Sme advisor issue 129

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ISSUE 129 MONTHLY FOCUS: PROPERTY SECTOR

30 We get an insider scoop on property hotspots for 2016-17.

36 Listaproperty gives us a low down on how people search property.

54 Al Zorah’s venture is a lesson for developers in how to handle a mega-project.

PROPERTY’S NEW FRONTIER

TECHNOLOGY 3D PRINTING IN CONSTRUCTION

INVESTMENT OPPORTUNITIES IN UAE REAL ESTATE

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SME Advisor Middle East is aimed at business owners and senior executives across the GCC. Armed with practical advice, it has been highlighting key business issues for the small and medium enterprise segment since its launch in 2005.

The magazine addresses real issues faced by business decision makers, without resorting to jargon.

We understand that often, in small and medium enterprises, specialist business decisions are made by the owners and not by an army of c-level executives. At the same time, our content is equally relevant and useful for specialist, senior executives in mid-level enterprises.

The magazine style is consumer, conversational and colourful.

Co Founder and CEO Nadeem Hood

Co Founder and COO Georgina Larsen

Head of Content Paul Godfrey paul@cpibusiness.net

Editor in Chief Rushika Bhatia rushika@cpibusiness.net

Deputy Editor Beth Burrows beth@cpibusiness.net

Video Producer Murtaza Yousuf murtaza@cpibusiness.net

Relationship Manager Freshia Mistry freshia@cpibusiness.net

Event Coordinator Zainab Murtaza zainab@cpibusiness.net

Creative Director Sam Birouty

Relationship Delivery Manager Mrudula Vempuluru vem@cpibusiness.net

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Published By: CPI Business FZ LLC Office 111, Building 4 Dubai Media City Dubai, United Arab Emirates

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© Copyright 2016 CPI Business.

All rights reserved.

While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

From the web

Dubai Wholesale City is accepting applications from companies and traders The fully-integrated trading hub is accepting applications from prospective business partners. Dr Amina Al Rustamani, Group Chief Executive Officer of TECOM Group, said: “Dubai Wholesale City is a key contributor to the efforts of TECOM Group in articulating His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, UAE’s post-oil vision. It plays an integral role in consolidating Dubai’s position as a regional capital and an international centre for trade and business. It will increase the contribution to the UAE’s wholesale trading sector close to 10 per cent by 2030.”

To read more about please visit: www.dubaiwholesalecity.ae.

The Dubai Future Accelerators kick-starts its programme With 2,274 applications from 73 countries, the initiative got off to a positive start. The Dubai Future Accelerators unveiled the companies that have been accepted to participate in its 12-week programme. These are businesses that offer solutions to challenges facing key sectors including health, education, energy and water, transport, infrastructure, security and safety, and technology. These 30 companies will work with the seven government authorities to develop and test products and solutions for the challenges that key sectors face in the cities of the UAE. The finalists will develop solutions in such sustainable sectors as Hyperloop transport, 3D printing and digital financial transactions.

To read more about please visit: https://dubaifutureaccelerators.com/en.

Facebook launches ‘Safety Check’ feature Safety Check enables users to tell their loved ones that they’re safe, and keep a check on one another during a crisis. The tool was developed following the Japanese tsunami in 2011 to help people connect during natural disasters and expanded to non-natural disasters in late 2015. Until now, it could only be activated by The Safety Check Facebook team, who decides whether the tool should be switched on based on scope, scale and duration of the event. With this new update, the service can also be initiated organically by the Facebook community, making the community input become a stronger signal for when the service could be helpful. Safety Check notifications have reached one billion people in 2016 alone.

To read more about please visit: https://www.facebook.com/BreakingNews/.

Editor’s Note

Scaling new heights To mark Cityscape Global’s 15th edition, this month’s property issue sheds light on how the sector’s outlook has changed over the past decade and takes a look at the path ahead. Our insights are based on the views of industry experts Dubai Properties and Clyde & Co., trendsetters Listaproperty and Knight Frank, and market leader Propertyrights.ae. Unanimously, 3D printing, sustainability and affordable housing were identified as the top three forces disrupting the sector.

As ever, we conducted in-depth case studies with an exclusive selection of growing enterprises, who shared their experiences on a wide range of topics from investment decisions to managing talent. We heard from HomeShield, Al Zorah Development, Propertyfinder, One Business Centre DMCC and Diamond Developers. Enjoy a comprehensive summary of these compelling stories in our “Top change makers” section.

RUSHIKA BHATIA EDITOR

Here’s a handy infographic to guide you through –

Finally, don’t miss our analysis of the global property investment landscape on pg. 42, which clearly shows how investment numbers have burgeoned around the world. The data showed us that cross-border investments are on the rise – with HNWIs showing a special interest in emerging markets.

20 - Cityscape Global

36 - Listaproperty

76 - Propertyfinder

54 - Al Zorah Development

30 - Mapping Success

82 - One Business Centre DMCC

Enjoy reading this issue of SME Advisor!

44 - Dubai Properties

64 - MENA Properties

70 - Diamond Developers

54 - Clyde & Co

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Contents

The economist’s view 020/ The view from the top: Cityscape Global 2016 026/ Renting property in Dubai: a minefield disarmed 030/ Mapping success – an insider scoop on hotspots

Talking trends 036/ Property – the path ahead

Infographic of the month 042/ A snapshot of global property investment

044/ AFFORDABLE HOUSING IS A GROWING SEGMENT. AS THE DEMAND GROWS FOR LOW TO MID-MARKET HOMES, THE COUNTRY’S REAL ESTATE DEVELOPERS HAVE BEGUN TO ENTER THIS NEW HOUSING SEGMENT.

029/

ONCE YOU HAVE YOUR TENANCY CONTRACT, SIGN UP FOR EJARI. THIS IS HOW YOU REGISTER YOUR RENTAL CONTRACT WITH THE DUBAI GOVERNMENT VIP majlis 044/ Exclusive interview: Dubai Properties

Business banking 050/ Exploring Egypt

Digitally disruptive 054/ Grand designs: Al Zorah Development

Top change makers 058/ Fix her upper – HomeShield 064/ The boutique brokerage – MENA Properties 070/ Turning the blueprint green – Diamond Developers 076/ Property, places & profitability – with Propertyfinder.ae 082/ Numero Uno – One Business Centre DMCC

Organisation & structure 088/ Buyer and tenant beware! Top advice from Clyde & Co

Technology for business 094/ 3D printing in construction

Masood Al Awar of Dubai Properties (DP) shares his audacious plans for the future

36

44 20

Our roving reporters present exclusive highlights from Cityscape Global 2016.

The team at Listaproperty.com shares compelling market data.

54

Al Zorah promises to transform Ajman as a tourist and residential destination. Here’s how...

Looking to buy a property? Make sure you are ticking all the right boxes.

82 Ryan Kuchel explains why his plush offices are poised to drive innovation – notably in the serviced offices space…

88

C O N T E N T C U R ATO R S 018

CONTENT CURATORS Presenting this month’s portfolio of industry specialists and thought leaders, who played a critical role in producing the feature content of our magazine and ensuring that we were more topical than ever.

““ TOBY YOUNG FOUNDER AND MANAGING DIRECTOR PROPERTYRIGHTS.AE

SME ADVISOR

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TOM RHODES EXHIBITION DIRECTOR CITYSCAPE GLOBAL

Cityscape Global gave home buyers the opportunity to compare a wide variety of properties under one roof, throughout the three day exhibition. The opportunity to meet and discuss your requirements with hundreds of real estate developers, brokers and financiers makes the process of purchasing a home a much more convenient experience

As with any industry, where there is money to be made, there are also people pushing the margins of what is legal. Thankfully, all real estate transactions in Dubai are governed by the Real Estate Regulatory Authority (RERA), a branch of the Dubai Land Department (DLD).

C O N T E N T C U R ATO R S 019

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Prices in many areas of Dubai have stabilised after a slow period. We see many clients who are interested in entering the real estate market today, as they see that the growing stability in the UAE has created an opportune time to invest

RASHA NASHAAT HASSANI CO-FOUNDER AND CEO LISTAPROPERTY.COM

““ MASOOD AL AWAR CHIEF OFFICER - COMMERCIAL DUBAI PROPERTIES

Our strategy to offer master planned, integrated communities catering to a diverse customer base has proved very successful, and Casa Dora at Serena is a great example of how we are answering to the city’s immediate demand for affordable family homes, whilst offering long investment returns

““ ALEXIS WALLER PARTNER CLYDE & CO DUBAI

A copy of evidence of the landlord’s ownership of the premises should be requested. If the landlord owns the premises, he should have a title deed issued by the Dubai Land Department to show this

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THE VIEW FROM THE TOP:

CITYSCAPE GLOBAL 2016

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Now in its 15th year, Cityscape Global is the axis the Dubai property market revolves around. We talk to Tom Rhodes, Exhibition Director, about why Cityscape 2016 was more crucial than ever.

It’s no secret that the Dubai property market has had a tumultuous time of since Cityscape Global last September. In the past year the average value of Dubai property has fallen by 16 per cent. But word on the street is that the market is finally bottoming, making way for healthier growth in 2017.

When the market fluctuates so ferociously the need to regroup, reconnect and revaluate becomes more important than ever. That’s where Cityscape Global comes in.

The annual exhibition is the highlight of the industry calendar, a place where connections are forged, business is conducted and trends are made. Last year the event, held at Dubai World Trade Centre, attracted over 43,000 participants from 155 different countries, 72 per cent of whom were intending to make a purchase. We talk to event ringmaster Tom Rhodes, Exhibition Director for Cityscape Global, about the past, present and future of property in Dubai.

QQ

The UAE property market has seen a lot of turbulence and some softening since Cityscape Global 2015. What did this mean for this year’s event and the importance of it to the industry?

Since early 2015, the Dubai real estate market has been experiencing a correction, with the average value of a house dropping 10 per cent in value in 2015, falling an additional six per cent to this day. Many reports support the sentiment that the market is ‘bottoming out’ with Reidin analysis showing a positive move in their sales price index of 0.97 per cent in May 2016. This was seen at Cityscape Global 2016 where we saw a static growth of the exhibition as the market readies itself for the next development phase.

We are now seeing statements showing positive growth in the real estate market, suggesting that Dubai has come through this relatively difficult period in a much stronger position than many other economies in the region. The recent Dubai Residential Market Update by Core Savills has reported that the market has seen a one per cent increase in price in Q2 of 2016.

This year’s Cityscape Global exhibition was perfectly timed for home buyers and interested investors because reports suggest this could be the right time to buy. With leading consultants and developers on hand, there was also the opportunity for visitors to gather their own research and get an in depth understanding of the current market climate.

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QQ

In terms of numbers, how did this year’s event vary from 2015?

Once again, the event took place across 41,000sqm of exhibition space. Cityscape Global welcomed 272 exhibitors to the show, showcasing a wide variety of real estate assets, from across the globe.

With market conditions indicating prices will start rising, we saw many keen investors seize the opportunity to attend the exhibition to ensure they didn’t miss their opportunity to learn about what investment chance are out there. We are yet to confirm attendance numbers, however from being on the ground I know that turnout was very strong.

TOM RHODES EXHIBITION DIRECTOR CITYSCAPE GLOBAL

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How does Cityscape Global in Dubai compare with your other regional shows i.e. Cityscape Qatar?

Since 2010, our Dubai exhibition has been rebranded Cityscape Global, as we have seen a much more diversified international audience at the show. Now in our 15th year, and well established as the region’s number one real estate exhibition we welcomed exhibitors from over 30 countries, with large participation from Bahrain, Cyprus, Pakistan, Turkey and the UK. Cityscape Global also saw over 43,000 participants, representing 155 nationalities in attendance last year.

When compared to our more regional events, we see more targeted interest on the local real estate market, wherever this may be i.e. Abu Dhabi, Jeddah, Egypt, Qatar or Korea. The Cityscape Portfolio now includes nine events, with our more recent launches taking us to Turkey, and India.

SME ADVISOR

What trends have you noticed in terms of the property market here in Dubai?

The industry continues to focus on middle incoming housing. Real estate developers have all launched projects with substantially lower price per square metre than we have traditionally seen in areas like Dubai Marina, Downtown Dubai and Business Bay. Most of these projects are located further from the city centre, in areas including Dubai Land and Jebel Ali. This trend has been evident from 2014, with the average transaction price in Dubai reducing from AED 2 million, to AED 1.7 million in 2015.

In addition, Dubai Municipality has allocated over 100 hectares of land in Muhaisnah 4, Al Quoz 3 and 4 for affordable housing, mostly to meet the demand for dwellings for people earning between AED 3,000 and AED 10,000 per month. This is a healthy trend that brings more balance into Dubai’s real estate offering, and will help to ‘win back’ potential residents

currently commuting to Sharjah and the Northern Emirates.

