on green roofs has been completed, which includes construction and environmental standards that must be met during the application, in addition to the conditions, incentives, and the licensing mechanism. It also includes a list of the types of plants suitable for cultivation on the surface and soils that are suitable and their technical specifications. The manual also explains the needs of different plants for irrigation so that plants that require minimal maintenance are chosen.

UAE’s largest pre-insulated pipe manufacturing facility Signifies UAE’s drive towards diversification of economy Dubai Judicial Institute (DJI), a leading centre of law studies and judicial training in Dubai, recently hosted a seminar on ‘The role of legislation in solving legal disputes related to real estate and property transactions in Dubai.’ The event was attended by representatives from the Dubai Public

Prosecution, Dubai Property Court, Dubai Labour Court, Dubai Courts, Dubai Real Estate Regulatory Agency, Ajman Real Estate Regulatory Agency, Abu Dhabi Islamic Bank, and law firms in Dubai. The seminar forms part of DJI’s efforts to foster cooperation with government organisations and

provide all available tools and methods to resolve property transaction disputes in the emirate.

Emad El Din Farouq, Senior Legal Advisor at Dubai Land Department, discussed the important role of legislation in promoting stability within Dubai’s real estate market. Mohamed

Massaad Al Sharif from the Property Court at Dubai Court, on the other hand, explained the ‘Property Legislation System in Dubai.’ He spoke about the three major areas of the system, namely, the legislative development for the committee on rental and property disputes; the property legislative

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, visiting Dubai Healthcare City (DHCC) stand on the opening day of Arab Health 2010. He is accompanied by Dr. Ayesha Abdullah, Senior Vice-President, DHCC, a member of TECOM Investments, and Dr. Muhadditha Al Hashimi, Acting CEO of Tatweer

DHCC and DuBiotech share stand Dubai Healthcare City (DHCC), the world’s first integrated healthcare free zone, and Dubai Biotechnology and Research Park (DuBiotech), the major life sciences hub in the Middle East, highlighted new opportunities and showcased recent developments at Arab Health 2010.

Launched in 2005, the Dubai Biotechnology and Research Park, pursues a mission to create the biggest life sciences cluster in the Middle East.

DuBiotech’s latest milestone includes the completion of the state-of-the-

art four-storey Nucleotide Laboratory Complex. Comprising 256,000 square feet of leasable area, the ultra-modern Nucleotide Lab Complex is designed to house biotech, life sciences and pharmaceutical activities ranging from research and development to diagnostic, analytical and equipment training activities.

As a leader in providing the highest quality healthcare which prioritises patient needs, Dubai Healthcare City launched a suite of new consultancy services including health informatics,

medical licensing exams and Primary Source Verification, a system to verify the credentials, experience and qualifications of healthcare professionals.

Dr. Ayesha Abdullah, Senior VicePresident of Dubai Healthcare City, said: “Since its inception, DHCC has grown into a city of over 90 outpatient centres and diagnostic laboratories, two hospitals and over 100 commercial and retail services. We have the highest standards in healthcare and have received wide, international recognition for these standards.”

Valuations department set up Landmark Properties has announced the launch of their new department, Landmark Valuations, which services corporate and private clients to give an accurate picture of the value of their holdings. Saeed Hashmi has been appointed as Head of Valuations; a professional with considerable experience in the property sector having worked for both client-side and consultancy companies. He has a BSc Honours in Estate Management and is a Member of the Royal Institution of Chartered Surveyors.

“In this rapidly changing property market in the UAE, our clients need to know the true value of their asset, whether it’s for corporate or personal account records,” explained Hashmi.

“With the launch of the this department, we are the only company in the region to have four licences, which includes: Property Management, Advisory, Valuations, and a RERA certification to conduct sales and brokerage.”

Landmark’s RICS-certified valuers use information compiled by the company’s analysts to provide unbiSaeed Hashmi ased, reliable valuation consulting for all property types, including residential, corporate strategy; and receiverships.

Hashmi added: “Our corporate clients commercial, industrial, leisure and land.

The team can carry out valuations for a have been keeping us busy as they close number of reasons including bank loans; their books for the 2009 fiscal year and we balance sheets and company accounts; have been valuing both single properties inheritance; purchases; stock market flo- and entire portfolios for them as they seek tation; investment portfolio valuations; certified valuations of their assets.”

DUBAI REAL TIMES

system; and its implementation.

Counsel Bakri Abdullah Hasan, Advisor - Technical Office of the Dubai Public Prosecutor, delivered an overview of the Special Judicial Committee to settle disputes between landlords and tenants, during which he addressed four major areas: the formation of the committee and the outlining of its functions; prohibitions and restrictions on criminal proceedings and the committee’s authorities; its judicial decisions; and the obstacles it faces.

Dr. Jamal Hussein Al-Sumaiti, Director-General of Dubai Judicial Institute, said: “The financial crisis has impacted various legal areas, including disputes and problems related to property transactions. Legislation in general, and property laws in particular, around the world, including the UAE, have shown vulnerabilities in solving challenges stemming from current economic conditions. This seminar represents our support for the plans and strategies of the Dubai Government and the Federal Government, focused on addressing imbalances and avoiding gaps in their respective legislations, in line with latest developments at the local, regional and international levels.”

“As part of its aim of overcoming the repercussions of the crisis and continuing the growth witnessed by the UAE real estate market over the past three years, the Dubai Government issued decree No. 56 for the year 2009, which provides for the formation of judicial committees that will settle disputes over bounced cheques in the real estate sector,” he added.

“Property disputes fall within the jurisdiction of the courts, but given the importance of the real estate sector and the necessity of resolving such disputes, the Dubai Government has suggested resolving some property and rental disputes through special committees. In this regard, we believe that seminars, workshops and related events will be an effective means for promoting the legal and judicial culture within society, family, property sector and other vital areas. Such initiatives are in line with the emirate’s vision of creating an integrated society and achieving comprehensive development in the long run,” concluded Al-Sumaiti.

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Safety first at Downtown Jebel Ali Two million man hours, zero incidents at mixed-use project Infrastructure teams at Limitless’ Downtown Jebel Ali project are leading the way in building site safety, notching up over two million man hours, equivalent to 700 days, without a single lost time incident.

Work at the 200-hectare site began in January 2008, and involved the construction of over 100 kilometres– almost the distance between Dubai and Abu Dhabi – of deep services infrastructure, with up to

800 construction workers on site at a time.

Strict safety procedures here include extensive training and workforce awareness programmes, with incentive schemes encouraging workers to acknowledge and report potential problems as they arise.

Salah Ameen, Deputy Executive Director for Limitless in the Middle East, said: “Efficient safety operations not only reduce the risk of per-

sonal injury, but also keep project timelines on track, saving time and money during construction. Our infrastructure teams work with heavy plant machinery and x-ray equipment, in very confined spaces – all while competing with the heat and humidity of the desert. This ‘two million milestone’ is a remarkable achievement, considering the highrisk nature of the work, and the number of people involved.”

Talks with companies to expand their presence Dr. Zarouni urges Intel to play a more active role in attracting technology companies Dubai Silicon Oasis (DSO), the region’s premier integrated innovations hub for high-technology industries, has announced that a high-level official delegation held discussions with a number of US-based technology and IT companies seeking to set up presence in the Middle East.

The companies represented diverse technology segments including consumer internet, digital media, enterprise software, IT infrastructure, and circuit design.

The delegation was in the US as

part of DSO’s participation in the 10th Annual Intel Capital CEO Summit.

Dr. Zarouni said: “The Intel Capital CEO Summit was a great platform for industry leaders to exchange ideas and network with the key decisionmakers. Our sponsorship of the event demonstrates our commitment to establishing a strong presence internationally and promoting DSO’s offering to a diverse customer base. The event allowed us to meet and explore different ways to attract technology companies to operate

at DSO while channelling research and development to the technology park. The summit also explored investment opportunities in these start-ups and ways to collaborate with different companies.”

A wholly-owned entity of the Government of Dubai, DSO operates as a free zone technology park for semi-conductors, micro-electronics and other electronics-based companies looking to set up their regional headquarters and R&D divisions in Dubai.

Dr. Mohammed Al Zarouni

DUBAI REAL TIMES

Memon Group unveils new brand identity

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Memon Group of Companies, a multi-billion dollar international business conglomerate with interests in real estate development, trading, manufacturing and IT, has unveiled its new brand identity - ‘Shaikhani Group’. Chairman Abu Baker Shaikhani has revealed that the move is in line with the group’s new strategy for growth in the region. The rebranding is also part of the group’s efforts to build a closer association with its founding family - the Shaikhani’s, which the company believes will further strengthen its brand identity. He further revealed that the group aims to achieve a 10 to 15 per cent growth in 2010 and further expand its project portfolio.

All existing business under the group’s former identity, which in-

Abu Baker Shaikhani

cludes Memon Investments, Memon Real Estate Brokers Dubai, Rubber World Industries LLC, Gulf-O-Flex Trading LLC, Memon Developers UK Limited, and Memon Real Estate Pakistan, are also slated to operate under the Shaikhani Group banner. The group is further planning to diversify into the hospitality, medical, retail and educa-

tion sectors in the near future.

“We are pleased to announce our new corporate name - ‘Shaikhani Group’, which represents our evolving strategy to further leverage the property, construction, manufacturing and trading sectors in the region as it undergoes an exemplary recovery phase,” said Abu Baker Shaikhani. “We needed to develop a brand identity that has a universal appeal and is in line with the personality and interests of our group, to maximise our legacy spanning over three decades. The challenge in the current economic climate is to ensure that the message regarding the development cuts through to customers, partners, investors and end-users, and generates significant interests among them”.

Prior to the unveiling of the new brand identity, the Memon Group has delivered over 30,000 units across the globe, and maintained relevant presence in 90 countries. Its property development arm - Memon Investments has a UAE portfolio comprising prestigious projects, including ‘Champions Towers I, II, III, and IV’ and ‘Frankfurt Sports Tower I’ in Dubai Sports City; ‘Gardenia I & II’ in Jumeirah Village, and ‘Cambridge Business Centre’ in Dubai Silicon Oasis, all of which embody the developer’s trademark top-notch quality and uniqueness. The group also has extensive expertise in the real estate market, and a strong reputation for its unwavering support for various causes such as poverty alleviation, environmental conservation and academic development.

Inflation and consumer price index

CPI and Inflation Rate (2008-2009)

Dubai Statistics Centre has published its latest official statistical reports entitled ‘Inflation and Consumer Price Index –Emirate of Dubai 2009’

CPI for Housing, Water, Electricity, Gas and other Fuels group (2008-2009)

Housing, Water, Electricity, Gas, and other Fuels group inflation rate amounted to 2.41 per cent. The highest inflation rate amounted to 6.84 per cent for Liquid Fuel group, 2.80 per cent for Rent group and 2.18 per cent for Solid Fuels .

