Week 16 - Asteco Property Management · four star Embassy by Hilton property in Makkah in addition...

Week 16 SUNDAY, 21 APRIL 2019

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA

© Asteco Property Management | 2019 | asteco.com

34+ YEARS IN THE MIDDLE EAST

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ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

UAE SEES PICK UP IN NEW REAL ESTATE PROJECTS DESPITE SUBDUED MARKET

UAE DEVELOPER BINGHATTI TO OPEN SALES OFFICES IN SAUDI ARABIA

UAE REAL ESTATE SECTOR PERFORMANCE SUBDUED IN Q1

DUBAI FIT-OUT FIRM WINS MAJOR SAUDI HOTELS DEAL

PROPERTY FINDER ACQUIRES BAHRAIN REAL ESTATE PORTAL

DEVELOPERS, BUILDERS EYE HIGHER ROI, SUSTAINABLE FUTURE

REVEALED: OPTIONS FOR MILLENNIAL HOMEBUYERS IN UAE

IS IT A GOOD IDEA TO REFINANCE YOUR HOME MORTGAGE?

AI TO ENGINEER UAE’S FAÇADES OF THE FUTURE

LEASEHOLD AND FREEHOLD PROPERTY TITLES EXPLAINED AMID NEW FOREIGN

OWNERSHIP RULE

UAE ECONOMY TO OUTPERFORM MIDDLE EAST IN 2019

RESIDENCES AT MANDARIN ORIENTAL, MUSCAT UNVEILED

MARRIOTT SAYS TO ADD 3,000 NEW HOTEL ROOMS IN MIDEAST, AFRICA IN 2019

JEDDAH HOTEL RATES FALL TO 11-YEAR LOW IN MARCH

PROPERTY FUNDS TARGET UAE INDUSTRIAL ASSETS BEFORE THEY TURN PRICEY

WHEN PROPERTY BUYERS IGNORE THE PREVAILING PESSIMISM

NON-OIL SECTOR KEY GROWTH DRIVER FOR UAE, GCC

UAE JOB GROWTH PICKS UP

DUBAI

$13.6M PALM JUMEIRAH VILLA IS MOST EXPENSIVE SOLD IN DUBAI IN Q1

DUBAI MEGA PROJECT TO DELIVER 5,000 EXTRA HOMES BY END-2019

WORLD'S TALLEST OBSERVATION WHEEL AIN DUBAI TO BE READY FOR EXPO 2020

DUBAI

DUBAI RESIDENTIAL PROPERTY PRICES SAID TO FALL 12.4% IN PAST YEAR




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REAL ESTATE NEWS

DUBAI MUNICIPALITY COMPLETES $350M PHASE OF SEWAGE TREATMENT PROJECT

DUBAI INVESTMENTS PLANS TO ACQUIRE LAND IN UAE FOR NEW INVESTMENT PARK

AS DIP NEARS SATURATION POINT

CONSTRUCTION STARTS ON GERMAN PAVILION AT DUBAI EXPO 2020

SAUDI ARABIA UNVEILS EXPO 2020 DUBAI PAVILION

DUBAI'S AZIZI DEVELOPMENTS EYES DH1BN ABU DHABI PROJECT IN 2020

DUBAI RESIDENTIAL PROPERTY PRICES SAID TO FALL 12.4% IN PAST YEAR

DUBAI OFFERS INVESTMENT OPPORTUNITIES IN MAJOR PUBLIC PARKS

TRADE, CONNECTIVITY MAKE MILLIONAIRES FLOCK TO DUBAI

7,418 LICENCES ISSUED IN DUBAI IN 2019

ABU DHABI

CITYSCAPE ABU DHABI KICKS OFF WITH DEVELOPERS SHOWCASING LATEST PROJECTS

MUBADALA REAL ESTATE LOOKS TO PART SELL UAE ASSETS

ABU DHABI EXPECTED TO DELIVER 11,000 NEW HOMES IN 2019

BLOOM PROPERTIES EXPECTS PROPERTY GLOOM TO LIFT IN H2-19

CHANGE TO ABU DHABI'S REAL ESTATE RULES HAILED AS 'GAME CHANGER'

IMKAN TO COMPLETE FIVE PROJECTS THIS YEAR

JUBAIL ISLAND DEVELOPER PLANS BANK FINANCING FOR DH5BN PROJECT

DEVELOPERS MUST ENSURE SUPPLY-DEMAND BALANCE

ABU DHABI UNVEILS NEW URBAN PROJECTS IN PURSUIT OF HAPPINESS

ALDAR'S PROVIS EYES ACQUISITIONS IN PUSH FOR UAE AND GCC EXPANSION

DEVELOPERS FOCUS ON HITTING ABU DHABI'S PROPERTY 'SWEET SPOT'

GOV'T INITIATIVES 'YET TO IMPACT' ABU DHABI REAL ESTATE MARKET

ALDAR PROPERTIES' LEA HAS SOLD OUT

‘PEOPLE ARE COMING BACK TO ABU DHABI’




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REAL ESTATE NEWS

ZONESCORP SAYS TO LAUNCH ABU DHABI, AL AIN INDUSTRIAL PROJECTS

BLOOM HOLDING TARGETS PRIVATE PLACEMENT AS SCHEMES PROGRESS

ABU DHABI'S NEW FOREIGN PROPERTY OWNERSHIP LAWS A BOON FOR DEVELOPERS

AND INVESTORS

ABU DHABI PROPERTY PRICES FALL 3.2% SINCE END-2018

ZONES CORP UNVEILS DH1 BILLION AUTOMOTIVE CITY IN ABU DHABI

NORTHERN EMIRATES

SHARJAH AND AJMAN PROPERTY OFFERS GOOD INVESTMENT OPPORTUNITIES

SHARJAH RULER INAUGURATES NEW $1.6BN KHORFAKKAN HIGHWAY

ARADA EYES PARTNERSHIPS AND MULLS ACQUIRING A RIVAL DUBAI DEVELOPER

FUJAIRAH CROWN PRINCE INKS DEAL TO BUILD $27M SPORTS STADIUM

CONSTRUCTION CONTRACT AWARDED FOR NEW LUXURY RAS AL KHAIMAH HOTEL

MAJOR INFRASTRUCTURE PROJECTS TO BE FINISHED IN SHARJAH SOON

INTERNATIONAL

ALDAR EYES ACQUISITIONS AND DEVELOPER PARTNERSHIPS OUTSIDE THE UAE

GLOBAL STEEL DEMAND TO CONTINUE TO GROW IN 2019

IMF CUTS GLOBAL GROWTH FORECAST, SEES UAE GROWING IN 2019-20

REAL ESTATE INVESTMENTS AMONGST UAE-BASED FILIPINOS CLIMB TO ALL-TIME

HIGHS




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UAE SEES PICK UP IN NEW REAL ESTATE

PROJECTS DESPITE SUBDUED MARKET Monday, April 15, 2019

New real estate project launches have picked up again in 2019 despite concerns about oversupply in the UAE,

according to new research.

