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Real estate exempted from VAT for three years!

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Expo 2020 to be the ‘greatest in history’

COVER INTERVIEW Adel Al Breiki, Founder of Xanadu Real Estate

SPECIAL FEATURES Tourism spending hits Dh110 billion in the UAE in 2016 Demand for spacesaving furniture grows in the UAE Aviation projects value hits Dh210 billion in the GCC

Adel Al Breiki:

The man who finishes unfinished projects

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EDITORIAL

Real estate gets three-year exemption from Value-Added Tax

With the holy month of Ramadan upon us and the preparation for summer exodus, the market is expected to slowdown due to reduced activity in the UAE and the GCC

he region’s real estate market is takes an early breather before the summer vacation due to the holy Month of Ramadan when businesses traditionally slows down. Due to the difference between the lunar and solar calendar, every year Islamic months advance by 11 days. As a result, Ramadan started on May 27 this year. Next year, it will start on May 16. For the businesses, this means extended summer break till the beginning of September – when Cityscape Global – the largest real estate exhibition will kick off the new business season. For all of us in the property market, that event will set the tone for the next nine months business activities.

The season starts with one of the best news items that the real estate fraternity could hope for: Exemption from Value-Added Tax (VAT) for three years. This means, the real estate industry will remain free from VAT for the first three years. As an industry vanguard, we welcome the government’s move that is expected to help the real estate sector recover from the current lull. It is a very wise decision and will help the real estate sector and property buyers. However, the VAT in building materials and construction sector will have a slight effect in the overall pricing of homes – that the contractors might pass on to the developers who might pass it on to the property buyers. But as such, property transactions on new buildings will remain free from VAT till 2021.

The current low-price environment offers the best buying opportunity for the end-users. However, if the end-users delay their purchase decision, they might lose out as a number of Real Estate Investment Trust (REIT) funds are entering the market. They might snap up large inventories of new homes and put them in the rental market till prices start to appreciate. So, if that happens later this year, prices of new properties could jump.

In the recent months, a number of REITs are seen entering the market. Some of the major lenders are also packaging funds for property investment through REITs – that will push up the prices.

Meanwhile, as we mark the holy month of Ramadan – a month of forgiveness and giving – let us put our efforts together to support charitable causes so that we could all celebrate the Eid Al Fitr festival. An advanced Eid Mubarak to all!

– T. Akhtar

CONTENTS

COVERSTORY

The man who finishes the unfinished works

PROJECTNEWS

EXECUTIVEOPINION

Christine Lagarde/IMF Mohanad Alwadiya/Harbor Real Estate Mahmood Shaikhani/ Shaikhani Group Noorul Asif/Schon Dhiren Gupta/Mortgage 4C

FOCALPOINT

33 34 35

Gulf aviation project value crosses Dh210 billion 56 Danube launches Bayz 60 Nakheel awards Palm Gateway contract 64 Schon Properties break ground for Dh3.2 bn iSuite 66 Shaikhani delivers 100 keys 68

PROJECTNEWS

Real estate sector gets 3-year VAT exemption 36 Expo 2020 rolls out massive construction contracts 40

PROJECTNEWS

GULFTOURISM

UAE tourism spend exceeds Dh110 billion in 2016 70 Space-saving furniture gains popularity 74

REGULARFEATURES Realty Bytes Spotlight

GULF PROPERTY

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

EDITORIAL

EDITOR T. Akhtar editor@panasian1.com

ASSISTANT EDITOR Anita Joseph a.joseph@panasian1.com

EDITORIAL COORDINATOR Zeba Malik z.malik@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

10 78

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 editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property

REALTYBYTES

RAK Properties reports 61% jump in profit

AK Properties, Ras Al Khaimah's largest publiclylisted property developer, has reported a 61.41 per cent jump in profits during the first three months of this year to Dh66.84 million, up from Dh48.12 million in 2016. Similarly, revenues over the corresponding threemonth period increased to Dh115.53 million, up from Dh71.5 million in the corresponding period in 2016. The company is currently focussing on Mina Al Arab, it’s flagship mixed-use master devemopment. RAK Properties’ total assets rose to Dh5.06 billion as at March 31, 2017, up from Dh4.99 billion recorded on March 31, 2016. Mohammed Sultan Al Qadi, RAK Properties’ Managing Director and Chief Executive Officer, said: “RAK Properties continues to go from strength to strength and our latest sales figures are testament to the confidence investors have in our developments across the UAE. Ras Al Khaimah is establishing itself as a strong proposition for investors and home owners alike, with significant demand for waterfront property. Through our own developments, we are meeting this demand and providing communities that encompass affordable luxury in an idyllic setting.g

Gulf Property

Dubai to regulate rent in freehold areas

Dubai Land Department said it will develop an action plan to regulate lease deeds within the emirate’s freehold areas

he Dubai Land Department (DLD) said it will regulate rental agreements and lease registrations in Dubai’s freehold and free zone areas that have largely remained out of its regulations. DLD also said it will be developing an action plan through its Rental Affairs Sector to regulate lease registrations and that the step is being taken to facilitate services in all of these areas for customers from all categories. The Rental Affairs Sector is cooperating with a number of developers to coordinate the successful implementation of the new plan, which promises to provide ease of service to customers. The regulated action plan has the support of Dubai Investments Park (DIP), the integrated commercial, industrial and

residential community in the Middle East and whollyowned subsidiary of Dubai Investments, where officials from both DLD and DIP met to discuss the regulation of lease registrations and associated services, the responsibilities of the different parties and methods for improving customer services. Hamdan Al Madhani, Director of the Rental Relations Regulatory Department at DLD, commented: “We are pleased to partner with Dubai Investments Park and exchange best practices that will help us achieve strategic objectives and shared goals, while ensuring that we adhere to the regulations in place at our respective departments. We at DLD are keen to support the success of real estate projects in the UAE, and to provide our customers with easy, convenient services that enhance their

happiness and satisfaction.” In line with these objectives, Dubai Investments Park has agreed to fulfil DLD’s requirements in phases, including updating relevant data for all properties that are under DIP jurisdiction and registered in DLD’s Ejari system. Ammar Al Duwaikh, Deputy General Manager of the Commercial Department at DIP, said: “Dubai Investments Park is thankful to the Dubai Land Department for its support in all of our initiatives.” “The department has been a strong partner in DIP’s success since its inception, and DIP appreciates the guidance of the Dubai Land Department and its various sub-divisions in all of the endeavours which have been pivotal in our growth journey over the past 17 years,” he added. g

REALTYBYTES

Dubai Properties launches Casa Viva

UAE’s real GDP to grow 2.7% : Report

AE’s real GDP is expected to grow 0.9 per cent this year from 2.2 per cent in 2016, says a Bank of America Merrill Lynch report. “The headline figure masks a likely contraction in the oil sector due to the OPEC deal, but we see non-hydrocarbon real GDP growth picking up to 2.7 per cent in 2017, from 2.3per cent in 2016. Over the medium-term, we expect non-oil growth to increase to 3-3.5 per cent on the back of greater Expo 2020 projects”, the report says. After averaging 10 per cent annual growth from 2000-10 and a slump in 2009, Dubai’s real GDP growth was 4.1 per cent in 2015, slowing to 2.5 per cent in 9m16. Growth remains broad although the construction sector is the laggard. The fastest growing

sectors are restaurants and hotels, electricity, gas & water, transport and real estate. The key sectors in real GDP are whole and retail trade (c30 per cent of real GDP), real estate and construction (a combined c22 per cent), transport and communication (c15per cent), finance (c12 per cent) and manufacturing (c12 per cent), the report adds. “We estimate the incremental government capital spending for the Dubai Expo can increase Dubai’s GDP growth by 0.5 ppt in 20172019, all things being equal. While there are a number of uncertainties surrounding meeting tourism targets and spending forecasts, we estimate that the Dubai Expo can raise Dubai's GDP growth over the period of the fair in 2020-21 by 2ppt

through higher job creation, consumption and tourism flows,” the report says. Abu Dhabi’s real GDP grew by 2.8 per cent in 2016, from 5.0 per cent in 2015. Non-oil real GDP growth slowed to just 2.8 per cent in 2016, from 8.6 per cent in 2014. The Dubai government is likely to have recorded a small budget surplus in 2016. “Still, we expect the fiscal balance to shift to modest deficits (1-2 per cent of GDP) from 2017 onwards as capex associated with the new airport, new metro lines and Expo 2020 come on line,” it adds. The report said it expects external debt issuance to pick-up consequently. Dubai fiscal outturns have been outperforming expectations over the past two years on the back of prudent spending and strong revenues. g

ubai Properties, a leading Dubaibased real estate master developer and asset manager, has launched the sale of Phase 3 of the family-friendly Serena community at Dubailand, at the DP Customer Services Centre in Ras Al Khor. The launch of Casa Viva residential townhouses in Serena follows the success of the previous releases in Phase 1 and Phase 2 of the masterplanned community, Bella Casa and Casa Dora respectively. Inspired by Spanish design and architecture, Phase 3 of the community, Casa Viva, will include over 450 units of two- and three bedroom townhouses. Launched in 2016, Serena features a total of four affordable residential sectors that will be served by three community centres as well as a lifestyle plaza. With competitive prices and attractive payment plans, Casa Viva offers the perfect investment opportunity forfamilies looking for a dynamic, vibrant and energetic lifestyle. Masood Al Awar, Chief Officer Commercial at Dubai Properties said: “Through the launch of Casa Viva in Serena, DP is invariably enhancing the affordable segment and market dynamics, which is one of our key objectives for 2017.” g Gulf Property

REALTYBYTES Construction of Eaton Place in Jumeriah on track

llington Properties, a Dubai-based design-led boutique property development company that develops bespoke and beautiful high-quality homes, said that the construction of its new Eaton Place project is progressing rapidly, underlining the company’s growing portfolio to potential buyers, investors and real estate companies. Eaton Place is in Jumeriah Village Circle (JVC), which is already a magnet for bespoke residential developments highly soughtafter by young families and professionals. Robert Booth, Managing Director of Ellington Properties, said: “Dubai’s property sector continues to record robust growth in the run up to Expo 2020 Dubai, even as the population is expected to increase by over 11 per cent over the next five years.” Designed for community living, Eaton Place offers a collection of studios, one and two-bedroom residences overlooking a resort style pool courtyard. The interiors are replete with the concept of play on pastel neutrals, inspired by the tonalities of a desert rose. Trendy colour schemes present a sophisticated and fashionforward look and the wood effect beige porcelain tiles provide warmth. g

Gulf Property

‘Contractors to face a challenging year’ There will be many new challenges to address this year, reports say

iddle East Economic Digest (MEED) – a major source of construction-related information – has urged contractors to be prepared for a challenging year. “Contractors should be prepared for a challenging year however,” MEED editorial director Richard Thompson said in a statement, while releasing MEED’s Outlook for GCC Construction 2017. “There is no doubt that the worst is behind us for the region’s construction market,” Thompson said. “The sharp cuts to spending in 2015 and 2016 across the region, particularly in Saudi Arabia, Qatar and Abu Dhabi, have been very painful for the GCC construction industry. But the recovery in oil prices and the implementation of reforms mean that we will see things improving throughout 2017,” he added. The GCC region offers significant opportunities for con-

struction companies despite the slowdown in project spending, the report sates. It also adds that while the outlook for GCC-based construction companies will improve in 2017, a fall in the volume of new opportunities, coupled with increased uncertainty about project timelines, will see the construction marketing further hardening in response to increased competition. “The reform programme will take time to kick in and while we can expect to see key projects moving forward this year, there is still considerable uncertainty about delivery timelines,” Thompson said. The recovery in oil prices in 2016 eased some of the pressure on government finances, while the increased pace in the roll out of economic reforms will see an improvement in confidence as well as an increase in new forms of project models such as public private partnerships (PPP), the report states. All GCC governments wish

to increase their private sector investments in order to ease the burden of capital spending on the treasury and this will create new opportunities in the year ahead. Governments have been taking important steps to develop new revenue streams as well as tapping debt markets, which will help clear up payment arrears. However, the report states that considerable risks exist. Capital spending will remain constrained and the success of PPP has been limited in the past, so there will be many new challenges to address, it adds. Dubai recorded the lion’s share of project activity in the UAE in 2016, accounting for 72 per cent of all construction and transport deals in the country, while project spending fell sharply in Abu Dhabi. The region’s strongest markets over the past 12 months were Dubai, Kuwait and Bahrain, which saw its second-best year for awards since 2007. g

Investors bat for secure incomes

pecialist property is being recognised by investors as a source of long-term secure income, according to a report. An amount of £52.2 billion has been transacted in specialist property assets since 2007 and its popularity is set to continue, with investment volumes forecast to reach £15bn this year, says Knight Frank’s report titled ‘Rest Assured Specialist Property’. In a period of geopolitical uncertainty, investors are seeking out long-term, safe investments and this in turn is driving the demand for specialist property assets, it adds. Investment in UK commercial property volumes dropped by 35 per cent in 2016 to £46 bilion, however £10.5 billion (22.7per cent) of investment was in specialist property, representing a new high. The uncertainty experienced over the past year has affected commercial property

volumes as a whole. Within this, specialist property volumes also experienced a fall for the first time since 2009. However, this fall in volumes was not due to a lack of investor appetite, investors have in fact been dissuaded from making their purchases in the specialist arena as a result of the lack of available assets. Shaun Roy, Head of Specialist property at Knight Frank says: “The growing appetite for long-term secure investments with good covenants amid the current uncertainty has intensified, which is driving the demand for specialist property. Investors now regard the granularity of the income derived within the specialist sectors as a positive rather than a threat, and a facet that improves its durability of income. The outlook for the coming year is positive and increased liquidity should draw particular attention to

specialist assets.” The desirability of specialist property is expected to continue going forward. As capital growth slows across many commercial property sectors and money flows more freely, investors will be drawn to these types of assets, which offer relatively longer lease term agreements and indexlinked rents. Income returns within the sector reached 5.7 per cent in 2016, exceeding the traditional commercial sectors, a characteristic which will be particularly important in ensuring specialist property’s pace as a highly sought after commodity. “With the growth in maturity and depth of the specialist sectors globally, we expect to see continued strong interest in alternative types of real estate due to the long, robust and often inflation linked income streams on offer,” says Joseph Morris, head of Global Capital Markets at the Knight Frank Dubai office. g

REALTYBYTES

DIFC enables companies to trade in real estate assets

ubai International Financial Centre (DIFC), the leading financial hub in the Middle East, Africa and South Asia (MEASA) region, has signed a Memorandum of Understanding with the Dubai Land Department (DLD) to allow DIFCbased companies to purchase and register properties with the DLD. The move will help DIFC-based businesses, especially the Real Estate Investment Trusts (REITs) to directly invest in Dubai’s real estate assets, that is expected to boost the emirate’s property market – ripe for REITs. With property prices at a historic new low, the move will help REITs cash in on the new opportunities. The strategic agreement, signed by Essa Kazim, Governor of DIFC, and Sultan Butti Bin Mejren, Director-General of the Dubai Land Department, will simplify the land owner registration process with DLD for DIFC-based companies, partnerships, foundations, REITs and real estate funds. “This innovative approach will be a catalyst for encouraging greater institutional investment into Dubai’s real estate sector, which remains one of the fastest growing segments of the emirate’s economy, with approximately 20,000 real estate transactions worth Dh77 billion recorded in Q1. g Gulf Property

REALTYBYTES

rabtec Holding PJSC, a loss-making contractor, reported its gross profit to Dh91 million in the first quarter of 2017, up from Dh39 million recorded in the same period last year. Gross margin increased to 4 per cent vs. 2 per cent in 1Q, 2016. Net profit attributable to the parent increased by Dh64 million to Dh18 million vs. a net loss of Dh46 million in 1Q16. The company, which is undergoing a series of restructuring, recorded revenue of Dh2.2 billion, up 11 per cent compared to Dh2 billion in the first quarter of 2016. The group is undergoing a series of restructuring measures including the appointment of a strengthened executive management team, in line with the group’s strategic roadmap. The group’s turnaround, whilst still in its infancy, is already being complemented by improvements on the consolidated bottom line, attributable to equity holders of the parent, combined with growth in revenue, a company statement said. Group CEO Hamish Tyrwhitt said: “While this is another step towards the turnaround of the Group, there is still a lot more work to be done. This initial step reinforces our commitment to returnig Arabtec to profitability and solidifies our strategic roadmap to achieving sustainability. The Recapitalisation Programme is laying the foundation to allow the Group to build on our three stage plan.” “To optimise the delivery of our Dh17 billion backlog, we

Gulf Property

Arabtec profit jumps to Dh91m in Q1 2017

Dh2.2 bn revenues of Arabtec in the first quarter of 2017

are making key operational improvements through embedding enterprise risk management and a performance-driven culture, which is already evident in the increase of our gross profit margin. Resolving legacy claims and collecting receivables is a key action in Phase One which will be achieved through our ability to turn risk into opportunity,” he added. “The vital elements of

Phase Two, ‘Prepare’, are already in progress, including maintaining a leaner organisation with SG&A at target benchmark level, already reflected in our first quarter numbers showing a 15 per cent decrease,” Tyrwhitt said. “We are now well-positioned to address the remaining steps of Phase Two of our strategic plan, leaving us in a strong position to begin aligning our efforts towards key aspects of Phase Three. Col-

lectively, these elements contribute to the successful and sustainable future for all our stakeholders as, together with our core values, we continue to work towards building the future of Arabtec,” he added. Established in 1975, Arabtec has undertaken a substantial program of construction, including but not limited to: high rise developments (residential, commercial, mixed use), hotel and hotel interiors, residential complexes and communities, luxury villas, major airport developments, (terminals, lounges, hangars, air traffic control towers, cargo buildings, passenger buildings), commercial and industrial projects, stadiums, hospitals, museums, malls, cinemas, entertainment facilities and infrastructure works. g

REALTYBYTES

Aldar awards Dh1.7 billion contract for Yas Acres

US hot on realty investment list

ore than one in every three adults in the UAE would consider property investment in North America, while 13 per cent of UAE residents have plans to invest in overseas properties next year, according to the annual YouGov survey conducted by IP Global, the leading fullservice property investment company. The survey shows that North America, UK, Germany and Australia remain the top property investment destination for UAE residents. It also shows that when it comes to investing in property abroad, North America is the most popular market among UAE citizens. The UK with 13 per cent and Australia with 11 per cent, were the third and fourth most popular choices re-

spectively. Germany rounded out the top five, with 10 per cent of respondents choosing the country as preferred investment destination. The survey of 1000 UAE adults found that when it comes to selecting assets to invest in, 33 per cent of UAE residents would invest in property in their home country rather than stocks, shares or bonds, underlining the continued appeal of real estate, possibly due to the stable, reliable returns it offers. The UAE was one of the five countries where the survey was conducted as part of IP Global’s research to identify investment trends in real estate across key markets. The results across the five markets showed that in comparison to these countries, the UAE had the highest percentage of people that

planned to invest in property abroad in the next 12 months. Richard Bradstock, Director and Head of the Middle East at IP Global, said: “As the results show, North America continues to be a popular investment market for UAE residents. Chicago offers some of the world’s highest average yields for a global city at 7.9 per cent, while Los Angeles condominium prices were up 7 per cent year-on-year to December. The UK has always been a popular market to invest in, but outer London and cities such as Manchester, Birmingham and Liverpool have become firm favourites due to their strong economies. In Liverpool, for example, prices rose 6 per cent between June and September 2016,” he said. g

ldar Properties, Abu Dhabi's leading listed property development, investment and management company, has appointed Trojan General Contracting as the main contractor for the first three precincts of Yas Acres, its flagship development on Yas Island. Accordingly, Trojan General Contracting will mobilise on site immediately as it works on all the infrastructure including the 652 villas and townhouses, the golf course, golf club house, mosque, retail and community clubs. This follows the recent completion of the early works package, with Yas Acres surpassing its first construction milestone of 10 per cent completion. The main package is valued at Dh1.7 billion over a period of 32 months, and across the three precincts launched thus far. Aldar is expecting to hand over the first homes in Yas Acres at the end of 2019. The development comprises a total of 1,315 homes, a golf course, schools, retail, and other leisure amenities. Talal Al Dhiyebi, Chief Development Officer, Aldar, said: “With the mobilisation of the contractors we expect to see highly visible progress, once the precincts of villas and townhouses begin construction.” g Gulf Property