DUBAI REAL TIMES

The general increase in prices (Consumer Price Index) measures economic inflation and is a direct measurement of purchasing power of money in various financial operations which include goods and services. Inflation is usually calculated monthly and compared with the previous period. It depends on a base year where weights of goods and services are calculated according to families’ expenditure on these goods and services. 2007 is chosen as a base year by using family expenditures and income survey results. Based on this, goods and services have been divided into 12 main expenditure groups, according to the Classification of Individual Consumption According to Purpose (COICOP).

The Inflation rate of 2009 is 4.06 per cent compared to 2008. The education group obtained the highest inflation rate at 18.60 per cent, followed by Clothing and Footwear group by 9.86 per cent, Restaurants and Hotels group by 7.36 per cent, Alcoholic Beverages and Tobacco group by 5.61 per cent, Health group by 5.31 per cent, Transport group by 4.36 per cent, Miscellaneous Goods and Services group by 3.69 per cent, Furnishings, Household Equipment and Routine Household Maintenance group by 3.33 per cent, Recreations and Culture by 2.55 per cent, Food and NonAlcoholic Beverages group by 2.42 per cent, Housing, Water, Electricity, Gas, and other Fuels group by 2.41 per cent.

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CPI and Inflation Rate for Furnishings, Household Equipment and Routine Household Maintenance group (2008-2009)

Furnishings, Household Equipment and Routine Household Maintenance group inflation rate reached 3.33 per cent, due to increase in Household Textiles by 25.62 per cent, Glassware, Tableware and Household Utensils by 16.74 per cent, and 14.75 per cent for Major Household Appliances whether electric or not.

DUBAI REAL TIMES

CPI and Inflation Rate for Education group (2008-2009)

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Education inflation rate has increased by 18.60 per cent, due to tuition fees.

LAUNCHES

UAE’s largest pre-insulated pipe manufacturing facility Signifies UAE’s drive towards diversification of economy

H

RH the Crown Prince of Denmark, Frederik and HH Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum inaugurated Empower-Logstor Insulated Pipes Systems (ELIPS), UAE’s largest pre-insulated pipe manufacturing facility, in Jebel Ali. The move signifies UAE’s drive towards diversification of economy in order to sustain growth.

ELIPS is a joint venture between Emirates Central Cooling Systems Corporation (Empower) and Logstor, the world’s largest manufacturer of pre-insulated pipes. The $25 million facility will cater to the requirements of District Cooling Services plus the Oil and Gas indus-

tries across the Middle East.

Speaking at the launch, Ahmad bin Shafar, CEO of Empower (51 per cent partner), said: “This factory represents Dubai’s success in bringing fresh investments into the emirate. Further, it demonstrates Dubai companies’ progressive outlook, reflected in investing in new ventures, expanding existing facilities to provide full integrated solutions and producing raw material internally instead of importing it.”

The factory will ensure high quality of insulation and casing of pipes. It will also ensure price control by improving supply chain and eliminating artificial price fluctuations created by various players

due to the demand-supply gap. It will benefit from its location in Jebel Ali Industrial area, which will provide easy access to both Dubai and Abu Dhabi markets.

Depending on dimensions and output from 100 to 300 pipe joints a day, the factory will offer job opportunities for a wide range of competences, from operators to highly skilled engineers within sale, engineering and production technologies.

The factory is using spray technology for manufacturing large diameter pre-insulated pipes which will ensure high quality products and also result in savings in raw material costs as compared to tra-

ditional injection technology. This technology also enables a foray into the oil and gas industry which is not possible with traditional injections.

Currently, only one out of five existing pre-insulated pipe manufacturers are using spray technology.

Preben Tolstrup, CEO of LOGSTOR, which owns 49 per cent stake in ELIPS, said: “We have more than 50 years of experience and 10 factories worldwide, serving customers in more than 50 countries. With the prime purpose of supplying top quality district cooling pipe systems to the entire region, the world’s most advanced technology introduced at this new plant will set the standards for many years ahead.”

World class conference centre at JLT Dubai Multi Commodities Centre (DMCC) has officially opened Almas Conference Centre, a stateof-the-art facility in the Jumeirah Lakes Towers (JLT) community. The conference centre is located on the ground level of the flagship, 65-storeyed Almas Tower in the heart of JLT free zone master developed

by DMCC. It houses the region’s first Diamond Exchange, the most sought-after address for the gem trade.

The Almas Conference Centre is custom-designed to host corporate conferences, conventions and

DUBAI REAL TIMES

Almas Conference Centre to be managed by Atlantis, The Palm

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exhibitions, with a touch of class that comes with all facilities in JLT. It is equipped with a spacious preevent area for networking, bulk storage areas, office space, a full-fledged kitchen and catering facility, as well

as the most sophisticated audiovideo systems.

DMCC has partnered with hospitality specialists Atlantis, The Palm to manage the facility and deliver endto-end corporate event marketing

and logistical solutions for the 800 square metre location which has a capacity to host 500 delegates at a time.

Ahmed bin Sulayem, Executive Chairman of DMCC, said: “A unique

global event facility deserves to be managed by a unique hospitality brand. That is why we chose Atlantis, The Palm as our partner to ensure world-class services are delivered at every event.”

also rely on the added security of investing in a Dubai-based hotel product. A study published by STR Global in June 2009 showed Dubai continues to lead global hotel occupancy rates, outperforming Paris, New York, Singapore and Tokyo, among others. Within Dubai, beach hotels and resorts continue to earn higher revenue per available room compared to similar hotels in the city.

Piaras Moriarty, VP Client Management, IFA HR comments: “With banks’ deposit rates at historical lows, the purchase of a hotel condominium property is an attractive alternative for those wishing to diversify and improve the return of their investment portfolios.”

Leading luxury hotel operator,

Fairmont Hotels & Resorts, will be responsible for the day-to-day administration, marketing, servicing and maintenance of the hotel.

The Fairmont Palm Jumeirah is situated on the western portion of the trunk of Palm Jumeirah island and has reached the top level of construction.

The five-star beach hotel will host 381 fully furnished rooms and suites with spacious balconies overlooking elegantly landscaped gardens, pools, the Arabian Gulf and the Dubai Marina. It will also include extensive conference facilities, a selection of food and beverage outlets, a well-equipped gym, a Willow Stream Spa and outdoor leisure amenities, including a private beach and pool complex, sports club and kids club.

DUBAI REAL TIMES

Hotel condominium ownership

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IFA Hotels & Resorts (IFA HR) has launched its second hotel condominium ownership product in the Middle East. Situated within the fivestar Fairmont Palm Jumeirah hotel in Dubai, the new offering is of particular interest to investors wishing to diversify their property portfolio with a unique real estate option that combines both the business of guaranteed rental returns and strong capital growth potential with the pleasure of a hassle-free vacation property.

The concept allows initial investors to buy a fully furnished, five-star branded hotel room, within a rental pool system that guarantees annual returns of 10 per cent per year for the first five years, underwritten by IFA Hotels & Resorts during the hotel’s

stabilisation phase, and a guaranteed buy-back premium of 10 per cent after five years from the hotel’s opening. Owners also enjoy access to the accommodation and exceptional amenities managed by Fairmont Hotels & Resorts for a total of up to 30 days each year.

Werner Burger, President & COO of IFA HR, stated: “Worldwide, hotel condominiums are one of the fastest growing sectors of the real estate industry. As the first company to introduce the concept of hotel condominium ownership to the Middle East, we have seen its appeal continue to grow, particularly in markets like Dubai where hotel occupancy is still one of the highest in the world.”

In uncertain times, investors can

Development plans on The World islands Construction to commence on Germany in Q1 2010 Kleindienst Group (KG) is one of the first developers to announce construction plans on The World islands project in Dubai this year. The real estate company has launched its Heart of Europe development - a six-island, 12-site luxury holiday destination, which begins construction on the island of Germany in the first quarter of 2010.

The first phase comprises 20 villas, designed by leading Spanish architectural practice A-cero, and is reserved exclusively for private holiday homes.

The plots, inclusive of sea frontage, range from 6,000 to 40,000 square feet on which investors select their pre-designed shell and core scheme for a 3, 4 or 5-bedroom villa. Interior fit-outs are then customised to individual tastes with investors able to choose from a wide range of finishing options. Land prices range from Dh1.8 to Dh12 million.

The villas are primarily targeted towards end-user holiday home investors, a market which the company sees as a key driver of tourism and real estate growth in Dubai over the short to medium term.

While property prices in the emirate fell up to 50 per cent in some instances during the year, KG remains confident in the investment potential of The World, given it is one of the

only sites dedicated entirely to holiday home ownership.

“We have interests in industrial, commercial, hospitality and residential real estate, but The World is where we now see the strongest market potential,” explains Chief Executive Josef Kleindienst. “Tourist arrivals to Dubai have increased, despite the economic slowdown in 2009, and worldwide, the market for property ownership abroad has shown resilience, particularly for luxury holiday home destinations.”

Kleindienst says Dubai presents many advantages over its rival Miami as a luxury winter sun destination for European holiday home investors. “It is a safe and sophisticated city which is half the travel time so visitors avoid jet lag. They can also enjoy tax-free income generation from holiday leasing,” he added.

According to analyst reports, 60,000 Germans alone will purchase new vacation homes around the world in 2010.

“We anticipate The Heart of Europe will attract interest from both offshore Europeans and residents of Dubai. Investor enquiry levels are looking positive – we have already sold three villas ahead of our official launch to market,” said Kleindienst.

The entire Heart of Europe project is spread over the islands of Germany,

Austria, Switzerland, Netherlands, St Petersburg and Sweden, on which will be another six European destinations – Belgium, Geneva, Luxembourg, Monte Carlo, Poland and Sochi. The first-class holiday destination is a celebration of the continent’s artistic and cultural treasures with each country capturing a different facet of Europe’s unique character – music in Holland, innovation in Germany, style in Austria, wonder in Russia, tranquillity in Sweden, and romance in Switzerland.

When complete, The Heart of Europe will be home to 75 private holiday homes, six apartment buildings, six hotels, six lighthouses and six floating pal-

aces as well as a diverse range of retail, entertainment and F&B outlets.

Kleindienst Group has partnered with some of Europe’s foremost architects and technology providers, including the esteemed Fraunhofer Institute, to give The Heart of Europe its signature style of sleek and modern design infused with characteristics of the host countries.