Asteco's Q1 2019 - UAE Real Estate Report said that despite prevailing soft market conditions, new project

launches, particularly from top-tier developers, have picked up again, after slowing towards the end of 2018.

“This trend is somewhat suprising given prevailing oversupply concerns,” said John Stevens, managing director of

Asteco.

New supply also increased with the delivery of approximately 6,700 residential units in Dubai - 5,800 apartments

and 900 villas - and 3,600 properties in Abu Dhabi - 2,800 apartments & 800 villas.

These figures have nearly doubled compared to last quarter, which is due to previously delayed projects handing

over but can also be attributed to the increased delivery of properties with extensive post-completion payment

plans, he added.

Asteco said commercial handovers were limited in Dubai but are expected to pick up with the imminent release of

more than 750,000 sq ft of office space in Silicon Park. Office completions in Abu Dhabi included Al Jewn Tower in

Danet Abu Dhabi.

As a result of this new inventory, and in line with continuous economic uncertainties, rental rates and sales prices

recorded further declines across all emirates, Asteco noted.

It said Dubai rental rates contracted by 3 percent for apartments, 3 percent for villas and 2 percent for offices

over the last quarter, and by 11 percent, 9 percent and 15 percent respectively since Q1 2018.

Sales prices declined by 2-4 percent during Q1 and 14-15 percent annually.

"It is important to note that “interest in off-plan projects as well as secondary properties was somewhat buoyant,

aided by competitive, more affordable pricing and attractive payment plans," the Asteco report added.

Apartment and villa rents in Abu Dhabi decreased by 2 percent and 1 percent on average in Q1 and 9 percent and

5 percent over the year.

Overall, apartment rental rates in the Northern Emirates contracted by 3 percent in the first quarter and 11

percent year-on-year, with high-end properties in Sharjah and Ajman proving to be the most resilient with

marginal quarterly decreases of 1 percent and 2 percent.

Annually, Al Ain apartment and villa rental rates decreased by 2 percent and 8 percent, while retail rents dropped

5 percent. Office rates remained unchanged mainly due to the lack of activity in the market, the report said.

Source: Arabian Business

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UAE DEVELOPER BINGHATTI TO OPEN

SALES OFFICES IN SAUDI ARABIA Thursday, April 18, 2019

CEO Muhammad Binghatti says company is eyeing the launch of an office in Riyadh and Jeddah within two

months.

Muhammad Binghatti, CEO and head of architecture, Binghatti Developers.

UAE-based Binghatti Developers is planning to open sales offices in two cities in Saudi Arabia as it looks to court

investment from the kingdom.

Muhammad Binghatti, CEO and head of architecture, told Construction Week that the company is eyeing the

launch of an office each in Riyadh and Jeddah within two months.

Commenting on whether Binghatti Developers may also develop projects in the kingdom, the CEO said this was

not in the pipeline "at the moment", adding: “We’re focusing mainly on Dubai [at the moment]. But, in terms of

our sales strategy, [Saudi] would be top of the list.

“There’s a lot of cash in Saudi; a lot of investors are looking for investable products. They are willing to deploy

[capital], but it is an issue of providing the right product, pitch, and package.”

Binghatti is not alone in its optimism in the Saudi market.

Arada, the company behind Sharjah's mega project Aljada, previously announced its plans to open an office in

Riyadh in June which will be its first overseas office.


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https://www.constructionweekonline.com/business/180933-binghatti-developers-to-open-saudi-arabia-offices-in-2019




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UAE REAL ESTATE SECTOR PERFORMANCE

SUBDUED IN Q1 Thursday, April 18, 2019

Residential sale and rental prices are expected to continue to decline, according to a report from Cavendish

Maxwell

The overall performance of the UAE’s real estate sector remained subdued in the first quarter of 2019, with

further declines in sale and rental prices expected later in the year, according to a new report from property

consultancy Cavendish Maxwell.

“With a marked slowdown in 2018, the government has been swift in introducing measures including increased

spending, new regulations and revised policies to raise investor sentiment,” said Manika Dhama, the head of

strategic consulting and research at Cavendish Maxwell.

“However, with more supply expected to be added throughout 2019 – and we have already seen a substantial

number of units handed over in Q1 – we expect prices and rents for residential units to continue to decline amid

soft demand,” she added.

Flight-to-quality

While demand for certain commercial and industrial properties slightly improved over the quarter, the report said

an overall trend of flight-to-quality and more affordable rents.

“The market was still challenging in Q1 2019, with the gap in the local two-tier segment widening as occupiers

continue to seek better value,” said Andrew Love, partner and head of investment and commercial agency at

Cavendish Maxwell.

“We have noticed an uptick in demand in free zone areas, especially in Dubai and Abu Dhabi, and some sub-

categories have outperformed general market estimates.”

“With landlords offering flexible lease terms and economic incentives, and as strategic areas like Dubai South

grow, demand is expected to increase,” he added.

Stable

According to the report, the prices of villas and townhouses in Dubai remained stable at an average of AED 1.8

million, with apartments priced at an average of AED 1.2 million.

Over the same period, prices for apartments fell by 9.6 percent and 10 percent for villas and townhouses in Abu

Dhabi’s major investment zones.

The report also noted that subdued consumer spending impacted the retail and officer sectors across the

country, with vacancy levels in malls increasing and new supply expected to put downward pressure on rents.


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DUBAI FIT-OUT FIRM WINS MAJOR SAUDI

HOTELS DEAL Thursday, April 18, 2019

MMAC Design Associates has been appointed as interior designer on two large multiple brand 5, 4 and 3 star

hotel projects in Saudi Arabia

MMAC said it has been tasked with designing the interiors of the luxurious 383-key Kempinski Hotel and a 392-key

four star Embassy by Hilton property in Makkah in addition to the adjoining residential tower

Dubai-based MMAC Design Associates has been appointed as interior designer on two large multiple brand 5, 4

and 3 star hotel projects in Saudi Arabia.

The first project is being developed in Makkah by Umm Al Qura and is part of the King Abdul Aziz Road

Development which stretches over almost 4km from the western entrance of the holy city to the Jabal Omar

project. It covers an area of over 1.2 million square metres, with hotels, residential & commercial towers situated

on both sides.

MMAC said it has been tasked with designing the interiors of the luxurious 383-key Kempinski Hotel and a 392-key

four star Embassy by Hilton property in addition to the adjoining residential tower.

“We are extremely proud to have been chosen by lead design consultants Omrania to work with them on this

momentous development” said managing director Christian Merieau without disclosing the value of the contracts.

“Our design will be appreciated by visitors from every corner of the globe, as they visit the holy city. Projects of

this scale and in such prestigious location don’t come up very often, so naturally we are thrilled to be involved in

helping create history," he added.

MMAC said it will also be working on the interior design of three Starwood properties within the Al Widyan project

in Riyadh. The trio will comprise a 242-key five star Westin Hotel and 93 Westin branded residences plus the first

201 key three star Element by Westin Hotel in Saudi Arabia.