REALTYBYTES

Emaar records 15% growth in net profit in Q1

maar Properties, developers of the world’s tallest tower Burj Khalifa, recorded a 15 per cent growth in net profit to Dh1.38 billion (US$377 million) in the first quarter (January to March) 2017, up from Dh1.2 billion (US$328 million) recorded in the same period last year, powered by a 44 per cent jump in property sales to Dh6.04 billion (US$1.64 billion) during Q1 2017 in Dubai, compared to Dh4.19 billion (US$1.14 billion) – the value of property sales recorded in Dubai during Q1 2016). This is 115 per cent higher than the figures for Q4 2016 at Dh2.81 billion (US$765 million). The group now has a backlog of Dh46.24 billion (US$12.59 billion) to be recognised as revenue in the next few years. Total revenue also grew 15 per cent to Dh4.07 billion (US$1.10 billion), up from Dh3.52 billion (US$961 million), recorded in the first quarter of 2016. Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour. Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate. g

Gulf Property

Emaar pushes new hotel fee structure

maar Hospitality Group, the hospitality and leisure business of Emaar Properties PJSC, has introduced an industry-defining model for hotel management agreements. This is a marked departure from the prevalent fee structure in the hospitality sector, where hotel operators receive a base fee as a percentage of gross revenue and an incentive fee based on the gross operating profit. The alternative model offered by Emaar Hospitality Group is based only on an incentive fee, driven by the operator’s ability to generate profits rather than revenues. In an industry where the majority of global fees earned are linked to revenue, the new model aligns the interests of the owner and operator as it focuses on profit generation, replacing the emphasis on top line results with a focus on bottom line

achievement. Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said the new management fee model sets an industry benchmark. “There will be greater responsibility on the operator to drive operating profits that will create sustained and long-term value for hotel owners, unlike under the prevailing model, where the operator earns a base management fee regardless of operating expenses,” he said. “The distribution landscape in the hotel industry has changed dramatically over the past years and we feel that profit is a more powerful indicator of operator performance than revenue. We are leveraging our experience both as a hotel owner and as an operator, in developing the new model. With ten years of history in developing and operating three industry

leading hotel brands, we understand the operations side of hotels, and as part of the publicly listed Emaar Properties, we are also focused on continued value creation,” Harnisch added. “The new model brings two core strengths: One, it enhances owner-operator relationships with greater onus on the operator to drive profitability. Two, it creates lasting value for hotel owners even in the face of challenging economic conditions, as the operator will focus on minimising operating expenses and strengthening profits,” Harnisch said. The new model is offered in addition to the standard model and gives hotel owners the opportunity to choose between the two. “With the new model, we are looking to expand our footprint in the UAE and other global markets with a clear commitment to enhance operating profits,” he added. g

Manazel, McArthur to revamp Capital Mall

anazel Real Estate PJSC, a leading UAEbased property developer, has entered into a strategic partnership with Mc Arthur& Company to lease and manage Capital Mall on behalf of Manazel Real Estate in Abu Dhabi. McArthur, a specialised retail leasing consultancy, will manage the leasing and management aspects of Capital Mal located in Mohammed Bin Zayed City, Abu Dhabi, with a focus on managing the mall’s ongoing operation and performance, as well as continued expansion. McArthur is an international leasing and operations advisory firm specialising in retail mall outlets for over 36 years. McArthur has provided strategic consulting and effective real estate management services to a number of major business centers in the region and the world. Key projects have included Deira City Centre and

Dubai Festival City in the UAE, in addition to City Star Cairo in Egypt and Mall of Qatar. This new partnership is part of Manazel’s retail strategy to re-position Capital Mall as a family entertainment value mall. Capital Mall, in its new format, will be targeted at the middle-income segment in the UAE and will offer shoppers significant choice ranging from home goods, fashion, entertainment and F&B, in addition to a planned cinema and other attractions aimed at increasing footfall. This strategic initiative is in line with Manazel's retail strategy for Capital Mall to provide shoppers with high quality products at affordable prices. Capital Mall is the only one of its kind in Abu Dhabi with a space offering more than 60,000 square metres of Gross Leasable Area (GLA). Manazel Real Estate is successfully leveraging its significant real estate experi-

ence and asset base in designing, constructing and equipping Capital Mall to realise its full market potential by providing retailers with direct sales opportunities. Mohamed M. Al Qubaisi, Manazel Chairman, said: “Capital Mall is the first of its kind in Abu Dhabi to introduce the concept of leasing to retail outlets, which will benefit investors, shop owners and shoppers on a larger scale.” Phil McArthur, founder and CEO of McArthur and Company, said, “MacArthur strongly believes in the importance of specialised advice for the shopping mall sector in the region in order to deliver optimal returns.” “This new partnership highlights the importance of building strategic relationships in order to deliver the skill sets needed to drive growth within the shopping mall segment of the UAE’s real estate market,” he added. g

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Allsop launches property portal

ubai residential real-estate firm, Allsopp and Allsopp, has launched a new off-plan property portal for the first time in the region. This portal is available on their website and the company believes that it is the pioneer in this area on the Dubai property market. Allsopp and Allsopp has been working with a large number of the market's leading developers on this project. These developers include Azizi Developments, Deyaar, Nshama, Select Group, Ellington Properties, Emaar, Dubai Properties, Damac Properties, Sobha Developers, Swiss Property, Al Sharq Investment, Nakheel, Omniyat, and Meraas. g

ECC delivers hotel project

ngineering Contracting Company LLC (ECC) has completed a 240key, dusitD2 Kenz Hotel, located in Barsha Heights, Dubai. ECC was awarded the project in late 2013 by Rashid Al Noaimi, for the construction and completion of the 17 story hotel. DusitD2 Kenz Hotel is the first hotel to launch in the UAE under dusitD2 brand. ECC has more than 7,000 highly qualified team members and an extensive supply chain g Gulf Property

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Carlton Hotels to invest Dh2.7 billion

arlton Hotel Management Group, part of the Dubaibased First Investor Group, a subsidiary of Al Fardan, said, it will invest Dh2.7 billion to increase its hospitality inventory of rooms by 51 per cent in 2020. The hotel management group is expecting to add 683 new rooms over the next three years, that will take its total count to 2,000 rooms from the existing 1,317. Out of the keys in operation, 1,142 rooms are in Dubai, 85 in Jordan and 90 in the Czech Republic. With an aggressive expansion strategy, Carlton Hotel Management has quickly emerged as a major player in the hospitality sector, with a total investment of over Dh2.2 billion in various hotel projects. This investment is set to reach Dh2.7 billion by 2020. Hotels owned by the company include Carlton Downtown – Dubai, Carlton Palace Hotel – Dubai, Carlton Tower Hotel – Dubai, Marriott Executive Apartments – Dubai, Villa Rotana – Dubai, Four Points by Sheraton Dubai, Imperial Palace – Jordan, Sun Hotel and Belvedere Hotel, Czech Republic. The company recently announced the purchase of the Carlton Downtown hotel on Sheikh Zayed Road. g

Gulf Property

Bellevue Tower gets underway

Bellevue Towers will offer 319 units, including 159 one-bedroom apartments

ubai Properties (DP), a leading Dubai-based master real estate master developer, has appointed Seidco General Contracting as the main contractor for its Bellevue Towers residential development in Burj Khalifa district. The contract, worth more than Dh200 million, will be completed in the second quarter of 2019. Marwan Al Kindi, Executive Director – Sales and Sales Operations at DP, said: “Choosing the right contractor for an iconic project such as Bellevue Towers is crucial and we are pleased to have appointed Seidco as our trusted partner to bring the destination to life. With work on track for a second quarter of 2019 completion, Bellevue Towers is another example of a DP development that meets a market requirement

for high-quality residential property in a strategic location. Bellevue Towers is set to offer a unique lifestyle for home-owners looking for a stylish and upscale residential destination.” Seidco, a UAE-based contracting company specialising in a diverse range of construction projects including residential high-rise buildings and housing complexes, sees the Bellevue Project as an opportunity to contribute to the continued growth of the UAE’s real estate market. Omar Atef Ajjaoui, Chief Operating Officer of Seidco General Contracting Company, said: “As a reflection of Seidco’s administrative efficiency and technical strengths, we have continued to sustain steady growth and expansion which is attributed to our ability to undertake and successfully

complete projects on time and on budget.” The Bellevue Towers residential apartment buildings will offer 319 units including 159 one-bedroom apartments, 105 two-bedroom apartments, 42 three-bedroom apartments, 10 penthouses and three loft apartments. The 717,156.57 square feet two-tower development, located close to the waterfront of Marasi Business Bay and with panoramic views of the Burj Khalifa Master Community, has a bespoke sustainable design featuring a contemporary façade with balconies and terraces for all apartments. A landscaped podium terrace and amenities including a gym, pool and children’s pool and playground, will ensure that residents are offered an exceptional urban living experience. g

Damac awards Dh40 m contract

amac Properties, a leading luxury real estate developer in the region, has awarded a contract worth Dh40 million for road and infrastructure work at Vardon cluster within Akoya Oxygen, a 55-million-squarefoot lush green development in Dubai. The contract has been awarded to Proscape LLC. Mohammed Tahaineh, senior vice-president, Commercial, Damac Properties, said: “We are pleased to award the roads and infrastructure works at Vardon cluster within Akoya Oxygen to Proscape, one of Dubai’s premier landscaping and infrastructure contractors. At the heart of our efforts lies our commitment to a high standard of development across the various components that make up our projects-from roads and infrastructure within our communities-to the buildings and interior finishes. Our desire to maintain high quality standards is evident from the appointment of contractors who offer focused expertise tailored to the development work at hand.” Akoya Oxygen offers a tranquil pace of life amidst the bustling metropolis of Dubai, without compromising on greenery and seclusion. This community offers cleaner air, naturally cooler temperatures and a carefully designed masterplan and road network system with dedicated spaces for bicycles and hybrids. The homes feature energy-efficient materials, air conditioing, light-

Damac’s Evo to target young professionals

amac Properties has launched Evo Townhomes, a range of two-bedroom homes targeted at couples and young professionals in search of a revolutionary living concept. Combining space and practicality, Evo Townhomes provide enough room to cater to the dynamic lifestyle of the new and modern generation. Featuring two bedrooms, a kitchen, a living room, covered parking and a private garden or terrace, these cosy townhomes exemplify the next level in ing and controls, along with low-emission paints and solar water heating systems. Representing the centre of life at Akoya Oxygen, Vista Lux is set alongside the waters of the lake and foun-

convenience and modernity. Niall McLoughlin, senior Vice-President, Damac Properties said: “Keeping millennials in mind, we launched yet another innovative product offering that speaks to the ever-changing lifestyles and demands of the young and lively generation.” “Evo represents the address of choice for those seeking an enriching community that reinvents itself to keep up with their requirements and demands,” he added. Evo Townhomes break the Dubai mould as they are set within Akoya Oxygen master development away from the skyscrapers, the busy roads and the bustling suburbs. g tains, with stunning views of the golf course and parkland. Home to over 2,000 luxury hotel apartments, it also boasts of a promenade offering shopping, dining and entertainment options. g

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Damac unveils stone homes

ollowing the successful launch of Hajar Villas Phase 1 in March, Damac Properties, recently released Hajar 2, a further collection of premium, contemporary stone villas representing a rock-solid investment. Priced at Dh1.1 million with a payment plan spanning five years, investors will have the opportunity to own a three-bedroom villa that features the unique and charming exterior characteristic of homes in the Levant, Egypt and India. Stone homes have been around for centuries and are known for withstanding the test of time. This charming architectural style is seen around the world, from Lebanon to India, the UK, Egypt and beyond. Marked by their artful masonry, heritage and warmth, each home inspires a sense of nostalgia, a wistful nod to the past when homes were created with love and careful attention paid to every detail. Niall McLoughlin, Senior Vice President, Damac Properties said: “The response we received from customers in phase 1 of Hajar is testament to the desirability of this type of property, for both investors and end-users. Investors find the unique aesthetic appeal, durability and ability to be warmer in winter and cooler in summer are attractive propositions that stand out from other properties on the market.” g Gulf Property

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Al Mazaya declares net profit of Dh 22.4 mn in Q1

l Mazaya Holding declared a net profit of Dh22.94 million for the first quarter of the year, a growth of 2.65 per cent from Dh22.35 million, compared to the same period in 2016. Earnings per share reached 3.69 fils against 3.60 fils for the same period last year. Commenting on the financial statements, Ibrahim Al Soqabi, CEO of Al Mazaya Group, said the company continued to boost its operating performance for the first quarter of 2017. This growth, he said, could be attributed to well-integrated annual plans, smart objectives, a robust fiscal policy and a strict timeframe that plumped up the company’s total operating revenues to Dh181.46 million by the end of the first quarter of the year. He added that the increasing revenues could also be attributed to well thought out marketing campaigns and sales revenues amounting to Dh158.37 million over this period. The company’s rental revenues also increased by 6.71 per cent to Dh22.50 million from Dh21.09 million for the same period last year. Gross profits also increased by 19.47 per cent to Dh45.59 million by the end of Q1 2017, against 38.16 million for the same period in 2016. g

Gulf Property

Al Zahia Centre to open in Sharjah Al Zahia mall will have 136,200 square metres of gross leasable area

ajid Al Futtaim, the region’s leading property and shopping mall developer, broke ground on the US$708 million (Dh2.6 billion) shopping mall, City Centre Al Zahia, in Sharjah. It will be the company’s largest mall in the emirate. Once complete in 2020, City Centre Al Zahia will be a valuable addition to the developer’s growing City Centre brand portfolio. Strategically located at the intersection of Sheikh Mohammed bin Zayed Road and University Road, City Centre Al Zahia is a superregional mall with 136,200 square metres of gross leasable area. The super-regional mall will address the shopping and leisure needs of the residents of Sharjah, northern emirates and Al Zahia, an award-winning residential destination with six theme

parks and leisure facilities featuring 2,270 homes ranging from 3, 4 and 5 bedroom villas and townhouses, to apartments of various sizes. When it opens, City Centre Al Zahia will serve a trade area of more than 1.9 million people, as well as attract residents from the neighbouring northern emirates. Offering a diverse mix of 360 retail brands spread over two levels, City Centre Al Zahia is anchored by a 15,100 square metre Carrefour Hypermarket, complemented by leisure options including VOX Cinemas, with 16 screens incorporating the latest theatre technology, and a 2,350 square metre Magic Planet family entertainment destination. With a distinctive lanternlike design, City Centre Al Zahia’s architectural detailing echoes the annual Sharjah Light Festival. In addition, the external food and bever-

age precinct, located at the mall’s entrance and equipped with covered al fresco seating, will enhance Sharjah’s dining options for residents and tourists. “Sharjah’s robust economic growth and the continued investment in its tourism, manufacturing, culture, and transport sectors make it an ideal destination for further development, especially in the retail, food and beverage, and entertainment landscapes,” said Ghaith Shocair, Chief Executive Officer for shopping malls at Majid Al Futtaim Properties. “The scale and long-term vision of the Al Zahia community warrant a retail and entertainment destination of this size and scope, in line with Majid Al Futtaim’s strategy to create malls that meet the current and future needs of the residents and tourists we serve,” he said. g

Arada launches Nasma 2 townhouses

rada, the UAE’s newest developer, will launch the second phase of Nasma Residences after the first phase sold out ahead of schedule, following unprecedented buyer demand. Investors flocked to gain posession of Nasma Residences’ carefully masterplanned community, ample green space and generous facilities. As part of Phase 2, Nasma Residences’ five-bedroom Signature Villa will be available for purchase for the first time, in addition to the two and three-bedroom townhouses and four bedroom semi-detached villas already on offer. In a sign that development of infrastructure and amenities at Nasma Residences is going ahead full steam along with the sale of homes, Arada has also confirmed that con-

6,500 sq ft

total area of Nasma Square mall struction on the community’s shopping centre, Nasma Square, will begin in July. The 6,500 square feet mall will feature a large-scale anchor shopping experience, complemented by a range of casual dining outlets, to service residents not only of Nasma Residences, but also of adjacent communities. With Phase 1 scheduled for

completion in late 2018, Nasma Residences will feature a total of over 800 contemporary villas and townhouses delivered in four phases, as well as a host of community facilities in the heart of a vibrant cultural and business hub. Arada’s Chairman, HE Sheikh Sultan bin Ahmed Al Qasimi, said: “We are delighted to see strong interest from end users in Nasma Residences. This is confirmation not only of the community’s excellent location and product choice, but also of the outstanding amenities that our residents will be able to enjoy.” “We also see this as a strong indication of investor confidence in Sharjah, thanks largely to the government’s efforts to encourage more urban communities with large green spaces,” he said. g

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JGE launches affordable luxury homes

umeirah Golf Estates, the Middle East’s leading residential golf community, has announced the launch of an additional tower of affordable luxury apartments in its Alandalus development. The new tower will bring an additional 120 Mediterranean-inspired apartments to investors and home-owners. The launch builds on the success and high demand already seen for Jumeirah Golf Estates’ Alandalus development. In February, townhouses in Phase 1 and 2 sold out in the space of just three hours. The apartment tower, which is the third to launch, is expected to be handed over in Q3 2019, as the first two have already sold out. Aimed at bridging luxury living with affordable prices, Alandalus – the developer’s latest project – has been designed to reflect a growing demand for outdoor living with Andalucian-inspired architecture and contemporary features. The project has been a runaway success for Jumeirah Golf Estates. Yousuf Kazim, CEO of Jumeirah Golf Estates, said, “The response to Alandalus has been positive, reflecting a gap in the affordable homes market that Jumeirah Golf Estates is catering to without compromising on quality. This shows we are keeping pace with the emirate’s evolving landscape.” g Gulf Property

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Aldar sells out the Bridges at the Cityscape

ldar sold out homes in the first two towers of the Bridges, worth Dh400 million, at Cityscape Abu Dhabi, the company said in a recent statement. Buyers turned out in large numbers to invest in the high quality, amenity led mid-market real estate. Capitalising on the surge in demand after one tower was launched for sale, Aldar subsequently released a second tower during the event – taking the number of units available for purchase at Cityscape, to 424. This ranged from studios to three-bedroom apartments. Once again, following the huge demand, Aldar commenced sales for the third tower on 6th May. Talal Al Dhiyebi, Chief Development Officer, Aldar Properties, said: “The results at Cityscape have validated our view that the mid-market segment is underserved, and that customers know and trust in Aldar’s ability to deliver the right product, in the right location, at the right time. Because of this, we look forward to opening the third tower for sale and welcoming more customers." “The Bridges is providing us with a blueprint to launch more of this type of product in the near future in other prime destinations across Abu Dhabi," he added. g

Gulf Property

Azizi launches two projects

zizi Developments, the Dubai-based award-winning real estate developer, said it will begin construction of a luxury hotel apartment and residential building in Dubai Studio City, a member of Tecom Group. The residential building and hotel apartments project will comprise eight-storey structures on the two Dubai Studio City plots. The distinctivelysituated residential building will feature 80 one-bedroom, 95 two-bedroom, and 2 three-bedroom apartments (a total of 177 units), with a retail area of 6,000 square feet. The stylishly-designed hotel apartments will contain 70 one-bedroom, 83 two-bedroom, and 2 three-bedroom

apartments (a total of 155 units), with a retail area of 5,266 square feet. Farhad Azizi, Chief Executive Officer of Azizi Developments, said: “This investment with Tecom Group marks a new milestone in expanding our operations and offerings. The two plots in Dubai Studio City will create a unique living experience for residents and enable Azizi Developments to meet the growing demand for the highest quality homes in the market. At Azizi Developments, it is our continuous effort to develop one-of-akind homes where countless memories will be created.” As a dynamic and well-established community, Dubai Studio City is home to an array of residential, retail and

commercial entities. Azizi Developments’ forthcoming project in Dubai Studio City will be an upmarket gated community, in line with the company’s expansion strategy. In addition, the investment will further cement the strength of the location for residential developments, maintaining positive momentum and expanding Tecom Group’s presence as a strategic business enabler. Designed by Azizi Developments’ highly skilled team of architects, the formal composition of the building is inspired by Dubai’s culture of creative professionals. The balance of urban and green areas will create an environment for residents to relax and call home. g

