Gulf Property May 2015 by Gulf Property

Gulf Property

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The region’s premier monthly for lifestyle, real estate and construction

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VOL. 7, NO. 8 MAY 2015

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Moafaq Al Gaddah Chairman, MAG Group

FREEHOLD PROPERTY Apartment prices in Dubai hit lowest in 10 years to Dh349,988!

EXCLUSIVE INTERVIEW Moafaq Al Gaddah, MAG Group Rashed Bu Qara’a, DWC Rashed Bin Dhabeah, Nakheel Ziad El Chaar, Damac

Affordable Homes MAG Group plans to build 1,000

wasl vita residences are now leasing. Residences for those who seek superior living in the heart of Jumeira.

With a total of 64 apartments and a shopping plaza on the ground level, wasl vita expertly fuses an urban lifestyle within classic, California inspired architecture. Its prominent location on Al Wasl Road connects you to many fantastic amenities and facilities – meaning you will be spoilt for choice mere minutes from your door. • 1-BR, 2-BR & 3-BR apartments with rooftop gardens • Amenities include swimming pool, separate male & female gym, kids’ play area and gated security • Carrefour market & boutique retail To lease, visit our on-site customer service centre, log on to waslvita.wasl.ae or call 800wasl (9275)

TOLL FREE IN UAE: 800 - DANUBE (326823)

Email: info@aldanube.com

Website: www.aldanube.com

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Gulf Property

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VOL. 7, APRIL NO. 7 2015

9 Edit Contents_Layout 1 14/04/2015 03:01 Page 1

EDITORIAL

Property prices in Dubai hit rock bottom, once again!

Good time to buy property as developers in Dubai have started to race against each other to bring down prices that have not only become affordable, but down to earth – to Dh349,988!

eal estate developers have started to outrace each other by bringing down property prices that have not only become affordable for the middle income group, but also very lucrative. In January this year, Danube launched apartment in its new project called Glitz with a price tag starting from Dh475,000 with an attractive payment plan of 1 per cent per month till delivery and balance upon delivery. That effectively have brought down the price barrier below half a million dirham mark for the first time in nearly ten years. However, if anyone thought that Danube’s price of Glitz was the lowest, they were in for a big surprise. In April a new developer Nshama has launched Zahra Apartments with a price tag starting from Dh349,988 for a studio, right after launching townhouses in the Town Square for Dh988,000 – bringing it below the psychological price barrier of Dh1 million for a townhouses – that was unthinkable in the past. This brings down Dubai’s freehold prices lower than those being offered in Ajman! It appears that the good times for the end-users and the middle income groups have returned to Dubai where apartments and townhouses have suddenly become more affordable than in recent past. Prices did not fall to this level even during the height of the global financial crisis that rocked the real estate market in 2008-09. So what’s happening in the market? Is there a supply glut, or is that the developers have become smarter?

Either way, it has suddenly become a buyer’s market, once again. However, if mortgage lenders start to open up their purse more wisely, then a large number of end-users could buy freehold apartments and townhouses that might trigger a massive growth in the affordable segment of the market. Nakheel, Wasl Asset Management Group and Damac – all have launched new projects that might stimulate investor appetite as these mega projects would help divert international investment into Dubai’s real estate market, once again.

Either way, Dubai’s real estate market is witnessing a major transformation as developers are responding to the market needs – rather than flood the market with luxury products where there are no takers. It’s affordable properties – that are going to dictate who survives in this competition. That’s what the market really needs now.

– T. Akhtar

CONTENTS

COVERSTORY

Wasl to develop snow fountain and vertical city in Dubai 50 Damac books Dh2.8 billion in sales in Q1 2015 58

NEWSUPDATE EXECUTIVEOPINION

Abdallah Massaad/RAK Ceramics 21 Niall Mclaughlin/Damac Properties 22 Mohanad Alwadiya/Harbor Real Estate 23

COVERSTORY

MAG Group plans 1,000 affordable homes

MEGAPROJECTS

MEGAPROJECT

Dubai World Central gets ready for the Expo 2020 magic 34 Nakheel unveils Dh14 billion worth of projects 44

Nshama offers flats for Dh349,988 66 Union Properties to fast track projects at Motor City 68

INTERVIEW

Azizi to develop 27 sites 70 Al Zorah fast-tracks Phase I 72

GULFTOURISM

Seven Tides builds Dh650 million hotel on Palm Island 76 Emirates Grand to build five hotels in Dubai 78

REGULARFEATURES Realty Bytes Realty Check Spotlight

GULF PROPERTY

The region’s premier monthly for lifestyle, real estate, construction and building materials

EDITORIAL

Editor T. Akhtar editor@panasian1.com Senior Reporter Paromita Dey p.dey@panasian1.com Senior Reporter/Sub-Editor Indrajit Sen i.sen@panasian1.com

SALES AND DISTRIBUTION Ruby Leah r.leah@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

10 16 80

LICENCE

Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC EDITORIAL AND COMMERCIAL ADDRESS Pan Asian Media MFZ-LLC P.O. Box No.: 39865. Dubai, UAE Tel : (9714) 2281021 Fax : (9714) 2281051 E-mail gulfproperty@ymail.com editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property 9

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REALTYBYTES

Select Group’s Marina Gate on track

onstruction of Select Group’s flagship project, The Residences at Marina Gate, is progressing at a steady pace with the overall development in Dubai Marina is scheduled to be completed around Q1 2019. While Marina Gate I will offer studios to 4-bedroom apartments, Marina Gate II will offer 1, 2 and 3-bedroom apartments. Hisham El Assad, Senior Sales Manager told Gulf Property that the starting price of a studio apartment would be Dh1.28 million, adding that the pricing structure for units will be aligned to the basic ‘market rate’ of Dh1,950 per square feet. g

Australian govt partners with DLD

he Dubai Land Department (DLD) partnered with the Australian government represented by the Australian Trade Commission for its promotional campaign ‘Australia Unlimited MENA (AU MENA)’. AU MENA was organised in the UAE, Saudi Arabia, and Kuwait in April. The campaign was launched in Dubai with Sultan Butti Bin Mejren, Director General of Dubai Land Department and Majida Ali Rashid, Assistant Director General offering keynote addresses on real estate sustainability. g

Gulf Property

Emaar launches Downtown Views linked to The Dubai Mall

lobal property developer Emaar Properties has launched its new residential development ‘Downtown Views’; a project directly linked to the Dubai Mall in Downtown Dubai. Downtown Views is located on a nine-storey podium, part of the ongoing expansion of The Dubai Mall, the Dubai-based developer told the media. Downtown Views, a col-

lection of only 418 residences, will feature 1, 2 and 3-bedroom apartments as well as duplex apartments at the top levels of the 55storey structure. ‘The stylish new residential destination overlooking Downtown Dubai will also be defined by high quality finishes and superior amenities’, Emaar claims in a statement. The Downtown Views apartments offer investors the choice of furnishing the homes of their choice. Sev-

eral homes offer spectacular views of The Dubai Fountain and Burj Khalifa. Downtown Views is also connected directly to the travellator that links The Dubai Mall with the Burj Khalifa/The Dubai Mall Metro station. Emaar claims that all apartments will have quality entertainment and telecom connectivity. Residents will also have assured covered parking as well as 24-hour maintenance and security support. g

Damac opens 2 hotel apartments in Dubai

amac Properties has opened two new serviced apartments’ projects in Downtown Dubai – Damac Maison The Vogue and NAIA Breeze. The Dubai-based luxury developer said, the two hotel apartments – which have a joint capacity of over 500 suites – are now open for business. The projects constitute the fourth and fifth launches for Damac in the past 14 months as it strengthens hospitality portfolio. g

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Aldar breaks ground on Ansam, Yas Island

ldar Properties PJSC has announced the start of construction of its residential development on Yas Island named Ansam. Ansam is apparently the first and only residential development on Yas Island available for purchase for both Emiratis and expatriates. The development features four apartment buildings comprising over

First phase of Hydra Avenue completed on Abu Dhabi’s Reem Island

ydra Properties, the developer of Hydra Village, announced the completion of the first three multiuse towers within the Hydra Avenue, the waterfront development on Abu Dhabi’s Reem Island. Comprising 906 apart-

500 apartments overlooking the Yas Links golf course and the Yas Island waterfront, Aldar said in a statement. The Abu-based developer claims that all of Ansam’s units were sold out on the first day of sales in June 2014 and will be handed over to owners in 2017. “This groundbreaking not only marks the start of construction of Ansam but also the start of construction of ments, the first phase of Hydra Avenue will add 945,000 square feet of real estate development and 20,000 square feet of highend retail space, to the ‘City of Lights’ master plan, the developer said in a statement. When fully complete, Hydra Avenue will consist of six towers in two main clusters with 2,292 apartments, 39 townhouses, and close to 2,500 car parking spaces across 25,000 square metres. The development will form a central part of Reem Island’s City of Lights.

our next development pipeline, which will see us launch a significant number of residential units over the next five years,” Mohammad Al Mubarak, Chief Executive Officer at Aldar Properties, said. Aldar says Ansam amenities such as barbecue areas, infinity pools, kids’ pools, gymnasiums, and multi-purpose halls to host indoor functions. g The project will comprise amenities including swimming pools, gyms, saunas, track and field, boardwalk, and social rooms. Additionally, it will house a supermarket and a number of dining outlets, shops and cafes. Hydra Properties has received the approval from the authorities for the handover of three towers. The developer has appointed Three60 Communities to carry out the formal handover process. Furthermore, Three60 Communities will manage the community facilities at Hydra Avenue. g

REALTYBYTES

Empower pools in Dh186m for Business Bay facility

mpower, the UAEbased cooling services provider, said, it has awarded a Dh186 million contract to develop the company’s third district cooling facility in Dubai’s Business Bay district. The 45,000 Refrigeration Tonne (RT) plant will be constructed by Gulf District Cooling, and is expected to become operational by Q2 2016, Empower said. The contract covers the construction and maintenance of a 45,000 RT district cooling facility, and is expected to provide cooling services to up to 40 commercial, retail and hospitality buildings. When completed, the facility will be part of Empower’s 135,000 RT network in the area. g

Theme park opens in Abu Dhabi mall

audi-based entertainment company Al Othaim Leisure launched its theme park in Abu Dhabi’s Deerfields mall in April. Spread over 60,000 square feet, Faby Land is the company’s first international venture. The indoor entertainment facility will apparently appeal to all age groups and includes F&B outlets, Al Othaim Leisure — which owns the Faby Land in Riyadh - said in a statement. g Gulf Property 11

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REALTYBYTES

Marmo pools in Dh18.5m for DIP unit

s part of its growth strategy and preparations for Expo 2020, Marmo Classic Stones Factory LLC has announced an investment of Dh18.5 million to set up a 3,000 square metre warehouse and factory facility in Dubai Investments Park. In its first six months of business, the company says it secured a Dh5 million contract. Marmo manufactures marbles, granites, onyxes, Travertine and limestone, as well as engineered stone from KalingaStone. “We’re projecting sales of around Dh9.2 million during our first 12 months of operation,” Managing Director Subodh Shah said. g

Ascott adds aparthotel to Dubai portfolio

ingapore-based hospitality brand Ascott Limited (Ascott), has secured a contract to manage its first Citadines Aparthotel in the UAE. Citadines Culture Village Dubai, which is slated to open in 2017, is Ascott’s third serviced residence in Dubai. This follows the addition of Ascott Culture Village Dubai announced in October 2014.The property consists of serviced apartments in the studio and 1-bedroom categories and will feature fullyequipped kitchens, living areas and workspaces. g

Gulf Property

Dubai Investments offers 12% cash dividends

ubai Investments PJSC [DI] has approved distribution of 12 per cent cash dividend and issue of 6 per cent bonus shares for the financial year ending December 31, 2014. A proposal to this effect was approved by shareholders at the company’s Annual General Meeting in April. It had earlier reported a net profit of Dh1.34 billion for 2014, a 63 per cent increase compared to Dh822.32 million net profit in 2013. The Net Operating

Profit for 2014 also increased to Dh1.76 billion, a growth of 42 per cent compared to Dh1.27 billion achieved in the previous year. The enterprise’s total assets as on December 31, 2014 surged to Dh14.52 billion as against Dh12.62 billion in 2013. Encouraged by its profits, the DFM-listed company plans to develop its real estate portfolio and invest in other verticals. ‘The company will also explore opportunities in existing and new geographical locations and is currently

evaluating investment proposals’, it said in a regulatory filing. As on December 31, 2014, around 57 per cent of DI’s total asset base was in the property sector and accounted for a total profit of Dh794 million. The manufacturing and contracting sector, encompassing 20 per cent of DI’s asset base, recorded a profit of Dh475.27 million, while the Financial Investments sector, constituting 23 per cent, registered a profit of Dh73 million during the year. g

Silicon Oasis unveils ‘2021 Strategy’ ubai Silicon Oasis Authority (DSOA), the regulatory body for Dubai Silicon Oasis, the integrated freezone technology park, recently launched the DSOA ‘2021 Strategy’, which it said is aligned with the Dubai Plan 2021. In a statement, Mohammed Alzarooni, ViceChairman and CEO of DSOA, said, “The strategy

is built around four pillars that are aligned with the Dubai Plan 2021: A smart city, an advanced technology hub, innovative people and a desirable society. Each of these pillars will serve as distinctive guiding principles even while collectively working to achieve the overall direction set by the country’s leadership.” Alzarooni launched ‘three initiatives that support the

government’s strategic direction to promote innovation’. DSOA has instituted an award for best ideas from employees on artificial intelligence and robotics. A cash prize of Dh100,000 will be awarded to the top three ideas. Additionally, DSOA has launched the concept of an ‘innovation stadium’ that will serve as a platform to bring the prize-winning ideas to life. g

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Nshama starts building Town Square residences

shama has awarded a deep service contract to Binladin Contracting Group for the construction of residential communities at its flagship mixed-use project Town Square near Al Barsha. The Dubai-based property developer told the media that the deep service contract —

to be executed in 180 days — covers excavation and back filling for district cooling piping network, storm drainage and main sewers, across the area that includes the recently launched Zahra and Hayat Townhouses. Nshama had late in March launched the Zahra and Hayat Townhouses and

Zahra Apartments. While the Zahra Apartments start at Dh349,988, the 3-bedroom units at Zahra and Hayat Townhouses start at Dh999,988. Sprawled over 31 million square feet, Town Square will comprise over 3,000 townhouses and over 18,000 apartments. g

Villas, 66% apartments sold in Living Legends

ll villas at the Living Legends have been sold out, developer Tanmiyat Global claimed while only 33 per cent of the apartments are now available. The project’s investors comprise of 76 nationalities with GCC residents and Europeans accounting for most of the sales. The development has also attracted Iranian and Russian investors. g

REALTYBYTES

Fashion TV to launch brand realty project in Dubai

eading fashion television channel, Fashion TV has announced it will be launching branded residences and hotels, for the first time, throughout the GCC as well as a new ‘Fashion TV City’ concept project. The location and other details of the proposed project is yet to be unveiled. Currently Fashion TV residences and clubs are under construction in Austria, India, Indonesia, Malaysia and Turkey. A Knight Frank research suggest that branded residences and projects command 58.3 per cent higher price per square foot in Dubai alone. g

Movenpick to open property in Media City

ovenpick Hotels and Resorts has announced its plans to open its first property in Dubai Media City in 2017. The 251-keys hotel will be adjacent to the ‘Innovation Hub’ launched by the Dubai Government last year. It brings Movenpick’s portfolio in Dubai to 8 properties. The property will include rooms and suites with a minimum size of 42 square metres and will also house four restaurants and lounges, a spa and a gym, among other facilities. g

Gulf Property 13

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REALTYBYTES

Hilton to launch hotels in Dubai, KSA

ilton Worldwide has announced the signing of three new Hilton Garden Inn hotels for Dubai and Saudi Arabia, according to media reports. The 336-room Hilton Garden Inn Dubai Al Jadaf is expected to open in early 2017, the 166-key Hilton Garden Inn Al Ahsa is expected to open in 2016 and the 154-guest room Hilton Garden Inn Al Khobar King Fahd Causeway is expected to start welcoming guests in 2016. Currently, Hilton Worldwide features more than 59 hotels under various stages of development in the Middle East. g

RICS unveils real estate programme

he Royal Institution of Chartered Surveyors (RICS) has announced that the first course in its Executive Education programme, the International Certificate in Leadership for Real Estate Development, is open for applications. The full course, aimed at enhancing skills of senior professionals, will be completed over 10 to 12 weeks and will include coaching sessions, a full time 5-day residential technical and leadership training; all in Dubai. There will also be a course based on the RICS Leadership Competency Framework. g

Gulf Property

GGICO launches new Topaz Residences in Silicon Oasis

GICO Properties has announced the launch of its latest real estate project ‘Topaz Residences’ in Dubai Silicon Oasis. The property development division of the Dubai-based GGICO conglomerate said in a statement that it launched Phase One of Topaz Residences, with 1bedroom apartments starting at Dh536,892. GGICO Properties also said it is offering the apartments with a 30/70 threeyear payment plan, with the balance to be paid at 2 per cent per month from completion, free of interest. The company says that units in the project will offer healthy capital growth because of the strength of Silicon Oasis ‘as a robust and growing community and the planned extension to the Dubai Metro Green Line’, which will see a new station coming up near to the com-

munity within five years. The apartment features a fully equipped kitchen. The apartments also have good finishing and interiors and

come with fitted bathrooms. Community facilities include a swimming pool and a gym with steam room and sauna. g

Dh488m

RTA contract won by Al Shafar General Contracting Co to build the Union Museum in Dubai

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IFA, Morgans tie up for Palm Jumeirah hotel

S-based Morgans Hotel Group Company has announced its partnership with Kuwait-based IFA Hotels and Resorts to launch the Delano hotel in Dubai, the brand’s first in the Middle East. Delano Dubai’s deluxe hotel apartment property will be situated on Palm Jumeirah and will form part of a mixed-used resort development known as The8.