Scheduled to open in 2022, they will see the return of the Westin marque to the kingdom.


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PROPERTY FINDER ACQUIRES BAHRAIN

REAL ESTATE PORTAL Tuesday, April 16, 2019

Property Finder Group, the UAE-based real estate listings portal, acquired Bahrain Property World platform for an

undisclosed sum. It is the latest in the company’s Mena acquisition spree in the past few weeks.

“This is one of three high-powered strategic moves since closing our latest round of investment led by [private

equity company] General Atlantic,” said Michael Lahyani, founder and chief executive of Dubai-headquartered

Property Finder.

The Bahrain acquisition will enable Property Finder to continue investing in a market where the company sees "a

lot of potential. It’s a testament to the potential growth we expect from the country,” Mr Lahyani said on Tuesday.

Property Finder has been operating in Bahrain since 2013 through its real estate sales and rental listings platform

Propertyfinder.bh. The acquisition of Bahrain Property World comes after Property Finder raised $120 million in

funding from US-based General Atlantic last November.

Since securing the financing, the company has expanded its operations in the Middle East and North Africa. It

raised its stake in Turkish property portal Zingat in March, and struck a deal to acquire JRD Group, the operator of

rival UAE websites Justproperty.com and Propspace.com earlier this month.

“Property professionals in Bahrain will have the opportunity to introduce their inventory in multiple markets

where Property Finder Group has on-the-ground operations and a large audience of investors,” Mr Lahyani said.

Under the deal, Steven Filipowicz, founder of Bahrain Property World, will continue to play a role in the day-to-day

operations of the combined entity, although Property Finder did not specify what that role would be.

Last week, competing UAE property listings and research company Bayut acquired Lamudi, owned by Middle East

Internet Group, for an undisclosed sum. Bayut also plans to launch expanded operations in Saudi Arabia, in

another example of consolidation in the online real estate services industry.

Source: The National

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DEVELOPERS, BUILDERS EYE HIGHER ROI,

SUSTAINABLE FUTURE Tuesday, April 16, 2019

The UAE's real estate sector has witnessed massive growth over the years and this rapid development has called

for adoption of latest technologies that will help the builders, developers to minimise the cost and optimise the

returns. The call now is urged at the design phase itself so the right planning can help avoid wasting of resources

and manifest in higher Return on Investment (ROI) building sustainable future.

With nearly 80 per cent of a buildings lifecycle cost spent after its construction on maintaining it, it is crucial for

developers to start engaging with software-led building automation systems right from the onset of the design

phase. This will help embed everyday efficiencies in daily operations while enabling multi-fold benefits by unifying

and optimising the core components of a building - people, assets and sustainability.

How can help developers remain competitive? "Any saving is an edge and makes you more competitive. However

there is no saving without a great customer experience. And this is where technology helps - allowing you to

bridge these two requirements. The multifold operational efficiencies of software led technologies that leverage

automation in buildings include cost and energy savings, while real-time data led decision making means

enhanced tenant comfort and experience, all adding up to higher competitiveness," said Andrea Deutschbein,

director Facilities Management SFM, Emaar Malls Group.

"The commercial real estate sector can see immediate benefits of using software tech. We used specific sensor

data to optimise our soft services planning and this delivered substantial benefits in the form of cost savings.

Additionally, we could share these data insights with our business and marketing teams as well to help them with

their strategic planning. For example, capturing data that tells us the frequency of use of an escalator not only

helps us become predictive in optimising our time and manpower planning to service those escalators, but the

same data also helps our business teams to think of ways to activate the dead-zones with low footfall. So there

are manifold benefits of adopting modern software led technologies to leverage automation in buildings, as not

only hard services, but even soft services can be optimised by using software solutions that help data driven real-

time decision making."

With growing competition in the built environment, experience defines and differentiates everything. Plus there is

increasing pressure to demonstrate ROI, higher profits and minimised costs, while remaining sustainable and

energy efficient. In the built environment, operational efficiency equals all of the above.

Facilio, a US and UAE based innovative proptech start-up, recently hosted Future Proof, a conference that brought

together industry leaders from across the buildings ecosystem to discuss how technology is disrupting the way

built environments are managed and operated.

Prabhu Ramachandran, Founder & CEO, Facilio Inc, said: "While technology has been the forbearer of disruption

and efficiencies in nearly every industry across the world, the buildings industry has remained a passive spectator,

adopting minimal and largely hardware-centric automation. However for developers to cater to a changing

customer that is driven by service-led experiences and demands real-time responsiveness, and also balance

growing concerns around ROI, sustainability and retrofits, software-led Building Management System (BMS) is the

solution." Where legacy BMS are cost, labour and time intensive, an AI & IoT-led BMS can enable rapid digital

retrofits by easily integrating with existing systems, optimising efficiencies immediately and revamping old

building stock to a smart and intelligent avatar. That's a huge saving of cost and time.




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With new construction, embedding these technologies from the start can help commercial real estate developers

prepare new building stock for the predictive, real-time, experience-led era of smart buildings. This will help them

grow margins from the very beginning by realising considerable savings on time and money through efficient

operations, as a predictive model replaces reactive/preventive maintenance. Additionally, it will help Commercial

Real Estate (CRE) owners to move beyond a focus on cost reduction to focus on value-creation and value-addition,

from the pre-construction phase itself. And this shift will enable better tenant relationships, creating positive

building perceptions, which will further enhance ROI.

Suhas Inamdar, Head of Technical Support & Planning, Asset Management Services & Solutions, Al Wasl

Properties, said: "The developers can reap sustainable mid-term and long-term benefits, when they incorporate

new technology in their projects. The tangible and intangible benefits accrued far outweigh the initial marginal

overspend. The BMS, which ruled the real estate sector during last two decades, is being phased out gradually

paving the way for IoT. For the next few years, IoT is going to vastly expand beyond the conventional domain of

energy savings, to positively influence the customer experience, re-define maintenance strategies, enhance

operational efficiencies and aid in better device management. In short, the human imagination shall be the only

limiting factor, while determine the infinite capabilities of IoT."

Further Inamdar explained, application of right technology almost always results in lower operational costs, while

providing optimum customer happiness. Every technological invention is aimed at making the lives of the

occupants better, safer, and superior than the status quo. The builders can adopt right technology to boost its

market appeal, attract the customers from appropriate segment of the society, contribute in protecting the

environment by being socially responsible and more importantly, add to the bottom-line due to increased

turnover as well as margins.

Endorsing the similar view, Fahad Mohamed, director - FM, Deyaar, said: "Developers are trend setters and

providing a good product to its end users is what sets them apart from their competition. Being able to design

and built efficient projects does add a lot of value post handover and this is where the end users as well as the

building managers feel the benefit. It is the key responsibility to the developer or the consultant to understand

the end result or the operating philosophy so that the product selection and design can be aligned accordingly. A

well designed and executed software-led system supports the landlord of the building to achieve effective energy

management and improve operational efficiency by increasing asset life and reduced down time."

