Gulf Property September Issue by Gulf Property

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The regionâ&#x20AC;&#x2122;s premier monthly for lifestyle, real estate and construction

VOL. 10, NO. 12 SEPTEMBER 2018

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GULF PROPERTY GULF PROPERTY SEPTEMBER 2018 SEPTEMBER 2018

Slowdown in real estate weighs on half-year results EXCLUSIVE INTERVIEW COVER STORY Talal Al Gaddah, CEO MAG Lifestyle Development

Tom Rhodes, Cityscape Global Vassilis Bazinis, Regus Gary Dalton, Zoom Properties

Talal Al Gaddah The son also rises! The son also rises!

Energised for Tomorrow

Real Estate Runs on Yardi Drive retail value with cloud-based, integrated Software We understand exceptional commercial & retail property management. Maximise shopping centre revenue with connected retail management solutions. + 971-4-4322679 Yardi.com/ae

DRIVING REAL ESTATE INVESTME ENT OPPORTUNITIE ES ETS GLOBALL LY ACROSS PROPERTY MARKE

THE HO THE OM ME O ME OF F REA REA EAL ES ES ST TA T A ATE AT TE IN TE NVESTMENT EST ES TMENT MEN MEN ENT NT City Cit Ci tyscape tysc ty ap a pe e Glo G obal o al has ha h ass gr g own w to bec b come om me the the larg larges la arg rgest rges esstt and a d most mo m os trust u ed d annu annu ua ual u l meetin meettin mee ing p po point oin oin n ntt for or the th pr property rop operty ope operty e ty mark mar m ark ar ett to s im stimulat m late cr cross-bor o s b bo der de err in investment, estm me m en e nt, n t p prom mot mo mot o e tr t anspar a ssp an parency par en e enc ncy nc n y in th the he e mark marrk ke ett an et, n pr nd propel op pe pel ell the the e industry indu in indu dustry dust d u try acr ust a ros ac oss ss the tth h he e globe. g globe glo glob lob llo o ob be e.. The The ev ve en en ent ntt attr t acts a s a dynamicc list is of in nv ve e tors, est rs hom hom m me mebuy ebuy eb bu b uyers, uy errsss,, de ers e dev ve elo el e elop elopers, lop op pers errrss, e government ntt authorities, a orit ess and author and real a al estat al estat tate p prrofessionals. ofe of esssi ession es ssionals onal on ona onals na alss a

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EDITORIAL

Property prices become lucrative

The current real estate prices make them attractive for new home buyers. However, mass migration from rented homes to freehold ownership is yet to be felt in the market in a big way

rices of properties in Dubai have become very attractive for new home buyers as developers continue to sweeten their offers with discounts, waive of registration fees as well as offering five to 10 year payment plan so that the end-users could move into freehold homes. Many developers have gone out of their ways to even waive the property registration fees while others have offered special summer discounts on top of the lowered price.

All these are good news for the consumers who had for a long time being priced out and have remained on the sidelines while the race for ultra luxury properties continue to dominate the market for a long time. However, time has changed for the better – at least for them. Now, suddenly it has not only become a buyer’s market, but also it has become their market – people in the mid-income bracket – could not dare to dream of owning a home in Dubai.

Although the middle income families are yet to jump in the property bandwagon, the latest success of the sell-out launch of Danube Properties’ Dh550 million Lawnz has demonstrated a very important reality – if the location, price, quality and developer’s credibility remains good, there is no shortage of buyers.

Lawnz, by Danube was sold out in a few days and buyers were seen queueing up to lay their hands on the apartments. It offers studios from Dh290,000, one-bedroom apartment from Dh499,000 and two-bedroom apartment for Dh699,000! The success of Lawnz should be an eyeopener for other developers.

We expect the price of a studio to go down to Dh250,000 – the level of pricing we had seen in 2004-05, before things had started to go out of hand in 2007-08. – T. Akhtar

CONTENTS

COVERSTORY

UAE cuts business licensing costs to help SMEs Property prices and rents in Northern Emirates fall Half-yearly profit fall reflects decline in real estate market Emaar profit up to Dh3.3bn Aldar profit down to Dh1.1bn

EXECUTIVEOPINION

Jihad Azour/IMF 31 Mohanad Alqadiya/Harbor 33 Dhiren Gupta/Mortgage 4C 35

54 56 58

CITYSCAPE

FOCALPOINT

Dubai Land deals fall 15.9% to Dh111 billion in H1 2018 36

COVERSTORY

MAG Lifestyle Development’s portfolio exceeds Dh25 bn 40

MARKETUPDATE

Rents in Dubai nosedive

INTERVIEW

Workspace revolution is on 60 Digital disruption to eliminate brokerage business 64 Cityscape to allow sales 70

PROJECTUPDATE

Danube sells out Lawnz Warner Bros come to UAE

66 76

Realty Bytes Spotlight

10 78

REGULARFEATURES GULF PROPERTY

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

EDITORIAL

EDITOR T. Akhtar editor@panasian1.com

STAFF WRITER Shayaree Islam s.islam@panasian1.com

EDITORIAL COORDINATOR Zeba Malik z.malik@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

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Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC

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CIRCULATION 20,000 copies

Gulf Property

REALTYBYTES

he headline seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index (PMI) – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy – fell to 55.8 in July, from 57.1 in June and the lowest reading in three months. “The figure remained well above the neutral 50.0 mark, however, signaling a sharp improvement in business conditions across the non-oil private sector in July. The latest expansion was broadly in line with the average seen in the year-to-date,” it said. “Although output growth eased to a three-month low in July’s survey, the pace of expansion was sharp overall and well above the series’ historical average. Businesses in the non-oil private sector frequently noted that strong demand for goods and services led to higher output requirements.” New orders from abroad increased at the sharpest pace in three years during July. Many firms linked the improvement to a stronger demand climate in neighbouring GCC countries and Europe. In terms of overall new orders, growth eased to a four-month low, but remained solid in the context of historical data. Reflecting robust inflows of new orders, backlogs of work increased at a steep pace during July. However, the rate of growth was slower than in June. Despite higher levels of work outstanding, firms hired additional staff at the slowest pace in over two years. On the price front, the rate of input cost inflation re-

Gulf Property

UAE non-oil growth slows down: PMI People travelling on holidays. UAE non-oil private sector growth slows down, says Emirates NBD Purchasing Managers’ Index

mained muted and below the historical average. Purchase price inflation accelerated fractionally in July, whilst staff cost inflation softened to a 14 month low. Promotional activity and intense competitive pressures across the UAE’s non-oil private sector led firms to reduce their selling prices for the third month running in July. The rate of decrease was moderate overall, although faster than that recorded in June. Business confidence eased slightly from the surveyrecord high recorded in June. That said, the degree of optimism remained strong overall and the fourth-highest in the series’ six-year history. Khatija Haque, Head of MENA Research at Emirates NBD, said: “The Emirates NBD PMI for the UAE declined to 55.8 in July from 57.1 in June, signalling the slowest rate of growth in the

55.8

UAE Purchasing Managers’ Index reached in July 2018

non-oil private sector in three months. Both output and new work, were softer than in June. Notably, new export orders increased at the sharpest rate in three years, as firms reported stronger demand from other GCC countries and Europe. “Employment was broadly unchanged in July, with the index barely above the neutral level at 50.2. Year-to-

date, the employment index averaged 50.8, compared with 51.2 in the same period last year, and indicating even weaker job growth in the UAE’s non-oil private sector this year relative to 2017. Backlogs of work increased sharply again as a result of the strong rise in new orders (and flat employment), although the rate of increase in backlogs was softer than in June. “Purchasing activity accelerated slightly in July but the actual stock of pre-production inventories was unchanged from June, which suggests that firms may be becoming more efficient in their inventory management. Overall, businesses remain very optimistic about the coming year, with more than 60% of respondents expecting their output to be higher in year’s time. However, this is lower than the May and June surveys.” g

Dubai private sector growth slows down

Dubai’s non-oil growth slowed down in July 2018, says Emirates NBD Economy Tracker

usiness conditions in Dubai’s private sector improved at a slowest rate in three months, with growth moderating in each of the three broad sectors surveyed, according to Emirates NBD Dubai Economy Tracker Index. Nonetheless, output continued to improve, stimulated by a further expansion in new orders. Business confidence towards future growth prospects remained strongly positive, but also softened to a three-month low. “Output growth eases to three-month low, but remains solid overall while, the report finds that firms continue to stimulate client demand through price discounting. “Job creation ticks up, led by the construction sector, but remains relatively subdued by historical standards,” it said. The seasonally adjusted Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to

give an accurate overview of operating conditions in the non-oil private sector economy – registered 54.9 in July, down from 56.0 in June. The figure indicated a slower expansion in Dubai’s private sector that was below the long-run average. At the sector level, construction companies reported the sharpest growth in July (56.9), followed by wholesale & retail (56.3) and travel & tourism (54.5) respectively. However, all three sectors posted softer growth in July relative to June. A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change. The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel and tourism, wholesale and retail and construction. Khatija Haque, Head of MENA Research at Emirates NBD, said: “While firms re-

ported higher output and new orders in July, this was on the back of extensive price discounting, with average selling prices falling at the sharpest rate since January 2017. At the same time, input costs continued to rise, further squeezing margins. Against this background, it is unsurprising that employment growth so far this year has been the softest on record.” Business activity increased once again in July, although the rate of expansion eased to a three-month low. Companies that reported higher output frequently linked the increase to stronger inflows of new business. Reflecting increased output requirements, firms hired additional staff in Dubai’s private sector. The rate of growth accelerated in July, but remained weak in the context of historical data. Promotional activity led to the greatest fall in selling prices across the private sector since January 2017. g

REALTYBYTES

RERA, CBD inks OA escrow deal

he Real Estate Regulatory Agency at Dubai Land Department, signed a partnership agreement with Commercial Bank of Dubai (CBD). The agreement focuses on offering escrow account management services to Owners’ Association (OA) communities in Dubai. The agreement was signed by Marwan Ahmad Bin Ghalita, Chief Executive Officer of RERA and Dr Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai. Through this agreement, CBD, under the supervision of RERA, will open escrow accounts for Owners’ Association to help regulate the relations and service agreements with property owners. Marwan Bin Ghalita, said, "The Bank will supervise the owners’ contributions that are deposited and withdrawn in accordance with RERA regulations. We are always looking to form strong partnerships with leading banks to ensure a seamless process for our customers, consolidating Dubai as an ideal destination for real estate investment.” Dr Bernd van Linder, CEO of CBD, said “The partnership also reinforces our commitment to support government-backed initiatives and to improve its real estate industry.” CBD is a leading cash management bank in the UAE. g Gulf Property

REALTYBYTES

Dubai Chamber waives fines

he Dubai Chamber of Commerce and Industry said, it will waive late membership fees in an effort to reduce the cost of doing business in Dubai and enhance the competitiveness of the emirate’s private sector. The move falls in line with the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which were announced earlier this year and aim to stimulate economic growth in Dubai. The announcement comes after Dubai Chamber unveiled two major initiatives in recent months to support Dubai’s new economic stimulus plans. Among the new initiatives are plans to coordinate with other government entities to review services and fees with the aim of reducing the cost of doing business in the emirate. In addition, an advisory board represented by leading international companies has been established by the Chamber to shape the regulatory landscape. Hamad Buamim, President and CEO of Dubai Chamber, said, "By introducing these measures, the Chamber is providing companies with additional flexibility and support, enabling them to benefit from their membership at no additional cost. We expect this move to improve ease of doing business in Dubai.” g

Gulf Property

UAE residents vie for 2nd passport

n increasing number of UAE expatriates are applying for citizenship through business and investment immigration for a second passport that allows them visa-free travel to more than 120 countries across the world, according to reports. The UAE, which hosts more than 88 percent of its population or 8 million expatriates, is an ideal hub for second citizenship and residency prospects for countries in Europe, America, Canada, the Caribbean and Australia – who attract wealthy investors and skilled immigrants through business and investment immigration programmes offered to boost their economic growth. The UAE residents from Syria, Yemen, Lebanon, Saudi Arabia, Bahrain, Kuwait, Oman, India and Pakistan have increased demand for Caribbean citizenship to 51 per cent, especially to St.

Kitts and Navis, Dominica, Grenada, Antigua & Barbuda and St. Lucia – the highest in the world. UAE residents will be able to network with international immigration advisors at the 10th edition of the International Real Estate & Investment Show (IREIS 2018), that targets investors and consumers rather than trade visitors, will feature a dedicated pavilion to help visitors aspiring for dual citizenship, residency and international investment opportunities gain the right advice and information from leading immigration experts. Residency and Citizenship Expo at IREIS 2018 offers superior expertise in the complex decision-making necessary to gain the right citizenship and residency option. Seasoned consultants will assist on the complex decision-making, documentation and application process for a second citizenship and residency options across re-

gions and countries including Canada, Cyprus, St. Kitts & Nevis, Dominica, Grenada, Antigua & Barbuda and St. Lucia Spain, Italy, Singapore, Malaysia, Portugal, New Zealand, Thailand, the USA and the UK, among others. Antoine Georges, Managing Director at DOME Exhibitions, organisers of IREIS 2018 said: “As the world is becoming a global community due to increasing digitalization, economic mergers and protectionism, we thought giving added value to our exhibitors, investors and visitors. IRIES 2018 is going to be a bigger and more valuable experience for our partners. The 2018 edition of IREIS is expected to draw more than 125 exhibitors from 25 countries, as well as over 12,000 investors, end-users, developers, and real estate brokers. IREIS 2018 will host an international conference to discuss various citizenship opportunities. g

Investor confidence high in Dubai: DED Department of Economic Development has recorded 24,489 transactions in a month

REALTYBYTES At A Glance 1,651

new trade licenses were issued by DED in July 2018

24,489

number of transactions recorded at the DED in July

17.3%

he Department of Economic Development, the business licensing arm of Dubai Government, said, investor confidence in the emirate remains high due to continued transactions and trade license renewal and new licensing activities. “Investor confidence in Dubai as a competitive global hub and the business development potential in the emirate remained robust through the month of July 2018 with the Department of Economic Development (DED) witnessing 24,489 transactions related to business licensing and registration,” a latest report said. A total of 1,651 licenses were issued during the month in addition to 12,532 License Renewals and 2,175 Initial Approvals, according to data recorded on the ‘Business Map’ digital platform of DED’s Business Registration and Licensing (BRL) sector.

of the new trade licenses were in the construction sector in Dubai

12,532 trade trade licenses were renewed in July 2018

The Business Map’ tracks business registration and licensing in DED and seeks to reflect the economic realities in Dubai by providing vital data on each license category, including their numbers and distribution as well as investor trends on a monthly basis. Overall business registration and licensing activity and its distribution across sectors and areas in the emirate reaffirms improved in-

vestor confidence in the expansionary spending policies and growth potential in Dubai. Among the total transactions recorded in July 2018, 3,128 were related to Trade Name Reservation and 1,268 to Commercial Permits. Auto Renewal transactions amounted to 5,918, Instant Licenses to 101, and 102 transactions were related eTrader licenses. BRL activity in July 2018 reflected momentum across all sectors as new licenses covered the Commercial (60.5%), Professional (36.8%), Tourism (1.4%) and Industrial (1.3%) categories. The outsourced service centres of DED retained their edge in providing competitive services to BRL customers, accounting for 67 percent of the total transactions completed in July 2018. The region-wise distribution of new licenses shows Bur Dubai accounted for the lion's

share with 798 of the licenses, Deira had 712, New Dubai 133 and Hatta, eight. Among the top 10 sub-regions, Burj Khalifa had 14 percent, New Dubai 8 percent, Al Marar 5.9 percent, Port Saeed 5.8 percent, Dubai World Trade Centre 1 had 4.6 percent, Naif 4 percent, Al Garhoud 3.3 percent, Al Karama 2.8 percent, Al Muraqabat 2.1 percent and Hor Al Anz, 2.1 percent. Construction sector accounted for 17.3 percent of the new licenses and Community and personal services for 13.6 percent, followed by Hotels group (7%), Transport, storage and communications (3.5%), Manufacturing, (2.9%), Financial brokerage (2.5%), Health, labour and education (0.9%), Agriculture (0.4%), and Mining (0.1%). Indians, Pakistanis, Egyptians, Chinese, British, Saudis, Jordanians, Syrians, and Kuwaitis were the top nine nationalities of BRL customers in that order during July 2018. g Gulf Property

REALTYBYTES

Dubai Investments H1 profit hits Dh491 million

ubai Investments PJSC, the leading diversified inv e s t m e n t company, said it’s net profit grew marginally 2.29 percent to Dh491 million in the six months of 2018, an increase of Dh11 million compared to Dh480 million for the same period last year. Company’s total assets grew to Dh19.04 billion compared to Dh17.0 billion as at December 31, 2017 and the total income during the period was Dh1.58 billion compared to Dh1.28 billion for the same period last year. The annualized return on equity for the period was 8.34 percent. Khalid Bin Kalban, Managing Director and CEO of Dubai Investments, said: “Dubai Investments registered steady growth in its financial results during the first half of 2018. The increase in total income, net profit and total assets is quite encouraging given the challenging economic environment and has been driven mainly by acquisition of Emicool. Dubai Investments is working on development of several real estate projects such as Mirdif Hills, Green Community DIP – Phase 3 and Fujairah Business Centre. Further, the company is progressing towards diversification and proposals related to education, healthcare, leisure and financial services are being evaluated.” g

Gulf Property

Leisure projects to boost Hatta tourism Mountain Lodge at Hatta to open this quarter. Meraas is building 20 of them

eraas, a Dubaibased publicsector asset developer, said, it will develop a number of projects aimed at boosting the tourism sector in Hatta and advancing the social and economic development of the area. The move aligns with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which include the 10year Hatta Comprehensive Development Plan that he officially announced in 2016. Positioning Hatta as a destination of eco-tourism in the region, the first phase is scheduled to open in the fourth quarter of 2018. Projects are based on strategic plans managed by Meraas, with both design and construction adhering to the highest global sustainability standards. Building materials were selected to complement and enhance the natu-

ral environment without compromising the geological integrity of the area or negatively impacting the surrounding communities and ecosystems. Abdulla Al Habbai, Group Chairman at Meraas, said: “Hatta is known for its beautiful scenery – mountains, lakes, wadis, farms, dams and fresh air and the development of eco-tourism demonstrates our commitment at Meraas to implementing the vision of our wise leadership by creating economic opportunities for young people, local businesses and entrepreneurs in Hatta. Enhancing the integration of leisure, hospitality, tourism and transportation is key to transforming this highly popular destination into a world-class area that offers families a diverse leisure experience.” The first addition to Hatta’s tourism landscape will be a giant ‘Hatta’ sign located at an elevation of around 450 metres in the Hajar Moun-

tains that provide the picturesque town with a stunning backdrop and serve as the gateway to exploring the area. An adventure centre and an interactive tourism information hub will also open, reinforcing the links between visitors, tour guides and the people of Hatta. The first phase of the development also includes a mountain lodge with 20 rooms that will offer a tranquil retreat filled with views of the landscape and opportunities to relax. Visitors will also have the chance to camp at a first-ofits-kind trailers hotel on the banks of the Hatta dam. The developments are located away from residential areas to preserve the privacy and lifestyle of the people of Hatta. The second phase of the project comprises a variety of additional hospitality and retail facilities that are set to create further touchpoints between local and international tourists and the rich Emirati culture. g

REALTYBYTES

The UAE is the biggest aviation industry in the Middle East

UAE invests Dh85bn in airport projects 96.5 T he UAE is investing more than Dh85 billion in the aviation infrastructure that will help its four national carriers with a combined fleet size of 502 aircraft to serve more than 96.5 million passengers annually These include Dh30 billion ($8 billion) in developing Al Maktoum International Airport, Dh28 billion ($7.6 billion) expansion of the Phase IV of Dubai International Airport, Dh25 billion ($6.8 billion) re-development and expansion of Abu Dhabi International Airport – many of which are supported by the banks and financial institutions. In addition Sharjah International Airport is also undergoing a Dh1.5 billion investment in expansion of its terminal. The UAE has 14 airports, air strips and airfields served by 113 airlines with a total annual take-off and landings exceeding 540,000. In addition to these, the four

million passengers were carried by 4 UAE carriers in 2017

UAE airlines are also investing billions of dollars in acquiring the latest aircraft models that will help the UAE economy to grow. All these developments need funding and the financial institutions and investors are also expanding their capabilities to support the economic growth. Saif Mohammed Al Suwaidi, Director-General of the UAE General Civil Aviation Authority (GCAA), said, “Our airlines and airports

have been ranking consistently as among the best internationally. On compliance level, UAE ranked as a top member state of the International Civil Aviation Organisation. “We anticipate accommodating 118 million passengers by 2023 at the Dubai International Airport, and 120 million passengers upon completion of phase 2 of the Dubai World Central, and 200 million passengers upon its completion, all in ultra-modern infrastructures that match, if not surpass, the best in the world.” Emirates Airline carried 58.5 million passengers in 2017-18 financial year, while Etihad Airways carried 18.6 million, FlyDubai carried 10.9 million and Air Arabia carried 8.5 million passengers. A three-day international summit of the aviation leaders – Global Investment in Aviation Summit (GIAS) – will be held from January 27-29, 2019, to assess the aviation

finance needs of the region’s aviation industry. The summit is held at a time when the region’s aviation industry rides high on efficiency and performance. Emirates Group posted a profit of Dh4.1 billion (US$1.1 billion) for the financial year ended 31 March 2018, up 67 percent from the previous year. The combined fleet size of the four UAE airlines reached 502, including Emirates fleet of 268, Etihad Airways’ 120, FlyDubai’s 61 and Air Arabia’s 53. The UAE airlines add between 4-5 aircraft per month and the total combined fleet size of the UAE’s four airlines would cross 525 by the end of 2018. The UAE airlines have more than 300 more aircraft on order to join their fleets. “The UAE is the largest airline market and aviation hub in the Middle East and North Africa and it is still the most vibrant market where the airlines are adding new aircraft every month to their fleet,” Saif Al Suwaidi said. “Dubai South – the largest aviation hub – is also developing aviation, airline and aviation-related industries and institutions, that will help the region develop new technical and research capabilities that will help the global aviation industry. “With the growing industry that also needs continuous investment, it is befitting for the UAE to host the GIAS – where industry leaders could network, assess and do business deals for developing new capabilities for the aviation industry.” Dubai Airshow – the region’s largest aviation exhibition – last year saw $114 billion worth of orders signed, including $27 billion orders by FlyDubai for 225 Boeing 737 Max aircraft and Emirates Airline’s $15.1 billion for 40 Boeing B787-10. g Gulf Property