Drake & Scull bags Dh334m MEP contract for Dubai hotel

rake & Scull Engineering (DSE), the engineering subsidiary of Drake & Scull International PJSC (DSI), has announced that it has been awarded a contract worth Dh334 million for MEP (Mechanical, Electrical and Plumbing) works on an upcoming mixed use hotel and residences devel-

The 110 apartments will include 1, 2, and 3-bedroom units with construction expected to be complete by 2017. The8, worth Dh2 billion is currently under construction and will feature both the Delano-branded hotel apartments, as well as other residential properties. IFA Hotel Investments (IFA HI) will oversee the asset management and operational aspect of the development. Launched in 2014,

The8 will contain resort-style facilities including watersports, a gym, tennis courts, a beachfront restaurant, beach cabanas, barbecue and event areas. The development is the Delano brand’s first in the Middle East. The brand’s flagship hotels are located in South Beach, Miami and Las Vegas. IFA Hotels and Resorts has sizeable projects on the Palm Jumeirah. g

opment to be constructed on the Palm Jumeirah in Dubai. Under the terms of the agreement as announced to the media, DSE will complete the supply, installation, testing, commissioning and handover of detailed MEP works for the leading hotel. The project consists of three separate buildings of G+7 floors constructed over a common basement and will include a 360-room Five star hotel and two residential buildings. The scope of work extends to the pools and associated landscaping and will

be completed by 2016. The Dubai-based construction enterprise has however not disclosed the name of the hotel. A number of hospitality projects have been announced on the Palm Jumeirah in April. “The project win adds to our strong track record in the MENA hospitality business and especially in the UAE. The hotel project award follows our previous win of the Dh395 million ‘Jewel of the Creek’ project in Dubai recently,” Ahmad Al Naser, Managing Director of DSI, said. g

REALTYBYTES

DPR partners with Picsolve to create photo facility

ubai Parks and Resorts (DPR) has signed an exclusive agreement with Picsolve International to create a photography facility within the master development. Picsolve will manage a full-range of image requirements for the multibillion-dollar leisure destination taking shape near Jebel Ali. The agreement, which is expected to bring Dh100 million in revenues over a five-year period, sees Picsolve will manage photo and video services on rides, on sets, and with characters, along with unique computergenerated experiences with GSX technology platform. g

Construction of Concourse D Dubai airport on track

ubai Airports has told the media that construction is on track for completion of Concourse D mid-year, paving the way for the full launch of a rigorous testing programme. Concourse D, when it opens later this year, will become the new $517 million home to nearly 100 airlines that currently occupy Concourse C. A total of $490 million is also being invested in modernisation of Terminal 1. g Gulf Property 15

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REALTYCHECK

Sales decline in Q1 in Dubai Gulf Property offers a snapshot of Dubai’s real estate market – both rental and freehold – to give our readers a greater clarity on the overall situation

RESIDENTIAL SUPPLY Total In 2015 In 2016

373,000 units 14,000 units 11,000 units

PALM JUMEIRAH Price Growth

Dh2,000/sqft –28%

Price Growth

Dh2,850/sqft –5%

PALM JUMEIRAH DUBAI MARINA Price Growth

Dh2,325/sqft –1%

Price Growth

Dh1,625/sqft –20%

JBR

DISCOVERY GARDENS Price Growth

Dh885/sqft –12%

THE MEADOW Price Dh1 Growth 4%

JUMEIRAH PAR

Price Dh1,1 Growth 0%

VICTORY HEIGHTS

Price Dh1,250/sqft Growth 11%

ARABIAN RANCHE Price Dh1,150 Growth –6%

Gulf Property

16-19 Property Index_Layout 1 13/04/2015 18:29 Page 2

Dubai Freehold Market

esidential sales prices in Dubai dropped significantly for apartments and villas in the fourth quarter of 2014 and the first quarter of 2015, according to Asteco – the largest rental agency in Dubai. Total apartment supply is expected increase by 12,000 units in Dubai while 2,000 villas are expected to be added this year, Asteco says. “With a substantial number of off-plan schemes launched in 2014, 2015 is likely to see a reduction in sales prices for off-plan villas and see more attractive payment plans being offered by developers,” said the market outlook report of Asteco

MEADOWS th

Dh1,350/sqft 4%

RAH PARK

Dh1,175/sqft 0%

0/sqft

RANCHES

Dh1,150/sqft –6%

THE SPRINGS

Price Dh1,075/sqft Growth –2%

n average, apartment sale prices in Q4 2014 were 22 per cent lower than in Q4 2008, but still 6 per cent higher than Q4 2013, despite having declined in the second half of 2014. The market is expected to remain depressed although renowned developers continue to enjoy investor confidence and trust. Emaar and Damac Properties are leading the sales and marketing activities. Prices peaked in Q2 2014 from the low point in Q4

Prices for completed villas are anticipated to remain stable throughout the year, and communities with minimal facilities and amenities could witness a drop in value. The Q4 2014 villa prices were stable in comparison with Q4 2013, however, prices were 30 per cent lower than in Q4 2008. Indeed, at that time, the strong levels of demand together with the lack of completed villa communities, led to extremely high prices, with Arabian Ranches trading at Dh2,200 per square foot, in comparison with Dh1,150 per square foot now, on average. “We expect transaction activity to reduce across the apartment market as buyers become more cautious. “A continuation of low oil prices as well as sanctions imposed on various countries may have an effect on

DIFC

Price Growth

2011, recording an overall increase of 75% and 60% for apartments and villas respectively. The second half of 2014, however witnessed a moderate reduction in sales prices as sellers were more willing to match buyer’s expectations. The slowdown in transactional activity was significant, with 25 per cent less transactions for villas and apartments, combined, for the year compared with 2013, according to Reidin. The slowdown was mostly felt in the second half of the

demand for high-end luxury properties, which could lead to a potential reduction in transactional activity as well as a moderate reduction in sales prices.” Following a year of rapid growth in 2013, 2014 was marked by a slowdown in transaction activity for all property types. Prices were higher and a string of new regulations by the UAE Central Bank and fees (Dubai Land Department transfer fees) made the process of purchasing property in Dubai more expensive. Therefore transaction levels may initially reduce as potential buyers adopt a wait-and-see attitude. “However, in the medium term, a price reduction will be beneficial for the real estate market as it will assist in unlocking demand from the middle income segments of the population,” he said. g

REALTYCHECK

Dh1,300/sqft –6%

year as Q4 transactions levels were down by 40 per cent compared with the same period last year. Off-plan sales slowed as buyers had a wider choice of completed products to choose from. Dubai Marina and JBR, International City, Downtown Dubai, and Jumeirah Lake Towers were the areas that had the most sales transactions for apartments in 2014. The most popular villa developments were Meadows, Springs and Arabian Ranches accounting for 50 per cent of all villa sales. g

APARTMENT PRICES VILLA PRICES

Gulf Property

16-19 Property Index_Layout 1 13/04/2015 18:29 Page 3

REALTYCHECK

Rent declines in Q1 in Dubai DUBAI MARINA

1BR Apt Dh113,000 2BR Apt Dh158,000 3BR Apt Dh210,000

JUMEIRAH VILLAGE JUMEIRAH PARK

3BR Villa Dh220,000 4BR Villa Dh290,000 5BR Villa Dh340,000

3BR Villa Dh163,000 4BR Villa Dh178,000 5BR Villa Dh210,000

JUME

1BR A 2BR A 3BR A

DISCOVERY GARDEN 1BR Apt Dh70,000 2BR Apt Dh80,000

GREEN COMMUNITY

Average Villa Rental Rates as at Q4 (AED 000’s pa)

Arabian Ranches Green Community Jumeirah Park Jumeirah Village Meadows Mirdif Palm Jumeirah Springs

Gulf Property

3BR 215 220 220 163 238 133 355 195

4BR 300 238 290 178 275 155 485 ----

5BR 343 253 340 210 310 175 725 ----

3BR Villa Dh220,000 4BR Villa Dh238,000 5BR Villa Dh253,000

SPRINGS

3BR Villa Dh195,0

16-19 Property Index_Layout 1 13/04/2015 18:29 Page 4

Average Apartment Rental Rates as at Q4 (AED 000’s pa)

Business Bay Deira Discovery Gardens Downtown Dubai Dubai Marina Greens International City Jumeirah Beach Residence Jumeirah Lakes Towers Jumeirah Village Palm Jumeirah Sheikh Zayed Road

1BR 93 65 70 118 113 83 46 118 90 65 150 113

2BR 135 90 80 170 158 148 63 163 110 103 208 148

REALTYCHECK

3BR 180 133 ---245 210 173 ----200 168 130 243 200

PALM JUMEIRAH

3BR Villa Dh355,000 4BR Villa Dh485,000 5BR Villa Dh725,000

JUMEIRAH LAKE TOWERS 1BR Apt Dh90,000 2BR Apt Dh110,000 3BR Apt Dh168,000

GARDENS 70,000 80,000

MEADOWS

SHEIKH ZAYED ROAD 1BR Apt Dh113,000 2BR Apt Dh148,000 3BR Apt Dh200,000

DOWNTOWN DUBAI

1BR Apt Dh118,000 2BR Apt Dh170,000 3BR Apt Dh245,000

DEIRA

1BR Apt Dh65,000 2BR Apt Dh90,000 3BR Apt Dh133,000

3BR Villa Dh238,000 4BR Villa Dh275,000 5BR Villa Dh310,000

Dh195,000

MIRDIF

3BR Villa Dh133,000 4BR Villa Dh155,000 5BR Villa Dh175,000

ARABIAN RANCHES

3BR Villa Dh215,000 4BR Villa Dh300,000 5BR Villa Dh343,000

INTERNATIONAL CITY 1BR Apt Dh46,000 2BR Apt Dh63,000

SOURCES: Asteco, Cluttons, Jones Lang LaSalle and Reidin

Gulf Property

20 Christian Lagarde_Layout 1 14/04/2015 16:11 Page 1

OPINION

CHRISTIAN LAGARDE

Managing Director International Monetary Fund

e are perhaps approaching the point where, for the first time since 2006, the United States will raise short term interest rates later this year, as the first country to start the process of normalising its monetary policy. Even if this process is well managed, the likely volatility in financial markets could give rise to potential stability risks. Let us think about the risks of such monetary policy “spillovers” and what can be done to minimise their potentially adverse consequences. Global growth is still fragile and uneven. Despite a boost to global growth from a decline in oil prices, we now expect the world economy to grow by about 3.5 per cent this year, picking up modestly next year to 3.7 percent. The outlook differs significantly across countries and regions. In advanced economies, growth has rebounded in the US and the UK and is expected to remain above trend in the near term, but activity is strengthening only gradually. By contrast, in the euro area and Japan, domestic demand, especially credit to

Gulf Property

Global Economy and Challenges private sector and investment, has yet to recover fully. In emerging markets and developing countries, growth is projected to pick up from less than 4.5 percent this year to a little more next year, but it will vary widely across countries as well. Among the emerging markets, India is shining brightly. No doubt India has seen a windfall gain from a sharp drop in oil prices – as have other oil importing countries. More importantly, however, India is reaping the benefits of good policies and policy announcements. The new government is skillfully shifting the focus to good macroeconomic management, clean and efficient government, and inclusive development. This has raised business confidence and hopes for all levels of Indian society, and is borne out by the latest GDP statistics which suggest a strong pace of economic activity this year and next. Yet many challenges lie ahead for the global economy. The first challenge is the recent strengthening of the U.S. dollar that has resulted from the relatively strong U.S. recovery combined with the divergence of monetary policy paths in advanced economies. This has put pressure on countries whose exchange rate regimes are linked to the dollar but yet conduct a substantial share of their external trade in other currencies, as well as on sovereigns who have borrowed in foreign currency heavily. The appreciation of the

U.S. dollar is also putting pressure on balance sheets of banks, firms, and households that borrow in dollars but have assets or earnings in other currencies. India’s corporate sector, which has borrowed heavily in foreign currency, is not immune to this vulnerability. Corporate sector debt has risen very rapidly, nearly doubling in the last 5 years to about $120 billion. The second challenge is the prospective normalisation of monetary policy in the United States and its spillovers to emerging markets. The risk of financial market and capital flow volatility, along with sudden increases in interest rate spreads, remains a real possibility as U.S. interest rates begin to rise. Unconventional monetary policies helped avoid a financial market meltdown in the initial stages of the crisis, and later supported a recovery in advanced economies and elsewhere. However, it is also true that these policies led to a buildup of risks in this part of the world. Between 2009 and the end of 2012, emerging markets received about US$ 4.5 trillion of gross capital inflows, representing roughly one half of global capital flows. Such inflows were concentrated in a group of large countries, including India, which received about $470 billion. As a consequence, bond and equity prices rallied, and currencies strengthened. Recent work by Fund staff suggests that spillovers to asset

prices and capital flows in emerging market economies from expansionary unconventional monetary policies were even greater than from earlier conventional policies. As economic conditions improve in at least some advanced economies, portfolio rebalancing out of emerging market economies can be expected, and some volatility cannot be ruled out. Emerging markets need to prepare in advance to deal with this uncertainty. There are many important lessons we have already learnt that I would like to share with you. First and foremost, advanced economies can help. Clear and effective communication of policy intentions can reduce the risk of creating very large market volatility. While admittedly it is a difficult task, I would also agree that there is scope for greater international policy cooperation to minimise the negative spillovers. Second, emerging markets need to prepare well in advance. Evidence from our research suggests that emerging markets that had already addressed their economic vulnerabilities before the taper tantrum fared better during episodes of market volatility. Third, if market volatility materialises, central banks need to be ready to act. Temporary—though aggressive—domestic liquidity support to certain sectors or markets may be necessary, along with targeted foreign exchange interventions. g

21 Masood Ahmed_Layout 1 14/04/2015 16:39 Page 1

Oil price and Algeria’s opportunity to reform

ollowing the sudden collapse in oil prices over the last six months, Algeria is facing its greatest economic challenge since the 1990s, when it was torn apart by civil war. How the country responds in the coming months will be watched closely by other countries in the Middle East and North Africa facing similar challenges. I’ve just returned from a visit to Algiers, and I was encouraged by what I heard. Unlike many of its neighbours, Algeria did not experience an Arab Spring moment, even though the key ingredients were present — notably high youth unemployment. As a major oil exporter, Algeria built up a nest egg when oil prices tripled in the years leading up to the global financial crisis. In the wake of the crisis, and amid popular uprisings in the region, the government drew on its ample savings to increase spending on public sector wages, housing, subsidies, and other programmes aimed at maintaining social stability. Although the government’s economic programme was arguably a success, the resulting strains on the system were beginning to show even before the oil price dropped. Current account surpluses began to shrink and fiscal surpluses turned to chronic deficits — even though oil prices reached new highs. At the same time, the economy was growing too slowly to significantly reduce unemployment. Oil production was declin-

Following the sudden collapse in oil prices over the last six months, Algeria is facing its greatest economic challenge since the 1990s, when it was torn apart by civil war...

– Masood Ahmed

ing, and subsidies were leading to energy overconsumption, reducing the amount of oil available for export. When oil prices began falling precipitously, these economic vulnerabilities became acute, and the need for change more urgent. During my visit to Algiers, I sensed a recognition among senior policymakers and economic analysts alike that Algeria’s current growth model needed to change. The government has long had the objective of reorienting the economy away from oil and public spending toward a model that is more diversified and dynamic, one that realises Algeria’s tremendous potential. The reality of lower oil prices could perhaps be the moment to accelerate these efforts. Change will need to start with fiscal consolidation. Like other countries in the region, Algeria will have to curb its spending both to balance the books at the new lower oil

prices and to preserve wealth for future generations. Over the past five years, spending on public sector wages doubled to about $20 billion. Simulations by IMF staff suggest that restoring fiscal sustainability will require cutting this rate of growth in half over the next five years. Fiscal consolidation will also require raising more revenues, particularly revenues that do not depend on volatile oil exports. Yet fiscal consolidation is only half the answer. Fiscal consolidation alone will not create the jobs needed in a country where a quarter of the youth population is unemployed. In our discussions with the Algerian authorities, we discussed the urgency of moving in parallel to implement reforms to stimulate private sector activity and generate new sources of growth. This means improving the business environment, opening up the economy to more trade and investment, and reducing labour market rigidities. Algerian society has always rightly prided itself for a social model that takes care of the vulnerable. And as it embarks on these reforms, Algeria must ensure that this continues to be the case. One area where this will be important is by phasing out generalised subsidies on energy and other products, which are costly and benefit primarily the well-off, and replacing them with more targeted transfers to the most vulnerable. This is a notoriously difficult and sensitive area of reform, yet other countries in the region have

OPINION

MASOOD AHMED

Director for Middle East and Central Asia Department International Monetary Fund

already begun to reform subsidies, and so can Algeria. Finally, Algeria's economy would vastly benefit from improving economic governance. According to the Global Competitiveness Report, businesses consider corruption and government bureaucracy to be major constraints. To gain support for its reform programme, the government will have to convince its citizens that it can operate more effectively. This will require a great effort to eliminate corruption and bureaucratic red tape and become a facilitator of private sector initiative. In my discussions with Algerian policymakers, there was no illusion that the road ahead will be easy. But we should remember that in some respects, Algeria is an enviable position. When oil prices crashed in the 1980s, the country experienced economic hardship, successive political crises, and, ultimately, a civil war. Today, because of its substantial financial resources, the country can afford to implement reforms gradually, but it cannot afford to let this moment pass without taking action. g Gulf Property

18 Niall Mclaughlin_Layout 1 12/04/2015 23:47 Page 1

OPINION

NIALL MCLAUGHLIN

Senior Vice President Damac Properties

t has been more than 13 years since Dubai opened its real estate market to overseas buyers, allowing freehold ownership rights to expatriates. In that time the Emirate has gone on to become one of the most attract property markets in the world – outperforming more traditional power houses such as London, New York and Singapore. As is traditionally the case with a new and immature property market however, buyers experienced a boom and bust cycle as the new system found its feet. Many investors, having made very high returns in the early years, found 2008, 2009 and 2010 a difficult period, as prices retreated due to the lack of liquidity and the fallout from the global financial crisis. Dubai showed its resilience though and has since thrived, thanks in part to increasingly stringent and transparent regulations put in place by the Real Estate Regulatory Authority (RERA), the cap on mortgages and the increase in transaction fees.

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Finding value in a maturing market Following a strong recovery there have recently been reports suggesting that prices are again set to decline, with the lower oil price a factor in the calculations. Here’s a couple of problems with those sweeping statements though. The numbers reported only reflect a single headline percentage for the whole of Dubai. There is no reference made to the different areas of Dubai, which are at varying stages of development and infrastructure implementation. Outlying off-plan projects are naturally selling at a lower price to a completed project in the Burj Area or Marina for example, and given the number of new developments, this may well be bringing down the headline valuations. Also, as the current buyer is looking to the medium to long-term, for a home to live in these buyers are often looking for slightly smaller homes, a place they can stay in for many years and build their own environment. Given the reduced square footage, the total purchase price is lower, again something which is reflected in recent reports, but not explained. It is fair to say that the regulations brought in 18 months ago are now taking effect and that the Dubai property market is maturing. The lower number of speculators and the increase in end users is seeing the real estate market make a natural progression to its next level. We have seen prices stable over the past six months and

expect this to continue in 2015. Having said all of that, there are clearly areas in Dubai which are preforming better than others. There are also sectors within the market that are performing well and which provide strong growth opportunities in the coming years. Having recently released our Q1 results for 2015 with sales of Dh2.8 billion, a number which exceeds our sales in Q4 2014, we certainly remain confident that savvy international buyers recognise the intrinsic value of luxury property in the right location at the right price. While these points are not mutually exclusive, buyers looking to live are turning to our villa communities and those looking to secure the strongest long-term valuation growth are investing in Dubai’s booming tourism market with a serviced hotel apartment, or even a hotel room. With Dubai International Airport being the busiest for passenger traffic anywhere in the world with almost 70 million people in 2014 alone, Dubai is on a huge drive to attract more visitors in the coming five years, and there simply are not enough hotels and serviced apartments to cater for them all. Dubai could hit 15 million visitors this year and that is set to grow to 20 million in 2020, with an additional five million coming during the World Expo. In 2014 Dh93.4 billion was spent in the UAE on leisure tourism alone, and in Q1 of

this year hotels in Dubai were running at 87 per cent occupancy. As tourism numbers grow, alongside the overall population, there is clearly going to be a demand for more luxury accommodation to welcome so many visitors. The emirate requires between 140,000 and 160,000 rooms by 2020, the Dubai Department of Tourism and Commerce Marketing said, while just 86 hotels with around 25,000 rooms are currently under construction, according to STR Global, adding to the current balance of 70,440 rooms in 351 hotels. So with a supply glut of around 65,000 hotel rooms, there is clear room for growth in this area. Investment in a hotel room – where you purchase the freehold to a unit and hand it back to the operator to manage on your behalf, is a relatively new investment tool in the UAE, but we have seen strong interest in our Paramount Hotels & Resorts projects throughout the emirate. This model, in addition to the more flexible luxury serviced hotel apartments, where you can choose to hand the unit back to the operator to manage on your behalf or keep it for your personal use, is allowing individual investors to access Dubai’s tourism market. These new models, in addition to market-led new developments designed for the end-user are going to be key to sustaining Dubai’s unrivalled position as one of the most attractive real estate markets in the world. g

