DUBAI OVERVIEW
Introduction to GCC, UAE & Dubai Currency Formation Government Structure of Dubai
Regulatory Authorities in Dubai Dubai’s Roads: City’s Lifeline
Mortgage in Dubai
Geographical Expansion & Economic Diversification of Dubai
Micro Markets of Dubai
Dubai Real Estate Market Over a Period of Time
Terms & Terminologies
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The Gulf Cooperation Council, commonly known as GCC, was established in 1981 to promote cooperation among the GCC nations as part of a unified economic agreement. GCC members include the countries of • Bahrain • Kuwait • Oman • Qatar • Saudi Arabia & • The United Arab Emirates
Introduction to GCC, UAE & Dubai
UAE The United Arab Emirates (UAE), is a constitutional federation formally established on December 2, 1971. UAE consists of seven emirates: • • • • • • •
Abu Dhabi Dubai Sharjah Ajman Umm al-Qaiwain Ras al-Khaimah Fujairah
Map of UAE
Emirates of UAE Abu Dhabi, Dubai and Sharjah are the three largest Emirates of UAE, constituting more than three-fourth of the country’s GDP
DUBAI Dubai is the second largest Emirate of UAE after Abu Dhabi
It is globally recognized as the international hub of the Middle East & North Africa (MENA) region
History of Dubai •
• • •
• •
Modern Dubai came into existence in 1833 as a separate Sheikdom, under the leadership of Al Maktoum Clan (The present ruling elite) The Initial economy of Dubai was primarily based on pearl trading After the discovery of artificial pearls & the Great Depression in 1929, Dubai’s pearl trading business was hit hard This led the emirate to look out for alternate source to support its economy. With an extensive coastline (>> 1300 KMs), Dubai emerged as a re-export trading hub during 1940s & 50s. However, it was 1966 that changed the course of History – the year when oil was discovered in the Emirate.
Currency Formation
• Before the formation of UAE federation- There were multiple currency types- Pound, Riyal & Indian Rupee • Later on Dubai started using Qatari Riyal • In 1993, Emirati Dirham was introduced
Government of Dubai • Dubai is a constitutional Monarchy, belonging to federation of UAE. • Officially the Emirate was formed in 1971. • It constitutes 8 out of 40 members of the Federal National Council of UAE- The Supreme body that reviews all the laws in the nation. • The current ruler of Dubai is HH Sheikh Mohammed Bin RashidAlso the PM & VP of UAE. • The Government manages a range of Services- Defence, Law & Order, Aviation & Trade.
Functioning Style of UAE Government • • •
•
Dubai Government is known for its entrepreneurial spirit (Forbes, 2015) It is known for making Swift & Prudent decisions It is known for its commitment to keep Dubai as a WorldClass City A major source of government income is state run enterprises, that operate as MNCs
Geographical Expansion & Economic Diversification of Dubai: Early Economy in Dubai Creek
Early Economy : Dubai Started around Dubai Creek. It was a pearling village with trade and reexport being the key economic contributors till discovery of oil in early 1960’s.
Geographical Expansion & Economic diversification of Dubai: Economy shifts to Sheikh Zayed Road
Undergone modernization and urbanization : Since 1980 Dubai has focused on being an International –quality tourist destination with unmatched hotels, architectural wonders, world class entertainment and sporting events.
Geographical Expansion & Economic diversification of Dubai: Economy moves southwards
2010 Onwards a new economic momentum arises in the South of Dubai- World Expo 2020, New Airport, String of Free Zones, Affordable Luxury
Dubai Timeline 1971: Dubai & Abu Dhabi along with 5 other Emirates forms UAE
1970s & 80s: Oil played a principal role in economy, contributing over 50% of GDP
Mid 80s: Dubai started making footprints on global trade
2000: An era of Exponential Economic Growth
1973: Introduces Dirham, the common currency across the nation
Early 80s: Jebel Ali declared as 1st free trade zone
1999-2002: Dubai emerges as the Financial & Media capital of ME
2002: Dubai emerges as a global real estate hotspot
Dubai Timeline 2002-08: Population doubled, Urban footprint Quadrupled
2006: Burj Khalifa, World’s tallest building comes to life
2007: Nearly 200 nationalities reside in Dubai
2009: Economic meltdown, with property prices slashed by 50%
2014: Economy bounces back with more vigor
2020- Dubai Expo Awaited
DUBAI in numbers 10 year
GDP
Per Capita Income over
growth rate of
$20,000
8%
highest
Average
among the world
100% ownership in free zones for expats
No foreign exchange controls, trade barriers or quotas
No Corporate and Income Tax
Diversified economy Oil and Gas sector contributes only 6% to GDP
Access to a huge talent pool of
13.8 million skilled workers
80% of world population reside within 12 hours of Dubai
Internationally renowned sports facilities including golf, tennis, water sports, horse riding, dune driving and sand skiing.