The development is also a beacon of sustainability and innovative design, with green features that distinguish it as one of the worlds most environmentally and forward-looking destinations, such as zero-energy villas and a climate-controlled boulevard.

Last phase of Shorooq Mirdif development Dubai Properties Group (DPG) has launched the last phase of its Shorooq community in Mirdif offering 1,428 residential units comprising studios, one and two bedroom apartments. DPG’s announcement follows the successful leasing of the first two phases. The familyfocused development is one of the most sought after neighbourhoods in Dubai, offering annual leases for as low as Dh49,000 for a studio, Dh65,000 for a one-bedroom and Dh79,000 for a two-bedroom apartment. Additional discounts are also offered for a limited time for early

booking.

The final phase of the community will feature 42 apartment buildings that provide a variety of unit designs and layouts. This is a unique alternative to high-rise living, offering families a secure, highend lifestyle away from the din and bustle of the city. It is located adjacent to the Rashidiya Metro station.

In keeping with DPG’s mission to create communities with unparalleled amenities, Shorooq Mirdif offers inimitable convenience and a comfortable lifestyle at competitive rates and flexible payment plans.

DUBAI REAL TIMES

Spacious and affordable apartments on offer at family-oriented community

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UNDER CONSTRUCTION

Ground breaking ceremonies The past few months have not only seen construction at various sites going ahead, but have also seen a number of new projects breaking ground

DUBAI REAL TIMES

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wo contractors have been appointed by Almasah International Real Estate to complete works on three of its projects. Al Shafaar civil engineering has been assigned as the main contractor for two projects: Judi Palace and Jouri 5, both located in Jumeirah Village. Al Reem Dubai Contracting has been appointed to begin main construction work on Chess Tower located in Dubai Sports City.

Almasah Chairman, Dr. Abou Taleb Talebi, says that appointing these two proven contractors ensures Almasah’s will to meet its obligations towards its clients and have these projects completed within the scheduled time-frame.

Mobilisation works on Judi Palace started on November 1 2009, and will be delivered in 17 months. The development will have a built-up area of 201,00 square feet, comprising 145 units over four floors split between two buildings.

Work on Jouri 5 began on December 15 2009 and will take 20 months to deliver. It will have a built up area of 775,000 square feet, comprising 511 units spread over 16 floors.

Al Reem Dubai Contracting, which already has a contract with Almasah for the construction of Sahara Living Villas in Dubai Industrial City, began works on Chess Tower on November 5 2009.

Chess Tower will have a built-up area of 296,000 square feet, comprising 252 units and will be delivered in 18 months.

Al Masah presently has a total of 19 projects under construction with a total value of Dh3.7 billion.

UAE-based office furniture giant BAFCO broke ground on January

Judi Palace

11 on a 245,000 square feet facility at Dubai Industrial City, which is expected to dramatically improve production output from 50,000 furniture units to 150,000 units annually. The company, a Dubai-based central trading hub for office furniture since 1991, will benefit from the new centralised headquarters and manufacturing facility, with lead times for clients expected to drop to under two weeks from the previous two months.

Khosrow Fattahi, BAFCO’s Managing Director, said: “This connection of our disparate operations is of paramount importance to our continued success and we are excited to be expanding

Jouri 5

Interior furniture outfitting by BAFCO

and moving forward, particularly during these challenging times, when many companies are retracting. Our facility will be a multi-storeyed unit with warehouse, factory, showroom and offices, all operating as the central hub.”

Fattahi added: “Dubai Airport Terminal 3, Sorbonne University, Hamdan e-University, Drydocks World are few of the successful business stories of 2009 that have benefitted from the expertise of BAFCO in the field of corporate workplace furnishing and interior design.”

BAFCO aims to achieve the LEED (Leadership in Energy and Environmental Design) certification for its new facility.

LEED was developed

by US Green Building Council as a rating system to set a standard for environmentally sustainable construction.

It encourages projects to source their project requirements in a manufacturing facility within 800 km of the building site to reduce carbon emissions associated with transportation and storage.

Dubai Properties Group (DPG) has announced that the

prestigious 23.5-million square feet Remraan development has registered another significant milestone with 25 buildings reaching full height as construction rapidly progresses on the five, six and sevenfloor residences. More than 3,000 workers are on site daily with over 50 cranes operating throughout the development, as 46 per cent of the superstructure is nearing completion ahead of schedule.

In addition, infrastructure work continues across the development’s low-rise residential units.

With more than 85 per cent of excavation and 50 per cent of foundations completed at the site, work has commenced on the construction of roads to service the community that will feature upscale studio, one, two and threebedroom apartments. Contractors have commenced interior fit-outs including walls, floor tiles and fixtures. External primer paint is progressing with work continuing on balconies and decorative surfaces.

Shaikh Holdings has made substantial construction progress on its award-winning golf development - Sanctuary Falls. The developer has achieved significant milestones over the past 18 months, and has been working diligently to build the 99-villa community and deliver on its commitment to its residents.

Overlooking the ‘Earth’ course at Sanctuary Falls

The Imperial Residence construction progress

Jumeirah Golf Estates, Sanctuary Falls provided a dramatic backdrop for the Dubai World Championship held in November 2009.

Imran Shaikh, CEO of Shaikh Holdings said: “All eyes were on Jumeirah Golf Estates during this time and the momentous event created tremendous international awareness for the master community and golf in the UAE.” With the villas now at various stages of construction, from main concrete works to internal finishing, the unique streetscape of Sanctuary Falls has started to take shape.

The current on-site construction workforce stands at 2,000. The first show villa was completed and unveiled following the Dubai World Championship, while the remaining villas are on schedule for completion early this year.

“We believe that despite the volatility in home prices over the last year, the market going forward will gravitate towards quality real estate, creating strong demand and value for developments such as Sanctuary Falls,” Shaikh continued.

Shaikh Holdings is a family enterprise with a Middle East entrepreneurial heritage dating back to Bahrain since 1913. The company currently holds a significant portfolio of residential, commercial and hospitality real estate, and has been a leading institutional investor

in the Dubai real estate market since 2002. The company’s primary Dubai investments have been in premier developments such as Jumeirah Golf Estates, Palm Islands, Emirates Hills, Business Bay, and Dubai Waterfront.

Tameer Holding Investment LLC has announced the scheduled progress of The Imperial Residence which features two 28-storey towers including a 4-storey podium in Dubai’s Jumeirah Village South.

Once completed, the building will house 510 apartments offering a wide choice of sophisticated, contemporary and spacious studios as well as 1, 2 and 3-bedroom apartments including two and three bedroom duplexes. Residents will have access to a range of facilities and amenities, including recreation areas, swimming pools, two gymnasiums with sauna and jacuzzi, children’s play area, 24-hour security and undercover parking. It will also offer residents the convenience of a variety of retail outlets located on the ground floor in addition to an elegantly-landscaped outdoor area.

Federico Tauber, President, Tameer Holding Investment LLC said, “It gives us pleasure to announce that the work in progress at The Imperial Residence is moving forward as scheduled. Construction activities are advancing on both towers where floor slabs have been cast up to level 22. Podium works, block

Silver Tower progress photo taken on December 9, 2009, showing the progress of the superstructure up to the roof level and four side elevations

DUBAI REAL TIMES

Remraan

work and internal activities are also progressing simultaneously on the lower floors. The four tower cranes and 400 workers have been working multiple shifts and have achieved remarkable progress in order to meet the project deadline.”

Regional real estate company, Tameer, reports steady progress on the construction of its 31-storey Silver Tower, with the completion of the building’s top floor and roof. The progress marks the completion of the structure works and achievement of the scheduled December 2009 milestone. At a height of 148 metres, this business tower, with its silver aluminum facade and sleek glass architecture, will comprise 260 offices of varying sizes.

In addition to offering premium office space, Silver Tower will also be home to a fully-equipped health club, 748 private parking spaces, retail and commercial outlets, a cafeteria and more, spread across a total area of around 700,000 square feet.

According to company officials, construction on the building is progressing according to schedule, with completion of the project on track for a 2010 delivery.

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HANDOVERS

Ready and occupied Completion of residences and offices has seen a profusion of keys changing hands

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ore than 50 per cent of apartments owned

by Dubai Properties Group (DPG) at its innovative new community Al Khail Gate have been leased to both corporate and residential customers looking for affordable mid-range housing requirements

DPG is planning to build a dedicated gym, a swimming pool, kids play areas, sports facilities including multipurpose courts for basketball, volleyball and tennis, in addition to a cricket ground, and retail shops to further enrich the experience and better service the community.

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Al Khail Gate

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in Dubai. With reasonable prices and a prime location on Al Khail road, the Dh3 billion development is proving popular with customers throughout the UAE, as demand is high to lease spacious apartments that offer good value for money.

The gated community is designed to accommodate both singles and families across the seven million square foot development.

With leasing prices starting as low as Dh33,000 per year, the Community offers a wide range of apartments and leasing options.

Ideal for residents currently making the long commute from other emirates, the apartments at Al Khail Gate range from 420 square feet studios, 690 square feet onebedroom, 966 square feet twobedroom and 1,150 square feet three-bedroom units.

Star Giga Establishment Limited has started the delivery of GoldCrest Executive, built in the Goldcrest Executive

heart of Jumeirah Lakes Towers.

The 39-storey tower is a premier freehold office and residential development, consisting of deluxe office space and lavishly furnished residences.

The commercial section of the project spans over the first 19 floors.

The first floor houses a Business Centre and several meeting rooms equipped with the latest office infrastructure to provide seamless support. From the second floor onwards is the ultra modern open office equipped with world-class communication infrastructure. The furnished apartments that consist of spacious and sophisticated studios and one-bedroom apartments are from the 21st floor to the 38th.

The building offers all the amenities for modern-day living, including separate gymnasiums for men and women and swimming pools. On the ground level is a shopping boulevard, planned for a variety of retail outlets, coffee shops and a food court. Separating the office and furnished apartments, the 20th floor has been build to Liberty House

house restaurants that oversee the Jumeirah Lake and the Palm Islands Jumeirah. The 39th floor is equipped with facilities such as a rooftop open swimming pool; a sprawling health club with an ultramodern gym; sauna; steam and jacuzzi. Also available is a spacious multi-purpose games section with a billiards table, table tennis, and a party room that overlooks the Jumeirah Lake Towers.

Liberty House, the 42-storey tower consisting of high-end offices and luxury residences in the Dubai International Financial Centre (DIFC) district, was officially opened by Abdulla Mohammed Al Awar, CEO, DIFC Authority, in January. The building has been developed by ETA Star who had started handing over the property to its owners in June 2009. It offers a full range of freehold commercial and residential accommodation.