19 Mohannad_Layout 1 12/04/2015 23:50 Page 1

Yield, Efficiency & Sustainability

s we all know, the industry in Dubai today is not in equilibrium in that the relationship between supply and demand differs greatly across segments and asset types. For example, the well-chronicled dearth of affordable housing for small families in Dubai has seen gross yields surge in the more affordable developments while the same increases have not been witnessed in the, perhaps, overly abundant luxury developments. In developments such as Skycourts, QPoint, Discovery Gardens and International City, Gross Yields of anywhere up to 10 per cent have been achievable in the past 24 months. This level of Gross Yield is virtually impossible to achieve in the luxury segment of the market while the middle or midupper segments comprised of developments such as Arabian Ranches, the Villa, Emirates Living or Greens are all seeing average gross yields of 6.5-7 per cent. Of course, one of the inhibitors to the Dubai market operating in utopian freedom was the introduction of legislation governing rental increases. Notwithstanding its likely effect in perhaps limiting gross yield growth, the introduction of the legislation was necessary from a broader economic point of view to ensure that Dubai does not price itself out of an increasingly competitive global market. Ironically, the legislation will actually assist in support average gross

yield levels in the long term by ensuring that the costs of living and doing business in Dubai is globally competitive, conducive and supportive to ongoing economic expansion and population growth. The differences in average gross yields is not limited to relatively young and emerging industries such as the UAE. According to RealtyTrac the leading source for housing data in the USA, its Q1 2015 Residential Property Rental Report which ranks the best USA markets for buying residential rental properties in the first quarter of 2015 revealed significant discrepancies in gross yields being generated on the macro regional level, and the state and county levels also. The 516-county analysis found an average potential return on rental properties of 9.04 percent in the first quarter of 2015, down slightly from an average potential annual return of 9.06 percent for rentals purchased in the third quarter of 2014 — the most recent rental property report issued by RealtyTrac. While this average may appear to be high, remember that the USA is one of the few economies in the world to be growing at any significant pace and yields can be eroded significantly by federal, state and local taxes. The range of gross yields in the report was expansive with Atlanta – Sandy Springs – Marietta in Clayton County in Georgia achieving a gross yield of 25.83 per cent while San Francisco achieved only 3.39 per cent. Even within macro regions the variances

were significant with New York County generating only 2.5 per cent while nearby Suffolk County generated 7.93 per cent. The reasons for such variances in gross yield are many. Factors such as socio economics, micro economics, real estate cycles, workforce mobility, net migration and federal, state and local fiscal, monetary and development policies all have a significant bearing on the supply and demand equation in real estate. A close look at gross yields can also reveal a number of insights. It can provide a retrospective view or learning opportunity by revealing how accurately market factors were comprehended, analysed, forecasted and modelled when planning a particular development; it can highlight inefficient and costly construction methods and techniques, future price / revenue adjustment opportunities, new segment or geographic concentration opportunities; it can reveal superior (or inferior) sales, branding and marketing techniques or superior product attributes or impending revenue and eventual margin pressure where yields appear a little too extravagant when compared to the market or even where an industry is with regards to its cycle. Gross yields can also highlight inefficiencies because inefficiencies, unless corrected, must be eventually supported by either attempting to increase gross yields or reducing Net Yield. For example, gross yield on a 2 bedroom apartment in

OPINION

MOHANNAD ALWADIYA

Managing Director Harbor Real Estate

the Dubai Marina would be about 7.5 per cent and, assuming a service charge rate of Dh15 per sq.ft., and normal maintenance requirements are met, net yield would not be less than 6.0 per cent or a 20 per cent reduction from the average gross yield. When considering that 20 per cent of the average gross yield is being sunk into what are effectively operating costs, efficiencies can be called into question. Property investors in Dubai are fortunate in that there is no taxation as the absence of these additional cost burdens from the net yield equation creates opportunities for globally competitive yields. However, it can also mask excessive service charges. No doubt, once more owners associations are established, operational and assume legal status, the opportunities for generating greater efficiencies will develop as owners associations become more adept and empowered in managing properties and, as a result, more efficient and effective service providers are appointed to provide more cost effective building maintenance. Dubai has a bright future ahead … we in the industry can make it brilliant!! g Gulf Property

24-33 MAG_Layout 1 14/04/2015 03:26 Page 1

COVERSTORY

MAG develops Dh10bn worth of projects

Gulf Property Exclusive

ubai-based diversified conglomerate Moafaq Al Gaddah (MAG) Group is planning to roll out a large cluster of affordable homes – to the extent of more than 1,000 units – that will fulfill the housing needs of UAE residents and help to rebalance the country’s real estate market, a top official said. The company, which has so far delivered Dh 5 billion-

Gulf Property

worth of properties, has an additional Dh 5 billion-worth of projects under various stages of construction and development and a further Dh 5 billion of real estate under planning to be executed by 2020, Moafaq Al Gaddah, Chairman of MAG Group, told Gulf Property in an exclusive interview. “As a major player in the UAE economy, we have found a gap in the country’s housing market – affordable homes – and have decided to do our bit to help fill this by developing a considerable number of reasonably priced properties for middle income

groups,” Moafaq Al Gaddah says. “Over the last few years, we have seen a trend of more and more end-users buying properties with the help of mortgage providers. Speculators have disappeared from the scene, so, the market has changed for the better. We now see real demand from real buyers this is the best time to focus on these true consumers and build homes for them,” he adds. MAG Group, which encompasses more than 50 companies, has continued property development despite being

affected by the global financial crisis of 2008-10. It operates in a number of economic verticals, including trading, auto parts, accessories, shipping and logistics, manufacturing, pharmaceuticals, construction, real estate and investment. Dubai’s roller-coaster journey in real estate since the opening of the freehold market to foreigners in 2002 has focussed on luxury and super luxury properties, ignoring the emirate’s silent majority — the middle income groups — who have been battered by rent-related

24-33 MAG_Layout 1 14/04/2015 03:27 Page 2

COVERSTORY “Leadership is the ability to translate vision into reality...”

– Moafaq Al Gaddah Chairman MAG Group

His Highness Dr Sheikh Sultan Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah received Maher Maso, Mayor of Frisco, Texas, and Moafaq Al Gaddah, Chairman of MAG Group to discuss issues related to business and economy

inflation and forced to migrate to Sharjah, putting additional pressure on the infrastructure. Between 2005-2008, a large middle income group left Dubai to live in Sharjah and Ajman, a phenomenon that resulted in pressure being put on the Dubai-Sharjah highways. That period saw Dubai become unaffordable to a large section of the population, many of whom had to move elsewhere or send their families back home. “Earlier, along with most other developers, we built homes for the top echelons

of society, driven by the then market demand that was motivated by profits,” Gaddah says. “However, as the economy has stabilised and matured, we feel that we have a social obligation to support the needs of the country’s citizens and residents – the wider consumer base.” Dubai Government is undertaking initiatives to expand affordable housing for the emirate’s struggling middle income groups, that if materialises, will help increase domestic consumption as well as help accelerate the emirate’s economic growth, currently

growing at 4.5 per cent. Jones Lang LaSalle’s report estimates that there remains a combined shortage of more than 3.5 million affordable dwellings across the major markets within MENA and that demand will continue to outstrip supply for at least the next five years. “The widening gap between the demand and supply of affordable housing in the GCC countries is pressing the governments in the region to have a closer look at the issue and implement steps to address the problem of housing the region’s low and middle income group on

an immediate basis,” according to a report by Kuwait Finance House Markaz. In a recent report, global accounting firm Ernst and Young said, “Affordable housing has always been part of Gulf nations’ housing policy statements. ‘A good home for every citizen’ has been part of the national social contracts and until roughly fifteen years ago that was a promise governments could keep. In the last decade and a half, however, governments have been falling behind: the systems in place, which used to be effective, cannot keep up with growing and diversifying economies and the long-predicted boom in urban population. “Unless MENA’s public and private sector leaders change their strategies, the growing crisis of affordable housing will become a major long-term problem that leads to widespread social dissatisfaction.” Dubai Municipality recently announced that it will encourage large developers to dedicate 15-20 per of their developments for affordable housing. The move will not only bring back the residents the emirate lost to its neighbouring cities — namely Sharjah and Ajman — but also help attract more people. Gulf Property

24-33 MAG_Layout 1 14/04/2015 03:27 Page 3

COVERSTORY

His Highness Dr Sheikh Sultan Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah received Maher Maso, Mayor of Frisco, Texas, and his accompanying delegation including Moafaq Al Gaddah, Chairman of MAG Group. Sharjah Ruler welcomed the guests and exchanged cordial talks on issues of mutual interests in the economic and investment fields. Sheikh Sultan received the keys of Frisco City in recognition to his exerted efforts in boosting co-operation between Sharjah and Frisco City. He is seen holding talks with Maher Maso and Moafaq Al Gaddah

“So, we have decided, as a responsible organisation, to support the government’s vision based on the new realities and develop affordable housing. This will not only help rebalance the country’s real estate market, but also help economic growth,” Al Gaddah says. In a city where many companies provide housing allowance for staff, the rising cost of shelter has turned into a burden. That pushed some employers, such as Emirates airlines, to build their own compounds. In 2011, the carrier bought land to build 528 homes to house

Gulf Property

its pilots. Colliers International, a U.S.-based property broker, estimates that about half of Dubai’s population, excluding the lowest earners such as construction workers and maids, earns 9,000 dirhams to 15,000 dirhams ($2,450$4,083) a month. Based on the U.S. ratio that rent or mortgage payments shouldn’t exceed 30 percent of household income, housing costs should range from 32,500 dirhams to 54,000 dirhams a year. “At a corporate level, we felt that affordable housing could help accommodate

and offer greater convenience to our employees, who currently spend a lot of time commuting. However, our project will have a wider reach beyond just our group employees,” Gaddah explains. The development will be constructed in phases and the company is expected to make an announcement about it in the coming months. MAG Group’s trading arm earlier reported an annual turnover of more than Dh800 million, a market presence in more than 90 countries and a forecast for further expan-

sion. In an exclusive interview, Moafaq Al Gaddah, Chairman of MAG Group, elaborates his views on a number of areas in the real estate sector. Excerpts:

Gulf Property: What is your view of the current economic situation in the UAE and Dubai in particular? Moafaq Al Gaddah: The UAE economy has the potential to grow at faster than 4.5 per cent, which is the bare minimum. If we all play our roles in meeting the growing de-

24-33 MAG_Layout 1 14/04/2015 03:27 Page 4

COVERSTORY

At A Glance Dh5 billion

worth of projects delivered by MAG Group so far

Dh10 billion

worth of projects are in various stages of development and planning

Dh800 m

annual turnover of MAG Group’s trading arm

2,300

residential units are under development by MAG Group

1,300

residential units have been delivered by MAG Group

mand, then I do not see any reasons why this country’s economy can’t grow beyond 4.5 per cent, as it has the best hard and soft infrastructure, global connectivity and is one of the best regulatory environments in the world. The government has improved the ease in doing business by placing its services firstly online and then at our fingertips with smartphones, thereby reducing administrative bottlenecks. Business processes in this country are the most fast and efficient in the world, so the economy could – and should – grow at double the speed.

How do you see the global events affecting the UAE’s business in general and Dubai’s in particular? The UAE as a country and Dubai as an economic hub are inter-connected to the global economy. Whatever happens elsewhere - be it a regional development or crisis or a global development, such as the weakening of the Euro, Dollar, gold or falling oil prices, all have a knock-on effect on the UAE and Dubai economy. Having said that, the country has demonstrated surprising resilience

over the last two and a half decades and managed to grow amid challenges, both regional and global. Despite the crises in Ukraine and Russia, as well as in Greece, along with the falling value of the Euro and declining oil prices, I do not see any reason to be concerned. Yes, these factors affect businesses, mostly in a negative way, but the UAE seems to habitually overcome them. . What is your view of the current real estate market in the UAE in general and Dubai in particular?

Over the last few years, we have seen a trend of more and more end-users buying properties with the help of mortgage providers. Speculators have disappeared from the scene, so, the market has changed for the better. We now see real demand from real buyers. This is the best time to focus on these true consumers and build homes for them. The new reality demands that we build homes for real consumers, not just investors. There has to be a natural shift in target audience which will drive future demand. Affordable housing is this shift. The real estate sector in the UAE will play a complementary role to the UAE’s overall economic development. My view is that it will support the growth of the overall economy, but not lead it.The mega projects anGulf Property

24-33 MAG_Layout 1 14/04/2015 03:27 Page 5

COVERSTORY

Moafaq Al Gaddah, Chairman of MAG Group

nounced by the government in the recent past will help the real estate sector to grow and complement the overall development of the economy, but real estate will be a follower, no longer a driver of the economy. With regards to the current situation, the real estate market is under pressure, which I believe is a temporary lull. The decline in property prices and rents are a natural correction from the 30-40 per cent jump in the late 2013-14 period, which market funda-

Gulf Property

mentals could not hold. The market is correcting itself and will settle to a price range that the market fundamentals can accommodate. It will eventually fully come back when economic growth starts to accelerate. Despite the current market situation, we at MAG Group are committed to carry on with our projects. Real estate is a long-term investment and one should not look at short-term challenges. We are here for the future and believe in the UAEâ&#x20AC;&#x2122;s eco-

nomic miracle. The current situation in the real estate market is a temporary adjustment that will bring prices and rents to a more realistic level, which is good for everyone. As far as the MAG Group is concerned, we are going ahead with our commitment to develop projects that we have recently outlined. During the last eight months, we made announcements to develop six projects worth Dh11 billion (US$3 billion), part of our Dh15 billion planned de-

velopments previously highlighted. Once completed, the six projects will deliver 2,300 units â&#x20AC;&#x201C; mostly residential â&#x20AC;&#x201C; in addition to our four projects delivered so far that have 1,300 units. What about the impact of the low oil price? Are you worried that this might affect businesses further? The UAE has made its economy free from the effect of oil shocks, so, I am not concerned about the current oil

24-33 MAG_Layout 1 14/04/2015 03:28 Page 6

MAG 218 standing tall at Dubai Marina

COVERSTORY “Everybody has the right to dream, but in order to transform these dreams into reality, we need enterprises and human potential able to weave the threads of expertise, ideas and information together, and transform them into the fabric...”

– Moafaq Al Gaddah Chairman MAG Group

price. We were able to run our business successfully even at a time when oil prices hit a rock bottom of $10 to $12 dollars per barrels in the 1990s. In those days, the UAE’s reliance on oil was much greater. Oil used to represent near half of the country’s gross domestic product (GDP). We have since come a long way. Now oil represents less than a third of the UAE GDP and oil price is not as low as it has been. To cut a long

story short, yes – the current oil price might have an impact on certain businesses, but its overall effect will be much less. If the low oil price lingers for much longer, then oil dependent economies in the region might have reasons for concern, but not the UAE. Oil prices are heading in the right direction. I think a crude price range of $70-$80 a barrel serves everyone best. High oil prices of $100+ per barrel are not good and definitely not sustainable.

The recent crude price decline provides a salutary wake-up call for countries that are too dependent on oil. They need to start diversifying their economies in the same manner as the UAE has done. With the current downward movement in the market, are you revising your investment strategy? We are here for the long haul and believe in the economic miracle of the UAE. There will always be minor

hiccups in various economic sectors based on the demand-supply situation. We have been through these a few times in the past, so are not unduly worried about them. As a business entity, we are well diversified and have large operations across the Middle East and the United States. Real estate is only one part of our business - we have enough resources to cushion a shortfall in any area. Growth and decline are part of the economic cycle of every sector. We have overcome the biggest economic challenges in our time, so are not going to change our long-term strategy because of small fluctuations in the market. How many projects are currently under development and planning and Gulf Property

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what would be the estimated value of these projects? Our delivered projects portfolio is around Dh5 billion. We have projects worth Dh5 billion under development and a further Dh5 billionworth of developments at the planning stage. As we move along with the economy, we will roll out more projects in line with the government’s economic vision and market demand. MAG Group’s projects under implementation include the Dh2 billion multiphase project; Polo

Gulf Property

Residence, which is located in the heart of the Meydan City and comprises 106 townhouses and a residential community spread across 29 five-storey apartment buildings. We have a Dh750 million residential project in Sharjah, the Dh700 million Art Centre in Barsha, the Dh865 million City of Arabia residential project, a Dh500 million MAG residential tower in the Burj Khalifa area, the Dh100 million MAG Logistics plant in Jebel Ali and the Dh180 million MAG 226 residential tower in Jumeirah Village.

The first two of MAG Property Development’s new projects are being designed by Chicago-based Skidmore, Owings and Merrill LLP (SOM), which designed the Burj Khalifa. SOM will be lending its renowned expertise to the development of two properties, MAG 1978 and MAG Luxury. MAG 1978, located in Business Bay will be MAG’s Headquarters and will include 218 ‘holiday home apartments,’ while MAG Luxury situated in Burj Khalifa District will comprise 62 apartments and lavish fa-

cilities.

You have also gone international – in your investment through IGO. Could you kindly shed some lights on your international investment? Yes, we are closely working with the local authorities in Fresco, Texas on the necessary paperwork and approvals for the Gate project. In the USA and the West, such processes take time to receive clearance. The Gate project was launched in September last year by Investment Group

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COVERSTORY Since the beginning in 1978, we have been enriching ourselves by expanding on and improving our essential values: straightforwardness, integrity, creativity and innovation…all of which go hand-inhand with expertise and quality.

– Moafaq Al Gaddah Chairman MAG Group

Overseas (IGO), a subsidiary of MAG Group. With a total investment of $750 million (Dh2.75 billion), The Gate features 17 buildings and seven villas spread across a vast area. The Gate’s four and fivestory residential buildings are suited to the urban living requirements of professionals and young families, with its 10-storey buildings offering more luxurious apartments. At street level, there are numerous possibilities for shopping and leisure, with many shops and restaurants on the ground floor.

Frisco is one of the fastest growing U.S. cities whose fame began in the late 1990s, when the northern suburbs of Dallas experienced explosive growth, causing a spill of people into its territory. Located about 25 minutes north of Dallas, Frisco has become a comfortable home for professionals who work in the Dallas-Fort Worth Metroplex. The Gate is conveniently located adjacent to other Frisco neighbourhoods and is expected to be big drawer for sports fans, with the new training ground of

the Dallas Cowboys nearby. From our side, we will start the project as soon as we have the necessary permissions to commence work.

In the coming years, will you increase your investment further in Dubai and the UAE? Yes. As indicated earlier, we are developing Dh10 billionworth of projects in the next five years, including Dh5 billion-worth of projects that are already underway. Among the group portfolios – which is the biggest

contributors? Real estate has outperformed all others within the group, followed by trading, industries and services, which includes shipping and accessories.

Do you plan to venture into hotels, shopping complexes and mixed-use developments? We have already invested in hospitality projects. We intend to venture into largescale, mixed-use projects, which will form part of our overall development programmes. g Gulf Property

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Moafaq Al Gaddah: A visionary entrepreneur

oafaq Ahmad Al Gaddah, a selfmade Syrian entrepreneur, billionaire businessman and a philanthropist, was born in 1962. He founded MAG Group as in 1978 in the UAE that has grown to become a conglomerate of 20 large companies employing more than 2,000 people and operating in a number of economic verticals including trading, auto spare parts and accessories, manufacturing, shipping and logistics, fuel, pharmaceuticals, construc-

Gulf Property

tion and real estate. A true rags-to-riches story, Moafaq Al Gaddah, Chairman and Founder of the MAG Group, has risen from humble beginnings in Syria to head an all industry business empire that spans the globe. Moafaq started out on his incredible journey in 1976 when he was just 15 years old, by moving from his native Syria to Kuwait to be with his father and assist in the running of the family’s small trading concern. After three years, he relocated to Abu Dhabi to found a spare

parts company. He rapidly expanded his business by branching into the automotive parts field, buying up stakes in the companies that he was a distributor for. Showing a level of prescience and foresight that has been a hallmark of his achievements over the years, he diversified into the field of oil and lubricants with the setting up of the MAG (Moafaq Al Gaddah) Group in 1983 – a shrewd move that capitalised on region’s natural resource of ‘black gold’. In a further inspired ini-

tiative, Moafaq relocated MAG Group’s headquarters to Dubai in 1992, recognising that the emirate was the key to accessing many other regional markets. The transition saw MAG Group capture 5 per cent of the trading market in its sphere of operations. The start of the century saw Moafaq developing a nascent interest in real estate through the acquisition and sale of land in the UAE, a period that also saw him expanding his interests in the manufacturing market with the opening of factories

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“I believe that success belongs to those who dare to dream first, then set a plan and finally work on realising this plan and its objectives...”

– Moafaq Al Gaddah Chairman MAG Group

under the MAG brand. His success in the sector prompted him to move into real estate in what was a natural and organic transition.