DUBAI’s Economy Dubai’s economic key drivers include, trade, aviation, real estate & construction, tourism & retail etc. Robust economy has resulted into large volume of human capital & ventures coming from all across the globe. This in turn is driving the real estate industry
Free Zones: A Key economic enabler The creation of free zones has also acted as a major catalyst for local and foreign investment in Dubai’s real estate. Free Zones offer incentives such as 100% foreign ownership, one-stop locations for paperwork and other procedures & much more
DUBAI This sector has also been buoyed by the increasing investment in infrastructure, country’s positioning as an attractive tourist destination & large traction of commercial & retail units
Price ďƒ
Dubai Real Estate Cycle Escalation in Prices: Driven by a supply shortage and strong capital inflow
Recovery in Prices: Strong investment perspective
2008
2006
2010
Timeline ďƒ Decline in Prices: Triggered by the global financial crisis
Market Stabilization & Price Correction Significant Appreciation expected: EXPO 2020
2012
Current
Regulatory Authorities in Dubai Dubai Land Department (DLD) prepares all the necessary legislations required to propel as well as regulate the real estate sector in Dubai. It also organises and promotes real estate investment and disseminates knowledge.
Real Estate Regulatory Agency (Regulatory Arm)
Real Estate Investment Management & Promotion Centre (Investment Arm)
Dubai Real Estate Institute (Education al Arm)
Rental Dispute Centre (Judicial Arm)
Dubai Land Development Real Estate Regulatory Agency (Regulatory Arm) • •
• • •
Regulating and licensing real estate activities Regulating & managing real estate developers trust account Licensing real estate agents Registration of rental agreements Regulating real estate exhibitions
Real Estate Investment Management & Promotion Centre (Investment Arm)
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•
•
Helps real estate companies in marketing Promote city’s real estate to the globe Propagate investment avenues
Dubai Real Estate Institute (Educational Arm)
Rental Dispute Centre (Judicial Arm)
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•
•
•
Offers real estate courses and certifications to professionals Updates new trends and regulations in the realty sector Estimates the future needs of realty sector
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Employs new and flexible methods for dispute resolution Provides speedy dispute resolution Facilitates greater accuracy with settlement issues
DUBAI’s RoAD, City's Lifeline Jumeirah Beach Road
Jumeirah Beach Road (also sometimes known as the Jumeirah Road) is right by the beach
Parallel to Jumeirah Beach Road is the Al Wasl Road
The most popular and populous road of Dubai – It contains much of Dubai’s architectural and infrastructural achievements (Burj Khalifa being the most visible one!). The first and the main line of the Dubai Metro (the Red line) also goes along the road.
Parallel to this road is the Al Khail road which is more of an industrial highway and goes from the Business Bay Crossing in Deira all the way up to Jebel meeting at Sheikh Mohammed Bin Rashid Road
Sheikh Mohammed Bin Rashid Road (formerly known as the Emirates Road) – Sheilkh Mohammed Bin Rashid Road is the second last parallel road to the ones mentioned above
Parallel to this is now Emirates Road (formerly known as the Outer Bypass Road)
Major districts
Deira — Dubai's old Financial Centre, today’s Deira is a bustling commercial-residential district with some old souks, including the ones specializing in spices
Major districts
Mirdiff/Mirdif — A commercial-residential district which is somewhat newly built and lies directly under the flight path to Dubai International Airport. Mirdif City Center is one of the attractions. This is another residence for the well-to-do
Major districts
Karama — More of like a mixed commercial residential district, one of Dubai's Little Indias and Little Manilas- Economic eats and buys are the top things here
Major districts
Bur Dubai — A historical district, Bur Dubai is usual term for the area from Jumeirah to the creek, the creek separates Bur Dubai from Deira. Tourist attractions from abras to souks to floating restaurants to the famous Hindu Temple are found here
Major districts
Satwa — Dubai's another Little India and Little Manila, due to the presence of Indians and Filippinos- Number of Indian restaurants, shops, supermarkets are seen here. Gold and textiles is what people come here for with the Gold Souk & various individual retail units.