REALTYBYTES

Tabreed’s first half profit up 10% to Dh212 m

ational Central Cooling Company (Tabreed), the leading regional district cooling utility company, reported a 10 percent growth in its net profits to Dh211.9 million in first half of 2018, up from Dh192.7 million recorded in the first half of 2017. The company’s revenue increased by 2 per cent to Dh650.7 million, compared to Dh639.2 million generated in the first half of 2017 while chilled water revenue increased 2 per cent to Dh617.3 million in the same period, up from Dh602.3 million recorded last year. Earnings before interest, tax, debt and amortisation increased by 6 per cent to Dh326.1 million, up from Dh308 million last year. Its share of results of associates and joint ventures decreased by 26 per cent to Dh46 million, down from Dh62.4 million, recorded in the first half of last year. Total Group capacity across the GCC increased to 1,113,906 Refrigeration Tons (RT), with 21,588 RT of new customer connections added in the first half of the year . Contributed to saving 600 million kilowatt/hour across the GCC – enough energy to power 20,000 homes every year. These power savings prevented the release of 300,000 tons of CO2 – the equivalent of eliminating the emissions of 60,000 vehicles annually. g

Gulf Property

Emaar delivers Burj Vista residences

maar Properties has delivered its latest residential project, Burj Vista – aptly named as the project faces Burj Khalifa – the world’s tallest tower. Launched in 2013, the stunningly sculpted Burj Vista is designed to offer a theatrical experience of Burj Khalifa, the world’s tallest building. Burj Vista consists of two 20 and 65 storey towers located on Sheikh Mohammed Bin Rashid Boulevard, offering 128 and 538 luxury apartments in one, two, and three-bedroom layouts. Residents in Burj Vista are in walking distance of The Dubai Mall, the world’s largest shopping and entertainment destination, and conveniently close to the upcoming Opera District, and the central business district of Dubai. The towers are linked to the pedestrian link that connects the Dubai Metro station with Downtown Dubai. The boulevard level of the towers will feature sev-

636

Burj Vista apartments have been sold out by Emaar

eral high-end retail outlets and restaurants. Burj Vista’s architecture is specially designed to offer a theatrical experience of Burj Khalifa. Stunningly sculpted, the Burj Vista is differentiated by its luxury residences with lavish terraces that open to uninterrupted views of Burj Khalifa, the city’s skyline, The Dubai Fountain and the wider Downtown Dubai neighbourhood, as well as views of the Arabian Sea from the backside terraces. From its unique exterior aspect to the sublime views of Downtown Dubai and its

proximity to The Opera District, a home in Burj Vista brings the height of luxury and culture to one of the city’s most livable and sought-after locations. The residences have windows with 45-degree inclination – a part of the unique architecture – as well as distinctive indoor experiences. Large balconies with full-height glazed sliding doors help maximise the views. The gateway to the one of the world’s finest boulevards, the Sheikh Mohammed bin Rashid Boulevard – the 3.5 kilometre thoroughfare that winds through Downtown Dubai – Burj Vista’s very-design concept was to offer residents the best of two unmatched experiences – views of Burj Khalifa and living in the heart of where all the action is. The spacious front terraces of Burj Vista homes wrap around in a distinct staggered honeycomb pattern that makes the project a modern marvel in urban architecture. g

Emaar unveils Dh10bn retail hub Dubai Square will play a central role in driving retail sales in Dubai, expected to be more than Dh160 billion by 2021 and serving an estimated 20 million visitors by 2020

tate-owned Dubai Holding and Emaar Properties launched Dubai Square, a new retail metropolis in Dubai Creek Harbour that draws on next-generation technology. Dubai Square will be linked directly to the Dubai Creek Tower and an attached plaza through an underground extension. The plaza is a clockshaped haven of landscaping, palm trees and water features sprawling across half a kilometer of land, containing some 2.6 million square meters of space. The project is expected to cost Dh10 billion, according to Mohammad Alabbar, Chairman of Emaar Properties. Half of this will be funded by debt, while the other half will be funded by Emaar capital, he added. Blurring the boundaries of

Dh10 b cost of Dubai cost of Dubai Square

online and in-mall shopping, integrating indoor and outdoor spaces, and delivering varying social experiences, the all-new Dubai Square is designed for the new era of customers: digital, connected and tech-savvy. The project is spread across three levels. Skylights, glazed roofs and shopfront windows allow natural light into the facility. Parks, patches of green and lush landscaping will provide a natural balance to state-ofthe-art facilities. Special LED technology is set to drive im-

pactful and interactive backdrops and delight customers throughout their journey. Championing “omnichannel retailing”, the retail development will offer customers a seamless blend of shopping via desktop, mobile or at a retail store. Digital conveniences will include custom-designed mobile apps, quick checkout solutions, search and barcodescanning applications, radio-frequency identification technology, mobile payments and click-and-collect services. In addition, Dubai Square’s ground floor features a ground-breaking events arena and a broad spectrum of event spaces on streets and alleys. The first floor has a magnificent four-lane boulevard lined with luxury retail, dining and leisure outlets. Additionally, an Art District,

REALTYBYTES serving as a crossroads for artists and art lovers from around the world will be implemented on the plot. The square will be home to the Middle East’s largestof-its-kind Chinatown, offering a wide range of retail attractions on the league of similar precincts globally. The Chinatown draws on the presence of over 200,000 Chinese nationals living in the UAE and the thousands of tourists arriving annually to the country. With Dubai being the fourth most-visited destination in the world, the development will also be the closest mega-retail district to millions of visitors passing through Dubai International Airport. In addition to serving the over-3-million population of Dubai, and over 13 million unique transit passengers to Dubai, it will also serve over 2.5 billion people who are up to 4 hours’ flying time from Dubai. It will play a central role in driving retail sales in Dubai, expected to be over $43.8 billion (Dh160 billion) by 2021, and serving the estimated 20 million tourists to the city by 2020. With over 7.3 million square meters of residential space, nearly 940,000 square meters of retail precincts, 300,000 square meters of commercial space, over 66,000 square meters of cultural space, 700,000 square meters of parks and open spaces, and 24 hotels with 5,800 rooms, the mega-development will serve as a strong economic catalyst for Dubai. When completed, Dubai Creek Harbour will be home to more than 200,000 people, as well as a tourism, retail and hospitality centre for the city. g Gulf Property

REALTYBYTES

Amanat buys Middlesex University for Dh369 m

manat Holdings said, it has acquired 100 percent stake in Middlesex University Dubai, one of the region's most dynamic and forward-thinking institutions, for a consideration of Dh369 million with an additional potential earnout of up to Dh73 million. Established in 2005, Middlesex University Dubai is the first overseas campus of the internationally renowned Middlesex University in London. Middlesex University Dubai has a diverse student body of approximately 3,000 students from over 100 nationalities. With the completion of this investment, Amanat has constructed a diverse portfolio of leading and differentiated businesses. The portfolio today includes three education assets in the United Arab Emirates, two healthcare assets in the Kingdom of Saudi Arabia and another real estate investment. Dr. Shamsheer Vayalil, Vice Chairman and Managing Director of Amanat, said: “Middlesex University Dubai is Amanat’s third investment in 2018, with Dh1.1 billion of capital deployed so far this year. Following Amanat’s investment in Abu Dhabi University Holding Company, our higher education portfolio extends across Dubai and Abu Dhabi and covers a wide range of programs.” g

Gulf Property

DP reduces emission at Executive Towers Dubai Properties and its partners have retrofitted the Executive Towers to make them greener

ubai Properties said, it has completed the installment of energy-saving systems in its communities that will offset an estimated 1,450 tonnes of CO2 emissions annually. The master developer enlisted Honeywell and Signify to carry out energy efficiency upgrades at its Business Bay Executive Towers development as it continues its drive towards enhancing the sustainability of its communities. The enhancements include the upgrade of building systems and facilities in 11 towers, which will lead to 3.3 million KW/hr of energy savings annually, an approximate saving of Dh1.5 million in energy bills. The resulting CO2 emissions offset is equivalent to removing 310 cars from the road for one year or planting 336 trees. Raed Al Nuaimi, Group Chief Executive Officer at

Dubai Properties, said: “We are deeply committed to creating sustainable and energy efficient communities, and this is yet another step in the right direction. In addition to facility upgrades such as this, we continue to develop large areas of greenery in our communities, as highlighted recently by the Middle East’s largest living Green Wall at Dubai Wharf. “Our aim is to contribute to national efforts towards making Dubai an environmentally-friendly city and support initiatives that further encourage building energy efficiency in line with the goals of the Dubai Integrated Energy Strategy,” he added. In keeping with Dubai’s efforts to double energy efficiency by 2030, Dubai Properties collaborated with Signify to retro-fit the existing lighting in 11 residential buildings and corresponding parking area to LED lights, a total of 16,000 light points, ultimately resulting in improved

comfort levels for residents and visitors to the community. Goktug Gur, President and CEO of Signify Middle East, Turkey and Pakistan, commented “Retrofitting buildings to make them more energy efficient can have a huge beneficial impact on the environment, additionally the financial impact can also be vast.” In collaboration with Honeywell, an upgraded and fully-digital building management system (BMS), has been implemented to monitor and control mechanical and electrical utilities across building systems and facilities. Integrating fan coil units (FCUs) into the BMS helps provide visibility into electricity consumption, and thereby achieves a reduction in electricity bills. The initiative is another step from Dubai Properties in its efforts to develop green, sustainable and energy efficient communities. g

Residents have started to move in their freehold homes at West Yas area of Yas Island

Aldar starts delivering 300 West Yas homes

ldar Properties said, it has begun the handover process for the first 300 homes at West Yas, the island’s first villa community. The community retail plaza, which includes the first Spinneys supermarket on Yas Island, is now open. Main construction work is progressing well on Yas Island’s two waterfront apartment communities with concrete and waterproofing well underway at Water’s Edge and cement and blockwork advancing across all five apartment buildings and beach houses at Mayan. At Yas Acres, Aldar’s flagship golf and waterfront development, construction at all 652 villas launched to date are in various stages of completion while infrastructure works including irrigation, gas, potable water pipes, are making good progress. On Reem Island, Meera is nearing completion ahead of the scheduled handover later

this year with all cladding and glazing work now substantially complete. The elevators are in the testing phase, while all internal carpentry and ironmongery is in advanced stages of fixing. At The Bridges, a six building development launched in April 2017, the first phase of the development has advanced to the ground floor with the second phase progressing well following the completion of piling work. Mamsha Al Saadiyat, a 1.4 kilometres mixed-use master-planned project located at the Saadiyat Cultural District, is on track to be completed and handed over next year with cladding, glazing work and promenade construction all underway. The retail units are in final stages and are being prepared for leasing with show apartments ready over the upcoming quarter. Upon completion, Mamsha Al Saadiyat, meaning

‘Saadiyat Walk’, will offer luxurious beach-front residences with access to a diverse mix of retail, dining and entertainment offerings. Engineering and structural work is now substantially complete at Jawaher Saadiyat, an exclusive gated community on Saadiyat Island, with finishing and MEP works making good progress. Jawaher Saadiyat comprises 83 luxury four-bedroom townhouses and four to six-bedroom villas, situated in a prime location overlooking the region’s first championship beachfront golf course, Saadiyat Beach Golf Club. In Al Ain, expansion and renovation work at Al Jimi Mall is moving into its final stages with fit out works ongoing for a number of tenants, restaurants, and the eight screen VOX cinema. The opening of the new extension of the project will be later this year. g

REALTYBYTES

Dh168 m Hyati Residences delivered

urora, a UAEbased boutique real estate development company, has delivered milestone project Hyati Residence, a premium development offering affordable homes, which has had an overwhelming response in the market with only 7 units remaining. Featuring a total of 122 apartments and 20 townhouses, this one-of-a-kind development offers modern and bespoke living spaces while upholding a strict emphasis on quality, attention to detail, and affordability – all hallmarks of Aurora’s brand promise to its clients. Hyati Residence, valued at Dh168 million, offers distinction due to the bespoke refurbishments carried out by ECC Renovations, tailored in response to customer requests. The popularity of Hyati Residence and the continued interest in the development has led to the construction commencing in the second phase, Hyati Avenue, which will deliver a further 103 units and 19 townhouses, all targeted for completion in December 2019. Hyati Residence delivers high quality finishes. The double height reception is clad with Italian marble to provide a touch of splendour to the entrance. The water features in the courtyard combined with a beautiful olive tree, adding tranquillity to the courtyard. g Gulf Property

REALTYBYTES

RTA opens Dh400m Int’l City corridor

he first phase of a Dh400 million transport corridor that involves the construction of a number of overbridges towards Dragon Mart has recently been opened. The project, funded by Nakheel to the tune of Dh201 million, will improve traffic flow, reduce journey times and boost safety, the company said. The scheme includes road widening, new interchanges and signalised junctions in and around Dragon City, International City and Warsan Village, where more than 110,000 people live and over 200,000 visit each day. Nakheel Chairman, Ali Rashid Lootah, said: “We thank the RTA for its ongoing co-operation and support for transport links at our communities. “This project is essential to the overall, long term master plan at International City, bringing major benefits to existing residents, business owners and visitors in the short term, and paving the way for the future growth of the area.” Traffic studies by Nakheel show that more than 182,000 vehicles currently move in and out of the area every day – a figure which is set to grow as expansions at International City and Dragon Mart continue. Nakheel is also exploring further traffic enhancement schemes – such as increased parking – within International City. g

Gulf Property

Nakheel invests Dh15m in marinas The new marina will serve the residents of the waterfront community well

aster developer Nakheel is investing Dh15 million to increase boat mooring capacity on Palm Jumeirah, with two new marinas that will bring the total berths on the island to 600. New marinas are on the way at Nakheel’s Azure Residences waterfront apartment and restaurant complex on the island’s eastern trunk, and at The Pointe, Nakheel Malls’ upcoming seafront dining and shopping destination. Nakheel has appointed Majestic Marine Engineering LLC to build the new facilities, with Applied Technology & Management, Inc. (ATM) the appointed consultants. Due for completion this year, the marinas will accommodate a total of 44 boats and yachts up to 30 metres long, and will complement Nakheel’s two existing marinas on the island, at Palm Views East and West, which

are already at full capacity with 556 moorings. Nakheel is also building six marinas, at a cost of Dh165 million, at its new waterfront master development, Deira Islands. Between them, they will accommodate 614 boats and yachts up to 60 metres long. Nakheel is a world-leading developer and a major contributor to realising the vision of Dubai for the 21st century: to create a world class destination for living, business and tourism. Nakheel continues to deliver and enhance an iconic portfolio of innovative landmark projects in Dubai across the residential, retail, hospitality and leisure sectors. Its master developments include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al

Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba. Together, these span more than 15,000 hectares and currently provide homes for over 270,000 people. Nakheel has around 25,000 residential units under construction or in the pipeline. Nakheel’s retail arm, Nakheel Malls, is the Middle East’s largest retail developer, with 17.5 million square feet of leasable space across 19 projects, including largescale destination malls and souks, F&B destinations and community shopping centres. Assets include the world-famous Ibn Battuta Mall and Dragon Mart, both of which continue to undergo major expansions. Upcoming projects include Nakheel Mall on Palm Jumeirah; Deira Mall at Deira Islands; Al Khail Avenue at Jumeirah Village and more. g

Parkway gets Dh290 million Nakheel job

arkway International Contracting LLC won a Dh290.5 million contract from Nakheel and Centara Hotels and Resorts, a Thai hospitality chain, to build a 601-room beachfront resort at Dubai’s Deira Islands. The Dh500 million Centara Deira Islands Beach Resort Dubai will be Centara’s first in the UAE which is set to open in the fourth quarter of 2020. A new hospitality concept for Dubai, the resort will significantly boost the emirate’s four-star accommodation – the fastest-growing segment in 2017 – in line with government tourism goals. The contract, which takes Nakheel’s infrastructure and construction investment at Deira Islands to nearly Dh8.8 billion so far, was signed in Dubai at a ceremony led by Nakheel Chairman, Ali Rashid Lootah, and Suparat Chirathivat, Executive Vice President – Corporate Development, Central Group, par-

ent company of Centara Hotels and Resorts and one of Thailand’s most prominent family-owned conglomerate holding companies. Mobilisation will begin immediately. Nakheel Chairman Ali Rashid Lootah said: “Nakheel continues to play a pivotal role in shaping and diversifying Dubai’s tourism offering with a Dh27 billion hospitality and retail expansion that supports the government’s vision. Our joint venture with Centara underlines our commitment to working with trusted international brands to bring new hospitality concepts to Dubai, and today’s crucial milestone brings this exciting new resort ever closer. I look forward to delivering one of Dubai’s most sought-after destinations for travellers from all over the world.” Centara Hotels & Resorts is part of Central Group, which has interests in the merchandising, real estate, retailing, hospitality and

restaurant sectors. Centara entered the Middle East market with the opening of Centara Muscat Hotel last year, with imminent openings in other Gulf States. Located on a prime beachfront spot at Nakheel’s Deira Islands waterfront city, the resort will also be managed by Centara, whose growing portfolio already includes over 12,000 keys across 60 hotels and resorts in Asia, the Indian Ocean and the Middle East. The family-centric resort will feature a waterpark, multiple restaurants, kids’ club, spa, fitness centre and business facilities. The 601 seaview and city-facing rooms cover a range of categories, with an emphasis on familysized accommodation: 114 rooms are specifically for families, covering 450 sq ft. There are also rooms for people with special needs, standard rooms, deluxe rooms, suites and 1,200 sq ft duplexes. g

REALTYBYTES

Nakheel opens Dh60m retail pavilion at Badrah

akheel, the Dubai-based property developer, said, more than 800 households at Nakheel’s Badrah and Veneto communities in Dubai can look forward to a host of shops, cafes and amenities with the completion of a new, Dh60 million retail Pavilion. An 8,000 square feet Carrefour supermarket has already opened at the 72,000 square feet Pavilion, with another 26 outlets coming soon. There is also a car park for 270 vehicles. A mosque and sports facilities, including a pool and gym, are also in the pipeline at Badrah. Located at the heart of the Badrah community in Jebel Ali, the retail complex is the sixth in Nakheel’s growing collection of Pavilions, complementing others already in operation at Jumeirah Park, Jumeirah Islands, Discovery Gardens, International City and Al Furjan, where a second is under construction. The new Pavilion, operated by Nakheel Malls, will serve residents across the Badrah and Veneto communities, as well as people working at the nearby Jebel Ali Free Zone. Nakheel currently provide homes for more than 270,000 people spread across communities and has 25,000 residential units under construction or in the pipeline. g Gulf Property

REALTYBYTES Hilton to operate 3 hotels at Al Habtoor City

ilton will operate three hotels owned by Al Habtoor Group at the Al Habtoor City, that were previously been operated by Marriott International. All the three hotels will be operated under new brands, such as the The St Regis will be renamed Habtoor Palace – LXR Hotels and Resorts, The W Hotel will become the V Hotel – Curio Collection by Hotel, and The Westin will be renamed as Hilton Dubai Al Habtoor City. The hotels collectively offer nearly 1,600 rooms, 18 restaurants and lounges, 2 spas, 34 meeting and banqueting spaces and 3 ballrooms. Mohammad Al Habtoor, Vice Chairman and CEO of Al Habtoor Group, said, “This increases our partnership with Hilton from five hotels to eight hotels around the world.” He said that only four out of 1,020 employees were replaced and the transition has been smooth so far. The restaurants, bars and clubs within all three hotels will remain the same, and guests will be able to earn Hilton Honors points for their stays from August 2018 onwards. The Al Habtoor Group’s hospitality division includes 14 lifestyle destinations, 7 in the UAE and 7 abroad - in the UK, United States, Lebanon, Austria and Hungary. g

Gulf Property

GCC debt issuance to reach $53bn in 2018

CC sovereign debt issuance is expected to reach US$53 billion in 2018, surpassing last year’s US$49.5 billion, according to Fisch Asset Management, a Zurichbased asset manager. “GCC sovereign debt issuance has had another strong first half, with the two multi-tranche sovereign bond transactions of Saudi Arabia and Qatar leading issuance of over US$30 billion in the hard currency market,” Fisch Asset Management said in a report. “The Zurich-based asset manager believes that full-year issuance could surpass last year’s levels.” Saudi Arabia, which has issued $11 billion worth of debts in the first half of the year, is expected to issue $5 billion worth of debts by the end of the year. Qatar has already issued $12 billion worth of debt while Oman is expected to add $1 billion to the already issued $6.5 bil-

lion this year. During the second half, Kuwait is expected to issue $8 billion while Abu Dhabi might issue $5 billion, followed by Bahrain with $3 billion and Dubai with $1.5 billion. Philipp Good, CEO at Fisch Asset Management, said, “This robust performance by the GCC primary markets stands out as particularly strong when compared to the broader emerging market trend, where aggregate issuance is lagging significantly behind 2017 levels. The emerging market segment has faced considerable headwinds this year, which have included higher US interest rates, weaker local currencies, and intensified threats to free trade. These factors, among many, have negatively impacted the performance of external debt products. These negative returns have, in turn, impaired inflows. Nonetheless, we do expect performance and in-

flows across emerging markets to improve meaningfully in the second half of the year, and we expect the GCC to continue issuing at a brisk pace.” Fisch noted the potential inclusion of the GCC region in the JP Morgan EMBI Index, with official phase-in expected to commence in early 2019, to be particularly relevant. The contemplated combined index weighting for the region may be more than 12 percent, as compared with the current allocation of 0 percent. While the GCC region has, in the past, traded at a tighter credit spread relative to other emerging market peers, the sharp correction in oil prices in 2015 has reversed that relationship, with the GCC region trading with a higher risk premium versus the broader peer group. Fisch views current trading levels as attractive, particularly so given the recovery in energy prices. g

REALTYBYTES

EDB invests Dh1.75 bn in housing & SME finance

MBCC gets first Arada contract Construction work is expected to start soon with new contractors on board

rada, a joint venture between Sharjahbased Bassma Group and Saudi investor Khalid bin Alwaleed bin Talal, has awarded its first construction contract at its mega mixeduse project in Sharjah, Aljada for the development of the first four Areej Apartments blocks, based within Phase 1 of Aljada, to Modern Building Contracting Company (MBCC), a major contractor that has worked on sites throughout the UAE and Saudi Arabia. Mobilisation will take place onsite in the coming weeks, with full construction set to commence by the end of July. The buildings, which contain the first homes to be built within the 24 million square foot project, are scheduled to be completed by the end of 2019. In total, over 250 units will be built across the four Areej Apartments blocks.

Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, said: “This award is an important milestone for Aljada as we move into the development phase of this iconic and transformational project. We’re pleased to be partnering with Modern Building Contracting Company, and look forward to working closely with them to help deliver Aljada’s first homes.” The contract award is the latest announcement at Aljada, the Dh24 billion mixeduse lifestyle destination located on the last large plot of undeveloped land in the heart of Sharjah. In April, Arada announced the launch of East Village, a 15-building creative community targeting the younger generation, which constitutes Phase 2 of Aljada, while also confirming that enabling work onsite had begun. Also in April, Arada signed a management agreement with Emaar Hospitality Group to bring three

new hotels, Address Aljada Sharjah, Vida Aljada Sharjah and Rove Aljada to the megaproject. In March, Arada announced that Zaha Hadid Architects had won a global competition to design the Central Hub, the focal point of Aljada, and a new leisure and entertainment destination for the UAE. The first phase of the Central Hub will be completed by the end of this year. In January, the developer also confirmed that the global engineering giant Jacobs had won a key contract to design the infrastructure for the project. Launched in September 2017, Aljada has swiftly become Sharjah’s fastest-selling residential community. Delivered in phases starting in 2019, the entire project is expected to be completed by 2025. The Aljada masterplan is carefully designed as a sustainable community. g

mirates Development Bank (EDB), a public-sector lender, said it will spend Dh1.75 billion this year, including Dh1.25 billion in financing homes for the UAE nationals and a further Dh500 million in supporting small and medium enterprises (SMEs). EDB supports UAE nationals and companies that are majority owned by UAE nationals. EDB offers financing to small and medium-sized enterprises up to Dh30 million on favourable and deliberate risk-free terms, creating more job opportunities for Emiratis, moving towards a knowledge-based economy and supporting innovations, research and development. The bank is planning to launch a financing programme for start-ups offering financing loans from Dh2 million up to Dh5 million for start-ups owned by UAE nationals. This programme will support Emiratis with necessary credit to develop businesses. EDB’s home finance for UAE nationals reached Dh938 million involving 1,012 homes, which is expected to reach Dh1.25 billion by the end of 2018. “This compares to Dh150 million in 2016 and is seen as a result of the bank’s UAE Nationals Home Finance strategy which helps achieve the National Agenda in housing sector,” EDB said. g Gulf Property

REALTYBYTES

Dubai Holding to help renovate lowcost homes

ocial security beneficiaries and lowincome families in Dubai will get maintenance and renovation of their homes as part of an initiative – ‘Masaai Al Khair’ – by the Ministry of Community Development (MOCD), Dubai Holding and Dubai Municipality. As part of the Dh10 million worth initiative, phase one covers residences in Dubai’s Jumeirah, Hatta and Oud Al Mutaina areas. Khalid Al Malik, Chief Real Estate Officer at Dubai Holding, said: "We are pleased to collaborate with entities such as the Ministry of Community Development and Dubai Municipality to launch initiatives of this magnitude that serve to promote family stability among the nation’s low-income population. In line with our ongoing corporate social responsibility mandate, Dubai Holding has allocated Dh10 million to finance the renovation and maintenance of homes in several parts of Dubai." Nasser Ismail, Assistant Undersecretary of Social Welfare, at the Ministry of Community Development, said: “Initiatives like Masaai Al Khair promote greater community integration and facilitate partnerships between the UAE’s public and private sector entities. Such efforts strengthen the culture of social responsibility in the UAE society. g

Gulf Property

Radisson to operate Damac Hills hotel The 481-room hotel, set to open in 2019, offers an attractive investment opportunity

amac Properties has signed an agreement with Radisson Hotel Group (RHG) to develop the Radisson Hotel, Dubai Damac Hills, its first, Radisson-branded property located on a golf course, the Trump International Golf Club Dubai at Damac Hills. The 481-key hotel property comprises of one and twobedroom suites, and offers investors an opportunity to purchase units operated by the Radisson Hotel Group with strong returns of up to six percent guaranteed for the first three years, on their property investment. “Dubai’s increasing appeal as a global tourism destination gives direct and indirect investors access into the sector’s growth, as Dubai is set to continue welcoming increasing numbers of tourists well into 2020,” said Hussain Sajwani, Chairman of Damac. “Our partnership with Radisson Hotel Group offers

such investors a unique opportunity to invest with two globally recognized industry leaders, and own a part of this exclusive property.” Radisson Hotel, Dubai Damac Hills is already under construction and set to welcome its first guests in Q4 2019. The hotel will have two restaurants, modern leisure facilities comprising of a gym, spa, kids club and an outdoor swimming pool, as well as meeting space covering 600m. Elie Younes, Executive Vice President and Chief Development Officer, Radisson Hotel Group, said: “We have seen Dubai continue to strengthen its position as one of the world’s most visited cities and remain firmly on track to meet its tourism objective of attracting 20 million visitors per year by 2020. We are further delighted to introduce our new upscale Radisson brand to the region, with its own mark of Scandinavian inspired hospitality which we are confident will

appeal to the varied and evolving needs of international travelers visiting Dubai.” The Radisson Hotel, Dubai is located in the heart of Damac’s 42 million squarefoot master community, Damac Hills, a gated, premium residential community in the heart of Dubailand. With more than 1,000 families already calling Damac Hills their home, once completed the community will consist of over 4,000 luxury villas, 7,500 condominiums and over four million square feet of lush greenery. “Dubai is one of the most visited cities in the world, with visitors occupying 29.2 million room nights last year, up more than one million from the year before,” Sajwani says. “As Dubai prepares to welcome 20 million visitors leading up to Expo 2020 Dubai, there is no better time for investing into the Emirates’ burgeoning hospitality sector than now.” g

Damac delivers Heights at Marina

Damac Heights – a 94-storeyed super tall tower – adds to the growing list of the skyscrapers that define Dubai’s skyline. Dubai hosts 20 of the world’s tallest 100 towers

amac Properties has announced the handover of its Damac Heights tower which is also home to Damac Residenze with interiors by Fendi Casa. The 94 floor tower, located right at the promenade of Dubai Marina, features luxurious one, two, three, fourbedroom apartments and five-bedroom penthouses with expansive views of the Arabian Gulf. The top 40 floors of the tower, which overlook the Palm Jumeirah, make up Damac Residenze, its ultraluxury offering which features carefully crafted interiors by Fendi Casa. The common areas and interiors of the spacious apartments have been designed by Fendi Casa, creating a truly exquisite living experience for residents. The tower also features a separate

Fendi lobby with direct elevator access exclusively to Damac Residenze units. “Standing tall in the last area of platinum real estate in Dubai Marina, Damac Heights and Damac Residenze provides residents a slice of the very best of what this city has to offer,” said Ali Sajwani, General Manager of Operations at Damac Properties. “The handover of new homes is one of the most gratifying phases in real estate development. Welcoming customers into their new homes and watching the joy on their faces, when they first walk through their properties, reinforces our purpose at Damac.” Designed by Aedas, the award-winning architectural firm, Damac Heights offers an indulgent lifestyle featuring world-class amenities such as a theatre-grade media room, an infinity pool

overlooking the marina, separate health clubs for men and women, and a premium resident lounge perfect for hosting intimate and stylish gatherings. Residents of Damac Heights also become part of the premium living experience that this location offers. With easy access to workout areas, jogging and cyclefriendly routes, to world-class dining and shopping experiences, residents of the tower enjoy modern amenities and lively surroundings 365 days a year. The completion of the tower marks a busy period for Damac as it prepares to handover units at a number of its flagship projects in Dubai and the region, including homes in Damac Hills, Damac Towers by Paramount Hotels and Resorts Dubai, and Damac Tower Amman. g

REALTYBYTES

Damac launches Reva at Business Bay

amac Properties has released exclusive one and two-bedroom apartments at Rěva Heights in Dubai’s prestigious Business Bay. Offering exquisitely-designed spaces at affordable prices, Rěva Heights is home to luxury apartments from levels 17 to 26, which overlook the spectacular Dubai Canal. Situated in Damac’s latest Business Bay development, Rěva Residences, one-bedroom apartments in Rěva Heights will be available starting at just Dh801,000. “Aspiring homeowners and residents wish to live at a convenient address, without compromising on quality. Rěva Heights promises to live up to their expectations,” said Niall McLoughlin, Senior Vice President at Damac Properties. “Rěva Heights offers everything a modern, upwardly mobile executive or young couple could want, right in the heart of the city.” Located on the south ridge of Business Bay with panoramic views of Dubai Canal, Rěva Residences offers a luxurious lifestyle featuring state-of-the-art amenities, including separate wellness facilities for men and women and a temperature-controlled pool. The area offers a wealth of lush parks, as well as dining, entertainment and shopping hubs. g Gulf Property

REALTYBYTES

Azizi reduces home prices

zizi Developments said, it is offering competitive pricing along with attractive payment plans for its properties in Al Furjan and Palm Jumeirah. With these attractive payment plans, owning a home in Dubai is becoming a reality for many first time buyers and investors. Home buyers will be able to take advantage of the 30/70 payment plans with in-house mortgage services for five projects in Al Furjan – including Shaista Azizi, Samia Azizi, Azizi Star, Farishta Azizi and Azizi Plaza. In addition, Mina Azizi on the Palm Jumeirah is up for sale with a 25/75 payment plan with in-house mortgage services. Mirwais Azizi, Chairman of Azizi Group, said: "With our properties strategically located in prime locations such as Al Furjan and Palm Jumeirah, we remain focused on ensuring that our buyers and investors are rewarded with the best possible payment plans and attractive mortgage offers." Al Furjan remains one of Dubai’s fastest growing residential neighbourhoods, with easy access to Ibn Battuta Mall, Jebel Ali Free Zone, and the Expo 2020 site. All five of the upcoming Azizi properties in Al Furjan add a total of 1,744 units to the residential real estate market. The projects are set to be delivered by the end of 2018. Azizi Mina has 178 units and will also see a year-end delivery. g

Gulf Property

Construction picks up at Tilal Al Ghaf

ajid Al Futtaim, the leading developer, has completed major earthmoving work for the first phase of its new flagship Dubai community, Tilal Al Ghaf. The grading works cover around 1.1 million square metres of the three million square metre site. These include excavation for Lagoon Al Ghaf, the community’s landmark swimmable crystal lagoon, and The Hive retail and leisure area that will form the heart of Tilal Al Ghaf, and site preparation for around 550 villas. In addition, earthworks included formation of temporary access roads to the site, comprising the Sales Centre and Show Village. In total, earthworks have excavated around 1.6 million cubic metres of rock and soil from the site. Around one million cubic metres of that has been reused as fill, creating level ground so construction can begin.

Hawazen Esber, Chief Executive Officer of Communities at Majid Al Futtaim Properties, said: “As a developer, Majid Al Futtaim has established a proven track record of creating landmark destinations with the highest quality standards. The completion of Tilal Ghaf’s first phase earthworks ahead of schedule is a key milestone towards welcoming our first visitors and, ultimately, our first residents onsite to experience our mixed-use lifestyle offering.” The community Sales Centre, Show Village and parts of Lagoon Al Ghaf and The Hive are expected to be active onsite by the fourth quarter of 2018. Majid Al Futtaim launched Tilal Al Ghaf, its new flagship mixed-use community in Dubai, in April, representing a 14-billion-dirham investment over the next 10 years. Spanning three million square metres, the community will feature four neigh-

bourhoods, each having own unique character, with the Serenity and Harmony areas the first two offered as part of the launch phase. Serenity is a collection of 40 five- and six-bedroom upper luxury villas, offering unmatched waterfront views across Lagoon Al Ghaf as well as from the elevated ridge towards south-west Dubai. Harmony has a diversity of living options, from single storey bungalows to expansive three storey family villas, all with the principle of connecting indoor and outdoor spaces and linked by parkways and trails. When complete, the phased project will include more than 6,500 freehold homes, ranging from apartments, townhouses and bungalows, to through substantial luxury villas. The first villas are scheduled to be delivered in 2020, while the scheme is set for completion in 2027. g

Azizi awards Dh572 m contract for 11 towers

zizi Developments, one of the leading private developers in the UAE, has appointed a contractor to commence development of Phase 4 for its flagship project in Meydan One, Azizi Riviera, with construction expected to commence by the end of July 2018. Majed Hilal Contracting L.L.C has been appointed for a value of Dh572 million to construct 11 canal-side buildings that will make up over half of all developments in Phase 4 of Azizi Riviera. Azizi Riviera Phase 4 boasts a total of 4,753 units consisting of 3,141 studios, 1,261 one-bedroom, 267 two-bedroom, and 84 three-bedroom apartments. Mirwais Azizi, Chairman of Azizi Group, said: “As a construction-driven developer, we continue to progress quickly with Azizi Riviera, one of our most ambitious projects to date. We recognise a growing interest in

Dubai’s real estate market – and particularly in buying offplan – and aim to match that with our hallmarks of timely delivery, superior quality, and value for money.” Azizi Riviera is the flagship project of Azizi Developments and the architecture, while drawing inspiration from the French Riviera lifestyle, will also contain versatile, contemporary elements. Outdoor recreation and proximity to the business hub of Dubai and other leading attractions, including the Meydan One Mall and the Meydan Racecourse, home of the Dubai World Cup - the world’s richest horse day, further contribute to making Azizi Riviera a sound return on investment. A key feature of the Azizi Riviera development is a mega integrated retail district which will consist of highstreet bridge brands, leisure and entertainment options. The development, on the

banks of the Dubai Canal, will also offer access to long paved pedestrian paths and water transport, yachting facilities and a proposed marina, among other attractions. Azizi Developments is the real estate investment arm of Azizi Group. Established in 2007, the company’s diverse experience in the property market has enabled it to expand to include a portfolio worth over Dh45 billion in the emirate, with more than 200 projects under various stages of development. Azizi Developments was awarded ‘Developer of the Year’ at the Construction Innovation Awards for two consecutive years in 2016 and 2017. The company has also been instrumental in developing iconic properties in Meydan City, Palm Jumeirah, Dubai Healthcare City, Al Furjan, Studio City, Sports City and Downtown Jebel Ali. g

REALTYBYTES

Azizi to deliver Dh780 million Mina

zizi Developments, one of the leading private developers in the UAE, said, it will deliver the Dh780 million Azizi Mina, a project on the Palm Jumeirah, by the end of 2018. Construction of the project is progressing according to schedule with work on the inside of the building well underway, including mechanical and electrical works, and tiling with painting across all units currently ongoing. With its well-crafted design and prime waterfront location on the ‘crescent’ of the luxurious Palm Jumeirah, one of UAE’s most sought-after destinations, Azizi Mina features panoramic views of the sea and provides beach access to 174 residential apartments and four luxurious penthouses. The project will be the new lifestyle destination on Palm Jumeirah covering a total area of 452,000 square feet which includes 120 one-bedroom, 54 twobedroom, and four penthouse residences. In addition, it will include a total of six retail units across an area spanning 16,500 square feet. Azizi Mina is one of many premium projects by Azizi Developments in Dubai. The developer also has lifestyle projects including Azizi Riviera in Meydan One and Azizi Victoria in Mohammed bin Rashid Al Maktoum City, Dubai Healthcare City, Al Furjan and Jebel Ali. g Gulf Property

REALTYBYTES Emrill bags $135 million worth of FM contracts

mrill, a Dubaibased facilities management company, has announced contract wins and renewals for the past year of over US$135 million. This sets a new record for the UAE-based company, which has operations in both Dubai and Abu Dhabi and nearly 8,000 directly employed staff. The record figures follow a string of top contract wins over the course of 2017/18, including the Bvlgari Branded Residence, Mansions and Resort, Marina Gate 1, The Hills, Town Square Dubai and La Mer, among a broad range of industry sectors including aviation, master communities, retail, industrial and residential projects totaling US$67 million. Alex Davies, managing director of Emrill, says, “Our partners’ success is our own triumph and this approach has resulted in record high levels of client satisfaction and retention with over 80 per cent of our new contract wins coming from existing clients,” added Davies. Renewals totalling US$68 million resulted from a range of existing commercial contracts. Residential contract renewals included well known towers, such as Dubai Marina Towers, Princess Tower and 23 Marina. g

Gulf Property

Zahia celebrates 1,000th home sale

Una Apartments at Nshama’s Town Square development

harjah Holding, a strategic partnership between Majid Al Futtaim - Properties and Sharjah Asset Management, said, it has sold its 1,000th home at Al Zahia, Sharjah‘s premier lifestyle destination, marking a key milestone for the community as it approaches its halfway sales point. Al Zahia will feature 2,270 homes upon its completion in 2022. Coinciding with this occasion, Al Zahia is offering, for a limited time, a summer sales promotion on apartments, villas and townhouses. Potential home buyers and investors can save up to Dh290,000 on villas and townhouses. In addition, a new attractive payment plan that allows buyers to secure their homes with a 5 percent down payment and the remaining 95 percent payable on handover by 2021 is now available for apartment in Uptown Al Zahia. Investors will also

avail savings on service charges and registration fees. Shadi Al Azzeh, Project Head, Al Zahia, Communities at Majid Al Futtaim - Properties, said: “Sharjah’s property market continues to see an increased demand for integrated community living where people have easy access to a variety of residential, retail, leisure and entertainment offerings that meet their needs. The sale of 1,000 homes in Al Zahia demonstrates a strong appetite for homeownership in the emirates’ premier lifestyle destination, where investors and end users appreciate the long-term value and the highest quality standards our community offer to families, inspiring them to celebrate life to its fullest, every day.” Walid Al Hashimi, Chief Executive Officer at Sharjah Holding, said: “As we approach the project’s halfway sales point, Al Zahia has established itself as Sharjah’s

most sought after mixed-use community. In line with our commitment to supporting the economic growth of the emirate, our key goals will remain focused on completing the project as per the development timeline while continue delivering world-class community offerings to our residents and visitors.” In May, it launched a residential neighbourhood, Uptown Al Zahia that offers homes ranging from studios to three-bedroom apartments, featuring swimming pools, fitness facilities and underground parking, all designed within walking distance to cafes, restaurants, leisure and entertainment outlets with direct pedestrian access to City Centre Al Zahia. Planned for opening in 2020 with an investment of Dh2.6 billion, City Centre Al Zahia is a mall that will serve an area of 1.9 million people, as well as attracting residents of neighbouring Northern Emirates. g

REALTYBYTES

Bayut owner raises $50m

Kuwait plans 1 km tower at $86bn city The new tower will have 234 habitable floors – the highest – in the world

uwait has become the latest country to enter the race to build tallest tower, with a new 1 kilometre tall tower planned within a new US$86 billion (KWD26.1 billion) Silk City development, part of the Kuwait National Development Plan 2035. The design and construction details of the new Silk City development, have been revealed. Spanning 250 square kilometres in Subiya, Silk City is a multi-phased development that is due to complete over a 25-year period. It will be linked to Kuwait City through the under-construction Jaber Causeway, and feature four quarters, or “villages”, that will offer hotels, sports, medical, and environmental facilities. One of Silk City’s main developments is expected to be the Mubarak Al-Kabir tower, a 1-kilometer (1,001-meter) development that will rise to 234 floors, and house 7,000 people. Seven “vertical vil-

234

number of floors at the Tower

lages”, including hotels, residences, offices, and entertainment facilities, are expected to be developed within the tower. Jaber Bridge, planned to become the world’s fourthlongest bridge, is a key part of the Silk City development, where five islands are expected to be developed. The water connecting these islands would include the Mubarak Al-Kabeer port, which “will help the country to open to the world commercially and economically, and serve Kuwait's interests”, according to Kuwait’s state news agency.