Fully furnished apartments include studios, one-bedroom, twobedroom, one-bedroom duplex and two-bedroom duplex. It also has high quality, freehold office

Dubai International Cricket Stadium

hotel. Tenants are already in place and operating from the 11-storey, 400,000 square feet office complex at Ibn Battuta Gate, which aims to attract businesses with commercial interests in both Dubai and Abu Dhabi. Due to its single ownership structure, the offices hold particular appeal to institutions and companies that require multiple units or several floors in a building with the potential for future expansion.

Complementing the office complex, is basement parking for over 350 cars as well as a multi-storey, robotic car park capable of handling 765 vehicles - the first of its kind in the Middle East - which has already begun operations. In addition, work is nearing completion on the 166 luxury residential apartments which are expected to be released for long-term rental this month.

Brett Whalley, Head of Commercial Leasing at Asteco, which is managing the flagship

mixed-use development, said: “Now that the scaffolding has been removed and the preparations for the handover are in their final stages, the complex is attracting considerable interest from entrepreneurs, both established and new, to Dubai.”

The 396-room hotel was handed over to owner Seven Tides at the end of January for the final fitting out with an anticipated opening by the Swiss hotel group Moevenpick Hotels & Resorts in May 2010.

The Ibn Battuta complex is within 400 metres of a metro station due to open sometime this year, providing direct access to the Jebel Ali Free Zone as well as Dubai.

Dubailand marked the progress of a significant number of projects in 2009 and is poised to achieve new milestones for the coming year.

Conceptualised as a tourism driver for the country, the site is home to various projects being developed by renowned international and

Motor City

DUBAI REAL TIMES

space ranging from 900 square feet to 24,000 square feet, a club house, plus retail and dining options for its residents.

All the residences are fitted with high quality furniture imported from Italy and Belgium. The studio furnishings include king-size beds with an Italian leather feel and a love-seat sofa made of Grande Ville textured fabric. One and twobedroom apartments have added fittings which include two-seater sofas with cushions and a bar-table.

The leather, black oak furnishings and frosted glass look gives these apartments a contemporary yet sophisticated look and represents a lifestyle that is chic and refined.

The building consists of 10 floors of offices above which are 20 floors of luxurious residential accommodation, apart from six levels of car parking. The majority of the office space is located around a central atrium space providing a bright and lively atmosphere.

The apartments are designed with modern living in mind, with balconies and terraces providing an extra level of sophistication while accentuating the architectural design of the building. Also in the complex is a state-of-the-art gymnasium, swimming pool, a restaurant and an art café.

Construction work is now complete on the latest striking addition to Dubai, featuring an archway larger than the Arc de Triomphe in Paris. The arch at the Ibn Battuta Gate development is the entrance to a combination of modern offices, luxury residential apartments for lease and a five-star

local investors. Key 2009 highlights included a strategic agreement with Royal Caribbean International, Dubai Sports City’s opening of the renowned Butch Harmon School of Golf at The Els Club, and the opening of the 25,000-seat Dubai International Cricket Stadium.

The year also witnessed a number of handovers of residential, retail and commercial units including MotorCity, Al Barari’s exclusive villas, and Dubai Properties Group’s Leyan and The Villa communities. In addition, Global Village commenced its 14th successful season, while Dubai Lifestyle City began construction of the luxurious J.W. Marriott Hotel.

Since June 2009, Dubai Sports City has handed over more than 320 villas in its golf-residential community of Victory Heights to home owners.

At the much-anticipated MotorCity, which provides racing action, over 1,300 residential, retail and commercial units were handed over during the year. The state-ofthe-art mixed use development features exceptional entertainment, dining, leisure, retail, residential and commercial options, while the Dubai Autodrome with its FIAsanctioned 5.39 kilometre circuit caters to motorsports and racing enthusiasts.

Dubai Properties Group unveiled an impressive portfolio of readyto-lease villas and apartments at the Mediterranean-themed Leyan Community. It also commenced handover of The Villa project – a

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The Villa

tranquil Spanish style residential retreat inspired by outdoor living featuring four, five and six-bedroom terraced villas.

Two out of the seven villages that make up the Victory Heights development in Dubai Sports City have seen 100 per cent completion – showing that real estate projects in Dubai are moving ahead, despite last year’s economic downturn.

A total of 305 villas have been completed in the two villages of ‘Estella’ and ‘Carmen’, which account for the majority of the

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Victory villas

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350 villas already handed over to residents in the 961-unit Victory Heights development, a joint venture between Dubai Sports City and Bahrain-based Arcapita.

When the centre is finished early in 2010, there are plans to host regular events for all residents, such as BBQs and family fun days.

Global Village, a cultural, entertainment and shopping venue, commenced a 98-day season from 22 November 2009, featuring a scheduled bouquet of attractions with more than 4,000 cultural

shows and performances. Inspired by the four elements of nature – air, water, fire, and earth, the shows will run until 27 February, 2010.

Al Barari , an exotic garden, boasting spacious villas, vibrant culture and tranquil retreats inspired by the desert oasis and wilderness, has also started the handover of its exclusive villas.

Dubai Lifestyle City, a comprehensive Tuscan-themed lifestyle project conceptualised and executed by ETA Star Group announced the completion

of infrastructure work at the development in early 2009 and held a ground breaking ceremony to mark the beginning of the construction work of the luxurious J.W. Marriott Hotel. The construction work on the villas in Dubai Lifestyle City is currently making steady progress.

The popular Dubai Outlet Mall here, the only ‘outlet’ concept mall in the Middle East dedicated to being a true value retail destination, launched two customer service innovations in a UAE mall - the first ‘Taxi Lounge’ and the first ‘Father and Baby’ room.

The strategic agreement with Royal Caribbean International, the world’s largest cruise line, provided a substantial boost to the cruise industry in the region. Royal Caribbean is offering pre- and posttour packages with shore excursions to Dubailand in order to help guests get the most out of Dubai.

With the advent of Royal Caribbean International’s Brilliance of the Seas into the UAE waters this year from 18 January to April, attractions such as Dubai Autodrome in MotorCity, Dubai Outlet Mall in Outlet City, The Global Village, and Dubai Sports City are gearing up to receive several hundred cruise tourists this year, in addition to the over eight million visits already recorded at this popular destination.

FACILITIES & MANAGEMENT

Safeguarding freehold investments UAE’s property owners to benefit through property management offerings

Donna Newman

showers or shower heads snapping off are on average Dh400-600 per visit by plumbers to rectify. Looking at just two snags, this is already a sizeable cost without taking into consideration anything else that may happen throughout the year.”

A client of LPM who has just relocated from overseas, recently had her three bedroom flat snagged by the company before moving in, she said: “Considering that I purchased a flat in a prestigious area of Dubai, I thought the quality of the unit would at least reflect the high price I paid for it and did not expect the snag list to be as extensive as it was.”

“Following a full inspection of my property, LPM reported over 150 snags and advised me on the priority issues which required addressing immediately in order that I wouldn’t face potential problems later on. I’m relieved that they have discovered these problems at this early stage and are now helping me take the necessary measures to rectify these issues directly with the developer as I would rather be aware of any problems and deal with them now. Otherwise there is the risk that in the future something I initially overlooked could turn into a

bigger problem which would mean that I would have to personally pay to get it fixed.” the client continued.

The LPM team also acts as a liaison between tenants and landlords by handling matters including tenant viewings, tenant management, tenancy renewal management, property inspections and utilities connections. The provision of these services means that proprietors simply receive rent cheques directly from LPM while knowing that their property is maintained in good order and that the asset will appreciate.

Homeowners living in their own units can also benefit by purchasing a

bespoke Facilities Management (FM) package to take pro-active measures to ensure they do not experience problems with their property. The tailored packages offer a range of services, including a 24-hour helpdesk, service and maintenance of air conditioning units and electrical fittings, plumbing units, and the deep cleaning of properties.

“From the moment they purchase the FM package, property owners will know that their property is being managed by experts and is being checked regularly for problems that the unskilled eye may not see,” explained Newman.

Sales and leasing report Landmark Advisory’s latest Sales and Leasing guide for the Dubai market can be used as a reference tool for those looking to rent or buy property in the UAE. Research reveals an increase in activity, targeting more midrange quality and locations over the last three months of 2009. The ‘flight to quality’ trend, witnessed in Dubai, continues to be driven by value-conscious middle-income end-users and families focused on value and size. However, for both villas and apartments, LA has noticed that sale prices dip around the time of handover. This is usually due to owners grappling with their final payment obligations, while also readjusting unrealistic price expectations.

Leasing rates have largely stabilised with apartment rents in some areas increasing in response to steady demand. For instance, the areas buoyed by Abu Dhabi demand, such as good quality units in JLT, have seen lower-limit rents grow by nine per cent.

The flight to quality trend continues across Dubai, with lower-limit rents for high-end units in Downtown Burj Dubai increasing 13 per cent.

However, lower quality units have failed to show similar rent growth, while some areas continue to decline such as the Country Cluster units within International City, where rents fell 12 per cent.

Apartment sale trends are similar to leasing trends with sale prices for Palm Jumeirah apartments climbing seven per cent, while more average quality developments, such as International City, declining by 10 per cent.

LP has seen that while sale prices for 1-, 2-, and 3-bedroom apartments in some areas are increasing, the studio prices are falling largely due to supply imbalances and waning demand.

Villa rents have largely stabilised with strong demand boosting rent levels in key areas, like Jumeirah and Emirates Living.

DUBAI REAL TIMES

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iven the range of quality, finish and price currently seen in the UAE’s freehold market, Landmark Properties has developed both property management and facilities management solutions in an attempt to safeguard the investment of freehold buyers. Both end-users and investors can benefit from greater peace of mind, thanks to Landmark Property Management (LPM) as it continues to pioneer new methods, ensuring that landlords and property owners capitalise from tangible cost savings while maintaining the value of their property.

“A robust property management strategy is key for both overseas and UAE-based property owners as we deliver a range of cost-saving options, from identifying snags in new properties being handed over, to managing the rental relations with tenants on their behalf,” explained Donna Newman, Head of Property Management, Landmark Properties. “The potential costsavings for proprietors using these property management services and homeowners using the facility management services, far outweigh the service repair costs, in addition to minimising potential future problems that can occur in a freehold property.”

The cost of LP’s property management solutions begins at five per cent of a property’s rental value, with the minimum set at Dh3,000.

“A landlord requiring management for his property will find that the preventative costs of our packages may be minor to the actual cost of potential problems there,” said Newman. “For instance, the rectification of ceiling defects would cost approximately Dh2,000 for owners to fix. Common bathroom snags, including leaking toilets and

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COMMUNITY

Al Fara’a Chairman receives Padma Shri Award Leading businessman brings spotlight onto the UAE with second globally prestigious achievement in one year

D

r.