This trend is now being felt in the market, with leading brokerage Allsopp and Allsopp reporting that 83 per cent of all of their sales in Q2 were for properties under the AED 4 million mark. This trend has been so strong that they have registered more buyers than properties in this market. This market is being supported by the mortgage caps that were implemented by the UAE Central Bank in January 2014, offering home loans of up to 75 per cent of the property value of AED 5 million and below. There is still further to go though as we see 70 per cent of residents in Dubai still renting property instead of owning. This is almost a complete reverse of the trend in markets such as the UK where 64 per cent own their property.

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Each year, Cityscape Global gives home buyers the opportunity to compare a wide variety of properties under one roof, throughout the three day exhibition

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What do you think is the main draw for exhibitors and visitors to Cityscape Global?

2015 saw over 43,000 participants come to the exhibition with 72 per cent of visitors confirming they intend to make a purchase, and/or do business whilst at the exhibition.

Following our research of the visitors’ interests and investment value we saw that an average of 61 per cent of our investors’ portfolios consisted of real estate products.

There is no better opportunity for real estate developers to engage directly with an audience of home buyers and investors who are looking to invest in real estate. Many of our exhibitors use this opportunity as the perfect platform to announce their new project launch to the market. With such a large concentration of interested investors, it is the ideal time to reach out the market.

Each year, Cityscape Global gives home buyers the opportunity to compare a wide variety of properties under one roof, throughout the three day exhibition. The opportunity to meet and discuss your requirements with hundreds of real estate developers, brokers and financiers makes the process of purchasing a home a much more convenient experience. Visitors are also able to avail special offers that our exhibitors run during exhibitions. So this year we saw many prospective home buyers coming down to take advantage of these.

Be it discounted rates, or special payment plans there was a great opportunity for everyone. This is especially right now as we are seeing reports indicating that prices are bottoming out and will start increasing in the near future.

How has Cityscape Global changed since its establishment 15 years ago?

In the 15 editions of Cityscape, we have been privileged to operate in a region and sector that has witnessed some of the most iconic developments the world has seen in recent years. Be this the masterplan developments of Palm Jumeirah, Downtown Dubai, or Yas and Saadiyat Island, the launch and construction of the world largest retail mall, Dubai Mall, the world’s first 7-star hospitality development, The Burj Al Arab. Or, in the most recent instance, the Dubai Water Canal. All of these serve as an emblem of Dubai’s commitment to being a global player.

Cityscape has created the platform for hundreds of thousands of investors and home buyers to generate billions of dollars worth of investment into the global real estate market. We have been an everpresent feature of the real estate industry through the real estate boom pre-2008, the financial crisis post-2008, and through its recovery stage to the present day. Each time Cityscape has been proven to be a barometer for the industry. It’s a place where government figures and industry experts from across the globe converge to network and discuss the future challenges and trends the market may face.

Each year we see a growing international participation at the show, a trend we look to build on whilst continuing to be the shop window for investors looking at the UAE.

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Finger on the pulse – Our roving reporters visited Cityscape 2016 and put together a snapshot of the key undertakings…

RAK Properties unveiled two major projects Managing Director and CEO Mohammed Sultan Al Qadi revealed plans for the investment of AED 5 billion into a new major development at Mina Al Arab. Measuring approximately 811,420 square metres, the island project will feature a mix of 5-star and lifestyle hotels, waterfront villas and townhouses, beach clubhouse, shopping mall and outdoor entertainment venues, such as a cinema and al fresco dining. In addition, RAK Properties announced Julphar Residence, a residential tower in Abu Dhabi.

The 24-floor Julphar Residence on Al Reem Island is the property developer’s second foray in the UAE’s capital and is scheduled for completion in Q4 2018.

Meraas talked about its beachfront development Meraas showcased its project La Mer, a beachfront destination combining distinctive retail and leisure attractions with a range of retail and F&B concepts, waterfront living and a hotel. La Mer, set in a spectacular location along the shoreline, will be spread over 9.5 million square feet of existing and reclaimed land and will comprise four distinct zones: a beach; an entertainment hub; North Island; and South Island. With 60 per cent of the construction already completed, La Mer looks to welcome visitors in Q4 2017.

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Dubai South’s Residential District took centre stage The development stands out for its world-class design, superior quality and a wide range of lifestyle amenities.

But, what’s really interesting is that the District aims to create a city that is based on the happiness and wellbeing of people. Moreover, the pioneering residential communities The Villages and The Pulse offer unparalleled amenities including a retail centre, a sports centre and a community centre to a school, gas station, hospital, mosque, nursery, mall and hotels, all within convenient walking distance

Bloom Properties announced 75% sale of Bloom Heights Located in the prominent community of Jumeirah Village Circle, Bloom Heights is a modern living space featuring designed apartments with high quality finishes.

Residents will also enjoy a range of amenities including two swimming pools, a running track, a gym, a multipurpose hall and convenience retail outlets. On the occasion of Cityscape, Bloom Properties announced that it had sold 75 per cent of its Bloom Heights development - since its launch during the week of 15th edition of Cityscape Global. Sameh Muhtadi, CEO, Bloom Holding, said: “We are excited with the successful launch of Bloom Heights as well as the tremendous interest shown by investors. We strongly believe that Bloom’s strategy to offer the right product in the right location has resonated well with our clients. This also indicates that there is a healthy demand for well-designed and competitively priced projects that serve the needs of the community.”

Japanese firm Nikken Sekkei showcased its growing portfolio of projects The Japanese architectural and urban design firm is working on the iconic, mixed-use development – One Za’abeel with its twin towers reaching more than 300 metres high situated adjacent to the Dubai World Trade Centre. This complex will include a residential tower with 450 apartments, a 5-star hotel tower with 370 rooms and a commercial tower offering 500,000 square feet of office space. Also in the pipeline is Forte Towers, which comprises of twin towers, one of 70 storeys, the other 50 storeys. Each tower will have one, two and three-bedroom units, ranging from 650 to 1800 square feet in size and will be situated in the Downtown Opera District. Other ongoing regional projects include a landmark tower for the Tadawul HQ (Saudi Stock Exchange) in Riyadh; HQ building for Masraf Al Rayan in Doha; a large residential development in Jeddah, and a waterfront project in Bahrain.

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RENTING PROPERTY IN DUBAI: A MINEFIELD DISARMED

Toby Young, Founder and Managing Director of Propertyrights.ae, gives SME Advisor the inside scoop on how to avoid getting scammed when it comes to renting.

T

he property market in the UAE, specifically Dubai, is like no other.

No matter where in the world you are from, you’re likely to find it very different from what you’re used to.

Although this can be seen from both the sales and rental perspective, for now we will concentrate solely on the rental side of the Dubai property market.

In theory, renting a property should be easy. But due to various differences in the market, prospective Dubai tenants often wonder if they are being scammed, or if the person they’re dealing with is acting in the tenant’s interests or their own. In a lot of countries the landlord will pay the agent a fee or a percentage from the rental income.

Meanwhile, any property rented will either be maintained by the real estate agency or by a landlord who is on hand to deal with any issues that may arise while rent is paid on a monthly basis.

This is different in Dubai, and prospective tenants should not feel aggrieved by it. In general, the tenant will pay a pre-agreed amount, usually five per cent, to the real estate agent. Also, in the past the agent would have had very little communication once the rent has been paid. Over the last few years, this has changed somewhat. Many landlords now leave the management of the rental property to the real estate agent. The one thing that catches many people out is how the rent is paid. In the past tenants may be used to standing orders or direct debits; these are relatively new to the banking system in the UAE. As such, it is not uncommon to be asked to pay a year’s rent upfront, or in a number of cheques. More often than not, the number of cheques used is also used as a bargaining chip to reduce the total amount of rent paid. In Dubai, when it comes to renting a property everything is negotiable - from the price to the number of cheques.

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EDITOR’S PICKS 01. RERA is a governmental body that puts all the laws in place surrounding rent increases, evictions and how real estate transactions must take place 02. In Dubai, when it comes to renting a property everything is negotiable - from the price to the number of cheques

TOBY YOUNG FOUNDER AND MANAGING DIRECTOR, PROPERTYRIGHTS.AE

SME ADVISOR

Many people ask why they have to pay such a large amount up front, but there is no hard and fast reason. The main cause seems to be the transient nature of Dubai’s population. It means that a landlord needs a certain guarantee that the full rent will be paid for the entire tenancy. At this juncture it is worth remembering that cheques in the UAE - as long as they are signed and no more than six months old - are deemed as good as cash. Should a cheque bounce and not be honoured then criminal proceedings can take place. The system - alien to many - can lead to confusion, misunderstandings and invariably mistrust. After all, how many people have a year’s rent sitting around in a bank account?

As with any industry, where there is money to be made, there are also people pushing the margins of what is legal.

Thankfully, all real estate transactions in Dubai are governed by the Real Estate Regulatory Authority (RERA), a branch of the Dubai Land Department (DLD). RERA is a governmental body that puts all the

laws in place surrounding rent increases, evictions and how real estate transactions must take place. This means that every real estate agency and every real estate broker must be licensed by RERA. If not then it’s not legal for them to act in such a capacity.

Getting licensed isn’t easy. It requires applicants to sit exams and sponsor companies have to leave large deposits. If either the broker or agency acts illegally then RERA is entitled to penalise them.

And individual parties can log complaints against agents too. This is dealt with the by the Rental Disputes Settlement Centre (RDSC). They hear each case based on its merits and offer a verdict accordingly.

They are known to be very fair and do not favour one nationality over another. At the end of the day, the law is the law, and the judges ensure it is upheld.

For those feeling confused or worried about getting scammed, here is a short checklist to help guide you through the process.

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Do’s & don’ts of Dubai property rental

When looking for properties ensure that your agent is RERA registered.

They should be able to provide you with their broker number and you can check them out on the Dubailand website.

When you make out cheques ensure you address them directly to the landlord. Also, before handing them over ask for a copy of your landlord’s passport and if possible the title deeds too. They should agree; this is not an uncommon request.

Ask your real estate broker to check that all service charges have been paid by the landlord, and if possible get this in writing too. If not, this can cause issues further down the line.

Ask your real estate broker to check that there are no outstanding bills for DEWA (Dubai Electricity and Water Authority) or the Chiller (Air Conditioning). If there are they will need to be paid before you can set up an account.

If there are any maintenance issues make sure they are addressed before you move in. It is a lot easier to have repairs made before you sign the contract.

Make sure you know how to access all parts of the building.

Swipe cards and clickers are often needed, as well as door keys to enter your property.

If the property is not habitable before you move in, ask for it to be deep cleaned in advance. A property should be handed over in a sanitary condition.

Take photos of any issues you find with the apartment and let your real estate agent and landlord know as soon as possible. This will avoid issues when you try and prove they were there before.

Once you have your tenancy contract sign up for Ejari.

Essentially this is how you register your rental contract with the Dubai government. It is a legal requirement and you will need your registration number in order to engage with government offices.

Make sure you know how many car parking spaces you have and where they are. It is not uncommon for there to be only one per apartment or villa, to be shared between tenants.

Also, find out if there is visitor parking and how to access it.

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MAPPING SUCCESS When the world is your proverbial property oyster, how do you decide where to invest? We take a look at the preferences of High Net Worth Individuals to get an insider scoop on hotspots for 2016-17.

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The Global Property Guide reveals that during the first quarter of 2016 house prices rose in 31 out of the 45 world’s housing markets

30% of HNWIS are property hunting this year

SME ADVISOR

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ccording to the 2016 Wealth Report from Frank Knight, 30 per cent of High Net Worth Individuals (HNWIs) are property hunting this year. In a world still trembling from the aftershocks of the 2007-09 recession, property remains a popular choice as a safe haven asset and means of diversifying a portfolio.

Stock markets can – and do - fluctuate, but there is a certain solidity in a bricks and mortar investment. No pun intended.

And it seems our HNWIs are right; 2016 is a good time to invest. According to the International Monetary Fund, global housing markets are showing a slow but consistent recovery from the Great Recession. The Global Property Guide reveals that during the first quarter of 2016 house prices rose in 31 out of the 45 world’s housing markets. The boom is led

by Europe and North America, with Turkey (+19.05 per cent), China (+16.64 per cent) and Sweden (+12.1 per cent) taking the top three spots. But with property developers dropping pins for new international projects by the day, there is – literally – a world of emerging markets for the real estate impresario to explore.

Using research from Frank Knight’s 2016 Wealth Report, we take tips from the ultra-rich on the best ways to inflate a property portfolio.