To facilitate real estate development in his group, MAG Property Development (MAG PD) was founded in 2004, with its first projects being MAG 214 in Jumeirah Lake Towers and the construction of warehouses in Sharjah and Abu Dhabi. To date, MAG PD has completed several premium developments, including the flagship Emirates Financial Towers, a landmark building at the Dubai International Financial Centre. The Group has a further six construction projects currently underway. Moafaq’s move into real estate development saw him undertake a number of initiatives in his homeland of Syria through his Invest Group Overseas (IGO), a division of MAG Group, which collaborated with Emaar Properties in the construction of the US$1.5 billion Eighth Gate Project. Keen to become involved in developments that would support the social fabric of

MAG Group

he Moafaq Al Gaddah (MAG) Group is a multinational conglomerate based in Dubai, UAE. The group’s portfolio currently includes real estate, contracting and engineering, industrial and commercial trading, shipping, freight services, and hospitality. Founded in 1978, it is one of the largest corporations in the region, maintaining a prominent position of leadership and pioneering among its peers. The MAG Group is a pow-

his country, MAG Group embarked on construction of the European International University in Damascus, which was completed in 2006. Moafaq’s current project to improve the welfare of Syrians sees he is the owner of MAG Pharmaceutical Industries and Massoud & Gaddah in Syria involved in the building a pharmaceuticals factory, which will increase access to cheaper medicines for the population once completed. Moafaq’s phenomenal achievements have resulted in him being the head of an organisation that from inception has grown to include more than 20 companies employing over 2,000 people around the world. The company has an extensive overseas reach with MAG offices in China, Turkey, Iraq and USA. This spectacular level of growth and success in under 40 years is not only attributed to Moafaq’s hard work perseverance and vision, it is also down to his incredibly high ethical standards. Throughout its expansion and movement into new industry sectors, MAG Group

erful and vibrant company that employs more than 2,000 personnel working in more than fifty companies and branches throughout the Middle East and North Africa (MENA) region. Of paramount importance to the company philosophy is the affirmation that work volume is but one of many indexes of progress and development, where a constant strive for customer satisfaction and ensuring high-quality work are equally important. Together, all these factors contribute to expanding the Group’s horizons and bolster its drive force. g has developed an enviable reputation for integrity, transparency and financial probity in all its operations.

Accolades

Moafaq’s accomplishments over the years have garnered him and his organisation a wealth of accolades and awards. In 2006, he was named ‘Entrepreneur of the Year’ at the Arabian Business Achievement Awards, one of the most prestigious and respected business awards programmes in the region. He was appointed as the first Ambassador of the Arab Family in 2007 and in the same year was listed in the Top 50 most wealthy Arabs. In 2012, he was ranked 16th in the list of ‘World’s Most Influential Arabs’ and was entered onto the World Finance 100 List. Under Moafaq’s stewardship, MAG Group became a Member of the World Economic Forum 2014 (GCC Membership) – an honour that acknowledged the highest level of management in his company. Moafaq is a Member of the

COVERSTORY

Board Syrian Business Council in the UAE and a Member of the World Economic Forum (Davos) for 2014.

Philanthropy

Moafaq’s experience in building a business empire from starting out with so little has given him a unique insight into those who are less fortunate in society. He has never forgotten his roots and now that he is in a position to give back, has become one of the region’s most generous benefactors. Committed to philanthropy in the region, Moafaq has made numerous financial contributions to local charities. His many activities have included the setting up of a number of educational scholarships for Arab students and the support of Arabic language and culture through the sponsorship of conferences and seminars conducted through the League of Arab States. The organisation also hosts the first fund for enabling the Arab family, another initiative that Moafaq founded. Moafaq continues to inspire every day through his hands-on work ethic and his need to be in touch at a personal level with all of MAG Group’s numerous interests and projects across the world. At his desk by 8:30am every day, Moafaq has no intention of slowing down. He remains committed to growing the MAG Group, pushing new business boundaries and continuing as a pioneer in every one of his industry fields. g Gulf Property

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Dubai World Central prepares for Expo 2020

Indrajit Sen Senior Reporter ubai World Central, the Dh110 billion greenfield airport city sprawled over 145 square kilometres, has recently signed an agreement with the InterContinental Hotels Group to develop two luxury hotels — a 450-room Holiday Inn and 250-room Staybridge Suites within the mammoth Dubai World Central (DWC) mega project, Gulf Property can reveal.

Gulf Property

DWC has also signed an agreement with Dubaibased luxury property developer Damac Properties to build two other hotel apartment projects, a senior official told Gulf Property. These developments comes more than a year after the developer of the world’s largest greenfield airport city assigned Emaar Properties to develop the DWC Golf District and a high-end luxury residential area, a senior official said. “We have begun projects in the hospitality sector and signed several agreements

with industry players,” Rashed Bu Qara’a, Chief Operating Officer of Dubai Aviation City Corporation — developer of the DWC, revealed in an exclusive interview. “An agreement between InterContinental Hotels Group (IHG) and Abjar Hotels International will see a 450-room Holiday Inn and 250-room Staybridge Suites built at Dubai World Central by the first quarter of 2018,” Bu Qara’a said. The 145-square kilometre DWC is ten times larger than Dubai International Airport

— currently the world’s biggest airport hub for international passengers — that covers 14 square kilometre land parcel. DWC has been split into six districts — Residential District, Commercial District, Golf District, Logistics District, Aviation District and Dubai Exhibition City. All of these will be surrounding the centrepiece airport project — Al Maktoum International Airport – that has a design capacity to handle 200 million passengers annually. The Residential District has a design capacity for

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MEGAPROJECT The original master plan of Dubai World Central when it was launched in 2006

1,100 low- to mid-rise buildings when planned; while the Commercial District will see the development of 850 high-rise towers. The Aviation City will see the development of a Maintenance, Repair and Overhaul (MRO) as well as education, training and manufacturing of aircraft components and spare parts clusters. Although the overall development of the master plan was affected by the global financial crisis of 2008-10, the government is developing it as per the growth in its aviation and tourism sectors.

DWC has a design capacity to host more than a million people who are expected to live and work within this city-within-a-city. DWC was launched by Dubai Government in 2006 due to the accelerated growth in passenger traffic through Dubai International Airport powered by Emirates Airline. Dubai International Airport, till then had a design capacity to handle 60 million passengers — which was exhausted in 2012 when it crossed the 60-million mark. The accelerated growth in passenger traffic had

prompted the Department of Civil Aviation to work on a two-way expansion strategy — to increase capacity at the existing airport as well as develop a new airport in Jebel Ali. As a result, Dubai government decided to invest Dh28 billion (US$7.8 billion) at the Dubai International Airport to boost its capacity to 90 million by 2017 while at the same time, started developing the masterplan for the US$30 billion (Dh110 billion) Dubai World Central and Al Maktoum International Airport (AMIA) as its centrepiece which started cargo

operations in 2010 and passenger services in 2013. According to the plan, as traffic throughput increases at Dubai International Airport, flights will progressively be diverted to AMIA from 2018 onwards when Emirates will also start shifting its flights to the new airport. However, the UAE’s winning of the bid to host World Expo 2020 in Dubai in November 2013 has strengthened focus on the DWC and AMIA as the government had earmarked part of the mammoth DWC for Expo 2020 site — that is expected Gulf Property

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The Business Park District at Dubai World Central

to draw 25 million crowd in six months. This calls for the development of a strong logistics base and connectivity to the site for ease in public movement. It is widely expected that Emirates Airline might shift its entire operations to AMIA before the Expo 2020 begins — that might require a dedicated bonded metro rail connection between both the airports located 50 kilometres apart for fast-tracking transit passengers. Dubai’s Roads and Transport Authority (RTA) has already chalked out plans to extend Dubai Metro to the

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AMIA and Expo 2020 site for commuters. Due to the Dubai Expo 2020, the DWC and its adjacent communities are expected to witness rapid construction activities for residential, commercial and hospitality properties. In addition to the DWC, Dubai Investments has announced the development of eight hotels comprising 2,000 guest rooms to accommodate the additional tourist flow at the neighbouring Dubai Investment Park. Wasl Asset Management Group last year announced the development of 19 hotels

including 15 new – to cater to the anticipated tourist flow. Dubai’s hotels cater to more than 11 million guests per annum which is expected to grow to 20 million by 2020. Meanwhile, DWC has recently revamped its airport masterplan for AMIA and increased its total passenger capacity to 200 million from the initial design capacity of 160 million. This move is expected to serve Dubai well when the 90 million passenger handling capacity of the Dubai International Airport (DXB) is exhausted by 2020 — a year when Dubai hosts World Expo and when pas-

senger inflow is expected to exceed 125 million. Besides, local and international businesses alike are finding the vast free zone inside DWC an attractive destination to operate out of. “As a result we have already several organisations from MNCs (Multi-National Corporations) to SMEs (Small and Medium Enterprises) that have chosen DWC as their home base including Emirates Sky Cargo, Dnata, Nestle, Landmark Group, Aramex, IKEA, DHL, Kuehne + Nagel, RSA Logistics, Falcon Aviation and DC Aviation,” Bu Qara’a says.

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Rashed Bu Qara’a, Chief Operating Officer, Dubai Aviation City Corporation

The logistics and civilian air traffic facilities, boosted by AMIA suggest that DWC will not just prove to be a healthy revenue earner for Dubai, but also generate employment. “It is estimated that for every 1 million passengers that fly through an airport, there are 1,000 jobs – direct and indirect – created locally,” Bu Qara’a quips. In a wide-ranging interview, Rashed Bu Qara’a, Chief Operating Officer of Dubai Aviation City Corporation — developer of the DWC — who is at the helm of DWC’s hectic activities, explains his organisation’s mammoth

game plan for Gulf Property readers. Excerpts:

Gulf Property: Could you give us an overview of the Dubai World Central? Rashed Bu Qara’a: Dubai World Central as an initiative by the Government of Dubai was launched in 2006. It is aligned with Dubai’s Strategic Plan 2021, which envisions Dubai as the preferred city in which to live, work and invest. In line with this vision, Dubai World Central was master planned to represent the future face of the emirate. Spanning across ap-

proximately 145 square kilometers, it is designed to ultimately house a million people. It also hosts the nowoperational Al Maktoum International Airport – the world’s largest airport when complete – and is also the future home of the Expo 2020. Being a full-fledged city, our aim is to provide the full spectrum of urban infrastructure and facilities including utilities, residential, commercial, retail, sports, recreational, education and healthcare. We also strive to provide an attractive community setting not only for professionals who work at DWC

but also for individuals and their families who may choose to live and work here. One of DWC’s unique value propositions is its location within Dubai, as well as its enabling environment that maximises ease of doing business. We have a wide range of partners located here – from multinationals to SMEs. Our dedicated free zones within the Aviation and Logistics districts as well as the Business Park Free Zone area offer an ideal business environment for companies looking to tap into global markets. Gulf Property

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MEGAPROJECT “We believe that DWC’s strategic location would not only be beneficial for those working in DWC but also for the thousands of daily commuters between Sharjah and Dubai as well as Dubai and Abu Dhabi.”

– Rashed Bu Qara'a, Chief Operating Officer, Dubai Aviation City Corporation

How are you approaching the building of such a massive project? How many phases will this development be completed in? Work is being done in several phases, starting with the development of the necessary infrastructure and facilities that would support the airport and the businesses reliant on airport activity. The initial key components of Dubai World Central have therefore been the Logistics District, the Aviation District and the Business Park Free Zone. This involved creating the right infrastructure and prod-

Gulf Property

ucts in order to attract key industry players to come and operate out of these areas. As a result we have already signed up several Multi-National Corporations and Small and Medium Enterprises that have chosen DWC as their home base including Emirates Sky Cargo, Dnata, Nestle, Landmark Group, Aramex, IKEA, DHL, Kuehne + Nagel, RSA Logistics, Falcon Aviation and DC Aviation. This is very important as it establishes an industrybased and knowledge-based ecosystem which ultimately generates jobs. It is esti-

mated that for every 1 million passengers that fly through an airport, there are 1,000 jobs – direct and indirect – created locally.

Tell us about Al Maktoum International Airport. What is the rationale behind Dubai having a second airport? Is AMIA meant primarily for commercial/ logistical use, with less emphasis on civilian/passenger air traffic? The rationale behind Dubai creating a second, much larger airport is anchored in its own aviation and logistics success story, which trans-

lates into the ever-pressing need to create more passenger and cargo capacity. Dubai is popular as a convenient connection point for flights between the east and the west. Today, Dubai International Airport comprises three terminals with a combined capacity to handle 75 million passengers per annum. Around 70.5 million passengers passed through its gates in 2014, and by 2020, a projected 126.5 million passengers shall. Hence, the need for Dubai’s second airport sited about 50 kilometers away from Dubai International Airport.

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MEGAPROJECT At A Glance

Dh110 billion

development value of Dubai World Central when unveiled

Dh28 billion

being invested at the existing Dubai International Airport

145

square kilometre area covered by the DWC

200 million

passenger handling capacity of Al Maktoum International

1 million

population of DWC when completed

25 million

tourists to visit Dubai Expo 2020 at DWC An artist’s impression of the Dubai-Expo site

As I’ve mentioned earlier, Al Maktoum International Airport will be the largest airport in the world when complete. Its five runways will fly more than 200 million passengers and 12 million tonnes of cargo each year. Around the world, we find that major airports have reached capacity and are struggling to expand for several reasons. This not only places a strain on the airport, but also hinders economic growth. Fortunately for Dubai, building the new airport will allow the emirate to considerably boost operational ca-

pacity – something that will naturally pay significant economic dividends in the long run.

Could you kindly give us a low-down of the residential and commercial facets of Dubai World Central? What are the options for investors and developers if they want to build a hotel, mall, school or hospital? We have various options which would be tailored to the interests of the investor or organisation. This includes plots of land and products for residential use, freehold units (apart-

ments or hotel apartments) and for various purposes such as community centres, schools, hospitals, etc.

What kind of community is the Residential District going to be? The Residential District is progressively developing as an urban community, which places the needs of the individuals and their families at the heart of it. We have focussed on ensuring that the key aspects such as ease of access, proximity to workplace, availability of amenities, quality and cost of living are taken

20 million

guests will be staying at hotel establishments in Dubai every year by 2020

90 million

passenger capacity of Dubai International Airport

70.5 million

passenger passed through Dubai International Airport last year

12 million

tonnes of cargo to be handled by Al Maktoum International Airport

740,000

jobs will be supported by the aviation sector in Dubai Gulf Property

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Executive Terminal at Dubai World Central Aviation District

into account right from the design phase. We also believe that DWC’s strategic location would not only be beneficial for those working in DWC but also for the thousands of daily commuters between Sharjah and Dubai as well as Dubai and Abu Dhabi. The 6.6 square kilometre district will offer a balanced mix of properties and host a well-organised, attractive community environment with all supporting utilities and infrastructure. This includes nurseries and schools, clinics and hospitals, recreational parks and children’s

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playgrounds, cycling tracks, retail facilities, and the ‘Green Belt’, the largest privately developed park in Dubai. All of our efforts are aligned with Dubai Plan 2021 as we seek to develop DWC into a preferred destination to live and work.

How many property developers are on board as of now? Can you give us some names? In terms of the community facets of Dubai World Central – the development of the residential, commercial and golf areas are also in

progress. We have begun projects in the hospitality sector and signed several agreements with industry players. An agreement between InterContinental Hotels Group (IHG) and Abjar Hotels International, for instance, will see a 450-room Holiday Inn and 250-room Staybridge Suites built at Dubai World Central by the first quarter of 2018. We have also signed an agreement with Emaar to develop the DWC Golf District and a high-end luxury residential area. Currently, over 300 plots

have been sold, many of which are owned by prime regional developers. The first development in progress relates to two hotel apartment projects by Damac. Moreover, we have issued 20 building permits in the past two months alone; consequently, we anticipate significant acceleration in the development of the district.

Will DWC have any residential options for the high-income group? In partnership with Emaar, DWC will develop high-end luxury villas and townhouses around a world-class golf

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“The rationale behind Dubai creating a second, much larger airport is anchored in its own aviation and logistics success story, which translates into the ever-pressing need to create more passenger and cargo capacity...”

– Rashed Bu Qara’a

course within the Golf District of the DWC.

What about the noise pollution? How will it affect the residents and businesses? A lot of study has gone into the planning and location of the real estate components of Dubai World Central. The Residential, Commercial and Golf Districts are a good 2.5 kilometres away from the runway and airlines paths will not fly over these areas.

You mentioned big industry names establishing

base at Dubai World Central’s Logistics District and Aviation District. So, what are the options for an industrial organisation looking for real estate in Dubai World Central? DWC is designed to support organisations at various stages of their journey. We have drawn up solutions that cater to the specific requirements of start-ups, small and medium enterprises and multi-national companies whether in terms of business registration, set up and operation processes. And we do so by allocating a team who understand the or-

ganisation’s business and who in turn ensure that the precise needs of the investing organisation are met. The Logistics and Aviation Districts have respectively their specific array of affiliated industries. Both offer a comprehensive ecosystem and solutions that allow organisations to focus on their core business in a cost efficient manner and ultimately support their growth. In the case of the Aviation District, this translates into an offering that spans from design and development to the operation and use of aircraft. The district caters to

the practical requirements of MROs, Fixed-based Operations (FBOs), light industries, Research and Development (R&D) and educational facilities. As it sits adjacent to Al Maktoum International Airport, it provides seamless connectivity between landside and airside. The location is also ideal to support the one million aircraft movements per year that the new airport will ultimately see when completed. Through its free zone designated areas whether within the aviation, logistics or Business Park, DWC also offers Gulf Property

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MEGAPROJECT The Logistics District at Dubai World Central

its business partners tailored and flexible solutions in terms of services, spaces and facilities that are either ready-built or custom-built (e.g. offices, warehouses, hangars, etc.). Again taking the example of the Aviation District, we have recently announced a Dh120 million multi-purpose building for SMEs in the global MRO sector. Could you kindly give us an overview of the offerings at the Logistics District at DWC? The Logistics District is a multi-modal logistics platform that enables fast-cycle logistics businesses – many of which hinge on transporting

Gulf Property

goods by air. The district also facilitates value-added services such as light manufacturing and assembly. It caters to contract logistics, integrators, freight forwarders, agents and traders. The district is designed from the ground up with the objective of business facilitation in three crucial ways: a majority of areas within the district enjoy free zone benefits. It offers a mix of products and solutions, including buildings and warehouses for immediate hand-over on flexible commercial lease terms, availability of bonded trade licenses, and room to grow and expand. We are also very open to work with

our investors to create mutually beneficial solutions.

Could you explain how the Logistics District works to boost connectivity, and thus facilitate trade and industry? The Logistics District enjoys a unique, two-fold advantage. First, all 21 square kilometres of it sits right next to AMIA. The unrivalled proximity to the airport – with airside and landside access – gives the much-desired advantage to fast-cycle logistics businesses located there. Second, the Logistics District is seamlessly connected to Jebel Ali Port via the Dubai Logistics Corridor. The latter is a dedicated bridge that

connects the overall area of DWC with Jebel Ali Port and Jebel Ali Free Zone which represent around 200 square kilometres of Dubai’s prime industrial area. This single-custom bonded corridor brings unrivalled advantages to companies in terms of ease, cost and time effectiveness: sea-to-air cargo complete the journey from ship to plane in a matter of hours, as there are no processes related to the exit and entry from one zone to another. The system adds to Dubai’s appeal as the logistics capital of the Middle East, North Africa and South Asia (MENASA), a region that holds some of the

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MEGAPROJECT “I believe Dubai World Central will leverage on all of Dubai’s strengths and raise them to a whole new level. Dubai World Central is bound to be an employment and investment magnet. Around 200,000 people are expected to work at DWC when it is fully built”

– Rashed Bu Qara’a

Rashed Bu Qara’a, Chief Operating Officer, Dubai Aviation City Corporation

fastest growing economies in the world. The district also boosts Dubai’s image as a re-export hub as well as a vital transit point in international trade. Cities with greater logistics capabilities typically attract more foreign direct investment.