Mohamed, further said: "Technology and digitisation such as BIM modelling can support the developers to be

more efficient during the construction and post construction phase. This provides the possibility to limit cost

overrun and rework. Also the learnings from the completed projects can be recorded and improvements based

on this can be used for new projects. Thus optimisation of the construction cost using such technology can help

the developer remain more competitive."

Source: Khaleej Times

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REVEALED: OPTIONS FOR MILLENNIAL

HOMEBUYERS IN UAE Monday, April 15, 2019

What does the UAE residential market have for millennial homeowners? Currently between 22 and 37 years, and

born between 1981 and 1996, millennials are those entering or working their way up the workforce.

With flexible payments options from many developers, affordable housing options and new government

initiatives boosting the UAE property market, there is an increasing potential from this segment to invest, feels

Matthew Palmer, managing director of real estate advisory firm Alvarez & Marsal.

“Fundamentally, we still don’t see many in their 20s entering the property market here in Dubai,” he says.

“Typically, at this age, people are either paying down student debt or saving towards other life goals, such as an

MBA or wedding. If they are willing and able to invest in property, it is more likely to be in their home country as

they are still not sure about their tenure in this country. But for the section that is well settled in Dubai and

secured in jobs, the next step is to turn their thoughts towards home ownership, rather than merely renting.”

Focus on savings

According to Palmer, millennials who are considering buying a home should review and prioritise their short- and

longer-term financial objectives, focusing on savings to enable home ownership. Data suggest that home

ownership is typically a sound cornerstone of a long-term financial strategy. Hence, millennials should look to

developments, which meet occupiers’ criteria and will remain attractive in the long run.

Millennials traditionally value social responsibility and sustainable development, with an appreciation and

preference for eco-friendly developments. “They want to work in integrated live-work communities with a focus

on green and sustainable development. Communities such as Dubai International Financial Centre [DIFC],

Mohammad Bin Rashid City and The Sustainable City encompass such traits,” says Palmer.

But Downtown and DIFC also remain primary destinations for millennials, especially since rents have softened.

“While the Marina used to be popular, it appears that commuting is not, especially as more and more businesses

have relocated from the Dubai Media City to those at the opposite end of town, such as D3 and DIFC. Emirates

Living also attracts some of the older millennials, those in their 30s with families,” he says.

Co-living spaces

In its first-quarter Dubai Market Report, real estate services firm Chestertons observed that developers in Dubai’s

residential property market are targeting a new buyer and tenant segment by offering innovative co-living and

licensed co-working concepts. Ivana Vucinic, head of consulting at Chestertons Middle East and North Africa, said

that in a bid to remain competitive and open up the market to a new segment of buyers, several developers are

currently offering a range of innovative living solutions, allowing residents to live and work in the same space.

“These solutions are specifically aimed at a younger tenant and buyer profile, who don’t necessarily need large

living spaces but place importance on having their business and lifestyle requirements catered to in one

development. Such solutions are being offered in Emaar’s Collective Tower and Socio as well as Nshama’s Una in

the Town Square community,” she said.

Rent-to-own schemes




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Another key strategy employed by developers that could boost investment from millennials is the introduction of

rent-to-own (RTO) schemes. These schemes offset the need for a large cash deposit and would appeal to buyers

who don’t have the 25 per cent down payment or are unsure of future market trends. “RTO deals can currently be

found in areas such as Jumeirah Village Circle, Palm Jumeirah and Dubai Sports City,” said Vucinic.

She further said that there is an increase in Airbnb-style rentals in the market with increasing occupancy rates

year-on-year. “These types of properties are preferable for individuals working in the emirate on a project basis or

who are within their probation period, as they are unable to commit to traditional annual rental contracts as the

tenancy cannot be registered if the residency visa is still to be granted.”

Anna Skigin, CEO of Frank Porter, said platforms like Airbnb are making Dubai a welcoming place for the sharing

economy. The last few years have shown that Airbnb homes can be attractive for price-sensitive younger buyers

and, according to Skigin, “we are certain that this will continue to grow beyond Expo 2020”.

Source: Gulf News

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IS IT A GOOD IDEA TO REFINANCE YOUR

HOME MORTGAGE? Tuesday, April 16, 2019

So you’ve got your mortgage approved and have bought a home. But it doesn’t end here. There are some

important steps to be followed ahead, such as home maintenance, paying mortgage instalments on time and so

on. A home loan is offered for a longer tenure of 15-25 years, which means for the next one to two decades you

will be having mortgage instalments on your monthly budget. Life is unpredictable and due to unforeseeable

financial circumstances, it can get difficult to pay your mortgage instalments on time. In those situations, you can

opt to refinance your home mortgage. Home mortgage refinance is a way of clearing your existing home loan by

getting a new one.

There can be a few things that make refinancing a good option, such as a lower interest rate. The most common

reason to refinance a home mortgage is an increased interest rate on your existing mortgage. If you find some

other lender offering low-interest rates, you can think of refinancing. Getting a lower interest rate will reduce your

monthly payments by a fair margin. This change can help you financially and save some money.

But one needs to make sure that the new home loan doesn’t have any loopholes. Lenders attract borrowers by

offering low-interest rates but these rates would be charged only for a certain time period. Later on, there can be

a high-interest rate charged, which can be more than your existing loan rate.

Loan period

A new loan may increase or decrease your existing loan period. For example, if you have your existing loan for 15

more years, then refinancing for 10 years plan will allow you to get complete ownership of the house in lesser

time. On the other hand, if you have opted for a longer tenure, your monthly instalments can go even less than

what you’ve been paying currently. So, if you want to have the loan for a longer period or shorter period on low-

interest rates comparatively, then refinancing can be an option.

Extra money

With the increase in real estate prices, there can be an increase in property valuation as well. This will ensure you

get a high loan amount when you refinance your property. After clearing the existing loan with the new loan, you

may have some additional cash left. This additional cash can be compensated with the processing fees and other

fees that are involved in the refinancing process or you can even save or invest in some risk-free investment

options. So if you are going to get some extra cash from a new low-interest rate loan then refinancing can be

considered.

Apart from these major factors, there can be a few things like the type of interest rate or quality of service at the

current bank that may encourage you to look for refinancing options.

Finally, refinancing you home loan totally depends on your financial situation and goals. Be aware of the closing

costs of refinancing. Also, have a clear estimate of the monthly payments and interest rates before switching.

Shiv Kumar Gupta is the co-founder and director of mymoneysouq.com. The views expressed here are his own.

Source: Gulf News

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AI TO ENGINEER UAE’S FAÇADES OF THE

FUTURE Tuesday, April 16, 2019

New advances in façade technology are enabling architects and developers to move away from conventional glass

and aluminium curtain walling to incorporating innovative designs using alternative materials and complex

composites. This, coupled with tighter safety and energy regulations, has created demand for façades that make

buildings energy efficient, safe and sustainable, while at the same time displaying design statements.