Prime Residential Property Taking a closer look at the portfolio of high HNWIs, the report finds that residential property makes up a good 24 per cent, whilecommercial property makes up 11 per cent of property investment. Over the next decade 40 per cent of HNWIs will increase their allocation to residential property, where 30 per cent are likely to consider a purchase in 2016.

The value of the world’s leading prime residential property markets rose on average by 1.8 per cent in 2015, according to results from Knight Frank’s unique Prime

International Residential Index (PIRI).

Over 66 per cent of the PIRI 100 locations recorded flat or positive price growth, compared with 62 per cent in 2014.

Vancouver leads the rankings with prices accelerating 25 per cent during 2015. A lack of supply, coupled with foreign demand spurred on by a weaker Canadian dollar, explain the city’s stellar performance.

In Europe, Munich, Amsterdam, Monaco and Berlin stood out as top performers, recording price growth of 12 per cent, 10 per cent, 10 per cent and nine per cent respectively in 2015.

Despite areas of growth, the world’s emerging markets are no longer the shining beacons they were two to three years ago.

The US Federal Reserve’s recent rate rise, the resulting strong dollar and the collapse in commodity prices all help to explain why Buenos Aires (-8 per cent) and Lagos (-20 per cent) are located at the bottom of the PIRI 100. Within the Middle East and North Africa (MENA), Dubai saw a -6 per cent drop in the price of prime residential property. Elsewhere in the region, prime property prices in Riyadh maintained their stability, while Abu Dhabi and Qatar saw declines of -2 per cent and -3 per cent respectively.

Commercial Property During the past decade the commercial real estate landscape has transformed, now neatly encapsulated in one word – globalisation. At the bottom of the real estate cycle in 2009, total investment into global office, retail, industrial and hotel properties stood at US$ 216 billion, according to data from Real Capital Analytics (RCA). Seven years on and volumes stood in excess of US $700 billion. In the context of private wealth, the proportion of private investment in commercial space also remarkably increased from US$ 54 billion in 2009 to US$ 178 billion in 2015.

Looking inward and into the region, data from Knight Frank’s 2016 Attitudes Survey conducted in conjunction with ultra-wealth

the E conomist ’ s V iew 033

PRIMARY FINDINGS FROM THE 2016 WEALTH REPORT Number of Ultra High Net Worth Individuals in North America by 2025

Ranking of London in the cities that matter the most to Ultra High Net Worth Individuals

Growth in the population of Ultra High Net Worth Individuals in Russia & CIS over the next decade (2015-2025)

1

24.5%

72%

90,247 $1.4 Vancouver saw the largest growth in the price of prime property

trillion

1417% Lagos saw the largest decline in the price of prime property

5 -20%

91%

$300 trillion

10-year shift in outward investment from China Ratio of Ultra High Net Worth Individuals in India involving their children in their business at an earlier age

294% 53%

The value of total commercial real estate investment in North America from 2009-2015

10-year shift in inward investment from Brazil

Most expensive art work purchased by a buyer in Qatar buyer (Paul Gauguin’s, When Will You Marry Me?)

Percentage of Ultra High Net Worth Individuals in the Middle East and Africa who perceive succession and inheritance issues as the biggest threat to wealth creation over the next decade (2015-2025)

Ranking of Dubai in the cities that matter the most to Ultra High Net Worth Individuals

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““

In terms of location, total cross-border investment from Middle Eastern capital into commercial properties focused on the major global gateway cities of London, Paris, New York and Sydney

intelligence consultancy Wealth-X, reveal that commercial real estate is expected to become an established component of the investment portfolios of the UHNWIs from the Middle East and North Africa (MENA) region over the next decade.

While 82 per cent of UHNWIs from the MENA region have invested in residential property over the past decade, only 53 per cent are expected to allocate funds to the asset class over the next decade. Responses from MENA reveal a growth in allocation to offices from 41 per cent between 2005 & 2015 to 53 per cent between 2015 & 2025.

There is another trend developing too - the emergence of warehousing and logistics as a key element in UHNWIs real estate portfolio over the next decade, with 32 per cent revealing they would invest in assets within the sector.

These figures reveal that despite the recent decline in oil prices and the slowdown in global trade and commercial volumes, UHNWIs are committed to the growth of businesses and the industrial, logistics and transport sectors over the next decade.

In terms of location, total cross-border investment from Middle Eastern capital into commercial properties focused on the major global gateway cities of London, Paris, New York and Sydney. The availability of diverse investment products (e.g. REITs) in these locations has made property more accessible to SME ADVISOR

a wider range of investors, while the high level of market transparency and diverse expertise across these markets enables private investors to overcome their knowledge gaps.

Looking ahead Demand in 2017 will increasingly be driven by international developers. The world’s largest residential developers, led by players from China, India, Hong Kong and Malaysia, continue to diversify into new markets.

Where Greenland Group, Swire, China Vanke Co and Lodha Group lead, they are followed by private compatriot investors looking to dip their toe into international investment – with the reassurance of buying from a familiar brand.

Watch for Hong Kong buyers in Miami, and Chinese buyers on the Australian Gold Coast and the US West Coast – and just about every nationality in London and New York.

40% of HNWIS will increase their allocation to residential property over the next decade

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Skyscraper Index London and San Francisco are seeing the fastest rental growth for high-rise offices. In Knight Frank’s latest Skyscraper Index, based on Q2 2015 data, Hong Kong retains the title of the most expensive place in the world to rent office space in a tower building. However, other cities are seeing considerably greater rental growth, reflecting stronger office markets elsewhere in the world. London recorded the highest level of rental growth – nearly 11 per cent in the six months to June. This is partly thanks to a buoyant occupier market, which has left the vacancy rate at a 14 year low. Also, several high profile new tower completions have delivered space to the market capable of setting new benchmark levels for rents. Hot on the heels of London is San Francisco, where the office market continues to benefit from the city’s expanding technology sector. Rental growth for tower buildings exceeded Eight per cent, which is considerably higher than any other US city in the study. *Q4 2014 to Q2 2015, excluding exchange rate fluctuations.

Currency conversions as at 30/06/15.

CITY

PRIME RENT (U.S.$/SQ FT/YR)

SIX MONTHS GROWTH*

HONG KONG

$255.50

1.9%

NEW YORK CITY

$153.00

2.0%

TOKYO

$125 00

3.4%

LONDON

$122.00

10.7%

SAN FRANCISCO

$105.00

8.2%

SINGAPORE

$93.25

1.2%

SYDNEY

$86.50

0.7%

MOSCOW

$79.00

0.0%

BOSTON

$75.00

0.0%

LOS ANGELES

$73.00

0.0%

SHANGHAI

$72.75

5.3%

CHICAGO

$68.00

4.6%

BEIJING

$67.00

-1.0%

PARIS

$56.75

1.9%

FRANKFURT

$53.25

0.0%

MUMBAI

$52.00

1.3%

MELBOURNE

$46.25

0.0%

DUBAI

$43.50

0.0%

MADRID

$38.50

3.3%

TAIPEI

$37.00

0.0%

SEOUL

$33.50

2.8%

.

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PROPERTY

– THE PATH AHEAD

Every day thousands of people across the Middle East, search for real estate on Listaproperty.com. The team behind the platform gives SME Advisor the low down on how people search for property and the top real estate in the MENA region. We talk to Rasha Nashaat Hassani, Co-founder and CEO of Listaproperty.com.

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T

he property market is a fickle thing – and it’s particularly changeable in the GCC. This can, in part, be attributed to the large number of expats who are unsure of the length of their stay. Do they buy or rent? Add to that other factors include political instability, economic downturn and natural disasters and it’s no wonder the market modulates by the day.

In line with this month’s Cityscape Global exhibition, it is a good time to reflect on the state of the GCC property market.

Drawing on data from our property-listing platform, we have identified emerging trends in the regional market. Listaproperty is the first online solution of its kind in the MENA region offering first-time buyers, downsizers, upsizers and renters, competitive pricing, transparent reviews and direct access to MENA’s best-performing properties, as well as all the tools needed to make decisions quickly and securely.

The property platform features listings from 12 countries and works off live data, which we store for up to 60 days. For example, data from the last two months shows that 90 per cent of searches were for residential property, with only 10 per cent of users looking for commercial space. This is just the tip of the iceberg – in the sections below we outline the most interesting findings from the data at the MENA level, with a focus on Dubai and Abu Dhabi.

Data watch 1. We can see a number of trends emerging across Dubai’s property market. Property

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searches within Dubai Marina and the surrounding areas are on the up, as ongoing developments and a drop in property prices make the location more appealing.

2. In early 2016, there was a definite spike in searches for properties for sale in Al Barsha and Sports City. Enquiries to rent commercial properties in DIFC also increased.

3. The third trend we’ve noticed is a significant drop in the price range people are searching for. For example, in 2015 Dubai Marina and surrounding areas had an average price range search of between AED 120K and 200K. A year later, people have now reduced their budget to AED 80K to 160K. For many people, the Dubai Marina area has

90%

10%

of searches were for residential properties

of users are looking for commercial space

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always been too expensive. With the drop in rental prices, this part of town is becoming a more viable option; we may see a surge in citywide relocation.

Digging deeper

• MENA – The residential market in

the MENA region is witnessing a lot of activity. Our current data for the MENA region shows that 100 per cent of Kuwait properties registered on Listaproperty are residential, with only one per cent of those for sale.

Morocco has 87 per cent residential listings, of which only 30 per cent are for rent. Meanwhile, Jordan has 94 per cent residential listings with 45 per cent for rent. Similarly, to Jordan Egypt’s data shows 94 per cent of listings are residential, but only 31 per cent are for rent. It appears that beyond the GCC, homeowners are looking to sell their properties.

were in Bur Dubai for flats to rent, and properties in Dubai Marina and Sports City, making these three areas the suggested favourites.

Searches in August show that 73 per cent of searches in the UAE were for properties in Dubai and five per cent are in Sharjah. Job opportunities, amenities and a large existing expat community could suggest why Dubai generates more real estate interest than elsewhere.

In June 2016, searches for other emirates (excluding Dubai, Abu Dhabi and Sharjah) totalled 18 per cent. This could be because there are less expats outside Dubai, Abu Dhabi and Sharjah. International residents tend to be more transient than locals, which might explain the comparatively low number of

““

Oman’s data shows an increase in searches for apartments and villas both for sale and rent in Muscat, from 29 per cent in June to 66 per cent in August

• GCC – Our statistics show that only

two per cent of properties listed in Bahrain are commercial. Here, the most common search is for a villa, apartment or land for sale. Looking to Kuwait, the most common search is for apartments to buy or rent in the Mangaf area. Oman’s data shows an increase in searches for apartments and villas both for sale and rent in Muscat, from 29 per cent in June to 66 per cent in August.

• UAE – Listaproperty data tells us

that within the UAE 88 per cent of our listings are for residential properties and 12 per cent are commercial. Visitors to our website looking for a property in the UAE have searched bedrooms, apartments to rent and property for sale. The most popular searches in Dubai

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searches for property in the smaller emirates.

RASHA NASHAAT HASSANI CO-FOUNDER AND CEO LISTAPROPERTY.COM

SME ADVISOR

Abu Dhabi and Dubai – leading the pack In the UAE, Dubai and Abu Dhabi are the preferred areas to rent and buy property. Both emirates offer far more amenities, facilities and infrastructures such as malls and supermarkets, than other emirates and are always on top of the list for consumers.

From the collected data, it is clear that most searches in Sharjah and Abu Dhabi are for apartments to rent. Conversely, Dubai has more searches for property to buy in places such as Dubai Marina, Sports City, Palm Jumeirah and Business Bay. These hotspots are all underpinned by a solid infrastructure and have easy access to amenities and facilities such as malls and sports clubs. Considering the surrounding area is always an important part of a decision making process when it comes to property – areas with good provisions never fall out of favour.

Our statistics reveal that JLT, Downtown and Dubai Land are the most searched neighbourhoods for residential rent and

DIFC performs best for commercial renting.

Being the business hub of Dubai, it is not unusual that the Listaproperty DIFC page is getting a lot of views for commercial property to rent. The trendy stand-alone outlets that line the streets of DIFC, alongside the many commercial properties, are perfect for business meetings or after work socialising and make the area sought after for new and existing businesses in Dubai.

To put the year’s market movements into perspective, our 2015 top three searches in the UAE were ‘Dubai apartments for rent’, ‘Dubai apartment for sale’ and ‘Dubai Marina apartment for rent’. Let’s compare that with 2016’s top three searches: ‘three bedrooms’, ‘apartment for rent’ and ‘property for sale.’

This shows us that searches are becoming more generic and people are widening their choices in terms of location.