Azizi launches Aura in Jebel Ali

zizi Developments, the fast growing Dubai real estate developer, said it has sold 57 per cent of its 479 residential units ahead of the launch of Azizi Aura, the developer’s first project in Downtown Jebel Ali. The project’s development value has not been revealed yet. The upcoming 17-floor structure includes 479 residential units and comes in various sizes, with 349 studios, 87 one-bedroom flats and 43 two-bedroom units. The development is notable for the sheer number of studio apartments, making it the only project of its kind in the area. “Azizi Aura is part of the upcoming 38-building project defining Downtown Jebel Ali and exemplifying our line of

high-quality, efficiently-designed residences in this thriving community. Aura’s apartments will be panelled with ceiling-to-floor windows that bask the residential units with natural lighting and stunning views of the Palm Jebel Ali,” a statement said. All the units are tastefully decorated with marble flooring and there is ample spacewithin, with designs inspired by European craftsmanship. Farhad Azizi, Chief Executive Officer of Azizi Developments, said: “The phenomenal response to our new community asset in Downtown Jebel Ali confirms that this thriving community is becoming one of Dubai’s leading residential and professional destinations for investors and end-users alike. Azizi Aura, which will

soon be pulsating with life, marks a new milestone to expand our operations and offerings.” In an effort to suit the different lifestyles of Dubai, Azizi Aura offers access to a fullyequipped gym, spa and health club. The building also includes a podium-level café and restaurant, as well as 16,000 square feet of upscale retail space. Aura provides round-the-clock reception and concierge, valet parking service and a large car park. As a truly integrated community, Azizi Aura offers fast and easy access to the best recreational and entertainment facilities in the area, including the Jebel Ali Golf Resort, Motiongate Dubai, Bollywood Parks and Legoland Dubai. g

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Oman’s Shangri-La Al Husn to be relaunched

hangri-La Hotels and Resorts will relaunch the luxurious Shangri-La Al Husn Resort and Spa in Oman as a private standalone resort in October 2017. The palatial Al Husn – meaning ‘castle’ in Arabic – features 180 rooms and suites and was previously marketed as part of the adjacent Shangri-La Barr Al Jissah Resort & Spa, an integrated destination resort comprising the family and leisure-focused Al Waha and Al Bandar hotels. Perched on a cliff overlooking the Gulf of Oman against the dramatic backdrop of rugged mountains, Shangri-La Al Husn has catered to discerning travellers for over a decade and set the standard for luxury in Muscat. Following a rejuvenation, Shangri-La Al Husn will showcase the refreshed new look in key locations throughout the resort and offer enhanced guest experiences and revitalised dining offerings. Newly-appointed General Manager Milan Drager will oversee the transition and lead the repositioning of ShangriLa Al Husn Resort & Spa. The resort will introduce a team of Shangri-La specialists dedicated to personalising and enhancing the guest experience. These specialists will be available to custom-design activities for clients.g Gulf Property

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Time Asma Hotel to have 80% women staff

ime Hotels Management, a Dubaibased hotel operator, has unveiled plans for a new four-star hotel in Dubai’s Al Barsha ‘shopping’ district, to be called Time Asma Hotel. The new hotel will aim for 80 per cent of its team members to be women, led by general manager Ghada Mahgoub, with dedicated facilities for female guests. This is a first of its kind move by a hotel operator. The announcement was made during a press conference at the Arabian Travel Market held last month at the Dubai World Trade Centre. “The concept will provide career opportunities for more than 100 women, contributing towards goals set out by His Highness Sheikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, to increase the presence of women in the workplace,” said Mohamed Awadalla, Chief Executive Officer of Time Hotels. The property will feature 232-rooms over six floors, a gym, swimming pool, jacuzzi, four meeting rooms, a business centre and two restaurants, for both male and female guests. Due to open in Q4 2017, plans are in place for two floors of the hotel to be reserved exclusively for female travellers, with dedicated services. g

Gulf Property

Deyaar’s net profit falls in Q1

eyaar Development, one of Dubai’s leading property developers and real estate service providers, reported a 37.25 per cent decline in net profit reaching Dh32 million in the first quarter of 2017, down from Dh51 million recorded in the first quarter of 2016, despite recording a 136 per cent jump in revenues to Dh142 million, compared to Dh60 million reported in the first quarter of 2016. Net profit in the first quarter of 2016 included a write-back of provision for impairment of investment in an associate, the company said. “The rise was due to a particularly strong growth in property revenues, which reached Dh110 million in the period, up from Dh32 million reported in the first quarter of

2016 following good progress in Deyaar’s flagship projects, including The Atria and Mont Rose,” a statement from the company said. Meanwhile, Deeyar continued to prudently manage expenses, which stood at Dh41 million for the first three months of 2017, compared to Dh48 million recorded in the first quarter of 2016. Saeed Al Qatami, CEO of Deyaar, said: “The first three months of 2017 have seen Deyaar continue to make steady progress in our existing projects, while closely controlling our cost base and expanding our pipeline of future developments. Two key focus areas in the coming months will be the commencement of work on the Midtown master development, and the implementation of our ambitious plans for the hospitality sec-

tor, both of which are central to Deyaar’s long-term strategy for sustainable growth.” Deyaar began 2017 by establishing a joint venture with Dubai South to develop a mixed-use project comprising residential property and retail and hospitality facilities on a location adjoining the Expo 2020 Dubai site. Listed on the Dubai Financial Market and majorityowned by Dubai Islamic Bank (DIB), Deyaar is one of Dubai’s leading developers, with real estate ventures spanning key growth corridors and prime locations within the emirate. Over the years, Deyaar has delivered an extensive portfolio of commercial and residential properties, all offering the highest levels of service and quality. g

Aqua launches Park Inn Hotel

qua Properties, the Dubai-based property brokerage and development firm, has launched its latest project, Park Inn by Radisson. Ground for this was broken at the Jumeirah Village Triangle site recently, with the hotel apartment development set to be completed in June 2019. Aqua Properties is offering the hotel apartments to investors with a guaranteed Return On Investment of 8 per cent per annum for two years and an attractive 35

per cent two year post-handover plan. Park Inn by Radisson is situated in the heart of new Dubai, within a self-contained and modern environment with easy access to all major road networks. The 29-storey construction consists of fully furnished serviced studios and one and two-bedroom hotel apartment suites. Park Inn hotels are known for their outstanding levels of service and comfort delivered in style, and are operated by the Carlson Rezidor Group which has almost 500

properties under operation or development in the MENA region and over 1,400 properties worldwide. “With the launch of Park Inn, we have yet again underlined our commitment to the real estate industry in Dubai. Bringing a global, highly reputed brand such as Park Inn by Radisson to the Jumeirah Village Triangle locale will be a definite draw to the up and coming area and offer a well-rounded lifestyle experience to visitors and residents alike,” said Paul Christodoulou, COO, Aqua Properties. g

REALTYBYTES

Land Dept records biggest land sale this year

H Real Estate Brokers (formerly PowerHouse Real Estate Brokers) facilitated the biggest residential land sale in Dubai so far this year, recorded by the Dubai Land Department. The 120,000 square feet plot in Meydan district was sold to an Emirati for Dh60 milion. The seller was businessman Kamel Alzarka. Nick Grassick, Managing Director of PH Real Estate said, “We are proud to have brokered such an exceptional sale for our clients.” The land, which sits directly in front of the golf course and central lakes, is arguably the largest residential freehold plot in Dubai. Myles Bush, Chief Executive Officer, PH Real Estate, who brokered the deal, said, “There is nothing of this size that we know of in Emirates Hills or on the Palm Jumeirah.” The new buyers plan to build three custom-designed mansions for different members of the family. “These kind of high-profile transactions have a positive knock-on effect on the rest of the market,” Bush added. PH Real Estate also broke records in 2016 with the sale of a Dh53 million residential property in Emirates Hills. The company enjoys a solid track record and reputation within Dubai. g Gulf Property

REALTYBYTES Utmost launches Bahwan Towers

AE’s Utmost Properties (part of the Muscatbased Suhail Bahwan Group), has launched Bahwan Tower in Dubai. This is the group’s first freehold residential tower for sale in the UAE. When complete, Bahwan Tower will establish itself as a premier residential address in the Burj Khalifa community. Located conveniently off Burj Khalifa Boulevard, Bahwan Tower’s 132 apartments are complemented by the unrivalled offering of infrastructure and amenities in the local area. Residents will enjoy internationally recognised attractions and experiences such as the iconic Burj Khalifa, the Dubai Opera, the Dubai Mall and the Dubai Fountain, all within walking distance. The development is also well-connected for those working in DIFC, Business Bay and Downtown Dubai. Lucy Bush, head of residential sales and leasing at Cluttons, said: “We are delighted to further extend our partnership with the Bahwan Group, who boast of a leading portfolio of properties across the MENA region. Bahwan Tower will offer residents the opportunity to live in the heart of a thriving area of Dubai. The freehold apartments are available with an attractive payment plan. g

Gulf Property

Nshama launches affordable homes

shama, a Dubaibased property developer, has launched a new project Rawda Apartments, a set of affordable homes for middle income families. Meanwhile, Town Square, its 750-acre (31 million square feet) trendy development is getting ready for the first delivery of ‘Live life at your price’ homes later this year. The new Rawda Apartments are set apart by their central location in the heart of the neighbourhood with spectacular views of the Town Square Park, Courtyard and Town Square Boulevard. Ideal for those seeking to move from rental living to an owned-home lifestyle, Rawda features 1, 2 and 3-bedroom apartments in average sizes of 600 square feet, 850 square feet and 1,300 square feet, respectively, in four residential

buildings. Underlining the ‘value living’ proposition, the homes are affordably priced. Customers have an easy and flexible payment option with only 5 per cent down payment and a 50:50 payment plan, whereby they pay only 50 per cent of the total value before handover, with the rest to be made on delivery. Fred Durie, CEO of Nshama, said: “The all-new Rawda Apartments have been launched following strong demand from customers for the ‘Live life at your price’ homes that we develop at Town Square. With the development coming to life at a brisk pace, Town Square today is one of the most sought-after residential communities for middle income homes.” “Rawda provides exceptional value for them through its central location by the park and boulevard, with effortless access to a range of

retail, leisure and F&B choices. The proximity of Town Square near the site of Expo 2020 Dubai has further enhanced demand and we are focused on delivering our projects as per schedule,” he added. Town Square has already made commendable progress with the network of roads completed and work on swimming pools and landscaping progressing. The Town Square Park, the size of 11 football fields, is also coming to life and will feature the Vida Townsquare hotel and a Reel Cinemas cineplex. Residents can also enjoy a 2.5 million square feet retail precinct featuring over 600 stores and food and beverage outlets, among others. Rawda will offer a wide range of amenities for residents including access to swimming pool, children’s pool, gym, changing areas and a common area and playground. g

Dubai Gourmet to open boutique hotel

ubai Gourmet, a Meraas company, will launch a boutique hotel at Qasr Al Sultan, the family lifestyle and heritage destination, in September 2017, the company said in a statement. Distinctive and traditional in style, the hotel will invite guests to live like kings. It will also combine luxury and the natural elements of Dubai’s enchanting landscape within 12 spacious 100-square metre royal villas designed to complement the fine dining and cultural experiences already available at this bespoke getaway. Abdin Nasralla, Chief Executive Officer, Dubai Gourmet said: “Since the launch of Qasr Al Sultan in February, our

guests have been captivated by the experiences we’ve created, ensuring that the destination has become a place full of novelty and intrigue for residents and visitors to the UAE.” “We’re delighted to be expanding Qasr Al Sultan through the boutique hotel, and the unique royal villas will add another layer to our rich cultural offering, inspired by traditions that have not just shaped our customs but also our cuisine, art, attire, and lifestyles,” he added. Qasr Al Sultan is a majestic Arabian experience that captures the days of the sultans through an array of authentic culinary offerings and traditional entertainment. Following its opening, the Qasr Al Sultan Boutique Hotel will

offer guests the chance to spend the night in the desert while relaxing in luxurious surroundings. With privacy at the forefront of the design, villas will have private entrances, parking, and a private garden for guests to bask in the sun at their leisure, whilst enjoying 24hour in-room services and a personal butler available on request. Other facilities include a private jacuzzi, a majlis seating area and study area, complete with a writing desk. The hotel has a Sultan’s Conference Room with space to accommodate 50 guests. Easily accessible from Dubai and Abu Dhabi, conferencing facilities here combine traditional designs with modern amenities. g

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Al Qudra acquires Al Rayan Investment

l Qudra Holding, an Abu Dhabibased developer, said its shareholders agreed to acquire Al Rayan Investment Co for Dh1 billion, at the company’s annual general meeting held recently. “The shareholders also agreed to increase the paid-up capital of Al Qudra Holding through the issuance of 210.4 million new shares. The subscription for the new shares will begin on first of May 2017 until 30th of May 2017. Following the acquisition, Al Rayan Investment Company becomes a subsidiary of Al Qudra Holding, and its shareholders will be added to Al Qudra’s shareholders' register upon completion of the transaction,” a company statement said. With the acquisition, Al Qudra Holding’s total assets will increase to approximately Dh4 billion. Al Qudra Holding also reported a 28 per cent increase in net operational profits to Dh264 million last year. The company achieved a total revenue of approximately Dh1 billion in 2016 and maintained a high profit margin of 39 per cent. Earnings per share surged from Dh0.34 per share in 2015 to Dh0.43 per share in 2016. The company initiated the issuance of convertible bonds of Dh250 million with guaranteed annual coupon, to be listed on the market. g Gulf Property

REALTYBYTES

Otis rises to the top

tis, the world's leading manufacturer and maintainer of people-moving products, including elevators, escalators and moving walkways, has introduced its latest products and service initiatives in the Middle East, including the connected Gen2 Life elevator and the expanded Otis SkyRise product family. These new products mark the company’s continued commitment to the region, ensuring a safe and high-quality experience for passengers in the buildings they live and work in. Otis is a unit of United Technologies Corp. The Gen2 elevator was the first product of its kind to replace conventional ropes with flat belts, and is one of the company’s best-selling elevators ever with a half-million units sold worldwide. g

Cayan offers 8% RoI

ayan Group, one of Saudi’s leading real estate property developers, said it offers 8 per cent return on investment (RoI) in its projects. ‘Cayan Cantara’, a multiuse development managed and operated by hospitality brand, Rotana, offering 8 per cent guaranteed return on investment; and the tallest ‘Twisted Tower’ at Dubai Marina, Cayan Tower, were showcased at the exhibition. g

Gulf Property

Wasl builds Mandarin Oriental hotel in Dubai

Wasl Tower, that will host the second Mandarin Oriental Hotel in Dubai

asl Asset Mana g e m e n t Group, one of the largest real estate development and management companies in Dubai, has launched the city’s second luxury Mandarin Oriental hotel which will open in November 2020. The new location on Dubai’s Commercial District of Sheikh Zayed Road will complement wasl’s Mandarin Oriental hotel on the waterfront at Jumeira Beach, which will open in the fourth quarter of 2018. The new hotel will be the centerpiece of the 63-storey mixed-use wasl Tower which is being developed as a com-

manding addition to the city’s skyline. Located on Sheikh Zayed Road, Dubai’s main thoroughfare, the property will have direct access to the area’s key business districts and tourist attractions including Dubai Opera House, City Walk and Dubai Mall, as well as the city’s two airports, being 20 minutes from Dubai International Airport and 40 minutes from Dubai South – Al Maktoum International Airport. The hotel will also include a full suite of on-site luxury entertainment and leisure facilities that redefine Dubai’s premium hospitality offering. Hesham Al Qassim, CEO of wasl Asset Management

Group, said: “Combined with the premium property offering at wasl Tower, we are offering the height of luxury in both the hospitality and residential sectors, which wasl works to support in alignment with the vision of the UAE’s wise leadership.” Both hotels are being developed in collaboration with Mandarin Oriental Hotel Group, the international hotel investment and management group with luxury hotels across the world, while Amsterdam-based UN Studio is the appointed architect forwasl Tower, the 300-metrehigh building, designed as an integrated urban environment. g

Wasl joins Hyatt to launch Palm Dubai

Hesham Al Qassim, CEO of Wasl, says, the hotel’s strategic location will provide visitors with easy access to Dubai’s attractions

asl Asset Mana g e m e n t Group, a Dubaibased real estate development and management company, has launched Hyatt Centric The Palm Dubai hotel project in collaboration with an affiliate of Hyatt Hotels Corporation. The hotel is located at the centre of The Palm – one of the world’s most iconic landmarks – keeping guests in the middle of the action and offering them beach access whilealso encouraging them to explore the city’s rich culture, heritage and tourist sites. The strategic location will

provide visitors with easy access to several of Dubai’s key attractions including Mall of the Emirates, Marina Mall, Jumeira Beach, Dubai Marina, several golf courses and much more. Dubai International Airport is just half an hour away and the city’s business district and varied dining options are only 10-15 minutes away from the hotel. Hesham Al Qassim, CEO of wasl Asset Management Group, said: “This is the seventh hotel we have developed with Hyatt but the first from the Hyatt Centric brand, which means that we are offering something completely new in the region with this

project.” “Our work is aligned with the government’s vision of growing Dubai’s hotel offering to support the sector and prepare for Expo 2020, and we are proud to be contributing to the city’s exciting tourism scene,” he added. The twin 15-storey hotel will bring 217 rooms and 116 serviced apartments equipped with a fitness centre and spa, four restaurants, meeting facilities, and beachfront access. “The Hyatt Centric brand offers an upscale and cosmopolitan experience,” said Peter Norman, senior Vice-President, Acquisitions and Development, Hyatt. g

REALTYBYTES

BMTC opens renovated showroom in Dubai

ahri and Mazroei Trading Company (BMTC), one of the region’s leading providers of electrical, lighting and water solutions, and a subsidiary of the UAE-based Bahri and Mazroei Group, has opened its renovated flagship showroom in Dubai, following a Dh1 million facelift. The 500-square metre showroom in Al Khabaisi, a business landmark, brings a heritage of over 50 years and has been the go-to place for partners across multiple industries, to source a diverse selection of electrical, lighting and water solutions. The showroom has now been aesthetically and functionally enhanced, and serves as a one-stop shop featuring the entire portfolio of BMTC’s solutions as well as a dedicated space for extra-low voltag systems. The showroom also has smart technology upgrades to strengthen operational efficiency. The opening ceremony was attended by the company’s management team, as well as main supply partners from across the UAE. Esam Al Mazroei, vicechairman of Bahri and Mazroei Group, said: “Our showroom in Dubai has served as a hub, providing the widest range of electrical, water and lighting solutions for customers– all in one place.” g Gulf Property

OPINION

CHRISTINE LAGARDE

Managing Director International Monetary Fund

e are all asked the difficult question of “What comes next” at various stages in our lives. What I would like to suggest – and I will share a little of my own story to illustrate the point – is that it is ok, to say “I don’t know” when someone asks you, “What comes next?” Saying “I don’t know” is one of the hardest things to do in life. We have all been trained from a young age to have an answer at the ready. But the reality is that the answer is not what matters most – it is knowing how to find the answer that is key. The future is one where technology, automation, and artificial intelligence may eventually supplant humans in a variety of tasks – from retinal scan payment systems to machine-made hearts and lungs to, one day, perhaps, even robot lawyers. Of course, some say lawyers are robots already – but that is a different conversation! Two-thirds of today’s children will have jobs which have not been invented yet. Studying Aeschylus, not to mention a little Sappho, Brontë, and Dylan – while cultivating an interest in de-

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What comes next? sign – is what allowed Steve Jobs to see the Walkman and dream of the iPod. This renaissance education is the comparative advantage in the years ahead. Success for the new generation requires a commitment to life-long learning and an understanding that today is a milestone in your education, but it is not the end. The truth is that college has taught how to learn, not what to learn. Many of the most valuable lessons have come from outside the classroom. I am talking about developing empathy and perspective. These are the in-demand tools of the future. If everyone in a room agrees with you, you might be doing something wrong. Seek out those who disagree with you, learn from them, and try to understand their world view. When I was 17 years old, I left France, my home, as part of a scholarship programme designed to bring people from different backgrounds together. I attended HoltonArms School in Maryland. To be completely candid, it was a bit of a culture shock for me. But I learned more about France in my first year in America than I had learned in sixteen years of studying French history and literature. I had to step away to gain perspective. I realised that, to help someone solve a problem, you must understand how she sees a problem. I took that lesson with me – from my practice as a lawyer to serving in the French government. It is a perspective that I brought with me to the IMF, where our 189 member nations are united by the idea that through cooperation we can maintain economic sta-

bility and prosperity for the world. Needless to say, my career didn’t prepare me for every aspect of this position. Nearly every day on the job, there is something new. A new crisis, a new acronym, a new “on the one-hand, on the other other-hand…” I almost feel as if I am back in law school – I read all the time, ask questions, challenge assumptions – and learn. Learning does not stop at commencement, it begins anew, and requires a ceaseless curiosity about the world. This brings me to my second point: values, and specifically the value of public service. Public service comes in all shapes and sizes. It encompasses far more than working in government. Public service is about applying your values no matter what job you have. For me, one of those values has been gender equality. It is something that I have fought for my entire life. When I was coming out of law school I interviewed at a law firm in France. The conversation went well but towards the end one of the interviewers told me I could never become a partner at the firm. “Why?” I asked him. “Because you are a woman,” he replied. Well, I walked out of there and never looked back. Believe it or not, I asked myself, ‘What comes next?’ I took a deep breath. I thought about my training as a lawyer and about my values. I was determined not to let this experience hold me back. But I was also under no illusion about how difficult the journey would be. Eventually, I found a law firm that promoted diversity and creativity. I joined Baker McKenzie in 1981. Later in my career, I changed my

working hours so I could have Wednesday afternoons off to spend more time with my son. At first, it did not go over well, but the partners adapted. I became a partner myself. The culture shifted. In 1999, I had the honour of becoming the first female chairman of the firm. But what was true in 1981 is unfortunately still true today. In many countries, women are either prevented from entering the workforce through legal restrictions, or they are discouraged from working by expensive childcare and inadequate maternity leave. I asked myself, what role could the IMF play in helping solve the problem? At the Fund, we see ourselves as firefighters – providing financial assistance in times of need so nations can help their citizens. We also see ourselves as doctors – checking up on countries and guiding them to improve their economic health. Thinking outside the box, our talented economists began showing member nations that women’s economic empowerment could reduce income inequality and help all businesses succeed. Progress is slow, but we are making a difference. So far, we have done gender-related work in 22 countries. In our new programme with Egypt, for example, we are exploring ways the government can increase funding for public nurseries. The goal is to provide women opportunities to find employment. I am proud that gender equality is now a mainstream part of IMF analysis and I am grateful for the intelligent, dedicated women and men with whom I have the honour to work every day. g

Are you ready for VAT? T

here has been a lot of commentary and speculation surrounding the introduction of a 5 per cent ValueAdded Tax (VAT) into the UAE from January next year. This is a major step by the government, enabling it to garner over US$25 billion (Dh91 billion) to invest in economic development each year going forward. Regardless of who you are, you will definitely be affected by the VAT in some way. If you are conducting business in the UAE, you will see the invoices that you receive from your suppliers will contain a line item for VAT from January 1, 2018… and, for those who rent their premises, your landlord is a supplier. If you haven’t already done so, it may be time to sit with your landlord and understand how the VAT may affect your rent levels ongoing. Remember, in most cases, VAT is passed on to the consumer, so that if you are to absorb this increased cost of doing business, what ability will you have to recoup your increased expense by raising the price of your goods or services. This really requires much thought. Of course, your company’s employees will also be affected, but not in the same way as you will experience. Residential property purchases and lease contracts will be exempt from VAT. However, the majority of goods and services, primarily

VAT will have an inflationary effect on the market, much to the delight of those currently owning residential properties. In addition, any increased cost burden being felt by landlords of residential property can be expected to be recovered courtesy of direct rent increases....