Silk City is expected to house up to 700,000 people, and will include amenities such as an Olympic stadium, a 2-square-kilometer nature reservation area, an airport, and areas for business, leisure, athletics, and conventions. A center for environmental studies will also be developed within the project. The Silk City Project Company will be established to prepare a draft law for the project’s establishment and implementation. The company will also divide the city “into stages [… including] parts of the economic, commercial, and residential projects.” The state’s news agency KUNA added, “In the coming period, Kuwait will focus on attracting foreign investors, for their importance in developing economic activities, as well as achieving security and stability for the region and creating the most suitable atmosphere for foreign investors.” g

merging Markets Property Group (EMPG), the parent company of a number of property portals, said, it has wrapped up a first close of $50 million as part of a substantially larger investment round. In addition to Bayut.com in the UAE, EMPG owns and operates Zameen.com in Pakistan, Bproperty.com in Bangladesh, and recently announced its acquisition of Mubawab in Morocco. The Pakistan, Bangladesh and Morocco portals are clear leaders in their respective markets, and Bayut.com, one of the top portals in the UAE with a lead in some geographies, is well on its way to achieving clear leadership by December 2019. Haider Ali Khan, CEO of Bayut.com, said $25 million of these funds would be deployed in the Emirates with a focus on further consolidation. Together, these portals generate over 2 million leads for their clients every month. Group CEO Imran Ali Khan, said, “With a compounded annual revenue growth rate of over 100% over the last five years, more than 15,000 real estate agencies, and 8 million plus monthly visits across our portals, EMPG is ideally positioned for regional dominance,” he added. EMPG has raised a total of $60 million in its four previous rounds, and the current round brings up the total to $110 million. g Gulf Property

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Inclusive growth key for Middle East

he importance of inclusive growth lies in its ability to meet the aspirations of our people, create jobs, and enhance social justice. Today, the developments facing the Middle East and the world in general make the need for bold and sustained reforms even more urgent in order to achieve inclusive growth. Growth in the Middle East region has been sub-par since the global financial crisis, which has resulted in fluctuating income levels and insufficient job opportunities. There are internal structural causes for weak growth in the area, as well as external challenges that adversely affect the region and its economy, including volatility in global commodity prices. In addition, conflicts in the region have had a negative impact on stability and growth in its economies. The Arab region has the highest level of youth unemployment in the world, averaging 25 percent, and more than 27 million young people will enter the labour market in the region over the next five years. Reforms in support of inclusive growth can help lead to great achievements. For example, an annual increase of 0.5 percentage point in employment can raise real GDP growth to 5.5 percent and per capita income by 3.8 percent per year. The young people of the region have tremendous potential if given the right opportunities, and they are perhaps the best illustration of why promoting

The Arab region has the highest level of youth unemployment in the world, averaging 25 percent, and more than 27 million young people will enter the labor market in the region over the next five years.

If the gap between men and women with regard to participation in the labour market were narrowed, growth in the countries of the region could be doubled within a single decade and cumulative GDP could be increased by a trillion dollars.

inclusive growth is vital to the regionâ&#x20AC;&#x2122;s long-term success. If the gap between men and women with regard to participation in the labour market were narrowed, growth in the countries of the region could be doubled within a single decade and cumulative GDP could be increased by a trillion dollars. If the region transferred the equivalent of 1 percent of GDP from spending on energy subsidies to investing in infrastructure, the result would be a 2 percent increase in real GDP and the creation of half a million new jobs over the next six years. By increasing the financing available to small and medium enterprises to the median level in developing countries, more than $300 billion could be provided to increase investments in the private sector in the region.

In fact, many countries in the region have placed jobs creation and inclusive growth at the top of their reform programmes, and some of these countries have taken steps to boost the economic and financial opportunities available to young people and women, and to promote and develop the private sector. Many countries are making efforts to use technology to expand economic and financial inclusion. FinTech projects in the region have increased seven-fold since 2009 in countries such as Egypt, Lebanon, Jordan, and the UAE. Jordan, for example, has created a service called eFawateerCom, which is an electronic platform that enables people to pay bills electronically by means of an ATM. This platform handles more than a million transac-

OPINION

JIHAD AZOUR

Director, Middle East and Central Asia Department International Monetary Fund

tions per year and links its users to over 70 million Internet traders. Among the important reforms being implemented by a number of countries in the region are measures to enhance the business environment, reduce bureaucracy, and promote small and medium enterprises. In this context, Morocco has been able to create 85,000 jobs in the auto industry by enhancing the business climate and establishing free trade zones in Casablanca and Tangier. At present, about 45 percent of the spare parts required by the auto sector are manufactured by domestic suppliers. The region is in desperate need of such efforts to transform, and the examples that we have cited need to be duplicated in other countries of the region, for a future in which everyone can benefit from inclusive growth. Societies flourish when there are opportunities for everyone. It is essential that the countries of the region invest in their talented young people and strive to enhance opportunities for communication and interaction with the rest of the world. g Gulf Property

Key determinants to capital gains

ne of the variables that contributes to a property investment’s total return is capital gains. Predicting capital gains can be extremely difficult as any change in values of the property asset can be caused by a variety of factors and events, some of which are impossible to predict. Nevertheless, for any investor, solid research, analysis, knowledge and understanding of factors that will affect Capital Gains is required to develop a hypothesis as where property values are headed. Some of the factors to be considered are: The Economy: While many people believe that the Real Estate industry will drive economic growth, the actual catalyst to Real Estate industry growth is economic expansion driven by other economic sectors. This economic expansion will drive a number of factors that will have a direct impact on the demand for real estate and Property. Population Growth: In an emerging economy such as Dubai, where the population is made of 85 percent expatriates, economic growth and associated employment growth is synonymous with population growth. Recent history has shown that economic opportunity will attract people and businesses from all over the world fuelling increased consumption of goods and services and, of course, demand for real estate driving values upwards. Of course, the reverse also

applies. A significant contraction of the economy will result in possible population decline and demand for real estate will fall driving property values down. Prosperity: Economic growth can increase the prosperity and purchasing power of the market. Increased purchasing power can drive higher rates of home ownership, determine what asset types are constructed and contribute to wage driven inflation whereby people are able and willing to pay more for their dream homes, apartments or business addresses. Inflation and Liquidity: As a property owner, inflation is your friend. Inflation is usually accompanied by high levels of liquidity in the economy, higher levels of disposable income and favourable credit conditions, all positive factors for the appreciation of Real Estate values. Interest Rates, Monetary Policy and Credit Restrictions: The availability of affordable finance is a key component to generating and maintaining momentum in the Real Estate industry. Knowledge and understanding of planned changes to interest rates, mortgage restrictions such as LTV ratios, credit availability and regulations is essential to predicting future demand. Major Events: Economies can benefit from one off, major events that provide additional impetus to economic growth and business opportunity. Events such as The Olympics, Soccer World Cup, Cricket World Cup or

Global Expos all have the potential to provide significant opportunities to the property investor. Supply: The main threat to property value growth is excess supply. It is imperative, as an investor, that you have knowledge of current inventory levels by asset type, future supply pipeline and have an understanding of where possible pockets of excess demand may reside in the market. One of the problems with predicting supply is the time lag between the start and completion of a project and, when combined with the cyclical nature of the industry, careful analysis and an appreciation of the current position of the market within the industry cycle is critical. Policy Regulations, Law and the 3C’s: The impact of developments and changes in Policy, Regulations and Laws can be critical in affecting demand. There are three essential ingredients considered prerequisites for any real estate market to function effectively. For investors, these ingredients are of paramount importance in ensuring long term sustainable growth. These ingredients can be summed up as the 3C’s or, more specifically, Capital, Confidence and Clarity and all are greatly affected by whatever policy, regulations or laws are put in place by the relevant authorities. Capital can come from a number of sources, however, prime lenders such as banks must comply with directives issued by authorities such as

OPINION

MOHANAD ALWADIYA

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

the Central Bank. In this way, the role, exposure and level of participation in the real Estate industry being undertaken by major credit suppliers can be regulated. Confidence in any investment venture can be really distilled to the perceived predictability of future cash flows and capital growth and, with much of Dubai’s property having reached a cyclical low and some returning increased cash flows and capital growth, confidence is on the rise again. The last ingredient, Clarity or transparency, is arguably the most important. Investor confidence can be boosted by a proactive drive for Clarity. Regulators have an important role in determining what levels of Clarity and, ultimately, Confidence actually exists in the real estate industry and economy as a whole. Protection of legal rights and the standardisation and clarification of legal relationships are essential to driving Confidence and eventually investor Capital into Dubai’s real estate space. g Gulf Property

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How to Pay Down Mortgage Costs

aying off the debt – sounds so relaxing and enhances the financial planning once actually paid off. Current mortgage interest rates starting from 3.25 percent are still backing the buyer’s pocket, which stimulates buyers to jump into ownership status without taking the major interest burden on their monthly repayment. But with this, it is important to understand how to zero out the mortgage cost, so you can start enjoying your disposable income faster. Indeed, the mortgage is measured as a long-term commitment and has a major share in your monthly costing. However, if you have been able to uphold strong financial position, protected yourself for the future, free of high-interest credit cards, personal loan, and have sufficient corpus which can cover 6-7 months overheads, then paying your mortgage can be looked into. Here are a few tips on how to downsize home loan quickly while possession proper balance. Give a close watch on the financial plan. Never compromise with your financial goal to pay off your mortgage. Always compute wisely about your investment and its yield, and once you are convinced that your long and short-term areas are well protected then jump into forfeiting your repayment with the excess fund. Add partial payment regularly or whenever possible. Check your mortgage terms and condition regarding pay-

ment forfeit, gradually, add principal to your monthly payment. This can be the simplest and early payoff plan, which will decrease the principal amount thus the loan balance used for the calculation of interest charges will decline gradually and empower you to pay off your loan faster. Now, let’s understand with an example of how extra payments will affect the loan amount of Dh1,000,000 on a 25-year mortgage with a 3.25 percent interest rate, which would have Dh4,873 as a monthly installment for the initial promotional offering and would differ during the variable period. Making an extra mortgage payment of Dh30,000 semiannually after 1st year, could save up to 25 percent of the total interest and can pay off your loan almost 14 years earlier. Ideally, you can allocate a certain higher portion of the monthly repayment and invest into short-term savings product and later the targeted withdraw amount to settle the partial loan amount. Few banks would have a minimum prepayment amount and could also restrict in the frequency of the settlement request during every year. Refinance could be an alternate approach to pay off your loan quickly, either with a lower interest rate or shorter term. If planning to stay in your home for minimum four or more years with an interest rate of 5.5 per cent or higher, ask your current loan provider for the loan rescheduling or com-

pare it with other offers. If you can rationalise your current rate by 1.5 to 2 per cent or can shorten the amortisation period, go ahead and refinance. With the lesser interest rate, you will manage superfluous to pay off the loan principal element. Do the proper math to understand the ultimate refinance costs, as it should not overhead the saving cost. In refinancing, many prefer the modification due to increased suppleness and reduced interest cost, while other prefer the essential discipline of the monthly payment to keep it secure. Well, when we take a mortgage it is a common understanding to go with a maximum tenure but the longer the tenure, higher the interest paid. So, rather than paying over 25year, reduce the term, will certainly shoot up the EMI (Equated Monthly Installment) payment, but here the interest part is usually lesser, thus outweigh some of the monthly outflows. Currently, in the market, every mortgage product offering is in one to two-year fixed rate followed by variable rates, which are usually linked with Emirates Interbank Offered Rate (EIBOR) for the rest of the period. In this scenario, it is advisable to look for offerings where the base rates are lesser. Bank base rate usually varies between lenders, so take an informed decision while shopping. It benefits to pay the principal amount in long terms and add some extra money to your pocket. For an instant, if you have

OPINION

DHIREN GUPTA

Managing Director 4C Mortgage Consultancy

10 years loan tenure with 3.25 per cent fixed for the 1st year, then look for lesser bank margin rate connected with EIBOR rates, where you can save on higher interest repayment in the equated monthly installments towards your mortgage. Appoint a professional to assist you. Remember, being prudent about your loan responsibilities is the only way to enjoy your financial freedom. It is prudent to stay up to date as frequent changes may occur during your mortgage repayment cycle. Keep pursuing advice from the mortgage consultant regularly to evade any pitfall and to save time and money in the long run. Paying off your mortgage might not be the apt option for everyone. But a revision on the entire financial picture can derive situations where it does make value. Every individual’s situation is distinctive. Consider the investment goals, risk appetite, and time horizon before making any investment. By using these simple yet effective strategies you can actually end up saving a lot of money and having the full ownership of your home much before your tenure ends. g Gulf Property

FOCUS

Dubai land deals dip 15.9% to Dh111 bn in H1

Gulf Property Exclusive he value of land and property transaction in Dubai declined 15.9 percent in the first half of 2018 reaching Dh111 billion, compared to Dh132 billion recorded in the first half of 2017, Dubai Land Department records show. “Dubai Land Department (DLD) has revealed that real estate transactions in Dubai for the first half of 2018 reached Dh111 billion, reaffirming Dubai market’s attractiveness and ability to compete with global invest-

Gulf Property

Sultan Butti bin Mejren, Director-General of Dubai Land Department, the person who led the transformation of the real estate sector in the emirate

ment destinations. The strengths portrayed by Dubai’s real estate investments underscore the leadership’s mandate to ease business processes and procedures,” a DLD statement said. DLD said, it recorded a total of 27,642 transactions, including 18,191 sales worth about Dh40 billion, along with 7,668 mortgage transactions worth over Dh57.6 billion, and 1,783 other transactions valued at Dh13.4 billion in the first half of 2018. Sultan Butti bin Mejren, Director-General of Dubai Land Department, commented: “The strategic deci-

FOCUS

At A Glance

Dh111 billion

value of land transactions during the first half of 2018

Dh132 billion value of land transactions during the first half of 2017

Dh40 billion

Source: Dubai Land Department

value of sales transactions during the first half of 2018

Dh57.6 billion value of mortgage activities during the first half of 2018

Dh37 billion

value of investment recorded during the first half of 2018

Dh11.6 billion

invested by GCC nationals in the first half of 2018

Dh6.8 billion

sions launched by the Government are in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and have had a significant impact on sustainable growth and on strengthening the competitiveness of the national economy. “Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be of the most important incentives for economic growth in the Emirate, as they will have a positive impact on reducing

business costs and will support Dubai's position as one of the best investment destinations in the world. “We were also quick to adapt and align ourselves with these decisions: The 4 percent penalty that property owners were incurred for failing to register their developments within 60 days has been waived. This underpins the Government’s efforts to provide the best possible services to investors and developers alike.” In terms of investment, Dubai real estate market recorded 19,371 investments through 15,659 investors, totalling Dh37 billion.

The UAE nationals topped the list with 2,986 investments worth Dh6.8 billion, while Indian nationals ranked second — with investments that amounted to Dh5.9 billion through 3,218 investments — followed by Saudi Arabians whose investments were worth almost Dh3.7 billion through 1,415 investments. The list of top 10 investors by nationality also included Dubai residents from Britain, Pakistan, China, Egypt, Jordan and France, respectively. The total volume of GCC nationals' investments in Dubai’s real estate exceeded Dh11.6 billion through 4,919 transactions

investment by UAE nationals during the first half of 2018

Dh5.9 billion

investment by Indians in the first half of 2018

Dh21 billion

investment by foreigners during the first half of 2018

Dh9 billion

investment by women during the first half of 2018

Dh3.7 billion

invested by Saudi nationals during the first half of 2018

Dh4.2 billion

investedin Business Bay during the first half of 2018 Gulf Property

FOCUS

made by 3,700 investors, while 2,094 investors from 16 Arab countries concluded 2,561 transactions worth more than Dh4.11 billion. The first half of 2018 also saw 9,935 foreign investments from 143 nationalities making more than 11,889 transactions with a total value exceeding Dh21 billion. The value of properties registered by female investors, as recorded by DLD, reached Dh9 billion through 5,526 transactions.

Gulf Property

Bin Mejren concluded: â&#x20AC;&#x153;If we were to identify the reason behind the strengthening real estate market, it would be the level of maturity it has reached to maintain its sustainable growth. Expo 2020 is close at hand, and developers in the market are expressing interest in aligning with the directives of the wise leadership to turn Dubai into a global pioneer and an attractive investment hub in support of Dubai Strategic Plan 2021. In the list of top 10 areas in

terms of the numbers and values of real estate transactions in the Dubai market during the first half of 2018, Business Bay topped the list with 1,934 transactions worth almost Dh4.2 billion, followed by Dubai Marina in second place with 1,445 transactions worth Dh2.9 billion, and Al Merkadh ranking third with 1,262 transactions valued Dh2.1 billion. The remaining seven areas went to Al Barsha South Fourth, Al Warsan 1, Jebel Ali First, Al Hebiah

Fourth, Al Thanayah 5, Burj Khalifa and Al Yelayiss 2. In terms of mortgages, Dubai Marina listed 498 transactions worth more than Dh1.7 billion, Jebel Ali First came in second with 454 transactions totalling Dh769 million, and Business Bay recorded 453 transactions exceeding Dh3 billion. The list also included Al Thanyah Fifth, Al Barsha South Fourth, Nad Al Shiba First, Wadi Al Safa 5, Palm Jumeirah, Burj Khalifa and the Thanyah Fourth. g

Dubai brokers’ income falls 30% to Dh571 m

ubai property brokers’ earnings falls 30.3 percent to Dh571 million during the first half of 2018, down from Dh820 million recorded in the first half of 2017, Dubai Land Department records show. Dubai Land Department (DLD) said, a total of 5,181 active brokers — representing 2,113 offices — contributing to the sustainable growth achieved by the sector during the first half of 2018. However, the number of active brokers declined by 11.67 percent from 5,866 in the first half of 2017. This means a reduction of 685 brokers who had to either change profession or relocate. The Department of Real Estate Studies and Research also reported that the activities of the brokers and real estate offices during the report’s period were transparent, amounting to 2,978 transactions that generated a total commission value of Dh571 million. In addition,

Source: Dubai Land Department

Yousuf Al Hashimi, Deputy Executive Director of Real Estate Regulatory Agency

the number of contributing female brokers working in the real estate sector was 678. Yousuf Al Hashimi, Deputy Executive Director of Real Estate Regulatory Agency commented: “We appreciate the essential role played by authorised and licensed real estate brokers, and we encourage customers to choose brokers who hold ‘real estate broker’ identification cards. “The accreditation system

for brokers that was set in place by Dubai Land Department was initiated to sustain a secure real estate environment for all parties in the market. In addition, certified brokers contribute to support the vision of DLD by enhancing the process of real estate transactions in the Emirate.” DLD develops regulations and legislations to guarantee the rights of customers and brokers. It also organises training courses, including the intensive primary course that rewards successful applicants a ‘Certified Real Estate Broker’ card upon its completion. Additionally, DLD provided the ‘Dubai Brokers’ app through which anyone can enter property ownership details to verify and validate any of the property’s information for involved parties. The Real Estate Licensing Department at DLD encourages all real estate brokers to download this application to ensure that the required data is verified before selling or leasing a property. g

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Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be of the most important incentives for economic growth in the Emirate, as they will have a positive impact on reducing business costs and will support Dubai's position as one of the best investment destinations in the world.

– Sultan Butti Bin Mejren, DirectorGeneral of Dubai Land Department

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COVERSTORY

MAG project portfolio crosses Dh25 billion

Gulf Property Exclusive he combined value of the total real estate projects delivered and being developed by Moafaq Al Gaddah (MAG) Lifestyle Development, the real estate arm of MAG Group, has crossed Dh25.69 billion (US$7 billion) since the company’s foray in the real estate sector 15 years ago, a top official told Gulf Property. The company, which has delivered 2,500 residential units including townhouses and 4 million square feet of warehouses, has currently 15,000 units under various stages of development and construction spread across a number of projects. Of these, 75 percent are within the UAE and the rest are in different parts of the world, including Syria, Cyprus and the United States where it has a substantial size of projects under development. “We are currently working on a number of projects including the Dh2.5 billion MAG Creek that will include the world’s largest single-site wellness resort while MAG

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Eye is a Dh4.7 billion master-planned mixed-used community located at Mohammed Bin Rashid City District 7, hosting nearly 5,000 residential units including 694 townhouses,” Talal Moafaq Al Gaddah, Chief Executive Officer of MAG Lifestyle Development, told Gulf Property in an exclusive interview. “In total, the combined value of the delivered projects and those under planning, development and construction, will exceed US$7 billion (Dh25.69 billion), of which 75 percent of our portfolio is in the UAE and the rest are outside the country. “All our projects are going ahead well in terms of sale and construction. Although the market might have softened, we are not stopping any of our activities. All our projects are being constructed as per plan. “We have a solid reputation of delivering properties on time and ahead of time – in some cases, which is rare.” Talal Al Gaddah, son of Moafaq Al Gaddah, is a Syrian expatriate entrepreneur, who made his fortune by dint of hard work, dedication and

“We are currently working on a number of projects including the Dh2.5 billion MAG Creek while MAG Eye is a Dh4.7 billion master-planned community, hosting nearly 5,000 units. The combined value of the delivered projects and those under development, will exceed Dh25 billion...