Listaproperty’s findings are a valuable resource to ascertain consumer preferences, but we’re not an authority on making market forecasts. That said, we do agree with the Jones Lang Lasalle’s 2016 Q2 Dubai report, which states: “providing there are no major external shocks over the rest of the year, we expect the Dubai residential market to recover in early 2017.”

The next year ahead Although the property market in Dubai has dropped by 16 per cent this year, it appears to have bottomed out and is now on the rise again. The long term real estate sector in Dubai seems very positive, supported by growth in the economy and infrastructure, as well as projects that attract residents and investors. We have seen stability in prices across the various sectors recently and this trend is forecast to continue.

Prices in many areas of Dubai have stabilised after a slow period. We see many clients who are interested in entering the real estate market today, as they see that the growing stability in the UAE has created an opportune time to invest. As the city grows, demand for real estate grows alongside it.

There is a lot of demand for affordable housing and we are yet to see a decline in this.

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Global property investment Global investor sentiment towards real estate

Preferred choice for investment:

Property investment across the globe in the first nine months of 2015 reached US$625 billion

82% of global investors are ‘high-likely’ or ‘likely’ to use debt when making future investments

44%

Investors not looking to make investments outside their domestic territories:

61%

Offices in central business districts:

11%

Latin American

48%

Industrial and logistics sector

17%

Australian and New Zealand

39%

Developments

17%

United Kingdom

38%

Shopping centres

are ‘likely’ or ‘highly likely’ to take on more risk over the next year

52%

Country comparison:

believe there is a lack of experience in investing

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63% of US investors expect investment volumes in the region to rise

24% of Asian investors are interested in the EMEA market

12% of Australian and New Zealand based investors are interested in this market

50%

Asia-Pacific investors expect to increase their portfolios in 2016

I nfographic of the month 043

Investors looking to invest outside their domestic territories over the next year:

41%

Asian

38%

Middle Eastern

36%

Understanding the preferences of GCC – as well as UAE – investors

61%

of UAE HNWI investors are likely to invest in a location of their preference in 2016

25%

of UAE HNWI investors are unlikely to invest in a location of their preference in 2016

49%

of GCC investors take into considerationthe recommendations of their friends and family while making a decision

America

Drivers of investment:

Top destinations for property investment include:

Rental yields

London

Capital value growth expectations

New York

Financial market performance

Tax reasons

Bangalore

How do investors intend to use their praoperty?

26%

Second home

25%

Capital gains

22%

Rent out to tenants

Investment Trends During the same time period, there were 26,122 investment transactions with investment from 149 nationalities

Investment in Dubai’s real estate market in thefirst half of 2016 was AED57 billion

Source: Colliers International Global Investor Outlook 2016, Knight Frank Attitudes Survey, Dubai Land Department, Cluttons Middle East Private Capital Survey 2016 SME ADVISOR

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Exclusive Interview: Dubai Properties In a candid chat with SME Advisor, Masood Al Awar of Dubai Properties (DP) shares his audacious plans for the future...

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MASOOD AL AWAR CHIEF OFFICER - COMMERCIAL DUBAI PROPERTIES

What is your assessment of the Dubai property market in the last 18 months?

How does this compare to the pattern over the past decade?

As per a new report from ValuStrat- the property consultancy, Dubai’s real estate transactions seem to be in stability mode and the general sentiment has been cautiously optimistic towards a recovery commencing in the second-half of this year.

They have attributed this confidence to latest sales bookings, improved regulations within Dubai’s real estate sector, and the overall growth of population, economy, tourism, number of visitors and infrastructure investments in the emirate. We are optimistic and so are other developers; we believe that the real estate market is undergoing the natural course of its cycle, and overall, our outlook remains positive. We are witnessing long-term interest from local and international investors We have over 10 years of experience in planning and developing a diversified portfolio that strategically responds to Dubai’s diverse needs and to the requirements of its residents, business and SME ADVISOR

visitors. For the past decade we have foreseen and developed our experience that allows us to be a driving force in reinvigorating the local real estate sector.

We are constantly working to explore new opportunities, despite the current economic slowdown, and are realigning projects to meet the market requirements when appropriate.

What real estate trends are you seeing emerge in Dubai (renting/buying, commercial/residential, short-term/longterm)? Where have these changes come from (influence of global economies, regional political tensions etc.)? How do you think these trends will develop in 2017 and beyond?

Affordable housing is a growing segment.

As the demand grows for low to midmarket homes, the country’s real estate developers have begun to enter this new housing segment.

Holiday Homes are changing the hospitality landscape. In the past, tourists, business travellers, and relocating residents would have opted to stay in a hotel.

However, holiday homes and short-term

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““

Market will be affected by disruptions relating to technology (i.e. online bookings), growing demand from new customer profiles (i.e. younger generation), broader hospitality offering (i.e. growth of resorts) and a general move from Dubai’s core luxury offering into a more broad based hospitality offering

residences have become a new favourite amongst Dubai’s tourist accommodations.

The short to long-term rental market is not only growing, but will also become a key factor in Dubai’s future tourism plans. Dubai’s Tourism Vision 2020 aims to welcome 20 million visitors per annum and the growing holiday homes market surely will play an important role in reaching that goal, as well as creating a new revenue stream for property owners.

With Dubai’s winning bid for Expo 2020, the emirate will see 25 million additional visitors for the six-month event, which will need the city to invest in infrastructure for the thousands of additional hotel rooms required among many other key additions.

New trends emerging in the Dubai property market: ϭϭ Affordable housing market and middleincome developments are a growing segment. ϭϭ JLL’s ‘2016 Top Trends for UAE Real Estate’ lists eight market trends and factors

that would shape the country’s property market:

• Increase in ‘Build-to-Suit’ (BTS)

and ‘Sale & Leaseback (SLB)’: Increasing interest in these concepts in the education and healthcare sectors. BTS and SLB solutions have been most prevalent in the office and industrial sectors.

• Adding value to existing buildings:

Renewed focus on adding value to existing buildings rather than developing new buildings, resulting in increasing demand for fit-out within retail, office and hospitality projects, as occupiers seek functional, productive, spacious and affordable premises.

• Changing hotel landscape:

Market will be affected by disruptions

relating to technology (i.e. online bookings), growing demand from new customer profiles (i.e. younger generation), broader hospitality offering (i.e. growth of resorts) and a general move from Dubai’s core luxury offering into a more broad based hospitality offering.

• Emphasis on building safety:

We are witnessing greater attention towards building safety from various stakeholders, increasing demand for well-maintained buildings with stricter fire safety guidelines and other systems.

In June 2016, Dubai was ranked by property consultancy JLL as the fourth most attractive market in the world for retailers, behind London, Hong Kong and Paris. JLL also said Dubai already had one of the highest per-capita SME ADVISOR

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levels of retail space in the world, as it has developed a reputation as a shopping tourism destination.

What makes the Dubai real estate market unlike any other in the Middle East? Why is property so crucial to Dubai’s economy and identity?

There are several key factors that put Dubai on a global pedestal within the real estate market – whether through its Expo 2020 flair in building giant shopping malls, high-rise apartment buildings and hotels across the city; infrastructure spending on projects such as Marasi Business Bay, Dubai Water Canal and Dubailand; supplying according to demand as property developers provide a calculated number of units in accordance with the demand, helping the market maintain a healthy balance; and increasing investor interest from all over the world, each element plays a vital role in cultivating Dubai’s economy and identity.

Affordable housing is a big problem the world over. Why is it such a challenge?

What problem does it pose in the UAE and Dubai? What are your plans in regards to affordable housing? How are you setting the precedent for other players in this region? How will it change the face of Dubai, both in regards to the real estate industry and economic landscape?

Dubai requires residential accommodation across a diverse cross section of housing needs. Data from the DLD suggest that the affordable housing segment must be given its due focus. DP develops and manages destinations to complement the long-term vision of the emirate and are dedicated to offering a choice of vibrant destinations for end users in the affordable housing segment in support of a drive by Dubai Land Department to stimulate the affordable housing sector. In line with this, we have launched projects such as Al Khail Gate, Remraam and most recently SME ADVISOR

the launch of Casa Dora at Serena, which continues to enjoy strong demand as it offers affordable family homes amidst a dynamic, integrated community concept.

Our strategy to offer master planned, integrated communities catering to a diverse customer base has proved very successful, and Casa Dora at Serena is a great example of how we are answering to the city’s immediate demand for affordable family homes, whilst offering long investment returns.

Further, we partner with leading financial institutions to support the needs of investors and end-users. Innovative and flexible payment plans are a must for a truly effective offering, and we always work towards providing the best payment plans and financial partners to help ease the accessibility, especially for end users.

““

DP develops and manages destinations to complement the long-term vision of the emirate

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EXPLORING EGYPT:

USHERING IN A NEW ERA OF GROWTH AND OPPORTUNITY

SME Beyond Borders Egypt was the first-ever occasion assessing the impact of international trends on the local SME scene - providing ground-breaking content, advice and discussion.​​

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EDITOR’S PICKS 01. The premier SME conference, SME Beyond Borders, grew up organically with the economic development of a key GCC nation, the UAE. Every year in Dubai, the event brings together more than 1,500 delegates in a glittering and insightful forum, from which Egypt now benefits for the first time.

02. SME Beyond Borders #TheMissingMiddle was a highly practical event and a unique networking opportunity. It showed business owners how to create the exponential growth that boosts capacity and brings market opportunities with promise and profitability.

Economic snapshot In addition to being a prominent emerging market, Egypt is a large, rapidly developing nation that has often been an attractive place for businesses seeking new sources of growth.

An IMF report suggests that the country’s GDP growth is forecasted at 3.3 per cent in 2016, with a prediction to reach a 4.3 per cent in 2017.

Even at a time when several emerging markets are reconsidering their policies, Egypt continues to champion economic change, with solutions and actions that can make a difference for entrepreneurs. For instance, the government recently amended its Egyptian Investment Law in order to strengthen its position on an international level and incentivise foreign investors. PwC’s guide on Doing Business in Egypt outlined key features of the Investment Law: • A government authority to help streamline administrative processesthe General Authority for Investments and Free Zones (“GAFI”) • Reduced sales taxes and customs duties • Reduced social charges SME ADVISOR

• Reduced cost or even free land from

the Government Access to these and other benefits are dependent on the sector, location and other parameters of the activity being undertaken by the foreign investor.

Moreover, large investments in infrastructural developments and megaprojects are expected to drive economic growth and have a positive impact on the energy, logistics, transportation and real estate sectors.

The SME agenda For centuries, Egypt has led the world in terms of volume and diversity of SMEs. In a nation with 1.6 million SMEs, nearly 80 per cent have only four staff members or less.

This is an indicator of the fact that the micro sector predominates, as is the case in most high-population markets.

When SME Advisor reached out to SMEs in Egypt, they cited the following areas as their top challenges – • Funding options and how they work • The power to attract highly-skilled senior staff

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• Key economic factors and how to ride

the trends • Pending regulations and what they mean To address these critical issues, CPI Business – in partnership with National Bank of Abu Dhabi – organised SME Beyond Borders #TheMissingMiddle. Aligned to the government’s overall vision for the sector, the event discussed access to finance, capacity-building and working within regulatory frameworks.

SME Beyond Borders – making waves in Cairo For the first time since its inception in Dubai, SME Beyond Borders put Cairo at the top of the SME agenda – with a keynote conference on the subject of #TheMissingMiddle.

On September 26th, at the Nile Ritz Carlton, Cairo, SME Beyond Borders - Egypt tackled a number of the major challenges impacting the nation’s SMEs. The event hashtag - #TheMissingMiddle - summarised a key theme of the discussions: the fact that so many Egyptian SMEs encounter

severe problems achieving growth and building capacity.

The event very successfully brought together senior members of the Egyptian government - including Minister of Overseas Co-Operation HE Sahar Nasr and Soha Soliman, Head of the Social Fund for Development - with leading figures from the private and public sectors. Key topics for discussion included the ‘credibility gap’ facing so many businesses as they try to grow and leverage funding and strategic support, as well as the quest to understand whose responsibility SME development really is.

With the three main sessions of the day focusing on ‘Strategies for the way forward’, ‘Finding the right skills’ and ‘Social entrepreneurship’, key conclusions included – • The emergence of a ‘gig’ economy, where micro-SMEs can play a very major role.

• The vital importance of good Governance and the need for even the smallest business to keep

properly-audited accounts - plus, the need to erect ‘firewalls’ between key functions.

• Better alignment between public and private sectors, with stronger training given to ensure SMEs can avail of the key opportunities on offer.

SME Beyond Borders was followed by Stars of Business - Egypt, the Cairo edition of the largest Awards programme in the Middle East.

