Dubai Real Times Sept 09 by Sterling Publications

OFFICIAL MAGAZINE OF REAL ESTATE REGULATORY AGENCY

MANAGING EDITOR K Raveendran

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MANAGING DIRECTOR Sankaranarayanan

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GENERAL MANAGER Radhika Natu

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EDITOR

Linda Benbow

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Contributing Editors

Ambily Vijaykumar Vanit Sethi Manju Ramanan

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Creative Director

Harikumar PB

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Designer

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Sales and Marketing Product Manager

Vijayan G

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Account Manager

Peter Macwan

Circulation Supervisors

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Bringing in the professionals Recently, I was talking to a group of investors, who complained to me about the lack of professionalism in the real estate market. These investors were not just talking about estate agents, they also mentioned valuers. They all agreed with the important steps RERA is taking to regulate and license the real estate agents, as well as the training and education RERA is introducing to raise the professional standards of service providers.

peter@sterlingp.ae

I shared with these investors the positive news that the RERA team has finished the regulations and registry of the property appraisals as well as the standards and qualifications required by any valuer to work in Dubai.

biju@sterlingp.ae

The forthcoming introduction of a UAE appraisal book will govern all valuation reports submitted to financial institutions or to investors and will guarantee services are carried out professionally.

Accounts & Administration

Biju Varghese

Message from the CEO

We are positive that once we ensure only professionals are operating in this sector, our stakeholders will be satisfied and will be able to make better investment decisions.

Eng. Marwan Bin Ghalita

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CONTENTS 3 4 5 6 7 8

Taqyeem Leasing Personality News Techno Statistics

Code of measurement Rental evaluations Mohammed bin Hammad Distinguished performance Dubai Real Times is now online July figures

Interview

Highs and lows of the real estate business

Market Trends and Analysis

Renewed confidence House price index falls Owner behaviour delaying the inevitable Distressed properties, liquidity and honoured cheques

21 22

Event Comments

Cityscape Protecting the property purchaser The days of the super entrepreneurs are not over Balancing power between investor and developer Challenging times Liquidation and corporate strategic planning Ten ways to combat bad web PR

30 33

Under Construction Handovers

Fast progress Homes with a view Delivering promises Victory Heights

36 37

Launches Dubai Focus

Top banks invest in Downtown Jebel Ali Helping companies through the downturn

DUBAI REAL TIMES

Robotic valet parking

42 43 44 46 48

Infrastructure Environment Community Law and Regulations Profile

Briny sea Rallying against refuse Lending a hand Questions and Answers Hospitality designs

TAQYEEM

Code of Measurement Practice – UAE edition By Mohamad Khodr Al-Dah course the final tenants. At Taqyeem or the Real Estate Appraisal Centre (part of the Land Department and RERA) we have studied various ways to solve this. Looking outside the UAE for what other countries have done to address this we found that the UK’s Royal Institute of Chartered Surveyors (RICS) has provided its members with a specific and concise guidance note called the Code of Measuring Practice to help them measure areas in properties for various uses. In the spirit of continued cooperation between Taqyeem and RICS we have been working with them to publish a similar document targeting the UAE market explaining the various ways to measure areas depending on use. This document will be based on the UK Code of Measuring Practice and edited to suit the UAE market. For example, Gross External Area (GEA) is the area of a building measured externally at each floor. GEA can be used for building cost estimation. On the other hand, Gross Internal Area (GIA) is the area of a building measured to the internal face of the perimeter walls at each floor level. GIA can be used for the valuation of new homes or as a basis for service charge apportionments. There are various other definitions in the Code, such as Net Internal Area and specific guidance on retail, residential, and leisure types of properties. The document includes diagrams to assist the user on how to measure (see

diagram). We are currently finalising the wording of the document with RICS and are look forward to inviting various specialists in the UAE to com-

GROSS INTERNAL AREA

ment on the new Code before its publication. We hope intend to provide Arabic and English versions of the Code to real estate professionals in the UAE.

SHED (Excluded #5)

DUBAI REAL TIMES

ave you ever read a print ad for a property for rent or sale and wondered what exactly the quoted area includes? Can you compare an apartment quoted as 1,500 sqft by Estate Agent A with one, quoted, at 1,500 sqft by Estate Agent B? The most likely answer to this is “no”, since different parties measure area differently. For example, some people would add the balcony area to the internal area since it’s used exclusively by the tenant and costs money to build. However, others will argue against it because technically this is an external space. Similarly, there are cases for and against adding the area of allocated parking spaces and even communal areas such as lift lobbies to the internal area of a property. Understandably, this causes confusion in the market because areas are not easily comparable. Fortunately, when you are renting an apartment you will most probably decide on taking it after a visit, regardless of the area quoted. Similarly, when you buy a property, your bank will probably request a detailed survey of the property that would include dimensions of rooms. However, with the imminent introduction of new legislation regarding property valuation, inconsistent methods of measuring areas will cause problems for a multitude of sectors in real estate including but not limited to developers, banks, estate agents, and of

17 3

LEASING

Rental valuations By Linda Benbow

DUBAI REAL TIMES

t’s an outdoors job mainly, with plenty of walking around checking on the renting of apartments, villas, offices, commercial buildings, shops, warehouses and more. If it is rented out then Salem knows about it. Salem Khalifa Saif bin Fetais is the Head of Section – Evaluation - in the Real Estate Relations department. This is the section that double checks what is available for rent in the market by conducting surveys, checking the phone numbers listed on advertising boards posted on buildings, and asking questions about the actual prices that people pay to their landlord or estate agent for their homes and offices. He also has data on the many contracts registered at RERA and he goes out into the streets to talk to people, check papers, investigate newspaper advertisements, and much more, to ensure that correct data is put onto the RERA website, www.rpdubai.com - to help citizens do their ‘due diligence’ when

Salem Khalifa Saif bin Fetais

considering renting in Dubai. These facts also help landlords know how much they can, and can’t, charge for their real estate assets, as well as explaining what the current law does and does not allow. Collecting accurate data on a personal subject such as money is not always easy, and sometimes involves a ‘mystery shopper’ or ‘plainclothes’ mode of investigation. At other times information can be gathered from an employee or relative. “It can be difficult finding out exactly how much small shops in the older parts of the city pay their land-

lords,” explains Salem “but we have historical records which have been gathered for many years and, when some retailers show us their rental agreements, we can often work out what others in the area are, or should be, paying, and then we can go to them with figures for them to verifiy.” “It is a little easier with outlets in shopping malls, although not all mall owners are as forthcoming as they should be,” he continued. “We are working with MECSC, the Middle East Council of Shopping Centres, private mall owners, festival and event organisers.” “What should a person do if his landlord increases his rent by a large amount?” asks Salem. “He can go to the Rent Committee at Dubai Municipality, but first he should look into facts and figures to prepare his case. That is where the Rental Increase Calculator on the RERA website is a useful tool to use.” Salem explains how the Rental Increase Calculator works:

Log onto www.rpdubai.com and look on the ‘Welcome’ page for the Rental Increase Calculator. Click on the words and a new page will open with boxes for you to fill in with the area of Dubai you are interested in, type of property, how many bedrooms and the price you are currently paying. Click on the ‘Calculate rental increase’ bar and a comment in red will tell you what the average rent is for that particular area, and whether or not your rent can be increased by law. “Some people print the page, show it to their landlord and use the information to re-negotiate their annual renewal of tenancy contract,” explained bin Fetais. “It is a good tool for both the owner and tenant.” At the moment the calculator has three categories or properties: Residential, Commercial & Industrial, and Staff Accommodation. “Soon we hope to add Commercial Villas to that list” smiled Salem.

PERSONALITY

Enjoying his job

ohammed bin Hammad is a man who identifies himself by his achievements and nothing else. He finds within his work a joy that can’t be compared to any other, he is determined to participate in Dubai’s development by playing his part effectively at RERA. Mohammed is one of RERA’s leaders who have been given the challenge of regulating one of the most active real estate sectors in the world. He started his career in 2005 with Emaar as the Head of Real Estate Funding & Studies, where he managed it successfully until 2008. He then accepted a job offer at RERA which allows him to positively influence Dubai’s estate sector by leading the department of regulating real estate relationships by following best practices. This department is responsible for regulating rental activities, owners associations and the rental index in Dubai. Mohammed believes that RERA’s importance doesn’t only come from it being the regulator of the most active sector in Dubai’s economy but also by the trust that RERA gives to investors and the reputation that RERA creates for this sector on an international scale. Mohammed is fascinated by HH Sheikh Mohammed bin Rashed Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and his incredible

Mohammed bin Hammad

vision. He considers him as the ideal leader and learns a lot from him. He also believes that a lot of Dubai’s leaders learned from him by working side by side with him. He also believes that he would not be the same without learning from Sheikh Mohammed or his leadership students. When I asked him about obstacles hampering his success he answers that people who want

to succeed will create their own atmosphere, and a leader should be always surrounded by productive and positive people, after all these are the elements of a successful working team. He also believes that ego and pride are the real obstacles facing leaders; and he mentioned that he had an old friend who always thought that he was above everyone at work and that made him refuse to take

advice from his team members. This person is in the same position that he has been in for a very long time and has lost a lot of good opportunities because of his behaviour. He added that this person created his own monster and nothing stood between him and success except his ego. I asked him about his strengths and weaknesses which made him confess that his loyalty to his work made him forget his priorities outside of work which affected his social life. His best quality, as one of his friends said, is his ability to share all decisions with his team and that definitely helped make his team one of the best in RERA. Between work and a very busy social life he admitted that family is the point of living and his first motivation is to work hard and make them proud. He also gives the credit of his successful career to his parents who guided him through his early life which has made him the man he is now. He also believes that his wife’s consideration for his work and many activities let him focus on his career and goals and that his children always can make him see the best in the future. Despite all the many commitments that he has, he can always find the time to watch his favourite sports, like football or car racing. Mohammed loves travelling and relaxing at his farm but, ultimately, his real joy is working for Dubai, his dream city, his sweet home.

DUBAI REAL TIMES

By Amal Abdul Rahim Al Sahlawi

RERA NEWS

Distinguished performances

DUBAI REAL TIMES

As part of an initiative by Dubai Land Department, awards were presented recently to extra-ordinary departments carrying out their duties within the governance of excellence. Dalati Hamdan bin Juma, Deputy Director General of the Land Department presented a prize to Sami Alsoiei, the winner of the month in August He further explained that the goals for the nominations was measured by several criteria ranging from the nomination by colleagues, the commitment towards career, a departments’ pride and commitment in achieving the objectives of its various sections. The awards encourage staff to strengthen and increase communication between departments and business development by focusing on the results of each job done. The way that real estate auctions have been carried out by The Escrow Department of RERA has earned RERA an award for the past three months.

“Why do you keep it?” was the question being asked last month by ten government departments: Dubai Land Department, Department of Economic Development, Dubai Municipality, Department of Tourism and Commerce Marketing, Dubai Courts, Public Prosecutor’s Office, Dubai Police, Naturalization and Residency Department, Roads and Transport Authority plus Dubai Electricity and Water Authority. A meeting was held during August to discuss collection and distribution methods.

This referred to a charity campaign held in the lead up to Ramadan during which residents were asked to donate previously owned, good quality, personal clothing and household items for distribution to the needy. This traditional charitable deed has its roots in UAE society with its Islamic and ancient Arab customs. As well as goods, the government seeks to provide services such as educational, health, cultural, social, etc, to all levels of society, while individuals and institutions contribute whatever they can.

TECHNO

Dubai Real Times e-mag By Ali Al Shamsi is a particular article or law that you want to read up about, there is no longer a need to borrow old copies from old friends â&#x20AC;&#x201C; just log onto the RERA website and browse through back issues of the informative magazine. These e-books are brought to the

web using eAwraq technology to allow visitors to the site to read RERA selected literature, starting with Dubai Real Times magazine. Unlike using .pdf files, readers do not need to wait for the full file to download; neither will they need to install any third party software to read the e-

books. RERA plans to publish other literature that the real estate sector might be interested in, as and when it becomes available. Now you can read DRT wherever, whenever and share it with whoever you like.

DUBAI REAL TIMES

he official RERA website:www.rpdubai.com, has introduced a new page on its site for eBooks such as the monthly Dubai Real Times magazine (DRT), with both current and previous issues already uploaded and waiting to be read. So, if there

STATISTICS

Transactions in August â&#x20AC;&#x2122;09 Total Transactions, Value of Sales & Mortgages for the month of August, 2009 were worth AED 1,6161 Million Land Transactions Total number of sales Transactions of the districts was 521 with a total value of transactions at AED 12,889 Million for 6,439 thousand Sq.ft. Jabal Ali had the highest No. of Sales Transactions, which was 167 sales. The highest value of sales was achieved by Jabal Ali district with 10,596 Million AED. The largest area size was in Jabal Ali district with 1,906 thousand Sq.ft.

Total No. of Land Sales Transactions - Top 10

Land Transactions Summary: Total No. Of Sales

Value (M,AED)

Sales

521

12,889

6,439

Mortgage

348

1,693

4,642

Total Area (Thousand, Sq.ft)

Apartments Transactions Total Number of Sales Transactions of the districts was 1,171 with a total value of Transactions at AED 1,070 Million for 1,254 thousand Sq.ft. Warsan First had the highest No. of Sales, which was 305 Sale Transactions. The highest value of Sales was achieved by Dubai Marina district with 286 Million AED. The largest area size was in Dubai Marina district with 308 thousand Sq.ft.