New technology, materials

The single biggest change the façade industry is expected to see is in the digital technology space, says Steve

Daniels, global façades leader of Aurecon. “Machine learning and artificial intelligence [AI] will automate design

and change the way that façades are engineered in the near future.”

He says new technology is being introduced into the façade market all the time — composite framing members,

smart glass, active façades and even 3D-printed façades.

Agnes Koltay, CEO of Koltay Façades, says one of the most recent trends worldwide is implementing free-form

geometry with more ease, even with materials that are traditionally manufactured flat, such as glass or stainless

steel. Two good examples are The Opus and Museum of the Future in Dubai.

She says the key here is using computer instructed manufacturing methods, where repetition no longer equals

cost efficiency, “because for the CNC machines it does not matter if they receive the same file 100 times or receive

100 different files as production parameters”.

Koltay says the technology behind performance coated glass products has also evolved over the past two

decades. “These coatings are getting more and more efficient; we do not need to compromise on limited colour

range, strong colours or limitations in further glass processing such as glass tempering,” she says.

The high-rise façades construction is always evolving with new types of materials and the approach to make sure

these are compliant to regional codes and standards. Sreenivas Narayanan, façade specification and compliance

officer at Siderise, says it’s important to consider from the outset how to detail for a good fire and acoustic

performance in façades. “We also need to think about a change of use — can we future-proof buildings so they

can evolve often from commercial to residential over time or vice versa?” says Narayanan.

The building skin will get even higher importance in the future, according to Sam Robinson, general manager of

Technal Middle East. “Today the skin is just reducing the impact of the exterior climate towards the interior

climate conditions, by acting mainly as a separation layer. In the future, the building skin can also minimise the

environmental impacts of the urban ambient areas by active and passive design measures and products.”

Energy efficiency

Another trend, Koltay says, is to not only save, but also create energy with the building envelope through

technologies like photovoltaic panels and wind turbines. “However, while the opportunity appears attractive, the

facade and roof area usually prove to be too small to bring significant amount of energy production,” she says.

Aurecon’s Daniels points out that solar technology continues to improve and new discoveries in materials

technology, which can harness the sun’s energy, is rapidly bringing us to the point where the efficiency of the

solar cells is at the point where these products are commercially viable.




Page 15



“If we can then make sure that the materials used to manufacture the solar cells are not harmful to the

environment, we have a truly winning combination,” he says.

Fire safety

Industry experts agree that fire safety should always be the aim of all developers, architects, engineers,

contractors — and even suppliers.

Given that a building is a complex system integrated from many components, Koltay says fire safety needs to be

considered at every level of material selection, assembly, installation and not only for façades, but electrical

systems, interior fittings; and the fire alarm and fire suppression systems maintained regularly.

Robinson points out that the biggest topic today is the propagation of fire through the spandrel areas; fully tested

single part compartmentation assembly systems tested to EN 1364-4 are mandatory and a prerequisite for glazed

buildings.

Thanks to the updated Al Safat Green Building Rating in Dubai and Estidama in Abu Dhabi, he says building

façades need to be thermally efficient to reduce the cooling loads required in tall buildings. The UAE Fire and Life

Safety Code is leading the industry standards globally, says Narayanan, but he says the improvement will have to

come from the implementation of these codes at every level.

Robinson agrees that the need of the hour is awareness and further research and development. “We as

manufacturers need to have more dialogue with the authorities to promote awareness of safer façades, use of

tested systems and invest in research and development to develop more sustainable, efficient and code-

compliant products,” says Robinson.

Source: Gulf News

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Page 16



$13.6M PALM JUMEIRAH VILLA IS MOST

EXPENSIVE SOLD IN DUBAI IN Q1 Tuesday, April 16, 2019

The most expensive luxury home sold during the first quarter of 2019 in Dubai was a Palm Jumeirah villa which

sold for AED50 million ($13.6 million), Luxhabitat has revealed.

According to Luxhabitat’s analysis, the prime residential market in Q1 totalled AED10.6 billion, which is about 44

percent higher than the previous quarter.

Luxhabitat defines the prime residential market as a residential market composed of properties that lie on the

high-end spectrum of the Dubai residential market and includes Arabian Ranches, Downtown Dubai, Dubai

Marina, Dubai Creek Harbour, Business Bay, Emirates Hills, Jumeirah Golf Estates, Mohammed Bin Rashid City and

Palm Jumeirah.

It said the top three areas in terms of sales volume were Downtown Dubai (AED2.3 billion), MBR City (AED2.1

billion) and Business Bay (AED1.2 billion).

Over 1,737 villas and 6,194 apartments were transacted in the first quarter of 2019 in Dubai's overall residential

market.

The volume of transactions in the secondary market was AED20.4 billion, compared to AED18.5 billion in Q4 2018,

according to analysis by Luxhabitat based on data by Property Monitor.

Off-plan registration volumes also increased by 28 percent from the previous quarter to AED7.4 billion, with Dubai

Harbour recording nearly five times the registrations compared to the previous quarter at AED554 million.

The off-plan villa market recorded a 61 percent increase in sales volume and more than double the units were

sold. Off-plan apartments also reported a 10 percent increase in sales volume at AED8.7 billion.


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Page 17



DUBAI MEGA PROJECT TO DELIVER 5,000

EXTRA HOMES BY END-2019 Thursday, April 18, 2019

The 750-acre Town Square Dubai will be home to over 18,000 people by the end of this year, says CEO Fred Durie

Dubai mega project to deliver 5,000 extra homes by end-2019, Fred Durie, CEO of Nshama.

Town Square Dubai by Nshama will hand over 5,000 additional residences this year taking the total number of

homes delivered to more than 6,600, it was announced on Thursday.

By end-2019, the 750-acre Town Square Dubai will be home to over 18,000 people, said Fred Durie, CEO of

Nshama.

He said: “Working with established contractors, we are making strong progress on the delivery of an additional

5,000 homes that deliver on the promise of ‘live life at your price’ in Town Square Dubai.

"With the homes recording strong demand, investors are assured of strong returns and rental yields while

residents become part of a full-fledged lifestyle community.”

Nshama has already delivered homes in four communities within Town Square Dubai in addition to a range of

facilities such as a gym and a pool in every building, plus a tennis court, and recreational park that includes a

skate park, basketball court and football pitch.

Several retail amenities are also open in addition to F&B outlets, daycare centres, schools and healthcare facilities.

The first residential building overlooking the 50,000 sq m Town Square Park will be handed over in September.


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Page 18



WORLD'S TALLEST OBSERVATION WHEEL

AIN DUBAI TO BE READY FOR EXPO 2020

DUBAI Wednesday, April 17, 2019

Standing at more than 250 metres high, Ain Dubai will be the world’s tallest observation wheel and will stand over

200 percent taller than the world’s first ever Ferris wheel.

The hotly anticipated Ain Dubai will be completed in time for Expo 2020, developer Meraas announced on

Wednesday.