Dubai World Central is believed to contribute immensely to the growth of the Dubai economy and is expected to feature Dubai prominently on the global map. What are the significant social and economic contributions that DWC is making/will make to Dubai? I believe Dubai World Central will leverage on all of Dubai’s

strengths and raise them to a whole new level. First, Dubai World Central is bound to be an employment and investment magnet. Around 200,000 people are expected to work at DWC when it is fully built. A significant portion of employment at Dubai World Central will be linked directly to its airport. To give you an idea of the scope: Research firm Oxford Economics says that the Dubai aviation sector in 2013 supported 416,500 jobs and accounted for 21 per cent of the emirate’s total employment. By 2020, the figure will rise to over 754,000 jobs. Dubai World Central will further facilitate Dubai’s rise

as the world’s business and logistics hub. Proximity to the seaport and the airport, as well as free zone benefits, excellent infrastructure, products and solutions, and the cluster advantage will create an optimal ecosystem for business. Being located at Dubai World Central – which is at the geographical epicentre of some of the fastest emerging markets and the aerial ‘Silk Route’ – is a definite advantage. DWC represents the future face of Dubai. We wish to be known as a model city that is home to happy and progressive people.

So when will this mammoth DWC as a project

complete? As you stated earlier, the project is massive and it is one of the largest urban development initiatives in Dubai. The development of such a self-sustained city like any other city is a dynamic process and will be in a continuous state of transformation. The expansion of the airport as part of the second phase is anticipated within a time frame of 5 to 8 years and our work will be aligned to support that expansion. We are also focussed on ensuring that the needs of our current and future business partners are met. And finally, the development of the community components is bound to follow as increasingly more people will start to work and live in the Dubai World Central. g Gulf Property

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Nakheel’s Dh14b projects to reshape Dubai skyline

Gulf Property Exclusive

ubai Government has recently approved Dh14 billion worth of projects to be developed by Nakheel – one of the emirate’s largest real estate developers – owned by Dubai Government. Nakheel developed the Palm Jumeirah island – now a major tourism destination while its second of the Palm trilogy – the Palm Jebel Ali is currently undergoing infrastructure works. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, unveiled Nakheel's projects scheduled to be implemented over

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the next three years at a cost of Dh14 billion. “These projects are part of Dubai Government’s Vision 2021 and will help support the vision in creating facilities to attract more than 20 million visitors a year,” Mohammed Rashed Bin Dhabeah, Managing Director of Nakheel Development, the project development arm of Nakheel, told Gulf Property in an exclusive interview. “If Dubai has to serve 20 million visitors a year, we need more hotels and create new destinations and attractions to cater to this large number of tourists. Our new projects will help create new attractions for residents and tourists.” Ali Rashid Lootah, Chairman of the Board of Directors of Nakheel, along with his company’s senior team members briefed Sheikh Mo-

hammed the development gameplan for the projects. Nakheel unveiled 23 million square feet of new retail, residential and leisure projects across Dubai that includes Dh6-7 billion worth of projects on one of the four Deira Islands that will extend the emirate’s coast line and beachfront by a few hundred kilometres. The new heart for Deira will see the development of 16 towers aside 4.9 million square feet mall – the second largest shopping mall in the Middle East after Dubai Mall. The new projects include huge extensions to Dragon Mart and Ibn Battuta Mall The projects will bring a host of additional, worldclass facilities for shopping, living, business and tourism to Dubai in line with the Government’s 2021 vision. The new projects include a

6.5 million square feet residential, retail and hotel extension for Dragon Mart that will bring the total size of the Dragon Mart complex to around 11 million square feet; a new, 4.7 million square feet complex at Ibn Battuta Mall, including a one million square feet mall, new cinema complex, multistorey car park, hotel and glass-covered courtyard; a 12 million square feet, 16tower community at Deira Islands with a 4.9 million square feet mall, over 2,400 homes and extensive parkland that will become the defining landmark of the Deira area of Dubai. Rashed Bin Dhabeah said the company will develop these projects with its own resources. “Nakheel is in a healthy position as far as financial situation is concerned. We have

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Deira Islands will expand Dubai’s coastline and create a new destination in Deira that will attract more residents and tourists in Dubai’s downtown

good cash flow coming in from sales,” he said. “So, financing these projects won’t be an issue. However, if we need support, the banks will definitely lend. But our team has put up a careful development plan for these projects where we are first guaranteeing the cashflow generation before starting construction. “For example, we have leased out the Night Market completely. So we have the payments and now we will build the market. This way, the development will not be relying on extra funding – these projects will be self financed.”

Enter the Dragon City

Dragon Mart – already the largest Chinese trading hub

Mohammed Rashed Bin Dhabeah, Managing Director of Nakheel Development, explains the details of the new mega projects to the editorial team of Gulf Property

Deira Mall leasing to start this year

etailer in the UAE could look for a massive new business opportunity with the launch of the Deira Mall – retail leasing of which starts in summer this year, according to a senior Nakheel official. Omar Khoury Director of Retail at Nakheel Shopping Malls, said, there is a growing appetite for new retail outlets. “We have already leased out 40 per cent of Al Khail Mall and the lease rates are not under pressure,” Khoury said. “It was also evident in the total leasing out of the Night Souq at the Deira Is-

Omar Khoury Director of Retail at Nakheel Shopping Malls

land when we opened it for leasing recently. The retailers came in scores to book their space at the Night Market – which has a different setting.” Deira Mall, which can accommodate 3,000 shops, will be surrounded by about

16 residential towers, offices, four residential complexes including 2,500 apartments and sports walkway, hotels and upscale resorts, recreational and tourist facilities and other features such as restaurants, cafes and a children's garden as well as charming views of the Arabian Gulf waters. The Mall will feature a glass dome that will be half a kilometre long. It could be opened during the pleasant season when air-conditioning is not needed. “However, the retailers will have a bigger opportunity when we open Deira Mall for leasing. It will be the second largest shopping mall in Dubai slightly smaller than Dubai Mall but much bigger than Mall of the Emirates and Ibn Battuta Mall,” he said. Gulf Property

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outside mainland China – is to be transformed into a giant retail, residential and leisure destination, called Dragon City, with a new, 6.5 million square feet extension. The expansion includes a 2.2 million square feet retail component with nearly 1.3 million square feet of leasable space including a showroom-style area for events and exhibitions, and an integral car park with over 6,200 spaces. The ‘new Dragon Mart’ also has a two-tower residential component with 1,120 one and two bedroom apartments, and a separate, 250-room hotel. This new expansion project complements the existing,

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The Deira Mall atrium that will remain open for the pleasant six months of the year to allow fresh air and sunlight and reduce energy consumption – making it the first green mall in the region

2.95 million square feet Dragon Mart extension which includes a mall, car park and hotel. Dragon City will eventually span 11 million square feet.

Ibn Battuta Mall Expansion

Nakheel’s Ibn Battuta Mall – the largest themed shopping mall in the world – is to undergo an extension spanning 4.7 million square feet. The new complex will feature a one million square feet retail component with 766,000 square feet of leasable retail space; a new multi-storey car for 7,000 vehicles and a fourstar hotel with around 370

rooms. The centrepiece of the extension is a 300,000 square feet courtyard, featuring extensive green landscaping and a retractable glass roof for year-round shopping and dining. The new extension announced today is in addition to Ibn Battuta Mall’s Phase 2 complex, currently under construction and due to open this year, and will bring the total size of Ibn Battuta to more than seven million square feet.

Transforming the Old Deira Nakheel’s

Deira

Islands

master development will centre around a 12 million square feet retail, residential and leisure development that is set to become the heart of the four-island waterfront city. Deira Islands Mall, Towers and Boulevard will offer spectacular shopping and luxury living facilities in a self-sustaining community for 10,000 people that includes around 1.7 million square feet of green, communal parkland. The complex includes Deira Mall, a new destination development designed to symbolise the modern city of Dubai while reflecting its past, present and future. Deira Mall includes 2.9 mil-

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Mohammed Rashed Bin Dhabeah, Managing Director of Nakheel Development

lion square feet of leasable space and a car park for more than 8,400 vehicles. The mall will be surrounded by the 16-tower Deira Islands Towers community, comprising over 2,400 apartments and townhouses spread over four clusters. Each tower will be built atop a podium retail development with over 200,000 square feet of retail space. Integral to the Deira Islands Towers project is Deira Islands Boulevard, a 400,000 square feet walkable shopping and dining promenade connecting the residences, mall and park that make up the development. The Boulevard will have around 120 outlets.

“Deira, the heart of Dubai’s downtown, remained almost the same for the last two decades without any major development projects,” Bin Dhabeah, said. “Deira Island and Deira Mall is going to reshape the skyline of Deira and create new attractions for residents and visitors,” he said. Nakheel has already leased out the Night Market while a number of hotel and residential plots have been sold to third-party developers to build hotels and apartment buildings. In an exclusive interview, with Gulf Property, Mohammed Rashed Bin Dhabeah, Managing Director of Nakheel Development

elaborated his company’s game plan for the new projects. Excerpts:

Gulf Property: When are you going to start these projects? Mohammed Rashed Bin Dhabeah: Parts of these projects have already been going on while the bulk of the new projects will go on tendering this year. Now that we have the final go-ahead from the government, we will start tendering projects one by one so that we can manage them properly.

How would these projects fit into the overall economic development of Dubai?

Our new projects are part of the government’s Vision 2021 – when Dubai is expected to cater of more than 20 million visitors a year. You need to create new facilities and attractions to cater to them. Besides, we have a very vibrant resident community not only in Dubai but the UAE and neighbouring countries who want to see new destinations within the emirate. These new projects are going to add attractions for residents and tourists and also will create employment and expand domestic consumption. So, our new projects are going to help not only create destinations and employment – but help the economic growth of Dubai. Developing projects worth Dh14 billion requires solid financial planning. How are you going to finance these projects? Obviously from our own resources. Nakheel is now a profitable and well capitalised company with healthy cashflow coming in from residential, commercial, retail and hospitality portfolio. In making the company more sustainable, we have developed a strong retail and Gulf Property

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“If Dubai has to serve 20 million visitors a year, we need more hotels and create new attractions to cater to this large number of tourists....”

– Mohd. Rashed Bin Dhabeah, Managing Director of Nakheel Development,

hospitality portfolio – both are growing. Besides, the 2,400 residential units in Deira Islands will be put on the leasing market that will generate a strong flow of recurring revenue that will make the company less reliant on external resources. Going forward, we would expand our residential leasing portfolio that will increase the recurring revenues. However, with our current financial strength and strong balance sheet, borrowing won’t be an issue and the banks are ready to finance – which might not be needed. We are currently in a strong position to fund these projects. This time, you have given strong emphasis to Deira where we did not see major developments. What inspired Nakheel in shifting focus on Deira? Deira at once was the heart of Dubai while Dubai’s economic activities once thrived on both sides of Dubai Creek. Over the last one and a half decades, most developers focussed on the south side of the emirate – Al Barsha, Jumeirah, Umm Suqueim and Jebel Ali. However, Deira remains an integral part of Dubai’s econ-

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omy which remained almost unchanged. So, we looked at creating new destinations around Deira by developing Deira Islands – a cluster of four islands that will create new marina, promenade and create new destinations and waterfronts – so that people finds new reasons to come to this side of the city. We have already created a new marina on the one side while the Dhow Wharfage – that caters to the traditional trading activities through wooden boats will be berthed on the other side – to recreate the charm of the old Dubai and bring back its trading culture and heritage next to a new and vibrant destination.

The first project on the Deira Island will be the Night Market that will attract visitors to new destination as we tender out Deira Mall and the residential cluster surrounding the mall. Deira Mall will be the centrepiece of Deira Island as it is closest to the shore. It will be surrounded with 16 residential towers and four hotel and serviced apartment complexes – each rising 50 floors above the ground. The hotels and serviced apartments will compliment the business offerings of Deira Mall as they will help tourists stay close to the mall and make it an integrated destination where they can stay, shop and entertain themselves without

having to go out. The mall has been designed in such a way that it caters to everyone in the family – with indoor and outdoor sporting activities, health and fitness, entertainment facilties for the parents and children, food outlets, theatres, etc. – you name it and it will be there – so that a family can stay throughout the day. Besides, some of the hotels and resorts plots have already been sold out to developers who will develop hotels on the beach front. So, we are going to witness a busy period of heavy construction activities in Deira Island for the next two to three years.

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The mega and multi-phased expansion of the Dragon Mart – the largest trading, retail and wholesale hub for Chinese goods outside China – will reinforce its role in the global economy as well as transform it in to an integrated destination – the Dragon City

What about the logistics side – the infrastructure and the traffic management to and from Deira Island? There are two large bridges getting ready to connect the island to the mainland. Besides, there will be a new tunnel connecting Deira Island to the new cruise tourism destination being developed under Dubai Maritime City in the old Port Rashid area. In addition to this, a new causeway is expected to connect Deira Island to the new Dubai area through the Arabian Gulf – to provide fast and easy access to the island for people commuting from the Jebel Ali side.

While Nakheel is doing most of the infrastructure, highways are being handled by the Roads and Transport Authority (RTA) as they will be managing the traffic flows.

You are investing heavily in Ibn Batutta Mall and Dragon Mart. Why? Ibn Batutta has a strategic location, if you consider the development of the new airport and the World Expo 2020 site at the Dubai World Central in Jebel Ali – the mall becomes an important destination to serve the residents and tourists. Besides, with improved connectivity and new residential projects around the area, there is a need for new

outlets and retail facilities in that area. The expansion will help the mall serve the growing population and tourists better. It will have two new hotels, a glass-dome covered boulevard that opens to fresh air during the winter and remains closed for airconditioning during summer and will cater to the future needs of Dubai. Dragon Mart is the world’s largest such retail and wholesale facility for Chinese goods. Since it has remained a success story – we have felt the need for more outlets and facilities. With Dubai connecting businesses worldwide, especially the emerging economies of the

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Middle East, Africa, Central Asia and South Asia, we felt there is a need to expand the facilities for the traders, retailers, wholesalers, importers and exporters. Lots of businessmen come to Dubai, stay in hotels located afar to procure and book Chinese products at the Dragon Mart. So, a hotel can help them stay there, dine and carry out business without having to go out. The expansion will help Dragon Mart to become an integrated destination – Dragon City and help businesses thrive. So, we are helping reshape and create a new future – an exciting future in Dubai where we will have a good role. Gulf Property

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Wasl to build Dubai Gate & Vertical City

Gulf Property Exclusive

ubai Government has recently approved a number of projects planned by Wasl Asset Management Group, part of the Dubai Real Estate Corporation (DREC) – a major property development and

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management arm of Dubai Government. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has recently launched a number of projects planned by Wasl during his recent tour of the Dubai Creek Heights Residences – Wasl’s first project that has been offered to investors for ownership and

that marked its foray in freehold market. Hesham Abdullah Al Qassim, Chief Executive Officer of Wasl and DREC briefed the royal visitors on the group’s overall development plan. Creek Heights Residences, a residential-style multi-event complex, that consists of two towers of five-star Hyatt Regency Hotel and luxury furnished

apartments, was developed by Wasl Asset Management Group. Sheikh Mohammed toured the hotel and its suites, halls and rooms, and viewed the world-class recreational, tourist and sports facilities. Later, Sheikh Mohammed launched other three development projects to be developed by Wasl – including Zabeel Park 1, a mixed-use complex on Zabeel Park

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MEGAPROJECT His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, are being briefed on the new projects planned by Wasl Asset Management Group, aimed at supporting Dubai Government’s Vision 2021 by Hesham Al Qassim, Chief Executive Officer of Wasl

comprising hotels, residential and office buildings, cafes and restaurants, recreational facilities and retail shops along with the first yearround snow fountain and a water fountain for entertainment. The project will be fitted with the latest lighting technologies, reflecting the contemporary, urban beauty of the Zabeel Park. The main tower in the project will take the shape of number 1, reflecting Dubai’s quest to be number one. Sheikh Mohammad then viewed the mega model of Al Wasl Tower, which will rise on the Sheikh Zayed Road. An important urban and tourist landmark in Dubai, the tower will look like an integrated vertical city in view of standards of modern tower architecture featuring the world’s tallest ceramic fa-

cade, in addition to vertical gardens and the light museum, the first-of-its-kind in the region, to showcase the history, art and technologies. Sheikh Mohammad also viewed a model of Dubai Gate, an innovative project that will emerge as a city of innovation and creativity, the gateway to Dubai, from Jebel Ali near the Dubai Metro station in Jebel Ali. The projects are part of Wasl’s plan to support Dubai Vision 2021 which envisage happy citizens and residents enjoying lavish, modern lifestyle within an integrated and harmonious community, providing them with an ideal experiment for sustainable living and work in a smart city. “Sheikh Mohammad expressed his satisfaction with the promising projects, which

will boost the national economy and help develop and stimulate the tourism sector in the UAE,” a company statement said.

Dubai Gate

Located at Jebel Ali area near the metro station, this development will be constructed in different stages over the coming years and resembles a gate, with the architecture selected to be symbolic by showing how Dubai receives visitors. To be built on a total development area of 15 million square feet, the built-up areas will range from 20 to 22 million square feet thanks to focusing on developing green spaces so that the project will include a wideranging green park of an area close to that of Safa

Park. “Dubai Gate is a city for innovation and creativity and a spacious development that reflects the city's contemporary vision and its strategic 2021 Plan, which is aimed at ensuring happy residents in an inclusive society that offers them a unique experience for sustainable life and work,” the company said in a statement. The key features of this city includes the Innovation Centre that is aimed at attracting talented young people to practice modern arts, and an iconic tower named ‘Ibdaa’, meaning ‘Innovation’. The Gate stands as a symbol to welcome talents and visitors to Dubai, a spokesperson of Wasl says. Ibdaa tower will feature spaces for temporary rent to help innovators demonstrate their creativity and will include a digital library, equipment and creativity stimulation techniques, thus providing suitable environment for innovation. Modernity will be represented in the iconic ‘Ibdaa’ tower – a key feature of the development. Additionally, another building covered with gigantic digital screens will receive visitors and proGulf Property

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mote Dubai events throughout the year. Next to the tower will be ‘Ibdaa Square’ that will host exhibitions for innovative products and ideas, and to truly be the ideal destination for creative activities and events from the UAE and beyond. “This way, Wasl will manage to provide a healthy life style in a modern environment that is rarely available in modern cities around the world. It also provides retail spaces, cultural complexes, restaurants, schools and healthcare services, making Dubai Gate a city well-inte-

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grated with its serenity and attractively beautiful nature,” the statement said. Dubai Gate is an all-inclusive destination that provides residents with all means of comfort and sustainable life style in a healthy modern environment surrounding the central park. This project – a 'multi-usedevelopment – will host residential buildings, commercial spaces, hotel apartments and hotels, with villas and town houses amid serene rural surroundings, will be located only a short distance from retail compounds and outlets, restaurants and

cafes available within the same development, thus meeting all of residents’ needs and attracting shoppers and visitors from all over Dubai and beyond; due to its easy access to the international highway and metro network.

Wasl Tower: A Vertical City

Wasl Tower will be based on new engineering standards of the 21st century towers. It will be the first vertical all-inclusive city, featuring the tallest ceramic façade in the

world covering the tower, as well as vertical parks and a light museum, which will be the first of its kind in the region, to showcase historical and latest technologies innovated by mankind in the field. Comprising 60 floors, the development will feature vertical residential compounds to provide an all-inclusive city, meeting all the needs of its residents, while improving health standards across all parts of the property. This tower was designed by two world-renowned designers; namely, sustainability expert Prof. Werner Sobek and the famous archi-

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tect Ben van Berkel. “With the expertise of these designers and ability to blend architecture with the science of sustainability, this towering building has been specially invented to combine features of construction and environment, using the latest sustainability techniques and architectural skills,” a company statement said. One of the key features of the development is the exterior self-lighting techniques that will be utilised to reflect various occasions and events held in the city. Every week a new theme will be inspired to communicate a

message to residents and city visitors, or to highlight an important event held there. Furthermore, the tower will use special and unique materials that will be manufactured for the first time in the UAE. The tower will be constructed at close proximity to Sheikh Zayed Road. It will set new standards for architecture and high lifestyle in future towers of the 21st century, not only in the UAE, but across the region. Throughout the design phase, developers will pay attention to the importance of utilising the surrounding fea-

tures so that the development will reflect the sophisticated advancement and great engineering of Burj Khalifa and Sheikh Zayed Road, the elegance of Jumeirah area, the serenity of the sea coast, the warmth of the Dubai sunshine and the enchantment of the Arabian Gulf. Its vitality will be derived from the activity of people and traffic around it, and from the movement of the sun from sunrise to sunset. While towers usually depend on its vertical extension to provide services in specific parts, this new tower will provide com-

“One of the key features of the development was the exterior selflighting techniques that will be utilised to reflect various occasions and events held in the city. Every week a new theme will be inspired to communicate a message to residents and city visitors, or to highlight an important event held there.”