Total No. of Flat Sales Transactions

Flats Transactions Summary:

Total No. Of Sales

Value (M,AED)

1,171

1,070

1,254

342

331

283,740

Sales Mortgage

Total Area (Thousand, Sq.ft)

DUBAI REAL TIMES

Villa Transactions

Total Number of Mortgage Transactions of the districts was 74 with a total value of transactions at 119 Million AED for 217 thousand Sq.ft. Emirates Hill 3rd had the highest No. of Sales, which was 48 Sales Transactions. The highest value of Sales was achieved by Emirates Hill 3rd district with 66 Million AED. The largest area size was in Emirates Hill 3rd district with 142 thousand Sq.ft. Villa Transactions Summary: Total No. Of Sales

Value (M,AED)

Sales

119

217

Mortgage

123

Total Area (Thousand, Sq.ft)

Total No. of Villa Sales Transactions

20533Rera315x230.indd 1

8/23/09 3:19:31 PM

INTERVIEW

Education gets real Dubai Real Estate Institute launches its Real Estate Master’s course offering one of its kind studies of the sector in the Middle East Ambily Vijaykumar

DUBAI REAL TIMES

ith an aim to create a generation of real estate professionals in the market, the Dubai Real Estate Institute, located at Dubai Healthcare City, recently launched its two year exhaustive Master’s course, called Real Estate Masters, a first of its kind course for the sector in the Middle East. The course begins in January 2010 and has been launched in conjunction with Bond University, Australia that will be providing its expertise in the form of faculty who will be coming to Dubai to teach. Apart from the Australian faculty, professors from Dubai will be imparting their expertise to students for whom the course has been customised to suit the local market. The aim of the course is also to increase the understanding of the real estate sector among the local population of the UAE but, the course is open for all. The Master’s degree offers twelve courses that cover diverse subjects like facility management, valuation, developmental economics, management of construction projects, real estate investments etc. Installment facility, loan facility as well as corporate sponsorship of students will all be accepted by the institute for the course. There is also an early bird discount for those who enroll before October 20, 2009. Elaborating on the advantage of doing the Master’s, Mahmoud Hesham Al Burai, Acting Managing Director, Dubai Real Estate Institute

Mahmoud Hesham Al Burai

(DREI), says, “You rarely find professionals who have a degree in real estate. So the course is an opportunity to get a masters degree while working. The good thing also is that students will get to learn from real life examples that have been integrated into the study as well as to practice with leading real estate companies in Dubai. The course is also accredited by RICS (Royal Institute of Chartered Surveyors in the UK).” Mahmoud Al Burai is also Director of Real Estate Sector Development Department of RERA under which the DREI falls. The course is being designed to serve the purpose of providing practical training with regard to the changing real estate scenario in Dubai. Hend Al Marri, Real Estate Professional Development Officer at DREI says that with their experience at

having worked with RERA, they are better positioned to “identify the gaps in the market”. The Master’s course has been designed to help fill in the blanks. Assisting DREI with its efforts is also the research wing of RERA that is stationed at the institute. “They aid us in designing the course with the help of real life examples as well as insight into laws and regulations. Even students can gain from their expertise once the course commences,” says Mahmoud Hesham Al Burai. Though the total strength of students that DREI is targeting for its January course is 30, the institute is willing to accommodate up to 60 students if the demand is high. Since RERA took over the management of the Dubai Real Estate Institute (DREI) a few months back, it has been imparting short term

brokers’ training courses that are now compulsory for brokers wanting to renew their license. So far over 500 participants, mostly brokers have taken advantage of the short term course that lasts two days. “We have plans to spread out the short term course over four days in the future, for the advantage of our participants,” says Hend Al Marri . This is phase one of the process that covers the legal environment, RERA regulations, procedures, code of ethics standard forms for brokers and owners associations among others. DREI also plans to launch phase two of the course by the end of the year covering five subjects including finance, marketing, and real estate fundamentals among others. Continuous education of brokers is the thrust. The institute also organised courses targeting facility managers as well as developers recently. There are also plans to launch a two week intensive facility management course, once RERA gives directives making the course compulsory for owners associations. DREI began a property development feasibility analysis course last month and they also plan to hold the course again this November. “By next year we will have the graduate diploma which is around two months long, as well as business analysis for broker offices. There are also plans for valuation courses that will be short certificate courses offered by Bond University,” Hend Al Marri explains.

INTERVIEW

Highs and lows of the real estate trade By Linda Benbow

How long have you been in Dubai? 29 years and always in property. What was the property market like then? Very different; Arenco and the Rulers Office had the largest portfolios of property. Leasing and property management were the core businesses. Were you surprised when the change in freehold ownership was announced in Dubai? Yes, very surprised. How did it affect Asteco initially? The company had been working on The Palm, Jumeirah for a number of years before it was brought to the market. We were instrumental in the sale of the first plots and greatly enjoyed the experience. There have been many changes and new laws since then – what changes/laws would you like to see soon – and why? The Strata/Home Owners association law needs to be enacted as a high priority.

Elaine Jones

What was the idea behind forming Dubai Property Society (or Dubai Property Group, as it was first known)? Dubai Property Group (DPG) was initiated by Ahmed Matrooshi in the late 1980's with a view to bringing ethics and standards to the leasing and property management business. Arenco - Asteco - Better Homes - Cluttons and Union Properties were invited by Ahmed, who at that time was the Director General of Dubai Development Board, to form the founding committee. He started talking to a software company to set up a portal for the listing of all rental properties. He invited DPG to attend the presentations from the IT company and the plan was that we were going to have a central portal where everyone was going to list their properties for rent, so that anybody who was interested in finding a property would go there

to search for one. This was the late 1990s and what we have to appreciate from all of this is that Ahmad Matrooshi was very innovative because this was actually before its time. Had we, perhaps, understood it all better, we would all have embraced it and it could have been more successful than it was. Ahmad used to get us together for meetings, but we always talked about things such as landlord and tenant law, standard lease agreements and morals. We found the meetings useful because it was a good opportunity to really talk about what was happening in the market and we were able to take get a good reading of it because, between us, we probably had the lion’s share of the market, especially Arenco and Union Properties. And Dubai Development Board too, of course, because that was the association where Nationals who didn’t have enough money to go forward with their projects would get assistance from the government in managing the construction and then rental of their property/ies. We used Al Tamimi & Associates for legal matters, they were very helpful in writing our Code of Ethics and suchlike. Then, when property was launched for sale, Dubai Property Group (which has since changed its name to Dubai Property Society (DPS)) became very, very important. And, now that RERA has been established, it will take over a lot of the aims which DPS originally had.

RERA, of course, has the support of everyone in the industry and, as it is part of the government, it has the power to enact laws and do a lot more things. What happened when DPG was first set up, was it difficult to attract others to join? We had an immediate positive response from the major real estate companies in Dubai at that time. However, the membership really grew after freehold property was available for sale to non AGCC Nationals in 2002. Shortly after that Adel Lootah, who is an entrepreneurial, networking type of person started organising network events, forums and focused on the membership. Originally, those of us who were on the initial board were interested in the nuts and bolts and legalities of the trade, but then the situation changed and there was a need to get things legalised, processes set down, matters discussed and formalise the industry. We now look to RERA to do these things. Marwan bin Ghalita, CEO, Real Estate Regulatory Agency, now has his ‘verticals’, his objectives, in place, i.e. valuation, sales brokerage, leasing, property management and strata title management. We are working with him, endeavouring to get everyone together to deal with these matters. Buyers, especially international ones, seemed to like to discover that there is a property group in Dubai,

DUBAI REAL TIMES

laine Jones, CEO of Asteco Property Management, has seen a lot of changes in her chosen career and talks about her memories of the real estate industry during the past 29 years.

11 8

Early rendering of The Palm Jumeirah

which is useful to them when checking on prospective sales. Now, of course, they can check with RERA, the official body where the trade has to register prior to carrying out its duties. RERA ensures the knowledge and competence of those that engage in the trade; we, real estate brokers, have to register our staff at the police station prior to obtaining a Brokers Card for each of them. We have to take an exam to make sure that we all know and understand Dubai’s real estate laws. How has the market evolved and changed? What was lacking from most people who bought in the early days was ‘due diligence’. There was so much excitement that this never entered people’s minds because they just

DUBAI REAL TIMES

Dubai Marina

wanted to secure a plot on The Palm (Jumeirah). Before the Palm was launched, there were 99 year leases on offer to expatriates: six towers at Dubai Marina and properties at Emirates Hills. What was really significant is that when plots for properties on The Palm were launched, it happened at the same time as the announcement that foreigners would be allowed to buy freehold. Simultaneously. The opportunity to own something on this iconic project – a huge manmade island in the shape of a palm tree – sent out signals to people who said to themselves “we want a bit of this” – especially as the initial prices were extremely sensible, following our extensive research. The concept of foreigners buying freehold on The Palm, made people re-look at

the 99 year leases for foreigners that were previously a real estate ‘first’ in Dubai. Suddenly there was a bigger market, for sales especially. A team of eight of us from this company set up an office at The Palm to handle sales. This was in the days before Nakheel was set up. We sold all the plots we had to offer and, of all the cheques we collected, only one was returned and that was because the numbers and words did not match up. The concerned buyer returned to the office immediately to correct it, he didn’t want to lose the chance to own here. One man came late and used threatening behaviour with a paper-knife as he said he “had to own something here”. I told him that if that was the way he behaved then he absolutely was not the kind of

person that we wanted living there! No due diligence (checking on plans, property, etc prior to purchase) was done because of the excitement. Also, it wasn’t possible because, in those days, who would you go to? The Palm, for example, is all reclaimed land, and it wasn’t actually all there when it was first put out for sale. So it certainly wasn’t registered as land plots. For Emirates Hills, Emaar was created to be the master developer, but there was no mechanism to ring up the company and find out who owned a particular plot and whether he was the rightful owner who could onward sell it. Now, with RERA’s pre-registration, you can go to them and say “I want to buy this property from this man, is he the rightful owner, is it free from commitment and is he entitled to sell it to me?” Also, with RERA’s registration process, they can confirm that the owner has a No Objection Certicifate (NOC) which is only given after the owner paid all his monies due to the developer, etc. In the mid 80’s there were horror stories of a man who was renting villas out to people, taking their money and giving them keys – the villas weren’t his to rent out in the first place! At least now, you can go to a qualified broker, like Asteco, and can be

assured that the property has been through the system, is registered as a property available for rent, and does actually belong to the landlord stated on the form. Registration is done on the on-line Ijari system which RERA has on its website for professionals. Ownership can be complicated. If, for example, someone has inherited the property from their father, under Sharia law it doesn’t necessarily mean that only one person has inherited. You, as the prospective renter, should know whether you are dealing with the right heir or not, otherwise there could be complications later. By using the Ijari system, the plot number, utility numbers, etc verify who the owner(s) is. This system is linked up to other government data and can be seamlessly checked. Even if a property has not been registered, you can still go to RERA and ask if they know anything about it, and the likelihood is that they will know something about the developer or other useful information which they can tell you. To me, the huge advantage for prospective clients, is the ability nowadays to do due diligence. The registration of brokers is something that Dubai Property Society wanted right from the start. RERA has enacted many of the ideals and aims of the original DPS and I think that this is wonderful and all for the good of the industry. Not everything has been done yet, but

these things take time, and it is good to see that, behind the scenes, work is progressing on many good ideas. A lot has already been done in a short time. RERA are dealing with their various ‘verticals’ by regulating training and providing qualifications to individuals, and with the soon-to-beannounced strata title management. It means that you know the calibre of the person you are dealing with, plus the individual and the organisation are accountable, as RERA has the ability to take both to task - and this will clean up the industry. RERA holds many workshops; we send the valuations staff to the relevant ones, management department to the strata ones, and the leasing staff to the leasing ones, etc. I personally attend some of these, just to see what is being taught and to update myself. The IT department at RERA were very helpful when the company decided to make its computer system similar to the Ijari format so that information need only be typed in once. We modified our system to be compatible with theirs – it took time, but is worth it. How Asteco has grown and changed? Asteco will be 25 years old on 8th March 2010. We have enjoyed a steady growth and the business is doing well. Everything changed again late last year, with the global financial situation, and now everything

Villa at Emirates Hills

has gone back to what it was before. So, where management has always been our core business, anyway; with the changes in the market, which, actually, will now become a mature market; and whereas for a few years we enjoyed people coming in to buy properties off plan - in quantities – we will now revert back to, what in UK is called an estate agent. There will still be project sales, slower than before but still there, for the next two years or so. Most developers who are not constructing new projects are finishing what they have and are holding inventory. The volume of transactions that we saw in the past few years will not happen again. That is fine. Companies were lucky enough to make extra cash when the going was good but will now revert to the smaller, but sufficient, profits they made before. We have accepted that fact. Now the concentration will be on property management, or strata management, together with home owners associations. Asteco has other business plans which we will be launching next year. Have any strange things happened to you in the past? Many years ago, during the early 1980s, we had a phone call from a tenant who complained about a very unpleasant smell. We called the police to investigate and it turned out to be food rotting in a freezer after holidaying tenants had turned off their

electricity. There was a dead body once, in the bath in one of our vacant villas in Jumeirah. I had the keys to the villa, so I was the one who received a phone call from the police asking me to open up the doors. In my early days here, I have collected clients from outside a supermarket to take them to view properties, only to discover that they were not the ones that I was supposed to show around. I have heard some strange reasons from clients who are late paying their rents. During the 1980s one man insisted that he couldn’t pay because of the hijack of a plane in Korea. I could never work out what he meant. That was his story and he was sticking to it. What are your views on the city’s future? Dubai has seen many changes during the long period that I have lived here. It survived the Iran-Iraq war in 1981, which affected trading very badly – and Dubai is a trading city. If it can survive that, and the Iraq-Kuwait war, plus the far eastern problems, 9/11 and more, then it can survive a global financial crisis, surely. Dubai has an incredible resilience and an ability to find a new opportunity. Asteco now has offices throughout the emirates as well as in Jordan and Qatar, which gives us a chance to see how different markets in the region are faring. The UAE is not alone. It’s a good place to be.

DUBAI REAL TIMES

Villas on one of the fronds of The Palm Jumeirah

MARKET TRENDS & ANALYSIS

Renewed confidence Dubai residential market showing signs of stabilisation, according to Jones Lang LaSalle MENA’s Q2 2009 Dubai Residential Market Snapshot

he Dubai residential real estate market is showing signs of renewed confidence as transactional volumes remained stable between Q1 2009 and Q2 2009 according to Jones Lang LaSalle MENA’s Q2 2009 Dubai Residential Market Snapshot. While average prices have continued to fall (by around 24 per cent in Q2), the rate of decline is now falling and there has been a convergence between asking and achieved prices. There has also a lower rate of rental decline than before, with the average rent for two bedroom apartments falling by 15 per cent in Q2, compared with a 22 per cent decline in Q1/2009. New residential supply continues, with 22,400 residential units ex-

“While there have been a large number of projects delayed or cancelled, there remains a significant level of new supply, with around 22,400 residential units expected to be completed across Dubai in 2009”

pected to be handed over in 2009, in spite of over $24 billion worth of residential projects being put on hold or cancelled. On the demand front, transactional volume remained stable between Q1 2009 and Q2 2009 in comparison to the 58 per cent decrease between Q2 2008 and Q2 2009.

Craig Plumb, Head of Research at Jones Lang LaSalle MENA added: “The stabilisation of transactional volumes is an important indicator, which reflects improved confidence among investors. The narrowing gap between asking prices and achieved prices is a further indication that the market is beginning to stabilise,

albeit at significantly lower levels of pricing than those seen earlier in the year.” “While there have been a large number of projects delayed or cancelled, there remains a significant level of new supply, with around 22,400 residential units expected to be completed across Dubai in 2009”.

DUBAI REAL TIMES

Key Takeaways

Residential Supply

• $24 billion worth of residential projects have either been cancelled or put on hold • 22,400 units expected to be handed over in 2009

Transaction levels

• Transactional volume decreased by 58% between Q2 2008 and Q2 2009 • Transactional volume remained stable between Q1 2009 and Q2 2009

Sales Performance

• Asking prices have fallen 49% from peak in Q3 2008, with achieved prices down by 37% • Rate of decline has slowed in Q2/2009 reflecting signs of stabilisation • Since Q2 2008, achived prices have averaged 20% lower on average than asking prices, but this gap has narrowed to 7% in Q2/2009

Rental Performance

• Rents declined by an average of 35% since Q4 2008 • Rents declined by an average of 18% since Q1 2009 • Rents have decreased more in villas than apartments

MARKET TRENDS & ANALYSIS

Dubai office market regains competitive edge Prime Office Rentals in Major Markets, Q2 2009

MEA Office Weather Map

tractive deals available in a range of newly completed buildings across Dubai. This has created a situation where tenants can take advantage of tomorrow’s prices today and negotiate rents below current asking levels”. The average prime office rentals in Dubai are now below those in the major international office centres of London, Paris, Hong Kong, Mumbai and Moscow. Hammond further adds: “The market is currently characterised

by three owner groups: investors/ developers, strata title owners and distressed tenants. We continue to see investors/developers keeping rents at a sustainable level to allow for development instead of chasing the market down. There are, however, fewer tenants willing to commit at these rental levels. Tenant sublet space was a new phenomenon to Dubai at the end of last year as additional expansion space fitted out by tenants was put onto the market. This group is keen

to cover costs and are not looking to achieve the best rents. As a result of this and because a fitout is generally already in place, this space has been the first to be let. The difficult group to track are the strata owners, many of whom are distressed and do not want to hold office space for a long period of time. This group are cutting rents to try to under bid any competitors and it is predominantly this group that are driving rents down as they look for occupancy at any level”.