– Mohanad Alwadiya

non-essentials, will be more expensive for your employees to consume, putting pressure on either you or them to maintain their preVAT spending power. And while their property purchase or rental may not attract a VAT charge, the goods and services that are purchased to construct new buildings and those that they consume to maintain or operate their property almost certainly will.

In this regard, the VAT will have an inflationary effect on the market, much to the delight of those currently owning residential properties. In addition, any increased cost burden being felt by landlords of residential property can be expected to be recovered courtesy of direct rent increases. Property maintenance companies, real estate agencies, law firms and financial institutions will all be applying a VAT to their goods and services. It will be interesting to see if rental increases justified as VAT cost recovery will be hindered somewhat by the rental increase law as governed by the DLD or how values are adjusted to comprehend the new tax. And, if a sale is contemplated of a commercial property, VAT will need to be considered by the buyer. A purchase of a commercial building with existing tenants will attract a 5 per cent VAT. The new landlord, obviously, would want to pass that cost, onto existing tenants by way of a rental increase. Negotiating such an action in light of the provisions of existing lease contracts would be an interesting challenge with many possible solutions to be explored for the benefit of both landlord and tenant. So, while residential property purchases and rentals may avoid direct transaction, the cost burden of the VAT will nevertheless be felt indirectly. Interesting times ahead.

OPINION

MOHANAD ALWADIYA

Chief Executive Officer of Harbor Real Estate, Senior Advisor and Instrucor at the Dubai Real Estate Institute

Of course, there is an increased administrative burden for existing landlords of both commercial and residential property. I do not know of any landlord who is not focussed on the net return of his property investment portfolio and the importance of fully understanding, complying and managing the effects of the VAT, including net return erosion, is something that we at Harbor Real Estate are acutely aware of. The implications and effects of mismanaging any taxation can be very serious. Apart from the legal responsibilities and punitive or legal consequences of non-compliance, the effects on the net returns from an investment property can be quite significant. Remember, in most economies, tax management is an industry in its own right and while the introduction of the VAT in the UAE is does not present anywhere near the complexities of tax codes in other economies, management of its likely affects is still critical. g Gulf Property

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The Year of Giving

he UAE Government had earlier declared the year 2017 as the Year of Giving in order to make everyone socially conscious and responsible to the society. For businesses, the Year of Giving comes in multiple dimensions. Firstly, it reflects the need to take care of the most important assets – the human capital that helps businesses to generate wealth. Paying their salary in time, creating an enabling working environment, giving them enough to live a healthy life, creating a happy working condition, offering them health insurance, bonuses and regular increments – all are part of the essential responsibility. Although these are a necessity and should happen naturally, a lot of businesses cut corners by not looking after these aspects. Secondly, the Year of Giving is a polite reminder of businesses’ moral obligation to make timely payment to external suppliers and creditors and ensure that the supply chain is maintained smoothly. Things like taking care of customers and attaining high level of customer satisfaction and happiness and reducing payment cycles from 90 days to 30 days – for example – are keys to the spirit of the Year of Giving. The third aspect is our responsibility to the country we operate in and the society we live in. What are we doing for the host country and society – or are we doing enough? As we all observe the holy month of Ramadan – a Month of Giving – in June – half-year in to the Year of Giving, it’s time to take a stock of where we stand in terms of our moral, ethical,

We need to shift our mentality towards ‘Giving’. For many, this might be tough – especially to adjust from the existing mentality – to the new one – the one that promotes the culture of ‘giving’ – or paying taxes. But once we get used to it, it will become part of our culture and system – the same way we have provided the health insurance for our colleagues. The Year of Giving will make businesses more socially responsible and humane

social, economic and charitable commitment. While during Ramadan, we see a lot of charitable activities – in which we have our own share – most businesses forget that the best thing that they could give to the society – is to remain true to their social and economic obligations and commitments. For example, the proverb – Charity begins at home – is a reminder that it is very important to meet the obligation of the family members. For businesses, it means taking

care of your team – employees and making sure that their needs are taken care of. The most important obligation and commitment for a property developer is to timely deliver properties to the buyers – with the highest quality standard and earn their satisfaction and trust. If businesses remain focussed to their obligations and remain true to their commitments – including payment obligations to suppliers and sub-contractors and delivery of goods and services to customers – the true meaning of the Year of Giving will be fulfilled. However, that’s the beginning. For us, Shaikhani Group, the Year of Giving is also the year of delivery of homes. Although we were not so lucky in delivering our projects on time in the past – due to the global financial crisis of 2008-2009, we have managed to navigate ourselves out of it by 2012-13 and restarted the construction works. Last year, we delivered 224 homes. We know that we can’t change the past, but we can change our future. That’s what we have been doing. Last year, we announced massive project development with total portfolio rising to Dh3.5 billion involving the construction of 2,100 homes across 12 projects. This year, we have already handed over 100 homes and expect to exceed last year’s numbers. For us, it is more important to give our customers their due homes – and see the smiles on their happy faces. However, as we move towards the second half of the year – we are all faced with the third aspect of Giving – to the host country’s economy

OPINION

MAHMOOD SHAIKHANI

Managing Director, Shaikhani Group

and society. As the country prepares to introduce the Value-Added Tax (VAT), all businesses will now have to prepare for the new tax regime. We all need to prepare for Giving back to the country – so that the governments can re-invest the taxgenerated funds for further development. For years, governments of the Gulf countries have been providing us with facilities – developing infrastructure, services and creating an enabling environment for us to generate wealth and grow, without asking for anything in return. It’s time for us to give back to the country to maintain, transform and expand the infrastructure and service delivery. For this, we need to shift our mentality towards giving. For many, this might be tough – especially to adjust from the existing mentality – to the new one – the one that promotes the culture of giving – or paying taxes. But once we get used to it, it will become part of our culture and system – the same way we have provided the health insurance for our colleagues. These developments in the Year of Giving will make businesses more socially responsible and humane. g Gulf Property

OPINION

NOORUL ASIF

Chief Operating Officer Schon Properties

he current state of Dubai’s real estate market that is characterised by low demand and abundant supply reflects a new reality in the property development business. With automation and smart government initiatives, where machines and software applications are expected to reduce human involvement in service delivery, the need for professionals and workers will become less for the same level of services. Dubai has started to install robots to handle routine works. The machineto-machine (M2M) interaction is multiplying everyday with robotics and artificial intelligence expected to take

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Hospitality way forward care of all repeat actions – as smart technologies start to control business processes and home automation. This means less number of employees would be needed in the public sector organisations – which will further reduce demand for homes. However, economic growth might offset that partially as the growth will require more people. At first, the developers need to look at product diversification and widen the source of recurring income, as done by the large developers, such as Emaar Properties, Dubai Properties, Nakheel and Damac. Hospitality and Retail are the two important product mix that has been helping these developers deliver strong performance and help generate good dividends for the shareholders. Dubai Government’s economic vision lays a firm roadmap that shows tourism and hospitality playing a major role in the economy in future. With the development of Al Maktoum International Airport – the world’s largest greenfield passenger and cargo hub – surrounded by a 140-square kilometre master planned community in Dubai South – the emirate plans to transform its economy as a tourism destination more than anything. The ever-expanding infrastructure that widens connectivity – domestic, regional and international – the government’s roadmap is crystal clear: Tourism is the future of

Dubai. However, in order to develop a city in the desert, one would assume it will have a few good attractions to lure international tourists. Over the last two decades, the government and the private sector organisations have been developing new tourism attractions – from theme parks to world-class hotels, shopping malls, mixed-use projects, manmade islands, resorts, water parks to the world’s tallest tower. By now, Dubai has plenty of tourism attractions to offer. The city has emerged to a 34 day destination, from being a one-night transit hub. If one adds the museums in Sharjah and the attractions of Abu Dhabi, Ras Al Khaimah and Fujairah – the UAE is easily a ten-day holiday destination. However, tourism doesn’t only mean catering to leisure traffic, it is also important to attract business travellers. Dubai World Trade Centre has been attracting a large number of business travellers who come to attend the year-round trade exhibitions and conferences. In 2003, Dubai hosted the Annual Meetings of the International Monetary Fund and World Bank Group that brought more than 10,000 high-profile visitors to the UAE. The Expo 2020 will attract 25 million additional visitors to the Expo. These international events will continue to put pressure on the emirate’s tourism in-

frastructure – pushing the demand for additional hotel rooms and service apartments. Dubai Government continuously bids for such large events and one day we might see the Asian Games or the Olympics being held in the city. If we take note of these developments, it shows that the future of Dubai is expected to be dominated by tourism and hospitality. Therefore product diversification in the real estate and offering a better mix would be key to the sector. Aviation and hospitality sectors contribute somewhere around 32 per cent of Dubai’s economy. In the years to come, this is going to increase as the number of hotel guests are expected to cross 20 million annually by 2020. In addition to that, their average length of stay is going to be higher – from 2-3 days to 4-5 days or more. Dubai currently has hotel inventory of 100,000 hotel rooms and hotel apartments. By October 2020, this is expected to cross 140,000 – to cater to the growing demand. Which means the industry’s capacity will jump 40 per cent in three years. This reflects the level of opportunities in the sector. That’s one of the key reasons why we have re-designed 2,500 residential units in to branded hotel apartment products under the iSuites product range which will help the emirate’s growing hospitality sector and cater to the growing demand. g

Time to think differently! I

f you have been exploring the idea of buying a home, however, couldn’t conclude, then definitely, it’s a time to think differently. There has been a very pleasing trend that has developed in the past months, which demonstrate the transformation of Dubai’s Real Estate sector. In spite of a trickle-down influence on the regional housing market, there are various signs of progression in the Dubai market. Largely in the first quarter 2017, the real estate transactions in Dubai soared to Dh77 billion, which indicates a 45 per cent surge in value compared with the first quarter 2016. Trends also show that a number of home transactions in Dubai have become more affordable in the past year and therefore the mortgage movement has logged growth. Moreover, the rationales would be many but it’s true to say, that the progress is due to the dominant mortgage products and terms that are still buyers friendly and secondly because of the sustainable sales, existing in the market. Henceforth, this might be a good time to take the plunge, if you understand your earning potential and can wisely handle your finance. Keeping an eye on fundamentals certainly, smooths the buying process for most of the home shoppers particularly the first-time buyer. As

when we really plan to climb the property ladder, one need not only shop for a home but also needs to get a preeminent mortgage product, as the market is full of sustainable deals. Consequently, right from consolidating your finances to ascertaining a real estate agent and a mortgage lender, there is a surfeit of deeds to keep you engaged. Here are some rudiments to keep in the mind before you begin the mortgage process.

Credit Score

With the recent introduction of credit scores, the home buyer needs to be very vigilant and need to boost their credit score before starting the buying process, as poor or low credit management may deferral the chances. It is always upright to keep an eye on your credits and ensure there are no concealed issues that need attention. Maintaining regular credit card payment and departing unused credit services will improve your chance to be suitable for the loan and will help to attain the best rate and terms.

Due Diligence

Some disciplinary planned approach required when you looking to have a mortgage. As inquiring or applying for any credit line, just before setting the mortgage application might impede your qualification. Hence, the

mortgage buyer, need to be thoughtful in handling his/her finance during the course of the mortgage approval cycle.

Interest Rate

With the surge in the US Federal Reserve rate, Emirates Interbank Offered Rate (EIBOR) is analogously increasing in the emirates which has direct impact on the home buyers EMI but somehow, the bank in UAE has succeeded to lessen the pressure by maintaining the lesser bank margin rate in line with the EIBOR rate, which makes the interest rate still in buyers approach. Besides, depending on individual’s credit history and financial portrayal the lender decides on the interest rate and the term. So shop around for lower interest rate and carry out some computation to comprehend the best cost of borrowing.

Pre-Approval

When buying a property with the mortgage, pre-approval seems to be very crucial and the initial phase of home buying. And being pre-approved has its own benefits, it gives the shoppers added negotiating power when dealing with other potential buyers. Furthermore, it gives a coherent suggestion about your investment figure, so the buyer can focus and navigate around within that approved amount and can save time.

OPINION

DHIREN GUPTA

Managing Director 4C Mortgage Consultancy

Closing Cost

For potential mortgage buyers, the market is full of competitive products. Henceforth, it’s more important to be cautious while shopping and review mortgage conclusive cost strategically. Since it’s a long-term association with the bank, just don’t stick or go with the lowinterest rate. Give a deep calculation on the offered rate and other allied costs, check for early payment fee, a pre-closure fee that would be charged by the lender. The judicious finance workout can help you save money in your pocket during the long-term association. So if you are planning to invest this year, then it’s not too early to start. Follow these simple steps to make the mortgage application process less painful. It’s always a commendable to start filtering your credit, paying debt and beefing up your down payment to prepare yourself to take a loan. On top of all, always remember never overstretch your appetite in finance. g Gulf Property

COVERSTORY

Real estate gets 3year VAT exemption

Gulf Property Exclusive

he real estate sector has been exempted for three years from Value Added Tax (VAT), which comes into force from January 1, 2018, UAE Government said on Tuesday. VAT has exempted ‘residential buildings for sale or lease during the first three years in which the building is completed’, the UAE Government said in a statement issued on Tuesday, May 23,

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2017. The UAE Federal Tax Authority (FTA) announced a selective tax of 100 per cent on tobacco and energy drinks, and 50 per cent on carbonated beverages that will be applied in the fourth quarter of this year, but exempted real estate for the first three years of its implementation. International transportation, commodities and exports, health and education services, gold imported for investment purposes are exempted from taxes. “Also exempted are residential buildings for sale or lease

during the first three years in which the building is completed, some financial services and empty plots of land,” the statement said. The VAT announcement was made by the Federal Tax Authority (FTA) during its first meeting chaired by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance. The rate for value added tax (VAT) was set at 5 per cent and will be implemented on January 1, 2018. Shaikh Hamdan said that the VAT rule was introduced by the authority to achieve economic diversification in

preparation for the post-oil era. “The tax procedures law is in the final phase, and will soon be issued and published. The VAT law is being debated by the technical legislative committee in preparation for submitting it to the Cabinet for approval, while the selective tax draft law will be soon discussed by the committee,” Shaikh Hamdan said.

What is VAT?

VAT is an indirect form of consumption tax.In a country which has a VAT, it is im-

COVERSTORY “The exemption will help the real estate market to grow and mature more. The three-year tax break will help the market and the players to adjust to the new tax environment. We welcome the move. However, once introduced, the taxation could start from a very low base to help everyone involved.”

– Mahmood Shaikhani Managing Director of Shaikhani Group

posed on most supplies of goods and services that are bought and sold. VAT is one of the most common types of consumption tax found around the world. Over 150 countries have implemented VAT (or its equivalent, Goods and Services Tax), including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore and Malaysia. VAT is charged at each step of the ‘supply chain’. Ultimate consumers generally bear the VAT cost while Businesses collect and account for the tax, in a way acting as

Mohanad Alwadiya, Chief Executive Officer of Harbor Real Estate

Mahmood Shaikhani, Managing Director of Shaikhani Group

a tax collector on behalf of the government. VAT is intended to help improve the economic base of the country. “Therefore, we will include rules that require businesses to be clear about how much VAT you are paying for each transaction,” a Ministry of Finance spokesperson said. Residents of Dubai, Abu Dhabi and Sharjah had earlier been brought under a rental fee scheme, ranging from 3-5 per cent – close to the lower limit of VAT – although the government authorities have refrained from using the word ‘tax’ and Gulf Property

COVERSTORY

using the popular term ‘fee’ to lessen the impact of the revenue generation process. Mahmood Shaikhani, Managing Director of Shaikhani Group, says: “The exemption will help the real estate market to grow and mature more. The three-year tax break will help the market and the players to adjust to the new tax environment. We welcome the move. However, once introduced, the taxation could start from a very low base to help everyone involved.” In 2018, consumers in UAE are expected to pay a 5 per cent value-added tax when

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Sailesh Jatania, Chief Executive Officer of Gemini Property Developer

Noorul Asif, Chief Operating Officer of Schon Properties

purchasing most goods and services. The six states in the Gulf Cooperation Council (GCC) region have agreed to implement VAT, which will generate $25 billion (Dh91.8 billion) in tax proceeds every year. Noorul Asif, Chief Operating Officer of Schon Properties, said, “This is a very welcome move and gives all of us adequate time to adjust to the new realities and also will help developers to adjust prices accordingly. A development usually takes 2-3 years from start to completion. I’m sure developers of

COVERSTORY

new projects will adjust their prices accordingly – for future projects.” The VAT will push up the cost of living slightly for a lot of people, but this will all depend on the individual’s buying preferences and lifestyle. Tourists are a significant source of revenue for the UAE and will pay VAT at the point of sale. Sailesh Jatania, Chief Executive Officer of Gemini Property Developers, says, “The move reflects the government’s pro-business vision and will give us enough time to prepare for the new system. It usually takes 2-3

years for a project to complete from the planning stage. So, the three-year tax break will help developers of new projects to adjust pricing accordingly. The exemption of the real estate from VAT will help the sector to grow and mature more. We welcome the move. However, once introduced, the taxation could start from a very low base to help everyone involved.” GCC states had already agreed to exempt about 94 food products, as well as the healthcare and education sectors. Experts say that while this

will make the real estate sector unattractive in the short term, those looking for long term investment will find it attractive. “The advantages of VAT are obvious. The UAE, unlike any other country, is highly transparent and corruption-free. So all taxes collected will benefit the economy. It will strengthen its infrastructure. The greatest disadvantage is that of inflation, which in turn will make the real estate sector unattractive for investors in the short term, especially for speculators. Those looking at it long-term will realise its huge benefits and adapt,”

Mohanad Alwadiya, Managing Director of Harbor Real Estate, told Gulf Property. Businesses are encouraged to implement the new tax system, but the Ministry of Finance said that the government is currently in the process of defining the exact fees and penalties for noncompliance. If the initial date for the VAT roll-out is followed, businesses can probably start registering for VAT from 1st October 2017. As announced recently, the registration will be open three months before the go-live date. Companies will have the option to register online. For most businesses, VAT returns should be filed every three months. Filing of returns can also be done online using the government’s eServices. “As per global best practice, the UAE is exploring other tax options as well. However, these are still being analysed and it is unlikely that they will be introduced in the near future. The UAE is not currently considering personal income taxes, however,” the Ministry of Finance spokesperson said in a statement recently. g Gulf Property

EXPO2020

Expo 2020 to award Dh 11 bn worth of contracts in ‘17

Gulf Property Exclusive

he US$600 million (Dh2.2 billion) contract by Dubai Expo 2020 to build a thematic pavilion awarded to Al Futtaim Carillion in March 2017, forms part of the US$10.8 billion worth of construction contracts awarded in the UAE in the first quarter of this year. The cost of constructing the Expo site and related infrastructure (including extensions to roads and the Dubai

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Metro) was put at $6.9 billion. The total economic impact of staging the event was estimated at €28.8 billion. The total value of contracts inked in the GCC in the first quarter was just over $26 billion, up from $22.2 billion in the final quarter of 2016. The first-quarter total for 2017 is down by about 17 per cent compared with the first quarter of 2016, when there were $33.5 billion of contracts signed, according to Middle East Economic Digest (MEED). “There are 47 such contracts to be awarded this year with a total construction

value of US$3 billion (Dh11 billion) by the end of this year,” said Simon Clegg, Chief Operating Officer of Expo 2020, said while speaking at the Middle East Real Estate Forum held in Dubai recently. “Contractors on the ground have already moved 4.7 million cubic metres of sand, so far and we expect 40,000 workers to be on site at the peak of the construction activities.” In 2016, $105 billion worth of contracts were signed in the GCC, while at the same time $166 billion of work was completed.