J.R. Gangaramani, President and Executive Chairman of the Al Fara’a Integrated Construction Group, is one of the recipients of the prestigious Padma Shri Award, according to an announcement from the President of India’s office.

The accolade is in recognition of the Chairman’s business achievements and his significant contributions to the growth of the India-UAE relations, wherein the value of non-oil bilateral trade has nearly doubled in the last two years from $29 billion to $ 44.5 billion in 2009. Dr. J.R. Gangaramani is the fifth UAE resident to achieve this award, which follows the ‘Pravasi Bharatiya Samman Award’ that was awarded to him in January 2009 in recognition of his success across various fields and reserved for notable persons of Indian origin outside of India.

Dr. J.R. Gangaramani

“I would like to express my deepest thanks to the Government of India for the Pravasi Bharatiya Samman and now Padma Shri Award, which inspired me even further in my endeavours. My commitment to enriching the lives of people goes beyond the business of constructing

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Painting the walls of Al Noor Training Centre

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Manufacturer designs and paints new facility to provide a safe environment Jotun has underlined its support for the Al Noor Training Centre for Children with Special Needs, with its initiative to design and paint the walls of the Centre’s primary multi-function room. In order to provide a colourful and safe environment for children with special needs, the paint manufacturer specially designed the ‘frescoe fiesta’ using its expert interior design team and also made a cash donation to its arts and crafts programme to help the Centre in developing the students’ creative talents.

Jotun has provided its premium quality paint brand ‘Lady Essentials’ to the Centre due to its children-friendly features, easy to clean, neutral scent and lasting colour. This unique interior decorative paint brand is a result of extensive research and development, and has been specially formulated to address customers’ aesthetic and safety requirements.

skyscrapers, as it focuses more on the development of individuals and communities for a more lasting sense of security and prosperity. This award only adds fuel to my burning resolve to make a striking impact on the lives of my employees, their families and the entire Indian community in the UAE,” stated Gangaramani.

Since its establishment in 1980, Al Fara’a Construction Company has become one of the important drivers of the booming relations between the two countries, having been responsible for erecting a number of high profile projects across the UAE. Nearly thirty years on, the Al Fara’a Integrated Construction Group has culminated in a multi-faceted conglomerate of 10 construction related companies that collectively employ 18,000 people across various industries.

Relocation of wildlife Dubai Industrial City officially participated in the ‘Clean Up the UAE’ campaign, during which 65.5 tonnes of rubbish was collected, following last year’s participation when staff members took part in a beach clean-up drive, as well as the relocation of wildlife from the industrial location. In 2008, DIC successfully ensured the secure transfer of more than 900 endangered wildlife species including gazelles, cape hares, and various types of reptiles such as Arabian toad, leptien's dhab, Arabian sand gecko, sand lizards, as well as grey monitors from the 560 million square feet project site to Al Marmoom Conservation Reserve, a dedicated Dubai Government wildlife reserve. The operation was carried out within 24 hours of capturing the wildlife species, in strict compliance with the codes of global wildlife relocation guidelines.

Xplore UAE raises donations for Rashid Paediatric Centre In keeping with its commitment to give back to the community, Enoc Lubricants, a subsidiary of Emirates National Oil Company (Enoc), teamed up with the Arabian Automobiles Co., the flagship company of AW Rostamani Group and exclusive distributor of Nissan, Infiniti and Renault in UAE, to organise the second edition of ‘Xplore UAE’ off-road driving event.

With participation of more than 500 4x4 owners, all proceeds collected from the event were donated to the Rashid Paediatric Centre, a humanitarian organisation which provides quality education and therapy services to children with special needs. The two companies raised Dh85,000 in donations, and a cheque was given to Rashid Paediatric Centre.

LEGALLY SPEAKING

Clause for concern

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ubai’s real estate sector has been through difficult times since late summer 2008 and through 2009. However, since the turn of the new year, increasing numbers of analysts are hopeful of change for 2010, commenting on various signs of stability and recovery that are sprouting into view.

The marketplace has been thoroughly altered by the economic conditions and the general preference of investors has swung from units in projects that existed only on paper towards units in projects that are complete or visibly under construction. Additionally, investors are finding they have greater strength in comparison with pre-credit crunch times.

The increased confidence of investors is perhaps most keenly evident in relation to the composition of the sale and purchase agreement (the “SPA”) for off-plan properties, the document that governs the purchase by an investor of a unit from a developer.

Whereas previously developers would not contemplate revisions to the SPA, now investors are increasingly finding that there is flexibility, and consequently ,developers showing the greatest flexibility are often the developers attracting the most business.

The purchase price will be at the front of the investor’s thoughts, and, in line with RERA recommended policy, the investor should check whether the payment schedule in the SPA is linked with construction milestones.

Two real estate laws of particular importance in relation to the SPA are Law No. 13 of 2008 and Law No.

9 of 2009. These laws govern the developer’s right to terminate an SPA for an off-plan unit in the event that the investor falls into default, setting out (i) a termination procedure to be followed and (ii) the monies that may be retained by the developer in the event of termination.

Law No. 9 explains that the greater the completion of the project, the more monies that the developer may retain. Law No. 9 expressly states that it applies to SPAs signed before 30 April 2009. To avoid any question of Law No. 9’s application to SPAs signed on or after 30 April 2009, investors will often request an express statement in the SPA to this effect.

Law No. 13 of 2008 provides that if the as-built area of the investor’s unit exceeds the area mentioned in the SPA, the developer is not permitted to increase the price, whereas if the as-built area of the unit is less than the area mentioned in the SPA, the purchase must be decreased accordingly (except where the difference is “minimal”). The investor will often look to ensure there is no contradictory wording in the SPA. In the fallout from the credit crunch, investors are increasingly aware that many projects experience difficulties leading to delays and seek comfort that the SPA is not a commitment to purchase a unit with no foreseeable construction completion date. To provide that comfort, the SPA will often contain (i) reference to an “anticipated” date of completion, with the developer retaining some freedom to push the date backwards if events beyond the developer’s control do delay construction and (ii) reference to a date beyond which, if the unit is

not complete, the investor has the option of terminating the SPA and having monies returned to him.

Of course, not all investors are buying direct from developers, many investors are instead seeking out lucrative deals on the secondary market. In that event, where an investor buys from a seller, the sale and purchase agreement between them is often called a memorandum of understanding (“MoU”).

There are no definitive rules as to whether the investor or the seller should prepare the MOU, indeed it will often be provided by the broker or agent involved in the deal. Both the investor and the seller should carefully review the MOU and obtain independent legal advice before signing.

At an early stage, the investor will want evidence that the seller is indeed the owner of the unit and is entitled to sell. When the seller originally purchased the unit, he may have done so with the help of a mortgage. The investor, therefore, must be careful to ensure the mortgage is discharged before the purchase price is paid.

The investor will want to register his purchase at the Land Department, either in the Interim Real Estate Register (if the unit is incomplete) or in the Real Estate Register (if the unit is complete).

Depending on the nature of the deal and the bargaining power of the parties, the payment of the purchase price may be linked to or conditional on the completion of registration.

To permit registration, though, the investor will need to exhibit a No Objection Certificate (“NOC”)

from the developer. The developer is likely to require all service charges to be fully paid up to date before the NOC is granted. The investor should take care to ensure there are clear provisions in the MoU as to who will obtain the NOC and at whose cost.

Similarly, a registration fee is payable at the Land Department for the registration process and the MoU should apportion this between the seller and investor.

Often the deal will involve the payment of a deposit by the investor on signing of the MoU. The parties should review the MoU wording, explaining who will hold the deposit and in which circumstances the deposit must be released and to whom. If the parties wish greater comfort, they could look to have the third party holding the deposit also signing the MOU. Even with his increased strength, the SPA and the MoU can be a potential minefield for the unwary investor. Each document should be thoroughly inspected before being signed and all parties should seek appropriate independent legal advice in order to be fully informed of the obligations into which they are entering.

The above information is not legal advice and is neither intended to create nor creates a lawyer-client relationship.

Neither the writers nor Afridi & Angell are responsible for anyone relying on the above information. You are recommended to take independent legal advice.

Andrew Yule (ayule@afridiangell.com), Carol Gougoulas (cgougoulas@afridi-angell.com) and Arsalan Shaikh (ashaikh@ afridi-angell.com) are Associates at the law firm of Afridi & Angell.

DUBAI REAL TIMES

By Andrew Yule, Carol Gougoulas and Arsalan Shaikh

51

LEGALLY SPEAKING

The Dubai Land Department & RERA: Legislative Agenda for 2010 An interview with Emad Eldin Farouq

Emad Eldin Farouq, Senior Legal Advisor at the Dubai Land Department, is centrally involved in the process of identifying and facilitating the introduction of new legislation necessary to create a comprehensive system of property laws and regulations in the emirate of Dubai.

Emad recently met Lisa Dale, Partner & Head of Property at Al Tamimi & Company, to discuss what new property laws and regulations we can expect during 2010. Based on that discussion, the following is a summary of the main issues that are likely to be the focus of attention at the Dubai Land Department and RERA during the year ahead.

T

he benefits of having freehold title rather than granted title include the ability to mortgage the property to raise capital and to sell the property in the open market.

DUBAI REAL TIMES

Further protection for purchasers of off-plan property

52

The purpose of many of the property laws and regulations passed in Dubai in recent years has been to introduce purchaser protection and to bring a fair balance to the developer-purchaser relationship.

Examples of such laws include: Law No (8) of 2007 concerning Guarantee Accounts of Real Estate Developments in Dubai (the so-called “Escrow Law”), which established the requirement for all developers to register themselves and their projects with RERA, and to set up an escrow account to ensure that offplan purchasers’ monies are utilised towards the development of the

property.

Law No (13) of 2008 regulating the Interim Real Estate Register in the Emirate of Dubai (the socalled “Pre-Registration Law”), which established the Interim Real Estate Register at the Dubai Land Department, thereby affording contractual protection for purchasers.

Law No (9) of 2009 amending some provisions of Law No (13) of 2008, which established a statutory formula based on construction progress for assessing the compensation that a developer could claim against a purchaser who has failed to make purchase price payments pursuant to his contract.

By sponsoring such laws, the Dubai Land

Department has sought to achieve a fair balance between the developer and purchaser.