Major districts
Jumeirah — A diverse district whose residents are the Europeans to the Filipinos to the Pakistanis; making it a mixed Little Europe, Manila & Karachi. Jumeirah is much favored by Europeans due to the ease of access of the beach & Beautiful villas. Jumeirah Beach, Jumeirah Beach Residence's the Walk and Jumeirah Mosque are the top attractions
Major districts
Downtown Dubai — While Bur Dubai and Deira are traditionally considered "Downtown", the Downtown Dubai development is in the center of the "New Dubai," between Dubai Marina on the south end and the border with the city of Sharjah to the north. It includes the Burj Khalifa (tallest building in the world), the Dubai Mall (world's biggest), Dubai Fountain, and lots of other skyscrapers and hotels
Major districts
Emirates Hills —Upmarket residential area known for high rents.
Major districts
Dubai Marina — is a mega-development that borders Jebel Ali (the world's largest man-made port). It is full of skyscrapers and hosts the "Jumeirah Beach Walk" with a number of restaurants, hotels and a open-air market. Dubai Marina houses one of the highest concentrations of Western Expatraites in Dubai
Major districts
Jebel Ali — Once isolated from the main bulk of Dubai back in the 70's, Jebel Ali is now a major residential and industrial hub encompassing the southern portions of the city. It is also the biggest man made harbor in the world.
Rules of Mortgage in Dubai • • • • •
Over 30 banks & financial institutions offer housing loans. Both MNC & domestic banks offer housing loans Various price comparison websites such as-Souqalmal.com & Moneycamel.com The repayment amount cannot exceed over 50% of the monthly income. There are also Sharia Compliant home finance such as Amlak.
Rules of Mortgage in Dubai for Foreign Investor • • • • •
Nearly 50-70% of the property value can be financed. A low rate of 4.5-5.5%. For <AED 5 million, 30% down payment has to be done For AED > 5 million, 35% down payment has to be done For Second property purchase, % of down-payments are higher == 40%
Micro Markets of Dubai
Micro markets • Down Town Dubai • Dubai Marina • Al Barsha & Jumeirah Lake Towers • Jumeirah Village Circle • Jumeirah Village Triangle • Dubai Silicon Oasis • International City • Dubai Studio City
Down Town Dubai
Down Town Dubai
Previously known as Downtown Burj Dubai, it is a large-scale, mixed-use complex Dubai Mall Metro station
Location Characteristics Is one of the most upmarket and expensive locations in Dubai
Important landmarks
Burj Khalifa Dubai Mall Dubai Fountain
Connectivity : It enjoys easy connectivity to other parts of Dubai through Sheikh Zayed Road and Dubai Mall Metro station
Burj Khalifa DIFC
Sheikh Zayed Road
Dubai mall is undergoing an AED 1 billion (USD 272 million) expansion that will add 269,000 Sq. Ft of Gross Leasable Area (GLA) comprising of new entertainment and lifestyle options. Its connectivity to the AED 372 (USD 100) Billion Mohammed Bin Rashid City through cultural crossing, one of the biggest proposed art galleries in the globe will further drive its value
Dubai Mall
Business Bay
Down Town Dubai Growth FACTORS
Business Bay
Business Bay Its proximity to Dubai International Financial Centre (DIFC) and Downtown Dubai further adds to its attractiveness
DIFC Business Bay is the Central Business District (CBD) of Dubai and comprises of a range of business and residential clusters. Business bay aims to place Dubai on the international business map and compete with New Yorkâ&#x20AC;&#x2122;s Manhattan and Ginza district of Tokyo.