DUBAI REAL TIMES

he Dubai commercial property market is becoming more competitive on a global scale as falling rents and increased vacancy make the city more attractive to potential tenants, according to Jones Lang LaSalle MENA’s Q2 2009 Dubai Office Market Snapshot. Office rents across Dubai continue to decline but at a lower rate than before. Rental decline in Q2 2009 averaged 25 per cent compared to a 45 per cent decline in Q1 2009. Office rents for Grade A space across Dubai (excluding the DIFC) now average Dh225 per square feet annum. This is in line with those seen in mid 2007 and is similar to rental levels in other major commercial centres globally, making Dubai more competitive moving forward. A further decline in average rents is likely, due to increasing levels of new supply. By the end of 2011, 25 million square feet of additional office space is forecast to enter the market which will increase the vacancy rate and place further downward pressure on average rentals. In Q2 2009, the vacancy rate has increased to around 25 per cent in the face of more than 2,000,000 square feet of additional space entering the market in a period of subdued leasing demand. The global economic downturn has certainly been a major factor in reducing the level of demand as many tenants have either downsized, delayed their expansion plans or wait to see where rents may settle. Matthew Hammond, Head of Agency at Jones Lang LaSalle MENA added: “The market has swung in favour of tenants over the past six months and there are some very at-

17 15

MARKET TRENDS & ANALYSIS

Owner behaviour delaying the inevitable

DUBAI REAL TIMES

wner behaviour is preventing the leasing market from reaching a price floor, but they are just delaying the inevitable, indicates Landmark Advisory’s Q309 Dubai and Abu Dhabi Real Estate Report. In an oversupplied market like Dubai, price floors are consumer driven. Jesse Downs, Landmark Advisory’s Director of Research and Advisory Services, said “landlords are opting out of the market because of lower rents creating a temporary respite in the price correction process. This short-term decline in supply is a market distortion, which will end. Real prices will be determined by what Dubai residents are willing to pay.” The Landmark Advisory report also investigates new macro-economic factors affecting Dubai’s sales market. “With mortgage rates currently averaging 8.5 -9 per cent, and construction financing rates at 7-8 per cent, there is a systematic imbalance. Residential demand is restricted by high borrowing costs and credit scarcity, while building is incentivized by lower capital costs on construction loans.” Ms. Downs went on to say that “disjointed lending practices can widen the supply-demand gap in Dubai.”

Jesse Downs

In terms of sale prices and rents, Dubai’s average sale prices for villas and apartments declined 24 per cent and 17 per cent respectively during the second quarter of 2009. Sales demand was stronger for villas, which accounted for 73 per cent of all residential sales. During Q209, Dubai’s leasing market saw average villa rents fall 19 per cent to Dh220,350 while average apartment rents declined 23 per cent to Dh129,900. Despite falling rents, transaction volumes increased significantly for both villas and apartments, by 25 per cent and 20 per cent, respectively. Commenting on this, Ms. Downs said: “relocations from Abu Dhabi, Sharjah, and within Dubai are the primary factors driving leasing demand.” Dubai apartment rental trends

showed a significant spike in demand for International City. During Q109, International City accounted for only 2 per cent of all apartment rentals, but in Q2, it registered as many leases as JLT, the second most popular area for apartment rentals after Dubai Marina. Ms. Downs explained that “increased demand was driven by existing tenants within International City upgrading to larger units there.” Turning to Abu Dhabi sales, average residential listing prices regained some stability in Q209. However, secondary market asked prices fell 11 per cent for apartments and 8 per cent for villas. Over the next quarter, sale prices will start stabilising and are not likely to suffer significant decline. “Furthermore, the delivery

of first phases will likely encourage some price recovery for those units as they transition from the off-plan market to end-users,” continued Ms. Downs. The commercial property prices in both cities are struggling. Office space requirements for most companies already in the UAE are either static or shrinking. For further information follow Landmark on twitter @LandmarkDubai.

MARKET TRENDS & ANALYSIS // FINANCIAL ROUNDUP

Distressed properties, liquidity and honoured cheques pany will offer honest, professional career advice to job searchers. Clients looking to make appointments can expect assistance with recruitment, salary benchmarking, organisational structure, job descriptions and anything relating to employment in the region. Propertyfinder.ae, a UAE realestate website, has announced that Chief Executive Michael Lahyani has acquired 51 per cent of the company which was formerly owned by the REA Group of Australia (ASX: REA, realestat.com. au Ltd). The move means that the Dubai-based entrepreneur now wholly owns the leading property portal. Under the terms of the acquisition, propertyfinder.ae will retain its widely recognised brand and URL and continue to service

Michael Lahyani

the region’s leading real estate developers and brokers. According to Google Analytic, propertyfinder.ae currently receives 100,000 unique visitors to the site per month viewing over one million property pages each month.

DUBAI REAL TIMES

distressed property is de- Brokerage and Editor in Chief credits will provide in-depth infined as a property that of the Harbor Report. According sight into the cheque-honouring is under a foreclosure to the recent quarterly report the and payment habits of existing and order or is advertised for economic crisis has forced banks potential tenants in the UAE. Demand for property managesale by its mortgagee; and it usually to shore up their capital to the fetches a price that is below its mar- extent that now, according to the ment professionals within the reket value. Good news indeed for UAE Central Bank, capital in UAE gional real estate sector to rise in those who have the money to buy. Banks in May topped Dh200 billion. 2009, according to Macdonald But what about those who are still The report also touches upon the & Company, a recruitment condreaming of entering the realms reasons behind the drastic decrease sultancy focusing solely on the of ownership and haven’t enough in credit availability, signs that property industry. The company cash to do so? Is it worth them liquidity is starting to slowly flow announced that it will be launchhoping that a bank will lend money into markets and the importance ing the ‘Salary, Rewards and to them in the form of a mortgage? of the implementation of Credit Attitudes Survey 2009’ for the Middle East real estate sector at the A recent survey holds out hope for Information Law. candidates. Leading real estate firms Land- upcoming ‘Cityscape Dubai 2009’. Mayfair Wealth Manage- mark Properties and New Eng- Designed to give both employers ment (MWM), financial and invest- land International Real Estate are and employees a transparent overment advisory services providers integrating Emcredit’s cheque- view of the current job market scebased in the Cayman Islands, has reporting solution, emBounce, into nario, this year’s study will focus on launched ‘Real Estate Musharakah their business processes further the correction of salaries and packNotes’ (REMNotes), a Shariah-com- enhancing their risk management ages in the past 12 months, how pliant distressed property fund. Amidst the intensive reshaping of the property market in the face of the global financial crisis, REMNotes takes advantage of the correction in prices by allowing investors to participate in the acquisition of strategically sourced undervalued properties in the UAE. The fund is expected to deliver an annual return of 12 to 15 per cent by way of steady leasing or rental income throughout the tenure of the notes, at their best prices. In addition, REMNotes mitigates the risk of property price movements by diversifying the prop- “The availability of accurate and timely information on customer’s credit patterns helps business make decisions accordingly,” said Zaid Kamhawi, Chief erties to be acquired in terms of Business Officer, Emcredit the developers, the location of the project and type of units. UAE banks are in a strong practices. This announcement was redundancies have affected proposition to recommence lending made by Emcredit, the UAE’s first fessionals and the talent redistributo real estate investors according to government-backed credit infor- tion witnessed across the region. Mr. Mohanad Al Wadiya, Managing mation services company. Under During the exhibition, consulDirector of Harbor Real Estate the terms of the agreements Em- tants from Macdonald and Com-

17 5

MARKET TRENDS & ANALYSIS

House Price Index falls Rate of decline in residential prices decelerates

DUBAI REAL TIMES

olliers International, the global real estate consultancy, released its Dubai House Price Index for Q2 2009 recently, which indicates a nine per cent decline in the overall value of residential properties between April and June 2009. The Index, compiled using mortgage transaction data from financial institutions accounting for 60 per cent of the mortgage market in Dubai, also demonstrates a 48 per cent year-on-year decline between Q2 2008 and Q2 2009. At the end of Q2 2009 property prices in the Emirate had returned to approximately the same level as those recorded in Q2 2007, and were down 50 per cent from their peak in Q3 2008. The volume of market transactions increased by 50 per cent during Q2 2009 over the previous quarter. The increase in transactions is attributed to the gradual expansion of finance options to purchasers during the period, mainly for completed properties, or properties very near completion, and primarily among first tier developments or master plans. The decline in the value of the Index is due to a number of interrelated factors. The availability of finance, expatriate job security concerns and transparency about delays and postponements have continued to hamper the market’s recovery. However, the rate of decline of residential capital asset values during Q2 2009 decelerated dramatically from 42 per cent in Q1 2009 to 9 per cent in Q2 2009.

Ian Albert

During Q1 2009 Colliers highlighted the increased importance of the professional investor and the existence of the price/yield gap. This quarter’s House Price Index indicates that while this gap still exists, it has narrowed as prices move towards greater stabilisation. Professional investors were joined as purchasers in the market by a limited number of end users who were able to secure finance against high-end villas in prime locations in the emirate. Ian Albert, Regional Director, Colliers International, said: “After a significant decline in the first three months of the year, the market witnessed a deceleration in the rate of decline in residential prices in the second quarter. Thankfully, the magnitude of the decline that occurred in Q1 2009 was not, and is now very unlikely to be repeated.”

Commenting on future expectations Albert added: “In the coming months the market will be searching for further evidence of market stabilisation as we draw nearer to the bottom of market prices. However, the results of the third quarter are traditionally distorted by the summer holidays and the holy month of Ramadan, and we would expect Q4 2009 to be a better indicator of future trends.” The House Price Index analyses the trends for prices achieved for completed properties and properties still un-

der construction. When the Burj Dubai development was included in the results, the Index indicates that completed properties fell 16 per cent and properties under construction fell 3 per cent. Excluding the Burj Dubai development, completed properties fell 19 per cent and properties under construction declined one per cent. The lower rate of decline for properties under construction is attributable to the fact that bank finance for properties more than six months from completion has largely been withdrawn, and therefore there is very little or no data against which to note the change in actual prices.

Key findings: • Decline in the overall index of 9 per cent between Q1 2009 and Q2 2009. • Year-on-year decline of 48 per cent between Q2 2008 and Q2 2009. • Blended average rate for residential property in Q2 2009 down from Dh1,037/ft² (Dh11,162/m2) in Q1 2009 to Dh949/ft² (Dh10,215/m2). • Apartment prices decreased by 3 per cent in Q2 2009 compared to Q1 2009. • Villa prices decreased by 18 per cent in Q2 2009 compared to Q1 2009. • Townhouse prices declined by 11 per cent in Q2 2009 compared to Q1 2009. • Prices in Q2 2009 declined 50 per cent from the index peak recorded in Q3 2008. • The number of transactions increased 50 per cent in Q2 2009 compared to Q1 2009. • Apartments constituted 42 per cent of the total transactions, declining from 55 per cent in Q1 2009. • Villas constituted 41 per cent of the total transactions, increasing from 39 per cent in Q1 2009. • Townhouses constituted 17 per cent of the total transactions, increasing 7 per cent from Q1 2009.

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EVENT

Cityscape paving the way for Dubai’s next chapter

orldwide economic upheaval combined with a radical shakeup in the regional investment landscape promise to make Cityscape Dubai 2009 (5-8 October) the most important real estate event in Dubai’s history, according to leading industry experts. “With tumultuous international circumstances having taken their toll on the Middle East’s most liberalised economy, now is the time to focus on reality and the opportunities that still exist in this most dynamic of Gulf cities,” says scholar, investor and author Dr Christopher M. Davidson. “There’s no escape from the fact that this year we will be meeting under very different circumstances,” added Davidson author of Dubai: The Vulnerability of Success, and a keynote speaker at the Cityscape Dubai conference. “We are living in a fast changing world, the very foundations of which have been rocked and will continue to be buffeted by unprecedented economic turbulence.” Times of volatility will eventually be over, Davidson believes. “The growth and vision that has accompanied the rise of this astonishing city is nothing short of phenomenal,” he said. “And that same energy

Donald Trump Junior is to deliver the keynote presentation at Cityscape Dubai 2009 addressing a wide range of real estate issues, including his forecast for recovery and existing market opportunities

will find a way forward, paving the way for Dubai’s next chapter.” Cityscape Dubai 2009, now in its eighth year and part of the largest business-to-business real estate investment and development brand in the world, encompasses a major exhibition and a series of conferences taking place at the Dubai International Exhibition and Convention Centre. Davidson will give a keynote address – 2010: Can Dubai weather the storm? – on the opening day of the main Cityscape Dubai conference. The speaker line-up for the conference is unrivalled in the Mid-

dle East, bringing together some of the world’s most powerful investors, developers and economists for five days of discussion on the global real estate market. Included among them is Donald Trump Jnr., President of the Trump Organisation on Dubai: Why it is a long term investment for us. In 2008, Cityscape Dubai attracted 80,297 participants and 954 exhibitors. “Clearly, while it is still far too early to make accurate forecasts, we are not anticipating the same level of participation,” said Chris Speller, Cityscape Group Director. “Like the rest of the world,

the real estate investment business in Dubai and the region has had a reality check. We are now seeing the emergence of more measured, more transparent business models. While considered decisions may take away some of the market dynamism, that is probably no bad thing at this present time.” “With a return to real market values Cityscape Dubai will return to its roots free from amateur investors and speculators. As such it will be truly business-to-business and the definitive platform with the greatest influence on the real estate industry,” he added. Alongside the main event is the World Architectural Congress from 5 – 7 October at which some of the world’s most respected architects and visionaries will share their experiences and outlook on architecture in a global recession. The Cityscape Dubai Facilities and Asset Management Conference is on 4 – 8 October attracting delegates in the design, build and post-occupancy of buildings. There will also be a Cityscape Dubai ‘Green Day’ on 7 October which will include green communities, green construction methods, energy saving issues, financing green buildings, regulations, facilities management, whole life costs and new materials and products.