“The UAE was the bestperforming market in construction contracts by a considerable margin, with $10.8 billion of deals let during the first quarter of this year,” said a MEED spokesperson. “There were $4.7 billion of awards in Saudi Arabia, followed closely by Kuwait with $4.6 billion of deals let. In Qatar, there were $2.7 billion of contracts signed, in Oman $3 billion, and in Bahrain $753 million.” The largest construction awards were made in Dubai, MEED said in a report. The local Alec secured an esti-

EXPO2020 “The expo will be the biggest event in the history of the Middle East, in terms of the numbers attending. The vision and ambition of the project will make it a stunning experience for the 25 million visitors, 70 per cent of whom will come from overseas. Plus there will be a reputational profitability on a global level that you cannot put a Dirham cost against....”

– Simon Clegg Chief Operating Officer, Expo 2020

mated $610 million order to build a new shopping mall at Dubai Hills for the local Emaar Properties, and the local/UK Al-Futtaim Carillion secured the $600 million contract for the construction of the Thematic District at the Expo 2020 site. The only other construction deal valued at more than $500 million was the $570 million contract secured by CCC for UAE developer Majid al-Futtaim’s Mall of Oman. A world's fair, world fair, world exposition, or Expo is a large international exhibition designed to showcase achievements of nations.

Simon Clegg, Chief Operating Officer of Dubai Expo 2020 Committee

These exhibitions vary in character and are held in different parts of the world. The last expo, Expo 2015 was held in Milan, Italy and the next world Expo 2020 will be held in Dubai. Since the 1928 Convention Relating to International Exhibitions came into force, the Bureau International des Expositions (BIE) or the International Exhibitions Bureau has served as an international sanctioning body for the world's fairs. Expo 2020 is expected to have a great impact on Dubai’s economy. Investment bank Merill Lynch had

earlier estimated that the total boost to the economy over the 2015-21 period will be $23 billion or 24.4 per cent. The UK’s Barclays has forecast the Expo win could boost Dubai’s economic growth to average 6.4 per cent a year from 2014 to 2016 and potentially to 10.5 per cent by 2020. Referring to Expo 2020 as an ‘Olympics of Minds’ Simon Clegg, who was involved in the London Olympics 2012, said, “Expo 2020 will be the greatest show on earth,” – making a parallel reference to the Olympics and World Cup Gulf Property

EXPO2020

football games. Simon Clegg, previously the chief executive of the British Olympic Association and Ipswich Town Football Club, also held a similar position on the organising committee of last summer’s inaugural European Games in Baku, Azerbaijan. Expo 2020 expects to host 25 million visitors during the six-month-long event – that is more than the combined ticket sales of the London and Rio Olympics and the last two World Cups. “As Dubai consistently reinvents itself, we are here to deliver nothing but the best.

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The objective for us is to deliver an expo that will create a benchmark for expos for the next 50 years to come,” he says. “For Dubai, Expo 2020 is not the end of the road – but a milestone for the future.” This is the first expo in the world to showcase the latest scientific developments such as the flying cars and the advanced application of Artificial Intelligence and Robotics. “The expo will be the biggest event in the history of the Middle East and North Africa, in terms of the numbers attending,” he said.

Clegg added that the event is expected to cement Dubai’s position as one of the world’s greatest tourist destinations. "The vision and ambition of the project will make it a stunning experience for the expected 25 million visitors, 70 per cent of whom will come from overseas. Plus there will be a reputational profitability on a global level that you cannot put a Dirham cost against.” In keeping with the times, the expo this time will be all about cutting-edge technology, along the lines of the motto "connecting minds,

creating change, he said. “We need global solutions to global problems and Expo 2020 will help us find them," he added. "Within each country's pavilion visitors will be able to experience the rich diversity and culture that makes up our planet as well as seeing the latest technological developments around each of our chosen themes,” Clegg said. For the UAE, Expo is a chance to showcase itself to the world just before the 50th anniversary of the founding of the country and to mark the progress the country has

At A Glance

$10.8 billion worth of construction contracts have been awarded in Q1 2017

Dh11 billion

worth of contracts are expected to be awarded for Expo 2020 in 2017

Dh25 billion

total value of infrastructure contracts for Expo 2020 expected by 2020

Dh2.2 billion

value of the contract awarded to build a thematic pavilion at Expo 2020 site

$106 billion

value of the contracts awarded in the GCC in 2016

$166 billion

EXPO2020

“As Dubai consistently reinvents itself, we are here to deliver nothing but the best. The objective for us is to deliver an expo that will create a benchmark for expos for the next 50 years to come. For Dubai, Expo 2020 is not the end of the road – but a milestone for the future....”

– Simon Clegg

combined value of the projects completed in the GCC in 2016

achieved in a short time. The International Monetary Fund (IMF) estimates that Dubai will successfully resist the economic slowdown afflicting its Gulf neighbours, thanks to investments in Expo 2020. UAE officials expect the event to create 277,000 jobs, most of which will be in the tourism industry. In 2016, Expo 2020 Dubai awarded over 1,200 contracts, investing over Dh2 billion in the economy. It is also expected to award contracts of more than Dh2 billion to small and medium enterprises (SMEs) this year.

Last year, it announced that 20 per cent of direct and indirect spend for the Expo, representing Dh5 billion in contracts, would be awarded to SMEs. Expo 2020 is expected to welcome more than 180 nations, out of which 100 nations have confirmed their participation, Clegg said. Japan is the latest country to officially sign up for participation. “Once the crowds and the 30,000 volunteer workers leave after the event, in April 2021, the expo site will become a business park with mixed use residential and

commercial facilities. It will be home to one of the largest conference and exhibitions sites in the region, with a mall built by Emaar and with the whole site hooked into the Dubai Metro system and connected to the new city of Dubai South,” Clegg added. Expo 2020 will run from October 2020 and April 2021. Preparations for the event – including developing the 438,000 square metres venue in Jebel Ali – are on in full swing. Plans for the site after the conclusion of the event will see over 80 per cent of the

plot re-developed with all Expo's assets and transport infrastructure re-purposed for future use by a range of tenants and major private sector firms. Siemens AG became the first firm to announce its plans earlier this year, when it confirmed that its global headquarters for airports, cargo and ports logistics would be based out of the Expo 2020 site from 2021. Experts predict that many more firms, particularly international players, would follow in Siemens' footsteps, especially given the UAE's location as a gateway beGulf Property

EXPO2020

tween the West and the East and its proximity to many emerging markets.

History of Expos

For over 160 years World Expos have helped humanity make sense of change and navigate through difficult times by promoting Education, Innovation and Cooperation. World's fairs originated in the French tradition of national exhibitions, a tradition that culminated with the French Industrial Exposition of 1844 held in Paris. This fair was followed by other national exhibitions in continental Europe and the United Kingdom. The best-known 'first World Expo' was held in The Crystal Palace in Hyde Park, London, United Kingdom, in

44 Gulf Property

“As many as 25 million visitors are expected to attend Expo 2020 and this number is bigger than the crowds at the last two Olympics and the World Cups combined...”

– Simon Clegg

1851, under the title ‘Great Exhibition of the Works of Industry of All Nations’. The Great Exhibition, as it is often called, was an idea of Prince Albert, Queen Victoria's husband, and is usually considered to be the first international exhibition of manufactured products. It influenced the development of several aspects of society, including art-and-design education, international

trade and relations, and tourism. These events have resulted in a remarkable form of Prince Albert's life history, one that continues to be reflected in London architecture in a number of ways, including in the Albert Memorial later erected to the Prince. This expo was the most obvious precedent for the many international exhibitions, later called world's

fairs, that have continued to be held to the present time. Since their inception in 1851, the character of world expositions has evolved. Three eras can be distinguished: the era of industrialisation, the era of cultural exchange and the era of nation branding. The earlier Expos from 1851 to the middle of the XXth century were strongly influenced by the industrial revolution and the colonial ambition of the time. Material progress based on technological innovation was at the heart of the exhibitions; and colonial pavilions where countries could showcase the exoticism of their colonies and the ethnographic characteristics of the so-called ‘primitive people’ were great entertainment attractions of Expos. During this ‘age of progress’ the Expos were –

EXPO2020

as the great German philosopher and cultural critic Walter Benjamin said – ‘the sites of the pilgrimage to the commodity fetish’ and probably the most important event of cultural exchange. The First and the Second World Wars completely modified the idea of technology as a source of progress: technology could be destructive and its use should be placed under social and political responsibility. After World War II, the fascination for material progress gave way to the promotion of human progress and international dialogue. Technology was still at the centre of Expos, but not as an end in itself, as a means for human development. Brussels 1958 was dedicated to ‘Progress and Mankind’; Seattle 1962 was about ‘Man in the Space Age’; Montreal 1967 was dedicated to ‘Man and his

world’. By creating a peaceful discussion platform, Expos started contributing to the global dialogue and fostering cooperation, namely with Montreal 1967 and Osaka 1970 that facilitated the "détente" of the early 1970s during the Cold War. At the same time, the progress of decolonisation allowed the creation of new countries that became new players of Expos. The number of participating countries increased year after year: 39 in Brussels, 62 in Montreal, 78 in Osaka, 109 in Seville 1992, 155 in Hannover 2000, 193 in

Shanghai 2010. Today, Expos have become a showcase for cultural diversity based on equality and respect for all cultures. Since 2000, Expos have taken on a significant role of raising awareness on the importance of sustainable development and addressing the crucial challenges of our time. Hannover 2000, promoted sustainable development and aligned itself explicitly with Agenda 21. Aichi 2005 aimed at demonstrating that there was a clear competitive advantage in designing technology in harmony with nature. Shanghai 2010 was

another milestone, as it showcased solutions for sustainable urban development. By providing a unique space for discussion and cooperation, expos aim at being efficient instruments of progress in all areas linked to sustainable and human development. However, it was Expo 2010 in Shanghai, China, that made a major difference in the history of World Expo as it attracted the attention of the emerging markets and prompting Russia, Brazil, Turkey, Thailand and the UAE to bid for the 2020 edition that the UAE won fair and square. g Gulf Property

COVERSTORY Adel Al Breiki, Founder of Xanadu Group, at his office. An engineer by training, Adel Al Breiki â&#x20AC;&#x201C; an Emirati entrepreneur â&#x20AC;&#x201C; is an unconventional property developer, who revives stalled projects and delivers them to investors and buyers

Finishing the unfinished business 46

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COVERSTORY “As the market matures and prices soften, property development and construction business will become more competitive and challenging. These developments will require financially strong developers with solid project management expertise. Therefore, we are uniquely positioned to support Dubai’s real estate sector, going forward...”

– Adel Al Breiki Founder, Xanadu

Gulf Property

COVERSTORY

Gulf Property Exclusive

del Al Breiki appears to be an ordinary man. But he comes with an extra-ordinary set of talents. He, along with his partner, Cenk Yabas – both founders of Xanadu Real Estate Development – picks up stalled or abandoned projects and turns them around, redevelops and delivers them to buyers and investors – in a platter, literally. He has turned around a number of stalled projects worth 8 billion along with development partners and delivered them to buyers during the last six years. The duo helped a number of property developers revive challenging projects. Over the years, the two visionary risk-taking business leaders have helped revive a number of challenging projects and contributed to the growth of Dubai’s real estate sector. However, there is one problem: he is a very shy person. He does not talk much. He rather lets his work do the talking for him. “I like challenges,” Adel Al Breiki, a UAE national engineer and Founder of Xanadu Real Estate Development, responds to queries on why he picks up challenging projects, with a smile. “Everyone develops projects on empty plots of land. I could do that as well. But I started my development business undertaking challenges.” His company Xanadu Real Estate Development, a Dubai-based property developer, has recently announced the delivery of nearly 200 luxury villas and townhouses with a develop-

Gulf Property

Adel Al Breiki and Cenk Yabas, Founders of Xanadu Group, at their corporate head office in Dubai. The duo has been creating wonders by reviving challenging projects, investing their resources and re-developing them – that has a far-reaching impact in Dubai’s real estate sector and the overall economy

ment value exceeding Dh750 million, part of the Dh8 billion worth of projects it helped deliver with its partners over the last six years. These include 130 Townhouses at Jumeirah Village Circle, worth Dh300 million and 68 luxury villas at Jumeirah Golf Estates, worth Dh450 million. The projects were handed over recently. Al Breiki started his career as a junior research analyst, rising up to be the foremost expert in the construction industry. His journey in the Dubai real estate market has been one that has culminated in numerous enviable

achievements. A technocrat by profession with a degree in Industrial Engineering and Master’s Degree in Operations Research from University of New Haven, Adel Al Breiki is a visionary at heart, forever believing in thinking radically out-of-the-box in a world filled with conservative mindsets. A firm promoter of ‘Afford to Aspire’ credo, his overriding ambition is to change the very perception of the real estate market by working to build signature homes offering the best value to customers, making them feel

that they have the best home that money can buy. His positive attitude and the temperament to rise up to the most daunting challenges have seen him rise rapidly to the top, with numerous crowning achievements, at some of the most prestigious real estate conglomerates in the UAE, such as Emaar Properties, Aldar Properties, CAPM Investments and Nakheel. Adel Al Breiki has won the prestigious Sheikh Rashid Award for Academic Excellence and been a former member of the Real Estate Committee in the Abu Dhabi

COVERSTORY “Dubai is currently the best regulated real estate market in the Middle East. Over the last few years, the Land Department and Real Estate Regulatory Agency has instilled best practice in the market. It is the most transparent market in the region and investors have the highest level of clarity on projects delivery and they can now adjust their budgets accordingly....”

– Adel Al Breiki Founder, Xanadu

Chamber of Commerce. Xanadu, established in 2010, is the brainchild of two enterprising engineers – Adel Al Breiki, an Emirate and Cenk Yabas, a Turkish engineer – who between them bring more than 40 years of collective global experience in property development, construction, sales and asset management. The company has been partnering with property developers by undertaking the management of stalled projects and completing them by investing its own resources. Following the global financial crisis of 2008-09, many prop-

erty developers found it difficult to carry on with projects due to tough market conditions marked by the absence of buyers and investors. While some developers had the ability to continue with projects, most were not lucky, resulting in a good number of projects being stalled. In 2010, Xanadu entered the real estate market with a vision to change it and help revive and manage stalled projects. It started with a cluster of townhouses and delivered it with the help of the previous developer. Gradually, Xanadu picked up

a number of challenging projects, infused capital and delivered them. This way, it helped revived, managed and delivered Dh8 billion worth of projects – that has a far-reaching impact in the emirate’s real estate sector and economy. “Dubai’s real estate market requires a quite different set of developers as it matures and demand is likely to be driven by real property buyers,” Adel Al Breiki says. “Therefore, committed customer-centric developers with a focus on quality and timely delivery will be crucial differentiator for successful

developers.” As a developer, Xanadu has pioneered the concept of partnering with developers to turnaround challenging real estate projects and steered them towards successful completion and handover to customers. Over the last six years, it invested a large amount of resources and manpower to help complete and deliver properties worth Dh8 billion in Dubai. “Our experience in helping turn around challenging real estate projects gives us an edge in property development business where many established players find it difGulf Property

COVERSTORY

Indigo Ville – a cluster of townhouses developed and delivered by Xanadu

ficult to complete the projects on time and on budget.” Al Breiki says. “Our strong credentials in investing in properties and execution of projects have helped us to undertake large projects for development. “As the market matures and prices soften, property development and construction business will become more competitive and challenging. These developments will require financially strong developers with solid project management expertise. Therefore, we are uniquely positioned to support Dubai’s real estate sec-

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tor, going forward.” Xanadu Group is the culmination of synergies of the two industrial engineers and visionary business leaders who have chosen real estate their turf and made property development and project turnaround their game – something that they enjoy doing. Passionate about undertaking challenges, they have successfully partnered with developers to complete and deliver promises. Cenk Yabas, Founder of Xanadu, says, “One of our key strength is our ability to manage projects efficiently – on time and within budget –

while maintaining high quality standards, as per the latest trends and to suit the taste of the modern families. “While taking over the management of certain stalled projects, we changed the fittings and amenities to match the latest trends in design and products – that has helped us to offer a better proposition to the customers. This helps in value appreciation of properties and when new buyers inquire for homes – they look for contemporary designs.” After partnering with developers, Xanadu is gradually developing its own project

portfolio with new projects. The group’s current project portfolio involved the development of 2,300 residential units with a development value exceeding Dh2.32 billion. In many ways, Xanadu is a real estate developer and contractor with a difference. The group consists of three business entities including Xanadu Real Estate Development, Xanadu Global Investment and PGS Gulf Contracting. In an exclusive interview with Gulf Property, Adel Al Breiki, Founder of Xanadu Group, spoke at length on is-

COVERSTORY

“Dubai’s real estate market requires a quite different set of developers as it matures and demand is likely to be driven by real property buyers. Therefore, committed customercentric developers with a focus on quality and timely delivery will be crucial differentiator for successful developers....”

– Adel Al Breiki Founder, Xanadu

sues relating the real estate market. Excerpts:

Gulf Property: What is your view of the real estate market in the UAE in general and Dubai in particular? Adel Al Breiki: Before going into the real estate market, let’s first look at the hard infrastructure of the UAE and Dubai. You couldn’t have a better infrastructure and connectivity and that’s growing with more investment. In every sense of the term, Dubai is a global city. This is the first point of attraction for international investors in real

estate. Secondly, the soft infrastructure, the regulatory environment, the quality of life, safety and security – you couldn’t have a better environment. Due to adoption of technologies, the government services have transformed from e-services to m-services through the Smart Government initiatives. The public services are now at your finger-tips. Things are done without human intervention. Dubai is now not only the best city in the Arab World, but one of the best destina-

tions to live and work in the world. The government’s happiness programme is expected to make public services more efficient and ahead of others – to increase public happiness. The government is now coming up with initiatives and programmes to empower the youth and create an enabling environment for the public to generate more wealth. All of the above will create a lot of job opportunities and hence demand for real estate projects. In the overall context, the real estate market in the UAE is growing and matur-

ing. The market is driven by fundamentals – demand and supply situation as it focuses on end-users. The market has become more real now – with real buyers to drive the demand growth, developed by the reputed developers and the deals will be on ‘real’ projects as opposed to the artists’ impressions. Dubai is currently the best regulated real estate market in the Middle East and North Africa. Over the last few years, the Land Department and Real Estate Regulatory Agency (RERA) has instilled best practice in the market. It Gulf Property

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“It’s always a good time to buy for a longterm end-user because real estate historically had never lost value over the long term. End-users have to avoid markets that are full of speculators. But with the regulations that are in place today, I believe that this risk is already mitigated well by relevant authorities....”

– Adel Al Breiki Founder, Xanadu

is the most transparent market in the region and investors have the highest level of clarity on projects delivery and they can now adjust their budgets accordingly.

So, do you think this is a good time to buy? Why? Yes, absolutely. If you wait a few months more, you might get better price and more variety – if you are lucky. Its always a good time to buy for a long-term end-user because real estate historically had never lost value over the long term. Endusers have to avoid markets

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Xanadu Ville in the making

that are full of speculators. But with the regulations that are in place today, I believe that this risk is already mitigated well by relevant authorities.