Spread Across 64million Square feet freehold development is being built along the extension of the Dubai Creek, running from Ras Al Khor to the Sheikh Zayed Road. It Comprises of 200 Residential, commercial and mixed â&#x20AC;&#x201C; use towers.
Sheikh Zayed Road
Business Bay Growth Factors
Dubai Down Town
Proximity to Down town, yet much affordable. Rising commercial & hospitably market
Dubai Marina
Dubai Marina Dubai Marina is an artificial canal city built along the shorelines of Persian Gulf. It is claimed to be the world's largest man-made marina. It primarily houses the expatriate community- a large percentage of which are employed in the nearby large free zones namely Dubai Media and Dubai Internet city. The extension of Dubai Marina involves JBR, a 1.7 KM long stretch involving high rise residential apartments and retail outlets
Dubai Internet City
Dubai Marina Growth Factors
Princess Tower The tallest residential buildings
Sheikh Zayed Road
Jumeirah Lake Towers
The recently opened tram system that connects Dubai Marina to the Mall of Emirates will enhance the connectivity of the micro-market. Acting as a feeder network to the Metro system, it will also enhance tourism activity in the micro-market
Jumeirah Lake Towers
Jumeirah Lake Towers The Jumeirah Lake Towers (JLT) is a waterfront community consisting of 87 commercial and residential towers along with hotels and retail establishments. It is an economic free zone that allows foreigners to retain 100% ownership of their companies in addition to providing modern infrastructure and trade networking platforms to investors. JLT is considered among three largest office micro markets in Dubai along with Business Bay and DIFC. JLT is home to the tallest commercial tower in the Middle East and North Africa (MENA) region namely Almas Tower.
Cayan Tower Dubai Marina
Jumeirah Lake Towers Growth Factors
Sheikh Zayed Road
With over 270,000 jobs expected to be created over the span of next 5 years, JLTâ&#x20AC;&#x2122;s commercial market is expected to get a strong boost.
Arabian Ranches
Arabian Ranches
IMPZ STUDIO CITY
The Arabian Ranches are an exclusive community of luxury villas and town houses, Located conveniently near the Emirates Road and the Emirates Golf Club.
Arabian Ranches : GROWTH Factors
Arabian Ranches offers the concept of affordable luxury that is becoming popular with residents of Dubai
Closeness to upcoming commercial markets such as Dubai Studio City will drive growth
Dubai metro is expected to enter into nearby Dubai Studio City in 2022, that will enhance the connectivity of Arabian Ranches
Jumeirah Village Circle & village triangle
Jumeirah Village Circle & village triangle Jumeirah Village Circle (JVC) & Jumeriah Village Triangle(JVT) are emerging freehold communities where all types of property are available: villas, apartments, townhouses, offices, retail and plots for development. Developer Nakheel have developed 4 townhouse & villa communities in JVC, but the rest of the community consists of projects built by private developers. JVC is a large project and by some estimates, at least 25 - 30% of it remains undeveloped; the community will not reach a maturation stage, till at least 2020.
Jumeirah Village Circle: Growth Factors Proximity to upcoming employment hubs such as IMPZ, Jebel Ali & Dubai Investment Park will drive demand
Availability of land banks will stimulate large scale developments
International City
Dubai International city is a country-themed architecture of residences, business, and tourist attractions. Spread over 86 million Sq. Ft, International city houses over 500 buildings. It accommodates near around 130,000 individuals, primarily comprising of South East Asian and Arab communities.
International City
International City Growth Factors • The micro-market comprises of a cost effective social infrastructure consisting of cafes, restaurants, saloons and other entertainment destinations. • One of the key attraction in International City is the Dragon Mart- One of the largest equipment and machinery markets across the globe, acclaimed for its cost effective prices. • Though the nearest metro station is located on Rashidya, which is roughly 25 minutes’ drive, International City is served with an extensive network of bus services.
Discovery Gardens
Discovery Gardens â&#x20AC;˘ Discovery Garden is a well established middle income household area comprising of around 290 buildings & over 25,000 apartments. â&#x20AC;˘ More than 30% of the development is reserved purely for landscaping.