– Talal M. Al Gaddah, CEO of MAG LD

passion in automotive industry in Sharjah and Dubai since 1978. MAG Group is a well-diversified multi-national business conglomerate headquartered in Dubai and involved

in real estate, contracting and engineering, industrial and commercial trading, freight services, and hospitality. Founded in 1978, it is one of the largest corporations in the region, maintaining a prominent position of leadership and pioneering among its peers. MAG Group employs more than 2,000 professionals working in 50 group companies. The group entered into the real estate development business in 2003, a year after Dubai Government opened the real estate market for 100 percent foreign ownership on a freehold basis in selected areas in 2002. The company, then known as MAG Property Development, had started with a few high-rise towers that were delivered to customers in time despite the impact of the global financial crisis in 2008-2009 – that forced many developers out of business. However, MAG Group continued to develop and deliver homes as promised to customers and remained firmly on ground. MAG Lifestyle Development (MAG LD), which was re-branded a few years ago from MAG Property Devel-

COVERSTORY At A Glance

Dh25 billion combined value of MAG LDâ&#x20AC;&#x2122;s project portfolio

Dh4.7 billion development value MAG Eye project

Dh2.2 billion

development value of MAG Creek welness project

US$ 1 billion

value of the Gate project in Fresco town, Texas, USA

Talal Moafaq Al Gaddah, Chief Executive Officer of MAG Lifestyle Development Gulf Property

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opment (MAG PD), had in 2014 announced investment to the tune of Dh15 billion (US$4.1 billion) in real estate in the UAE. Since then, it has also increased its engagement in the United States and currently planning to acquire a land bank in California’s Orange County. However, over the last few years, the developer has graduated to the level of a major master community developer by undertaking largescale master-development projects such as MAG 5, MAG Creek and MAG Eye – in three important strategic

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locations that are significant in terms of their positioning. “Due to the expansion of our real estate portfolio, we are expanding our sales team, from the current strength of 50 to 150 in the next few months,” Talal Al Gaddah said. “Real estate is a long-term business and we are deeply committed to this market. That’s why, despite the current market situation, we have deepened our engagement in real estate by undertaking a large number of important mixed-used master developments that caters to different segments of the

society. “The real estate market goes through cycles – like the overall economy. Many of our projects will be ready when the market picks up in a few years time. “We are currently in the process of tendering out a number of infrastructure and construction contracts to spearhead construction activities and you will soon hear news about these projects.” Talal Al Gaddah, a business graduate with a degree from the University of California at Los Angeles (UCLA), started his career as a Partner and Director at Invest

Group Overseas (IGO), a subsidiary of MAG Group and played a key role in the group’s international investment, especially the US$1 billion project – The Gate in Frisco City, Texas, USA. However, he has been trained well by his father Moafaq Al Gaddah, who gradually handed over the real estate portfolio to Talal. Since taking over the real estate development arm, Talal has spearheaded the business by undertaking large-scale projects and then re-branding the company and transforming it to becoming a global player in

MAG Eye – the largest project to have been undertaken by MAG Lifestyle Development

COVERSTORY

“Real estate is a longterm business and we are deeply committed to this market. That’s why, despite the current market situation, we have deepened our engagement in real estate by undertaking a large number of important mixed-used master developments that caters to different segments of the society....”

– Talal M. Al Gaddah, CEO of MAG LD

property development and investment. Under his leadership, MAG Lifestyle Development has become a Dh10 billion business and growing. When asked if MAG LD would venture into the race of developing one of the tallest towers in the world, he smiles. “No. We’d rather like to be the developer of choice and the developer of quality properties that families could call them home. We want to build happy communities where home buyers could live in peace,” he says. In an exclusive interview

with Gulf Property, Talal Moafaq Al Gaddah, Chief Executive Officer of MAG Lifestyle Development, shared his views on a number of industry-related issues.

Gulf Property: Could you update us on some of your key on-going projects? Talal Al Gaddah: We are delivering the first phase involving 2.5 million square feet of residential space at MAG 5 Boulevard – at Dubai South. MAG 5, a Dh800 million project involving 1,492 apartments, is our first venture in offering a luxury value home

at an affordable price and since then we have seen an increasing appetite for such products in the market, following which, we have deepened our engagement with the affordable luxury and mid-market segment where we see a lot of demand. The final delivery of the MAG 5 is slated for 2019 – which has been a runaway success in terms of sale. The project is 88 percent sold out. MAG Creek is one of our flagship lifestyle project that will host the world’s largest single site waterfront wellness resort, a resort hotel,

luxury villas and mansions in a landscaped waterfront setting on Dubai Creek. More than 80 percent of the project’s infrastructure and 15 percent of the overall project has been completed. We expect the full project to be delivered by the 2020. MAG Eye is a Dh4.7 billion mixed-use master-planned community that will see the development of 4,292 studios, one, and two-bedroom apartments, and 694 two, three, and four-bedroom townhouses The project features 4,800 square metres of public facilities including a private clinic, Gulf Property

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nursery and mosque, around 5,000 square metres of retail space, and 84,211 square metres of public parks and green areas. Fully furnished studio apartments at MAG Eye starts at Dh400,000 and a customer-centric 40/60 payment plan — 40 percent during construction, 60 percent upon handover. Our prices for apartment starts at Dh1,000 per square fee and for townhouses Dh900 per square feet – that are very attractive compared to the location of the project. About 25 percent of the MAG Eye properties have been sold out that includes 80 per cent of the Phase I of the project. We are also developing MAG 318 – a Dh550 million mixed-use tower in Business Bay that will include 439 apartments. This is slated for handover in 2020. The project is 76 percent sold out. MBL Residences, is another large residential tower project with a development value exceeding Dh640 million that will deliver 472 apartments in 2019. Ali Mousa & Sons Contracting, is on board to complete the project on time. We have recently launched two new projects – MAG 612 and 614 – together to deliver 350 units with a combined development value of Dh300 million. Besides, another new project, MAG 888 will add 1,050 residential units to the portfolio with a development value exceeding Dh600 million will be completed by Q1 2021.

Could you elaborate on your international projects? In addition to the UAE projects, we are developing the Gate project in Fresco, Texas, in the United States

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Talal M. Al Gaddah, CEO

alal Al Gaddah has transformed MAG Lifestyle Development into a multifaceted global real estate company with footprints in the UAE, Cyprus, Syria and the United States. Armed with a Business Degree, he has further honed his communication and leadership skills from

that is currently undergoing infrastructure works while sale of land parcel for thirdparty developers is going on. This is a US$1 billion project. The project is spread across 42 acres. We have completed the infrastructure and 40 per cent of the project is completed. We are also looking to acquire 300 acres of land in Orange County in California state where we plan to develop a mixed-use community. We also are expanding our portfolio in Cyprus where we have started with 13 villa project.

What about sale? How are the sales activities going on? Is the current slowdown affecting you? As I said earlier, real estate is a long term business and no one is immune to the market conditions. One has to adjust to them. However, as we have a well-diversified portfolio, there is room for every buyer and investor in our projects. So, I would say we are less affected by the slowdown which we are mindful of. However, this is not going to slowdown our development and sales activities as the market remains fundamentally strong. There is nothing wrong with the market. However, we are passing through

the University of California at Los Angeles, while his entrepreneur father Moafaq Al Gaddah, did most of the grooming for him to become an effective business leader. Today, he stands tall as a business leader in his own right, spearheading MAG Lifestyle Development towards its next phase of growth with large-scale mixed-use master-planned projects in the UAE and the United States. Despite being born into the cycle – which is quite natural. Sales activities of all the projects – UAE and overseas are going on as per plan and to our satisfaction. We currently have 50 sales persons in our sales operation and we want to add 100 more in the next few months. Who are your buyers – and what is the split between investors and end-users? We have a good mix of property buyers from all across the world and belonging to different nationalities. However, among them 60 percent are end-users and 40 percent are investors.

Do you keep part of the inventories for rental income? Yes, we keep part of the inventories – in some cases about 30 percent of the properties – for ourselves and for recurring income. Dubai’s real estate market – your base market – has seen a shift towards affordable homes in the last f e w

wealth, he remains humble and focussed. Under his stewardship, MAG LD became one of the first companies to address the need for contemporary housing by forming its MAG 5 PD division and venturing into the affordable home segment. The company also established a ‘MAG of Life’ division for wellness homes and set a new precedent in the sector by launching the first wellness-inspired project in the region. g years. How do you see this shift and what are your plans to cater to that market? Yes, the market is shifting towards the right direction and that’s the affordable segment. As I mentioned before, we have already made our entry into the affordable home market by offering luxury or value homes at an affordable price. MAG 5 Boulevard is a classic example that has been a runaway success since its launch a few years ago. It was sold out fast due to the high demand for such homes. To put this in simple calculation, the market f o r

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Talal Moafaq Al Gaddah, Chief Executive Officer of MAG Lifestyle Development

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Dh300,000 to Dh400,000 homes is as big as two million customers while the market for luxury homes might be limited to just 2,000 people. So, as a developer, what should I build – more affordable homes and less luxury homes? That’s exactly what we are doing. In the next few years, we want to be the number one developer of affordable homes in the UAE and we are working on this as part of our future development plan. However, we not only offer the affordable home in its traditional sense. We offer a

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value home – with all the luxuries of a standard home – at a very affordable price. So our homes are not affordable homes in their traditional sense – as one would assume that certain facilities and amenities have been compromised for price. We do not do that. Our affordable homes are the same as other homes. However, we offer them at an affordable price, without cutting corners.

So, the prices are expected to decline further? My view is that the year

2017 was the year of midmarket housing. I believe more than 100,000 mid-market homes would be sold by 2020 and when this market matures, we will see the real estate market enter the next phase. From 2021, the market will start heading towards the lower mid-market and lowcost housing and that’ the future because that market needs to be served. People in the lower economic strata needs to be served and as Dubai’s real estate market matures, it will address the housing needs

of those who were previously priced out.

What is MAG of Value Homes? We recently launched ‘MAG of Value’ homes – a concept that differentiates us with others. This means that all our homes are value homes – regardless of the price points. We do not compromise the quality of products – facilities, amenities – for price. If a customer buys a property at a very affordable price, he will be assured of the value and the quality. We

COVERSTORY Aerial view of MAG Eye – a Dh4.7 billion mixed-use master-planned community at Mohammed Bin Rashid City, District 7

maintain value and quality across all our properties in every price points – that’s a corporate commitment to all our customers. Real estate business is about trust. We are building trust – through our homes. Many buyers go by the ticket size of the property, and not the actual size, quality and amenities within the homes that they are buying because they are cheap. What is your view and advise to them? Real estate is a long term investment. One usually in-

vests his life-savings in homes. Most people get excited by the ticket size and the low price and do not see the things missing in the home. In their excitement, they overlook the overall side of the property, location, liveability, facilities and amenities. My advise is – do not short-change your life a for a few thousand dirhams. Look at the size of the apartment. Look at the price per square feet, and not by just the price. For example, you might

buy a studio for Dh300,000 with is of sub-standard size, compared to someone offering a studio for Dh400,000 – with 50 percent more space, a balcony or terrace and that comes will all the luxuries. Which one should you buy? You may not be able to live in the cheaper home or compromise your life in it. Then why buy? So, kindly look at all these factors before buying. In view of the current market trends, how do you see the profit margin shrink? A developer should be con-

tent with roughly 25 percent profit margin, in the worst case scenario. However, this depends on location, project combination and the overall business plan and the market conditions dictated by building materials price, construction cost, land cost and other factors. As a developer, we are happy with the opportunities in Dubai. Despite the cyclic slowdown, the market remains fundamentally strong and it offers a great opportunity even when chips are down. g Gulf Property

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Rents in Dubai to nosedive further

Gulf Property Exclusive

whopping 25,000 new housing supply and low demand is lowering the house rents and freehold sale prices of residential properties across Dubai – the most advanced and matured real estate market in the GCC – according to the quarterly Dubai Real Estate Report Q2 2018 issued by Asteco, a leading property services company in the UAE.

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The quarterly report also highlights the current and anticipated handovers of key projects across the emirate. Villa and apartment sales prices fell by 4 percent over the quarter, with an annual drop of 11 percent. The decline in apartment sales was most prominent in Dubai International Financial Centre (DIFC), Discovery Gardens and Dubai Sports City that registered a 6 percent fall since Q1 2018. Meanwhile, the highest quarterly drops in villa sales prices were observed in Jumeirah Park (8%), Arabian Ranches (5%) and The Springs (5%).

Sales activity remained steady, despite an overall bearish outlook from investors and end users. The stable trend is mainly attributed to further project launches, often with increasingly attractive incentives, competitive rates and extended payment terms. Q2 2018 saw the launch of several new residential developments, including Amaranta 3 and Tilal Al Ghaf Phase 1 in Dubailand, as well as Zawaya – a mixeduse community in Motor City, and Belgravia Heights I & II in Jumeirah Village Circle (JVC).

John Stevens, Managing Director of Asteco, said: “Generally, new developments focused on the affordable segment, resulting in a marginally more noticeable quarterly drop in sales prices at 5 percent, compared to 3 percent for mid- and highend properties.” Despite a lower number of anticipated handovers, the volume of new supply remained significant. This contributed to an overall quarterly decrease in apartment and villa rental rates of 3 percent and 2 percent, while annual declines were more prominent at 12 per-

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cent and 10 percent respectively. Stevens added: “Vacancy levels across multiple projects rose due to the supply of additional inventory. Properties with proactive management and maintenance teams succeeded in maintaining steady occupancy rates, while landlords offering discounts and additional incentives also achieved solid tenant retention. Over the next quarter, we expect further gradual but consistent softening in rental rates for all asset classes.” Compared to 2017, the highest apartment rental rate

drops were recorded in Jumeirah Village (16%), followed by Jumeirah Beach Residence (JBR) with 15 percent, and Jumeirah Lakes Towers, Deira and Discovery Gardens with 14 percent each. As for villa rental rates, Jumeirah Park and Jumeirah Village showed the most pronounced annual decrease at 15 percent, followed by Arabian Ranches with 11 percent. Approximately 3,400 residential units were handed over in the second quarter of 2018, closely matching the first quarter with the majority

of new supply located along the new growth corridors of Sheikh Mohammed Bin Zayed Road (E311) and Emirates Road (E611). An estimated total of 25,000 additional units is slated for delivery by end2018. Asteco has revised its 2018 supply projections for both residential units and office space downwards by 17 percent and 20 percent respectively, based on a combination of factors including lower handover volumes in the first half of the year and anticipated project delays. Completed office inventory rose significantly compared

to the first quarter of 2018, with the addition of more than 760,000 square feet across two developments – the 320,000 square feet HSBC headquarters in Downtown Dubai and the 440,000 square feet third building of the One Central project in the Trade Centre area. Stevens said: “Proactive government initiatives and ongoing infrastructure development are expected to boost market sentiment and drive investment in the UAE. The latest positive announcements include the freezing of school fees for the academic year 20182019, as well as the introduction of a 10-year residency visa for investors and specialists, and 100 percent foreign ownership of companies outside free zones. The UAE has always been a real estate investment haven, and the new laws will attract an untapped pool of international investors seeking a tolerant country with deep-rooted values to call home.” g Gulf Property

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UAE cuts business licensing costs

ost business licensing bodies in the UAE have started to slash business set up costs to attract new businesses and to help struggling existing businesses barely six months after they had increased fees and service charges adding to the rising cost of doing business. Companies in the UAE usually invest anywhere between US$15,000 to US$30,000 a year to start and run a business – in licensing cost, business registration cost, office space rental and associated costs – before they could start doing business. These costs do not include employee hiring and other costs. Processing employment permit, Emirates ID card, Employment Visa, Medical Insurance costs a company around US$2,500

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for each employee. Rising cost of doing business and high cost of living have already forced thousands of businesses to close down, causing massive job losses. The number of illegal foreigners has risen to such a level due to job loss that the government has declared an amnesty for them to leave the country without paying fines and other charges. The general amnesty runs from August 1, 2018 till October 31, 2018 – to flush out nearly half a million illegal workers, professionals and families stranded without work, job or business. Most government business registration bodies – the Departments of Economic Development and the Free Zone Authorities – have started to reduce fees and charges in order to retain the existing businesses and at-

tract new ones. Some of them have even waived fines for companies that failed to renew the licenses for the last few years, while others are offering renewal payments in installments, to help them remain in business. The small and medium enterprises (SMEs) have been the worst hit due to lack of demand and rising cost that have also been complicated by the banks refusing to lend them working capital or running capital. Dubai Airport Freezone Authority (Dafza) is the latest entity to reduce business setup cost by up to 65 percent, as part of its aim to increase Dafza’s regional competitiveness and activate a number of key sectors by attracting foreign direct investment (FDI). Supporting Dubai’s efforts to become an ideal destination for invest-

ment and prosperity, the decision will help achieve further stability for the operational processes of free zone companies and consequently sustain and drive investment growth. Dr. Mohammed Al Zarooni, Director General, Dafza, said: “This new approach falls in line with the directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost Dubai’s economic competitiveness. This is being done through a number of initiatives and incentives that aim to attract and promote FDI into the Emirate, ensuring sustainable growth across all economic sectors and strengthening Dubai’s status on the world economic stage.” “These incentives were agreed upon following comprehensive studies and polls

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evaluating the free zone’s initiatives, services, and business environment. This has allowed us to ensure flexibility at Dafza in meeting the requirements of new foreign investors and current customers. We are offering unique services that take into account the global economic climate and allow customers to increase earnings and operational profits as well as achieve business growth and prosperity. The ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP.” According to the UAE Ministry of Economy, SMEs are the key engines of the national economy and are identified as one of the most important strategic drivers to support productive sectors.

More than 94 percent of the companies operating in the UAE are SMEs and together, they account for more than 86 percent of the total private sector workforce as well as more than 60 percent of the country's current GDP, which is estimated to go up to 70 percent by 2021. SMEs’ contribution to Dubai’s economy rose from 40 percent in 2009 to 47 percent in 2016 while their contribution to job creation rose from 42 percent to 52.4 percent during the same period in spite of slow global economic growth, a latest study by Dubai Government’s Department of Economic Development (DED) showed. Younger start-ups make up nearly 50 percent of the companies registered in Dubai and it validates the emirate’s appeal as a global centre for entrepreneurship, knowl-

edge transfer and innovation, which also boasts of a stateof-the-art infrastructure and flexible legislative framework conducive to investment. Dafza has revisited and reduced registration, license, and staff visa fees for new investors by 65 percent, 33 percent, and 20 percent, respectively. Establishment card issuance fees have been cut by 17 percent, while fees for Board Resolution and MOA issuance have been waived. The new incentives include facilitating the process of obtaining general trading licenses for new investors by halving the capital requirement from Dh1 million to Dh500,000. Dafza has also allowed its member companies to be structured as a Limited Liability Free Zone Company (FZ-LLC), in a bid to provide more flexibility in

business setup, licensing and operation. In addition, Dafza has waived license expiry fines in an effort to relax the terms of license renewal. Allowing the restoration of legal records and licenses, the decision will help investors renew their expired license without paying any late renewal fines. This reflects Dafza’s constant support for the growth of business sectors and its commitment to remove all the obstacles faced by them in order to develop the economy and create a competitive, investmentfriendly business environment. Dafza has launched a restructuring process of free zone licenses and related fees. This will enhance the setup and operation experience for investors who wish to set up in the free zone by offering them greater flexibility in choosing the business and service activities that best correspond to the nature of their work. Seeing the number of economic activities which are over 2,000 across 18 major sectors, the new license structure will be in line with ISIC Rev 4, the UN benchmark for classification of economic activities. The new license structure will be introduced to new investors and current customers at the end of the third quarter of 2018. Dafza said that more initiatives and incentives are in the pipeline, including facilitating the issuance of No Objection Certificates, in order to facilitate investment processes and provide an optimum business environment that will continue to attract FDI. g Gulf Property

REALTYUPDATE

Rents in Northern Emirates decline

roperty prices and rents continue to fall by as much as 20 percent, according to findings by a number of real estate brokerage and online portals such as Asteco, Dubizzle and Bayut.com – the three most popular agencies said in their recent reports – due to increase in supply and weak demand. UAE property markets have been witnessing continuous decrease in both rental and sales prices during the past few years. Developers have responded to this situation by bringing more low-

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cost affordable stock to the market, resulting increase in apartment supply than demand in some areas. All these new supplies are having negative impact on property rents. In the Northern Emirates, apartment rental rates continued to soften with an average drop of 2 percent since the first quarter of 2018 and registered a decrease of 11 percent over the year, Asteco said in its latest report. Landlords are sweetening the rental rates for tenants under pressure and will continue offering flexible payment plan or even almost

rent-free stays rather than having empty units. According to Bayut.com, changes in the property laws in Sharjah announced in April, which allow non-residents to own property in the emirate is expected to increase interest in property sales as the year progresses. In Sharjah, the neighbourhoods of Al Nahda and Al Khan experienced the biggest rental drops, with two-bedroom apartments in Al Nahda declining by 20 percent year-on-year in the first half, putting the average cost for a two-bed at Dh36,000. Al Khan saw an

average decrease of 16 percent followed by Al Taawun, which saw an average 14 percent drop. John Stevens, Managing Director of Asteco, said: “While the Northern Emirates continue to attract both tourists and expatriates, rental rates are not likely to recover in 2018 due to increasing supply. However, the Northern Emirates will remain popular among residents looking to invest in more affordable accommodation and in holiday destinations.” A first-of-its-kind mixed-use business centre project in