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GRAND DESIGNS A partnership between the Government of Ajman and development company Solidere International, the Al Zorah venture is a lesson for developers in how to handle a mega-project.

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Stepping into the light Al Zorah is bringing Ajman out of the shadows and into the light.

A 5.4 billion square metre megadevelopment, Al Zorah promises to transform Ajman as a tourist and residential destination on a par with global standards His Highness Sheikh Rashid bin Humaid Al Nuaimi, Chairman of the board of directors, Al Zorah Development Company, said this June that: “Al Zorah is one of the most ambitious projects in the UAE and it is a matter of great

pride to see it finally coming to life. We are confident that our project will have a strong impact on Ajman and its economy and we are keen to fulfil our long term goal of providing a high-quality destination to both residents and visitors looking for something unique.�

The two billion AED phase one development is nearly complete (there are three stages in total). But, as His Highness hints at, the megaproject suffered from some mega-delays. In fact, it was very nearly axed; work stopped completely between 2009 to 2013 due to the

D igitally disruptive 055

recession. Al Zorah has encountered its fair share of obstacles in the eight years since its inception, but it is finally seeing some green growth.

Shaped by nature And green is an important word in Al Zorah Development Company’s vocabulary. “‘Al Zorah’ means ‘the green and natural place’ in Arabic, which is exactly what we’re building,” explains Imad Dana, CEO of the company.

Blessed with an abundance of mangroves and greenery, Ajman is rich in natural beauty. Crucially, Al Zorah is designed to enhance, not encroach on these green gifts.

The development is set in three million square meters of nature, home to over 58 species of birds and boasts 12 kilometres of waterfront. “Ajman is essentially a beach town, so we have given the community a Mediterranean feel by keeping buildings low rise, laying down jogging and cycling trails and dedicating nearly two-thirds of the total square footage to open public spaces,” Dana explains.

According to the masterplan, the majority of which is pending construction, the completed complex will include four marinas, a park and watersports centre, six hotels, nearly 1,000 separate residential units and an 18-hole golf course (operational since last December). Whilst much of Al Zorah still exists as a blueprint only, the first goalpost is in sight. “We’re almost there with the our first stage, which lays down the infrastructure of the roads, the golf course, flagship Oberoi hotel, first set of 42 residential villas and the resort-wide network,” Dana smiles. This last element may not seem the most significant, but on an operational level it certainly is.

Al Zorah is essentially a little city unto itself. With six hotels, numerous leisure and retail outlets and countless villas, the development’s technological capabilities need to be as sophisticated as its facilities.

Thankfully, Etisalat has got it covered. “We are working together; they are providing the resort-wide telecoms network, as well as all the phone lines and handsets. We have found them to be very professional and easy to work with,” the CEO notes. “It was a very important day when they came to begin laying the cable,” he adds. In a development Al Zorah’s size the network is the lifeline - cut if off and the whole community is in blackout. Dana knows this, and trusts Etisalat to keep his mini-city ticking.

Dark days But it’s not just a network failure that has to power to plunge Al Zorah into darkness.

Dana didn’t know it, but he couldn’t have picked a worse year to launch the project.

In 2008 residential prices in Dubai fell 50 per cent from a third-quarter 2008 peak to

EDITOR’S PICKS 01. The completed complex will include four marinas, a park and watersports centre, six hotels, nearly 1,000 separate residential units and an 18-hole golf course 02. Phase two of the project involves encouraging investors who have already bought land to begin building 03. It’s a chicken and egg scenario: if investors don’t develop then consumers won’t come, but if audience doesn’t already exist then why should businesses build?

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With six hotels, numerous leisure and retail outlets and countless villas, the development’s technological capabilities need to be as sophisticated as its facilities

mid-2009. The recession ran Dana’s plans for Al Zorah into the ground before it had even begun; Solidere International and the Government of Ajman were forced back to the drawing board. In order to make the development financially viable, the partners - who own an equal share of the project had to make some serious revisions to the master plan. This included fast-tracking the hospitality division. It was a smart move.

As part of the Expo, Dubai (just 45 minutes from Ajman) intends to bring in 20 million tourists a year by 2020. With this ambitious plan hotels ought to fare better than real estate - tourists need rooms for the night, not villas forever.

Even with the redesign, Dana had to bide his time. For four years the Al Zorah Development Company sat, watched and waited for the financial storm to pass.

Finally, in 2013 the wheels started turning again; at Cityscape Global 2014 Dana announced that 42 villas were up for grabs.

These properties either have views of the

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beach front or golf course and retail at approximately 1,250-1,600 AED and 1,000 AED per square foot respectively. “The villas that are ready are nearly all sold,” reveals the CEO, “end users like it because they consider Al Zorah a place they can totally live in, equipped with everything they need and with great access to its facilities and amenities,” he continues.

Indeed, Dana is has noticed an increase in the hubbub surrounding Al Zorah, and it’s not just the noise from the area’s many birds (including pink flamingos). “There are a lot of people coming now, locals and tourists alike.

We’re attracting people for sport, lifestyle and fitness. The golf is a particularly big success - in the 10 months since we opened we’ve made it into the top 10 golf courses in the region. On the weekends we are full; golfers go anywhere for the right course,” Dana smiles proudly. One thing that’s proving to be less of a hole in one and more of a runaround is the activity of Al Zorah’s investors. Or, rather, lack of.

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Indecisive investors Phase two of the project involves encouraging investors who have already bought land to begin building. But coaxing these parties into action is proving to be more of a challenge than Dana expected.

“It’s quite difficult to get investors to actually start on their development. It’s a job convincing them that consumers and end users are out there, willing and able to spend their money. These investors are waiting for the infrastructure to be in place - today people don’t like to buy off plan. They want to be able to see what’s going on,” explains Dana, whose company is responsible for the regeneration of downtown Beirut. There’s a section of land in Al Zorah which could potentially be claimed for retail and commercial purposes i.e. a mall. “But we need to be sure that market appetite exists before we decide on the sales phase for future releases,” Dana explains.

It’s a chicken and egg scenario: if investors don’t develop then consumers

won’t come, but if audience doesn’t already exist then why should businesses build?

Arguably, the situation is exacerbated by the current state of the property market in the UAE, particularly Dubai. On average, real estate has fallen 16 per cent in value since last year. It’s a dip that threatens to leave Al Zorah’s nine hundred and something proposed villas vacant for a while yet.

But Dana isn’t convinced that will impact their growth: “the market in Dubai is not a problem for our project. We are not putting a huge amount of stock on the market and we are seeing a lot of investors who want to live in Ajman.” There are a couple of other reasons why the CEO is so confident his project will pull in business. Aside from selling villas for approximately 30 per cent less than a comparable project in Dubai, Al Zorah was granted free zone and freehold status by the Government of Ajman. “This brings unparalleled value to residents and investors. It provides 100 per cent ownership of business, land, villas and apartments and

a hassle-free approach to setting up business to achieve the long-term growth objectives of our clientele,” Dana explains.

Eyes on the prize Al Zorah has experienced much adversity during the past eight years. Launched at the exact moment the UAE property market folded, Dana, Solidere International and the Ajman Government have had their work cut out taking their work from the plans to the land. In truth, the years ahead are likely to be equally challenging. It may take another eight years before the dream of Al Zorah is fully realised, but with phase one successfully drawing to a close, the way ahead is bright.

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FIX HER UPPER Deviating from SME Advisor’s standard case study format, we investigate the high points and hazards of taking on someone else’s enterprise.

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EDITOR’S PICKS 01. HomeShield was initially established by Johann Gerritsen, a fellow South African, who unfortunately became terminally ill 02. In any competitive market a high standard of workmanship and customer satisfaction is key – they’re the two factors that will make you stand out above the rest

Established: 2013 (Britz took the company on in 2015) Employees: Started with only four employees and currently we have 30 employees USP: The personal relationship we have with our clients Challenge takeaway:Success doesn’t come easy. And the motto I took from my father is “nothing great can be achieved without great enthusiasm”.

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Renovating the renovators Andre Britz has a talent for taking something old and making it new again. As Managing Director of renovation, refurbishment and maintenance company HomeShield it’s his job. But what happens when the project you’re breathing life into is not a bathroom but an entire business? That’s the challenge Britz faced when taking over HomeShield in 2015. The South African had knowledge on his side; he is descended from four generations of construction workers and has over 30 years industry experience in Europe.

But even with strong credentials Britz had a huge challenge on his hands. “I sat and asked myself, ‘how do I increase the revenue of an established company with a particular focus on clientele and standards?’ The difficulty was, and still is, knowing how to transform HomeShield into a company that stands for customer satisfaction, quality workmanship, and an overall professional service across all the sectors of our business,” the Managing Director explains.

A year on from the acquisition and Britz is successfully scaling that mountain. In Q1 of 2015 the company had 440 new enquiries, this year there were 560 (resulting in a US $653,000 increase on 2015’s Q1 takings).

The 25 per cent growth is impressive, particularly given that the property market in general - including maintenance, refurbishments and renovations - is down this year. But Britz isn’t calling time for a tea-break just yet. Rather, he is busier than ever with plans for a new warehouse in Sharjah and mobile app to help make booking maintenance easier for customers.

With so much verve and ambition, you would never guess that HomeShield is not Britz’s brainchild. Or, indeed, that he never intended to own the company.

“HomeShield was initially established by Johann Gerritsen, a fellow South African, who unfortunately became terminally ill. His wife Alice approached me about buying the

company because she wanted to return to South Africa to care for him,” the Managing Director explains. US $136,000 later and Britz was the new boss, sharing ownership of the company with his wife Natasha – an architect who manages the design division– and local Emirati sponsor (a silent partner).

“HomeShield had been trading for nearly three years when we bought it in 2015, so it already had an established client base in Dubai. In short, the company had a good business reputation, which made it an attractive business proposition,” explains the South African, who was previously in charge of over 180 outlets as Property Manager for Boylesports Ltd in Ireland. But a healthy client list doesn’t necessarily translate to commercial success when a company changes hands. Whilst Britz, for the most part, had his clients on side, his staff were another matter entirely.

Changing the furniture “Because of my hands-on approach, I think the initial reaction to me running the company came as quite a shock to the whole business. To be honest, some people did leave because they didn’t like that type of management style,” Blitz reflects. Does he lament the impact his entrance had on staff turnover? It doesn’t seem so. The Managing Director notes that getting the right staff and training them well is a real challenge.

“The biggest problem we face as a business is the development or retraining of our staff to conform to European standards in order to maintain a high level of workmanship.

Like all things, it has taken time. But now we have more uniformity in the skills, expertise and service of our employees across the board,” the South African smiles.

Being a hands-on boss has enabled Britz to improve more than just his internal relationships; the Managing Director believes he really knows his clients. “The first thing I wanted to do was have personal interactions with clients to understand how

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ANDRE BEITZ HOMESHIELD CEO

MARIUS HOMESHIELD SENIOR MANAGER

NATASHA VAN WYK HOMESHIELD PARTNER & SENIOR ARCHITECT

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they feel about the services we deliver,” he explains. It turns out that a business health-check was exactly what HomeShield needed – Britz found underlying fractures in client-company relationships.

are loath to pay a fair price for quality work. “Customers immediately want to negotiate a contract, but they often try and push it to a price where we are not able to provide the service and standards that we hold true to as a company,” the South-African sighs. For loyal clients and those familiar with HomeShield’s work, it’s not necessarily a problem. But it becomes problematic when pitching for new business against an unscrupulous, cost-cutting competitor. In these situations Britz holds true to his beliefs and faith in European benchmarks as the foundation for business success. After all, winning new contracts is a false victory if it means losing a good reputation. “In any competitive market a high standard of workmanship and customer satisfaction is key – they’re the two factors that will make you stand out above the rest.

Ultimately, it is all about word of mouth references that is building our clientele,” the businessman explains.

The Middle Eastern maintenance and refurbishment market has many players, all operating at different levels of service

Cracks in the foundations “The Middle Eastern maintenance and refurbishment market has many players, all operating at different levels of service.

You really feel the impact of this when dealing with customers – many think that all contractors want to rip them off,” the Managing Director laments. A cursory look at reviews of local providers online confirms a huge disparity in quality of service and general outrage of many ripped-off residents. This doesn’t sit well with Britz, whose company tagline promises to ‘give you the level of customer service you expect but don’t always get with other companies in the UAE.” Unfortunately for Britz, widespread mistrust of the market means people

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The company has a solid revenue stream in the form of its maintenance division

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Extending the parameters And HomeShield is indeed growing. The SME enjoyed revenue of US $653,000 in 2015, up on 2014’s US $450,000. The company has a solid revenue stream in the form of its maintenance division, but Britz claims he has quadrupled yearly turnover by concentrating efforts on refurbishments and renovations. Since taking over the company the South African has remodeled this area of the business, introducing a ‘design and build’ product. “It’s a turnkey solution that helps our customers with the redevelopment experience, from the design phase through to dealing with tricky municipal approvals,” Britz explains. The new service is selling well, as the surge in the number of 2015 and 2016 Q1 enquiries shows. So well, in fact, that Britz is renovating his own facilities.