Discovery Gardens: Growth Propellants • In 1st Quarter 2015, a new road has been laid down in Discovery Garden resulting in decongestion of the area. • The opening of community mall namely Discovery Pavilion recently will result in offering new retail option for the inhabitants. • The proposed metro line is expected to pass directly through Discovery Gardens by 2020. • Its proximity to key employment hubs such as Dubai Internet City & Media city will drive its residential markets.
Dubai Marina
Discovery Gardens
Jumeirah Lake Towers
Jumeirah Village
Jumeirah Island
Al Barsha
Al Barsha • Al Barsha is one of the newer residential developments, • Al Barsha is bounded by Sheikh Zayed Road and Sheikh Mohammad Bin Zayed Road. • It has a healthy mix of South Asian & Western Expatriates.
Al Barsha- Growth Factors
â&#x20AC;˘ Al Barsha consists of the second largest mall in Dubai- Mall of Emirates. â&#x20AC;˘ Residential market demand is driven by proximity to major commercial hubs such as Dubai Media City
Free Zones • Dubai Free Zones are kind of special economic zones set up with the objective of offering tax free & numerous other investment opportunities to expatriate business community. • It has been developed with special framework of rules and regulations that are applicable to concerned free zones. • Each free zone is generally designed around one or more industry and offers license to companies within those categories, thereby creating cluster economy. • Expatriates do not require an Emirati partner/sponsor for start their business.
Benefits of setting up companies in Free Zones: • A single individual can set up business irrespective of any nationality (100%ownership)
• No Income Tax to be paid • No Corporate Tax • Low operational cost • Dedicated business support services • Stable regulation • Fast process of licensing and business set up • Confidentiality of business is maintained • Can open bank account in Dubai • Exempted from Dubai Labour Laws • Exceptional IT, Technology & Research infrastructure
some of DUBAI’s fRee Zones • Jebel Ali Free Zone • Dubai Airport Free Zone • Dubai Internet City • Dubai Media City • Dubai International Financial Centre • Dubai Auto Zone • Dubai Knowledge Village • Dubai Silicon Oasis • International Media Production Zone
Established Free Zones
Up coming Free Zones
Dubai Studio City
Dubai Studio City is part of TECOM Group in Dubai It caters to the production needs of the region and has plans to build Hollywood type movie studios. It has over 300 companies registered. It has entertainment , retail spaces, hotels and residential facilities to accommodate crews and casts.
Dubai Studio City
Dubai Motor City
STUDIO City Growth Factors Boutique studios attached to the office buildings in front
Arabian Ranches Office Buildings
Residential projects have been built at Dubai Studio City primarily for accommodation for visiting film crew. However the site area has been enlarged since commencement â&#x20AC;&#x201C; and a variety of private residential projects are included in the outer perimeters of the new city.
Dubai Sports City
Dubai Sports City • Dubai Sports City or DSC a multi-venue sports complex in Dubai, UAE. • It provides a mix of residential, retail, leisure and recreational facilities. . • It is built around five major sports venues and features a number of sports academies. • It is one of the fastest growing residential markets as well. • It presently houses 15,000 individuals that is expected to double in next 12 months. • By 2022, it is expected to house around 70,000 individuals.
Sheikh Mohammad Bin Zayed Road
North Commercial District
Canal North
IMPZ
Stadium District
Victory Heights Canal South & Central
Dubai Sports City
Sports Village
International Media Production Zone(impz)
International Media Production Zone •
It is a free zone and that caters to media production freehold companies.
DUBAI SPORTS CITY
•
• IMPZ spreads over an area of 43 million square feet
It is an international destination for various media production such as Printing and packaging, Film, Broadcast and Music industries
International Media Production Zone
International Media Production Zone : Growth Propellants â&#x20AC;˘ To Complement the office sector, residential and commercial zones have been installed by IMPZ including Residential apartments, Super Markets, Health care facilities, Banks & much more.
Dubai Motor City
Dubai Motor City
DUBAI SPORTS CITY
Dubai Motor City is a Low Rise Property development in Dubai, based on a motor theme
Over the period of time it has evolved into a well rounded community including residential units, business towers, motor-sports facilities, retail and F-1 theme park.
Dubai Motor City- growth factors Sports City Dubai Autodrome A 5.39 km FIA certified track which opened in October 2004.