Standing at more than 250 metres high, Ain Dubai will be the world’s tallest observation wheel and will stand over

200 percent taller than the world’s first ever Ferris wheel.

On Wednesday, Meraas said that the eighth and final 450-tonne temporary spoke has been removed for the

structure, while the last of the wheel’s permanent spoke cables has been installed.

“The process marks the first time the modern observation structure has been one complete wheel since

construction began,” the Meraas statement said.

With the removal of the temporary wheel spoke, the weight of the wheel rim has been completely transferred to

192 spoke cables, ensuring the integrity of the structure through the process of “permanent compression.”

Cumulatively, the eight temporary steel spokes and rim braces weighed over 5,000 tonnes.

The Ain Dubai is considerably taller than the current tallest observation wheel - the 167 metre tall High Roller in

Las Vegas.

According to Meraas, over 9,000 tonnes of steel has been used in the construction of Ain Dubai, 25 percent more

than the amount of iron used on the Eiffel Tower.


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Page 19



DUBAI RESIDENTIAL PROPERTY PRICES SAID

TO FALL 12.4% IN PAST YEAR Thursday, April 18, 2019

ValuStrat Price Index for the first quarter of 2019 shows that prices dropped by 3.2% compared to the previous

quarter

Residential property values in Dubai have fallen by 12.4 percent on average over the past year, according to real

estate consulting firm ValuStrat.

Its ValuStrat Price Index (VPI) for the first quarter of 2019 also showed that prices dropped by 3.2 percent

compared to the previous quarter.

This downward trend resulted in 27.1 percent citywide capital value loss since the peaks of mid-2014, the report

added.

It noted that all established freehold locations monitored by the VPI witnessed price drops since the last quarter,

ranging from 1.8-5.2 percent.

On an annual basis, five out of 26 locations measured saw single-digit declines, while capital values dropped more

than 16 percent annually for villas located in Jumeirah Islands, apartments in Palm Jumeirah, International City,

Discovery Gardens, Business Bay, and The Greens.

“As capital values softened by an average of 1 percent per month for the last 16 months, a six-month streak in

buying activity has been observed for both off-plan and ready homes,” said Haider Tuaima, head of real estate

research at ValuStrat.

The Q1 2019 residential rental VPI in Dubai stood at 76.5 points, declining 23.5 percent since 2014, and softening

1.9 percent quarterly and 9 percent annually.

ValuStrat said Dubai’s net yields averaged 5.5 percent, with apartments at 5.7 percent and villas at 4.5 percent

while the average residential occupancy rate stood at 88 percent.

As far as residential supply is concerned, the report said last year’s project completions reached 20,364 units

which is equivalent to approximately 45 percent of the initial total projections.

For 2019, expected supply was adjusted downwards to 42,176 apartments and villas. This number is 54 percent

less than the preliminary supply forecast as more delays are expected during the year, mitigating excessive

residential supply concerns.


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Page 20



DUBAI MUNICIPALITY COMPLETES $350M

PHASE OF SEWAGE TREATMENT PROJECT Wednesday, April 17, 2019

Dawoud Al Hajri, director general of Dubai Municipality, says expansion is one of the important infrastructure

projects to keep pace with Dubai's growth

The addition of extra capacity of 375,000 cubic metres of water takes the combined capacity of Warsan and Jebel

Ali plants to about 1 million cubic metres.

Dubai Municipality has completed the second phase of the expansion of Jebel Ali Sewage Treatment Plant at a

cost of AED1.3 billion ($350 million).

The addition of extra capacity of 375,000 cubic metres of water takes the combined capacity of Warsan and Jebel

Ali plants to about 1 million cubic metres with the possibility of future expansion of three more stages, a

statement said.

Dawoud Al Hajri, director general of Dubai Municipality said that the expansion of Jebel Ali plant is one of the

important infrastructure projects for the coming years to keep pace with Dubai's growth.

“This expansion will cover the Expo and other areas of development and can accommodate the continued and

future population growth with high efficiency. It will also support the strategy of the provision and preparedness

of infrastructure,” he said.

The expansion produces about 232 billion cubic meters of irrigation water that is enough to irrigate 6,250

hectares of cultivated land.

Al Awadhi said the project will absorb the excess flow from the areas of Expo 2020 and other areas and will cover

the existing urban projects and future projects in the emirate.

The project handles 21,900 tons of solid wastes rich in nutrients that make them suitable fertilisers with high

international standards and can be used as biofuels, he added.


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Page 21



DUBAI INVESTMENTS PLANS TO ACQUIRE

LAND IN UAE FOR NEW INVESTMENT PARK

AS DIP NEARS SATURATION POINT Wednesday, April 17, 2019

Dubai: Dubai Investments plans to acquire a new land bank in the UAE to build a multi-purpose investment park

along the lines of what it has in Dubai. The new land could even be in Dubai itself, according to Khalid Bin Kalban,

Managing Director and CEO.

“This is definitely in the plans, and the only question is when to execute the purchase,” he added, after the

company’s annual general body meeting late on Wednesday. “There is nothing to suggest we cannot have a

second one in Dubai — hopefully, we can make that announcement soon.”

There has been speculation about the company making a move for a big land acquisition. In this regard, there has

been talk about something in and around the Jebel Ali area.

Its current base at Dubai Investments Park — all of 2,300 hectares — is more than 90 per cent used up, which has

accelerated the need to start building a new one and generate an additional revenue stream.

Currently, the company is building a smaller investment park — at around 10 hectares — in Fujairah, which is 40

per cent ready. Teams are being assembled to handle leasing operations ahead of the opening some time next

year. (Meanwhile, additional land is being acquired in Furjairah to add some entertainment features adjoining the

investment park.) As for its plans to set up an investment park in Saudi Arabia, the CEO said it was moving slowly

and proving a bit of a struggle.

Dubai Investments on Wednesday confirmed a 10 per cent dividend, totalling Dh425 million.

“This is 7.5 per cent over the market price and I feel that’s a generous payout,” said Bin Kalban. (The share closed

at Dh1.6 from a gain of 1.2 per cent on Wednesday.) For 2018, the company reported a net profit of Dh651.4

million, a drop from the Dh1 billion plus a year ago. But there was better tidings on the asset side, with the total

increasing by Dh2.55 billion to Dh19.6 billion.

Dubai Investments’ property business accounted for 63 per cent of total assets and contributed 38 per cent to

total income in 2018, while manufacturing, contracting and services accounted for 24 per cent of total assets and

55 per cent to income. Investments accounted for 13 per cent of assets.

Its financial services subsidiary Al Mal is setting up a mixed-use real estate investment trust (REIT), which will be

listed on the financial market during the second quarter of 2019.

Source: Gulf News

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Page 22



CONSTRUCTION STARTS ON GERMAN

PAVILION AT DUBAI EXPO 2020 Tuesday, April 16, 2019

Ground-breaking ceremony takes place in Dubai to celebrate the start of construction on Campus Germany

The German Pavilion plot, which measures about 4,600 sq m, is located in the Expo’s Sustainability District.