A new law is now under consideration for enactment in 2010 which, if passed, will bring a range of further protection for purchasers who buy property off-plan from developers. Such law is envisaged, for example, to deal with the following issues: Refund or replacement property, in the event of a material defect in the property purchased Financial penalties for late delivery of a property by a developer Grounds upon which a purchaser may demand cancellation of the contract, for example the refusal of the developer to link purchase price payments

Regulation of Real Estate Valuers and Real Estate Conveyancers

Since the establishment of RERA in 2007, progress has been made to bring about regulation of the various professions connected with the real estate sector. Such regulation has introduced a regime of registration, minimum qualification requirements, training and professional conduct rules. So far, both developers and real estate brokers have been brought under such regulatory regime.

In 2010, it is envisaged that regulations will be passed to regulate two further professions, namely real estate valuers and real estate conveyancers. The latter is particularly noteworthy: under the current licensing regime in Dubai, the activity of ‘conveyancer’ or ‘settlement agent’ does not exist.

Lawyers have, to a limited extent, been involved with assisting parties in a real estate transaction. However, it is real estate brokers who have tended to assume this role, often reluctantly, simply to fill the vacuum and to facilitate the transaction through to completion. Thus RERA, in conjunction with the Department of Economic Development, will seek to introduce a new licence category to enable ‘conveyancers’ to obtain a business licence and operate under the new regulatory regime to be introduced through regulation.

Real Estate Brokers Trust Account Law

In circumstances where real estate brokers receive and handle monies on behalf of parties in a sale or leasing transaction, there is currently no regulation to ensure that such monies are protected for the benefit of the parties. By-Law No (85) of 2006 regarding the Regulation of Real Estate Brokers’ Register in the Emirate of Dubai requires a broker to be the guardian of such monies, “to keep or to deliver to one of the parties”.

However, the applicable ‘trust rules’ referred to in that by-law do not yet exist. Thus, brokers will often hold a transaction party’s money in a bank account opened in the broker’s own name. Even in the case of an honest broker, the risk exists that third party funds held in a broker’s bank account will become available to the broker’s creditors, for example pursuant to the enforcement of a monetary court judgment made against the broker or in the case of his insolvency.

To afford protection to a party who has lodged transaction monies with a broker, a new law is expected to be passed during 2010 that will require a broker to utilise the services of a licensed escrow agent to hold the monies in escrow at the direction of the parties.

the establishment and management of collective investment schemes analogous to the typical property fund and trust structures that exist in other jurisdictions. Such an initiative would potentially provide a boost to the Dubai real estate market by generating an increased level of collective investment activity.

Reflections on 2009 It is apparent from the above that the Dubai Land Department and RERA remain focused on achieving a comprehensive well-regulated, safe and fair environment for the real estate sector in Dubai. The new initiatives outlined above, to the extent that they are introduced during 2010, are consistent with this objective. On a more general level, Emad expressed the importance of learning from the challenges that the worldwide financial crisis presented to Dubai’s real estate market during 2009: “There are

lessons to be learned from the crisis and we are emerging with a new legal regime. Loopholes in laws are being dealt with, and things will become more organised in 2010. We have a good training programme in place this year through the Dubai Real Estate Institute, for our own staff and outside practitioners.

Additional resources will be brought to fully implement the new laws and systems. We will seek to fully enforce regulations against developers, brokers and any others found to be in violation”. To illustrate this final point, Emad makes reference to the Dubai Executive Council’s Resolution No (25) of 2009, timeously issued on 31st December 2009, which sets out the fines applicable to developers, brokers and others who contravene Dubai’s property laws and regulations.

We shall look forward with interest to the new initiatives from the Dubai Land Department and RERA during 2010.

Strata Law Implementing Regulations Law No (27) of 2007 on Ownership of Jointly Owned Properties in the Emirate of Dubai (the so-called “Strata Law”) came into force on 1st April 2008.

We can expect the Dubai Land Department to shortly issue the General Regulation, Jointly Owned Property Declaration Regulation and Survey Regulation, most likely in the form of guidelines. We await further news on the standard form of Owners Association Constitution and other forms and directions.

Establishment of real estate portfolios A draft law is under consideration which, if passed, will introduce for the first time in Dubai a legally recognised, regulated structure for

About Emad Eldin Farouq Emad graduated with an LLB degree with distinction from the University Fez, Morocco in 1986. After spending 15 years with the UAE Federal Chamber of Commerce and Industry between 1988–2003, Emad joined the Dubai Land Department as Senior Legal Advisor. During his six-year tenure with the Dubai Land Department, Emad has played a significant role in the drafting and introduction of the several property laws and regulations that we have seen implemented during this time. In December 2008, Emad was awarded “Best Government In-House Counsel” by the Dubai Corporate Counsel Group.

DUBAI REAL TIMES

to construction milestones, or if the developer makes material changes to the specifications of the property Establishing additional conditions to be fulfilled by a developer before RERA will provide approval for off-plan sales to commence, for example the need for the developer to own title to the land and to have taken possession of it, to have registered all units in the Interim Real Estate Register and to have either completed 20% of the project or deposited 25% of the project cost in the escrow account.

53

LEGALLY SPEAKING

Q&A DUBAI REAL TIMES

Your questions answered by Helen Tapadar Hangari, Senior Legal Consultant at DLA Piper

54

I am a developer and have heard that the law on dishonouring cheques has changed. What does this mean for my business where we are holding numerous post-dated cheques from purchasers?

A decree has been issued in Dubai which sets up a special committee to settle disputes arising from dishonoured cheques.

This prevents the matter immediately being referred to the police and criminal proceedings commencing. Instead the committee will look at the circumstances and can either cancel the bounced cheque if a developer was not entitled to cash it, order the purchaser to issue a new cheque with a later date if this is appropriate in the circumstances, or refer the matter to the courts if the developer was indeed entitled to cash it. Therefore, as long as a developer is acting correctly and justly in cashing a cheque, there is no cause for concern.

I am a developer of a completed tower and am continuing to provide maintenance services to the development. I have heard that some of my occupiers are not happy with the services and are planning to challenge the service fees this year. Can they do so without the Strata Law implementing regulations being in force?

RERA are listening to complaints from residents regarding service fees, and therefore, a developer should not take advantage of the Strata Law implementing regulations having not been issued yet.

I am a developer and have almost completed my apartment tower. However, we have been affected by defaulting purchasers and I am concerned that we have not registered our off-plan sales on the interim register. Can this be used against us by defaulting purchasers?

In a number of cases during 2009, purchasers wishing to get their money back from a developer who had not yet completed their development did raise the argument that the pre-registration of their contract had not been done within the time limit imposed by law. This is a valid argument, and therefore, you have left yourself exposed by not complying with the law.

I am thinking about entering into a lease, but am worried that the agent will not show me proof of the landlord’s ownership. Am I right to ask for this?

Absolutely. Any person attempting to grant a lease should be happy to show you proof of their ownership of the relevant premises and it is essential that a tenant is certain that the landlord is entitled to grant the lease. There have been many reported cases where agents took rents from tenants who thought they had legitimately entered into leases, only to discover that the true landlord knew nothing of the lease and therefore removed the tenants from the premises. The only way to avoid this is to see the landlord’s title certificate from the Land Department before entering into the lease.

LEGALLY SPEAKING

Forming an ad hoc judicial committee to settle checks of real estate transactions We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai; Having perused Law No. (3) of 1992 Forming Dubai Courts, as amended; Law No. (1) of 1994 Concerning Courts’ Charges, as amended; Law No. (7) of 2006 Concerning Real Estate Registration in the Emirate of Dubai; Law No. (8) of 2007 Concerning Guarantee Accounts of Real Estate Developments in the Emirate of Dubai; Law No. (13) of 2008 Organising the Interim Real Estate Registration in the Emirate of Dubai, as amended; Have decreed as follows

Article (1)

Pursuant to this Decree, an ad hoc judicial committee shall be formed and named the ‘Committee to Settle Checks of Real Estate Transactions’ as follows: a judge of court of Dubai Appeal Court (Chairman) a judge of the court of Dubai First Instance Court (Member) a representative of Land Department (Member) hereinafter referred to as ‘The Committee’.

case the developer proves ineligible to the sum of check. order the check issuer to issue a new check instead of the check subject of complaint payable at the date set by the Committee. refer bounced check to the competent judicial body to take legal actions against check issuer in case the real estate developer is eligible for the sum of check. seek the help of any experts or competent officials in the real estate sector, as it may deem fit.

Article (5)

Judicial control bodies, including police stations, shall refer all complaints of checks stipulated under this Decree to the Committee.

The public prosecution and courts may not investigate into bounced checks under this Decree or resolve any dispute in connection therewith before the same are referred to and considered by the Committee. They shall also suspend the consideration of any complaint or penal claim related to such checks and refer the same to the Committee for consideration pursuant to this Decree.

Article (6)

The rulings of the Committee shall be final and cannot be challenged, and shall be enforced through the enforcement department of Dubai Courts.

Article (7)

A non-judge member of the Committee shall, before assuming office, take oath before the Director of H.H. the Ruler’s Court as follows: “I swear by the Almighty Allah to rule fairly, respect the Laws and perform my duty with honesty.”

Pursuant to this Decree, the Committee shall exercise its powers by virtue of: laws applicable in the Emirate of Dubai.

Islamic Sharia principles. customs and practices, unless they infringe the law, public order or public ethics. normal equity principles and rules of justice and equality.

Article (3)

Article (8)

Article (2)

The Committee shall solely settle complaints of returned checks issued by the purchaser to the real estate developer or checks issued by beneficiaries and tenants of long-term properties whose rights are governed by the aforementioned Law No. (7) of 2006.

Article (4)

In order to settle check complaints referred thereto, the Committee may: cancel a bounced check issued for the real estate developer in

This Decree shall go into effect from its issue date and shall be published in the Official Gazette.

(Signed) Mohammed bin Rashid Al Maktoum Ruler of Dubai This Decree has been issued in Dubai; 1 November 2009 A.D. 13 Dhu Al-Qadah 1430 A.H.