DUBAI REAL TIMES

Dubai’s reality check leads to more transparent business models and considered decisions as new real estate era beckons, says Cityscape Dubai organiser

COMMENTS

The days of the super entrepreneurs are not over The Real Estate Industry is full of Super Entrepreneurs, people who act despite their fear. This is a place where people can fall and bounce back, where not all ventures work and where every failed risk is a valuable lesson to add to the skills for the future. After all, great sales people are known for their resilience and persistence. Here Cecilia Reinaldo, Managing Director of Fine & Country Middle East, outlines simple rules about regaining professionalism in the industry and embracing the pride in the estate agency business

DUBAI REAL TIMES

make no secret of my disappointment of the low level of representation that the estate agency market had in the UAE in the past few years – whilst the recession is blamed for the departure of some 1,000 estate agents, the industry has returned to the normal figures of participants of 300 estate agents, most probably the same people who were in business before the boom started in 2004. The time has come when we realise that we can no longer blame the economy. The truth is that the estate agents who remained have got more of the ingredients that you will find in the Super Entrepreneur. Their knowledge is gained through years of experience, making mistakes and learning from it, but it is their drive that supports their clients in depressed markets. I know the market is challenging and I know day-to-day survival matters, but day-to-day survival techniques and strategies can be strengthened by education and

Cecilia Reinaldo

perspective. Nevertheless, the whole tenure of the market is more positively about maximising our opportunities; how we ought to build, train and educate our teams and work together to survive, and then to give responsibility and ownership so as to prosper and thrive - how we ought to focus and concentrate on the delivery of special service for our customers and

to look at the impression we are making on a global perspective. No doubt everyone is entitled to their opinion and that it is equally as valid as your own. We should be delivering a message of empowerment, of involvement, of responsibility, giving and sharing customer loyalty and radical marketing about our relationship with our customers and how we delight our customers and then deliver sophisticated management tools to assist with the continuity of the ongoing longterm relations with our clients. Many companies still deflect their impression they deliver as a brand, the importance of presentation, the professionalism of their dealings, the power of the network to positively enhance their business and the repute and standing of the whole industry. What clients now need, are the Super Entrepreneurs: Estate Agents with a passion to make it happen, the ones that can present clients with facts and figures, perspective and analysis, historic and present trends

and insights to the whole global economy. Good estate agents are turning everything around to assist their clients to get the most value even under difficult circumstances and finally those clients are giving them the same respect they would give to any other professional in any other industry. There is always the danger that over-regulation of this industry will scarify the existence of the Super Entrepreneur. However change is inevitable, and whilst the recent property boom encouraged agents to live ‘happily ever after’, it will only be the top 20 per cent who do not need the support of the ‘boom’; those that will keep on living the way they used to…unless they are just not a super entrepreneur at all. A true entrepreneur makes money over a long period of time – others will always want to make a quick buck, and within that process they are likely to learn the hard way – which many estate agents with the same mind set have already learned.

COMMENTS

Balancing power between investor and developer

ince the economic downturn, buyers of off-plan properties have been left in the dark regarding the status of the development of their homes. Investors are uncertain about what their payment installments are being used for when there has been no progress in terms of construction. Anxiety is growing because they are not getting direct answers from developers, which is impairing buyers from the ability to make informed decisions - and discouraging new buyers from entering Dubai’s real estate market. Dubai’s Real Estate Regulatory Agency (RERA) is a useful resource for consumers and shareholders to have on their side during this crucial period. RERA has implemented new laws and reinforced olds ones in attempts to balance the power struggle between developers and investors. RERA has recently regulated the prices of rent in residential units for 2009, i.e. by removing the rental cap concept and replacing it with the rental price index. Service charges will also remain fixed at the rates they were in 2008. Additionally, the emergence of new property legislation places the onus on developers for any kind of structural damage to a property for up to a 10 year period upon completion of construction. Developers are now held responsible for any type of structural damage in buildings and common area maintenance; and they are also accountable for defective installations such as plumbing, mechanical and

Rose Marie Kilzi is the Leasing and Re-Sale Director at Great Properties

electrical problems for up to a year after completion. To further employ fairness and transparency, a firm set of rules has been prescribed to ensure that development companies stop concealing imperative information from buyers. Developers will now be monitored, cancellation reports will be revealed, and construction status reports will be available to the media. Monthly progress reports containing all approved and registered projects will be made readily available, and the ability to file complaints with RERA if projects are not on track will be an option for all investors and buyers in serious attempts to deter any fraudulent

activities. Developers will be audited and reprimanded should they continue to misuse money that should have been going into escrow accounts. According to RERA’s escrow account law (also called the Trust Account law) the management of the amounts deposited into the account shall only be used for the purposes of developing the said real estate project. The money cannot be used for creditors of the developer or any other project that may be on the developer’s agenda. This law has been in place since 2007 and only now, with the dire circumstances the economic recession has caused, it is being enforced more so than before.

While there have been numerous attempts by RERA to help protect the investor, there is no doubt that further regulation of the developer will also assist the development company itself. Recently, Law No (9) of 2009 amending certain provisions of Law No (13) of 2008 has been set to articulate that payments made by investors go handin-hand with the progress of construction. While this law may help some investors, especially those who have made their due payments without an immediate need to pay anything else upfront, the main entity that will benefit from this law is the developer because the amended law asks investors to make more payments now, i.e. before project completion, as opposed to paying the remaining 50 per cent, for example, after project completion. This will surely keep the funding of development projects moving forward. Now that all initiatives are properly implemented by RERA, and proper – yet fair – regulations are placed on both the investor and the developer, buyers will hopefully regain control over the use of their money and instill confidence and enthusiasm back into the real estate market. There is still a fair amount of uncertainty amongst investors and developers, but with RERA employing these diligent steps to return consumer trust in the market, Dubai will steadily find its way back to being one of the world’s hotspots for real estate investments.

DUBAI REAL TIMES

By Rose Marie Kilzi

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

www.rpdubai.com

COMMENTS

Challenging times are for challenging people Dear Sami, Dear Sami, I’m worried about the amount of denial in the business world today. The That’s it, the holiday season is over for another year and now we have to world really has changed and the sooner every manstart planning for the unknown. How can I produce ager accepts this and gets on with moving forward a budget for the months ahead when I really have the quicker we’ll get things under control again. no idea of how business is going to shape up? I can’t imagine a bank lasting long if it stops lendAll leaders face the same fundamental challenge ing, that is what its business is all about. Yet this is today, to identify the new paradigm and succeed what we are seeing. It is time to shelve complex within its redefined boundaries. I fear too many are financial modelling schemes that are supposed lost, unable to grasp the fact that managing by fear, to make money and revert to traditional and borsetting unrealistic targets, cutting expenses indising banking that services the majority. Come on, criminately and laying off talent is not going to probanking community, open your eyes; make the first duce sustainability. moves, the time for denial is over – it is the future Fear dampens positive contribution, it produces that matters. resentment, distrust and that depresses productivBusinesses that are to flourish in this self inflicted ity – so why use it? Why not cut expenses selecdownturn are already displaying three traits: realism, tively, focusing on those perks that really shouldn’t dynamism and flexibility. Their acceptance of realhave been there in the first place. Drive suppliers to ity will free them from the shackles of the past and be realistic with their charges but don’t leave it to allow them to look towards the future as a new opaccountants to simply take the lowest offer, view portunity. suppliers as those that will help you to survive and The present needs a dynamic approach. No time prosper. for blame and excuses; it’s done, move forward. It is I’ve decided not to push the revenue issue, I reRichard Jeffery is the time to focus on redefining business offerings. It is a ally don’t know where it will go. Our efforts are goManaging Director of time to do away with the bureaucracy that strangles ing to be directed towards two things. First, we will dynamic business. Instead replace it with proper and focus on looking after our current client base rather PeoplePlus, providing meaningful checks and controls that are rigorously than chasing new ones. In this way we hope to ceconsultancy, workshops enforced. ment relationships and show that we value the partFlexibility is the name of the way ahead. We need nerships that we have built. Second, we’re going to and coaching for leadership to be less dependent on our individual opinions and make sure that all of our product offerings are fresh, development at all stages of more receptive to the ideas and suggestions of othattractive, relevant and up to date. Of course we’re employment. Visit his blog ers. Stay flexible, you don’t know everything. going to be careful with our expenditure but that A final thought; what is the most corrupted value doesn’t mean we’ll tie people’s hands and stifle their www.samidubai.wordpress.com we hear of these days? I say it’s the one about envicreativity and individuality. if you would like to respond ronmental and social responsibility. We’d better start 2008 has shown us that the text books for conto his views to Sami living these responsibilities as real values rather than ducting business need re-writing. Organisations wearing them as a dishonest badge of corporate that continue to offer the same old ideas and use goodness. If we don’t, the environmental global criapproaches that are out of date will need to dramatisis will be far longer lasting and more damaging to more people than cally change and realign. We have two choices, either to keep our heads this year’s crisis. The trouble is we are creating these disasters by our down and hope that we don’t get run over in the rush to bankruptcy or own greed and inaction. we keep our heads up and adapt quickly – I know which we prefer. Let me have your thoughts, Let me have your thoughts. Richard – August 2009 Richard – September 2009

DUBAI REAL TIMES

Over the last few months Richard Jeffery has been writing a series of letters to an imaginary Dubai resident called Sami with his thoughts on leadership - some relate to current events, others reflect on leadership issues.

COMMENTS

Liquidation and corporate strategic planning “In testing times like these, it pays to have a solid liquidation plan in hand,” says Jitendra Gianchandani, Managing Partner of Jitendra Chartered Accountants

DUBAI REAL TIMES

iquidation, or deregistration, the arduous process by which a company is brought to an end, is not a situation that any organisation wishes to find itself in. But preparing for the worst-case scenario, especially in turbulent times like these, should be a critical part of a company’s strategic planning. While liquidation might not have been a familiar term in the UAE just a few years ago, thanks to the skyrocketing economy it is now an everyday phenomenon, ever since the global crisis hit home. “Most companies are shocked and surprised by the lengthy procedures involved in closing up a company in the UAE,” says Jitendra Gianchandani, Managing Partner of Jitendra Chartered Accountants and an expert in Business and Financial consultancy. “But all it takes is some advance planning about the liquidation process during the Business Plan stages itself, and most of the ordeal can be avoided” he added. While the UAE’s business environment does encourage entrepreneurship and is significantly devoid of red-tapism compared to other world business markets, there are certain aspects of the law and procedure that business houses need to take note of at an early stage of their business plan. For example,

Jitendra Chartered Accountants is a progressive, medium sized accounts, auditing, bookkeeping outsourcing firm helping clients to accomplish their business and financial goals towards growth, efficiency and profitability Jitendra Gianchandani

even after announcing liquidation by placing a notice in the newspapers, the Directors need to have a clean chit from concerned government agencies like Labour, Immigration and the Municipality stating that they have no pending renewals of licenses. Companies should also be aware of the fact that their licenses should be active while applying for closure. Awareness of small but crucial aspects of the law such as these can save companies a lot of time, money and trouble during liquidation. Citing another example, Mr. Gianchandani says that most flexidesk companies are often surprised to find that the Directors need to be

physically present and submit their passports to close a company in the Ajman Free Zone. “The Ajman Free Zone requires investors to deposit their passport, or US$ 50,000, until a notice period of 15 days. In the case of an LLC, it takes two to three months, and the auditor’s liquidation reports need to be submitted. Besides a 60 days notice in newspapers, the board resolution has to be notarised in court, and there are also labour issues and visas to cancel. So it is not a simple procedure and has to be planned in advance,” reiterates Mr. Gianchandani. Numerous other matters have to be considered such as personal appearance of the shareholders,

No Objection Certificates from the concerned ministries, due clearances and visa fees. These factors vary depending on whether the companies are located in Free Zones or in the mainland, and between LLCs and Public companies. “I have personally dealt with companies that have undergone liquidation, like Multiple Interface Systems Pool Consultants and Hung Hom Trading Company (LLC) for instance, who have reaped the benefits of having a solid business plan that take liquidation into consideration well in advance” adds Mr. Gianchandani. Apart from liquidation, companies in the UAE are also well advised

Comparison chart illustrating the liquidation and de-registration procedures in the UAE designed by Jitendra Gianchandani to plan their expansion in advance, as it involves the same closure procedures in many cases. “Opening a small Company in one Free Zone and then thinking of expanding operations by shifting from one Free Zone to other is not an easy task” says Mr Gianchandani. “The process needs to follow a lengthy procedure. Companies with expansion plans are free to open a second company in another free zone, provided they pre-register and pay the cost of closing the first company. They also need to transfer or cancel their visas before closing the company in the first Free Zone,” he adds, indicating that those with an eye on expansion also need to be well aware of the liquidation rules, in case their plans involving closing down a smaller unit and opening up a bigger one.

No. PARTICULARS

FREEZONES AJMAN JAFZA

MAINLAND IN DUBAI LLC PROFESSIONAL

LIQUIDATION/DE-REGISTRATION PROCEDURE 1

Advertisement in newspapers

15 Days

60 Days

Shareholders resolution to wind up the company

√

Cancellation of MOA at Notary office (Dubai Court)

√

Personal Appearance of all shareholders

√

Liquidation report from a Liquidator

√

Return Original Trade License, Chamber Certificates, Commercial Registration Cancellation of Visa, Establishment Card

√

NOC issued by the Ministry of Labour & Social Affairs

√

Clearance from Etisalat, DEWA, FEWA Customs

√

Security Guarantee ( Owner original passport or a cheque of Dh185,000 or $50,000) Government Fees

√

AED 7,110

AED 1,010

AED 2,000 AED 6,500

nitiatives developed by the Organization for Economic Cooperation and Development (OECD) at the recent G20 summit, in co-operation with nonOECD countries, have put the UAE’s offshore centres in a strong position which is likely to see them attract more foreign investments, say experts. The internationally agreed tax standard requires exchange of information on request in all tax matters, and enforces domestic tax law without regard to a domestic tax interest requirement or bank secrecy for tax purposes. “This is a very positive step to establishing legitimate practices on a global scale,” says Jitendra Gianchandani, Managing Partner of Jitendra Chartered Accountants. “The British Virgin Islands, and other

offshore centres, are beginning to loose their image; many companies are using these offshore jurisdictions to avoid tax and hide money.” In response to these practices, the OECD placed Costa Rica, Malaysia and the Philippines on its black list of non-cooperative tax centres, after they failed to meet the new standards set out in the G20 summit’s crack down on tax evasion. While that is true for some countries, others, particularly the UAE, are set to benefit from the new standards. “UAE offshore authorities have high standards of policies and procedures and are very selective in granting an offshore company license to investors,” says Gianchandani. “Indeed, investors into Dubai have high confidence levels as the

UAE is a well regarded country in the international market, on top of it being a tax free economy.” Following the G20 summit, the OECD provided a detailed report on progress by offshore centres around the world towards implementation of its internationally agreed standard on exchange of information for tax purposes. It drew up a list of 40 countries, with the UAE coming under its first heading: a ‘jurisdiction that has substantially implemented the internationally agreed tax standard’. Gianchandani says the recent crackdown on tax heaven practices will free up otherwise frozen money which is being unutilised, to boost the Economy and solve the problem of the liquidity and cash flow, which has dried up since

October 2008. UAE offshore policies and procedures demand that along with the normal requirements of documenting residential proof and bank reference, the Jebel Ali Offshore Authorities also seek for a personal visit of the investor or, in the event of the inability of the investor to be physically present, the authorities are flexible enough to allow the submission of a legalized Power of Attorney from the investor, which should be duly attested by the UAE consulate from the investor’s country. The RAK Offshore authority comes one step ahead in cooperating with investors by suggesting the document to be notarized by any legal authority from anywhere in the world.