REALTYUPDATE

Fujairah spanning an area of more than one million square feet, comprising an office, a hotel and serviced apartments along with a shopping mall and retail center is set for handover by 2020. Sales prices of apartments in Sharjah were more mixed. The most popular Al Khan saw a slight increase in average sale price of 4 percent, while other key areas experienced a drop, with Al Majaz falling by 19 percent, with the average price for a 2-bed property reaching Dh741,000. Also, Al Nahda saw a drop by 9 percent in sales and Al Taawun by 4

percent. According to Asteco, highend properties in Ajman recorded the highest annual decline of 13 percent, putting the average rent for a threebedroom unit between Dh40,000 and Dh53,000. However, the drop for the same unit type in Ras Al Khaimah was less pronounced at 7 percent, with rental rates averaging Dh95,000 per year. In Sharjah, rental rates continued their downward trend dropping on average by 2 percent in the last quarter and 11 percent annually, with the most prominent

drops recorded in Al Butina and Corniche (4%). While Sharjah office rental rates recorded quarterly and annual reductions of 3 percent and 14 percent respectively. Haider Ali Khan, CEO of Bayut, said, â&#x20AC;&#x153;Sharjah prices are at a very attractive point and present a good opportunity for investors to diversity their investment portfolio. As the summer months roll in, we expect prices to stay stable in Sharjah through this quarter. With more off-plan projects picking up in Sharjah, with some allowing ownership by folks from outside the GCC, this will help gen-

erate more interest and transactions going forward.â&#x20AC;? Meanwhile, Ajman witnessed a similar decline in rental and sales prices, with some properties falling at a greater rate than Sharjah, Dubizzle said. Al Jurf and Ajman industrial area saw the largest drop in rents in 2018, with a decline of 18 percent from 2017. This is followed by Al Sawan with a 14 percent decrease and Emirates City, where prices have dropped by 10 percent. Apartments in Al Nuaimiya saw the biggest drop in average sales prices, at 23 percent, according to the report, followed by Emirates City (21 percent) and Al Mushairef (19 percent). Al Sawan experienced the lowest decline in average sale price, dropping by only 10 percent. Matthew Gregory, Head of Property, Sales at Dubizzle said,"We expect that affordability and falling rents will be a trend that we will continue to see for the rest of the year as more and more new units continue to feed oversupply in the market.â&#x20AC;? g Gulf Property

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Half-yearly profit fall reflects slowdown

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alf-yearly results of the major publicly listed real estate companies show a steep decline in topline revenue and bottomline profits that reflects the current slowdown in the real estate market. All major developers, except Emaar Properties have reported a decline in net profits in their first half 2018 results. “Apartment and villa sales prices decreased 4 percent in the second quarter of 2018 and 11 percent annually,” said a latest report by Asteco, a major real estate

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brokerage in the UAE. “Sales activity remained subdued, but steady, despite a generally bearish outlook from Investors/End-users. This sentiment is further exacerbated by the continuum of new project announcements and launches, often with increasingly attractive incentives, competitive rates and extended payment terms.” On the rental sector, Asteco’s latest report says, “Despite a lower number of anticipated handovers, the volume of new supply still remained significant. This contributed to an overall quarterly drop in apartment and villa rental rates of 3% and 2%, whilst annual declines were more prominent at 12% and 10%, respec-

tively. “Moreover, vacancy levels in many projects rose as a result of the additional inventory, although some locations and/or developments were able to maintain good occupancy rates, particularly those properties with proactive management and maintenance teams. Landlords offering discounts and/or other incentives also facilitated tenant retention.”

Damac profit dips 46% to Dh862 million

Damac Properties’ net profit declined sharply to 46 percent to Dh862 million in the first half of 2018, compared to Dh1.6 billion of first half

2017, although its revenues for the same period rose 5.4 percent to Dh3.7 billion, up from Dh3.5 billion in the first half of 2017. Earnings per share (EPS) for the developer amounted to Dh0.14 per share by the end of the first half of 2018. As of June 30, cash and bank balances for Damac stands at Dh7 billion, while development properties at Dh9.2 billion, and total equity at Dh13.8 billion. Gross profit for the first half of the year is recorded at Dh1.4 billion, booked sales at Dh2.3 billion in H1 2018, while total assets increased to Dh25.9 billion, from Dh25.3 billion at the end of December 2017. For the first half of the year Damac delivered 1,490 units,

Nakheel profit down 3.8% to Dh2.5 bn in H1

lthough not listed, Nakheel reported a 3.83 percent decline in net profit to Dh2.51 billion in the first six months of 2018, down from Dh2.61 billion recorded in the same period in 2017. Nakheel, developer of the world’s first palmshaped island off the Arabian Gulf, handed over 451 units to customers in the first six month of the year. The company’s non-development businesses – retail, leasing, hospitality and asset management – all performed strongly. Annual revenues from these sectors is now Dh2.6 billion – three times as much as in 2010 – and currently accounts for 38 per cent of the company’s total revenue. Revenue from these sectors will continue to grow with the completion of retail and hospitality projects compared to 1,071 units in the same period last year. The units delivered in the first half of 2018 were at its luxury Damac Heights tower, in Dubai Marina, Damac Majestine, in the Burj area of Dubai, and two mid-rise buildings in the flagship Damac Hills development. Hussain Sajwani, Chairman of Damac Properties said, “Over the last couple of years, delivery of several landmark Damac developments has been of paramount importance for Damac. While the nature of the industry is cyclical, Dubai’s global appeal is undeniable and our strong liquidity keeps us agile to avail strategic opportunities across both regional and global markets.

“As we go into the second part of the year, we thank our customers, shareholders, employees, partners for their support and commitment. We also honour and thank the visionary leadership of the UAE for driving the success of the industry, with ongoing initiatives that uplift both the financial and moral wellbeing of the nation’s citizens and residents, while attracting more visitors and investors to the country each year.” Construction continues on circa 8,000 units at Damac’s Akoya Oxygen master community in Dubailand, while the focus remains on unit handovers to customers in another master development, Damac Hills. Both communities are premium,

such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019. Nakheel officially signed construction contracts worth more than Dh6 billion between January and June this year. Among them: contracts for Dh4.2 billion for Deira Mall; Dh600 million for Nad Al Sheba Mall; Dh447 million for a bridge between Deira Islands and mainland Dubai; and Dh385 million for the 800-room RIU resort at Deira Islands. In the first half of 2018, the company also signed a joint venture with Al Nasr Sports and Cultural Club for an Dh300 million retail centre, announced a planned partnership with Austria’s Vienna House hotels for a new resort at Deira Islands and declared its first project outside of Dubai – an Dh75 million retail centre in partnership with the Sharjah Investment and Development Authority (Shurooq). g gated residential developments with varying property sizes, surrounded by lush greens and luxury amenities, with easy access to community conveniences such as schools, mosques and retail outlets.

Deyaar profit down 2.6% to Dh65.2 million

Deyaar Development, one of Dubai’s leading property developers and real estate service providers, reported 2.6 percent decrease in its net profit to Dh65.2 million in the first half of 2018, compared to Dh67 million in the corresponding period of last year. Deyaar reported revenues

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of Dh314 million for the six months ending June 30, 2018, a 0.7 percent decrease compared to the corresponding 2017 figure of Dh316 million. Saeed Al Qatami, Chief Executive Officer, Deyaar, said: “The financial performance for the second quarter, and first six months of the year, is a reflection of the robust business model that we operate and is driven by our clear strategy for growth. As we are making significant progress on The Atria, Midtown, and Millennium Deyaar Hotel and Apartments in Al Barsha, we are confident about our ability to further expand Deyaar’s portfolio and continue to see positive results, cementing our status as a leader in the sector.” Earlier this month, Deyaar has commenced the handover process for The Atria, its second project in 2018. The mixed-use project is located in Business Bay and comprises a four-star hotel apartment tower and a residential tower. Deyaar began 2018 with a strong start, with the handover for the two residential towers in its iconic Mont Rose project. 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 Gulf Property

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Emaar H1 net profits jump 18% to Dh3.3 bn

maar Properties’ said its net profit grew by 18 per cent to US$910 million (Dh3.34 billion) in the first half of 2018, prior to considering the effect of the IPO of Emaar Development, compared to the net profit of $772 million (Dh2.83 billion) recorded during the same period in 2017. The net profit for the first half of 2018 after considering impact of Emaar Development IPO in 2017 is Dh2.98 billion ($812 million), an increase of 5 per cent over same period last year. Emaar Properties recorded revenue for the first half of

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2018 of $3.12 billion (Dh11.47 billion), 46 per cent higher than H1 2017 revenue of $2.14 billion (Dh7.86 billion), led by strong construction progress and growth in malls business. Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded impressive sales of residential properties in the UAE, valued at $1.69 billion (Dh6.22 billion) during the first six months of the year, highlighting strong investor appeal for Emaar Development’s projects. The total sales backlog of Emaar

Development is $10.48 billion (Dh38.50 billion) to be recognised as revenue in the coming years, underpinning the strong long-term fundamentals of the company. Emaar’s malls, hospitality, leisure and entertainment businesses recorded revenue of $963 million (Dh3.53 billion), 17 per cent higher than the same period in 2017 at $821 million (Dh3.01 billion), which represents 31 per cent of the total revenue. Revenue for the second quarter (April to June) 2018 was $1,60 billion (Dh5,88 billion), 55 per cent higher than the Q2 2017 revenue of

$1.03 billion (Dh3.79 billion). Net profit for Q2 2018 grew by 16 per cent to $457 million (Dh1.67 billion), prior to effect of Emaar Development’s IPO. Net profit after considering Emaar Development IPO was $403 million (Dh1.48 billion), 2 per cent higher than the Q2 2017 net profit of $396 million (Dh1.45 billion). Mohamed Alabbar, Chairman of Emaar Properties, said: “The strong financial performance of the company during the half-year highlights the strength of Dubai’s economy and its appeal to international investors and

Emaar Development profit jumps 68% to $496 million

maar Development, the UAE build-to-sell property development business majorityowned by Emaar Properties, reported a 68 percent jump in net profit to $496 million (Dh1.82 billion) during the first six months (January to June) of 2018, compared to $294 million (Dh1.08 billion) during the same period last year. Revenue for the first six months of the year was $1.90 billion (Dh6.99 billion), underpinned by the progress in construction and timely project delivery. This is 119 per cent more than the H1 2017 revenue of $868 million (Dh3.19 billion). Highlighting the strong investor appeal for Emaar Development’s residential launches, the company reported total sales of Dh6.23 billion ($1.70 billion) during H1 2018. Emaar now has a total sales backlog of over Dh38.50 billion ($10.48 billion), majority of which will tourists. While our property business recorded positive growth with several new residential destinations launched in Dubai, our malls, hospitality, leisure and entertainment business benefited from the increase in tourist arrivals and boost in domestic spending. Our focus continues to be on creating premium real estate assets and strengthening the competencies of our malls and hospitality business to add value to our stakeholders.” In property business, Emaar has launched several residential projects in Dubai Creek Harbour, Dubai Hills

be recognised as revenue over the next three to four years. Emaar Development’s net profit grew 73 per cent in the second quarter (April to June) of 2018 to Dh997 million ($271 million), compared to Q2 (April to June) 2017 at Dh575 million ($157 million). Revenue for the second quarter of 2018 was Dh3.72 billion ($1.01 billion), 145 per cent more than the second quarter of 2017 revenue of Dh1.52 billion ($414 million). In the first half of the year, Emaar Development launched the sale of over 3,600 residential units across its mega developments in Dubai. It now has a development pipeline of over 60 residential projects in the UAE with over 28,000 units. Construction is progressing as per schedule for handover of the first waterfront homes in Dubai Creek Harbour – the Dubai Creek Residences in Creek Island Dubai – next year. Timebound milestones have been achieved for the delivery of homes in Dubai Hills Estate, Emaar South, Emaar Beachfront and Downtown Estate, Downtown Dubai and Emaar South, as well as the unveiled Emaar Beachfront, a private island destination. The launches recorded strong interest from international investors underlining Emaar’s reputation for superior design, build quality and timely delivery. Emaar Malls reported H1 2018 revenue of $573 million (Dh2.10 billion), 29 per cent higher than the H1 2017 revenue of $442 million (Dh1.62 billion). Emaar is further expanding its malls business with the launch of Dubai Square, a retail metropolis of the future in Dubai Creek

Dubai too. Mohamed Alabbar, Chairman of Emaar Development and Emaar Properties, said: “Emaar’s residential destinations are city hubs of the future with their exceptional location, build quality, spectacular views and the lifestyle amenities we offer in our integrated developments. Developing premium real estate assets is our core strategy for Dubai and the resurging investor enthusiasm to our property launches underlines their trust in our focus on quality and design. We will continue to seek opportunities for developing property assets that create long-term value for our stakeholders.” Emaar Beachfront, a private gated island destination in the Arabian Gulf, offering residents the opportunity to experience Miami beach style living in Dubai, reported strong investor response for Beach Vista and Sunrise Bay, together accounting for sales of Dh1.65 billion ($449 million). Emaar also announced a strategic partnership with Aldar for a new joint venture to develop Dh30 billion worth of projects. g Harbour, the six square kilometre mega-development only 10 minutes from the Dubai International Airport and Downtown Dubai. Ushering in the future of retail, the new precinct will also feature the Middle East’s largest-of-its-kind Chinatown. Emaar is progressing in the construction of Dubai Hills Mall, a regional mall, in Dubai Hills Estate with 2 million square feet gross leasable area. The shopping mall assets of Emaar Malls – The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold and Diamond Park and

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community shopping centres – together welcomed over 67 million visitors during the first six months of the year, 3 per cent more than the 65 million visitor footfall in H1 2017. Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of $390 million (Dh1.43 billion) during the first six months of the year, 3 per cent higher than the H1 2017 revenue of $388 million (Dh1.39 billion). Emaar Hospitality brands – Address Hotels + Resorts, Vida Hotels and Resorts and Rove Hotels - continue to record higher occupancy than Dubai’s industry average. Emaar Hospitality Group signed several management contracts in the UAE and in global markets, and now has over 50 hotel projects – operational and upcoming - in its portfolio currently. g Gulf Property

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Aldar H1 profit falls 13% to Dh1.1 billion A ldar Properties’ net profit declined 13 percent to Dh1.1 billion in the first half of 2018, compared to the first half of 2017, although its gross profit for the same period rose 5 percent to Dh1.4 billion, up from Dh1.3 billion in the first half of 2017. The Abu Dhabi-based master property developer said, its first half year revenue grew marginally 2 percent to Dh3. billion compared to Dh2.9 billion recorded in the first half of 2017, driven by revenue recognition on developments under con-

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struction and recent asset acquisition. During the first half of the year, Aldar announced and completed acquisition of Dh3.6 billion of assets from the Tourism Development Investment Co (TDIC). The company’s gross profit margin of 46 percent is higher than 44 percent recorded in the corresponding period last year, supported by high margin development and land plot sales revenue Its net operating income from asset management business increased 6 percent to Dh377 million. During

this period, the developer completed handover of Ansam and Hadeel while handover commenced for Nareel Island, Al Merief and West Yas, It also announced the Dh 10 billion masterplan community at Alghadeer at Cityscape Abu Dhabi in April. The company has recorded 77 percent of properties sold across entire development portfolio. Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said: “Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of land-

mark announcements. In the development business, we launched a new masterplanned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas. “We have cemented our position as Abu Dhabi’s leading real estate investment company by completing one of the country’s largest ever real estate acquisitions. The transaction, completed in just 60 days after being announced, adds Dh3.6 billion of strategic operating and de-

Emaar Malls profit grows 8% to $300 m

maar Malls, the shopping malls and retail business majorityowned by Emaar Properties, said it has recorded a growth of 8 per cent in its net profit for the first half (January to June) 2018 to Dh1.1 billion ($300 million) compared to the first half of 2017 net profit of Dh1.02 billion ($278 million). Revenue for half-year 2018 is Dh2.1 billion ($573 million), an increase of 29 per cent over first half of 2017 revenue of Dh1.62 billion ($442 million). During the second quarter (April to June) of the year, Emaar Malls recorded a net profit of Dh554 million ($151 million), 15 per cent higher than the second quarter 2017 net profit of Dh482 million ($131 million). Revenue during the second quarter of 2018 was Dh1.06 billion ($290 million), 35 per cent higher than the second quarter of 2017 revenue of Dh788 million ($215 million). Earlier this year, Emaar Malls distributed a cash div-

velopment assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth.” Development sales for the first half of the year were Dh1.1 billion (Q2 2018: 372 million), driven by sales of developments under construction, and two newly launched developments that build on Aldar’s destination strategy. Alghadeer, a new Dh10 billion, 14,408 unit masterplan that sits within Aldar’s Seih Al Sdeirah land bank on the border between Abu Dhabi and Dubai was

idend of Dh1.30 billion ($354 million), equivalent to 10 per cent of share capital, to shareholders – for the third consecutive year - underlining its focus on sustained value creation. Emaar Malls has inaugurated the expansion of The Dubai Mall Fashion Avenue, which added over 150 international brands, as well as The Springs Souk, a vibrant community centre with a wide choice of leisure attractions added a total gross leasable area (GLA) of 850,000 square feet. With this addition, Emaar Malls has a GLA of over 6.7 million square feet in Dubai. The occupancy across the assets of Emaar Malls was a robust 93 per cent during the first half of 2018. Emaar Malls assets – including The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold and Diamond Park and community shopping centres – welcomed 67 million visitors during the first half of 2018, 3 per cent higher than in the first half of 2017. The Dubai Mall reiterated its credentials as the world’s most visited retail and shopping destination welcoming 40 million visitors launched at Cityscape Abu Dhabi in April 2018. Reflection, launched in March 2018, is a boutique residential development on Reem Island expanding Aldar’s portfolio of mid-income developments in a city location. Handover completed at Ansam and Hadeel, and commenced on West Yas (Aldar’s first villa community on Yas Island), Al Merief (a master planned community in Khalifa City) and Nareel Island (an exclusive master planned community near Al Bateen). All other developments under construction are progressing well, with Meera,

during the first half of the year, driven by year-round activities including the popular festivities to mark the Chinese New Year that welcomed thousands of Chinese tourists. Reflecting the success of Emaar Malls’ investment in tech-retail platforms, Namshi, which was acquired in August 2017, recorded online sales of over Dh384 million ($105 million) in the first half of 2018, an increase of 22 per cent over the same period last year. Mohamed Alabbar, Chairman of Emaar Properties, said: “In a short span of time, Emaar Malls has underlined its strength in delivering world-class retail destinations that meet the aspirations of both UAE residents and tourists. We are now taking the Emaar Malls growth story to the next level with a firmer focus on omnichannel retailing and the creation of iconic new destinations that will reshape retail dynamics. Designed for the next generation and leveraging future technologies, these malls will bring the timeless charm of the city squares in a high-tech environment.” g located on Reem Island, on track for handover in the last quarter of 2018. In May 2018, Aldar announced the acquisition of a selection of assets from Tourism Development and Investment Company (TDIC). The assets purchased included residential projects on Saadiyat Island at reasonably advanced stages of construction. These high-quality projects expand Aldar’s pipeline of existing projects under development and contribute immediate revenue as construction progresses. Aldar’s asset management

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portfolio of residential, retail, office and hospitality properties delivered another resilient performance, with a 6 percent increase in net operating income to Dh377 million during the second quarter of 2018, compared with Dh357 million in the second quarter of 2017. Occupancy remains healthy across the portfolio. Residential occupancy as at 30 June 2018, stood at 91 percent, while occupancy in the commercial portfolio was 91 percent and Yas Mall was steady at 89 percent. The hospitality portfolio recorded occupancy of 74 percent during the first six months of 2018. Aldar’s acquisition of assets from TDIC included a portfolio of operating assets, predominantly comprising residential, hospitality and leisure and district cooling. The transaction was completed in the second quarter within 60 days of being announced. These assets are now firmly integrated into Aldar’s portfolio and will provide a more meaningful contribution during the second half of the year and beyond. g Gulf Property

INTERVIEW

Vassilis Bazinis, Country Manager for UAE and Oman, Regus

Regus expands its footprint in the Gulf 60

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INTERVIEW

Gulf Property Exclusive

orkspace revolution will change the way businesses invest in office space and encourage companies to increasingly outsource office space and associated facilities, according to reports. “We have witnessed a 50 percent growth in demand for our services in Abu Dhabi this year which reflects a growing trend of using out-

sourcing office space and work solutions,” Vassilis Bazinis, Country Manager for UAE and Oman, Regus, part of the International Workspace Group (IWG), said in an exclusive interview with Gulf Property. “Companies can achieve up to 60 percent cost savings in their office, human resources and other facilities when they use our services as we offer companies and our customers end-to-end services so that all their office-related headaches are taken care off and they can focus on the core business activities.