DUBAI REAL TIMES

Decree no. (56) of 2009

55

DUBAI REAL TIMES

LIST OF DEVELOPERS

56

ID

DEVELOPER NAME

812

Al Tafany Properties Limited

220

A S A Developers Ltd

290

Al Tamimi Investments Limited

594

A.C.Holdings Limited

799

Al Zahra Properties

395

A.S.A Developers Limited

479

Alduaa Residence Limited

514

Aa Global Limited

3

Alfajer Properties L L C

16

Aaa Auctions Organizing & Management

78

Alfaraa Properties

49

Aakar Developers Ltd

304

Alfattan Properties (L.L.C)

255

Ab Properties Limited

463

Alghanem Real Estate Llc

568

Abdulrazzq Ali Almadani

79

Almadar Investment (L.L.C)

646

Abdulsalam Mohd Alrafi Real Estate Development Group (L.L.C)

817

Almasah Middle East Investment Limited

670

Abwab Real Estate Limited Co Llc

411

Alosaimi Real Estate Investments Co L.L.C

46

Abyaar Real Estate Development

299

Alshafar Development (L.L.C)

414

Acw Holding Ltd

602

Alsondos Real Estate

720

Adel Mohammad Saleh Ali Naqi Al Zarooni

86

Altajir Real Estate L.L.C

679

Ag - Optimo Limited

31

Alternative Capital Invest (Gmbh)

506

Ahmad Abdulla Ahmad & Ayesha Ahmad Abdulla & Amir Badkoubeh & Armin Niasar

448

Amesco Tower Jlt

468

Anil Adinath Bastawade

268

Ahmed Abdul Rahim Alattar Properties 221

Anis Holdings Limited

428

Al Dar Real Estate 183

Anis Property Investments Ltd

328

Al Duaa Holdings Fzc 132

Antonia Resources Ltd

199

Al Jawi Investment L.L.C 309

Arabia Group Development Limited

4

Al Manal Development Fzco 310

Arabia Group Investment Limited

137

Al Masarat Real Estate Development (Llc) 378

Arabian Investments Limited

784

Al Mazaya Holding Company

239

Aristocrat Star Investment L.L.C

289

Al Murjan Real Estate ( Fzc )

525

Arra Limted

18

Al Rashid Investments

279

Aryene Plus Property Developers Limited

14

Al Sayyah & Sons Investments(L.L.C)

532

Aryene Property Developers Limited

194

Al Shafar General Contracting Co Llc

597

Ashai Tower Jvs Limited

418

Al Shamsi Group (Llc)

36

Aswan Developers Inc

Aswan Investments Limited

323

Brookes Corporation

830

Aurora Limited

828

Bucephalus Holding Limited

392

Avanti Holding Limited

449

Bukhatir Properties International Llc

131

Avetona Global Ltd

357

Burj Alalam Holdings Limited

595

Avon Developers&investments Limited

263

Burj Aldua’a Limited

317

Axon Development (Fzc)

258

Bux Holdings Limited

235

Azizi Investments (L.L.C)

401

Byblos Real Estate Broker

391

B & M Fzco

731

C7d1 Limited

786

Baiti Properties Development Llc

77

California Spanish Villas Limited

380

Balqis Residence Fzc

298

Capital Trust Gulf Limited

308

Bando Engineering & Construction Co Ltd

40

Cayan Real Estate Investment & Development (L.L.C)

281

Bangash Builders &developers Limited

130

Cenita Global Ltd

584

Bangash Developments Limited

337

Chapal World Llc

793

Bangash Investments Limited

816

Chess Tower Limited

472

Baraq Holdings Limited

723

City-d Investments Limited

647

Bassam Said Freiha

842

Cl International Development Limited

141

Bavaria Gulf Sandoval Ltd

358

Cliff Dwellings Enterprises Ltd

148

Bay Central Developments Limited

431

Comfort Homes Ltd

360

Bay View Investments Limited

312

Condor Properties Limited

134

Beliza Resources Limited

794

Cornica Tradings Assets Limited

838

Bella Vida Limited

356

Credo Investments Fze

413

Beney Investments Limited

801

Credo Investments Fze

884

Binary Development Limited

123

Crown Holding Limited

829

Blue Sky And Nawaab Holdings Limited

211

Crown One Holding Ltd

277

Boission Limited

733

Crown Three Holding Ltd

374

Bonyan Emirates Properties

821

Crown Two Holding Limited

257

Bonyan International Investment Group (Holding) (L.L.C)

588

D10 Awf Investment Limited

795

Bosphorus Investments Limited

192

Damac Development L L C

296

Brighton Holdings Limited

260

Damac Properties Co.(L L C)

DUBAI REAL TIMES

23

57

DUBAI REAL TIMES

58

42

Dana Property Development (L.L.C)

200

Dubai Sports City ( L.L.C )

844

Dar Corporation Limited

856

Dubai Technology And Media Free Zone Authority

624

Das Real Estate

101

Dubai Water Front (L.L.C)

179

Define Properties L Lc-fzc

834

Dubai World Trade Center (L.L.C)

805

Define Properties Plot 8 Limited

307

Dujon Properties Ltd

318

Desert Dream Investments & Development Properties Llc

486

Dunes Group Developments Limited

313

Desert Home Fzco

340

Dunes Property Investments Ltd

15

Deyaar Development Pjsc

417

Dunes Village Real Estate

158

Dheeraj & East Coast (L.L.C)

742

Durar Al Emarat Properties Llc

6

Diamond Developers Co.Limited

288

Earth Developers (L.L.C)

60

Diamond Arch Limited

719

Edmonton Admire Properties Limited

695

Diamond Properties Limited

540

Elan Investment Limited

864

District Investment & Development (L.L.C)

555

Emaar Properties Pjsc

741

Dja414 Investment Limited

232

Emirates National Investment Co Llc

671

Dmcc Business Park Dmcc

398

Emirates Sunland D1 Limited

874

Dream Estate Limited

399

Emirates Sunland Pv Dubai Limited

45

Dsec Corporation Fzc

688

Erc Property Developers Limited

153

Dubai Multi Commodities Center

860

Es Investments Limited

98

Dubai Golf City (L.L.C)

231

Esca Properties Llc

73

Dubai Guernsey Property Investment Limited

650

Escan Real Estate Pjs

851

Dubai Holding

218

Essa Bin Nasser Bin Abdullatif Al Serkal

862

Dubai Industrial City

26

Eta Star Property Developers (L.L.C)

867

Dubai Investment Park Llc

662

Ever Green Signature Investment Limited

278

Dubai Investment Real Estate

76

Ever Shine Investments Limited

854

Dubai Land ( L.L.C )

250

Fabson Import Export Limited

35

Dubai Life Style City L.L.C

314

Fakhruddin Properties Limited

858

Dubai Maritime City

7

Falcon City Of Wonders (L.L.C)

850

Dubai Properties ( L.L.C )

48

First Homes Ltd O.F

160

Dubai Property Ring Ltd

541

Flamingo Investments Limited

344

Dubai Silicon Oasis Authority

95

Fortisplus Holdings Limited

Fortune Avenue Investment Limited

305

Gulf Shores Inc

407

Fortune Bay Investment Holdings Limited

498

Gulf Technical Construction Co (L.L.C)

466

Fortune Dxb Ltd

82

Gulf Towers Investment Llc

556

Fortune Homes Investment Limited

324

Halcon Real Estates Development (L.L.C)

405

Fortune Serene Limited

809

Hampstead & Mayfair Development Limited

499

G&g Partners Limited

394

Hamza Namera International Fzc

574

German Holding Group( L.L.C)

768

Heman R.E.D. & General Trading Limited

577

Gholamreza Abadi & Shahrokh Nariman & yadollah Nariman & behnam Keivan

53

Her Limited

17

High Rise Properties(L.L.C)

146

Global Group Holdings Limited 58

Hircon International (L.L.C)

190

Global Group International Limited 386

Hma Exec Limited

510

Global King Technologies Ltd 243

Horizon Infrastructure F Z C

151

Global Procurment Fzc 343

Hydra Properties (L.L.C)

523

Global Realty Partners Fzc 703

I.R.Investments Holding Company Limited

253

Gold Vision Development Ltd 552

Ihab Sayed Mohamed Elwishy

248

Golden Beach Properties Limited

841

Golden Land Development & Investment Limited

372

Ilyas & Mustafa Galadari For Investment & Development Management (L.L.C)

270

Gpd Investments L.L.C

865

Indigo Valley Inc Limited

276

Gpd Investments Spv Eight Limited

815

Infinity Emirates Investments Llc

273

Gpd Investments Spv Four Limited

609

Innovvarc Holding (L.L.C)

271

Gpd Investments Spv One Limited

520

Integral Properties Development

275

Gpd Investments Spv Six Limited

475

International Merchant House Real Estate Development (L.L.C)

272

Gpd Investments Spv Three Limited

471

International Merchnant House Llc

806

Grace Property Developer Limited

306

Investments House Co.(L.L.C)

24

Green Desert Ventures Limited

825

Ishraqah For Development Limited

284

Green Emirates Properties- Co.Psc

470

Jab Developments Inc

51

Grm Limited

511

Jab Mosaistone Developments Inc

623

Grun Developers Limited

10

Jad23 Investment Limited

285

Gulf General Investments Co. (P.S.C)

9

Jad24 Investment Limited

135

Gulf Investments (Fzc)

11

Jad25 Investment Limited

755

Gulf Line International Ltd

496

Jamal Mohammed Alhassan & Bachar Bakri Almradi

DUBAI REAL TIMES

406

59

DUBAI REAL TIMES

60

440

Jasmine Garden Limited

282

Mandate International Limited

234

Jersey Properties

164

Manhattan Real Estate Holdings F.Z.C

108

Jumeirah Golf Estates (L.L.C)

67

March Properties Investment Ltd

381

Jupiter Estates Limited

542

Marina Arcade Real Estate Llc

5

K M Properties (L.L.C)

352

Marina Breeze Limited

12

Kaizen One Investment Limited (Offshore)

750

Marina Crown Real Estate (L.L.C)

831

Kd Paca 59 Limited

351

Marina Exclusive Limited

722

Kensington Global Investments Inc

329

Marina Star Limited

242

Khalifa Majid Alabbar

25

Matex Estate Ltd

32

Khuyool Investment L.L.C

420

Memon Developments (Fzc)

663

Kleindienst Properties

760

Memon Property Ventures (Fzc)

500

La Ploma Limited

765

Mena Capital Investment Llc

245

Laguna Tower Residence Fze

353

Mera Home Ltd

181

Limitless ( L L C )

236

Merwess Abdulaziz

71

Links Properties Investment Limited

80

Meydan Group (L.L.C)

489

Liquid Assets Limited

129

Mirjana Resources Ltd

303

Lokhandwala Builders International Ltd

286

Mismak Properties Co (L.L.C)

37

Lootah Real Estate Development Est

41

Mizin (L.L.C)

876

Lootah Real Estate Investment

447

Mohammad Aqil Ali & Ahmad Ali Alzarooni

429

Lux Real Estate

379

Mohd. Hussain & Bros

743

Luxor Investment Limited

458

Mohd. Hussain & Bros

796

Lyra International Limited

519

Mre Global Investment Group Fzc

660

M E Development Llc

52

Mrg Ltd

38

Madain Properties Co. (Mada’in) (P.J.S.C)

402

Msaab Mohammed Alzwaid & Hamad Ali Aldubikhi & Saleh Ibrahim Alqasir

280

Madison Holding Fzco 240

Muhammad Nabeel Joz

21

Mag Group Fze 100

Nakheel Co.( L.L.C )