DUBAI REAL TIMES

UAE offshore centres tempting foreign investors

COMMENTS

Ten ways

to combat bad web PR By Sawsan Ghanem

DUBAI REAL TIMES

s more and more people instinctively go to the web to research and find out about anything and everything, from reading about an item they want to buy, a property they want to invest in, or a company they plan to partner with, the easiest and most immediate tool for us to get an insight into virtually anything is only a few clicks away. Access to the web has never been easier and will get more so with ongoing technology advances - this is great on many fronts but there are two sides to the coin! News and information, good or bad, speculative or factual is there for all to see, read and analyse. People will log on to your website, and/or surf on different search engines – these can range from established newswires, or other news sources, to blogs, personal user comments on retail sites – to try and get an in-depth insight into what they are looking for. This leads to one sure eventuality: if there is a question mark or some form of negative news or content, people will find out. It’s a fact that negative news spreads fast, often faster than positive news. In our experience over the years, we have come across many an occasion where we’ve had to advise and consult with a number of companies on how best to handle a leak or negative news that is in the public domain. The worst path to follow is to bury your head in the sand and expect ‘the news’ to simply disappear.

perience bad web PR:

So here are some tips for you to note in the future, should you ex-

Start the good PR machine – Start compiling and uploading positive

Be prepared with a response – Think of all the possible questions you may get asked by the media or any other parties, and put together a response to each question. Also prepare five or six key messages/ points you would want to make in any future interview or conversation related to the concerned ‘bad’ news. Being armed with these reference points, you will be prepared and more confident to handle any questions that come your way - by sticking to the agreed and thought through messaging - which ultimately gets the facts and positive points across. The key here is to stay calm and to the point. Your customers, employees, shareholders and media all appreciate objective facts and statements. Engage with the media - If you receive calls from the media while you are putting the facts together, there is no harm in taking the names and phone numbers of those reporters and ask them what their deadline is. Assure the reporter that you will return his or her call before their deadline with the necessary responses and facts. Stand strong and own up to mistakes made – If an honest mistake was made, then there is no harm in admitting this. Share the facts and emphasise what measures you are taking to remedy this and avoid similar mistakes from recurring in the future.

Sawsan Ghanem is Managing Director of Active Public Relations

content about the company on the company website; send to newswires and the media. In time the positive news will make the ‘bad news’ cloud slowly fade away. Proactively answer questions about the company, its future plans, business objectives and performance. All parties that are linked to the company in one form or the other, including customers, partners, investors, shareholders, employees, will need reassurances and clarity with timely and relevant information and facts. Listen to what is being said carefully – Always ask the media or the people who are posing questions what their complaint or issue is, listen carefully and understand where they are coming from. Basically make sure you get all the facts, take notes, and then revert with a calm, short and thought-through response. People generally don’t like being told that they are wrong or how to go about their jobs better; rather they warm up to those who listen to them carefully and give them their time.

Have a crisis plan in place – This is often overlooked and visited too late in the day. Companies generally need to have a crisis plan in place, this way they will not get caught off guard. A crisis plan sets the guidelines for effective management of any scenario that may need a call to action at short notice – it will cover various scenarios, action points, key messages, company spokespeople and important reference information. In times, like this it would be highly recommended for the company concerned to hire a professional PR Agency for guidance and support during such times. Monitor the web – Effectively monitor the web, newswires, blogs, personal opinions posted on various forums. You need to keep your finger on the pulse for any malicious or negative rumours that may be circulating and nip them in the bud before they build momentum. Use the web to your advantage – Start a forum for people to discuss and enquire about any news/action related to the company. Blogs can also work for you…use the various online tools to your advantage and leverage your PR machine to do what it knows best, spread ‘good’ news about the company based on facts. Be proactive in a planned way. Use your website – Use your own company website to post your side of the story, with facts. Follow this with positive news, which are circulated with press release newswires. In doing so, you will gradually knock the bad news off the front pages.

STOP WONDERING, START KNOWING

UNDER CONSTRUCTION

Fast progress

he summer months have been a hotbed of steady activity in the construction trade with ongoing projects steadily moving forward to completion stage. Looking forward to the new year of business events, returning expats and incoming tourists, many buildings are being readied for handover to the paying customer. Dubai World Trade Centre (DWTC), venue operator and events organiser, has announced that its new, state-of-the-art extension has entered the final phases of completion and is on track to open on schedule. His Highness Sheikh Hamdan bin Rashid Al Maktoum, Chairman of the Dubai World Trade Centre had earlier announced that the extended facilities, to be named ‘Sheikh Saeed Halls’, would be complete by the end of the year. With construction firmly on the fast

track, the new space will be open and available for hosting events for the upcoming exhibition season. Upon completion, the new world class Sheikh Saeed Halls will consist of four inter-connected halls including one multi-purpose hall – ‘The Trade Centre Arena’. The Arena, has 14 metre high ceilings and over 9,000 square metres of covered exhibition space; plus the capacity to hold concerts for over 10,000 guests in an air conditioned, all-weather environment. With space for up to 34 regulation size tennis courts, the Arena will be able to host a variety of events including weddings, concerts, entertainment events and official sporting and athletic events Design on the project began on February 23, 2009 lead by design agency Dar Al-Handasah, a renowned pioneering force in the planning, design and development

DUBAI REAL TIMES

Construction work on DWTC’s new Sheikh Saeed Halls on fast track

of projects in the Middle East, Africa and Asia. Khansaheb Civil Engineering LLC, leading UAE contractor and provider of high quality services in construction, joinery, interiors and building services, commenced construction work on March 23 and the first erection of structural steel was put in place on May 12. By the end of July, a total of 4,000 tonnes of steel was erected, averaging 61 tonnes per day. In addition, approximately five and a half kilometres of service trenches have been installed below the flooring to allow for easy access to essential water, electricity, data and communications facilities. Adjacent to the extension will be the new Trade Centre Plaza, hosting a mix of cafes and leisure dining restaurants along with dynamic state-of-the-art digital media to provide additional entertainment. Stretching from Exhibition Gate to the drop-off area and roundabout

fronting the Ibis Hotel, and steps from the soon-to-open ‘Dubai World Trade Centre’ metro station, business and leisure travellers will have easy access to the DICEC and the new Sheikh Saeed Halls. Cayan Investment and Development has announced that its Silverene Towers development at Dubai Marina has made phenomenal progress in construction. Silverene’s Tower A will have 35 floors while Tower B will have 26 floors – comprising studios, one, two and three bedroom apartments, duplexes and penthouses. To date, Tower A has reached level 15 and Tower B has reached level 14. The concrete columns on both towers have reached level 16th floor. Arabtec Construction LLC is the main contractor for the project whilst Robert Mathew Johnson Marshall (RMJM) are the designers

Tower A has reached level 15 and Tower B has reached level 14 at Silverene Towers

The Manhattan

and handing over by the set deadline. We have planned well ahead of time so that we can deliver the quality our customers have come to expect.” Once complete, each of Tower A and B will be linked by a four storey podium with two floors of exclusive hand-picked retail outlets, and a spacious sun deck with swimming pool for residents and feature its own fully equipped gymnasium. Al Fara’a Properties has affirmed the steady construction progress on its projects despite the present market slump. Amidst the on-going handover process of its ‘Le Grand Chateau’ project, the developer also announced that it is on track to hit its delivery targets for ‘The Manhattan’ and ‘Mulberry Mansions’, which are both scheduled for the last quarter of next year. The announcement underlines the developer’s commitment to deliver its projects according to the stipulated schedule, and to safeguard the interest of its clients and investors. Further, the Al Fara’a Group has also recently launched its facilities management division, which is aimed at ensuring longevity of investment through optimisation of the maintenance pool fund and

sustainability of the investments’ value by leveraging the Group’s expertise. Commenting on the progress, Natasha Gangaramani, Director of Al Fara’a Properties said, “Construction on ‘The Manhattan’ is on schedule, with the ground floor slab already constructed in its entirety, including the ramps leading to the three basements.” Inspired by the urban residences of 1930’s New York, ‘The Manhattan’ will offer 355 units, which comprise a selection of studio, one-, two-, and three-bedroom apartments. Marking the leading developer’s third project within Jumeirah Village, ‘Mulberry Mansions’ will comprise of exclusive, Victorian-styled townhouses with four bedrooms, a private two-car garage, a terrace, a balcony, maid’s room with separate access, and a small private garden. In addition, residents of both developments are also set to enjoy the benefits of living in close proximity to top-notch medical facilities, educational institutions, shopping malls and movie theatres, beaches and parks. “With the completion of the initial groundworks, we are now focusing on the superstructures

of ‘The Manhattan’ and ‘Mulberry Mansions’. Specifically, we are positioning the steel reinforced bars for the vertical elements in order to secure the first floor. To ensure that we achieve the high standards and value proposition for our client, we will not only utilise extensive tendering and value engineering capabilities offered in the market, but we will continue to access the broad-base of expertise throughout the Al Fara’a Construction, Property and Industrial Group. We are confident that we can deliver these projects by the end of 2010,“ concluded John Baarens, General Manager, Al Fara’a General Contracting, the appointed contractor for the Jumeirah Village-based projects. Schön Properties, developers of the Dh3 billion Dubai Lagoon Project, have commenced construction within the final part of their 5.7 million square foot development. The entire largescale community of Dubai Lagoon being under construction marks major progress for the project. The developer had recently appointed two independent contractors for the project to ensure accelerated completion and delivery of the project. Bin Sabt Building Contracting Company and Belhasa Contracting and Engineering Company (BHECC), were named as the two preferred contractors for the project, and are currently engaged in the construction of the 3,786 units and associated facilities within the project. Bin Sabt Building Contracting Company is constructing the final phase which comprises of 392 residential units, 98 Serviced Apartments and 37 Retail units, and will cover 494,727 square feet of constructed area upon completion. Bin Sabt Building Contracting Company has appointed Solanki Construction Corporation LLC as their sub contractor, for enabling works on the final portion of the development. Work has commenced and is due to complete in the final quarter of 2009. This time will be simultaneously utilised for the submission of plans and obtaining permits from the relevant authorities for the main contract works. In line

DUBAI REAL TIMES

and creators. They were also the creators of architectural masterpieces such as Emirates Towers on Sheikh Zayed Road. Nearly 2000 Arabtec employees are currently working on the site, a 100 per cent increase in workforce since March 2009. As a result, typical floor construction has been fasttracked, and is expected to go up by one floor every seven days and the concrete core wall is going up one floor every four days. Mr Ahmad Al Hatti, Chairman of Cayan, said, “Silverene Towers is one of Cayan Investment’s iconic projects in Dubai Marina – offering a luxury lifestyle that takes full advantage of the 10,000 square metres site. We have achieved phenomenal progress of construction on the project, which reinforces our impressive track record on delivery. The company has already carved a niche with its timely hand over of La Residencia Del Mar, Dorrabay, Cayan Business Centre and The Jewels projects as also significant progress on Infinity Tower project in Dubai Marina.” He added: “We have awarded all the major contracts for accomplishing the project on schedule and we aim to finish the construction

The last cladding panel of Burj Dubai is now ready for installation

with this schedule, the raft foundation works are presently on track to commence in October. BHECC and Bin Sabt, are progressing ahead of schedule in all other parts of the development and the project foresees the delivery of 442 units by the end of 2009. Till date Dubai Lagoon has employed a total of 2 million man-hours and

its first eight building structures have been completed up to the 7thfloor. To ensure accelerated development, the project is being constructed with the help of 1000+ onsite workers every day. “We are thoroughly delighted with the commencement of enabling works in the final phase of the project and the fact that all

3,688 units in Dubai Lagoon are now under construction,” said Khizer H. Schön, Executive Director of Schön Properties. “Our forward planning and management has enabled us to adhere to our commitments even during these times of uncertainty. And even though we have had our share of unforeseen hurdles, we are sure this occasion will reinstate the confidence of our customers,” he added. Panel number 24348, the last piece of glass cladding that will complete the exterior of Emaar Properties’ Burj Dubai, the world’s tallest building, is now ready and awaiting installation. Arabian Aluminium Company - a member of Al Ghurair Construction Industries LLC, started work on the exterior cladding of Burj Dubai in

DUBAI REAL TIMES

Aerial photo of Jumeirah Lake Towers taken in August 2009 showing completed and on-going construction

April 2007 and is now entering the final phase with the manufacture of the six-metre long last panel for the tower. The panel will be transported to the Burj Dubai work site for installation in the coming weeks. The main materials used in the cladding are reflective glazing, aluminium mullions and textured steel spandrels with vertical stainless steel tubular fins. The cladding accentuates Burj Dubai’s height while lending it a shimmering slenderness. Panels of more than 18 different strength specifications and over 200 sizes are being used for Burj Dubai, all of them doubleglazed and factory-sealed. This is the first time that Arabian Aluminium Company has worked on a project of this scale and took great care to ensure that each manufactured panel that left their factory met the highest standards and strictest specifications. Currently standing at over 800 metres and scheduled to open this year, Burj Dubai is at the centre of the 500-acre Downtown Burj Dubai project.

HANDOVERS

Homes with a view

Burj Views

The Citadel

Deyaar Development PJSC currently manages over 16,000 commercial and residential properties. Its operations are divided across four key business units, vis-à-vis, property development, lease management, asset management and fund management divisions. The company complies with the Escrow legislation and all relevant property laws in the UAE. Deyaar is registered with the Real Estate Regulatory Authority under reference number 15/07

75 per cent of the property value will be provided for a tenure of 3 to 25 years. Call 800-EMAAR (36227) or log on to www.emaar.com for more details. A stellar attraction at Downtown Burj Dubai is The Dubai Fountain, a water music spectacle that shoots water jets as high as 500 feet. The Emaar Boulevard is another preferred leisure destination that has hosted crowd-puller events such as the Burj Dubai Classic Car Show.

Commercially yours at The Citadel Fulfilling its commitment to hand over seven projects in 2009, Deyaar Development PJSC, a regional real estate company dedicated to innovation, customer care and long-term sustainable growth, in August commenced handing over all units at The Citadel, its premium 41-storey commercial tower located in the Business Bay master development. The Citadel comprises 565,000 square feet of office space, including

406 state-of-the-art, contemporary commercial units, and 29,000 square feet of retail. This is one of the first projects to be delivered in the Business Bay master development. “With the handover of The Citadel, Deyaar will have successfully fulfilled its handover commitments for 2009,” said Markus Giebel, Chief Executive of Deyaar. “We have consistently set high benchmarks of quality and value in our projects, and The Citadel is no different. We are confident that the design and quality will prove to be extremely beneficial to all businesses and commercial establishments operating from the tower.” Deyaar hosted an orientation programme for all customers in July ahead of the final delivery. The orientation programme was used to update customers with the final documentation procedure for their respective units to discuss the building operating budget and facilities management contract. Additionally, an explanation of the building systems, amenities and personnel was also provided. The Citadel is the latest in the line of high-quality projects completed and delivered by Deyaar in the past few years. Facilities at the project include 24hour security and ample parking space, among others.