“We decided to rent a new warehouse in Sajja, Sharjah. We needed to increase our factory space, and Sharjah is the perfect

place to expand in an affordable way.”

The facility will deal with the back-end of construction and will be fully operational by November. Britz is also planning to increase staff headcount by 30 per cent to ensure the new warehouse runs in an organised and productive way.

With customer satisfaction at the heart of HomeShield’s offering, the Managing Director is also investing in new technology to improve the customer engagement experience. A new smartphone app promises to streamline the process of booking maintenance. “The app that will allow customers to book an appointment for a service engineer, cleaner or painter online without having to make a call,” Britz smiles.

The portal isn’t set to launch until January 2017, so customers will have to sit tight until then.

Establishing an SME is a huge challenge, no questions. But reestablishing an existing company can be an equally daunting task; you inherit all an organisation’s strengths, but also their weaknesses. When Britz took over HomeShield a year ago he had a hard time convincing customers and employees alike to trust him. But patience and perseverance has paid off. “After 30 years of being in the construction industry, I think I’ve reached a stage in my personal development where it is expected of me to be the mentor, or at least to know what to look out for in the business,” the South African smiles. His parting advice to other entrepreneurs? “It’s something my father told me as a young man that has always stuck with with me: ‘nothing great can be achieved without great enthusiasm.”

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THE BOUTIQUE BROKERAGE Launched during a downturn in the market, MENA Properties has spent the past four years fighting for its place in the market. Headed by two feisty females, the SME has no signs of stalling anytime soon.

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EDITOR’S PICKS 01. MENA Properties is a brokerage agent between the region’s buyers and sellers 02. MENA Properties has sales deals in place with some the region’s most powerful developers, including Emaar, Azizi and Danube 03. A real estate brokerage that is resolutely small, the company prides itself not on its takings but rather the time it takes to ensure clients find ‘a home, not a house.’

Established: 2012 Employees: 17 USP: A tradition of excellence and transparency in a boutique set up Challenge takeaway: Starting a new venture is a lot of hard work.

Keep pushing for the little victories because eventually they will add up to a big victory.

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Size matters In the world of property, bigger is always better. Nowhere is this truer than in Dubai, where the imperious Burj Khalifa presides over the emirate, drawn up in all its 830 metre magnificence. MENA is no place for modesty when it comes to property; residents want bigger homes with better facilities and all – of course – for less money. What role can a pocket-sized company possibly play – it’d get bulldozed by the big boys, right? Wrong. In a market where the real estate titans spend their day sparing for multi-million dollar contracts, the boutique brokerage can do good business.

Being small might mean you’re out of the running for the meatiest deals, but it gives you a flexibility to cater to small and medium-sized clients. This is sweet spot MENA Properties occupies in the market. A real estate brokerage that is resolutely small, the company prides itself not on its takings but rather the time it takes to ensure clients find ‘a home, not a house.’

Established in 2012, the SME is owned and managed by partners Rasha Hassani and Kimberly Kelaita, who funded the company with US$ 272,000 of personal funds. The founders have bootstrapped their way through the last four years, building a team of 17 ‘seasoned and highly experienced’ agents along the way. As the name suggests, MENA Properties is a brokerage agent between the region’s buyers and sellers. The company’s main revenue stream comes in the form of commission on residential and commercial releases and sales, but the company is not busy with brokerage alone. “We offer additional services such as assistance with DEWA, Ejari connections and cleaning and clearing a property out pre and post-tenancy,” Hassani explains. “It’s not just about renting or selling, it’s about delivering a comprehensive service that’s underpinned by personal and professional care,” the Founder continues.

Crucially, although the MENA Properties team is comparatively small, their reach is not.

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The ripple effect “In the property industry a strong network is always important. We believe in working with other brokerages, developers and stakeholders in this way,” explains Hassani, who has been working in real estate since 2002. Aside from cooperation agreements with other brokers, MENA Properties has sales deals in place with some the region’s most powerful developers. “We’ve maintained a good relationship with government authorities by stringently adhering to RERA and DREI’s rules and regulations. Also, from an SME perspective, the Entrepreneurs’ Organization has been a tremendous support to me,” the businesswoman adds earnestly. From mutually beneficial brokerage agreements to personal platforms for professional growth, Hassani has lined up a number of clever connections. In doing so, she has created a network that projects her reach far beyond the influence of her 17 employees

alone. It’s a smart business model to maximise results without increasing HR overheads.

Timing is everything Today Hassani prefers to maintain a small team, but it wasn’t always a matter of choice. “We started in 2012, a difficult time for the property market in the Middle East. The downturn meant that it was very hard finding the right talent – many people were leaving the industry altogether,” Hassani recalls. It wasn’t just attracting employees that was tough; clients were hard to come by too.

In a market still raw from the 2008-2009 recession, people were loath to making large purchases like property. Everything seemed too risky. “We encountered a lot of skepticism and negativity, so we had our work cut out convincing clients that investing was prudent for their future success,” the Founder explains.

Entering the market during a downturn is always a challenge, even with Hassani’s fourteen years of industry experience. But although the Founder remembers 2012 as a stressed, sleepless blur, her decision to launch MENA Properties during a dip made sense. “Starting operations during a period of low activity meant that we could take our time entering the playing field.

We ran a very tight ship to begin with and kept outgoings to an absolute minimum,” Hassani explains. Would it have been better to hold out until the market picked up? “I don’t think so – I mean, you can’t benefit from the market if you’re not even in it!” she laughs. She’s got a point. “We always believed in the Dubai story – there was never any question in my mind. Besides, the government didn’t stop planning new projects, which gave me faith. I know how the property cycle works, so looking around in 2012 I knew where we were at and that the market would soon

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Hussani has plans to increase MENA Properties’ presence in the coming years.

Starting with the core of her company, the Founder is seeking out five new star employees to join the team

improve,” Hassani continues. This intimate understanding of the market is something Hassani has made her mission to impart to her team.

A team effort “MENA Properties’ culture and ideology is built around knowledge. The reason people seek us out is because we know our subject back to front and inside out,” the Founder surmises. Each week Hassani sends her team copies of the latest reports and market analysis for them to study. “My team are on the front line – they need to know exactly what is going on.” Hassani has high expectations, but her team don’t disappoint; she claims they are her proudest achievement to date. The fact that approximately one third have stayed with her since her start-up days would imply

the feeling is mutual. “We are a close-knit group of people hailing from all over the world, including Egypt, India, Lebanon, South America and obviously the UAE,” Hassani beams, “there’s a definite sense of family to things.”

Interestingly, 70 per cent of the MENA Properties team are women. Led by two ambitious ladies, perhaps it is not surprising that the SME attracts other fierce females. As evidence of Hussani’s commitment to her gender, she volunteered as a panellist for the Women Empowerment discussion at the United Nations Global Compact event in Dubai earlier this year.

Perhaps inspired by her experiences, Hussani and Kelaita decided to extend MENA Properties’ maternity leave policy from the mandatory 45 days to 60 days.

“Having a child is one of the most important events in a woman’s life and we lengthened the maternity leave to ensure mothers have a comfortable transition back into work,” Hussani explains.

New additions Speaking of widening the family, Hussani has plans to increase MENA Properties’ presence in the coming years. Starting with the core of her company, the Founder is seeking out five new star employees to join the team. The entrepreneur is also shaking up the companies’ technological capabilities. “We’re exploring new software that will benefit us and enable the agents to work more efficiently – perhaps an app,” she reveals. With new hires and technology on the agenda, does this mean Hussani has an investor in her sights? “No, nothing like that just yet. Although we would entertain the possibility, providing that they share our company ideology and vision,” Hussani surmises. For now she’s busy charting that property cycle, confident of an upturn any day now. “As the city grows demand for real estate grows with it. We put our faith in the Dubai story back in 2012 – that prophecy is starting to pay off now,” she concludes.

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TURNING THE BLUEPRINT GREEN For the country with one of the highest carbon footprints in the world, green building needs to be high on the UAE’s list of property priorities. Luckily, Diamond Developers is leading the way with The Sustainable City, a Dubai project dedicated to green living.

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G

reen isn’t a colour commonly associated with the UAE. A hot yellow sun beats down on golden sands below; you’re more likely to come across a cactus than lush green foliage. Whilst we can’t change the climate and turn desert plains into fields of daises, the Emirates is making a considerable effort to clean up its construction act.

With many MENA countries boasting their own green building councils, the sustainable share of the real estate market has soared.

This sub-sector earned revenues of US$ 17.91 billion in 2012 and is projected to reach US$ 22.97 billion by the end of this year. There are now 1,236 Leadership in Energy and Environmental Design (LEED) rated projects in the GCC, of which two thirds are located in the Emirates. In real terms this means approximately 34 per cent of recent MENA real estate projects are green built.

This figure is in line with current global averages, but the Dodge Data and Analytics World Green Building Trends

2016 SmartMarket Report thinks this will change - for the better. It reports that the number of businesses looking to make at least 60 per cent of their projects green will nearly double from 22 percent in 2015 to 40 percent by 2018. The anticipated increases in green involvement suggests that the MENA region will be critical for the surge in sustainable building globally in the next few years.

Taking the trend to heart is Diamond Developers, the company behind The Sustainable City. The US$ 299 million project is, arguably, the most advanced green building venture in the region.

From the solar panels patched onto car park rooftops to the Innovation Centre a hub for the latest green technologies and educational drives - the City is as sustainable as it gets: cut it and it would bleed green blood. The first phase of development is nearly complete and the complex is already home to 180 families, a

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EDITOR’S PICK 01. In The Sustainable City, we have incorporated modern technologies that have significantly cut the energy bills of our residents 02. Referred to as ‘the brain’ of The Sustainable City, the Diamond Innovation Centre is the first negative lifecycle footprint building in the region when it opens in 2018

number set to stretch to 230 by the end of this September.

With green building tipped to colour the property market for years to come, we sat down with Faris Saeed, CEO Diamond Developers to discuss the revolution and how The Sustainable City is putting it into practice.

Where did the idea for The Sustainable City come from?

We’ve been developing a lot of conventional buildings in Dubai since 2003. But when the global economic crisis took Dubai and the rest of the world by storm in 2008 we realised that the incessant construction activity had not considered the environment.

Either the buildings were poorly insulated or overly exposed to the sun, resulting in high energy demand for air conditioning.

We realised there was a need for sustainable development. Now that we have realised our vision by delivering the first phase of The Sustainable City, Diamond Developers’ focus is only on sustainability.

What was your planning and development process?

Our research was very in-depth. We spent a good four years studying sustainability and green building requirements. We worked with a lot of green building consultants, manufacturers and vendors to learn from their expertise. Our research covered the whole spectrum of sustainability, including energy, water, air, mobility, farming, waste and building materials.

What problems have you encountered and how did you get past them?

One of the problems that we have encountered is with the rules and regulations in the community. We have introduced innovative technologies in The Sustainable City and we had to explain to residents/people about their advantages, and help them smoothly transition to

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a more sustainable lifestyle. Our social sustainability team will host over 100 events per year, but we still need to engage with residents on a one-to-one basis.

Phase One is due for completion this year - what does it involve?

The first phase comprises five residential clusters, a buffer zone, a central green spine, an equestrian club and a mixed-use development. The residential area includes 500 villas grouped into five clusters and is connected to an urban farm that runs the length of the city. Solar rooftop car parks produce additional electricity to power street lights, bio-domes, greywater treatment, wind towers and the community pool.

Clusters are car-free zones and only accessible on foot or electric buggies through narrow ‘sikkas’ that link the city together. The city’s electric charging stations are available to EV owners free of charge. There is ample outdoor space, including plazas, playgrounds, tracks and the green spine. Each cluster has a central plaza with a ‘barjeel’ wind tower to minimise the heat island effect.

The mixed-use area comprises five lowrise blocks with retail and leisure outlets and well as apartments for lease. The aim of the retail area is to provide services to sustain resident families, whilst attracting merchants to set up businesses to add to the community’s economy.

How many families have moved in so far?

We already have 180 families enjoying the City and are expecting the number to increase to 230 by the end of September. We hope to see occupancy levels hit between 80 and 90 per cent by year-end.

What has been the single biggest milestone to date?