– Wasl Properties

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An artist’s impression of the Wasl Hub being developed in Karama, Dubai

plete residential compounds at every set of floors, with each one supported with social halls in a cozy ambience that will comprise sports facilities, corridors, retail outlets, restaurants and cafes, thus creating all-inclusive independent quarters in one tower enabling residents to enjoy the highest degree of privacy. The building system with

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ceramic and innovative materials will help regulate temperature inside the tower, and reduce the heat of the sun, minimising energy consumption and reducing noise from the surroundings. The vertical garden will support sustainability, helping in significantly reducing carbon dioxide levels – thus having a vertical city with complete features.

Wasl creates hub in Karama

Meanwhile, Wasl Properties has recently launched Wasl Hub – a new mixed-use project in the Karama neighbourhood of Dubai. When completed at the end of 2016, Wasl Hub is expected to become a landmark in Karama due to its distinctive features and large

retail area designed to make it a bustling and vibrant destination. The project will feature alley ways and paved temperature-controlled ‘sikkas’ in and around the project providing a comfortable walking environment for residents and visitors even during the hot summer months. "The launch of Wasl Hub reflects the ambitions of our

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Zeinab Mohammed, Chief Executive Officer for Property Management and Marketing, Wasl Properties

integrated strategic plan that focuses on enhancing many of the traditional areas of Dubai and specifically the Karama neighbourhood by providing contemporary living with shopping and entertainment options for residents and visitors alike,” said Zainab Mohammed, CEO, Property Management and Marketing, Wasl Properties.

Wasl Hub earned its name due to its vast 170,000 square feet. area, of which 60,000 square feet. will be allocated to over 70 retail shops and 32 restaurants and cafes. The project will feature 312 apartments of one, two and three-bedrooms and provide ample parking to accommodate residents and visitors. The development aims to enhance

the size and diversity of wasl properties’ portfolio in Karama and will offer additional services such as a swimming pool, children’s playground, indoor gyms and around the clock security. The announcement follows Wasl Properties’ previous statements relating to the completion of two other projects in Karama in mid-2014 – Wasl Onyx and Wasl Amber. Both of these developments were completely leased in just two weeks due to the high demand for household units and retail space in Karama. Earlier this year, the company announced the completion of Wasl Ruby, also located in Karama, comprising 72 one-, two- and threebedroom apartments with facilities that include a swimming pool, children's playground and gymnasium. Wasl Ruby was completely leased in a record 10 days. Adding to Wasl’s portfolio of properties in Karama is Wasl Ivory – a premium development launched this month. Wasl Ivory comprises a total of 90 one-, two- and three-

bedroom apartments and has a retail area spanning 13,463 square feet, incorporating 15 shops and five food and beverage outlets. Wasl's Karama projects form part of an integrated plan set by the company to revitalise the district and transform it into a modern contemporary neighbourhood. The company is focusing on introducing a number of projects in the area that are characterised by distinctive architectural designs and modern amenities, providing high quality fit-outs and services and plenty of parking for residents and visitors. Since 2008, wasl has introduced a total of 566 residential units spread across seven projects in Karama. The company’s commitment to the area sees it with another seven other Karama projects in the pipeline that are to be built and completed between now and 2018. For each of its projects, wasl properties conducts comprehensive field research to study the market demand in different areas of Dubai and determine necessary requirements. The company also relies on feedback through its various customer service offices and its 24 hour call centre. A large percentage of inquiries the company receives are related to residential and commercial space in Al Karama, indicating a high demand for this important area of the city. It is a sought after area because of several factors, notably its proximity to major areas in Dubai and its high population density and vitality, which are considered important elements for the success of residential and retail projects. g Gulf Property

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Wasl to create roundthe-year snow fountain

Gulf Property Exclusive

asl Asset Management, part of Dubai Real Estate Corporation (DREC), is developing the world’s first round-the-year operational snow fountain in a hot and humid climate in Dubai – the first of its kind in the region at Zabeel Park located between Dubai World Trade Centre and Karama. The government offered very few details of how the

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snow fountain will function, especially during the hot and humid summer time. However, Wasl has appointed Martha Swartz Partners to develop the master plan of the project. Development of a snow fountain that will spread snow year-round through a fountain might have been unthinkable a few years ago. However, Dubai is known to create the unthinkable. The project will strengthen Dubai’s tourism attractions as it prepares to increase its hotel guests to 20 million a year that will require the development of new attractions

to lure increased number of foreign tourists to the city. “Zabeel Park 1 development embodies the vitality of the city in the heart of the green Zabeel Park, thus providing an urban oasis in the middle of busy Dubai,” a company statement said. “Zabeel Park 1 will provide an attractive environment with key features that will attract Dubai tourists to enjoy the first round-the-year operational snow fountain, to be the first of its kind in the region.” The development will be an attraction for tourism, entertainment, hospitality and

business activities. It will also be the home of an amusement water fountain, utilising modern technology to fantastically distribute lights all over the development. “In view of its strategic location, the project designers were inspired by the beauty of Zabeel Park to envision a city that blends modernity with nature to provide integrated building designs with harmonious geometric shapes, forming an angle resembling figure '1' through Dubai Frame,” an Wasl spokesperson said. The property will also carefully link Dubai Trade Center,

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MEGAPROJECT Zabeel Park 1 will provide an attractive environment with key features that will attract Dubai tourists to enjoy the first round-the-year operational snow fountain, to be the first of its kind in the region. It will also be the home of an amusement water fountain, utilising modern technology to fantastically distribute lights all over the development.

– Wasl Properties

Zabeel Park and Sheikh Zayed Road. Wasl has hired the best experts in outdoor landscaping and architecture to smartly combine the grand status of Sheikh Zayed Road and the natural greenery provided by Zabeel Park green spaces. “Zabeel Park 1 will be a continuation of the development journey launched by the late His Highness Sheikh Rashid Bin Saeed Al Maktoum with the construction of Dubai World Trade Center, and carried on afterwards by His Highness Sheikh Mohammed Bin Rashid Al Maktoum,” a company statement

said. Enjoying a strategic location spread over an area of 1.3 million square feet, this property will be a primary destination for living, work and attractive events. The project will also reflect Dubai's contemporary urban nature and modern vitality as well as the beauty of Zabeel Park surrounding its premises. “Its buildings will provide a wide range of facilities ranging from stylish residential, office and hotel units to the state-of-the-art commercial and retail spaces,” the statement said.

This will provide residents and visitors alike with the finest working environment and living experience in elegant architectural designs, especially in the main iconic tower that will resemble number '1' and reflect Dubai’s vision in being number one in all aspects of life. This environment will be complimented with hospitality and entertainment services that will include a host of restaurants and cafes all around the development, as well as transversal retail compounds to transport the visitor from the vivid city life to a fantastic shopping and

picnic environment which parallels the serene ambience of the park, especially with the Snow Fountain that uses the ultimate state-ofthe-art cooling technology to spread snowflakes throughout most months of the year, cooling down the air even in the summer. Zabeel Park 1 construction area will cover 7.1 million square feet and to make sure the development is in line with the highest modern architecture standards and techniques, Wasl has engaged the best architects, and sought the skills of Martha Swartz, worldwide expert in landscaping. g Gulf Property

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Damac books Dh2.8b sale in Q1 despite lull Ziad El Chaar, Managing Director of Damac Properties

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An Akoya Oxygen Villa

By Paromita Dey Senior Reporter

ubai-based master developer Damac Properties have booked Dh2.8 billion in sales during the first quarter of this year, reflecting a relatively good appetite for homes offered by credible real estate developers. Damac Properties’ stalls at all major exhibitions had remained abuzz with buyerseller activities during the last six months when the market has witnessed a lull in business. “If you have the right product at the right location and at the right price, we do not see any shortage of buyers,” Ziad El Chaar, Managing Director of Damac Properties, said Gulf Property in an exclusive interview conducted at the recently concluded In-

ternational Property Show. “On the first day of International Property Show, we declared sales of Dh2.8 billion for the first quarter of 2015, the slowdown has not affected us,” he says. Damac offered attractive prices for apartments starting from as low as Dh500,000 and villas from Dh1.16 million – making homes more affordable to attract endusers. “The Dubai property market is buzzing with interest from all over for luxury living experiences at the heart of one of the most vibrant cities in the world,” Ziad El Chaar says. As of December 31st 2014, Damac Properties has delivered almost 13,000 homes and has a development portfolio of over 38,000 units at various stages of progress and planning. Included are more than 10,000 hotel rooms and serviced hotel apartments under develop-

“If you have the right product and the right marketing, then the market is always receptive to you...”

– Ziad El Chaar Managing Director Damac Properties

ment, which will be managed by its hospitality arm, Damac Hotels and Resorts.

Rainforest

In February, Damac announced the region’s first

INTERVIEW

rainforest development in a desert landscape in Dubai. The Dubai Rainforest will sit adjacent to the Trump World Golf Clubhouse, part of an open-air walkway of high-end retail and entertainment offering, for residents and visitors to Akoya. Akoya Oxygen is a master development currently under construction in Dubai. Spread across 55 million square feet within Dubailand, Akoya Oxygen will be a peaceful retreat from the hustle and bustle of the city. The second phase of the project is currently available for investment, with villas and townhouses available within the green environment. The project is set around the Trump World Golf Club, Dubai – an 18-hole golf course, which is under design by world-famous golfer, Tiger Woods and will be managed by the Trump Organisation. The Dubai Rainforest will Gulf Property

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INTERVIEW

be completed ahead of the World Expo 2020 taking place in the emirate, and will become a key attraction within Dubai’s integrated tourism plans. The project will join attractions such as the varied theme parks coming on-line, in addition to the world’s tallest fountain, the Palm Jumeirah, the Dubai Eye and the Dubai Aquarium as Dubai looks to welcome at least 20 million tourists a year by 2020. The Dubai Rainforest will recreate the natural environment experienced in the heart of the deepest rainforests, which cover 6 per cent of the earth’s surface. The tall, dense jungle environment will be fully recreated with many plants species integrated into the iconic dome structure. Damac Properties will ensure the integrity of the project is a natural representation of the environment through collaborations with leading Amazonian rainforest experts. “The Dubai Rainforest will be a tropical wonderland, which tourists, residents and school groups can immerse themselves in and inspire a new generation,” added El Chaar. Visitors will be taken on a

Gulf Property

An artist’s impression of Akoya Oxygen

journey through the jungle, starting out on the ground level, before climbing into the canopy, learning about the flora and fauna throughout the habitat. Those with a thrill for heights will be able to fly through the treetops on a zip wire offering stunning bird’s eye views of the environment. Those with a more serene temperament will be able to laze back within the peaceful surrounds of the Rainforest spa, offering hydrothermal treatments among the rock pools and steam baths. The Dubai Rainforest will

also incorporate all of the latest outdoor and exploration equipment with a naturallooking rock face climbing wall set within the abundant nature. In an exclusive interview, Ziad El Chaar, Managing Director of Damac Properties, elaborates his views. Excerpts: Gulf Property: How is the construction activities in Akoya going on? Ziad El Chaar: Akoya is a four million square metre masterplan community off Umm Suqeim road. Akoya will be the fastest

project that the city has seen. Because only 18 months from the date of launch, we have built, under a main contractor, 2,000 villas and 50 per cent of these villas are in Level 1 and close to 1,700 apartments between Level 3 and Level 6. There are only 8 floors and very close to completion. The 18-hole golf course would be ready by December 2015, we have already started construction on the clubhouse and would be finished by next March. We are trying to finish close to 900 villas this year and deliver them to their owners. The first power sub-

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Construction in progress at Akoya master development

station is done, fully commissioned and ready to feed the villas with electricity. We are now finalising the design of the retail strip that will have the entertainment and community services in Akoya. Infrastructure is progressing throughout the site. It’s a very busy project. When do you think Akoya will be fully developed? We are aiming to deliver the whole of Akoya by 20182019.

Have people shown interest in your Trump PRVT mansions that you re-

cently launched? The Trump PRVT mansions are a product designed for only end users since there are only around 100 villas available. We have seen a lot of interest from our buyers. We have also designed 50 villas according to the Vaastu concept, mainly suited for our Indian investors.

You have announced the creation of a rainforest in the desert at Akoya Oxygen. How are you planning to do that? What is the total value of the development of this rainforest?

Our second project, which is our second master plan, is called Akoya Oxygen, which is only 10 minutes away from Akoya. It’s a 55 million square foot master plan that we launched 5 months ago. It will have another golf community which will be designed by Tiger Woods, only the 3rd golf course to be designed by him in the world. We are very close to finalising the design of the golf course. Part of the entertainment and community services hub that we are creating in Akoya Oxygen is a rain forest.

INTERVIEW

“Dubai offers some of the best prices and returns per square feet as compared to any other projects in any other cities in the world. Ease of movement of capital, higher returns, lower registration fees, no capital gains tax and no inheritance tax for the foreign buyers, make it a very interesting proposition.

– Ziad El Chaar Managing Director Damac Properties

Gulf Property

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INTERVIEW

Apart from providing peoples' awareness about the importance of the rainforest, it will also add to the F&B arena. We are also trying to create a wedding arena in the rainforest, it will be different from having your wedding in a hotel. We still havenâ&#x20AC;&#x2122;t got to the total development value of the rainforest, we are working with many designers to design and make the project as sustainable as possible. We are trying to rope in designers who have previously

Gulf Property

designed man-made rainforests in the UK and Germany. We are also creating the first outdoor ice rink, an outdoor childrenâ&#x20AC;&#x2122;s play area.

Your company has graduated to develop masterplanned community through Akoya, after years of delivering towers. How's your experience in developing master planned mixed-use project? If you look at our portfolio, we have mostly developed two

categories of projects, first its residential infused with hospitality and second master communities. These two categories provide massive competitive advantages because very few developers can do that. The people who are developing master planned communities in Dubai are very few. It was always our aim to develop communities ever since we got the land because it gives us competitive advantages. Also, you cannot have an overdose of

master communities since there are only three or four, so in that way investors are protected.

You have not yet made a strong foray in Abu Dhabi yet. Any plans to expand in Abu Dhabi market? We are hoping to enter the market in Abu Dhabi with a proposition. We are currently working on a unique product for our foray. In Abu Dhabi private developers find it difficult to secure lands for their projects, the

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INTERVIEW Akoya Drive is the leisure development within the Akoya master planned community

“Only 18 months from the date of launch, we have built 2,000 villas. The 18-hole golf course would be ready by December 2015. We are trying to finish close to 900 villas this year and deliver them to their owners.

– Ziad El Chaar Managing Director Damac Properties

ity/real estate projects.

lands that we have, are on Reem Island. It will be mostly a building development, but we are trying to enter Abu Dhabi with a unique concept and hopefully we will have news when the summer ends.

The market is a bit slow, buyers are more cautious because the surge in prices is unsustainable. Has that in any way affected your business? On the first day of International Property Show, we de-

clared sales of Dh2.8 billion for the first quarter of 2015, the slowdown has not affected us. We would definitely like to sell more always. If you have the right product and the right marketing, then the market is always receptive to you. Mostly the buyers in Dubai are foreigners, we have done quite a few numbers of sales and investment events outside of Dubai for the last three years. Dubai offers some of the best prices and returns per

square feet as compared to any other projects in any other cities in the world. Ease of movement of capital, higher returns, lower registration fees, no capital gains tax and no inheritance tax for the foreign buyers, make it a very interesting proposition.

Damac has a strong hospitality portfolio. How much do the hotels and serviced apartments contribute to Damac's top-line revenue? Approximately 35 per cent of our portfolio is in the hospital-

Are you happy with the financial performance, so far? Our products boost our revenues and profitability, as they sell at a higher value for the residential market.

What's the latest status of the Gamsha Bay project in Egypt – now that the new government has opened up new doors for investment in the Egyptian real estate market and a good number of UAE developers are entering the Egyptian market? Is the project on? You are talking about something which is very old. We have already settled the land and handed it over to the Egyptian government. There are some reports Gulf Property

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INTERVIEW

stating problems in one of your developments in Qatar, Lusail city. Many are complaining about being hit with a new round of fees for their â&#x20AC;&#x153;luxuryâ&#x20AC;? apartments, many of which they say are substandard. Could you give your thoughts about that? I think there will always be teething problems in a city that is evolving and delivering massive projects. Those nine buildings that we had, we finished it in last June but we were unable to deliver it till now because of the lack of utilities.

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The main struggle is infrastructure, which is unfortunately not in our hands, it is in the hands of a master developer. We understand that landscaping is not complete, piling is not complete, we are providing temporary facilities, but again, it is a teething problem in a city that is evolving very quickly. There are quite a few projects so in some areas you will face certain problems. Now we have agreed with the master developer to provide temporary utilities at the same price to owners. We are the only ones who are

building in that area, the project and construction was ready on the contractual date, but no utilities.

Developers are slashing prices, coming up with new attractive payment plans? Any such strategy that you have adopted to attract more customers? We give the market new marketing ideas every week, but the main focus is always on providing more and more value in the master communities. We provide a lot of services in the community and

we announce one project every 2-3 months, which adds more value to the master community. Investing in a master community will give you higher returns and a more desirable life.

Any plans to build shopping malls in future? So far the concentration will be on building retail facilities in the community that we are having. You have made inroads in Qatar, Saudi Arabia, Egypt, Iraq and Lebanon markets. What's the next

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INTERVIEW â&#x20AC;&#x153;We are hoping to enter the market in Abu Dhabi with a proposition. We are currently working on a unique product for our foray. In Abu Dhabi private developers find it difficult to secure lands for their projects, the lands that we have, are on Reem Island.

â&#x20AC;&#x201C; Ziad El Chaar Managing Director Damac Properties

big international market that you would consider to enter? Our focus is currently on Dubai, Abu Dhabi, Doha, Jeddah and Riyadh. We have some projects in Jordan and Lebanon, which we are going to hand over this year. We will see some more projects in those areas. Our focus in on the GCC.

How many units have been delivered so far? More than 13,000 units have been delivered so far. We are aiming to increase this number of units by close to

3,000 this year. This does not include the rooms in our hotels and hotel apartments.

How do you evaluate the current market scene in Dubai's real estate? I am really confused about this market by the feedback that we get. If the market is growing too quickly then we have a bubble, and if the market is not growing then we have a bubble. The market is growing at a slower pace so that it is more sustainable. The market started growing properly

after a hard financial crash. After that, it is normal to grow at a faster pace because you are coming from a low base, like in 2012 and then consolidate the growth in 2013-14. A healthy real estate market grows at 5-6 per cent annually. We had this crash and now the market is stable. All the developers should maintain their markets and also the international front.

What are your thoughts about affordable housing? Any plans of venturing into that?

If you are interviewing the Managing Director of Lamborghini, would you ask him the same question. We are a luxury developer and intend to remain the same.