“There is a huge shift in the workspace landscape globally and Abu Dhabi is no exception.” Office space is gradually becoming temporary or virtual, especially as more and more people are on the move and remain connected through their handheld devices, either smartphone or tablet PCs. The definition of office and workspace is fast changing as technology is fast changing the way people work and live. “In recent years, disruptive forces have transformed entire industries around the world. Technology has

changed the way that we think about things that we used to take for granted,” said IWG, the parent company of Regus, the operator of one of the world’s largest office space solutions provider – with 3,000 workspace locations in 100 countries including 700 airport lounges offering 18 million wi-fi hotspots to 2.5 million customers across the world. Bazinis says, “Workspace revolution is here to stay. We are not workspace disruptor, we are leading the it.” More than half of UAE employees work remotely every week, and over 50 percent Gulf Property

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do so for at least half of the week, heralding a major reassessment of corporate real estate, according to new study by International Workplace Group (IWG), the parent group of leading workspace companies including Regus. The UAE study was part of a comprehensive global study based on the insights of over 18,000 business people across 96 companies. It found that every week 60 percent of the UAE employees are working at least one day a week somewhere other than the office. More than half (52%) work remotely for half of the week or more, whilst one in 10 (10%) people work outside of their company’s main office location five times a week. Globally, the results reflected a similar trend in the workforce with every week 70% of employees are working at least one day a week somewhere other than the office. According to the study,

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the emergence of this mobile workforce has been driven by technological change, globalisation and changes in employee expectations. The study by IWG also found that UAE businesses recognised that offering flexible working strategies to their employees provided them with significant benefits, such as business growth of 91 percent or 2 percent above the global average; 97 percent increase in competitiveness – 10 percent above the global average; about 85 percent productivity which is 3 percent above the global average and 91 percent profit maximisation – which is 8 percent above the global average. For generations, the world has understood office-based work to involve a fixed location and a 9-5 schedule. But an unprecedented number of businesses are now adopting a very different working model, which produces benefits for them and their work-

ers, due to the benefits. The IWG survey found that flexible working not only reduces commuting time, but enhances productivity, staff retention, job satisfaction and even creativity. This is in addition to the financial and strategic advantages that it brings for businesses. In an exclusive interview with Gulf Property, Vassilis Bazinis, Country Manager for UAE and Oman, Regus, elaborated his thoughts. Excerpts:

Gulf Property: How is the workspace and the concept of office changing? Vassilis Bazinis: Flexibility is the keyword in any activities. It allows greater productivity and the freedom to work at any place and at any time. Gone are the days of the 9 to 5 office timing and work is no longer limited to the four walls of the office. Businesses are recognising that offering flexible work-

ing strategies to their employees provided them with significant benefits. We pioneered flexible workplaces 30 years ago and now we are leading the workplace revolution helping businesses make flexibility work for them and their people. In many parts of the developed world, the concept of workspace has changed. Now people work while flying, travelling on train or at airport lounges, and home, depending on their convenience.

When you say you offer 60 per cent cost savings, how does your office spare rent compare with the traditional office space per square foot? First, we have to compare an apple to an apple. We don’t only offer office space. We offer work solutions that includes pantry, secretarial services, dedicated phone line and call-back

RAKEZ clients to get Regus boost

as Al Khaimah Economic Zone (RAKEZ) has yet again made a step further towards providing ease of doing business to its clients by teaming up with Regus, the world’s largest workspace solutions provider. The partnership between RAKEZ and Regus entitles the economic zone’s new and existing clients to avail an exclusive Business Package, which allows them to have memberships to access the first-class business centre services of Regus in Dubai and Abu Dhabi and internationally for only Dh6,300 per year. Ramy Jallad said: “The business landscape today is ever-changing. Now, you have to be always on the move to keep up with your market; have meetings here and there, and usually, you’ll need more than just your laptop. We want to address services, fax, photocopy, washroom, food and lounge services – all combined. You can’t compare this with just office rents, which starts at around Dh27.7 per person per day on co-sharing space and Dh39.7 per person per day on a dedicated space.

How can you help small businesses and start-ups? We are ideal for small businesses and start-ups as we take care of all the office and real-estate and asset management related functions so that the start-ups could focus on their core activities. Besides, with our services, a start-up doesn’t need the secretary – that service is provided by us.

our clients’ need to move around to effectively enable their growth. “With the Regus Business Package, our clients can have access to business centre services at prime locations in Dubai and Abu Dhabi, and have everything they need there – from meeting rooms to various support services. We’re very proud to collaborate with Regus as they share our goal of providing flexibility and accessibility to investors at a low cost.” The Strategic Alliance Agreement was signed by Ramy Jallad, Group CEO of RAKEZ, and Vassilis Bazinis, UAE Country Manager for Regus, at RAKEZ headquarters. Vassilis Bazinis, Country Manager UAE, Regus said: “We are witnessing a workplace revolution, with more than one billion people globally who are mobile workers and require flexible workplace solutions to fit their business needs - the UAE is no exception to this. Through our partnership with RAKEZ, we are able to Do you handle trade licensing activities? No. But we provide an important aspect of it. When a start-up needs license that also require the company to rent an office space – a minimum of 200 square feet space. We not only provide the space, but also the lease agreement or Ejari, based on which the start-up can get the trade license. So, our services also helps start-ups to speed up the processes and help them to get over with the hassles of the paperwork. How many locations do you have in the UAE and GCC and how is your busi-

offer their companies and clients a wide-range of firstclass business centre services, supporting their business growth.” “For generations, the world has understood office-based work to involve a fixed location and a 9-5 schedule. But an unprecedented number of businesses are now adopting a very different working model. Flexible working not only reduces commuting time, but enhances productivity, staff retention, job satisfaction and even creativity.” In addition to the business centre services of Regus, RAKEZ clients who avail the Business Package get a professional address as well as a range of services, including mail handling, telephone answering, and business support services. “We strive to become the no. 1 in terms of customercentricity, and this new package offered through Regus definitely shows that, reflecting our commitment to providing premium services and facilities, wherever they are,” Jallad added. g ness growing? We have 50 locations across the region, including 25 in the UAE. The business is growing and we can see increased demand for our services in the UAE. The business is growing due to the benefits that the companies getting from us.Why would you rent an office and spend a large sum in decorating, furnishing and then make it workable after 3-6 months, when you can plug and play with us immediately? Companies can save significant costs on real estate that they outsource, sometimes as much as 50 percent or more. Reducing long leases, capital expenditure

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and overall costs provides a financial boost that helps financial risk So companies and customers are coming to us due to the benefits when they do a cost-benefit analysis. Besides, with Regus, you can use any of the 25 locations in the UAE. So if you are based in Dubai and have a meeting in Abu Dhabi, while you need to quickly do some work urgently – you can check in to one of our centres in Abu Dhabi and finish it, before driving back to Dubai.

So, is this the future of the office space solution? For the next five to ten years, this sector is definitely going to grow. What happens beyond that is subject to how the societies and economies evolves. It will be difficult to comprehend anything beyond that as technology is fast disrupting processes and systems. This trend might accelerate in the coming years and beyond that period. g Gulf Property

Digital disruption to eliminate brokerage INTERVIEW

Gulf Property Exclusive

he rapid growth in the number of property listing sites and their growing popularity – backed by digital disruption and blockchain technology might eliminate the real estate brokerage business as property buyers and sellers might not need them any more in order to reach the target audience. Industry officials say, most sale leads are currently generated by online portals and digital campaigns including social media posts that help property developers to generate enough leads for conversion to clients. The market is led by Dubizzle, Property Finder, JustProperty, Bayut.com, among many others. Zoom Property, launched this year, is a latest entrant in the market. “Although we are quite new in the market, we currently have 25,000 listings and 30,000 visitors per day, which is a very good start for us as a start-up,” says Gary Dalton, Director of Marketing. “Most of our inventories, or 70 percent are rental and 30 percent are freehold purchase.”

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Zoom Property has a team of 35 people including four in sales. Zoom Property is an online property portal and advertising platform that was created using the latest technology to provide a world-class user experience that also allows property hunters to quickly and easily find their ideal property and real estate brokers and developers to drive more leads cost effectively. “It took us 18 months to set up and we went live in May this year. We expect to reach 40,000 listings within three months when we expect to reach a break-even point,” Gary said. “These days, majority of the leads are coming from the online portals, rather than print media, outdoor media or direct cold calls. We are a one-stop shop for property search, post, lead generation for rents and sale. “However, our unique selling points include providing intelligence to the users and help them make informed choices. We also provide budget search and the system generates customised charts. “So, in a way, the customer is the king for all real estate related search, lead generation and transactions.” Gary is an experienced

“These days, majority of the leads are coming from the online portals, rather than print media, outdoor media or direct cold calls. We are a one-stop shop for property search, post, lead generation for rents and sale....”

– Gary Dalton Director of Marketing Zoom Property

marketing professional with over 20 years of experience growing businesses and working for major brands, including Disney, Hertz and General Electric. During his career he has worked with a number of startups in the UK and before moving to Dubai was a founding member of

London- based e-commerce technology company Flubit.co. He is currently driving the growth of Zoom Property. However, the fast digital transformation of the real estate business might disrupt the sector and might eliminate the brokerage sector. Dubai Land Department, which has adopted blockchain technology, is going to implement Real Estate Self Transaction (REST) that will help customers to do the transactions themselves without any human intervention – let alone that of the brokers – who might become redundant. Dubai Land Department's Real Estate Self Transaction (REST) platform by 2020 – which is an initiative as part of the 10X programme – will result in more streamlined and efficient property transactions as well as a consolidation in the brokerage business, experts say. Dubai 10X initiative, the digital platform will automate all property transactions between the buyer and seller as well as the landlord and tenant, reduce paper work and do away with the need for physical presence of parties. The Real Estate Self Transaction (REST) portal will allow landlords to sell and manage their properties

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Gary Dalton, Director of Marketing, Zoom Property

online. It includes functions like buying and selling and direct links with banks for mortgages. A database of properties will allow banks to offer a direct mortgage, deposit the mortgage in the client’s account or decommission the mortgage after a sale and purchase, according to Dubai Media Office. Landlords will also be able to rent their properties and pay for electricity, water and internet bills remotely, avoiding the need for property management and service agents.

Other functions will include the ability to appoint furnishing and decorating companies, with full access to online floor plans, and the management of all financial obligations relating to owners’ associations and approved trustees. “By removing many traditional limitations in the real estate transaction process, the smart real estate system allows landlords to trade and sell their properties anytime and from anywhere in the world,” said DLD director general Sultan Butti bin Mejren.

DLD said it was partnering with developers, banks, government entities and technology providers for the project. A team of “young Emirati professionals” is scheduled to fully develop the portal by the first quarter of 2020. Plans for a similar blockchain database system allowing tenants to rent a property without handing over cheques or physical documentation were announced by DLD in October. This will also help foreign investors to buy and sell properties from their remote

locations, without having to visit Dubai. Today, some processes require physical presence in DLD centres involving lengthy paperwork. Around 40 per cent of property owners are not based in the UAE and many sales fall through because parties are not in Dubai. Gary Dalton says, “The future of all these processes are online and the business is fast shifting to the cyberspace. Despite being a newcomer, we want to be at the forefront of this game-changing process.” g Gulf Property

PROJECTNEWS

Atif Rahman, Director and Partner of Dabube Properties

Danubeâ&#x20AC;&#x2122;s Lawnz sold out in a month! 66

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Danube Group

stablished in the year 1993, Danube Group was founded and cultivated under the leadership of Rizwan Sajan, who is the known to be the Founder and Chairman of the Group. Starting off as a small trading firm, the company is moving from strengthto-strength, expanding its foothold in the region, and has established itself as the No. 1 building Materials Company along with other branches under its vast umbrella. In 2015, the company recorded a turnover of Dh5.14 billion and has been growing ever since. Moreover, Rizwan Sajan was ranked 12th among the ‘Top 100 Indian leaders in the UAE’ List by Forbes Middle East. The company provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amounts to 5.5 million square feet and includes kiln drying facility, factory and warehouses of the group. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar and India, in addition to procurement offices in China and Canada. Danube has a team of more than 1,800 people working across strategic locations across the GCC and India. Danube Properties, part of the Danube Group, made its foray in to the real estate market in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, Glamz, Miraclz, Resortz, Bayz, Jewelz and Lawnz projects. The company currently has a development portfolio of 4,744 units, with a combined value exceeding Dh3.69 billion. Danube Projects Dreamz Glitz Residence I Glitz Residence II Glitz Residence III Starz Tower Glamz Residence Miraclz Tower Resortz Tower Bayz Jewelz Lawnz Total 11 Projects

Property Units 171 Townhouses 151 Units 151 Units 358 Units 454 Units 426 Units 599 Units 444 Units 463 Units 463 Units 1,064 Units 4,744 Units

Gulf Property Exclusive

anube Properties, a major Dubai-based property developer, announced that its latest project – the Dh550 million Lawnz – has been sold out within a month of its launch. The project, which was launched on June 20, 2018 – right after the holy month of Ramadan and Eid celebrations, created a massive interest amongst the home buyers – who sees a greater

Sales Value Dh500 million Dh135 million Dh135 million Dh350 million Dh300 million Dh270 million Dh400 million Dh300 million Dh450 million Dh300 million Dh550 million Dh3.70 billion

value in Lawnz project – a gated community that provides all luxury community facilities and services – at a very affordable price that starts from Dh290,000. “The sell-out of the Lawnz at the hot summer months – a very quiet and low season for business – is a live demonstration of the public faith in the Danube brand and the customers’ confidence in our ability to deliver quality homes at an affordable price and on time, which is very crucial for the endusers who invest their life savings with us,” Rizwan Sajan, Founder Chairman of

Status Delivered Delivered Delivered Delivered Delivery in 2018 Delivery in 2018 Under Construction Under Construction Tendering Stage Launched Launched Development/Delivery g

Danube Group, said. “This is also a strong testimony of the fact that there is no shortage of buyers if the properties are offered at the right location, right price, right payment plan and the right delivery schedule. Our industry trend-setting 1 percent payment per month, that helps the property buyers to move in to their homes after paying only around half the prices of the property – is a key to the success of our real estate projects. “This payment plan – the first in the Middle East by a private developer – is an ideal solution for the UAE’s

PROJECTNEWS “One of the key aspects of our sales strategy was to give priority to the endusers and the first-time buyers, who used to view housing very unaffordable. However, our sale strategy put them at the forefront of our massive marketing campaign – by bringing down the price barrier below Dh300,000 for the first time in recent history...”

– Atif Rahman, Director and Partner of Danube Properties

middle income households who were priced out by luxury developments. Danube Properties believes in inclusiveness and sees affordable homes as the future of the real estate market in the UAE.” Lawnz, Danube Properties’ 11th project – the Dh550 million Lawnz at the International City – comprises of 1,032 units that raises its portfolio to 4,744 units with a development value exceeding Dh3.7 billion, spread across 11 successful projects. Construction of the project is expected to start in 2018 Gulf Property

PROJECTNEWS

with completion in 2020. Lawnz is Danube Properties’ first project at the International City and its first gated complex. The Dh550 million Lawnz offers 1,032 residential units, ranging from studio, one and two-bedroom apartments. The project is conveniently located at the International City Phase 1. The Super lavish amenities include a massive 3.8 Acres Promenade which offers Canal, Sunken Plaza, a fully equipped health club, swimming pool, steam and sauna room, multi-purpose hall, jogging track, barbecue deck, bad-

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minton court, multi-purpose court and a high tech surveillance system for the protection and security of the residents. The property also comes with a 42 metres wide entrance and outdoor cinema. Among the residential units, 50 percent of the units are studio apartments while 40 percent are one-bedroom apartments and 10 percent are two-bedroom apartments. The building design and architectural aesthetic was created to reinforce the design strategy of Danube, which helps maximise the living space while delivering con-

venience of community living. The project dedicates 50 percent space to open areas with an emphasis on greenery and landscapes. Atif Rahman, Director and Partner of Danube Properties, says, “The customer response for the first phase of the project – about half of the total inventories – were amazing and overwhelming. However, the response to the second phase was even better – so much so that we sold 350 units in 4 hours – an industry record! “One of the key aspects of our sales strategy was to give priority to the end-users

and the first-time buyers, who used to view housing very unaffordable. However, our sale strategy put them at the forefront of our massive marketing campaign – by bringing down the price barrier below Dh300,000 for the first time in recent history. “As a developer, we work for the home buyers – our biggest stakeholders – and it is important to make them feel at home with our properties and our approach. It is exactly what we have done with Lawnz sales and I am glad that we now have a large customer pool who earlier could not think of buying

PROJECTNEWS

a home in Dubai. Now they have bought their dream homes – thanks to Danube Properties.” Danube has delivered 831 properties so far including the handover of 302 units within Glitz Residences 1 and 2 and 358 in Glitz Residences 3 as well as 171 townhouses at Dreamz project till March 2018. It will deliver a further 870 units later this year. Danube Properties, part of the Danube Group, entered Dubai’s real estate market in June 2014 with Dreamz at Al Furjan – which was sold out at launch. Established in

1993, Danube Group, the UAE’s largest supplier of building materials and home furnishing, this year celebrates 25th anniversary. In 2017, Danube awarded five construction-related contracts with a combined value exceeding Dh392 million a year it started delivering homes. These include a Dh221 million main construction contract recently awarded for Miraclz Tower near Miracle Gardens at Arjan that will host 599 units including 591 apartments. Danube Properties also awarded a Dh146 million contract for the main con-

struction package for the Resortz project. The 17-month contract will see the project gets ready for occupancy by the second quarter of 2019. Resortz will host 444 units including 419 apartments, 25 retail outlets, landscaped environment that appears more like a five-star resort, than a residential compound. Danube Properties has so far launched 11 residential projects, of which four have been delivered, two are getting ready for delivery while four others are at various stages of construction and one in tendering stage. The company has one of

the fastest development-todelivery ratio in the region’s real estate market where timely delivery of properties remains a major challenge. That way, Danube Properties’ performance in construction and delivery is helping strengthen buyers’ trust in real estate. Established in the year 1993, Danube Group was founded by Rizwan Sajan. Starting off as a small trading firm, the company is moving from strength-to-strength, expanding its foothold in the region, and has established itself as the No. 1 building materials company. g Gulf Property

CITYSCAPE

Property developers will be allowed to sell properties at the Cityscape Global exhibition

Real estate market adapts to changes

Gulf Property Exclusive

sense of looming oversupply and subdued demand in the residential real estate sector might be overshadowed by the recent announcement by the government authorities and regulators on a series of stimulus package including a ten-year residency for foreign investors, waiving of fees and fines and might help the real estate market to bounce back, according to a

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top official. Dubai Land Department’s first half-year report shows a 15.9 percent decline in the overall value of land and property transactions, declining to Dh111 billion from Dh132 billion recorded in the first half of 2017. Due to the lull summer months, the positive impact of the latest government initiatives to reduce cost of doing business and other steps, is yet to be seen. As most holidaymakers return to their seats this month, we might see the impact in the coming months and weeks. However, the recent sell

out of 1032 residential units at Lawnz – the latest project launched by Danube Properties, reflects a fundamental shift in the real estate – that the market has really shifted towards affordable homes. Despite the odds, the real estate stakeholders remain positive and the upcoming Cityscape Global exhibition will help everyone to test the market mood, like every year. That’s why Gulf Property caught up with Tom Rhodes, Cityscape Global Exhibition Director, to assess the market. the 17th edition of ‘Cityscape Global’ returns to

the Dubai World Trade Centre from 2-4 October. The event, which will span across 41,000 square metres of exhibition space, is expected to attract a wave of real estate investors from 100 countries, including a list of new and returning heavyweight developers who will showcase hundreds of project launches. Tom Rhodes is an Exhibition Director at Informa Middle East, working on the Cityscape portfolio for six years, looking after Cityscape Global, Cityscape Abu Dhabi, Cityscape Egypt, Cityscape Turkey and

CITYSCAPE

“Over the past year, the industry has adapted to many changes in the market due to the financial adjustment and the introduction of Value Added Tax which saw a reduction in activity and performance in the real estate market because of uncertainties around the impact of new taxes. The real estate industry in the UAE is in a transition phase, with VAT now in place and key stakeholders seeking to unwind their short and long-term impact.”

– Tom Rhodes, Exhibition Director, Informa Middle East

Tom Rhodes, Exhibition Director, Informa Middle East, organiser of Cityscape Global

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CITYSCAPE

Cityscape Korea. He has also worked closely on other Informa events around the region including City Build, Future Makkah, and Next Move. Tom gained a bachelor’s degree in Sports Management, gaining prior experience before moving to Informa working in sports events and hospitality at The British Open, and F1 events as well as working for the Yorkshire Country Cricket Club. In an exclusive interview with Gulf Property, Tom Rhodes, Exhibition Director, Cityscape Global, elaborates his thoughts. Excerpts:

What is your view of the real estate market in the UAE and in Dubai – in view of the overall slowdown marked by declining rents, prices, weak demand and an oversupply in the market? Over the past year, the industry has adapted to many changes in the market due to the financial adjustment and the introduction of Value Added Tax which saw a reduction in activity and performance in the real estate market because of uncertainties around the impact of new taxes. The real estate industry in the UAE is in a transition phase, with VAT now in place and key stakeholders seeking to unwind their short and long-term impact. Although VAT does not apply to residential leasing or sales of new residential properties, other real estate sectors can be adversely affected by increased costs and cash flow challenges. According to JLL’s UAE Real Estate Market Overview for 2017, most of the sales in the residential sector concentrated in the off-plan sec-

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tor, with developers offering particularly attractive prices and payment plans. A total of 25,600 properties were purchased in Dubai last year, with 2017 set to record the highest number of off-plan sales in Dubai since 2008. The good news is that the recent announcement that foreigners will be able to operate companies outside of free zones with 100 percent ownership, as well as the introduction of a new 10-year residency visa for certain professions will play a key role in strengthening the economy and maintaining stability.

These changes will lead to an increased demand for commercial property as businesses look at options to purchase instead of renting, and the long-term visas will see a rise in global competitiveness as the UAE positions itself as a gateway to the rest of the region for investors and international companies. What is your view of the real estate market in the GCC? Saudi Arabia is building a large cluster of homes for the Saudi nationals. How is this going to stimulate the market?