Construction has started on Campus Germany, the country's pavilion at Dubai Expo 2020 after officials held a

ground-breaking ceremony.

While the ground was being broken in the desert in Dubai, the new website for Germany’s presence at the

upcoming world exhibition went live in Cologne, a statement said.

“Our top priority is making sure that everything is ready on time for the opening of the Expo on October 20 next

year. So it’s important to stick to the schedule and start work on construction in good time,” said Gerald Böse,

president and CEO of Koelnmesse, which will run the pavilion.

The groundbreaking ceremony on the German plot, right next to the host pavilion of the UAE, highlighted the fact

that work on the German Pavilion is on schedule, he added.

Commissioner general Dietmar Schmitz said: “Now it’s our turn to start construction work on Campus Germany

and become part of this story."

The German Pavilion plot, which measures about 4,600 sq m, is located in the Expo’s Sustainability District.

Visitors will “enrol”, like at a university, and then embark on a curriculum that takes them through a Future Energy

Lab, Future City Lab and a Biodiversity Lab to “graduate” in a show at the end of the tour.

"This graduation will be a milestone for everyone – full of emotion and knowledge, with a multitude of possibilities

and opportunities for sustainability combined with an appeal to take advantage of them," the statement said.

Agency facts and fiction is in close contact with more than 30 research institutions, universities and companies to

develop a crowd-pleasing, inspiring showcase of pioneering innovations for a sustainable future.


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Page 23



SAUDI ARABIA UNVEILS EXPO 2020 DUBAI

PAVILION Sunday, April 14, 2019

Saudi Arabia's Expo 2020 Dubai pavilion will be second only to the UAE's in size

Saudi Arabia’s Expo 2020 Dubai pavilion will be second in size only to that of the UAE, it was announced on

Sunday.

The pavilion, which will cover an area the size of two football pitches, includes a large façade designed to open

“like a large window into the future” and is meant to reflect Saudi Arabia’s culture, welcoming character and drive.

The pavilion will give visitors an immersive experience of the kingdom’s transformation and history, with a path

that leads visitors through exhibition displays highlighting its openness to businesses and tourism.

“This extraordinary and innovative design perfectly captures the determination of the kingdom to fulfil its promise

of being an ambitious nation while conveying a message of dynamism and partnership with the world,” said Saudi

Minister of Economy and Planning Mohammed Al-Tuwaijri, who also is chairman of the committee for Saudi

Arabia’s Expo participation.

“All Saudis can be proud of the vision that this ground-breaking pavilion will deliver to the world, and we look

forward to inviting global citizens to share in the exciting story of our thriving and vibrant society,” he added.

Construction of the pavilion – designed by Boris Micka Associates – began in February 2019.

“The kingdom of Saudi Arabia’s pavilion at Expo 2020 will offer visitors a chance to experience the country’s rich

heritage and culture, while demonstrating how our region is working together to create a better future for

everyone,” said UAE Minister of State for International Cooperation and Director General of Dubai Expo 2020

Reem Al Hashimy.

“We look forward to welcoming our brothers and sisters from the kingdom as they join us for the first event World

Expo to be held in the Middle East, Africa and South Asia region,” she added.


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Page 24



CITYSCAPE ABU DHABI KICKS OFF WITH

DEVELOPERS SHOWCASING LATEST

PROJECTS Tuesday, April 16, 2019

Abu Dhabi: Cityscape Abu Dhabi opened on Tuesday with more than 60 national, regional and international

developers and suppliers taking part in the three day event being held at the Abu Dhabi National Exhibition

Centre (ADNEC).

The event was inaugurated by Shaikh Hazza Bin Zayed Al Nahyan, Deputy Chairman of Abu Dhabi Executive

Council.

Cityscape Abu Dhabi takes place as the government announces measures to boost the Emirates’s economy with

the $13.6 billion economic stimulus package and new visa and business incentives.

“Throughout the build-up to the show we have heard strong optimism from exhibitors who believe recent

government moves within the emirate and at a national level will be significant spurs to the Abu Dhabi’s real

estate eco-system,” said Chris Speller, Cityscape Group Director at Informa Exhibitions, which organises the event.

Among the developers participating in the event include Aldar, Azizi, Imkan Properties, Arada, Bloom Holding and

Binghatti, among others.

Cityscape Abu Dhabi is being held under the patronage of His Highness Shaikh Mohammad Bin Zayed Al Nahyan,

Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

Source: Gulf News

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Page 25



MUBADALA REAL ESTATE LOOKS TO PART

SELL UAE ASSETS Wednesday, April 17, 2019

Mubadala Real Estate and Infrastructure, the property investment arm of Abu Dhabi’s strategic firm Mubadala

Investment Company, is looking to monetise UAE assets through partial sales or launching a real estate

investment trust (Reit) after it finishes a portfolio valuation process this year, a senior company executive said.

“It may be a partial sale to third-party private sector investors or we list them [assets] on a Reit,” Ali Eid Al Muheiri,

executive director of the firm told The National in an interview at Cityscape Abu Dhabi. "I think in 2019, we will be

in a position to decide how we are going to monetise our assets.”

Mubadala Real Estate has had informal discussions with potential investors and hasn’t yet done a “market-

sounding exercise”. The initial response for partial sales has been very positive, he noted.

Parent company Mubadala, which has more than 50 investments worldwide and manages assets worth $225

billion (Dh826bn), invests on behalf of the Abu Dhabi government through four specialised investment platforms

including an alternative investment and infrastructure unit.

Mubadala Real Estate and Infrastructure, created four years ago, is the developer behind Abu Dhabi’s Al Maryah

Island, which is home to Cleveland Clinic and Abu Dhabi Global Market, the capital's onshore financial hub.

The company’s portfolio of investments include stakes in Aldar, the biggest-listed developer in Abu Dhabi, Aabar

Properties, Dubai-listed contractor Arabtec Holding, Four Seasons Abu Dhabi, Rosewood Abu Dhabi, Viceroy

Hotels Group and Sorbonne University Abu Dhabi among others.

If part selling is chosen as a route of exit, the company would invite both global and wider Middle East and North

African investors to buy equity stakes in the vehicle that are running the assets, he noted.

“So whether you buy an asset in Abu Dhabi or in New York it has to make commercial sense. That’s the way

people are looking at it,” he said. “For example, our commercial assets have been leased for five-to-six years, with

stable income and stable growth. People understand this.”

The move to divest assets is aimed at creating a more balanced portfolio and increase the firm’s exposure to

more mature and less risky markets, the executive said.

“I’m very heavy in the UAE and I’m very light in the international market. So I would like to reduce my UAE

exposure and increase my international exposure from a risk perspective,” Mr Al Muheiri explained.

However, if the company chooses a Reit after the valuation process, it would first include a small component of its

commercial portfolio and over time include residential, then retail and eventually hospitality assets into the

investment vehicle, he said, declining to give the size of a potential Reit.