What do you think could help more end-users buying properties, as opposed to renting them? Very simple – the relaxation of the existing mortgage rules. If the mortgage cap is lowered at 90 per cent financing, then the middle income group will enter the market to buy their dream homes. Today 75 – 80 per cent of

end users are mortgage buyers. Mortgage companies mostly finance finished and ready units which are sold at a premium today compared to off plan units and the buyers have to pay anywhere between 25 – 30 per cent of unit value all at once in addition to the other closing fees which may accumulate to another additional 6 – 7 per cent. Therefore, potential buyers are missing out on a larger variety and better value units. There should be a greater collaboration between developers and mort-

gage providers to come up with products and solutions for the pool of buyers in order ease the upfront payment for the end user and provide the buyers with a better value unit along with greater selection of products.

You have been reviving challenging projects and turned them around. Why and how difficult it is? We look into a project and take it through a rigorous due diligence process legally and commercially and if it meets all our requirements, we get into negotiations with the land owners/existing devel-

COVERSTORY “We look into a project and take it through a rigorous due diligence process legally and commercially and if it meets all our requirements, we get into negotiations with the land owners/existing developer. Because we have our construction arm, you can say that we are a project catalyst where we strive to deliver the highest level of finishings to our customers at a very competitive price...”

– Adel Al Breiki Founder, Xanadu

Adel Al Breiki at his office

oper. Because we have our construction arm, you can say that we are a project catalyst where we strive to deliver the highest level of finishings to our customers at a very competitive price. We look into the details and we acknowledge that we are selling our customers their dream homes rather than just a unit. We always strive to exceed our customers expectations.

Tell us about your own projects. At what stages are those projects? We have recently announced

the delivery of nearly 200 luxury villas and townhouses with a development value exceeding Dh750 million, part of the Dh8 billion worth of projects we helped deliver with our partners over the last six years. These include 130 Townhouses at Jumeirah Village Circle, worth Dh300 million and 68 luxury villas at Jumeirah Golf Estates, worth Dh450 million. The projects were handed over recently. We have been partnering with property developers by undertaking the management of projects and completing them by investing its

own resources.

Under the current circumstances, where the demand is weak, what is your long-term view of the real estate sector? I don’t believe that the demand is weak because of lack of interest in buying a property. I think there are a lot of people who would love to have their own property but the industry needs to be more flexible to accommodate different buyer segments and try to understand the obstacles behind the refrainment of buying.

If that happens, there won’t be any shortage of buyers as Dubai continues to surprise everyone with new projects – that creates new jobs and increases opportunities. We have been through many ups and downs – that are part of economic cycles. The projects that are being built now, will eventually be absorbed in the next two years. The market is shifting towards affordable homes – where the demand will continue to be high. If mortgage rules are relaxed, you will see a massive buying spree across the sector. g Gulf Property

COVERSTORY

Adel Al Breiki and Cenk Yabas, Founders of Xanadu Group, at work at their group head office in Dubai. Both engineers and entrepreneurs â&#x20AC;&#x201C; have delivered Dh8 billion worth of assets

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PROJECTNEWS

ubai-based developer Shaikhani Group today announced the handover of 100 units of Champions Tower 1 to its customers. Families are in the process of moving in after getting the necessary No-Objection Certificates (NOC) from the concerned departments. As many as 48 families have moved in till date. The group announced the delivery of 135 units in the Dh150 million Champion Tower I in February this year. The delivery of these units follows the handover of 224 units last year, raising the number of deliveries to 359 apartments in a year. The group currently has five projects that are under construction, including three in Dubai Sports City and one in Jumeriah Village Circle. They are yet to award any contracts this year. “As a customer-centric responsible property developer, we continue to try to exceed our customers’ expectations. That’s why delivery of projects is very important to us. We are targeting the handover of three projects by the end of 2018,” said Mahmood Shaikhani, Managing Director of Shaikhani Group. The 15-storey Champion Tower I is designed by Al Sarh, a leading architectural design firm and with this flagship series of projects, the UAE-based real estate group aims to set up state-of-theart facilities supporting both luxury living and a healthy lifestyle. Spanning a total built up area of 114,124 square feet, Champions Tower I has 49 studios, 50 one-bedrooms, 30 two-bedrooms and six three-bedrooms. It has 135

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Shaikhani Group delivers 100 keys car parks. The Tower is also equipped with a swimming pool, spa and gymnasiums, under-ground parking, 24hour security and three highspeed elevators. The Shaikhani Group has three other freehold mixeduse developments planned for Jumeirah Village South. These include the Dh150million ($40.8 million) Gardenia Residency, a four-storey mid-rise (with a basement and ground level) comprising

132 studios, one-, two- and three-bedroom units, lofts and retail space; the Dh200million ($54.45 million) Gardenia Residency III, featuring three basement levels, a ground floor, three podium levels above which are 13 upper levels accommodating studio, one- and two-bedroom units; and the Dh320million ($87.12 million) Gardenia Residency IV, comprising three basement levels, a ground floor, four

podium levels, 27 upper levels and a retail level offering studio, one-, two- and threebedroom units, and retail spaces. “Our aim is to attract endusers and small families to shift from rented homes to their own freehold homes without putting much strain on their finance – which is a major issue with fixed-income small families,” Mahmood Shaikhani said. “Delivery of homes at the

Gemini attracts Indian investment

emini Property Developers, a boutique real estate developer, received on 22nd April 2017, a group of top Indian real estate brokers from The Real Estate Kings (TREK), a highly professional broker group based in Mumbai, India. The group was given a comprehensive presentation about Dubai’s real estate market and about the latest project – Gemini Splendor by Gemini Property Developers. Total value of real estate brokers’ commission was worth over Dh1.5 billion, while, Dubai has 5,933 brokers and 2,285 brokerage houses. The increased number of realtors in Dubai indicates Dubai’s popularity among investors. Indian brokers are among the highest registered real estate brokers in Dubai. Indian foreign investors top the UAE realty market with Dh12 billion worth of property transactions from 6,263 buyers, revealed a Dubai Champions Tower I will help boost the real estate market in Dubai that offers a wider choice to the end-users who can now choose the best options available in the market. As a long-term player in the UAE’s real estate market, Shaikhani Group has a strong development pipeline with more than 2,100 apartments and office space worth Dh3.5 billion.” Shaikhani Group is developing 11 projects that will deliver 2,100 residential and commercial units in Dubai Sports City, Jumeirah Village Circle and Dubai Silicon Oasis. Of these, the com-

Land Department report released in Q1 2017. Dubai is increasingly becoming a hot favourite destination with Indians for a number of reasons including high capital gains, great return on investment, tax-free environment, proximity to India, and transparent deals amongst many others. Sudhakar R. Rao, Managing Director of Gemini group, said: “Strong regulations, safety of investments and transparency attracts realtors to Dubai. The city has built its reputation in international real estate brokerage fraternity. The top brokers from India taking strong interest in our project – Gemini Splendor – is testament of this reputation. The group was overwhelmed by the quality and commitment set by Gemini Property Developers.” Dubai’s regulated market, safe environment, higher and secure yields are the major attractions for realtors. Brokers and real estate offices operating in the Emirate secure a higher income from commissions for their services to investors and real estate development companies. pany is in advanced stage of completion of Dh1.5 billion worth of projects involving 1,250 units while the rest are at the beginning of the development cycle that are expected to be completed by 2020. Four of these projects will be located at the Jumeirah Village Circle while one in Arjan at Dubailand. Shaikhani Group, which comprises of 12 business entities, employs more than 350 people with an annual turnover exceeding Dh220 million (US$70 million). The group is credited to have delivered more than 30,000

Gemini Splendor, a Dh300 million G+8-storey residential building is being built at Sobha Hartland. The project with a built-up area of over 320,000 square feet will include 134 residential units comprising spacious one, two and three-bedroom apartments, penthouses and townhouses. Apartment units range from 780 square feet to 3,400 square feet. Gemini Splendor at Sobha Harland community will also have comprehensive retail, shopping and entertainment facilities, along with much needed green spaces. The project is scheduled for completion this year. Avinash Khatter, President of The Real Estate Kings (TREK), commented: "Dubai is lucrative market for international Indian brokers. The real estate market here has everything on offer - from high-end luxury to affordable housing, making it a perfect destination for Indian investments.” “Gemini Splendor has everything that an Indian real estate investor need. Our group forecasts a high demand for Dubai Properties back in India”, he concluded. g residential units in Pakistan and UAE, making it one of the largest property developers in Pakistan. The company’s existing projects that are being developed, includes Champions Tower I, II, III and IV and Frankfurt Sports Tower – all located within Dubai Sports City as well as Cambridge Business Centre at Dubai Silicon Oasis. Shaikhani Group traces back its origin in 1978 in Pakistan when Abu Baker Shaikhani, a Pakistani entrepreneur, started a business in selling tea. He later added masala,

PROJECTNEWS soap and household items to his list of products. After gaining experience in many trades, he focussed on property business initially in buying and selling of properties in the Sindh state of Pakistan, mostly in Karachi – the country’s largest city. In 1978, he ventured into real estate development and undertook a residential project with 600 apartments. He successfully delivered them. This marked the real foundation of the Shaikhani Group. The company went on to become one of the largest private sector property developers in Pakistan. In 2013, it delivered 3,200 apartments – the largest in the country that year. By 2015, the company delivered more than 30,000 residential in different parts of the world. Leveraging on its strengths for successful real estate development worldwide, the group later identified untapped, emerging and growing markets, and diversified its source of revenues by expanding trading, manufacturing and other businesses. Overseeing the global operations of the multi-billion dollar international business conglomerate with diversified interests in real estate development, trading, manufacturing and IT, the group is presently headquartered in Dubai and spread across 90 countries in Asia, Africa, Europe and the Middle East. The group has come a long way to establish itself as a global conglomerate with footprints in different countries across the world. The group’s businesses are being led by the second generation, Abu Baker Shaikhani’s four sons who were personally trained by the patriarch. g Gulf Property

GULF TOURISM

UAE’s tourism spending hits Dh110 bn in 2016

Gulf Property Exclusive

otal tourism spending in the UAE is estimated to have reached Dh110 billion (US$30 billion) last year, a top government official said. The UAE received 24.8 million tourists in 2016 – a year that saw investments exceed Dh26 billion in the sector. Mohammed Khamis Al Mheiri, Undersecretary at the UAE Ministry of Economy and Advisor to the Minister

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for Tourism Affairs, said, “Tourism is a top priority under the development policies of the UAE, and the sector contributes 12.1 per cent to the national gross domestic product (GDP) and accounts for around 10.4 per cent of the domestic labour market. “Investments into the sector exceeded Dh26 billion in 2016, a year which saw the number of visitors to the UAE reaching 24.8 million with total spend of about Dh110 billion (US$30 billion).” This is higher than the Gross Domestic Product (GDP) of half of the world’s

211 countries listed by the United Nations. As many as 110 out of the world’s 211 sovereign countries have GDPs lower than US$30 billion. “The region’s countries are at the threshold of a new phase of tourism growth which requires greater cooperation in order to ensure maximising opportunities,” Mheiri said. “I believe that today we are facing a new phase of tourism growth that requires greater cooperation to ensure that we benefit from the opportunities in this sector, work harder, consolidate our partnerships, and

exchange experiences and knowledge among our countries at the government and private levels. “These will help us to overcome any challenges that we face in developing our tourism sectors, enhance the industry’s competitiveness, and maximise its ability to contribute to the overall sustainable development of our countries.” Quoting the World Travel and Tourism Council’s (WTTC) report, Al Mheiri said, tourism sector provides about 617,000 jobs in the UAE and represents 10.4 per cent of the total national

GULF TOURISM

workforce, with the latter expected to increase by 1.8 per cent within the current year. Al Mheiri added that total tourism investments in the UAE is expected to reach Dh74.5 billion by 2027, stating that the number of visitors to the UAE grew 5.5 per cent in 2016 over the previous year to 24.8 million, with spending estimated at Dh110 billion and expected to rise to Dh113.4 billion this year. He added that the number of visitors will hit 31.45 million in 2027, with a spending volume of Dh184 billion (US$50.15 billion). He also pointed out that the

Middle East and North Africa (MENA region has immense potential to become one of the world’s leading tourist destinations due to its extensive tourism attractions. The UAE is the largest tourism market in the Middle East, followed by Egypt, excluding religious tourism and pilgrimage. So phenomenal has been its growth in the region in recent years that officials estimate it has the potential to become a key driver of the growth and economic diversification for the MENA region. In fact, Dubai’s tourism sector is expected to help the economy

shrug off sluggish market conditions and help it return to previous growth levels this year, if official estimates are anything to go by. Dr Taleb Rifai, SecretaryGeneral of the United Nations World Tourism Organisation (UNWTO), said, the MENA region will welcome 195 million international tourists – almost triple the present volume of 72 million – forecasted by UNWTO for 2030. “Despite all external shocks, the Middle East and North Africa [region] tell one of tourism’s biggest success stories. A story that brings an

immense opportunity to make tourism a pillar of economic diversification, job creation and sustainable development in this region,” Taleb Rifai, who was in Dubai for the Arabian Travel Market, says. The Middle East recorded 53.6 million international tourist arrivals in 2016. Arrivals decreased an estimated 4 per cent with very mixed results among the region’s destinations. The decline is primarily attributed to the ongoing insurgencies in Yemen and parts of Iraq, civil war in Syria and unrest in some other parts of the MidGulf Property

GULF TOURISM “The MENA region has immense potential to become one of the world’s leading tourist destinations, owing to its extensive tourist attractions....

–Mohammed Khamis Al Mheiri, Undersecretary, UAE Ministry of Economy

dle East. International tourist arrivals to North Africa grew by 3 per cent to 18.6 million. Dubai’s Department of Tourism and Commerce Marketing (DTCM) published revised figures for last year that show an increase in the number of tourists to 13.2 million, a growth of 8.2 per cent year-on-year. It said in March last year that 11.6 million people visited the emirate in 2015, a growth rate of about 5.5 per cent. Tourism sector contributes 32 per cent to Dubai’s gross domestic product (GDP) directly and indirectly. Leisure travel spending (in-

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bound and domestic) generated 79 per cent of direct travel and tourism GDP in 2015 or Dh97.9 billion ($26.65 billion), compared to 21 per cent for business travel spending or Dh26 billion ($7.08 billion). This demonstrates the growth trajectory and potential of the UAE’s travel and tourism sector as it continues to roll out mega projects with leisure visitors in mind. According to a report by The First Group, in terms of the tourism sector’s size and GDP contribution, UAE ranked 105th, but its 2016 growth forecast ranked the

country 42nd out of 184. Looking at the 10-year growth forecast, the WTTC in its ‘Travel and Tourism Economic Impact 2016 UAE report says the country ranked 48th place. The growth of the industry generates more job opportunities, and the key beneficiaries are hotels, travel agents, airlines and other passenger transportation services. The WTTC report also reveals that in 2015, travel and tourism directly supported 330,000 jobs (5.7 per cent of total employment). This is expected to rise by

4.3 per cent per annum to 520,000 jobs (or 7.6 per cent of total employment) in 2026. According to DTCM, the number of overnight visitors flocking to Dubai in 2016 rose to 14.9 million from 14.2 million a year earlier, led by visitors from India, Saudi Arabia and the UK. The figure places Dubai firmly as the world’s fourth most visited city behind Bangkok, London and Paris, according to DTCM. However, it falls flat of Dubai’s previously stated ambitions to grow at an annual rate of between 7 and 9 per cent and leaves the emi-

Omniyat brings Belotel to Kuwait

rate needing to expand its numbers by nearly a third over the next three years to achieve its target of 20 million tourists by Expo 2020. DTCM said that it had achieved the growth despite ‘unique disruptions’ in its three largest source markets caused by the scrapping of high-value notes in India, slower economic growth in Saudi Arabia brought about by the oil price rout and a slump in the value of the pound following Britain’s decision to leave the European Union last year. Nonetheless, DTCM said, there was a 12 per cent in-

ontinuing its expansion in the GCC, Swiss-Belhotel International (SBI) has entered into a management agreement with Omniyat Real Estate to operate two properties in Kuwait. Both Swiss-Belboutique Bneid Al Gar and Swiss-Belresidences Al Sharq are under development and expected to open in 2018. Kuwait is pressing ahead with multiple plans to boost tourism that will see billions of dollars being invested in projects such as the expansion of Kuwait International Airport, reaching 25 million passenger capacity annually by 2025; and development of cultural attractions like Sheikh Saad Al-Abdullah Islamic Centre. According to figures from the World Travel and Tourism Council, travel and tourism investment in Kuwait is set to rise 1.5 per cent per annum over the next ten years to KD135.6 million in 2027. Performance is forecast for strong recovery in 2017 with continued growth until 2026, reaching values of KWD501.3 million. Corporate travellers accounted for 70 per cent of total visitor arrivals in Kuwait in 2016. However, Kuwait is actively working to diversify its guest segmentation in order to secure the projected

crease in the number of Indian tourists visiting Dubai, bringing the number of overnight visitors to 1.8 million; a 6 per cent increase in the number of tourists from Saudi Arabia, totalling 1.6 million, and a 5 per cent increase in visitor numbers

levels of growth over the coming years. Leisure travel spending is expected to rise by 4.5 per cent per annum reaching KD1,939.1 million in 2026, following an annual growth rate of 8.7 per cent. Laurent A. Voivenel, Swiss-Belhotel International’s Senior Vice President, Operations and Development for the Middle East, Africa and India, said, “We are very proud to debut the Swiss-Belboutique and Swiss-Belresidences brands in Kuwait that is one of the key growth markets for us in the GCC. The hospitality Industry in the country is witnessing a remarkable growth at the moment and we are truly grateful to Omniyat Real Estate for having given us this great opportunity.” The steady growth of tourism in Kuwait, with a vision to welcome 440,000 visitors annually by 2024 is fuelling demand for quality hotels. Dr. Abdullah Abdulsamad Marafi, Owner and General Manager, Omniyat Real Estate, said, “We are very pleased to partner with a reputed operator like SwissBelhotel International who is well-placed to meet the needs of the domestic market in accordance with the best international standards. Both Swiss-Belboutique Bneid Al Gar and Swiss-Belresidences Al Sharq are being developed for discerning domestic and international travelers looking for world-class accommodation in Kuwait.” from the UK, with 1.2 million holidaying in the city. Dubai Government’s Tourism Vision 2020 aims to leverage the sector by broadening Dubai’s offering across events, attractions, infrastructure, services, and packages. Part of this strat-

GULF TOURISM

The government is making huge investments in enhancing tourism infrastructure as well as developing new leisure and lifestyle attractions. Gavin M. Faull, Chairman and President of Swiss-Belhotel International, said, “It is the perfect time for us to enter Kuwait when the country is evolving into a multifaceted destination with the development of diverse attractions for both corporate and leisure visitors. This has significantly pushed the demand for quality hotels and represents a brilliant opportunity for Swiss-Belhotel International to grow our footprint in the country. We are confident both SwissBelboutique Bneid Al Gar and Swiss-Belresidences Al Sharq will add tremendous value to our growing presence in the region while further strengthening our international portfolio. ” Swiss-Belboutique Bneid Al Gar will be a comfortable and stylish address for both business and leisure travellers offering a home-awayfrom-home experience. Featuring 58 rooms equipped with top-notch facilities, the hotel enjoys an exceptional location in Kuwait City with no other international hotel brand having a presence in the area. Included in its facilities will be a multiple choice of leisure and recreation facilities such two superb restaurants, lobby café, spa, health club and swimming pool. g egy involves adapting a marketing approach to showcase Dubai to a wider audience and increasing awareness and conversion of flight and hotel bookings. With a number of theme parks, Dubai has now become a leisure destination. g Gulf Property

HOMEDECOR

Space-saving furniture is becoming the in-thing among the households of the upwardly mobile couples and professionals

Creating space with Practical Furniture

By Anita Joseph GP Exclusive

obia, 30, and her husband Mohammed Hanan, 35, have just rented a one-bedroom unfurnished flat in the Qusais neighbourhood in Dubai. They’re now trying to furnish it, but they have a problem: the pieces they have in mind for the home are way too large and cumbersome. The beige and floralthemed couch they saw at The Home Centre store eats

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up so much of the living room space that the four-seater dining table they spotted at a local store will not find a place in their home. “We’re on the lookout for compact, space-saving furniture that will allow us to do up our rooms in style, at the same time will not eat up much room,” says Sobia. Many like her are on the lookout for smart, interior solutions which are compact and have the amazing ability to stay hidden when not in use. Furniture that helps live life more efficiently by creating multipurpose rooms in homes. Well-placed storage

furniture, as well as furniture for small spaces that increases home storage options and enables ‘living large’ despite cramped surroundings. However, most of them say the challenge of living in a small space is an obstacle to chic design. Problem-solving how to fit belongings into a compact area takes up the energy that would normally be spent on fun decor details. “The greatest challenge is to find space saving furniture that is trendy and chic at the same time,” says Sobia. “Then there is also the ques-

tion of customisation and decor-specific needs. The challenge of finding the apt furniture piece is very real,” she adds. Taking into account this growing need for compact, trendy interior solutions many furniture and interior design brands are now diversifying into innovative, space Many leading developers like Danube, for instance, have already introduced space saving furniture in their residential and commercial projects that turns a one-bedroom apartment into a two-bedroom apartment at night when the bed tucked in

HOMEDECOR Space-saving furniture offers more living space in a small household, limited by budget

“We’ve identified a trend towards developing smaller apartments and villas with an additional challenge of keeping such properties multifunctional, trendy and stylish, all at the same time....