Over the past year, the GCC market has become more flexible in the face of broader economic challenges. While the government and organisations have adjusted to be more cautious, there are signs of improved sector expectations by the end of 2018. Saudi Arabian real estate initiatives housed under the country’s Vision 2030 such as the National Transformation Program and the Quality of Life Program have laid out ambitious roadmaps to catalyse the Kingdom’s economic diversification and stimulate growth in the private sector.

CITYSCAPE

this time in terms of the number of halls that it will spread across or the gross exhibition floor space? We always encourage our exhibitors to really think about what space they need to support and launch the projects they plan to showcase. This year, some exhibitors are changing the way they are participating in the show by growing their space significantly. Visitors to the event this year can expect the same overall floor space as last year, with companies spread across eight halls in the Dubai World Trade Centre – Exhibition Halls 2 to 6, Sheikh Saeed Halls 1, 2, and 3, and the Trade Centre Arena. Last year we welcomed over 45,000 participants from 100 countries, and with preregistered visitors and organisations already signed up, we’re or track to match those numbers for 2018’s event.

Looking at what Dubai has done for real estate, the Dubai Land Department announced in April that in line with diversification efforts in the country, it will develop a new mortgage and financing law to stimulate investment and simplify financial mechanisms in the real estate sector, which has been recognised as a major milestone for the industry. This will enhance the real estate market in the UAE and around the region as it will no doubt lead to a significant inflow of capital from both local and international investors.

Dubai’s property market is still a magnet for foreign investment. There are talks of Chinese capital flight into the UAE, especially after the latest visit of Chinese President Xi Jinping. What do you think? The Dubai Land Department has played an important role in strengthening the alliance between the UAE and China over the past decade by working with its partners to attract more Chinese investors and identify investment opportunities in Dubai and the UAE. Our recent signing of the MoU with the DLD enables

us to support both of our efforts into more international markets. China is a market that we do want to go into and we will need to bide our time and enter it the right way. Chinese developers are now starting to come here with PPP models running in Dubai. We hope to see more Chinese incubation companies coming to Dubai and allow developers to use their infrastructure and connections with the government to launch their projects here in the Middle East.

How big will Cityscape be

Will the major UAE developers participate at the Cityscape Global? Major UAE developer such as Azizi Developments, Binghatti Developers, Bloom Holdings, Damac Properties, Jumeirah Golf Estates, Meydan, Tilal Properties and Union Properties will all be present during the show. Given the calibre of developers and companies taking part, we’re excited for the spread of projects that will be launched and shown off over the three days. While there has been a shift over the past few years into the affordable housing space we are now seeing a list of projects that range in price points and appeals to different end-users.

Last year Emaar did not participate. Is the company participating this year? Last year, Emaar took the Gulf Property

CITYSCAPE

decision to focus their marketing efforts into their digital platforms and this will also be the case for 2018. Emaar has always been a big supporter of the show and continues to be involved in other Cityscape events in the region. Our aim is to develop our professional relationship as both Emaar and the Cityscape brand explore opportunities in other successful markets around the world. Will you allow buying and selling of properties at the Cityscape? Can the buyers come and sign Sale and Purchase Agreement and sign the cheque on-site within the Cityscape? On site sales were a resounding success last year and it played a significant role in keeping the show relevant for visitors in a hugely competitive market. It will be possible to buy property at Cityscape Global this year, and its return has been welcomed by all the stakeholders of the show.

Are you going to levy an entry fee to the visitors? Entry to Cityscape Global is free to all those who pre-register in advance on the website. This is a simple, quick process online and provides visitors easy access. For those who haven’t preregistered, an on-site fee of Dh100 is applicable. All visitors can attend the free Cityscape Talks sessions held on the show floor which will offer insights and expertise shared by numerous high-level representatives and industry experts.

How will the latest deal with Dubai Land Department help Cityscape? Will you see investment from new markets entering

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Dubai’s real estate? Our recent signing of an MOU with the Dubai Land Department to support the local market will open up opportunities for us to support our clients in reaching as many investors and attract overseas brands, which will boost confidence in the shows that we run around the region. Over the past few months, we have seen a trend of cooperation in the industry, which has contributed to a positive investor sentiment, for example Aldar Properties and Emaar Properties signed a partnership to develop in-

novative projects worth Dh30 billion - a factor that will undoubtedly move the market forward. Additionally, we saw Savills UK acquire Cluttons Middle East in June this year to help them reach a wider audience in the Middle East.

International participation at Cityscape Global has shrunk considerably. How will foreign participation be this year? We are constantly monitoring the top five to ten areas for investment both into and out of the Middle East region. Investor interest continues to remain strong.

For us, the UK and European markets are very important going forward, and while we don’t currently have a presence from the US within the show, it remains high on the list of Middle East investment going out. This year, we signed a MOU with Egypt, naming it the country of honour at the 2018 edition of Cityscape Global. The agreement was made to shine a spotlight on Egypt’s economic and social development at Cityscape Global. Visitors to the event will be able to learn more about the range of investment opportunities in Egypt-

Sultan Butti bin Mejren, Director-General of Dubai Land Department and Tom Rhodes, Exhibition Director, Informa Middle East, organiser of Cityscape Global, signing a MoU to expand cooperation

CITYSCAPE

DLD and Informa to promote Dubai realty

ian real estate, find out about new projects and new cities such as ‘Capital City’. Malta’s government run initiative will feature a number of developers showcasing projects from the stand. Malta is now considerably active with its offering of citizenship and passports which are still very relevant to this region. They are new to the business of offering golden visas and will join other countries represented at the event such as Spain, Portugal, Cyprus, Hungary, and Bulgaria. In addition, we will also have exhibitors from Canada and Hong Kong. g

ubai Land Department (DLD) has announced a Memorandum of Understanding (MoU) with Informa Middle East, organiser of the region’s foremost real estate platform, Cityscape to promote Dubai as an attractive regional and international investment destination. The strategic agreement was signed by Sultan Butti Bin Mejren, Director General of DLD, and Tom Rhodes, Exhibition Director at Cityscape. The new agreement aims to focus its efforts on promoting Dubai as an attractive regional and international investment destination, and strengthening its position as a prime investment hub. The agreement will also highlight the scope of real estate investment opportunities and showcase major projects to regional and international investors across all markets in the Cityscape portfolio. The

MoU will additionally see DLD partner with various events within the growing global Informa portfolio. Sultan Butti Bin Mejren, Director General of DLD commented: “Dubai ranked highest on the list of global cities that are most attractive for foreign direct investment (FDI). As a result, Dubai has rapidly evolved into a global business and investment hub, and DLD looks forward to strengthening our Emirate's position and achieving consistent success in the industry, ensuring the sustainable growth of our real estate sector. “Our partnership seeks to reinforce confidence in the emirate’s real estate sector by attracting FDI, demonstrated by the hard work and economic vision has achieved in catapulting the Emirate as a regional and international investment destination, especially with Expo 2020 on the horizon.” Tom Rhodes, Exhibition

Director at Cityscape, said: "Dubai is truly an important hub for investors from all over the world thanks to its buoyant economy, advanced infrastructure, high ROIs, transparent investor environment, and the legal and legislative structure that guarantees the rights of all parties. Regional and international investors are looking to invest in cities with these unique ingredients, and the ability to adapt to the demands of global markets and investors’ expectations makes Dubai a shining example. Cityscape runs events across the MENA region and international markets, and has become the trusted meeting point for the property market to stimulate cross-border investments. The portfolio of events attracts a dynamic list of investors, homebuyers, developers, government authorities, and real estate professionals. g Gulf Property

GULFTOURISM

Warner Bros. World comes to Abu Dhabi

Gulf Property Exclusive

he US$1 billion (Dh3.67 billion) Warner Bros. World theme park opened in Abu Dhabi’s Yas Island with a formal inauguration by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the

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UAE Armed Forces. “The Warner Bros. World Abu Dhabi is the world’s firstever Warner Bros. branded indoor theme park developed by Miral, Abu Dhabi’s creator of destinations, in partnership with Warner Bros. Entertainment, with an investment of $1 billion,” said a company spokesperson. The two leaders attended the official inauguration ceremony, which took place at the Warner Bros. Plaza within Warner Bros. World Abu Dhabi. Sheikh Zayed bin Ahmed bin Zayed Al Nahyan, Sheikh Saif and Sheikh Ahmed bin Hamed bin Zayed

Al Nahyan then took the stage alongside some of the park’s iconic DC and Warner Bros. Animation characters to press a button marking the official opening of the theme park, which is expected to draw in thousands of guests including residents and tourists of all ages. Following the opening ceremony Sheikh Mohamed bin Rashid and Sheikh Mohamed bin Zayed toured the park, which officially opened to the public on July 25, 2018. The opening of the Warner Bros. World Abu Dhabi marks the latest addition to Yas Island’s offering of

world-class tourism and entertainment attractions, and serves to strengthen the island’s position as a leading leisure and entertainment destination in Abu Dhabi, further enhancing UAE’s distinguished position on the world map. During the tour, their Highnesses were briefed on the many elements which help bring the park’s immersive environments to life across its six lands. From the meticulously curated musical arrangements to the faithfully created landscapes, each land is uniquely designed to truly immerse guests in the

GULFTOURISM

places they’ve seen in movies, comic books and on TV. “This is a milestone moment for us as we continue to cement Abu Dhabi’s positioning as one of the world’s leading family and tourism destinations. I am confident that the addition of this theme park to our already rich portfolio will further enhance Yas Island’s offering,” said Mohamed Khalifa Al Mubarak, Chairman of Miral. Filled to the brim with endless family fun and adventures, the park transports guests to six expertly designed lands, including DC’s

Metropolis and Gotham City, as well as Cartoon Junction, Bedrock, Dynamite Gulch and Warner Bros. Plaza. Home to a total of 29 exhilarating rides, interactive family-friendly attractions and unique live entertainment shows, the park will offer an incredible range of themed experiences. Guests will also enjoy authentically themed dining experiences, from grab-and-go eateries to full-service sitdown restaurants and cafes, as well as custom designed shops featuring bespoke Warner Bros. merchandise inspired by fan-favorite char-

acters, some of which has been developed exclusively for the park. “Warner Bros. has an almost-100-year legacy of producing and distributing high-quality entertainment to global audiences, and this world-class attraction continues that tradition in grand style,” said Kevin Tsujihara, Chairman and CEO, Warner Bros. “Warner Bros. World Abu Dhabi literally brings our characters to life and provides fans a truly unique immersive entertainment experience. We couldn’t have better partners than our

colleagues at Miral, and we look forward to continuing our longstanding relationship,” he continued. The world-class theme park brings to life fanfavourite DC Super Heroes like Batman, Superman and Wonder Woman, alongside beloved Warner Bros. Animation characters from Looney Tones and HannaBarbera like Tom and Jerry, Scooby-Doo and The Flintstones, using state-of-the-art technology to create truly immersive environments and unforgettable experiences. The excitement begins in Warner Bros. Plaza, where guests can meander the streets of the art deco themed portal to the various lands of Warner Bros. World Abu Dhabi. Guests can enjoy the gleaming urban landscape of Metropolis, where they can revel in the heroic optimism of the Justice League – whose members include Wonder Woman, Green Lantern and The Flash. Warner Bros. World Abu Dhabi is the latest addition to Yas Island’s immersive theme parks including Ferrari World Abu Dhabi, Yas Waterworld Abu Dhabi and the upcoming attraction, CLYMB. These are complemented by: Yas Marina Circuit - one of the most technologicallyadvanced Formula 1 circuits in the world; Yas Marina - a vibrant venue offering dining, fitness and leisure facilities; Yas Mall – the largest shopping mall in Abu Dhabi with 400 retail stores; Yas Beach; and, Yas Links Abu Dhabi – the 46th golf course in the world, as well as seven sophisticated hotels ranging from 3 to 5 stars. g Gulf Property

SPOTLIGHT

ulf investors will now be able to tap the US$88.23 billion (INR6 trillion) affordable housing market following a tie-up between Mi Capital, a Dubai-based financial institution dealing in corporate finance, capital restructuring, mergers and acquisitions, and Life Insurance Corporation Housing Finance Ltd. Asset Management Company (LICHFLAMC), a subsidiary of LIC – India’s largest insurer and financial institution with US$386 billion worth of Assets Under Management (AUM). The Middle East has one of the highest concentration of High Net Worth Individuals (HNWIs) and family businesses with a large portfolio of investments scattered in different parts of the world. According to World Wealth Report 2018, the HNWI population in the Middle East exceeded 656,350 with US$2.5 trillion worth of collective wealth that looks for lucrative investment destinations. “With Indian economy growing at more than 7.5 percent per year, it is a good time for Gulf investors to look at the excellent opportunities offered by the growth of the Indian economy,” Sheetal Soni, Chief Executive Officer and Managing Partner of Mi Capital, says. “While a good number of investors including companies and institutional investors investing in private ventures in India, we have tied up with LICHFLAMC – to offer best direct and indirect investment opportunities, without going through the usual complexities. Many in-

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Mi Capital helps India’s $88b housing market vestors in the past faced daunting challenges in the field of project implementation due to the local conditions, we and our partners in India ensures that the project execution goes through smoothly and the internal rate of returns remain healthy, he pointed out. “Working with right partner can help significantly in dealing with complexities of the Indian market, getting right deal flows on table, right structuring of the transactions, mitigating risk in the project, protecting from potential leakages etc.,” Soni says. “The recent Indian Government initiatives such as the Goods and Services Tax (GST) as well as the enactment of Real Estate Regulatory Act (RERA) and the launch of escrow account are helping in cleaning up the system and simplifying business processes that are helping the country attract more foreign investment. We see this as a great opportunity for the GCC investors to enter Indian market. Mi Capital is currently developing a strong corridor for investment in to India.” Total private equity deal value in 2017 rose $9.6 billion higher to $26.4 billion in 2017 compared to $16.8 billion in 2016, the highest ever in India. The investment value increased 57 percent, according to the latest Bain & Company report. Urban India today houses 377 million people, constituting 32 percent of the country’s population, with an annual addition of 8 million as per Census 2011. This is further estimated to increase

Sheetal Soni, Chief Executive Officer of Mi Capital

to 40 percent with a population of close to 600 million living in the urban centres by 2030. The Indian real estate market is expected to touch $180 billion by 2020. Housing sector is expected to contribute around 11 per cent to India’s GDP by 2020, according to a report. The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. Private equity investments in

real estate are estimated to grow to $100 billion by 2026 with tier 1 and 2 cities being the prime beneficiaries. Private equity investments in Indian real estate increased 15 per cent year-onyear in January-March 2018 to $2.56 billion. According to the Department of Industrial Policy and Promotion, the construction development sector in India has received Foreign Direct Investment inflows to the tune of $24.67 billion in the period April 2000-December 2017. g

Yardi gets new deals & recognition in UAE

lobal real estate technology firm Yardi has recently been recognised the Real Estate Software Management Company of the Year award at the 2018 Arabian Business Real Estate Awards in Dubai Hosted by Arabian Business, a weekly business magazine published in Dubai, the awards honour the most accomplished companies and senior executives from around the region. The real estate awards ceremony took place at the Ritz Carlton, Dubai and celebrated one of the fastest growing industries in the UAE. Drawn from a select group of over 600 companies and individuals, 21 awards were handed out across a variety of real estate sectors. Said Haider, Yardi regional

sales director for Middle East, accepted the award on the company’s behalf. “We are honoured to receive this prestigious award from Arabian Business. Yardi has a proven track record of success across the Middle East, as we provide customer solutions that repre-

sent the best use of technology and innovation for commercial and residential real estate,” Haider said. Meanwhile, the company has also won a number of contracts to best manage real estate assets through its industry-leading software platforms. g

l Zarooni Group of Companies, which holds diversified real estate assets spread across various industries, will adopt Yardi Voyager as its new property management and accounting platform for the Group’s large commercial and residential portfolio in the UAE. The Group is one of the largest contracting companies in Dubai and is also well known for its residential, mixed-used communities and co-ownership of Dubai Sports City. The Group has large interests in the retail sector and is recognised for its development of innovative shopping malls, such as Mercato and

Town Centre Jumeirah, in Dubai’s first-class locations. “The UAE has recently witnessed phenomenal growth and with 2020 on the horizon, there is a lot of focus on Dubai, its future and the opportunities ahead,” said Rui Coelho, Group CFO, Al Zarooni Group. “Technology will play a huge role in Dubai’s future and especially in the way we manage real estate. As such, we are delighted Yardi will help us innovate our operations.” The Group will automate its management operations by implementing products from the Yardi Commercial Suite and Yardi Residential Suite in addition to Yardi Voyager. It

will also utilise other integrated Yardi solutions, including: Yardi Leasing Manager, Yardi PAYscan, Yardi Advanced Budgeting & Forecasting, Yardi Orion Business Intelligence, Yardi Advanced Maintenance, RENTCafé and COMMERCIALCafé. “The UAE embrace of the digitalization of real estate management is very exciting right now,” says Neal Gemassmer, vice president of international for Yardi. “The vision for 2020 is driving some very innovative developments and we look forward to continuing to provide solutions that further streamline operations and support the real estate economy.” g

Said Haider, Regional Sales Director of Yardi Middle East

Yardi wins Al Zarooni deal

SPOTLIGHT

Dubai seeks more rooftop solar panels

ollowing the success of the flagship Safaqat project in Hatta, whereby 640 villas were retrofitted with solar rooftop panels, Dubai is now extending this innovative approach across additional buildings and villas. The Safaqat programme will support the implementation of solar rooftop panels on buildings across the UAE, with demand coming from Hatta and residential villas in Dubai. Safaqat is the solar revolution enabler for the UAE and falls under the Shams Dubai initiative. Under Safaqat, eligibility is only possible when the savings are more than the cost of the hardware over its usable life. Each Safaqat deal will cost less for the end user by comparison to their pre purchase scenario. The solar rooftop panels are photovoltaic (PV) panels, which generate electrical power by using solar cells to convert energy from the sun into a flow of electrons. Solar cells produce direct current electricity from sunlight which can be used to power equipment or to recharge a battery. When installed on the villas, the PV panels will result in the reduction of 50 tonnes of carbon emissions, equivalent to the planting of 500 trees, whilst installation on the buildings results in the reduction of 130 tonnes of carbon emissions, equivalent to planting 1,300 trees. g Gulf Property

SPOTLIGHT

Eshraq back in the black

shraq Properties, reported a net profit of Dh14.8 million for the first half of 2018 versus a net loss of Dh0.32 million for the same period last year. The results are the best half-yearly results for the Company since the first half of 2014 and a further confirmation of the successful turnaround story that Eshraq has embarked on under the new leadership. Eshraq is working on optimising its capital structure; and for that purpose, the Board has recommended a share buy-back programme. The buy-back will then be presented for shareholders’ approval at the next AGM. Eshraq is making steady progress across all its major projects in Abu Dhabi and Dubai, and looks forward to completing these on time and within budget. Eshraq’s Hospitality and Leasing Portfolios performances were key in achieving the Company’s stellar results. For the first half of 2018, Nuran Marina hotel apartments achieved an occupancy rate of 91.3 percent. On the leasing front, Eshraq has achieved an occupancy ratio of 96.5 percent across its leasing portfolio Eshraq’s Chairman Jassim Alseddiqi said: “Eshraq’s half-yearly results show the extent of work that has been done to stabilise the company and allow it to benefit from the opportunities offered by the real estate sector in the UAE.” g

Gulf Property

Creek Marina gets ready for opening The Creek Marina at Dubai Creek Harbour will open in December

ubai Creek Harbour has unveiled one of the world’s finest city-harbour getaways, the Creek Marina in the heart of Creek Island Dubai, the premier residential and leisure district of the six square kilometer mega-development, only 10 minutes from the Dubai International Airport and the iconic Burj Khalifa in Downtown Dubai. With spectacular views of the Downtown Dubai skyline as well as the Dubai Creek, the waterfront destination will be home to elegant residences, sweeping landscaped parkland, gourmet restaurants, cafes and entertainment venues. A winding boulevard encircles the Creek Island Dubai delighting residents and visitors with a breadth of unparalleled lifestyle choices. Several construction mile-

stones have been achieved on the various residential developments in Dubai Creek Harbour. Creek Marina is set to open in December this year, even as preparations are ongoing to welcome the first residents in Dubai Creek Harbour early 2019. At Creek Marina, you explore, you dream and discover a new way of life by the very heart and soul of the city, the historic Dubai Creek, the cradle of commerce and culture. Creek Marina is also adjacent to the Ras Al Khor Wildlife Sanctuary, a haven for migratory birds including the famous pink flamingos as well as soothing stretches of mangroves. Nearly three-fourth of a kilometre long and about a quarter wide, the Creek Marina is billed to be the new Riviera of the Middle East. With its oyster design, a throwback to the city’s rich

pearling history, it will serve as a refreshing new leisure destination for visitors to Dubai from all over the world, and residents in Dubai Creek Harbour. Creek Marina will have a capacity of over 81 singleand double-berths and will feature a dedicated worldclass Yacht Club with an impressive array of shopping and dining facilities. Facilities such as fuelling services, upgraded power outlets and pedestal units will ensure smooth sailing for all throughout the year. Creek Marina will also offer a dazzling selection of highend retail, dining and leisure venues. Its vibrant promenade will welcome visitors with palm trees and will feature trendy cafes, high-end restaurants, fashion outlets and street-food vendors too, pampering visitors with choices never-before. g

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