Uptown Motor City A low-rise residential apartment development including recreational areas, parks and schools
Sheikh Mohammad Bin Zayed Road
Green Community MotorCity Residential development consisting of family villas, townhouses, and bungalows as well as luxury terraced apartments. Business Park MotorCity - Office space in several high rise towers and retail space including automobile showrooms and other automobile related shops.
Dubai Silicon Oasis
Dubai Silicon Oasis On the lines of Silicon Valley of USA, Dubai Silicon Oasis Authority (DSOA), a 100% governmentowned free zone, was established with the objective of "facilitating and promoting modern technology based industries. It also provides a vibrant residential community comprising of healthy mix of European, Asian & Arab expatriates.
DSO's urban master-planned community spans over 77 million square feet and has been carefully divided into 5 main pillars based on industrial, commercial, education, living & residences, and public facilities. It offers businesses a plethora of advantages including a state-of-the-art infrastructure, in-house business services and strong business support such as technology investment incentives, incubation center and venture capital funding
Dubai Silicon Oasis Proximity to the Airport. Moderately Priced yet a upscale community
Dubai world Center
Dubai world Center • It is an economic zone to support a number of activities including logistics, aviation, commercial, exhibition, humanitarian, residential and other related businesses • The location is estimated to be the future home of 900,000 people • The Dubai World Central combined with the Al Maktoum International Airport is expected to draw additional tourism to the Middle East. The airport once completed will draw 220 million passengers annually.
Dubai world Center Exhibition City Dubai Logistics City
DWC Commercial City
DWC Golf City
DWC Residential City
Dubai Al Maktoum International Airport
Dubai Al Maktoum International Airport
• Al Maktoum International Airport with a massive investment of more than USD 32 billion spread across 140 square kilometers • It is located in Jebel Ali 37- Kms southwest of Dubai
• The project, which is being rolled out over several phases in the coming decade, will have five runways, four terminal buildings. Once completed, it can cater to an annual capacity of 12 million tonnes of cargo and 220 million passengers
Dubai EXPO 2020 The theme of Expo 2020 is â&#x20AC;&#x2DC;Connecting Minds, Creating the Futureâ&#x20AC;&#x2122; that will spread the message of generating sustainable solutions to global problems by collaborating across cultures, nations and regions.
There are three subthemes of Expo 2020: 1. Opportunity: To unlock the potential of human capital to contribute towards a better future 2. Mobility: Scrutinize the conception of smarter and more productive connections, physically and virtual 3. Sustainability: Analysing the way to persist progress without compromising the fundamental needs of future generations
Dubai Expo 2020 â&#x20AC;˘ It will be the first World Expo to take place in the Middle East, Africa and South Key Facts
1. Expo 2020 will open from October 20, 2020 and close on April 10, 2021 2. Location: Dubai South District, adjacent to Al Maktoum International Airport 3. Area Covered: 4.38 square kilometres
4. Dubai Expo 2020 site is approximately 4 km long and 1.8 km wide 5. Expected footfalls: 25 million 6. Largest proportion is expected to be international visitors (approx. 70% of all visitors) 7. Over 200 participants are expected including nations, corporates, multilateral organizations & educational corporates 8. Ambitious Volunteer Programme: Approximately 30,000 volunteers are likely to be present in Expo 2020 under this programme from a wide range of ages, nationalities, cultures and backgrounds
Dubai Metro
Dubai Metro is a fully automated driverless metro rail network that was inaugurated on September 9, 2009. It is the worlds longest fully automated metro network with a route length of 75 kilometres and has also entered Guinness World Records
Till today, Dubai Metro is served by two lines namely Red Line : It runs from Al Rashidiya to Jebel Ali and travels along Sheikh Zayed Road for most of its length. Green Line : It runs through Deira and Bur Dubai generally parallel to Dubai Creek
Dubai Metro by 2030
Purple Line: It will connect Dubai International Airport to Al Maktoum International Airport
Blue Line: Along Mohammed Bin Zayed Road
Pink Line: Along eastwest part of Dubai
Gold Line: It will connect Arabian Ranches, Deira and Dubai Marina
Average per Sq feet Cost AED 1925 AED 2100 AED 1440
AED 1025
AED 1560 AED 920
AED 840 AED 1050 AED 1095 AED 710 AED 865
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