–Tariq Ramadan, Founder, Practical Furniture

the wall panel is released for sleeping at night. This helps a couple to accommodate relatives when they visit them. UAE-based business conglomerate Tharaa Holding has launched an interior solutions company Practical Furniture that specialises in elegant and innovative space saving furniture and interior solutions catering to the design and functional needs of the UAE market. Practical Furniture provides products like hidden mini-kitchens and Italian modular furniture for residences, hotel apartments

and hotels. The product range is also suitable for guest hospital beds, military accommodations, student dorms and staff accommodations. Superior interior solutions from Practical Furniture provides an outstanding opportunity for real estate developers, hotel operators and property owners to better utilise and add significant value to any given space. Tariq Ramadan, founder of Practical Furniture, says: “Through our long-standing experience in the real estate industry, we’ve identified a trend towards developing

smaller apartments and villas with an additional challenge of keeping such properties multi-functional, trendy and stylish, all at the same time. Therefore, we’ve explored the world for quality solutions that can address these challenges and the result was the launch of Practical Furniture. We are confident that our smart interior solutions will help property owners, real estate developers and hotel operators increase the usability and functionality of a given space.” “Furniture that saves space is multi-functional and cost effective, providing optimum

use of space. Where traditional furniture is huge, cumbersome and inflexible, space saving furniture can fold, stretch or bend to suit requirements,” he says. “Space saving furniture is usually multifunctional and can be used for multiple purposes within the same space, providing maximum space utilisation. For example, a wall bed with sofa can transform a living room in the morning into a bedroom at night. Other solutions offer sleeping, dining, playing, sitting and sleeping options within a 1m x 2m space. All this can’t be offered by tradiGulf Property

HOMEDECOR

tional furniture,” he adds. Another advantage of space saving furniture is its ability to be customised to suit any surrounding, however small. “Space saving furniture comes in different colours and different kinds of finish, and in case of projects (more than 20 units), the colours and finish can be customised to suite the overall design of the room. This is very important for hotels and hotel apartments,” Ramadan says. “Further, space saving furniture is slim and hidden, and is probably un-noticeable when not in use. Therefore,

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the furniture fits in well within any room style,” he adds. According to a new report published by Allied Market Research (AMR), the global folding furniture market is expected to generate $13 billion by 2022, growing at a Compound Annual Growth rate (CAGR) of 6.8 per cent from 2016 to 2022. Asia-Pacific constituted largest market share in terms of revenue in the overall foldable furniture market in 2015, followed by Europe. Growth in AsiaPacific is supplemented by rapid urbanisation and need for efficient use of available space.

The demand for folding furniture is expected to remain high during the forecast period, as it is an effective alternative to traditional furniture. These pieces of furniture, apart from being multifunctional and space saving, also enhances décor. “Folding furniture is a suitable option for people living in smaller places or studio apartments as contemporary furniture of this category offers benefits of transforming furniture with multifunctional ability. The US. and China will see an increase in demand for folding furniture owing to smaller living

spaces, urbanisation, and the high purchasing power of the millennial generation. However, manufacturers believe that rising raw material prices will have a long-term impact on the market and hamper growth,” says Yogiata Sharma, Research Analyst, Consumer Goods Research, at AMR. “The primary factor responsible for the growth of the market will be the increased number of smaller homes in the populous cities of the world, thus leading to the need for saving space. Foldable furniture provides for effective space saving options

HOMEDECOR Developers in Dubai are now offering homes fitted with space-saving/foldable furniture that allows more living space by maximising the utilisation of storage facilities as bundled offer to couples and small families with limited budget

without downscaling but rather collapsing the furniture as per the available space,” says the report. “In most metropolises in the world, people’s average living area is getting smaller and smaller. More and more young people tend to move to large cities for more opportunities and more active life style,” Shiyao Wang, a Chinese researcher said in his report way back in 2013. “However, this phenomenon decreases the average living area gradually. Now in Beijing China, the average living area is only 21 square meters per person. More-

over, high population density leads many other problems such as high gap between rich and poor, high energy cost and house price. These are common problems in metropolis nowadays. Transformable space saving furniture is one of the options to solve these problems.” The appeal of this type of furniture also lies in its eyefriendly designs, convenience of size and the ability to remain unnoticed when not in use. Ramadan says it is great value for money as well. “Our prices range from Dh2,495 for a twin hidden

bed, up to Dh4,771 for a double hidden bed, and more if wardrobes, book cases, cabinets, sofas, tables are added,” Ramadan says. “Our products are scalable as well, which means that the customer can buy just a bed, or they can add as many wardrobes and cabinets as they want to fully utilise the room,” he adds. That’s not all. “All the furniture that we offer is standalone and will only require a small screw to be fixed to the wall. Our professional team of installers can fix any units within one hour and ensure that it is safely installed,”

says Ramadan, of his ‘practical’ furniture. His company is on an aggressive promotion mode, with plans to focus on digital marketing. “Our business plan focuses on digital marketing and ecommerce to promote our products, with plans to partner with carefully selected retailers to display and sell our products. We’ve also been approached by several developers and hotels who are interested in offering our products to their customers,” Ramadan says. Library beds, folding tables, wall bed units and hidden kitchens are some of the most sought-after items of furniture. Practical Furniture has an Accademico Twin Wall bed system, which is an ergonomic, multifunctional wall bed featuring a closed cabinet and a desk with sliding-door cupboards, shelves, and a mirror. Perhaps, nowhere is space saving furniture more crucial than the kitchen. And the range of practical, space saving kitchen ideas are endless. Single bowl sinks, undermount sinks, hidden kitchens, wall mounted storage space, pullout pantries, ceiling cabinets-these are only some of the innovative space-saving kitchen ideas in the market today. So the next time you feel the need for space, change your furniture, not your home. g Gulf Property

SPOTLIGHT Fabyland to become Cityland Mall fun hub

ityland Mall – UAE’s first nature-inspired mall scheduled for launch in the second quarter of 2018, has announced Fabyland as its official family entertainment provider. Fabyland, a brand under Al-Othaim Leisure and Tourism Co., is a ‘futuristic’ family entertainment destination that has a wide variety of rides and games. Fahimuddin Sharfuddin, Chief Executive Officer and Board Member, Cityland Group, said, “We are delighted to have Fabyland on board, and their inclusion into the exciting mix of attractions at Cityland Mall promises a memorable experience for people of all ages. Our experience teaches us that children are one of the toughest audiences to please, but winning their hearts gives an unparalleled gratification and validation of efforts. This is where Fabyland, will complement other attractions, to become a big draw for families.” Fabyland will occupy close to 35,700 square feet of floor space and offer popular attractions, such as Family Swing, XD Dark Ride, Bumper Cars and an interactive soft play area. It will also house an ‘Action Zone’ infused with virtual reality technology. g

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Land Dept launches employee initiative

The Land Department’s new initiative is designed to enhance employee productivity

he Dubai Land Department (DLD) recently launched ‘DLD Talk’, a new specialised reading and strategic innovative thinking initiative, in line with the department's efforts to develop its employees and motivate them to improve their operational efficiency and customer service. The new initiative is divided into two phases. The first phase encourages all employees to read books or scientific materials in their field of specialisation, summarise what they have read, and

then share their newfound knowledge with a group of DLD managers and employees via a lecture or presentation. The second phase is entitled ‘Innovative ideas’. For its optimal implementation, workshops will be organised for sector and department managers. Sultan Butti bin Mejren, Director General of Dubai Land Department, said: "As an active government institution, we play active and supportive roles in furthering all initiatives and projects launched by our wise leadership to enrich the nation and

citizens in all fields, including the UAE National Reading Law. “One of the main objectives of DLD Talk is to generate as many innovative ideas as possible, and we will be training all of our employees in varied ways of thinking to create an innovative work environment," he added. "The implementation of a project of this size helps us to strengthen the department's efforts in providing an educational work environment based on the exchange of innovative ideas,” bin Mejren said. g

l Hamra Group has almost completed the first phase of its Dh390 million expansion of Manar Mall, the emirate’s premier retail and leisure destination, the company said in a statement. Once complete, the Gross Leasable Area (GLA) will increase from just over 300,000 square feet to nearly 600,000 square feet, over two levels, and will add another 80 retail destinations,

taking the total number of retail outlets to 164. These outlets will provide a wide range of international and local retailers for residents and visitors alike. The first phase of the expansion project is due to be handed over before the end of the second quarter this year, and complements the ambitions of the RAK Tourism Development Authority which recorded 800,000 tourists in 2016, a 10.9 per cent in-

crease over the previous year. The Manar Mall expansion is being undertaken by Al Hamra Real Estate Development, a fully owned subsidiary of Al Hamra Group, which has proven expertise in developing and managing master-planned communities. Al Hamra Group owns hospitality, retail and leisure assets such as the iconic Waldorf Astoria Ras Al Khaimah. g

Manar Mall expansion ready

MENA Green awards honours companies

Emirates Green Building Council (EmiratesGBC), an independent forum aimed at conserving the environment by strengthening and promoting green building practices, announced the winners of the 2017 MENA Green Building Awards that recognise innovation, creativity and excellence in promoting sustainability best practices. With record submissions from six nations across the MENA region, the awards highlighted the growing focus of industry stakeholders to promote innovation and best practices to drive sustainably built environments. At a carbon-neutral awards ceremony held at Roda Al Murooj hotel in Dubai, the winners in various professional categories were honoured in the presence of

government officials, industry leaders, representatives of academia and media. The Dr. Owainati Student Excellence Award for a student from a recognised university in the UAE, who has conducted exceptional research on a subject related to green building in the Middle East, was also presented at the event. Supported by the World Green Building Council (WorldGBC), the 2017 MENA Green Building Awards was organised by EmiratesGBC in partnership with the JordanGBC and LebanonGBC. The event was highlighted on social media under the hashtag: #MENAGBAwards. Saeed Al Abbar, Chairman of EmiratesGBC, said: “We congratulate the winners of the 2017 MENA Green Building Awards, not only for their demonstrated excellence in driving the sustainability-dri-

ven environment of the region but also for their commitment and dedication to innovation and promoting green best practices.” “This year, we had a record number of submissions, underlined by their quality, creativity and original thinking. Across all the categories, what is clearly apparent is the focus on pushing boundaries, setting new benchmarks and contributing to the all-round vision of securing a greener future for our coming generations. We hope to share the insights from our winners for the benefit of the larger community and to support the building industry in undertaking new and proven sustainable best practices that help achieve better living environments, higher energy and water use efficiency, and reduce carbon footprint,” he added. g

SPOTLIGHT

Canadian Solar gets DEWA job

anadian Solar has supplied 268MW of double-glass Dymond modules for the first phase of the 800MW Mohammed bin Rashid Solar Park in Dubai. The company started production and delivery of the modules this month. The first phase of the project will utilise more than 800,000 double-glass modules. Scheduled to be completed by 2020, it is being looked after by an engineering procurement and construction (EPC) joint venture (JV) consortium, which includes Acciona, Gransolar, and Ghella. Canadian Solar's chairman and chief executive officer (CEO) Dr Shawn Qu said: “I am confident that Canadian Solar's Dymond modules will perform well in the project's hot desert climate. “As Dubai diversifies its energy portfolio, our partnership will serve as an excellent example for future utility-scale solar projects in the region and we are eager to contribute further to the energy market growth in the Middle East.” The solar park is part of the Dubai Integrated Energy Strategy 2030 initiative, which aims to secure a sustainable supply of energy through diversification in sources. Dubai aims to reduce its dependence on imported natural gas and increase solar energy to 15 per cent by 2030.g Gulf Property

SPOTLIGHT

on-resident Indians (NRIs) in the UAE are taking a greater interest in Indian real estate, according to a latest survey conducted among 10,000 UAE based Indian expats by the the organisers of the upcoming Indian Property Show. The real estate sector is one of the most globally recognised sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. The Indian real estate market is expected to touch US$180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP). It is also expected that this sector will incur more non-resident Indian (NRI) investments in both the short term and the long term. According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.28 billion in the period April 2000-December 2016. In the period FY20082020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 per cent. The private equity investments in real estate increased 26 per cent to a nine-year high of nearly Rs400 billion (US$6 billion) in 2016. “More NRIs are now interested in securing an additional investment; a rise of 110 per cent is witnessed in this segment from 20 per cent last year to 42.12 per

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NRIs more keen to buy homes in India

The Land Department’s new initiative is designed to enhance employee productivity cent now. Moreover, there is an increase of about 45 per cent in the people looking to buy homes in the budget range of Rs5.1-7.5 million (Dh290,000 – Dh426,000), from 21 per cent last year to 30.48 per cent this year,” the report said. Furthermore, although Mumbai, Chennai, Bangalore, Delhi, Hyderabad and Pune remain the top favorite cities amongst the Indian community here, Kannur, Thrissur and Thiruvananthapuram emerge as new destinations of interest and growth. “NRIs are crucial stakeholders of the real estate industry. In 2017, total NRI investment in realty in top eight cities is expected to touch $11.5 billion (Dh42.20 billion). This will represent 20 per cent of the total market share, currently estimated at $60 billion (Dh220 billion),” said R. Srividya, General Manager- Corporate Sales &

Brand Engagement, Indian Property Show, Sumansa Exhibitions. The Indian Property Show, now in its 20th edition will be held from June 8-10th, 2017 at Dubai World Trade Centre. The survey uncovered a number of interesting trends related to NRI investments into their home country and was conducted to understand the reason of buying property in India, preferred cities for investments, type of property, time frame, budget and finances planned, etc. Some other interesting findings of the survey include, apartments remained a favourite choice for investment at 46.97 per cent followed by villas (27.35%), land (15.08%) and commercial (10.60%); a sharp increase within 41-50 years age group of people looking to buy property in India – from 25 to 37.78 per cent. Almost 51% increase from last year, with majority of inter-

ested NRI buyers from UAE fall within the monthly household income bracket of Dh10,000-20,000 at 39.17 per cent, whereas the second biggest group earns between Dh20,000 - Dh30,000 at 22.01 per cent. Affordable housing in India is finally set to get the muchcoveted infrastructure status. One crore houses are to be built in rural India by 2019, and this vital segment will now see cheaper sources of finance - including external commercial borrowings. A new Credit Linked Subsidy Scheme (CLSS) for the mid-income group with a provision of Rs10 billion in 201718 was announced before Budget 2017-18. Extension of tenure of loans under the CLSS of Pradhan Mantri Awas Yojana (PMAY) was increased from 15 to 20 years, and the budget also increased allocation to PMAY from Rs150 billion to Rs 230 billion in the rural areas. g

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COVERSTORY

Gulf Property

GCC aviation projects value hits Dh210 bn PROJECTNEWS

Gulf Property Exclusive

he total value of 152 active aviation-related projects in the Middle East reached US$57.7 billion (Dh210 billion) in April 2017, according to BNC Network, – the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region. GCC’s aviation sector constitutes 69 per cent of the number of all active aviation

Gulf Property

projects in the MENA and in dollar terms. The Gulf region’s aviation projects account for 72 per cent of the total estimated value for all aviation projects in the MENA region, according to BNC Intelligence. Dubai, which is on track to achieve a passenger traffic target of 146 million by 2025, recently announced plans for an initial $3 billion financing deal to support the expansion of its two international airports. The government has chosen HSBC to arrange the funding of $3 billion towards the expansion of Al Maktoum International Air-

port, the statement from the Dubai Media Office said.A consortium of Dubai state entities, comprising of the Department of Finance, state-owned fund Investment Corporation of Dubai, and the Dubai Aviation City Corporation, will raise the financ-

ing. “The funds will come from a variety of sources and will include conventional and Islamic tranches,” the statement added. Already, Dubai International Airport is the world’s largest international airport handling 78 million passengers in 2015 with the addition of 7.5 million passengers, recording a 13 per cent average compound annual growth rate since 2000.While Atlanta Hartfield-Jackson, the main hub for Delta Air Lines, remains the busiest, it only processed 5.3 million additional passengers for a total of 101.5 million. Beijing

PROJECTNEWS At A Glance

$57.7 billion

value of airport projects in the Middle East

$11.5 billion

value of stalled airport projects in the Middle East

$277 billion

value of aircraft order backlog from Middle Eastern airlines as at 2016

1,000

number of aircraft on firm order by airlines in the Middle East

83.5 million number of passengers passing through Dubai Airports in 2016

400 million

number of passengers passing through the airports in the Middle East

airport added 3.8 million to reach 89.9 million.Within this decade, Dubai International Airport expects to become the world’s busiest both in terms of domestic and international passengers, overtaking Beijing and Atlanta. The latest BNC Intelligence report shows that Saudi Arabia has the largest share (46%) of aviation projects in the GCC in terms of dollar value followed by the UAE (26%) and Kuwait (12%). In April 2017, three airport projects in Saudi Arabia were awarded for construction, namely the redevelopment of Hail Airport project worth

US$380 million, Qassim International Airport located in Buraidah worth US$372 million and Taif International Airport worth US$350 million. Two more aviation projects – namely STTS Aircraft Painting Facility located in Dubai World Aviation City and an Aircraft Hangar facility at Sharjah International Airport – were also awarded in April 2017. “A strong aviation infrastructure will be a fundamental driver of development across the region. Connecting the region through a network of small airports facilitates urbanisation

across a country rather than just around major cities. Small airports support the need to continue to build larger airports as well as airlines require hubs to manage their growing operations,” Avin Gidwani, Chief Executive Officer of BNC Network, says. "Air travel is being rapidly commoditised – people expect and demand fast, easy and economical mobility and for the region to stay economically competitive and attractive for business and tourism it must put in place a world-class aviation infrastructure."

The combined aircraft order backlog by Middle Eastern carriers reached US$277.9 billion (Dh1.01 trillion), or 14.4 per cent of the total global aircraft order backlog, according to a report by Deloitte. This involves more than 1,000 aircrafts on order to serve over 400 million passengers by 2025. Middle East carriers had the strongest regional annual traffic growth for the fifth year in a row in 2016, according to the International Air Transport Association (IATA). “Revenue Passenger Kilometres (RPKs) expanded Gulf Property

PROJECTNEWS “A strong aviation infrastructure will be a fundamental driver of development across the region. Connecting the region through a network of small airports facilitates urbanisation....”

– Avin Gidwani Chief Executive BNC Network

11.8 per cent, consolidating the region’s position as the third-largest market for international passengers. Capacity growth (13.7%) continued to outstrip demand, with the result that the load factor fell 1.3 percentage points to 74.7 per cent,” IATA said in its annual report. The latest BNC Intelligence report reflects increasing focus by the governments of the oil-rich Gulf countries on aviation and tourism sectors to diversify their economies and reduce dependence on hydrocarbon. “Continuous economic growth in Arab countries and empowerment of the region’s population will encourage more people to travel across the region and out of the region for business and leisure, pushing the demand for additional airport capacity – both passenger terminal and aircraft take-off and landing facilities,” Gidwani says. “Therefore, the govern-

Gulf Property

Avin Gidwani, Chief Executive Officer of BNC Network

ments of the Middle Eastern countries are expected to increase investment in aviation infrastructure in the coming years.” Among the mega airport projects, Al Maktoum International, with a development value exceeding US$8 billion (Dh30 billion) will continue to dominate the headlines, followed by Abu Dhabi International Airport’s expansion, valued at US$6.8 billion (Dh25 billion) and the ongoing expansion of Seeb International Airport in Muscat as well as Kuwait International Airport. Dubai International Airport

– the largest aviation hub in the Middle East that is undergoing a Dh28 billion expansion – has served 83.65 million passengers last year and will reach its capacity of 90 million in two years – that will put pressure on its facilities. This will accelerate the pace of construction activities at Al Maktoum International Airport at Dubai South master development. However, due to certain reasons, more than 31 per cent of the aviation projects with a combined estimated value of US$11.5 billion (Dh42.2 billion) are on hold in MENA.