What are your upcoming projects? Any particular plans for 2015 to strengthen the company? We will continue to do what we are doing and increasing our share. Every quarter we try to introduce new projects. We will try to push more and more projects within Akoya and Akoya Oxygen. g Gulf Property

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Nshama lowers realty prices to Dh349,988

Gulf Property Exclusive

ownward pressure is bringing down property prices to its lowest ever in ten years as apartment prices have now come down to Dh349,988 in a new upmarket development in Dubai, beating the previous lowest of Dh475,000 offered by Danube Properties in January this year. Property developers in Dubai are competing against each other to offer lower

Gulf Property

price per apartment and townhouses to outsell each other as a depressed real estate market is now helping widen the end-user choice and would encourage even the middle income population to consider buying apartments for under Dh350,000 and townhouses below Dh1 million – something the country’s residents could not think even a few months earlier. Damac Properties last month offered its townhouses and villas at Akoya Oxygen at Dh1.16 and Dh1.3 million – which is one of the most attractive price for such

properties. Dubai’s real estate has suddenly become a buyer’s market where they can now dictate the prices. Analysts feel that the market could pick up if mortgage providers join hands with the developers to offer a very attractive monthly installment package that the end-users could afford. “If that happens, then Dubai’s real estate market could witness another jump in the lower- to middle-segment of the market and that will drive its growth,” a property analyst said, requesting anonymity.

Nshama, a new property developer which is developing Town Square – a large new community in Dubai, has announced a new ‘killer price’ of Dh349,988 for Zahra Apartments, making it the most affordable property in Dubai in recent years. Town Square is a mixedused master-planned community spread across 750 acres of land covering 31 million square feet anchored by a central square, the size of 16 football fields, as well as new Vida Town Square Dubai hotel and Reel Cinemas cineplex and open-air cinema.

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Nshama

Zahra Apartments at the Town Square – a new master development by Nshama

The project is being built at a location that is in close proximity to over 2.5 million square feet of retail with over 600 shops and food and beverage outlets. Town Square, Dubai’s firstof-its-kind smartly designed, stylish, green neighbourhood by Nshama, has unveiled its first phase of best value residential apartments. “Assuring the ‘live life at your price’ proposition, the new Zahra Apartments start at just Dh349,988 serving as a perfect fit for investment and those seeking to own a home in Dubai,” the company said in a statement.

shama is a private developer of integrated lifestyle communities differentiated by its focus on offering distinct value propositions for aspiring home-owners. Bringing the expertise of project development professionals from around the world, backed by strong domain knowledge, Nshama aims to create elegantly master-planned neighbourhoods that are smart, interconnected, networked, “Residents step out to an active, exhilarating lifestyle with green walking trails, outdoor sports courts and cycling tracks.” A city within a city, Town Square also offers day-care facilities, playgrounds, play zones for all ages, swimming pools, fitness centre, athletic spa, interactive water features, skate parks, playgrounds, adventure zones, modern medical facilities and splash parks. Only 306 apartments are being launched including studios, 1-bedroom apartments from 515 to 600 square feet, two-bedroom apartments from 825 to 965 square feet and three-bedroom apartments at 1,200 to 1,400 square feet. Fred Durie, Chief Executive Officer of Nshama, said: “Zahra Apartments offer an unmatched value proposition for aspiring home-owners, particularly first-time buyers, in one of the trendiest developments. Residents are assured of a convenient lifestyle, where all amenities are within walking distance, while the city’s main landmarks are in easy access.” The launch of Zahra Apartments follows the strong end-use homeowner re-

tech-driven and sustainable. Nshama projects are truly self-contained and offer residents all their needs in close proximity. Its projects are differentiated at all touch points – from value to amenities, location and sustainability considerations. Investing in Nshama enables customers to shift their lifestyle from a predominantly rent-driven model to an own end-user home that is cost-competitive and a solid investment for the family. g sponse to Zahra and Hayat Townhouses, also offered at unmatched price points, starting at Dh999,988 for three-bedroom homes. “The young generation is eager for a home that truly represents their individuality and this is exactly what Zahra Apartments deliver. Specifically designed for single professionals, couples and families, Zahra Apartments serve as an ideal investment for a secure future, enabling them to save on rents by comfortably purchasing their own homes in Dubai.” Durie said. Zahra Apartments, like all Town Square residential projects, are thoughtfullyplanned. The living and dining areas have abundant natural light and offer open flexible space for a truly modern lifestyle. While soothing tiled floors and sound-proof windows make bedrooms an oasis of calm, in-built wardrobes and an ensuite bathroom assure convenience and privacy. District cooling and high-speed data connectivity add to the convenience. Customers can choose from different layouts of Zahra Apartments, some offering generous outdoor ter-

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race and others with direct access to the podium. Parking for vehicles is centrally located at a special podium that is ringed by the apartments. A vibrant courtyard that will serve as a community hub hosting social events and residents have easy access to a wide range of amenities including a swimming pool, kids pool, sunning deck and children’s play area. A green trail surrounds the apartment adding to the resort-like ambience. Interior amenity spaces have also been planned within each residential block, providing climate controlled common spaces for the residents. A gym/fitness centre for residents is standard in all buildings, while the double height lobby space, connected to the courtyard is programmed as a more formal seating area, and is serviced by the concierge. Town Square is located in New Dubai near Al Barsha, in close proximity to Arabian Ranches Golf Course, Dubai Polo and Equestrian Club and Al Maktoum International Airport, near the site for the World Expo 2020. It will feature over 3,000 townhouses and over 18,000 apartments as well as substantial retail, hospitality and commercial space. Town Square has a high land-to-building ratio, with more open spaces for a greener community. g Gulf Property

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Ahmed Khalaf Obaid Bin Touq Al Marri, General Manager of Union Properties

By Indrajit Sen Senior Reporter

ubai-based Union Properties will deliver 5 projects in the pipeline by 2019, a top company official told Gulf Property in an exclusive interview. The combined value of the projects – most of which are being developed in Motor City and in Dubai Investments Park (DIP) – is estimated to be around Dh2.52 billion. “All of these projects will be completed and delivered by 2019,” Ahmed Khalaf Obaid Bin Touq Al Marri, General Manager of Union Properties, told Gulf Property. “During this period, we will deliver the Green Community Phase 3 development in 2017. We also have the G+5 OIA project in Motor City under development,” he said. The Green Community Phase 3 project is an extension of Union Properties’ Green Community West project in DIP. Sprawled over 1.48 million square feet, the project will comprise 210 townhouses (of 3 bedrooms)

Gulf Property

UP to deliver Dh2.5b worth of properties

and 16 duplex apartments in one building. Moreover, the project is also offering 5,500 square feet of retail space and two leisure facilities. The public-listed developer has spent Dh684 million for the Green Community Phase 3 and expects to deliver the project by 2017 in three phases. “We have approached three banks for financing of our projects and we are in negotiations with them,” Marri revealed, although he did not wish to name the banks. Although he did not specify the pricing structure for resi-

dential units, he mentioned that they will be to the tune of Dh1,100 to 1,200 per square feet.

Motor City

The buyer always looks at the facilities in the area, he said. “‘Is it near to the town centre and the airport?’ ‘Are there hospitals, schools and other amenities in the neighbourhood?’ are queries that they have. They want to live in communities where all the facilities are there,” Marri said in reference to Motor City, which sits on Sheikh

Mohammed Bin Zayed Road, and is located between Dubai Sports City and Arabian Ranches. Union Properties is currently accelerating construction of two of its major projects in Motor City, the realtor’s master development, Marri said. One of those projects, named ‘Vertx’ is a cluster of 5 residential buildings; the tallest of them being 45 floors. Spread over a built-up area of 1.9 million square feet, Union Properties expects to deliver 700 residential units with the project. Besides, the project is offering 65,000

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DP sells out Mudon

ubai Properties said, it has sold out Phase 2 of its residential project, Mudon in Dubailand, comprising 120 townhouses, a senior official of the Dubai-based developer said. The 4-bedroom townhouses are part of the 398 Naseem villa units in Mudon. With prices starting at Dh2.5 million, the townhouses range in sizes between 3,786 to 3,800 square feet. “Buyers evinced strong interest in the remaining 120 townhouses released in summer of 2014. We attribute this response to the community’s value for money proposition as compared to other offerings within the same segment,” Abdulla Abushabieb, Executive Director for Sales and Customer Care at Dubai Properties told Gulf Property. “After we launched the Mudon development, Phase 1 of the residential units was also immediately sold out.” Dubai Properties had begun handing over Phase 1 of Mudon development.

square feet of retail space, apart from other recreational amenities. The development bill of the project tops Dh1.2 billion, of which Union Properties has allocated Dh800 million for construction. The developer expects to complete construction of the entire project by 2019, although it claims to deliver the tallest two tours of the cluster (G+45 and G+30) by end of 2017. The other project that Union Properties is banking on to boost profits is OIA Residence in Motor City. Designed to be a low-rise residential complex comprising

269 apartments of up to 4 bedrooms, the project is spread over an area of 184,000 square feet. The developer has spent around Dh440 million on the project, including Dh225 million for its construction, which it hopes to complete by December 2017. Besides, Union Properties is also coming up with a retail development worth Dh62 million worth in Motor City. Marri stated that the mall has 42,000 square feet of leasable space in offing. Focus on Motor City From what it appears, Union Properties does not

Besides the townhouses, Mudon comprises 400 villas in the 3, 4 and 5-bedroom categories. The key features of Mudon include a supermarket, retail outlets, mosque, medical clinic and sports facilities. Moreover, Dubai Properties has also tied up with GEMS Education to open a school inside the community by September 2016, a statement said. Apart from the Mudon development, which has so far been a ‘success’ for Dubai Properties, the realtor is also aggressively selling three other projects, which are at different stages of construction. Abushabib said, Dubai Properties launched a special payment plan for some of its projects such as Dubai Wharf. “We are offering payment plans where the customer, for some of our projects like Dubai Wharf, can pay around 10 per cent in 10 months and the remaining on handover,” he said. The Dubai Wharf – estimated to be a Dh700 million development – is located on the Dubai Creek. The project consists of studio, 1, 2 and 3-bedroom apartments, and 150 outlets. “It is a luxury have elaborate plans for expansion in other areas of Dubai. The realtor, as of now, seems content on consolidating their grip on their master development. The projects they were seen showcasing at the International Property Show were mostly located in Motor City. “People believe in our projects. As soon as they read or come to know about our projects, they flock to our offices to know more,” Marri claims. Aside from developing their flagship projects, Union Properties is also working on expansion of a project in Motor City, they do not en-

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project which offers direct views of the entire canal linked to the Dubai Creek,” Abushabib stated. Manazel Al Khor is another mixed-use project which Dubai Properties is developing on the Creek. Constuction of the project is ‘almost 30 per cent complete’, Abushabib revealed, adding that the project will be delivered in September 2016. The project consists of 76 residential units in the 3 and 4-bedroom categories, although Dubai Properties has recently also released 1 and 2-bedroom apartments. Dubai Properties has sought to meet the rise in demand for affordable housing, Remraam. Located in Dubailand the project comprises 56 buildings which are already constructed. The flats in Remraam are budget properties. Although its present focus is to sell out the four projects in their portfolio, the developer also has an eye on the future. “We have a good future plan,” Abushabib said. “We are targeting the Expo 2020 and there are a lot of developments that we have planned.” g tirely own. The Green Community at Motor City was sold to National Bonds in March 2014; although Union Properties is still in charge of the project’s management, including its marketing and sales. The developer hopes to complete Phases II and III of the project’s expansion – being built on two separate plots totalling 1.45 million square feet – by July 2017. Asked about Union Properties’ expansion plans, Marri stated, “We have a land bank of 12 million square feet in Motor City, which we will develop.” g Gulf Property

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Azizi to build 27 plots after injecting Dh4.5b

By Paromita Dey Senior Reporter

ubai real estate developer Azizi Developments plans to develop its existing land banks in Al Furjan and Dubai Healthcare City after investing Dh4.5 billion in Dubai’s property market with construction to begin in the next couple of months, Ali Omer, CEO of Azizi Developments, told Gulf Property in an exclusive interview. The company currently owns 27 plots in Al Furjan, and a plot in Dubai Healthcare City, which they plan to develop soon. “Our second phase will be a mixed use development in

Gulf Property

Al Furjan, we are in the process of conducting some feasibility study. So hopefully we will have another seven buildings in there. We also own a land in Healthcare City, which we plan to develop as a mix of residential and hotel. We are currently in the early stages of getting permits, so hopefully within a couple of months, construction will begin,” said Omer. The company launched five residential projects in 2014, including the sold-out Azizi Iris, one of its prime luxury properties. Around 70 per cent of the rest of its strategically located premier developments, namely the Azizi Liatris, the Azizi Orchid, the Azizi Yasamine and the Azizi Feirouz, have also been sold. Omer claims that con-

struction works for all five properties, which commenced in May 2014 are proceeding as scheduled and will be complete by the end of 2015, with prices starting from Dh950 per square feet. Azizi also has two projects in The Palm, located next to Anantara Residences, and comprises of luxury high end serviced apartments. “We will begin construction and excavation on one of the project by April, and hopefully in the next 18 months, it will be complete,” said Omer. The company also owns land in Ajman, but they are not looking at developing it now since they are only concentrating on Dubai at the moment. The company is also look-

ing at opening more sales centers, joining various major property exhibitions like the ones in Mumbai and Kazakhstan they recently attended, and launching new marketing initiatives to easily reach out to its customer base and attract more potential clients. Last year the company also revealed that it invested an estimated Dh4.5 billion in Dubai’s real estate sector till now driven by robust local demand for affordable luxury and value homes. Azizi Developments have bounced back from the 2008 financial slowdown after cancelling its previous projects in order to help clients that were facing financial difficulties failing to continue the payments of the already in-

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NEWSUPDATE View of London from the Principal Tower

Left: The Orchid, a project by Azizi Developments, which has invested Dh4.5 billion in Dubai’s real estate market Below: Ali Omer, Chief Executive Officer of Azizi Developments

British builder seeks Dubai investment

By Paromita Dey Senior Reporter

vested projects. The top management then decided to hold off sales and construction, meet with all clients and fully refund their payments. A system was established to accelerate the refunding process and all funds were paid back from the developer’s own account as to refund from the escrow account back in 2013. The cancelled properties, one of which was called Feirouz 1, 2, 3, located in Al Furjan, but are different from the current Azizi Developments projects, in particular the current Azizi Feirouz residential development which is well underway for construction. g

1 Developments, in a joint venture with asset management firm, Brookfield and Canadian residential developer, Concord Pacific, unveiled the Upper House, a collection of luxury apartments in Principal Tower, for GCC investors. Situated in London’s financial district, Upper House occupies the top 30 floors of the Principal Tower, a new 50-storey luxury residential establishment at Principal Place. With prices starting from Dh9.3 million for a 2-bedroom apartment and approximately Dh10,000 and above per square feet, the Upper House is the second phase launch at the Principal Tower. As claimed, the development is the first to be designed in and out by Foster + Partners, the architects behind global landmarks

such as the Zayed National Museum in Abu Dhabi, The Gherkin in London and Beijing International Airport. “Dubai is the first overseas destination for the project to be launched. Our customers in the GCC wanted spacious flats at a higher level with good and wide views. We, along with Jones Lang LaSalle (JLL), quickly addressed this issue and now what we are delivering is the Upper House, launched in Dubai,” said Christopher Murray, Managing Director, W1 Developments. The building is under construction at the moment and is in the first phase of its development. Just 30 minutes away from London City Airport, the Principal Tower will offer a range of F&B options including piazza, shops, offices, cafes and restaurants. It will also be linked to five major transport hubs, including London’s major Crossrail development. “The total value of the development of the whole project will be more than £250 million. We are under construction now and have sold most of the units up to the 20th floor,” added Murray. According to the recent JLL’s global capital market research report, London has

remained the favoured destination for Middle Eastern capital. Many Middle Eastern investors have been educated in the UK while the gulf has been a favourite destination of British expats, for many years, and this has certainly encouraged the flow of money. Property advisor CBRE also stated in its report that London recorded €32.2 billion (around $44.2 billion) worth of transactions in 2013, with the Middle East contributing roughly $7.5 billion. “Over the years, London’s stable real estate market has become known as a safe haven for Middle East investors, and the city remains the principal target for regional capital. In addition to that, we have witnessed an increasing interest from Middle East investors outside the traditional ‘golden postcodes’ of Belgravia, Knightsbridge, and Chelsea, in areas of ‘New London’ such as The City and Shoreditch. This interest is driven by a desire to spot new growth areas and benefit from higher returns,” said Tim Wright, Director – Residential at JLL, the selling agents for Principal Tower. g Gulf Property

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Al Zorah starts sale of Dh2bn Golf villas NEWSUPDATE

By Paromita Dey Senior Reporter l Zorah Development Company, a joint venture between the Government of Ajman and Lebanon-based Solidere International, officially launched the sales of their 42 Al Zorah golf villas in the Dh2 billion phase one of the Al Zorah project. Featuring rooftop terraces and set right

Gulf Property

on the Al Zorah Golf Course, the Golf Villas are a gated community within the destination. The contemporary-styled villas will comprise of terraces, swimming pools and rooftop terrace offering views of the golf course. Ranging from 479 to 692 square metres, three types of design are made available to the buyers and will offer living/dining room area with double volume space. The golf villa community will also offer 24-hour security, land-

scaped areas between the buildings and walkways. “The Al Zorah Golf Villas have been designed and developed to meet the requirements of investors who seek the best in life. The free zone and freehold project provides an added incentive for an investment opportunity for investors from around the world,” said Imad Dana, CEO of Al Zorah Development Company. Al Zorah project delivery is set to take place more than eight years after the project

was launched in 2007 – when the real estate market was driving the economy of the UAE. However, the financial crisis of 2008-09 had put the project on hold for a number of years. The project came to life following an upturn in the market seen from 2012 when the company started making detailed designs for development – that is currently visible. Despite the challenging conditions in the real estate market, Al Zorah continued its development plan and

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Golf Villas will overlook a new golf course at Al Zorah – a project that is set to transform the landscape of the emirate of Ajman

launched its first phase for sale which appears to be going ahead despite depressed market condition. Dana claimed that all the 42 Golf Villas have been sold out with prices ranging between Dh4–6.5 million. Construction of the villas is underway and is expected to be completed by mid-2016. The main contractor for the Golf Villas is Prestige Constructions LLC. “I agree that the villas are slightly on the pricier side, but our investors loved it be-

cause it is on the golf course. It is a first row development, immediately on the golf course, with very nice design and spaces,” said Dana. He also added that the payment plan is quite flexible, 30 per cent of the total amount as down payment and the remaining 70 per cent on completion and handover. The company has also tied up with Ajman Bank for financing options to be provided to the local and international investors. The golf course, overlook-

ing the Golf Villas, is expected to be complete by the end of this year, which means that the Golf Villas residents will move into a fully functional golf course. Al Zorah’s par-72, 18-hole golf course, by Nicklaus Design, is located within the native sandy areas and mangroves. Switzerland-based Troon Golf will operate and manage the project. The Golf Clubhouse will feature a gym, restaurant with views over the golf course, swimming pool, a

children’s pool, coffee shop, multipurpose conference room and a youth club. The golf course is expected to be complete by the third quarter of 2015 and the clubhouse by 2016. Nestled by over 1 million square metres of natural mangroves, home to more than 58 bird species, including the pink flamingos, 12 kilometres of waterfront and 1.6 kilometres of sandy beaches, the 5.4 million square metre Al Zorah project is divided into five disGulf Property

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NEWSUPDATE

Living in the nature... Al Zorah style

Luxury redefined

Construction work going on in full swing

Part of the Al Zorah master plan

tricts, namely Gateway, Beachfront, Peninsula, Creekside and Golf Course. The Dh60 billion project enables 100 per cent ownership of business, land, villas and apartments and establishment of business entities. The whole project would be home to 100,000 residents with the first residents expected to move in by early 2016. The Gates is the entrance of Al Zorah from Sheikh Mohammed Bin Zayed Road, where the highway transforms into a boulevard with retail amenities. The Shores will accommodate resorts

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Imad Dana, CEO of Al Zorah Development Co.

and serviced residences, a beach club and boardwalk, beachfront residential serviced apartments and villas. The Avenues, connected by a pedestrian retail and leisure spine, comprises an entertainment complex, a marina, Al Zorah souks and a retail centre. The Coves is a residential and hotel quarter planned as a neighbourhood with access to the waterfront promenade and views of the creek and mangroves. The Fairways is set within coastal dunes and the mangrove wetlands. It also boasts a clubhouse, wellness spa, upscale residential

villas and apartments. Phase one of the project is currently progressing and includes four marinas, two beachfront hotels and resorts, an 18-hole golf course and clubhouse, golf villas, serviced residential apartments, a boardwalk, a beach club and a wellness centre. The project will include six resorts and boutique hotels, of which two are currently being developed as part of phase one. The hotels in the integrated mixed-use development will be the Oberoi Al Zorah which will feature 113 guestroom suites, 290 metres of beach-

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This is how Al Zorah will look like, when completed

Life redefined

front, a wellness spa, restaurants and swimming pools; and Lux Al Zorah which will feature 193 rooms, suites and villas with 260 metres of beachfront and a number of entertainment options. “Both the hotels are completely owned by us and are expected to be complete by 2016. Our contractor for the resort is BESIX,” said Dana. Located on the water, the beach club offers F&B outlets, a nightclub, a spa, a fitness centre, and separate outdoor pools for adults and children with lounging areas. The boardwalk is a pedestrian spine serving as a des-

tination accommodating a mix of retail outlets, restaurants and nightclubs. The Beachfront residences are a residential complex composed of an internal courtyard, private gardens, and courtyards overlooking the beach. The beach club and boardwalk is expected to be complete by 2017. “We are currently progressing steadily, with our phase one nearing completion and the phase two in the design stages. We are planning to launch the sales for the phase two of the project in the Cityscape next year,” claimed Dana.