The first family moving into The Sustainable City. We spent six years, four years of research and two years in development, working towards that moment. It was very

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The City’s school will open in September 2018, with the Diamond Innovation Centre and Hotel Indigo also launching by the end of 2018

special - now people are experiencing what we have planned and built.

In the short term, what’s next for The Sustainable City?

The next step is Phase Two, which will start from early 2017 and should end by mid2018. From an operational perspective, the City’s school will open in September 2018, with the Diamond Innovation Centre and Hotel Indigo also launching by the end of 2018.

The school will refresh educational standards for learning environments across the Middle East. The school layout incorporates features that enable classrooms to open out naturally to cooled areas ventilated by wind towers. Various facilities such as the bio-domes, Science Museum and Diamond Innovation Centre - all focal points within the community - compliment the sustainability lessons taught in school.

Hotel Indigo will be Middle East’s first net-zero energy hotel brand. The hotel architecture encompasses a low-rise, unobtrusive design, nestling within the City’s

lavish foliage. All waste water produced by the hotel is recycled, and all material waste is sorted at source and recycled, meeting the highest environmental, social and commercial sustainability standards.

Does green building offer a better return on investment?

Of course! Our research on consumption and the cost of operation shows that incorporating sustainable technologies means big savings, particularly in relation to water and energy.

In The Sustainable City, we have incorporated modern technologies that have significantly cut the energy bills of our residents. When it comes to water and electricity, residents save between 40 to 60 percent by living in a green home. As for water bill, savings average between 30 to 40 percent.

Do you think green construction is on the rise?

Yes, I believe so. We are trying to lead the market towards that by improving and

introducing new technologies. There is a misconception that going sustainable means higher costs, but - in fact - it doesn’t.

Sustainability on the brain Referred to as ‘the brain’ of The Sustainable City, the Diamond Innovation Centre is the first negative lifecycle footprint building in the region when it opens in 2018. This means that over an anticipated 50-year lifespan, the building itself will produce 140 per cent of its energy requirement. That means offsetting emissions during construction, operation, and decommissioning.

Karim Eljirs, Director of Diamond Innovation Centre, is the brain behind the brain. “The Diamond Innovation Centre is a groundbreaking new Centre that marks the start of a new era in the field of sustainable studies in the region,” Saeed explains. “There is a great deal to be done to head the Middle East towards an environmentally sustainable future and this facility has been set up to lead the way by addressing both regional and global challenges,” he continues.

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Sheikh Zayed Desert Learning Centre. But the Innovation Centre combines unique design features to simultaneously provide the highest energy performance and the lowest carbon footprint. We hope to set a new benchmark in architectural design which combines utility with amenity.

The Centre is the first negative lifecycle building in the region - is it difficult to achieve such a feat in this part of the world?

Yes. The greatest challenge during construction will be to select the appropriate building material with the lowest carbon footprint (since the carbon footprint of conventional buildings is considerable). The greatest challenge during operation will be to maintain the lowest possible cooling requirement and to match this demand with the lowest energy footprint. Maximising daylight penetration and ensuring a healthy indoor air quality are also important design challenges.

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The Innovation Centre launched a multiyear partnership with the University of Davis in California, and several partner universities in Beirut, Cairo, Sharjah, and Birzeit in 2014

Through research and development, the Centre will showcase the latest global advancements in sustainability. Training courses will be offered alongside advisory services to students and professionals alike, looking to broaden their knowledge of all things green. We take a closer look at the Centre and how it will help shape sustainable initiatives across the region.

How did the innovation Centre come about?

We planned to build the Innovation Centre as a way of showcasing the green design and technologies implemented in the City.

It is a way for us to capture and spread knowledge and experiences to residents and visitors alike.

What was the planning process?

There are many interesting and iconic developments in the region, such as the

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What are the major challenges you are expecting during development?

Construction will commence in early 2017 and the opening is slated for fall 2018. The building will require many approvals from various government entities including Dubai Municipality, Civil Defense, and DEWA. The plan is to build the Centre off-grid, which means it will be self-sufficient in both energy and water. We are therefore looking into the various solutions that will achieve this target while ensuring optimum building performance. Major challenges include energy storage during the day (to offset energy consumption during the night) and water supply and treatment (from non-conventional sources).

Where did the educational angle come from? Why is this important to the work of the Centre?

The Innovation Centre launched a multiyear partnership with the University of

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Established: 2003 Employees: 50 USP: Meeting delivery timeline at all cost Challenge takeaway: One has to be always ahead and continue thinking in an innovative and creative way

Davis in California, and several partner universities in Beirut, Cairo, Sharjah, and Birzeit in 2014. So far, the collaboration has delivered innovative research in the fields of waste management, urban farming, water treatment, energy storage, and behaviour science. We also cooperate with several Dubai-based universities, including Heriot-Watt and the British University in Dubai. Our goal is to position the Innovation Centre at the intersection between research, development and practice. The universities will also be involved in the Innovation Centre’s professional training courses including field training and blended courses.

What can we expect from the Centre when we eventually experience it?

Once open, the Innovation Centre will be a unique destination hosting shows, exhibitions, conferences, seminars, professional mixers, product demos and more. We envision the Innovation Centre to become a melting pot for sustainability thinkers, innovators and problem-solvers as well as ecologically-conscious residents and visitors.

be many synergies with other facilities including the school, the junior innovation Centre, and the hotel. It will also house a smart unit which will capture environmental data from the city’s residential and nonresidential units and facilities. The smart unit therefore will become a repository of data about energy, water, air quality, mobility, urban farming and waste in The Sustainable City.

How does the Innovation Centre promise to change the future of construction and architecture in the Middle East?

The Innovation Centre will help accelerate the transition to sustainability in the built environment. Dubai’s Leadership has already launched many programmes to position Dubai on a path for greener growth; those include Dubai Plan 2020, Green Economy and Energy Strategy. The Innovation Centre therefore will complement these programs by demonstrating greener practices and inspiring change across the sector. The Sustainable City is effectively a living lab for sustainability.

How does the Innovation Centre fit in with the general mission of The Sustainable City?

The Innovation Centre is part of The Sustainable City’s master plan. There will SME ADVISOR

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Property, places and profitability –

Propertyfinder.ae Operational mastermind and COO of Propertyfinder Paul Stewart-Smith talks about the challenges of building a world class team while running a million dollar business.

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EDITOR’S PICKS 01. Michael’s vision has proved to be quite on point; his business model of catering to the needs of property buyers and developers has completely disrupted the market 02. With growth and regional expansion and with increasing maturity, the business needed to be able to scale in a consistent way, it needed to be able to predictably handle the challenges faced by each market 03. Propertyfinder has always been groundbreaking and the move to having better corporate governance and structure was no different

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Solid foundations Paul Stewart-Smith and his team are trying to give property buyers a powerful new tool: high-quality, credible real estate listings in the region available in real time at the click of a button. “Spend a few weeks as a property buyer and you realise how challenging of a process it is,” he quips.

“How many times do you come across a listing (that you consider to be perfect), but on calling the broker you find out that it has just been sold? Or, think of all the times you wished you had access to an expert, who could do all the initial ground work for you. It was these instances that inspired Michael Lahyani, CEO and Founder of Propertyfinder to build a platform that would make house hunting a hassle free journey.”

Looking back to the days of start-up and inception, Paul remembers: “In the mid-2000’s, the classifieds section of the local newspaper was the only source people had to find their future homes.

There was no other channel available that could provide detailed information on properties. Propertyfinder was born out of the desire to fill this obvious gap in the market.” Michael’s vision has proved to be quite on point; his business model of catering to the needs of property buyers and developers has completely disrupted the market. At one end, it fulfils the requirements of anyone looking to rent or buy a property across seven countries in the Middle East, while at the other end it is a platform for developers, brokers and agents to spend their marketing budget in an effective way.

Though Propertyfinder has transformed the property market, it still has a long way to go, reckons Paul – the man steering the operational side of things. “Every morning I come to work thinking about the company’s larger vision and ensure that the team is moving one step closer to it. We may have passed the ‘start-up’ stage, but we are as ambitious now as

we were then. We put a lot of emphasis on shortening the lead time for both our clients and end users. More importantly, we are focused on the quality of our content, leads, listings and partners. In fact, we’ve invested in technology that can help us set up quality algorithms that enable features such as ‘verified listings’, ‘call tracking’, ‘find agents’ and much more!

A tall order Propertyfinder’s leap from a start-up to a growing enterprise has been very impressive.

Even so, the company – like any other small business – has had to face its fair share of trials and tribulations. “One of the biggest challenges was incorporating all the necessary corporate governance mechanisms within the business. We were being run as a ‘single owner’ business and had to appoint an independent Board of Directors to help with the critical decision making process. This meant that individuals were not the source of all activity but rather roles within processes aligned to our overall strategy became the foundation that the business operated on,” Paul confesses. “From a business owner’s point of view, this required relinquishing some amount of control and trusting the opinion of the experts. Of course this wasn’t easy – for Michael and the team. It involved internal restructuring and there were definitely some members who couldn’t make the adjustment.”

Speaking on the motivation to make this shift, he says: “With growth and regional expansion and with increasing maturity, the business needed to be able to scale in a consistent way, it needed to be able to predictably handle the challenges faced by each market. That also didn’t mean becoming fixed and rigid; markets of varying maturity and specific needs required us to have the right governance and control whilst maintaining the agility that allowed us to become the clear market leader. In an environment where many ideas and opportunities exist, having the ability to

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accurately and consistently assess the best ROI for each option and execute flawlessly to achieve our goals was essential.”

Building blocks for growth With their eyes set firmly on the larger objective, the Propertyfinder team came together to surmount the challenge they faced. “In order to scale, it was important to set clear definitions of every team member’s role. And, this started from the top. For instance, the COO’s position was filled in to bring in structure and to develop the rigour that brings predictability. The alignment of the senior team across all locations was vital; it enabled the Group to speak with one common voice and guide the organisation at a key stage in the development of the business. In essence, the single voice of the Board started the communication flow consistently throughout the organisation.

By enabling our team to communicate the relevant information to their teams, we

began to see a more unified feel within the organisation. Interdepartmental connections became more of the norm and there was a better understanding of what each team was working towards. Clear KPIs for the team meant that each area of the business knew what was important for it to focus on to achieve the best result for the overall Group.”

“We eased the process for the team by organising extensive individual interviews, which helped us understand their concerns, get their feedback and evaluate their performance.”

How has the business fared since this transition? “Propertyfinder has always been ground-breaking and the move to having better corporate governance and structure was no different. It enabled every team member to know exactly how they can best contribute to what the company is looking to achieve and it ensured that we are as cost effective and received the greatest value on our investment. But what I consider to be

US$200 mn The valuation of Propertyfinder in January 2016

US$20 mn The amount for a 10 per cent stake in the Propertyfinder Group, which was sold to Sweden-listed investment firm Vostok New Ventures

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The alignment of the senior team across all locations was vital; it enabled the Group to speak with one common voice and guide the organisation at a key stage in the development of the business

the best outcome is that we’ve emerged as a stronger team.”

Echoing the sentiments of most other business owners, Paul regards his team as his biggest asset. “PropertyFinder prides itself on recruiting some of the world’s best talent. What is essential is the retention and development of that team. We conduct Townhall sessions, share regular updates from the Board and management meetings and have an open, inclusive culture that encourages people to participate.

Development of our employees is pivotal as we want them to be future leaders of the organisation. The market has experienced one its strongest challenges recently and we have expanded our team in all locations.

Why? It’s because we believe that by investing in the right team doing the right things, we can offer our clients the best value for their marketing spend.”

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Breaking ground: the future of Propertyfinder Moving past current challenges, Propertyfinder is finally on track and has big ambitions for the future. For Paul it all comes down to giving clients the best value for their marketing spend. “No matter how fast we grow or how large our organisation becomes, our clients will always remain our top priority.

This is our focus, rather than focusing on what our competitors may or may not be doing, we want to focus on making sure we deliver all we can to our clients and consumers, if we do that to the best of our ability then we will succeed,” he surmises.

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Numero Uno – One Business Centre

DMCC Ryan Kuchel explains why his plush offices are poised to drive innovation – notably in the serviced offices space…

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W

e have heard two words a lot in our interactions with over 50 SMEs in the past six months: profitability and simplicity.

There’s nothing better than a business that provides a solution without any unrequired complication or added expense.

Set in the heart of the region’s most prolific freezone, One Business Centre DMCC is doing exactly that. Offering a range of luxury, fully serviced offices and creative co-working spaces, the provider has established a reputation for being a one-stop-shop for all its customers’ needs.