DUBAI REAL TIMES

maar has commenced hand over of Burj Views, a three-tower residential complex, with several apartments opening to prime views of Burj Dubai, the world’s tallest building, and The Dubai Fountain, the world’s tallest performing fountain. The homes are located along the outer edge of Downtown Burj Dubai, described as the ‘most prestigious square kilometre on earth.’ Burj Views feature studios, oneand two-bedroom apartments and duplexes. The hand over is scheduled in two phases starting with residential units in the three towers followed by units located on the podium level. These homes offer residents a quality lifestyle being in close proximity to The Dubai Mall, the world’s largest shopping and entertainment destination, several world-class hotels and the Emaar Boulevard. Mr Ahmed Al Matrooshi, Managing Director – UAE, Emaar Properties, said: “The hand-over further establishes Downtown Burj Dubai as one of the most sought-after lifestyle destinations in the city. Burj Views further adds to the residential components in the community, already abuzz with life and which has all modern amenities in close proximity.” Centrally located near The Old Town the complex features health and fitness facilities, swimming pools, indoor basketball court, squash courts, children’s play area, private gardens and leisure avenues. Spacious courtyards feature gymnasiums with high ceilings while rooftop amenities include lounges, games areas and multipurpose rooms. A highlight is a dedicated retail space that spreads over 1,800 square metre, adding to the convenience of residents and visitors. Potential customers can benefit from the Standard Chartered mortgage offering Dh150,000 to Dh10 million on Burj Views homes. Up to

HANDOVERS

Delivering promises Omniyat Properties says its focus is now on completing and delivering projects in hand By Ambily Vijaykumar

ith a target of handing over its third project, One Business Bay, within this year, Omniyat Properties is confident that it will be delivering the remainder of its nine projects on time to customers who have invested with them. The property developer is at the moment involved in the completion of projects worth about Dh8 billion. The handover for the first phase of The Square located at Mamzar in Dubai, worth about Dh350 million, began in August. This Dh800 million project is offered for on a 35 year leasehold basis. “Obviously people in these markets are mainly focused on leasing spaces and the property cycle itself is not more than 35 years, so you don’t have buildings that last beyond that period,” says Mehdi Amjad, CEO and President of Omniyat Properties. When the project was launched three years ago, the sales figures hovered in the range of Dh600 to Dh650 per square foot at a time when the average rates were not less than Dh1300-Dh1500 per square foot. “Even though we saw the property rates in 2008 doubling as compared to 2007, this year, we have seen them returning to 2007 standards. So our investors have only gained from the low investment they made

DUBAI REAL TIMES

Open plan lounge and dining room

back in 2006. The property market in the region has seen a correction in the range of 20-25 per cent which is healthy,” says Mehdi Amjad. The sales and leasing office that is

Mehdi Amjad

& Resorts first serviced apartments consisting of 180 rooms that are scheduled for handover by March 2010. The project has been realised in collaboration with Al Shabab Club who are the master owners of the land and who would get it back once the 35 year lease period is over. Resale and leasing enquiries have poured in during the first few weeks, Omniyat claims. In the first phase, about 100 are for resale and 200 for leasing. Though the rental range has not been finalised so far, the developer expects to keep it according to prevailing market standards. “A studio is likely to be in the range of Dh40,000 to Dh50,000 a year, one bedroom would be between Dh60,000 to Dh70,000, two bedrooms between Dh80,000 to Dh90,000 and three bedrooms between Dh110,000 to Dh120,000 a year,” elaborates Richard Lambert, Sales and Leasing Manager, Omniyat Properties. A teething trouble for tenants, especially in Dubai, has been the number of cheques that landlords allow for the yearly rent. When asked about how many would Omniyat ac-

open at the property offers services including leasing, resale on behalf of owners, fit out for offices, property management and furniture packages. The G + 5 residential developments in the first phase have 544 apartments. A second phase consisting of 126 office spaces is scheduled for handover by the end of the year. A first for A swimming pool to share this development is Mövenpick Hotels

cept for The Square, Richard Lambert did not give a final number, but said it could be “one, two or four.” Other amenities within the development include 36 retail stores with food and beverage outlets, a supermarket - negotiations for which are in the final stages, two gyms, sauna and steam rooms, a 32 metre swimming pool, children’s pool, play area, barbeque area and also 1,100 underground parking spaces ensuring each resident of one parking bay. With the current global economic climate not abating, the developer has had to restrict at least two of its projects to the concept and design stage though they were launched at Cityscape last year. When quizzed about strata law compliance for its project Mehdi Amjad replied, “We obviously comply with the strata law. We have a strata department that ensures that our developments are run in compliance with it. We also work very closely with the Dubai Land Department and RERA in terms of structuring our strata associations, or owners associations, across all our buildings and we have a specialist team from Australia that works inhouse with us in that field.” Australia was the first country to introduce the strata law back in 1961.

A kitchen fitted with today’s appliances

HANDOVERS

ictory Heights (VH) has come a long way since the concept was finalised as part of the broader Dubai Sports City (DSC) development. What was once arid desert has been turned into an oasis of serenity among the highly impressive structures and stadiums being established in DSC. The first residential golf estate in the UAE, Victory Heights is a joint venture between Bahrain based investment bank, Arcapita and Dubai Sports City, the world’s first purpose-built sport city which will incorporate state-of-theart sporting venues and academies alongside luxury residences. This is an exclusive golf residential community providing villas in a choice of authentic architectural styles of Spanish Andalusian, classical European or Mediterranean. Much progress has been made in recent times with a number of the phases of the development launching as well as the sales offices and show villas. A handover process began in the Estella and Carmen villages, and has been carried out in a carefully controlled fashion to ensure that the new residents are able to enjoy a high quality experience as they move into their new homes. Following closely behind the first 100, Victory Heights has

also issued handover letters for an design in the Middle East, and it additional 150 homeowners who combines a links style course with are expected to move in within the traditional parkland design. next few weeks. Villas in the NovelEducation is another priority and lia, Esmeralda, and Oliva villages are with the establishment of Bradenton next in line for handover. Preparatory School children here “We are right on track in terms of will have knowledge and comfort in delivery and ensuring the best quality; and our (from left to right) Mr. Arun Khehar, Victory Heights’ one hundredth client receives the keys to his property targets have been ac- from Yasser Al Raee curate enough for our residents to be highly satisfied. Homeowners have already started to move in and the development is really taking shape,” said Yasser Al Raee, General Manager, Victory Heights. Meanwhile, the landscape of the community is taking shape. With the Els Golf Course progressing well, homeowners already have immaculate fairways and greenery that make homes here quite unique among the hustle and bustle of Dubai life. Ernie Els, the well known professional golfer, is the designer of the 18-hole championship golf course. This is his first golf course

one place. Equally important is the health of the entire community and with direct access to the walkways, golf course and numerous sports world-class fitness establishments VH will personify the ethos of Dubai Sports City. Meanwhile, Dubai Sports City is now essentially in operation and is all the more attractive to prospective home-buyers and current homeowners. The recent cricket series at DSC’s Dubai International Cricket Stadium helped profile the city to a global audience. “Our aim is to provide an exclusive residential setting which offers homeowners the perfect balance between luxurious living and an active lifestyle,” added Al Raee. Covering some 25 million square feet, Victory Heights is an exclusive villa community offering 963 beautifully designed villas and town homes set in and around The Els Golf Course. The golf facility is also home to the Butch Harmon School of Golf, managed by Troon Golf.

DUBAI REAL TIMES

A Victory for Heights

LAUNCHES

Top banks invest in Downtown Jebel Ali

DUBAI REAL TIMES

tandard Chartered Bank, Citibank and Blom Bank France are the latest international businesses to set up operations at Downtown Jebel Ali, global master developer Limitless has stated. The banks join household names such as Ericsson, Kraft Foods and L’Oreal on a growing list of local and international companies who have moved to A-grade offices or taken retail space in Downtown Jebel Ali’s first four commercial towers, which are part of an eight-building mixeduse complex called The Galleries. The offices offer high-quality, tailor-made accommodation with onsite property and facilities management services. Businesses can lease from 1,000 to 15,000 square feet per floor, and can take multiple floors if required. The Galleries, to be served by the Dubai Metro, will also soon offer around 300 apartments for lease, providing quality accommodation a stone’s throw from the office towers and within easy reach of other parts of Dubai and Abu Dhabi. Retail outlets at the complex are also taking shape. Vishal Tikku, a Managing Director at Kraft Foods Middle East and Africa, said: “Kraft moved to The Galleries six months ago, and Limitless has worked closely with us to ensure that we settled in quickly and overcame any challenges associated with a major office move. And, with our office being barely 100 metres from the Metro station, we are eagerly awaiting the opening of the Dubai Metro, when we will see a major change in the way many of our employees commute to work.”

Dawood Al world swimming and diving champiHajri, Head onships. It will have a major Olympic of Planning size swimming pool and Olympic divD e p a r t - ing pool, Olympic warming and trainment and a ing pool. The pool will be equipped number of with a mobile ground to control the municipal of- depth of the water for schools and ficials and club training and the establishment e n g i n e e r s of local and regional competitions. to the Dubai In addition, the mobile cover for Sports Com- the Olympic swimming pool and plex project diving pool allows another nine nonin Dubailand, water sports to be held, like basketEng. Mohammed Abdul Kareem Julfar and colleagues review was to review ball and volleyball. The Olympic pool work progress on Dubai Sports Complex project construction area has a capacity of 15,000-seats, progress. and there are 700 mobile seats in the The complex will consist of a fully training and local competitions part, Progress at Dubai Sports air conditioned building which will in addition to the other facilities built Complex conform with the requirements of with all necessary equipment to serve Eng. Mohammed Abdul Kareem the International Federation of Swim- the requirements of the public, athJulfar, Assistant Director General for ming to permit the establishment of letes and VIPs. Corporate Support Services in Dubai Municipality (DM), confirmed the Municipality’s keenness in providing Limitless CEO Saeed Ahmed Saeed (right) joins Salah Ameen, Project Director, high quality services and facilities, Downtown Jebel Ali, in planting a tree at The Galleries. This frangipani, one and the development of sports and of 200 trees being planted, will grow up to eight metres tall. It joins six other varieties that will line The Galleries’ central plaza, cementing the company’s youth movement in Dubai. commitment to green, shaded communal areas in its developments The implementation of the Dubai Sports Complex project is based on the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to the importance of completing sporting infrastructure in general; and especially for the establishment of world swimming facilities for the 2010 championships which will be held in Dubai; the first time it will be hosted in an arab country. The inspection visit by Eng. Julfar and Mr. Abdul Qadir Al Jasmi, Head of Legal Affairs Department, Eng. Mohammed Noor Al Mashroom, Head of General Projects Department, Eng.

FOCUS

Helping companies through the downturn

nvestment in health, safety and welfare, and raising awareness of potential risks can save lives and have a positive impact on a construction company’s bottom line, says Dubai-based not-for-profit organisation, Build Safe UAE. Elias McGrath, Group Administrator of Build Safe UAE, said contractors

and property developers who devote time and money in the area of health, safety and welfare, and share knowledge and best practice with others can greatly benefit in the long-term. “Mindsets are changing and organisations are realising the true value of investing in health and

safety, as a way of improving the bottom line. The benefits include completing projects on time, building a good reputation, ensuring quality of build and boosting the morale of workers,” said McGrath. While construction activity in the region may have slowed, contractors now have a chance to re-

fine processes and become more cost-effective. “Downturns give organisations an opportunity to correct old, ineffective or non-productive business practices, and look for ways to be in a stronger position for the next upturn,” McGrath said. Construction safety will be highlighted at the Big 5 PMV, the

DUBAI REAL TIMES

IPAF will be highlighting safe and effective ways to work at height, at the Big 5 PMV, from 23-26 November 2009

DUBAI REAL TIMES

region’s premier plant, machinery and vehicles exhibition from 23-26 November 2009 at the Dubai International Convention and Exhibition Centre (DICEC). For the second year, Build Safe UAE is partnering with the event to communicate to international contractors, suppliers and manufacturers, that the region takes health and safety issues seriously. “The topic is making its way to the top of corporate agendas. I’ve noticed a clear improvement in recent years, but more needs to be done,” said McGrath. “We want to get senior managers to start doing business the smart way, and ethically the right way. Construction stakeholders in this industry will be taking an expressive interest in plant, machinery and vehicles that incorporate measures which reduce or eliminate risk of accident, injury or harm to a person.” The event has gained the attention of large global organisations, committed to reducing the incidence of construction related injuries and fatalities. The International Powered Access Federation (IPAF) has announced their full support and participation in the Big 5 PMV. Tim Whiteman, Managing Director of IPAF, a not-for-profit organisation that promotes the safe and effective use of powered access worldwide, said: “There is plenty of scope to improve safety standards in this region and we’re seeing a clear desire from major contractors to raise these standards. Industry events such as the Big 5 PMV are very important to showcase powered access as a safe and effective way to work at height.” Madania Real Estate has made its first auction property sale following its second public auction event held on the 22nd July 2009. Raymond Kuceli, the auctioneer and CEO of Madania Real Estate, put eight properties under the hammer at the Al Murooj Rotana Hotel including two residential properties in the Meadows and Jumeirah Beach Residences, one apartment in International City and three commercial office spaces in Jumeirah Lake Towers. While the lots failed to meet their reserve prices on the night, post

of sale is really Dubai Holding (DH)is realignabout getting ing its organisational structure to the fairest mar- streamline its operations and ensure ket value for any the continued delivery of worldgiven property class projects and future growth of on the day,” he the organisation. Building on its strengths and said. core competencies in four major During the recent auction operational specialisations, DH is event held, all reorganising its businesses into five registered Property, Business Parks, Hospitalbidders en- ity and Investments verticals. The Raymond Kuceli, the auctioneer and CEO of Madania Real Esrealignment will deliver significant tered into the tate, put eight properties under the hammer at the Al Murooj Rotana Hotel including two residential properties in the action, focusing efficiencies as the group prepares Meadows and Jumeirah Beach Residences, one apartment on three of the for the economic upturn. in International City and three commercial office spaces in Ahmad Bin Byat, CEO, Dubai eight lots up for Jumeirah Lake Towers auction. Eight Holding said: “The realities of the bids were made global economic climate have event negotiations delivered the on the second lot of the evening, an made it necessary for us to look at first sale during the third phase of apartment in Jumeirah Beach Resi- our portfolio in a different way. In the auction process. The Meadows dences, starting at Dh2 million and order to remain competitive in the villa with landscaped garden sold increasing by Dh100,000 increments marketplace, and be sure that we for above Dh4.2 million. until it was passed in at Dh2.65 mil- are poised for success once the Although bidding levels at the lion. The sixth lot to be auctioned, markets open up, we’ve undertaken auction event were still below sell- a villa in The Meadows, started at a a number of changes that will reiners’ expectations, the gap between bid of Dh1.5 million and was passed force and strengthen our business.” buyer and seller price positions has in at Dh3.3 million after narrowed. In the instance of the 10 competitive bids. It successful sale, parity was achieved. subsequently sold during Madania remains confident of post event negotiations. building on the success of the first The final property up for sale at its next auction, planned for auction, also a villa in The October. Meadows, was passed in Commenting on the auction at Dh3.35 million after six property sale, Raymond Kuceli, CEO bids were made from the of Madania Real Estate said: “This floor. sale is a real milestone for us. My The auction itself is team has worked hard to achieve phase two of Madania our first auction property sale Real Estate’s 60-day, three and I’m delighted for them and, phase auction process. of course, our client. It reconfirms Phase one begins with a our belief that the auction method vendor signing up excluof sale will work in Dubai. In the sively with the company months to come we will continue and the onset of an agto pioneer this method, and edu- gressive four-week minicate sellers and buyers about the mum marketing cam- Ahmad Bin Byat advantages of buying and selling paign. If the property does not sell “By building on the synergies property at auction.” at phase two – the auction event – within our portfolio our businesses Kuceli added that the increased the third phase uses all the informa- are able to take advantage of the bidding activity at the auction, tion gathered during the first and diverse expertise within the comand the doubling of properties second phase to generate a buyer. pany like never before. We have a auctioned - up from four in May The auctioneering method of strong and diversified asset base to eight in July – were both posi- sale is unique in that it facilitates that includes our employees, our tive signs and indicators that buy- sales between a buyer and seller projects and our international parters and sellers are becoming more in the most transparent manner ners. In this changing environment comfortable with the process. and puts the property before the we have adapted and therefore our “The biggest myth we’re trying price. The prices agreed during the portfolio stands strong and is ready to dispel among bidders at the mo- regular auction events will help the to take advantage of new opportument is the belief that they will get company provide accurate data on nities,” Bin Byat added. rock bottom prices simply because true market value for assorted types The Ilyas and Mustafa Galadari it’s an auction. The auction method of properties. Group, owners of City of Arabia,