According to BNC Intelligence, airport projects have the largest share (83%) of the GCC’s aviation industry in terms of dollar value and the rest 17 per cent is accounted by hangar facility projects, runways and ancillary facility projects. BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day. g

Top 10 Airport Projects in the Gulf Region

overnments of the GCC countries are spending massive amount to develop aviation infrastructure for future increase in air triffic across the region. Following is a snapsopt of the top ten airport projects in the Gulf region. Airport projects are yet to face the fiscal axe as GCC countries look to cope with low oil prices. 1. Al Maktoum International Airport Country: UAE Budget: $33 billion Progress: Enabling works Billed to be the world’s largest greenfield airport, it will have a design-built capacity to handle 160 million passengers with 5 runways. Existing facilities include a single A380 compatible runway; a passenger terminal with capacity of 5 million passengers per annum and a cargo terminal building with 1mtpa capacity. The first phase will accommodate 120 million passengers annually and accommodate 100 A380 aircraft. In March 2015, UK-based Leslie Jones Architecture was commissioned to work on a commercial design strategy for the airport. 2. Hamad International Country: Qatar Budget: $18 billion Progress: Phase 2 cleared After being plagued by a 10year delay, Phase 1 of Hamad International Airport started operations in April 2014 with a capacity of 30 million passengers a year and a 600,000 square metres passenger terminal building. The project covers 28 square kilometres. In December 2014, phase two was cleared with the fourth

quarter of 2015 set as the deadline for awarding the design contract, completing the design works and deciding the budget. The government is planning to invest $3 billion in the third phase, which will take the capacity to 53 million passengers a year and increase the size of the terminal to 900,000 square metres. In March, the New Doha International Airport Steering Committee invited consultants to bid for the programme management of the future expansion works. 3. Kuwait Int’l Airport Country: Kuwait Budget: $4.8 billion Progress: Delayed The project involves increasing initial capacity to handle 13 million passengers a year by 2016, with the flexibility to increase it to 25 million passengers in the second phase and 50 million passengers a year in the third phase. The expansion includes construction of a new terminal building and extension of the existing runways, construction of a hotel, car parks and associated aprons and remote stands. The project is under review. 4. King Khalid International Airport Country: Saudi Arabia Budget: $4 billion Progress: Terminal 5 on track King Khaled International Airport in Riyadh is the second biggest airport in Saudi Arabia, after Jeddah. In 2013, a joint venture of Turkey’s TAV and local AlArrab Contracting Company was selected to build Terminal 5 on this scheme – currently, the airport consists of four passenger terminals. The expansion programme will extend capacity to 35 million passengers a year. The entire programme is set to be completed by 2017 with the airport starting oper-

ations in January 2018. 5. Abu Dhabi Midfield Terminal Country: UAE Budget: $3billion Progress: Opening in 2017 The Midfield Terminal Building project at Abu Dhabi International Airport is expected to achieve 60-65% completion by the end of this year. Abu Dhabi Airports has hired a team that will assess the readiness of the terminal while staff and dummy passengers will test the terminal from the first quarter of 2017. Alongside the MTB, work on the airfield and terminal taxiway are progressing as well. 6. Muscat Int’l Airport Country: Oman Budget: $1.8 billion Progress: Behind The project is set to be handed over in early 2016 almost two years behind its planned completion date of April 2014. Currently, the structural steel is almost in place, the cladding is in progress along with MEP systems and stone work. The new facility will have a capacity of 12 million annual passengers in the first phase, 24 million in the second, 36 million in the third, and 48 million in the final phase. 7. Prince Mohammad bin Abdulaziz Airport Expansion – Phase 1 Country: Saudi Arabia Budget: $1.4 billion Progress: Test runs More than a million Hajj pilgrims use the Prince Mohammad Bin Abdulaziz Airport each year and, together with around 4m Umrah travellers, this makes it the fourth busiest airport in Saudi Arabia. In 2013, a consortium led by Turkish construction giant TAV was awarded the buildoperate-transfer (BOT) contract for the phase 1 expansion of the airport in Medina, the first airport pri-

PROJECTNEWS

vatisation deal in Saudi Arabia. The consortium will operate the airport for 25 years. The work on Phase 1, which involves increasing the capacity of the airport from 4m passengers per year to 8m passengers, has been completed on schedule. 8. Bahrain International Airport Expansion – P1 Country: Bahrain Budget: $1 billion Progress: Enabling works Bahrain International Airport is the home of Gulf Air and receives nine million passengers a year. The new terminal is expected to be completed by 2018, cover 201,467 sqm and accommodate 14m passengers a year. The project management consultant is Hill International. 9. Salalah International Airport expansion – Phase 1 Country: Oman Budget: $765m Progress: Opening 2015 Salalah will be the second international gateway to Oman. Late last year, the Ministry of Transport and Communications had said that 93% of work on the airport has been completed. The new terminal will occupy 65,000 square metres with 2,200 vehicles parking. Its annual capacity of 1 million passengers per annum can be expanded up to 6 million. 10. Ajman Int’l Airport Country: UAE Budget: $571 million Progress: Blueprint approved In September last year, Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, approved the final plans and designs for the new Ajman International Airport project. The airport, which will be located in the Al Manama area, will give additional impetus to the emirate’s tourism sector. g Gulf Property

NEWSUPDATE

Danube expands operations

Rizwan Sajan (Left), Founder Chairman of Danube Group, flanked by Brand Ambassador Sushmita Sen, former Miss Universe, during the opening of the new head office of Danube Properties

Gulf Property

NEWSUPDATE

Gulf Property

PROJECTNEWS Bayz by Danube is Danube Groupâ&#x20AC;&#x2122;s first project at Business Bay

Danube entes Business Bay with Dh450 m Bayz 62

Gulf Property

PROJECTNEWS

Rizwan Sajan (2nd right), Founder Chairman of Danube Group, flanked by Anis Sajan, Managing Director of Danube Group (Right), Adel Sajan (Left) Danube Group Director and Atif Rahman (2nd left) Head of Properties at Danube Group, seen with a model of Bayz by Danube

Gulf Property Exclusive

anube Properties, which recently shifted to its new, large head office on Dubai’s Sheikh Zayed Road, has launched a Dh450 million project, Bayz, to be developed at the Business Bay. The 29-storey Bayz tower comprises of 456 apartment units with views of the iconic Burj Khalifa and other landmark structures such as the JW Marriott Marquee Dubai Hotel, the Dubai Canal, among others. Moreover, the property boasts amenities including swimming pool, health club and a kid’s play area cum party hall. Danube, which is preparing to deliver its first project, Dreamz in the coming months, has launched eight projects so far including Bayz with a development value exceeding Dh3 billion. Danube, whose core business has been building materials and home decor,

entered the real estate business in summer of 2014 roughly three years ago. The company plans to deliver 1,000 units this year as construction of the first five projects are in advanced stage. Rizwan Sajan, said, “This is the first time we have chosen Business Bay as our location and through the launch of this project we aim to redefine the concept of affordable luxury housing in Dubai. I am confident that investors will be pleased with our latest offerings especially because of the prime location and the price they can now buy homes.” The company, which sold nearly a Dh1 billion worth of projects last year under what is perceived to be a very difficult time for the real estate market, continues to defy the odds as it strengthens its real estate portfolio – currently one of its biggest. Ranging from studios to three-bedroom luxury apartments, each apartment comes fully furnished with a modular kitchen, exquisite Spanish tiles, and top-notch

finishes. Furthermore, every home will include a European technology enabled convertible sofa that makes way for a bed- tucked into the wall. With this project Danube Properties will offer the lowest price in the Business Bay area and continue with their famous 1 per cent payment plan, starting at Dh6,490 per month. Till date, Danube has launched eight very successful projects, which are soldout. All projects launched under the Danube Properties portfolio are currently under construction, with the handover of the first projectDreamz scheduled to commence soon. At present, Danube Properties has a book value of Dh3 billion worth of projects with millions of square feet under construction. Over the last three years, Danube has been promoting affordable homes aggressively by bringing in new concepts – such as 1 per cent payment per month to help the middle income people in addition to offering space-saving furniture that

converts a one-bedroom apartment to two-bedroom apartment – using foldable sofa-cum-bed furniture. Affordable housing typically indicates a market-quality accommodation that can be afforded by people of lower incomes, usually measured as a society’s bottom income quartile with their housing expenses not exceeding 30-35 per cent of the household income. Furthermore, to be sustainable in the long term, affordable housing must not make its inhabitants feel second class, or have any stigma attached to it. Dubai Municipality denes affordable housing as living space for households whose income is between Dh3,000-10,000 per month. “Globally Dubai, when stacked against major metropolitan cities, trends at a high rent-to-income ratio of about 40 per cent for affordable households, on par with London and lower only to New York and Hong Kong,” said a report by Core Savills. “Nonetheless, it offers larger unit sizes across the board coming second only to Sydney, where the residential market is predominantly villa based.” “Locally, with the sharp rise in rents and capital values during 2012-2014 across the residential districts in Dubai, there has been a consistent geographical shift of the mid to lower income segment to the fringe locations or to northern emirates, which involves longer commute times, poorer quality of living and additional pressure on the transport infrastructure. “The rush hour trafc, especially between Dubai and Sharjah, is compelling residents to make a trade-off between a stressful commute and smaller apartment sizes and relocate to Dubai.” g Gulf Property

PROJECTNEWS

Nakheel starts building landmark projects

Gulf Property Exclusive

akheel signed a construction contract worth nearly Dh1.5 billion for The Palm Gateway, a new, three-tower residential, retail and beach club complex at the foot of the worldfamous Palm Jumeirah. Nakheel has appointed Shapoorji Pallonji Mideast LLC to carry out the work, which will begin in the second quarter of 2017. It will take two-and-a-half years to

Gulf Property

complete. Nakheel Chairman Ali Rashid Lootah said: “The Palm Gateway contract is among Dh12 billion worth of construction contracts to be awarded by Nakheel this year. We look forward to delivering another iconic, landmark project at the entrance to Palm Jumeirah through this first-time collaboration with Shapoorji Pallonji.” Shapoorji Pallonji Mideast LLC, part of India’s Shapoorji Pallonji Group, has been active in the region for the over 45 years, delivering a range of prestigious projects. MD Saini, Managing Director and

CEO, Shapoorji Pallonji International FZE, said: We are honoured and excited to have been selected to deliver this prestigious project.” The Palm Gateway includes 1,265 luxury apartments across three high-rise buildings – the tallest topping 285 metres – to be constructed on top of the existing Palm Monorail terminal, which includes 14 levels of parking spaces. Units range from one to three bedrooms and will be available on lease. The waterfront living and leisure complex, set in extensively-landscaped grounds,

will also have an abundance of retail, dining and health and fitness facilities, including parks, pools, and sports courts. The Palm Gateway will boast convenient transport links to other parts of the island and to the rest of Dubai. The Palm Monorail, which will remain operational throughout the construction of the project, is already connected to the Dubai Tram and the Dubai Metro. With panoramic views of Palm Jumeirah, the Arabian Gulf and some of Dubai’s most famous landmarks, The Palm Gateway will also have

Nad Al Sheba Mall leasing

akheel commenced leasing at Nad Al Sheba Mall, a new, 1.2-million square foot shopping, dining and entertainment destination at Dubai’s increasingly-popular residential area of Nad Al Sheba. Nad Al Sheba Mall, part of Nakheel Malls’ Dh16 billion expansion, will have 200 shops, restaurants and entertainment outlets including a supermarket, department stores, multi-screen cinema, medical clinic and fitness centre spread across 500,000 square feet of shop space. Construction is due to begin in 2017, with completion scheduled for 2020. Located just off Sheikh Mohammed Bin Zayed Road, the mall will be the vibrant centrepiece of Nad Al Sheba, a well-populated community with around 11,500 high end villas, mostly occupied by UAE nationals. The area includes Nakheel’s upcoming Nad Al Sheba community, set in lush grounds spanning 2.5 million square feet, and fea-

its own beach club and park – a shaded, landscaped complex with a diverse range of waterfront dining and shopping options, pool, barbecue areas and fitness facilities, including a jogging track. The Palm Gateway is one of a number of new projects in Nakheel’s growing residential leasing portfolio, which is set to double to more than 35,000 units, with other new developments coming to Palm Jumeirah, Warsan Village, Jebel Ali Village, Dragon City, Ibn Battuta Mall and Nad Al Sheba. The Palm Gateway is one

turing 1,500 four and five bedroom homes plus a club house, swimming pool and sports courts. Nakheel is set to become the region’s biggest retail developer, with 17 million square feet of leasable space across 18 projects, including large-scale malls, and souks. Four million square feet is already operational through Ibn Battuta Mall, Dragon Mart, Golden Mile Galleria and five neighbourhood Pavilions.

Cycling Tracks

Nakheel will also spend Dh150 million for a total of 105 kilometres of cycling tracks around many of its communities in Dubai. The developer said that a series of new, linked routes are being created around Jumeirah Village Circle, Jumeirah Village Triangle, Jumeirah Islands, Jumeirah Park, Discovery Gardens and Al Furjan. Alongside this, a new 10kilometre "super loop" speed track for experienced cyclists, with a smaller 5km loop inside it, is being built on a section of land between Jumeirah Park and Discovof three high rise developments by Nakheel on Palm Jumeirah. The Palm Tower, a 52-storey luxury hotel and residential complex at the centre of the island is under construction, while Palm 360, a 220-metre twin-tower penthouse, apartment and hotel complex, is being designed.

RIU Hotel

Meanwhile, the joint venture between Nakheel and leading Spanish hospitality group RIU Hotels and Resorts has moved a step closer, with the release of a construction ten-

ery Gardens. Once this initial network is completed, the developer will look to introduce tracks to other communities, including International City and Palm Jumeirah. Nakheel’s cycling paths will be linked to the proposed extension of Dubai’s cycling master plan at two points. The Nad Al Sheba track will link to a proposed extension of Dubai’s cycle network along the Mohammed bin Zayed Road corridor, while at Jumeirah Village Circle a link will be built to a proposed network in Al Barsha. The group has also inked a double deal with global hospitality giant Hilton to bring 704 new hotel rooms and serviced apartments to Dubai. The two companies signed a management agreement for Nakheel’s 254-room property at Jumeirah Village Triangle and for a hotel and serviced apartment complex at Deira Islands. Revenue from Nakheel’s retail operations grew by 70 per cent in 2016 compared to 2015. Its hospitality business jumped by 50 per cent in 2016 compared to 2015. g der for an 800-room, beachfront resort and water park at Deira Islands. With an investment value of Dh670 million, the resort – RIU’s first in the Middle East and one of the biggest in Dubai in terms of hotel rooms – is set for delivery in Q4 2019. The RIU resort will bring a new hospitality concept to Dubai, offering mid-scale, family-orientated, all-inclusive beachfront accommodation. Located on a prime beachfront plot at Nakheel’s new, 15.3 square kilometre Deira Islands coastal city, the resort will feature seven food and beverages outlets, three

PROJECTNEWS

Reshuffle in Management

akheel has shaken up its organisation, with a newly-created department and new senior management appointments, as the company enters the next phase in its growth. Fawzi Al Shehhi becomes Managing Director for Nakheel Community Planning and Management – a new department that combines the company’s existing Community Management and Development Control and Urban Planning functions. Fawzi has been with Nakheel since 2011 and previously held the position of Director Development Control and Urban Planning. Nakheel has also appointed Omar Khoory as Managing Director, Nakheel Malls, to lead the operations, leasing and planning for company’s shopping mall and retail developments. g swimming pools, a fitness complex, children’s club and a water park. Several new attractions, including Deira Mall, Deira Islands Night Souk and Deira Boulevard, are nearby. The joint venture is one of 18 projects in Nakheel’s Dh5 billion hospitality expansion programme which will deliver 5,800 new hotel rooms and apartments across Dubai in line with the Government of Dubai’s tourism vision for 2021. RIU Hotels and Resorts has almost 100 hotels, with around 45,000 rooms between them, in 19 countries. g Gulf Property

Schon starts works on Dh3.2bn iSuites PROJECTNEWS

Gulf Property Staff Report

chön Properties, one of Dubai’s top private developers, and Dubai Civil Engineering – part of Al Hamad Group of Companies – a leading mega projects construction company in the GCC, held a ground-breaking ceremony for the iSuites project – marking the start of construction works – on site in Dubai Investments Park, within a month of the announcement of their joint

Gulf Property

venture development. The main contractor, Dubai Civil Engineering (part of Al Hamad Group of Companies), broke ground on the project officially to complete 2,550 hotel apartment suites, 52 restaurants, outdoor cafes and 125,000 square feet shopping mall. This is all surrounded by a manmade beach and a lagoon spread over 5 acres – to be completed ahead of the Expo 2020. The project is well positioned to serve visitors of the Expo 2020 – that will host 25 million people within six months – many of whom will

need hotel apartments to stay. The ground-breaking ceremony will be followed by a flurry of construction activities that will see thousands of workers and construction equipment on ground in the next few months. The ground-breaking comes after the completion of piling and shoring works of the project, which will be connected to the Expo 2020 site, Al Maktoum International Airport and other major attractions through the new Dubai Metro line. Danial H. Schön, Founder and President of Schön Properties, spoke on the oc-

casion, “The ground-breaking ceremony within a month of our announcement of the joint venture reflects our strong commitment to expedite completion of the iSuites project prior to Expo 2020 and to contribute to the growth story of the UAE as a private developer. We owe a lot to this great city of Dubai and the UAE, and we are grateful to the vision of His Highness Sheikh Mohamed Bin Rashid Al Maktoum for making such a venture possible.” The branded hotel apartments will be managed by international hotel operators to

iSuites

Suites is a 21 building project (2B+G+8) cluster, comprising 2,550 luxurious hotel apartments, 52 restaurants and cafes, and 125,000 square feet shopping mall called the Laguna Centrale Mall. The project aims to serve the shortage of 4star hotel rooms close to the Expo 2020 and Dubai South. iSuites’ total constructible area is upwards of 2.6 million square feet. iSuites targets trendy millennials looking for an urban lifestyle hotel stay. Designed with elegance, the interiors of the hotel are chic, minimalistic, and contemporary. Interior is designed by Swiss Design Bureau, based in Geneva. It includes all smart technology aimed for millennials and the building entails a green, environmentallyfriendly design, saving on utility consumption charges. Construction works commenced on October 2016. The full project completion date is set for Q2 2020. g offer greater comfort to visitors. Part of the iSuites inventory will be offered to investors that offers a high return on investment. Sales of the iSuites are currently on as investors and buyers could now purchase a hotel suite or a serviced apartment that will be managed by international branded chain hotel operators and offers buyers a higher income of 12-15 per cent. Nashat Sahawneh, Chairman of Al Hamad Group of Companies, says, “The ground-breaking ceremony is our first step towards completing one of the region’s

largest single-site development of hotel apartments and we are pleased to be part of it. The move reflects our strong commitment to the project and we are determined to deliver it in time for Expo 2020. We take great pride to be part of a great vision set by our UAE rulers in the construction and development industry.” Al Hamad Group of Companies brings more than three decades of experience in constructing mega projects across the MENA region. The company is based in the UAE with operational footprint across the GCC.

The company has grown to become a group of large diversified businesses with more than 20 subsidiaries active in construction, industrial, real estate, quarrying, renewable energy and trading sectors. iSuites envisages smart modern living of functional and futuristic facilities. The fully-serviced hotel apartments are targeting millennials, who are interested in urban lifestyle hotel stays, small families coming to Dubai on a short-term corporate assignment or a pure family vacation. iSuites strategic location being next

PROJECTNEWS At A Glance

Dh3.2 billion

development value of iSuites

2,550

no of iSuites are being developed to cater to Expo 2020 visitors

Dh7 billion

value of land transactions during the first half of 2014

8 million

development portfolio of Schon Properties

to the world’s largest airport – Al Maktoum International Airport – assures high occupancy rates and secure income for investors. Schön Properties, one of the top private real estate developers in the UAE, has an 8 million square feet development portfolio valued at Dh7 billion. A vertically integrated company with over 400 staff, Schön has successfully delivered over 1.6 million square feet of developments to more than 3,000 customers (till October 2016). Schön was the first company in Dubai to launch affordable housing targeting mid-market buyers, and the first company to introduce a post-handover payment plan. Schön's Vision 2020 focuses on sustainable income models via hospitality investments next to Expo 2020, shifting focus from sales to retaining assets for sustainable income. g Gulf Property

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VOL. 9, NO. 9 JUNE, 2017

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Real estate exempted from VAT for three years!

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Expo 2020 to be the ‘greatest in history’

COVER INTERVIEW Adel Al Breiki, Founder of Xanadu Real Estate

SPECIAL FEATURES Tourism spending hits Dh110 billion in the UAE in 2016 Demand for spacesaving furniture grows in the UAE Aviation projects value hits Dh210 billion in the GCC

Adel Al Breiki:

The man who finishes unfinished projects