He also added that after the phase one of the project, the next step in their construction would be completing the serviced apartments, beach villas, townhouses and apartments overlooking the beach and the villas within the resorts. The serviced residential apartments, in the phase one, includes Linear Park residences with sea views and private amenities, including a swimming pool and gym. The Marina Square residences are a family-oriented waterfront serviced apartments, benefiting from ac-

cess to all the amenities and facilities of the resorts. Both of the serviced residences are expected to be complete in 2017. “By the end of 2015, all the roads and infrastructure works for phase one will be completed. We are also aiming to complete all the landscaping work of the real estate projects in phase one. The projects under design are currently Al Zorah Shores which consists of beach villas and apartments, Boardwalk residential tower, Marina Square residential and Linear Park residential,” Dana concluded. g Gulf Property

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Seven Tides unveils Dh650m hotel project GULFTOURISM

By Indrajit Sen Senior Reporter even Tides, a Dubai-based luxury property developer, unveiled a hotel and serviced apartments project in Palm Jumeirah. Being developed at a cost of Dh650 million, the Dukes Oceana is spread over a built up area of 240,000 square feet. Construction of Dukes Oceana, located on the trunk of Palm Jumeirah, will start this year and Seven Tides expects to deliver the project in Q1 2016. “The

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main structure is ready, although the civil works, including Mechanical, Electrical and Plumbing and interiors, are remaining,” Abdulla Bin Sulayem, CEO of Seven Tides, told Gulf Property. Sulayem did not wish to name the main contractor for the project, saying, “We are in negotiations with them (contracting firms) and will announce them later.” AHK International LLC is the interior designer of the project. The Dukes brand had been acquired by Seven Tides in 2006, effectively making Dukes Oceana among the few hospitality projects in Dubai to be both

owned and managed by the developer. The upcoming project is also the first international property for the Dukes brand, whose flagship hotel is the Dukes London. Dukes Oceana is Seven Tides’ second project in Palm Jumeirah. The developer owns a similar luxury development, Anantara Dubai The Palm Resort and Spa, which also offers 456 apartments as part of the Anantara Residences, located within the hotel. Although Seven Tides owns the resort, it is managed by Thailand-based global hospitality brand Anantara Hotels, Resorts and Spas. “We have had a good ex-

perience with Anantara and it has been a successful venture for us,” Sulayem told the media. “We wish to experience the same with Dukes.” Investors can expect a guaranteed 10 per cent return on investment (ROI) annually for the first five years from their apartments at the Dukes Oceana Dubai Residences, Sulayem assured at the launch of the development. “International high networth individuals (HNWIs) consider lifestyle appeal as a major criteria when looking to grow their investment portfolio and Palm Jumeirah fits the bill in every respect.

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GULFTOURISM

Abdulla Bin Sulayem, CEO of Seven Tides

This is further endorsed by Dubai’s longstanding reputation as a globally connected gateway and world-class commercial hub offering a high standard of living,” Sulayem said. Being sold as fully-furnished freehold residences, Dukes Oceana Dubai Residences comprises 227 units; 185 studios and 42 one bedroom apartments. It’s onebedroom apartments, ranging in sizes between 782 to 834 square feet, are being sold at prices up to Dh2.5 million. Price for the studios, ranging from 286 to 652 square feet, start at Dh760,000. “Dubai continues to offer value for money even at the

top end of the investment spectrum, especially when it comes to apartment square footage compared to other major metropolises such as London or New York,” Sulayem stated. “Investors will also be able to enjoy complete peace of mind knowing that their investment is being managed by the Dukes operations team around-theclock, and that it’s in professional hands from day one.” Dukes Oceana will be a 15-storey hotel with 273 rooms. Seven Tides says it will offer leisure and entertainment facilities including a private beach, indoor pool, outdoor infinity pool, conference facilities, gym, and a

number of British and Asiancuisine restaurants and lounges. “With this launch (hotel) we are bringing quintessential British charm and style to the UAE and blending it with cosmopolitan luxury to create a unique residence and hotel situated in the heart of Dubai’s most desirable island community, Palm Jumeirah,” Sulayem remarked. “There is no point in opening a hotel like any other hotel in the city. We wanted to create something iconic,” he stated. The demand for affordable housing in Dubai is growing exponentially and developers considering this urgent need have off late focussed

on developing budget properties. As a result the luxury market’s scope has become narrow and leading investors to think if this is a ‘good time’ to buy. “Dukes Oceana is not a city hotel but a resort. There will always be risks, but we are not worried,” Sulayem retorts. “The Palm Jumeirah is a very successful destination for hospitality. Our past experiences with our projects at the Palm have been good. Hence we decided we are now ready for another project. We have a lot of confidence in ourselves and the Dukes management team. We have a shopping mall coming up in Palm Jumeirah. So there are a lot of factors that will help us succeed,” he added. Seven Tides, a homegrown company formed in 2004, has plans of launching more projects within Dubai. Besides the Anantara development, Seven Tides’ portfolio in Dubai also includes the New York-themed ‘West 14th’ restaurant in Palm Jumeirah and the 5star Movenpick hotel at the Ibn Battuta Gate. “We have contracts with Anantara and Movenpick which we respect and will maintain,” Sulayem stated. Moreover the company also leases commercial and residential spaces at the Ibn Battuta complex and in the Discovery Gardens. Bin Sulayem said, the company has a considerable budget allocated for acquisitions. Seven Tides is also looking to explore international markets including Saudi Arabia, India (which Sulayem dubbed as a ‘very good market’) and China. It is also poised to launch resort projects in the Maldives and Seychelles. g Gulf Property

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GULFTOURISM

Emirates Grand to open 5 hotels by 2020

By Paromita Dey Senior Reporter

mirates Grand Hotel, the 47-storey tower located on Sheikh Zayed Road, plans to open five hotels by Expo 2020, according to a senior official. The hotel is also opening Emirates Grand Resort Fujairah in the first quarter of next year, Tarek Aouini, General Manager, Emirates Grand Hotel and Hotel Apartments, told Gulf Property in an exclusive interview.

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In total, the hotel plans to add approximately 1,500 rooms to their existing portfolio by Expo 2020. Currently there are two properties under the hotel portfolio, Emirates Grand Hotel and Emirates Grand Hotel Apartments. The company also manages the Tulip Inn Sharjah, a 127-room property located in the city right next to Mega Mall. “As part of our expansion plans, we will have five more hotels in the UAE by Expo 2020. We are also opening Emirates Grand Resort Fujairah in the first quarter next year,” said Aouini.

The second property, Emirates Grand Hotel Apartments, a sister company of Emirates Grand Hotel, located on Sheikh Zayed Road, is expected to be fully operational in May 2015 before the Arabian Travel Market (ATM). The new property, with 346 units, will target business travellers as well as families with short and long terms offerings. The hotel apartments would be the second in offering in the hotel’s portfolio, which currently has the Emirates Grand Hotel, a 430room property, located opposite to the new develop-

ment. Guests at the new hotel apartments will be able to choose from studios to convertible two-bedroom suites in categories such as sea view and Burj Khalifa view. To cater to Arabic culture and hospitality, the property will offer enlarged and modern rooms featuring a well-equipped kitchenette, free WIFI, flat-screen TV, tea/coffee facilities, seating area, balcony in some rooms and private bathrooms. Other facilities include an indoor swimming pool, sauna for men and women, steam room, tennis court, valet parking, concierge, house-

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Tourism adds $7.6 billion to Qatar’s economy

C Tarek Aouini, General Manager, Emirates Grand Hotel and Hotel Apartments

keeping and kids club. The soft opening of the hotel apartments was done in December 2014, with a target of completing all the refurbishments by May to be ready before ATM. “Emirates Grand Hotel is a home grown brand, and started with one hotel in Dubai four years ago. All our rooms are spacious, suited to the tastes of GCC travellers. The lowest category in the new property is the deluxe room, but it can compete with the suites of other hotel apartments present in the area,” said Tarek Aouini. He also added that the

hotel apartments are expected to see full occupancy by Eid Al Fitr, “We will be ready by May, but in the next few months, there will be hardly any demand because of Ramadan. So we will be gradually increasing our staff during that period so that during Eid Al Fitr, we can serve full occupancy.” The 4-star non-alcoholic, hotel apartments will offer one all-day rooftop dining outlet with panoramic views of the Burj Khalifa and will also host special events. As claimed by Aouini, the prices will be competitive as compared to other hotel apartments in the area. “Prices for each rooms will be competitive, as compared to other hotel apartments on Sheikh Zayed Road. We can’t disclose the total development value of the project, but the category will be competing with the nearby hotel apartments, providing the same quality of service.” g

ontracts worth Dh9.1 billion US$2.5 billion) were awarded the hotel and tourism sectors in Qatar last year. Tourism adds US$7.6 billion to Qatar’s economy, according to a recent report. Projects totalling $8.48 billion are currently underway that will set Qatar up as a major tourist and venue attraction, including Doha Festival City, Doha Convention Centre, Rayyan Mall (Mall of Qatar), Doha Zoo, Lusail Museum, Katara Towers, and not forgetting the FIFA World Cup football stadiums, home to the FIFA World Cup in 2022. The total number of projects planned or underway include five museums and libraries; 57 hotels and resorts; 22 shopping venues; 21 sports facilities; 11 theme parks, 6 convention centres; and a state-of-theart theatre. Qatar saw 2.8 million visitors enter the country in 2014, an 8.2 per cent increase in numbers over the previous year, generating 61,000 jobs in the tourism sector and an economic injection of $7.6 billion, equal to 8.3 per cent of Qatar’s non-extraction GDP, according to IFP Info. More than 40 per cent of tourists came from other GCC countries, 15 per cent from European countries and 28 per cent from Asia and Oceania, according to figures released by Qatar Tourism Authority (QTA). Hotel occupancy rates increased to an average of 73 per cent in 2014, with fivestar properties enjoying the

GULFTOURISM

lion’s share of visitors, and hoteliers in 2015 are expecting those numbers to rise further. “Qatar has witnessed astounding economic growth over the past decade, and this has translated into a healthy tourism sector focused on culture, shopping, sporting events, meetings and exhibitions,” Nadege Noblet, Exhibition Manager, Arabian Travel Market, says. “The recent completion of important infrastructure projects, such as the iconic Hamad International Airport in 2014 and Qatar Airways’ plans to significantly expand its capacity across Europe this year, has confirmed Qatar’s position as an important travel and tourism hub for the region.”

Kuwait

Kuwait is witnessing US$2 billion (Dh7.3 billion) worth of projects in the tourism sector. According to the Aranca Q3 2014 MENA Tourism and Hospitality Report, Kuwait’s tourism sector is undergoing a sea change with a number of new projects in the pipeline. Kuwait currently has around 7,256 hotel rooms with a further 1,958 rooms and up to seven contracted hotels and resorts in the pipeline.These include a new passenger terminal at Kuwait International Airport, which is being spearheaded by the Kuwait Directorate General of Civil Aviation. Scheduled for completion in 2016, the US$4.8 billion contract will increase capacity from six million in 2013 to 13 million by 2016, and up to 25 million per annum by 2025, according to the Centre for Aviation (CAPA). g Gulf Property

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SPOTLIGHT Corodex wins award from Dubai Municipality

orodex Trading, the Dubai-based company offering water solutions to the Middle East region, was awarded the ‘Distinguished Supplier of the Year 2015’ at Dubai Municipality’s Creative Suppliers 2015 event. Corodex said in a statement that it beat 25 other suppliers to win the award for the first time. The award honours Dubai Municipality’s best suppliers, acknowledging their work and support to achieve the civic body’s strategic vision. Each supplier is measured against a set of Key Performance Indicators (KPIs), with the award going to the company that performs the best on the aggregate of KPIs. Corodex Trading supplies wastewater treatment and pumping station equipments to the Dubai Municipality, including odor control systems, selfcleaning filters, sluice gate valves, sludge dewatering units and pumps. In addition to Dubai Municipality, the company is also a supplier to other distinguished UAE government entities, including the Sharjah Municipality, Dubai Electricity & Water Authority (DEWA), Federal Electricity & Water Authority, Abu Dhabi Water and Electricity Authority, and Ministry of Public Works. g

Gulf Property

Land Department feted for service excellence

he Dubai Land Department (DLD) has won two government awards, under the categories of ‘Innovative Leader’ and ‘Creative Idea,’ in the Dubai Government Excellence Programme. Majida Ali Rashid, Assistant Director General and Head of Investment Management and Promotion Center was awarded as the ‘Innovative Leader’, in recognition of the role, her department played and its participation in the preparation of numerous initiatives that serve the real estate sector, a press release from DLD said. DLD bagged the ‘Creative Idea’ award for the accomplishments of its Real Estate

Majida Ali Rashid, Assistant Director General and Head of Investment Management and Promotion Center at the Dubai Land Department, receives Dubai Government Service Excellence Awards from His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

Development Programme (Tanmia), ‘which was launched in September 2011 to revitalise the real estate sector and to encourage investment through the forging of relationships that ensure investment returns for all parties’, the statement mentioned. Additionally, DLD was also nominated in a third category: ‘Distinguished Administrative Idea.’ HE Sultan Butti Bin Mejren, Director General of DLD, said, "We express our gratitude for the two honours and are extremely pleased and proud to have been recognised for our efforts in this current session of the Dubai Government Excellence Programme. These wins are an

acknowledgement of the incredibly high quality of our work, but they are also a challenge for us to maintain our level of excellence and to achieve even greater success in our participation of the next session of the programme," The Dubai Government Excellence Programme is held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to ‘improve the performance of Dubai's government sector and recognises and rewards exceptional government employees, departments and initiatives’, an official statement says. g

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Arabtec gets new CEO for construction arm

rabtec Holding has announced that it has appointed Raja Hanmi Ghanma as Chief Executive Officer of Arabtec Construction. In a statement to the Dubai Financial Market (DFM), the Dubai-based conglomerate said that the decision to appoint Ghanma was taken to support Arabtec’s ‘continuous development efforts and to maintain its dynamic strategy to achieve greater success’. Ghanma has around 35 years of engineering and construction experience and has worked for Arabtec for more than 20 years. He was one of the founders of Arabtec Holding in 2004 and prior to that, he was also the Chief Operations Officer of Arabtec Construction. He

holds both a bachelor's and a master's degree in civil engineering from the University of Texas. The move comes as the company prepares to build one million homes in Egypt, supported by the UAE Government. g

aine & Horne - an Australian real estate enterprise – has announced the opening of its first office in Oberoi Center in Dubai’s Business Bay district. The office will be led by Sanjay Chimnani and Surender Bhojwani, ‘two experienced property specialists’, the company said. The company said it will initially offer sales services for residential, commercial and retail properties, and plans to expand to other emirates including Abu Dhabi and Ras Al Khaimah in future. The company’s offices will be led by Sanjay Chimnani and Surender Bhojwani, two experienced property specialists. According to Angus Raine,

Chairman, Raine & Horne International, the company is upbeat with its entry into the UAE real estate market, particularly in Dubai, which has emerged from the recent economic gridlock as a lead-

MAF names new CEO for its properties division

ajid Al Futtaim has announced to the media the appointment of Bertrand Julien-Laferriere as the new Chief Executive Officer of Majid Al Futtaim Properties. Julien-Laferriere joined in February 2015 and is responsible for the overall growth of the group’s entire property portfolio worth US$10 billion, in addition to the pipeline of development projects, a statement from the company said. The portfolio comprises 17 shopping malls, which includes the Mall of the Emi-

SPOTLIGHT rates in Dubai and the City Centre mall network, plus 11 hotels and three mixeduse communities in the MENA region. Commenting on the appointment, Alain Bejjani, CEO of Majid Al Futtaim Holding, said, “Bertrand has extensive experience in international development and in managing real estate firms over the past 30 years. His appointment will help strengthen Majid Al Futtaim’s regional leadership position and I know he will play an instrumental role to support the future of the company and our next phase of growth.” Following the appointment, Ghaith Shocair will resume his role of Chief Financial Officer for Majid Al Futtaim Properties after stepping in as Acting CEO since September 2014. g

Raine & Horne opens office in Dubai

ing regional commercial hub with infrastructure and a world class business environment. Established in 1883, Raine & Horne has offices across Australia and other key na-

tions, and provides property advisory services for local and global markets. As a part of its current expansion strategy, the company says it has opened up over 300 offices globally. g Gulf Property

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SPOTLIGHT

Etihad ESCO joins with wasl

tihad ESCO and wasl Asset Management Group have signed a memorandum of understanding (MoU) to conduct a feasibility study that will assess the current energy efficiency of wasl Group’s buildings and facilities. As one of Dubai’s foremost property construction and management companies, wasl currently has a property portfolio of 450

buildings that span the hotel, residential and commercial sectors. The Etihad ESCO wasl agreement forms part of the efforts to implement directive number One of 2015, issued by Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, to audit electricity and water consumption in government buildings in Dubai. The MoU was signed

asweek Real Estate Development and Marketing has told the media that it has received an award for ‘Best Private Medical Project in Morocco and Africa’ for its Marrakesh Healthcare City (MHC) development, at the 2015 Medical Expo held in Morocco in April. Marrakesh Healthcare City is a mixed-use $60 million residential and healthcare complex and is one of the first mega healthcare investment initiatives in Morocco. It covers an area of around 21,000 square metres and is located a few minutes away from the national airport and

the Central Business District of Marrakesh, Morocco’s third largest city. The city is expected to commence operations by the first half of 2015. Masood Al Awar, CEO of Tasweek, said, “We thank the organizers of the expo for recognizing our contributions to Morocco’s healthcare landscape and for seeking our opinions and suggestions on how to develop medical tourism for the benefit of the country. We believe that the property sector should broaden its contributions further towards building infrastructure to optimize medical services.” g

by Stephane Le Gentil, CEO of Etihad ESCO and Abdulla Obaidalla, COO of wasl Asset Management Group, in the presence of Saeed Mohammed Al Tayer and Hesham Abdullah Al Qassim, CEO of wasl Asset Management Group also present. “We have established Etihad ESCO to support the Dubai Plan 2021 and the Dubai Integrated Energy Strategy 2030 to reduce the energy demand by 30 per cent by 2030. Etihad ESCO works towards promoting optimal use of energy, improve the energy efficiency market and retrofit over 30,000 existing buildings in Dubai,” said Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy and Managing Director and CEO of DEWA. g

Red Sea Housing names new CFO

ed Sea Housing Services Company (RSHS), present in over 60 countries, has announced the appointment of Prabhakar Kesavan as its new Chief Financial Officer (CFO). Kesavan will oversee the finance, accounting, tax and treasury departments of RSH’s Industrial Housing, Building Materials, and Affordable Housing platforms, the company says in its statement to the media. Kesavan holds a Bachelor’s Degree in Commerce from the University of Madras, India and is an Associate Member of the Institute of Chartered Accountants (ICA). g

Tasweek wins award at Medical Expo

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