Al Barza

The Ilyas and Mustafa Galadari Group has appointed Dhabi Contracting to build Wadi Walk, the vibrant waterfront community characterised by low-rise Mediterranean style apartments in City of Arabia.

sunk within the basement. Visitors will be able to cruise the waterway aboard fleets of water taxis, which are electronically powered to eliminate noise and pollution, and can travel the canal from Wadi Walk to Mall of Arabia. The development is also designed to restrict traffic flow, with cars and other vehicles diverted to the rear of the apartment buildings where there will be ample car parking for residents, shoppers and diners. Visitors arriving via the Dubai Metro can transfer quickly to City of Arabia’s own monorail system, for a short onward journey to other

Ramadan tent at JBR

destinations within City of Arabia. International Air Charter (IAC), one of the world’s largest independent private jet charter brokers, has revealed an increasing number of bookings for short regional flights within the Middle East or around Europe, prompting IAC to boost its locally-based fleet and expand its regional presence. IAC noted that numerous European travellers coming to the UAE, particularly those who have bought properties or invested in elite developments, prefer jet services as being more convenient, time-efficient and costeffective means to reach multiple business and leisure destinations in

the Middle East. Elie Abdo, Managing Partner – Middle East, International Air Charter, said, “While commercial airlines are still convenient for long-haul flights, a growing number of elite clients are now looking for charter jet solutions for shorter local and regional flights within the Middle East or around Europe. Chartered jets give our elite business clients greater flexibility in terms of departure time and passenger capacity, while allowing them to avail of a wide range of business or even customised leisure services and facilities throughout the trip, which are otherwise unavailable in commercial flights.”

event, we are seeing our residents and visitors gathering at the tent for Iftar and Sohour. This initiative is part of our ongoing efforts to bring the community together in a spirit of brotherhood. It is a great place for families, groups of friends and business colleagues to come together and savour the traditional aspects of local hospitality.” Evocative of the region’s heritage and serving a wide assortment of Arabic and North African cuisine, the tent welcomes visitors from 7.00pm to 2.00am on weekdays and 7.00pm to 3.00am during the weekends. In keeping with the tradition of giving, Dubai Properties Group and Samsung will raise funds for select charities throughout the Holy Month of Ramadan at the tent.

ubai Properties Group (DPG), a member of Dubai Holding, is marking the Holy Month of Ramadan with an authentic 300-seat tent hosting daily Iftar and Sohour at The Walk in Jumeirah Beach Residence (JBR). Samsung, the global leader in consumer electronics and advanced technology solutions, are on board as platinum sponsors, and Arabian Radio Network (ARN), subsidiary of the Arab Media Group (AMG), are the media partners for the monthlong event. For first time visitors to The Walk, Al Barza is an ideal place to experience the traditions of Ramadan with a spectrum of traditional activities, including a live oud musical player. Saeed Bushalat of Dubai Property Group said: “For this second annual

DUBAI REAL TIMES

the spectacular retail, residential, commercial and entertainment destination in Dubailand, has appointed Dhabi Contracting as the main contractor for Wadi Walk. The company won the contract to build the city’s Mediterranean style low-rise apartments and waterfront community, over four other companies, for their competitive bid. With soil testing, excavation and shoring works already complete, Dhabi Contracting is now mobilising on site, and is commencing foundation works for Wadi Walk. Sami Edwards, Managing Director of Dhabi Contracting, said, “With around 1,000 workers and 40 engineers on site for Mall of Arabia, we have now introduced approximately 500 more to build Wadi Walk. This contract agreement is a continuation of our relationship with the Ilyas and Mustafa Galadari Group, and we are all excited to see Wadi Walk come to life.” Wadi Walk, a vibrant waterfront community set along a meandering eight-kilometre canal, will provide residents and visitors with a huge range of retail outlets, cafes and restaurants, and ample space to stroll and relax. Acting as the focal point of the development, the canal will be kept to a deep blue colour and will maintain pristine quality by 11 water filtration plants

FOCUS

Robotic Valet Parking By Abhishek Chandra

DUBAI REAL TIMES

owadays automation seems to cover almost every aspect of our life and Dubai seems to be leading the way in adopting hi–tech alternatives to many of the manual tasks we do, making life a lot easier, as well as solving the problems that the city and its people face using cutting -edge and inventive methods. A multi-storey, robotic car park, one of the largest in the world, opened on 12th August 2009 at the new Ibn Battuta Gate mixed-use office complex, owned by Seven Tides. Located next to Ibn Battuta Mall, the Gate office complex has 40,000 square metres of office space and residential apartments managed by Asteco Property Management and a five-star hotel and spa to be managed by Mövenpick Hotels & Resorts. Cars are parked for you using computerised trolleys and elevators and retrieved in a similar fashion. This innovative technology offers car-users a quicker, easier and safer system of car parking, with minimum risk to the cars and an economical use of space. “In a world of increasing urbanisation and traffic congestion, the future is robotic parking”, said Sami K. Issa, General Manager of Robotic Systems, the technology licensor. “As, more and more vehicles in the UAE and the Middle East share a limited volume of available space, the need for a solution has become acute. In our view, it is not simply more space but more intelligent use of space which will solve

the parking problems of today and tomorrow. With this technology, you don’t need to drive through the garage to find a parking space. Instead you simply drive your car to an entry station and leave your car to be picked up by the computerised lifts that will safely place it inside the building on a shelving system. When you leave, you return to a central point and your car is swiftly returned to you” The car park, whose technology was designed by US-based Robotic Parking, is able to hold up to 765 vehicles and can carry more than 250 parking transactions per hour, with 32 cars in motion simultaneously. Car retrieval can take between two and a half to three minutes, depending on the amount of cars being parked at once. Andrew Chambers, Managing Director of Asteco commented,“This robotic car park will be especially convenient for the office tenants, parking or retrieval can be completed in less than 160 seconds. It is safe and secure and obviously doesn’t expose expensive paint work to the abrasive elements during lengthy office hours.” High-end car users would certainly be attracted with a secure storage for their cars, away from the inevitable scratches and dents that occur often in parking lots, particularly with Dubai being a hub for expensive vehicles. Compared with the regular basement parking for 350 cars also attached to the Gate Office complex, the robotic car park can hold twice the amount of vehicles in the same

Ahmet Oktay Cini, CEO of Asteco Development Management, also representing Seven Tides, describes the system as “a premium valet parking using state of the art technology”

Andrew Chambers, Ahmet Oktay Cini and Sami K. Issa

amount of space. This is achieved by eliminating overhead space, as well as walkways, both of which are essential in regular parking, but not in the automated version. In terms of charges, tenants and members of the Gate Office complex receive complementary use of

the robotic parking service, visitors however may be required to pay a fee, although no initial charges have been set, so visitors can have a free sample of the innovative technology. Any safety issues that may arise are also seen to, as once the vehicle

is driven to the drop off booth and the passenger has exited, a digital questionnaire must be answered regarding the situation of the vehicle and the contents placed inside to ensure that no passengers or pets are still inside and that the engine is switched off. At first, there might be some apprehension in placing your vehicle in the hands of a computerised system, but rest assured that tests have been done to ensure that your vehicle is safely stored and retrieved quickly with no problems whatsoever and any concern you feel at first is cancelled out by the sense of awe created by the swiftness of the system. More and more cars are on the roads now in Dubai, correlated with the rise in the population due to more expatriates entering the country. This would result in larger parking lots to be built in order to cope with the increase in vehicles driven. This in addition to the immeasurable amount of development going on in Dubai, there hasnâ&#x20AC;&#x2122;t been much emphasis on the conservation of resources, and one of the most sought after resource in the future is going to be space. Ventures like the Robotic Car Park will provide an important aspect of space saving measures to come.

Robot Parking

Human eyes keep a watch on the robot parking

This scheme will effectively inspire the construction of more multistorey car parks, robotic and regular all over the city, especially with

the completion of the Dubai Metro, providing commuters all over Dubai with easy access and space efficient parking adjacent to the stations.

â&#x20AC;&#x153;Tenants and members of the Gate Office complex receive complimentary use of the robotic parking service,â&#x20AC;? states Andrew Chambers, Managing Director of leasing agent Asteco

DUBAI REAL TIMES

Clients can watch their car being retrieved and brought to them mechanically

INFRASTRUCTURE

Briny sea

DUBAI REAL TIMES

echnoPark the science and technology facilitator of Economic Zones World has signed a land lease agreement with First Sea Mining Factory LLC. The mining factory uses cuttingedge technology from I.E.S. Germany and will implement advanced oneof-its kind Seawater Brines recycling technology that will completely eliminate harmful pollution caused by brine discharges from seawater desalination plants. The establishment of the new company is a landmark step towards ecological preservation of UAE’s marine seawater resources and its fishing industry. Ibrahim Mohamed Al Janahi, Chief Commercial Officer of Economic Zones World – UAE Region said: “Building up the country’s desalination capabilities and water conservation efforts is a huge priority for TechnoPark.” First Sea Mining Factory will collaborate with TechnoPark, the Ministry of Environment and Water, Government decision makers and the water authorities concerned for the recycling of industrial waste brine which is a by-product of the desalination process. Another advantage of this unique recycling technology is the potential to develop other industries due to minerals and salt received from the recycling process, such as gypsum, table salt, potassium-magnesium fertilizer, magnesium and other valuable minerals. TechnoPark is focused on Research, Development and Studies in the field of the country’s core economic sectors viz. Energy, Desalination & Water Resource Management,

The International Desalination Association is a non-profit organisation comprising over 2,000 members from 60 countries, including scientists, end-users, engineers, consultants and researchers from governments, corporations and academia. IDA is associated with the United Nations as part of a growing international network of non-governmental organizations (NGOs) Ibrahim Mohamed Al Janahi

Environmental Resource Management and technology driven knowledge based industrial development. From 7 to 12 November, it will host the IDA World Congress on Desalination and Water Reuse 2009 at the Atlantis Resort - The Palm. Themed ‘Desalination for a Better World’, the conference is expected to gather over 1,800 industry professionals and leaders from the global desalination and water reuse industry. The event will include technical programmes, an exhibition and discussions on the most advanced desalination and water conservation technologies available in the world. The Congress, which has grown exponentially year on year, involves the world’s most prominent industry players, including end-users (utilities), manufacturers and suppli-

ers, government officials, researchers, financiers and members of academia from over 80 countries. Patricia Burke, Secretary General of the International Desalination Association, said: “Water sustainability is a global issue, and can only be addressed through exchange of information on an international level. We look forward to the exchange of ideas and collaboration on critical issues. The industry is constantly evolving and innovating, and our mission is to ensure that desalination is implemented in the most responsible way, from the perspective of cost, energy and environmental considerations.” “Among the most anticipated events during congress week are the tours of desalination plants in the region. This year, we have expanded the

While this is the first time that this World Congress will take place in Dubai, IDA has enjoyed a long history with the United Arab Emirates and other countries in the Middle East. For example, IDA has hosted two water forums in Sharjah and Dubai, and its 1995 World Congress took place in Abu Dhabi. Plus some of the desalination industry’s leading suppliers, including Metito and Future Pipe, have their roots in Dubai

tour programme to run throughout the congress week, affording delegates exclusive behind-the-scenes access to some of the most advanced desalination facilities in the world. Palm Utilities, ADWEA and DEWA have already confirmed their participation,” she added. “ Water is the lifeblood of our planet.” Explained Ms. Burke. “Without access to clean water, people cannot enjoy healthy, productive lives. Communities cannot thrive, and business cannot grow. Globally, we are challenged by many factors that stress existing water supplies. Today, desalination is being recognised throughout the world as a vital aspect of helping the world’s population meet its growing thirst for fresh water. Of course, here in the Middle East, desalination has long played a critical role in providing water to the region’s burgeoning population. In fact, the UAE is the second largest producer of desalinated water in the world, producing more than 8.4 million cubic metres per day, or over 13 per cent of the total global capacity.”

ENVIRONMENT

Rallying against the refuse: People are the key to UAE’s conservation agenda EEG offers solid recycling and waste management platform

Habiba Al Marashi

Group. The Emirates Environmental Group (EEG) is a professional body which promotes environmental protection through awareness and action programmes plus community involvement. It is the first environmental NGO in the world to be ISO 14001 certified and the only eco-oriented organisation in the UAE with accredited status to the UN Convention to Combat Desertification (UNCCD) and the United Nations Environment Programme (UNEP). EEG is fully supported by concerned local and federal government agencies and welcomes men and women of all nationalities. EEG has been campaigning for the integration of proper waste management and recycling into the daily operations of all sectors of the Emirates and the lifestyles of the country’s citizens. Through high-profile events

and publications, the Group emphasises the need to reduce the amount of waste generated by the country, which accounts for one of the highest in the region. The organisation’s efforts are starting to bear fruit, as reflected by its latest waste collection data. EEG reports that paper collection as of June 2009 amounted to 689 tons, a 50 per cent increase from the total 2008 collection. The biggest breakthrough, however, has been in plastic collection. Through greater support from individuals and companies, 60 tons of plastic have been removed from the UAE’s surroundings in the first half of 2009, representing an impressive 82 per cent jump from the 2008 figure. This complements the government’s recent announcement that it will be phasing out conventional plastic bags by 2012. Even EEG’s glass collection has picked up, surpassing 90 tons and overtaking last year’s collection by 70 per cent. A total of 3,992 pieces of empty printer ink cartridges and toners have been gathered so far, compared to the total 2008 yield of 5,653 pieces. Major companies such as Sanyo and Nokia have taken notice of

EEG’s successful programmes and have joined forces to tackle the issue of used batteries and mobile phone collection initiatives. “The future of our environment does not rest in the hands of the government only but rather in the support and cooperation of each and every member of society. While we offer a solid platform for conservation, our efforts are only as effective as the public’s participation,” concluded Al Marashi.