“We keep things simple by focusing on one critical mission: giving our customers what they need. Our entire business premise is based on delivering high levels of customer service i.e. being timely and effective,” enthuses Ryan Kuchel, Director at One Business Centre DMCC. Looking back to the time of inception, he reminisces: “The idea for One Business Centre DMCC came from the challenges I faced when setting up a previous start-up; it was difficult to wrap my head around the legal requirements. My personal experiences inspired me to create something that would not just solve this problem for fellow entrepreneurs, but give them a great workspace as well. At the time of launching, the economy was only just starting to recover in 2010. However, in hindsight, this was an opportune time to launch as there was substantial movement in the market with many new start-ups and internationals entering the Dubai office market, thereby spurring on demand for our services.”

Ryan vividly recalls the launching and development process: “Prior to committing to the project, we reviewed existing providers through a mystery shopping process to collect data on their services, service levels and respective pricing plans. Once this was established, we assessed our competitors through a SWOT analysis and implied market rates to build a financial model which determined that there were gaps

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One Business Centre’s offering: • Premium grade, centrally located LEED Gold rated building with dedicated covered car parking • From individual workstations to offices for 3-10 people • Internal business lounge and meeting rooms • Company licences and working visa allocation • The latest technology infrastructure • Freezone company incorporation – 100% ownership

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Established: November 2011 Employees: 57 Year on year growth: 55% on average USP: We are arts meets commerce that teaches people how to marry creativity and business in a synergetic relationship Challenge takeaway: Comprehensive turn-key business setup and business centre services in a prestigious corporate environment, with several prime locations throughout Dubai and Jeddah

or opportunities in the market for a different price/service provider to succeed. Separately, we ran a thorough canvass of the market to ensure that we could secure a prestigious address in a prime locality on superior lease terms.”

“This planning process began six months before launching, but of course we’ve been constantly evolving in terms of what services are being offered, how they are being delivered and what we are charging – which is I believe is the natural cycle of growth for any business. The most challenging issue, at the time of our launch, was dealing with processing and company formation delays.

However, these were mitigated by ensuring lease contract payments would only start when we had all the required information in correct format from these parties.”

This calculated approach has propelled One Business Centre into an SME success. It now stands as a premium business centre providing a range of luxury, fully serviced offices and creative co-working spaces supported by in-house services including company incorporation, full PRO services and extended reception services. That’s not all. The business has experienced SME ADVISOR

exponential growth since inception growing from about 30 clients in 2011 to more than 800 in 2016. Speaking of what he considers as his biggest milestone so far, Ryan says: “We’ve achieved many milestones along the way during our expansion, however, there was none more satisfying than our launch into the KSA with local partners. This was our first foray into a new market outside of the UAE and was the coming of age of our business.”

Going past challenges It’s been a bumpy road for Ryan and his team. “The biggest challenge we have faced has been getting paid in a timely manner and managing our cashflow effectively.”

But this hasn’t deterred his spirits. In fact, it has motivated him to push his business even further. “We revised our strategy and restructured contract payment terms.

Keeping upfront deposits and requiring postdated cheques has mitigated issues relating to receivables outstanding and bad debts.”

“Access to bank debt, lack of bankruptcy laws and criminalisation of bounced cheques are possibly the biggest challenges facing small business that are looking to

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““

Offering a range of luxury, fully serviced offices and creative co-working spaces, the provider has established a reputation for being a one-stop-shop for all its customers’ needs.

grow in this region. However, the government has been very proactive and the good news is that the bankruptcy law for the UAE is being proposed and when enacted, should alleviate some of these challenges,” he adds.

Sky-high ambitions What does the future hold for Ryan’s growing enterprise? “Our short terms plans include expansion of existing locations and introducing one or two new locations in Dubai and Abu Dhabi. In the long-term, we are eyeing regional expansion. We see great opportunity both locally and globally for offering flexible space solutions together with support business centre services – and we will continue filling the gap.”

“Moreover, we understand that the delivery of our services must continue to evolve in line with our competitors – and the market in general.

We are investigating several ways to expand our range of services and to deliver our services in a more direct way i.e. through digital channels.”

Before we wrap up the conversation, we ask Ryan for his advice to fledging entrepreneurs.

“Do your homework. Research is of paramount importance. Be confident, trust your gut instinct and always believe in yourself,” he concludes.

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Alexis Waller, Partner at Clyde & Co Dubai, talks us through what businesses should look for before entering into a property sale, contract or a lease.

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Evidence, either in the form of receipts or a clearance certificate, that the seller has paid any relevant service charges should be requested

O

ver the years, there have been various articles and reports in the press about property disputes and property scams that have taken place. The principle of caveat emptor or “buyer beware” applies to real estate transactions. Similarly, tenants should be aware of their position prior to signing any documents. By carrying out proper due diligence, a prospective buyer or tenant can avoid a lot of potential problems. This article aims to provide a brief overview of types of due diligence that can be carried out by the relevant business before a sale and purchase agreement, or a lease, is signed. Whilst the focus for this article is on property located Dubai, the same or similar considerations apply when dealing within the other Emirates.

Acquiring property If you are looking to buy property, then the following comprises a list of basic steps that should be taken before a sale and purchase agreement is entered into: 1. A buyer should review evidence of the seller’s ownership and any mortgages on title. This is usually in the form of a title deed and affection plan issued by the Dubai Land Department; for properties being sold off-plan, a copy of the Oqood certificate in the name of the seller should be provided.

2. Where an agent is involved, the agent should be properly registered with RERA. This can be checked on the Dubai Land Department’s website (www.dubailand.gov.ae). The licence for the agency can also be checked to ensure they are licensed for real estate sales and brokerage.

ALEXIS WALLER PARTNER, CLYDE & CO.

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3. If the agent is entering into the sale and purchase agreement on behalf of the seller or accepting monies on behalf of the seller, they should have a valid power of attorney. The sale and purchase agreement should also make

it clear that the agent is entering into it on behalf of the seller under a POA with a copy of the POA attached.

4. A copy of the seller’s and, if applicable, the agent’s passport should be requested. The details of the passport should be checked against the title deed/Oqood cerificate and broker registration respectively. Where the landlord is a corporate entity, a copy of the landlord’s certificate of incorporation, trade licence and memorandum (and articles) of association should be checked.

5. Evidence, either in the form of receipts or a clearance certificate, that the seller has paid any relevant service charges should be requested.

6. A survey should be commissioned and measurements of the property taken.

This will reveal if there are any defects

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1. A copy of evidence of the landlord’s ownership of the premises should be requested. If the landlord owns the premises, he should have a title deed issued by the Dubai Land Department to show this.

in the property and if any remedial works are needed.

Where the property is a new-build, the buyer should also check if any warranties for fixtures and fittings installed by the developer can be assigned from the seller (or developer) to the buyer.

7. If the property is being purchased subject to occupational leases, due diligence in respect of the leases and tenants should be carried out, including checking the assignment provisions of the leases so that the buyer can take-over as the new landlord. Rent and security deposit cheques may need to be endorsed in favour of the buyer (as the new landlord).

8. Receipts for cheques paid should be provided by the seller or his authorised agent.

9. The sale and purchase of the property will need to be registered with the Dubai Land Department (either on the interim register “Oqood” for off-plan sales, or on the property register for constructed property) and new Oqood certificate/title deed issued in the name of the buyer. The Dubai Land Department’s registration fee is currently four per cent of the purchase price. Unless the sale and purchase agreement states otherwise (and it is common in Dubai for the agreement to state that the buyer pays the full four per cent), the seller and the buyer will each pay two per cent Renting Property For prospective tenants who are looking to rent commercial premises (such as an office or a shop) in Dubai, there are a number of steps that should be taken and documents requested before signing the tenancy contract:

2. If the landlord himself does not own the premises and instead leases from a head landlord who owns the premises, a copy of the headlease should be disclosed, along with the head landlord’s title deed. The headlease should be carefully checked to see if subleasing is permitted, as this is often restricted in leases. Where the headlease is silent on sublets, then the law provides that the landlord’s (in this case, head landlord’s) consent is needed. If subletting is not permitted in the headlease and/or if the head landlord’s consent is not obtained, then there are likely to be issues with any lease entered into (i.e. the sublease) as it will not be enforceable.

3. If the premises are newly constructed, the tenant should arrange to measure the premises to ensure that it accords with the landlord’s measurements.

4. Evidence that the landlord has paid any relevant service charges or master community charges should be requested. This is particularly important in multi-occupied buildings.

There have previously been stories in the press about tenants’ access cards being de-activated or use of building common facilities denied (as examples) because their landlord has failed to pay their service charges. If the lease provides that the tenant is responsible for paying service charges, the landlord (or the previous tenant) should still have paid the service charges up to the date the term of the lease commences.

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5. Where an agent is involved, the agent should be properly registered with RERA and should be in a position to show their registration details.

These can also be checked on the Dubai Land Department’s website (www.dubailand.gov.ae). The licence for the agency can also be checked to ensure they are licensed for real estate lettings.

6. If the agent is entering into the lease on behalf of the landlord or accepting monies on behalf of the landlord, they should have a valid power of attorney to evidence their appointment by the landlord and authorisation to act in this manner. The lease should also make it clear that the agent is entering into it on behalf of the owner under a POA with a copy of the POA attached.

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7. Where the landlord is an individual, a copy of the landlord’s passport should be requested, together with a copy of for the agent’s passport. The details of the passport should be checked against the title deed and broker registration respectively. A copy of the landlord’s passport is also needed for registration of the lease on Ejari (kindly see below). Where the landlord is a corporate entity, a copy of the landlord’s certificate of incorporation, trade licence and memorandum (and articles) of association should be requested).

8. A copy of any building rules or regulations which the tenant will be bound by should be requested.

9. Receipts for cheques paid should be provided by the landlord or his authorised agent.

10. For leases of less than 10 years, confirm who is going to register the lease with Ejari and in what timescale from the lease being signed. Market practice is for landlords (or their agents) to undertake this but for the tenant to pay the fee. The Ejari fee is AED 170 and landlords often take a small administration fee (typically in the range of AED 30 – 50) for registering the lease for the tenant. Registration is required under the law but the law does not stipulate who is responsible for doing it, so we recommend including an obligation on the landlord to register the lease on Ejari and to provide the tenant with evidence of this within a fixed time (e.g. 10 days). If there is any dispute in relation to the rental contract, Dubai’s Rent Dispute Settlement Centre (the “Rent Committee”), which is the authority responsible for hearing landlord and tenant disputes, will not hear the case unless Ejari registration has been carried out. A tenant will also face issues with dealing with certain authorities (such as opening a DEWA account) and in obtaining visas, etc., if an Ejari certificate cannot be produced. Some tenants have tried to register at a later date once they have a dispute, but usually have not obtained a copy of the landlord’s title deed and passport and are therefore being turned away when they go to register. For both acquisitions and lettings, the above lists provide some basic requirements but are not conclusive. The location of the property and nature of the transaction will dictate what further due diligence is required and we would always recommend taking legal advice to ensure all relevant points are covered.

Clyde & Co accepts no liability for loss occasioned to any person acting or refraining from acting as a result of material contained in this article. The content of this article does not constitute legal advice and should not be relied upon as such. Advice should be taken about your specific circumstances.

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Technologies that will disrupt the future of real estate

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Drones A lot has already been said about drones and the technology has been around for quite some time. Yet, it was only recently that drones were introduced within the real estate landscape. Their primary use has been to take aerial images and videos of properties as well as survey larger listings in a cost effective and time efficient manner. Many metropolitan cities around the world are using drone technology to capture high quality images of skyscrapers – avoiding the hassle of accessing difficult and dangerous places.

Here’s what the statistics say –

3D Printing Today’s 3D printers are capable of printing a wide array of things across multiple sectors including medicine, architecture, manufacturing and so on. However, the emergence of 3D printed houses has been a breakthrough moment for the real estate sector. Houses are not only more affordable but also allow for better customisation options. Recognising the potential of this technology, His Highness Sheikh Mohammed bin Rashid Al Maktoum, VP and Prime Minister of the UAE and Ruler of Dubai, had stated earlier this year that 25 per cent of Dubai’s buildings will be 3D printed by 2030. Aligned with this vision, the ‘Dubai 3D Printing Strategy’ has also been launched.

Here’s what the statistics say –

56% 18% 11% 2014 2018 2019

of realtors currently don’t use drones look to use it in the near future hire a professional to implement the technology

Prominent Chinese construction company WinSun succeeded in creating 10 full-sized single houses in 2014, using 3D printing technology The global market for 3Dprinters and services will grow from US$2.5 billion in 2013 to US$16.2 billion in 2018 The use of 3D printing in Dubai’s construction sector will increase by 2% starting 2019

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