548

Mahdi Amrollahi (Partner) Antar Marzooq (Owner) 861

Nauman Abid Properties Limited

732

Maison Limited 59

Ncc Urban Infrastructure

44

Makaseb Properties 857

Neel Devcons Limited

513

Mammut Group Fzco

Neel Properties Limited

787

Plus Properties Llc

319

Neo Solutions Limited

453

Pnd Investments Ltd

226

Neptune Properties Investment Ltd

149

Point Development Ltd

355

New World Investments Limited

84

Posh Holdings Limited

882

Noorzak Investments Limited

761

Premier Group (Fzc)

128

Oakgrove Global Ltd

504

Premier Group Properties Inc

311

Oasis Group Ventures Ltd

835

Premiers Property Developers Limited

824

Oasis Jv Limited

124

Prescott Enterprises Ltd

388

Olive Ponit Limited

203

Prescott Holdings Limited

393

Omniyat Properties Development Corporation

125

Prescott Investments Ltd

885

Omniyat Properties Nine Limited

437

Profile Residence Limited

883

Omniyat Properties Six Limited

575

Profile Zero Five Five Limited

886

Omniyat Properties Ten Limited

561

Pyamod Developments Fze

888

Omniyat Properties Twelve Limited

403

Pyamod Homes Consultancy Llc

689

Optimo Arabia Limited

408

Pyamod International (Fze)

709

Opulence Holdings Limited

322

Qureshi Faisal Abdul Aziz

724

Orbit Holdings Ltd

383

R.K.M Real Estate (Llc)

567

Paradise Limited

524

Raam Limited

367

Paramount Real Estate Llc

173

Ramada Real Estate L.L.C

369

Parshwa Holdings Limited

90

Ramadan Mousa Mishmish

562

Paxion International Fze

422

Rams Properties Investments O.F

219

Pearl Dubai Fz- L L C

66

Rani International Development (L.L.C)

209

Pearl Properties

450

Rashed Darwish Alketbi

727

Petrochem Realty Fze

371

Realty Capital Middle East Fz-llc

797

Petrokaz Limited

19

Reef Real Estate Investment Co (L.Lc)

863

Phoenix Holdings (L.L.C)

515

Reliance Estate Developmant

376

Planetex Holdings Co. Limited

8

Remah Holding Limited (Offshore)

91

Plus Internatinal Two Limited

359

Rescom Holdings Limited

92

Plus International One Limlted

56

Rgm Limited

813

Plus International Three Limited

362

Riviera Holdings Limited

DUBAI REAL TIMES

840

61

DUBAI REAL TIMES

62

54

Rmg Limited

384

Schon Investments Limited

606

Roland Developments Fzc

452

Seasif Group Fzco

444

Romeo & Juliet Tower Limited

50

Seasons Development Limited

163

Romil Investments Ltd

493

Seastar Properties Limted

126

Rose Homes Investment L L C

810

Sebco Limited

789

Royal Holdings Limited

534

Segrex Limited

85

Rufi Century Tower Ltd

361

Seracom Holding Limited

68

Rufi Down Town Res Ltd

596

Sevanam Holdings Limited

161

Rufi Gardens Ltd

222

Seven Tides Ltd

162

Rufi Golf Greens Ltd

237

Shaikh Holdings Limited

878

Rufi Grand Apartments Limited

538

Shanti Builders & Developers Limited

775

Rufi Heaven Limited

820

Sharm Investment Co. Limited

798

Rufi Luxury Heights Limited

171

Sheffield Real Estate Llc

336

Rufi Park View Limited

39

Sheth Estate (International) Limited

890

Rufi Prime View Limited

642

Sidra Holding Limited

533

Rufi Rose Gardens Limited

65

Sidra Ltd

433

335

Rufi Royal Crest Ltd

74

Sienna Lakes Ltd

Rufi Twin Towers Limited

373

Silver Star Tower Limited

295

Rufi Water Front Residency Limited

64

Sirius Realty Limited

70

S.P. International 1 Limited

716

Sit Tower Fzco

811

S.P. Oasis Limited

547

Sky Courts Llc

445

Sahara Livings Limited

22

Sky Estate Limited

855

Sama Dubai

30

Smart Home Properties

891

Sama Emirates Estate Development (L.L.C)

491

Smart Investment Limited

495

Sameer Mahmoud Al Ali

819

Sobha International Limited

184

Sanali Holding Fze

87

Sobha Investments Limited

554

Sarhank Kader Developers Limited

283

Sobha Properties Limited

13

Sariin S.R.O

89

Sobha Ventures Limited

204

Satnam Singh

215

Sokook Investment Group

636

Sayed Amjad Husain

244

Souq Residences Fzco

Spain Select Limited

581

Tiger Properties

622

Stallion Developments Ltd

424

Tima Holdings Ltd

697

Star Developers Limited

527

Time Properties

159

Star Surveying & Evaluating Services

147

Torch Select Ltd

791

Sternon Developers Limited

266

Town Center Management Limited

869

Strata Fze

292

Trend Capital Gmbh & Co. Dubai Sport City Kg

193

Sum Sum Developers (Fzc)

96

Trident International Holdings Fzco

368

Sun Valley Holdings Limited

165

Trinity Developers

62

Sungwon F.Z.E

205

Triplanet International Limited

614

Sunland Nur (Joc) Limited

207

Triveni Builders & Promoters Ltd

836

Sunland Waterfront (Bvi) Limited

560

Uae Waterfront Group Limited

28

Sunny Beach Properties Ltd O.F

508

Uk-cig Developments (Jvs) Limited

214

Swiss Tower L L C

501

Umesh Kumar Vinodrai Chug

188

Syann Palm Ltd

27

Union Properties

186

Syann Park 1 Limited

301

Universal Developers (Fzc)

238

Syndicate Developer Limited

127

V Resorts Ltd Fouad Barbar(Owner) / Bsa(Developer)

637

Syndicate Sealine Limited

474

Vascon Trading Ltd

29

T F G Real Estate Broker

465

Venus Properties Investment Ltd

170

Taisir Limited

261

Victory Heights Golf Residential And Development Company (Llc)

756

Takmeel Investment Limited

259

Vision Avenue Homes (Fzc)

99

Tameer Holding Investment (L.L.C)

710

Vokhid Kakharov

287

Tanmiyat Real Estate Development

823

Volcano Investment Properties Limited

490

852

Taskeen Properties (Khaled Heikal& Hesham Heikal & Suaad Mohammed & Ahmad Mohd) Tatweer

808

West Avenue Limited

69

Westar Properties Ltd

868

The Lagoons ( Llc)

254

Wind One Inc Limited

55

The Onyx For Development Limited

892

Wind Two Inc Limited

553

The Palm Hotel And Resort Fzc

773

York Shire Corporation Limited

246

The Palm Vacation Club Fze

507

Yra Enterprises Limited

457

The Pavillion Holding Limite

814

Zenith Real Estate Development Llc

120

The World (L.L.C)

228

Zero Five Zero Limited

DUBAI REAL TIMES

800

63

APPOINTMENTS

New leadership team

Khalid Al Malik

Arif Mubarak

DUBAI REAL TIMES

D

64

David Anderson

Dominic Pilkington

ubai Properties Group (DPG) has unveiled a new corporate strategy outlining the direction, and focus that positions the company to enter its next phase of growth with a sharply defined strategic plan.

DPG develops and manages properties, communities and destinations.

Through its subsidiaries Salwan and Dubai Assets Management it also provides related end-to-end solutions for a variety of services including sales, leasing, facilities management and security.

Khalid Al Malik, Group CEO of DPG, announced the Group’s new leadership team, including heads of both corporate functions and the group’s business units, which will oversee essential corporate functions and manage the company’s augmented portfolio of business entities.

Al Malik outlined DPG’s new mission and goals, at a ‘Town Hall Briefing’ attended by employees and held at the Jumeirah Beach Hotel’s conference centre.

Al Malik confirmed that David

Amjid Javaid Sheikh

Mohammed Al Habbai

Anderson has been appointed as the Group’s Chief Financial Officer, while Amjid Javaid Sheikh takes on the role of Senior Manager, heading Compliance and Risk Management.

Fareda Abdullah has been named Chief Operating Officer and Jayne O’Brien has been appointed Chief Marketing Officer. Arif Mubarak will assume the role of Chief Real Estate Officer and Dominic Pilkington has been appointed the Executive Director of Legal.

“I am confident our team of dedicated professionals will together lead this company through to its next phase of growth. The calibre and experience of our new corporate team will play a critical role in our journey to becoming a world-class organisation”, Al Malik said.

Mohammed Al Habbai has been appointed Chief Executive Officer of Dubailand. Billy Daly remains the Chief Executive Officer of Dubai Asset Management, while Saeed Bushalat continues as the Chief Executive Officer of Salwan LLC, DPG’s property management service company.

DPG has assembled a global team

Fareda Abdullah

Billy Daly

of experienced professionals. The new leadership collectively has a wealth of knowledge in international markets with multi-national companies.

David Anderson, previously at Tatweer, has specialised in revitalising audit teams and establishing a comprehensive, risk-based approach to finance with companies including Unilever, Cadbury Schweppes and Colt Telecom.

Before assuming her role of Chief Marketing Officer at Tatweer, Jayne O’Brien spent 18 years at British Airways in a number of high profile marketing roles, including General Manager, Global Brand and Marketing.

O’Brien spearheaded projects related to marketing communications, consumer media, internal communications, brand and product management, and loyalty programmes.

Billy Daly has developed wellhoned industry skills garnered from his previous experience in investment banking and with real estate developers Stiell Corporation.

Dominic Pilkington brings 18 years of industry experience in property and construction to his

Jayne O’Brien

Saeed Bushalat

new position with roles at Galadari & Associates and Freehills, one of Australia’s largest law firms. Arif Mubarak, formerly Vice-President at Bawadi, led the launch of the Hong Kong office of the Dubai Development and Investment authority; and Amjid Javid has over a decade of experience in the UK real estate and education sector with companies including Links Accounting Services and Simply Property Services.

The team also consists of a wide range of experience in local and regional markets. Fareda Abdullah is a skilled HR and operations professional having worked for Arab Bank and United Arab Emirates University. Mohammed Al Habbai, who previously held the position of Senior Vice President of Dubailand, is a veteran of the travel and tourism industry with 14 years at Emirates Airlines, responsible for the growth of regional and international markets; and Saeed Bushalat has vast experience in real estate, including leadership positions at Dubai Municipality, Tecom Zoning Authority and Idama Property Services.

For more information dial +9714-2221112 Or mail us at info@rera.gov.ae

www.rpdubai.com