DUBAI REAL TIMES

n the beginning of the 20th century, then US President Theodore Roosevelt commented that “The conservation of natural resources is the fundamental problem. Unless we solve that problem, it will avail us little to solve all others.” Despite this strong statement, however, global environmental activism only began to gain momentum in the 1960s. To this day, there is still much debate on the extent of humanity’s ecological impact and the best methods and levels of environmental protection. While the UAE is one of the most progressive nations in the Arab region, it is also one of the most hardpressed to enhance its conservation status. The Emirates’ high per-capita ecological footprint is caused by a combination of factors such as vast oil reserves, unique geography, numerous infrastructural developments and a multicultural population. No less that H.H. Sheikh Zayed Bin Sultan Al Nahyan, the founding father and late President of the UAE, recognised early on the importance of maintaining a balance between growth and sustainability. “H.H. Sheikh Zayed often called for greater awareness on how we affect our surroundings, not just as a corporation or government organisation, but more importantly as an individual. That is why our Group advocates environmental custodianship at the grassroots level. Simple acts such as proper recycling and use of biodegradable products add up to considerable reductions in our ecological footprint,” said Habiba Al Marashi, Chairperson, Emirates Environmental

COMMUNITY

Lending a hand

DUBAI REAL TIMES

eople are the reason for real estate projects. When the developers and contractors have done their construction jobs it is the people who live and work in their buildings that matter. A community of folks who go about the daily routine of living their lives. Sometimes companies lend a helping hand in the comfort and happiness sector calling it Corporate Social Responsibility (CSR) or Mubadra. Imdaad, an integrated facilities management company in the UAE, has announced its support to Dubai Autism Centre (DAC) and is planning to provide free maintenance services at all its facilities. A Memorandum of Understanding (MoU) was signed between Imdaad and DAC, according to which the company will provide consultation on various aspects of facilities management, energy saving practices, recycling and environment-friendly operations to be carried out at the Centre. Mohammed Al Emadi, Director General, Dubai Autism Centre, said: “We thank Imdaad for their continuous support and believe their gesture will inspire more companies in the UAE to come forward to help us in our cause. The children here are in need of constant care and attention that can only be delivered through community initiatives.” Set up in November 2001, the Dubai Autism Centre is a non-profit organisation providing various services to children with autism, which is a most common condition in a set of developmental disorders known as the Autism Spectrum Disorders (ASDs). The Centre also works towards alleviating the suffering of

autistic children and their families through educational and therapy programmes as well as awareness projects Imdaad provides first-rate fi-

celebrated Hag Al Leilah with its employees and their families by distributing traditional presents, as well as sharing the history and the rich culture of the festival. DPG

Jamal Abdullah Lootah, CEO, Imdaad and Mohammed Al Emadi, Director General, Dubai Autism Centre

nancial management services and solutions to worldwide clients such as Nakheel, Jafza, DP World – UAE Region, Dubai Customs, Limitless, Tamweel and Wasl-DREC. Some of the key projects it has undertaken include Palm Jumeirah, The Gardens, Atlantis, International City, Jebel Ali Port, Jebel Ali Free Zone, Ibn Batuta Mall, Dragon Mart and Dubai Maritime City. Currently on a development drive after achieving groundbreaking progress in 2008 through new partnerships and projects, Imdaad has taken up the Green approach in its 2009 strategy with the launch of several projects such as “Beati,” the grand environment protection programme targeting school children and university students. Dubai Properties Group (DPG)

made a hands-on approach in celebrating the event and encouraged all of its employees to participate in the spirit of the season as part of its corporate responsibility (CR) programme ‘Mubadra’. Children dressed in Emirati flag colours were warmly greeted by DPG’s top CEOs as they visited every department in the organisation. Established in 2007, Mubadra, the CR arm of DPG, aims to contribute to the overall benefit of society by participating in community related activities. Through Mubadra, DPG looks to invest in its employees, the environment, community and the stakeholders. Hag Al Leilah is one of the most widely held traditions in the Gulf. It annually falls on the 15th day of the Islamic month Shaaban, and serves

as a reminder of the approaching Holy Month of Ramadan. During Hag Al Leilah, children visit houses in their neighbourhood and receive sweets and nuts, as a symbol of gratitude for the blessings the community has received. Fareda Abdullah, Executive Director of Human Capital of Dubai Properties Group, said: “Traditionally during Hag El Leilah, gifts in the form of sweets are handed out to children and the needy. We are delighted to have celebrated this cultural heritage with our employees and their families.” The ‘Earth’ golf course, inspired by the great parkland courses of Europe and North America, is one of Greg Norman’s two eco-signature courses at Jumeirah Golf Estates; Fire being the other. Earth is set to hold the Dubai World Championships this November. DPG celebrated Hag Al Leilah with both staff and their families

Greg Norman, Golf Professional and Designer of the ‘ Earth’ course

golf tournaments in 26 destinations around the world. Sergio Garcia, current World Number 2 and co-designer of Wind, the fourth course at Jumeirah Golf Estates, said: “The buzz surrounding The Race to Dubai has made this season one of the most exciting in living memory and the grand finale at the Dubai World Championship, where so much is at stake, deserves a golf course that will test the very best in the world. This is an incredibly impressive golf course and worthy of such an important tournament. Earth could easily be played competitively now and I’m amazed at how much it has progressed. I’m looking forward to coming back in November to play for real!” Emaar Healthcare Group of Emaar Properties PJSC, is establishing in Dubai, with facilities to open in Downtown Burj Dubai, Arabian Ranches and The Meadows. Using its partnership with Methodist International announced last year, these facilities will provide the highest international standards in healthcare delivery. Emaar’s expansion into healthcare highlights

the lifestyle developer’s aspirations to create integrated communities with services that enhance the quality of life of the residents. Mr Omar Al Shunnar, CEO of Emaar Healthcare Group, said, “Emaar Healthcare Group is dedicated to providing excellent medical facilities, manned by highlyskilled healthcare professionals and equipped with the latest technologies. With a clear commitment to deliver world class healthcare to the communities we serve, we will provide the utmost care and attention to our patients ensuring a caring

and secure medical environment with a strong focus on customer service.” He added: “The partnership with Methodist International underscores our commitment to develop worldclass facilities of the highest standards for patients. This is one of the world’s leading names in healthcare delivery and its reputation and experience complements our objectives. Through our linkage with Methodist, we will leverage their expertise in providing value added services including the ability to source second opinions from the US.”

Artist impression of Emaar Healthcare Group centres

DUBAI REAL TIMES

Renowned players, Sergio Garcia, Robert Karlsson, Justin Rose, Darren Clarke and Martin Kaymer were joined by Khalid Yousuf, three-time UAE champion and one of the Emirate’s most promising young golfers, for a sneak preview of the course, which is set to provide the supreme test for the top 60 players in The Race to Dubai who will be contending for a $10 million prize fund. Norman commented, “The last four holes fall just short of a mile and I fully expect this to be one of the most challenging and exciting miles in golf. There is great reward, but there is also great risk.” The Dubai World Championship is picking up a huge following with 35,000 fans from all parts of the globe already registered for tickets for the grand finale of The Race to Dubai. You can register for free tickets at www.dubaiworldchampionship.com The Race to Dubai started in November 2008 at the HSBC Champions in Shanghai and continued with the Dubai Desert Classic attracting a stellar field for its 20th anniversary celebrations. From as far afield as Brazil, Barbados, New Zealand and Finland, fans will be at the Jumeirah Golf Estates from November 19-22 to observe the exhilarating climax to the seasonlong competition which features 49

UPDATES // LAWS & REGULATIONS

Your questions answered by Jacqueline Latham, DLA Piper Middle East LLP

Q&A

I work for a developer of a project that is now 60 per cent complete. However, several purchasers have defaulted on the payment plan and we now want to cancel the sale and purchase contracts we entered into with them. What is the process?

DUBAI REAL TIMES

you have stated that your company’s project is 60 per cent complete, you should note that though your company may revoke the contracts if the purchasers fail to fulfil their contractual obligations within the Land Department issued notice period, your company may only retain 40 per cent of the purchase price as per the individual contracts.

Under Law No. 13 of 2008 regulating the interim real estate register in Dubai and its amending Law No 9 of 2009, your company must notify the Land Department of the purchasers’ breaches and then the Land Department will serve the purchasers with 30 days’ notice to remedy their respective defaults. If these breaches of contract are not remedied within this timeframe, then your company may cancel the contracts.

My tenancy contract is due to expire in three weeks. I have fully complied with the terms of the contract and provided my landlord with the required 90 days notice of my wish to renew the contract however, my landlord has been stalling on the grounds that he wants more rent money. Surely there is a minimum period in which my landlord must provide me with notice that my tenancy is not to be renewed?

In terms of the actual procedure, your company will need to submit applications for the cancellation of the contracts to the Land Department and the applications must be in Arabic and be signed by an authorised signatory: the status of the authorised signatory must be proved by providing a copy of his/her ID and a copy of your company’s incorporation document that names the authorised signatory and reflects his/her competency to settle disputes before any Government authority. In addition, your company will be required to submit the following documents with the cancellation applications: a copy of the sale and purchase contracts (a copy of the reservation form should suffice where a sale and purchase contract has not been signed), a copy of all the notices that your company has served on the purchasers; proof of the properties’ registrations on the interim real estate register; a copy of the percentage of the project’s completion from your company’s project consultant; a copy of the percentage of payments and milestones from RERA; a copy of your company’s and the project’s registrations at RERA; and a copy of your company’s trade licence. In respect of the project milestones achieved to date, on the basis that

Law No. 33 of 2008, which deals with landlord and tenant issues, provides that the rent can be increased or decreased where a tenancy contract is being renewed however, in the event that the parties cannot reach agreement with respect to the amount, then the Rent Committee will apply a similar rent in consideration of several factors including RERA’s rent increase percentage standards, market rent for the area and the general economic situation in Dubai. Though the Law does set out the grounds for when a landlord can evict a tenant either prior to, or on expiry of, the term of the tenancy contract, failure to agree a rental amount on renewal of a tenancy contract is not a ground. So long as you have fulfilled your obligations under the tenancy contract, if you cannot resolve the rental issue among yourselves, then the recourse available to you is to submit your dispute to the Rent Committee.

I work for a developer and we are currently in settlement negotiations with defaulting purchasers under sale and purchase agreements concerning off-plan units. I expect that

Q&A A

Once your negotiations to cancel the sale and purchase agreements are finalised by you and the respective purchaser, you should submit the following documents to the Land Department in order to remove the purchaser’s details from the interim real estate register:

• • • • • •

an application in Arabic that is signed by your company’s authorised signatory (with proof of the status of the authorised signatory as above); two copies of the cancellation agreement entered into by your company and the purchaser (one for the account trustee and one for the escrow department); a copy of your company’s trade licence and a copy of your company’s registration with RERA; a copy of the relevant sale and purchase agreement or if this is not possible, the reservation form; a copy of all the invoices and receipts that have been amassed in relation to the property in question as per the terms of the sale and purchase agreement; a copy of the receipt of the Oqood registration of the unit in the name of the purchaser; and an undertaking from both parties basically confirming that you accept the terms of the cancellation agreement, that all obligations under the sale and purchase

agreement have been fulfilled and if they have not been, then the parties accept liability for their actions in this regard and the undertaking should categorically clear the Land Department of any responsibility in the event of misrepresentation. If you are legally represented, which I imagine you are given the stage that you are at with the purchasers, then your legal consultant should be present in person at the Land Department during this process.

I have been provided with a standard sale and purchase agreement from the developer of a Dubai-based unit that I am interested in buying. I note that there is no arbitration clause in the document and as a foreign investor, I would prefer to avoid the courtroom in the event of a dispute. Is it possible to amend the contract?

It is possible for you to try and negotiate the terms of the draft sale and purchase agreement with the developer, however, you should be aware that the developer may refuse to amend the agreement if it is in its standard form and, as such, any dispute would fall under the remit of the Dubai courts. In order to be able to submit a dispute to arbitration, it is essential that this dispute resolution route is mutually agreed by yourself and the developer and that both of you have such agreement in writing, be this a clause in the sale and purchase agreement or a separate arbitration agreement. You should ensure that this has been dealt with before you enter into any agreement with the developer - even a reservation slip, since it may prove difficult and unnecessarily costly and time-consuming to amend an executed agreement further down the line. Jacqueline Latham is a Legal Consultant (England and Wales qualified), Real Estate at DLA Piper Middle East LLP, Dubai, www.dlapiper.com

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the contracts will be cancelled shortly and want to know how we can remove the purchasers’ details from the interim register so that I can re-market the units?

PROFILE

Hospitality designs

Atlantis, The Palm

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The Palace - The Old Town

48 One & Only Royal Mirage

f you ask Trisha Wilson, Founder and CEO of Wilson Associates (www.wilsonassoc.com), consistently ranked as one of the world’s top hospitality design firms, the key to her company’s success, she will tell you that international expansion has been an important factor. Headquartered in Dallas since its founding in 1971, the firm has offices worldwide to better serve clients around the globe. In fact, today, more than 90 per cent of Wilson Associates’ work is international. With offices and clients in almost every time zone, they are able to provide clients with roundthe-clock service - literally! Dubai has been the site of some of the most exciting recent projects undertaken by Wilson and her team and the rich, cultural heritage of the Middle East has helped shape the work. “We are seeing quality, elegance and luxury brought to a new level in Dubai and elsewhere in the region,” said Trisha Wilson. “Our designs build on the traditions of the past with a contemporary refinement.” Capturing the spirit of the place is Wilson’s core design philosophy. “We don’t have one look; we design for the client and for the market, incorporating the culture, traditions and topography of the project’s location,” continued Wilson. At the recently opened Atlantis, The Palm on the banks of Dubai’s first man-made island, The Palm Jumeirah, the myth of Atlantis provides a central theme for Wilson’s design. However, Moorish archways, shimmering fabrics, gold and silver tones, precious stone accents and crystal fixtures, as well as the breathtaking vistas and azure waters of the Arabian Gulf, make it distinctly Arabian. The design of the Park Hyatt Dubai, completed by Wilson Associates in late 2005,

also capitalises on its setting overlooking Dubai Creek by revealing a nautical influence. The colour palette is inspired by the surrounding landscape and architectural details are highlighted through shadow and texture, creating a calm, urban oasis. The design of The Palace - The Old Town in the centre of Dubai was completed by Wilson Associates in January 2008. There, it was fundamental that the firm work within the scheme of the Old Town development surrounding the hotel, which includes the Souk Al Bahar, a modern-day souk. This souk showcases traditional Arabic items like carpets, perfume and jewellery but with the luxury of air conditioning and other amenities. Likewise, the Palace reflects Arabic design but with a contemporary elegance. Specific inspiration was taken from Morocco, particularly the vibrant, multicultural city of Tangier. Oneof-a-kind furniture, some crafted by local artisans, along with antiques and rich colours, regional textures and shapes, work together to create a family-style city resort with an atmosphere that is comfortable and residential yet in keeping with its 5-star Sofitel rating. Other work completed by Wilson includes the One & Only Royal Mirage, on one kilometre of private Park Hyatt Dubai

coastline on Jumeirah Beach, which appears as a fortress rising from the desert sands amidst the seclusion of palm trees that encircle it. Wilson’s design brief was to utilise architectural history to design a hotel that would appear to have been built at the beginning of the 20th century. The firm worked very closely with the architects to ensure the interior spaces and building structure appeared as one seamless element. They succeeded. From its low-rise sandy walls and battlements to its serene inner courtyards and fountains, Dubai’s 5-star Royal Mirage Resort embodies an eclectic mix of historic architecture and design typical of the United Arab Emirates. Additional Wilson projects currently underway throughout the region include The Ritz-Carlton, Riyadh, Saudi Arabia; The St. Regis Doha, Qatar; The Sofitel Dubai, UAE and Park Hyatt Saadayat, Abu Dhabi, UAE. “One of the most important insights I have gained through my many years in the business is to maintain an ‘attitude of gratitude,’” concluded Wilson. “I am grateful for the tremendous projects our clients entrust with us - projects that take us to all corners of the world designing places of incredible beauty and luxury.”