“Once we do the valuation we are going to see what are the pros and cons of doing a Reit or … a partial sale,” he

said. “The positive thing is that people are starting to recognise that there is value in doing Reits because

historically there wasn’t [any in the region].”

Reits are listed funds that own income-producing commercial real estate and are legally obliged to distribute a

proportion of their income, usually 80 or 90 per cent, as dividends to shareholders.




Page 26



The company last year said it is looking to form partnerships with developers to build future projects in the UAE.

Mr Meheri said the talks for potential tie-ups are nearing conclusion and the firm will soon announce a deal,

which could either be a joint venture or sale of a land plot.

“The good thing is that the momentum we saw in 2018 has flowed into 2019. So we don’t have people walking

away [from deals],” he said.

Mubadala Real Estate, which has already invested in properties in the US, Europe and Asia, is looking to further

strengthen its income-yielding portfolio of assets. In the US, the company is looking to snap up assets in

Washington DC, New York, Los Angeles and San Francisco, while London, Munich, Berlin, Frankfurt and Paris are

on its radar in Europe. In Asia, where it already has made an investment in the logistics sector, Mubadala Real

Estate is eyeing destinations including Beijing, Shanghai, Hong Kong and Singapore.

“Our next challenge is to grow those investments,” Mr Al Muheiri said. “There’s never a lack of properties to invest

in, but what we want to do is to be a smart investor ... more importantly, create a well balanced portfolio that can

be a cornerstone for Mubadala. This is the end goal.”


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Page 27



ABU DHABI EXPECTED TO DELIVER 11,000

NEW HOMES IN 2019 Wednesday, April 17, 2019

The medium to long-term outlook for Abu Dhabi's real estate market is encouraging despite downward

corrections and new supply, according to a new report.

Chestertons said the future is brighter thanks to a AED50 billion government stimulus package and the

introduction of new visa rules to encourage expats to stay longer in the UAE.

Its Observer: Abu Dhabi Market Report Q1 2019 showed that average apartment sales and villa prices fell by 3

percent and 1 percent respectively in the first quarter of 2019 compared to the previous quarter.

It added that with over 11,000 units expected to be delivered throughout 2019, the market is likely to continue to

soften in the short term. However, predictions for the medium to long-term are more positive.

“The combination of the AED50 billion government stimulus package, new visa rules designed to encourage

expats to stay longer and invest in the Emirates and developers implementing lower ticket prices and flexible

payment plans are all likely to have a positive impact on Abu Dhabi’s real estate market. However, until the

combined effects of those initiatives have been realised, we expect investors and tenants to remain cautious,”

said Ivana Vucinic, head of consulting, Chestertons MENA.

In the apartment sales market, which saw an overall 3 percent quarterly decline, it was Al Reef which witnessed

the greatest decrease at 7 percent, the report added.

The Abu Dhabi villa sales market performed more resiliently witnessing softening of just 1 percent from Q4 2018,

with Al Reef witnessing a decline of 3 percent.

“The government has been instrumental in boosting the competitiveness of the capital’s business environment,

Initiatives which are expected to inject more activity into the real estate sector include the reduction of service

fees for the registration of properties, rental contracts and other transactions under the remit of Abu Dhabi

Municipality by up to 50 percent. This is in addition to exempting all businesses issued with new licences from

paying local fees for two years,” added Vucinic.

Downward adjustments in rental rates continued into Q1, with apartments down 3 percent and villas down 2

percent compared to the previous quarter as oversupply continues to hamper the residential sector, the report

also said.

In the apartment rental market, the largest declines were witnessed in older parts of Abu Dhabi while Corniche

Road and Mohammed bin Zayed City were the most resilient locations.

“We’ve seen the real estate market become increasingly effected by new supply entering the market, reduced

demand, ongoing redundancies and companies providing lower housing allowances. This has, however,

presented an opportunity for some residents to make cost savings by relocating to smaller units or maximising

the opportunities of the sustained rental rate downtown by upgrading to larger units with better quality

specifications, located in more popular areas,” said Vucinic.


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Page 28



BLOOM PROPERTIES EXPECTS PROPERTY

GLOOM TO LIFT IN H2-19 Tuesday, April 16, 2019

Abu Dhabi: Bloom Holding will start on two projects in Abu Dhabi to boost its residential portfolio in the emirate,

according to the CEO.

This includes phase 5 of its ongoing Bloom Gardens community, while the other will be a greenfield site spread

over 2.2 million square metres next to Abu Dhabi Airport. It would have up to 4,000 homes.

Construction of both will begin in the first quarter of 2020, said Sameh Muhtadi.

As for its ongoing projects, the Park View, which is across from New York University, is up for handover, while

Soho Square on Saadiyat Island is also ready. These will add 750 units before end of June, with most of them sold.

Bloom is also making progress with construction on two projects in Dubai to be ready for handover in June 2020.

“The Abu Dhabi market has had some challenges in the last year, but I am optimistic that the worst is behind us,”

the CEO said. “With people not buying as much as they did and there is pent up demand.”

He reckons the benefits from Abu Dhabi government’s stimulus package will be felt as early as the second-half of

this year.

“It’s all about new jobs, new people moving in, and better sentiment, which plays an important role in real estate.”

Bloom will also be expanding its education portfolio in Saudi Arabia and is committed to a project in Minnesota,

US.

Source: Gulf News

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Page 29



CHANGE TO ABU DHABI'S REAL ESTATE

RULES HAILED AS 'GAME CHANGER' Wednesday, April 17, 2019

The Government of Abu Dhabi says all foreigners will now be entitled to own the freehold of land and properties

which they purchase in investment zones

The Government of Abu Dhabi announced on Wednesday that all foreigners will be entitled to own the freehold

of land and properties which they purchase in investment zones.

Previously, this was only permitted for UAE and GCC nationals and the move has been described as a "game

changer".

As part of the changes, residential units in the zones will be registered under Abu Dhabi's freehold law, with

property ownership deeds issued to investors, according to a statement issued by the Government of Abu Dhabi.

Previously, foreign investors in Abu Dhabi property were generally limited to leasehold arrangements with 99-

year leases.

The move was hailed by Aldar Properties with Talal Al Dhiyebi, CEO, saying: "This is a game changing

announcement for Abu Dhabi, and we applaud yet another insightful policy decision by the government that

allows expatriates to be able to buy freehold properties in investment zones.

“This will not only further drive the maturity of Abu Dhabi’s real estate market, but will also increase transparency

and provide clarity of title for property owners, increasing long term investment, injecting more liquidity into the

market and encouraging longer term residency.”

Earlier this year, Aldar launched its Alreeman project in Al Shamka, an investment zone located adjacent to Abu

Dhabi Airport.

Al Dhiyebi added: “The latest changes not only boost the real estate market but also have far-reaching impacts on

the broader economy, and further increase Abu Dhabi’s diversification to non-hydrocarbon industries.

"We are already reaping the rewards of the recent initiatives and seeing a positive shift in sentiment, evident by

strong sales of over AED2 billion achieved for our two latest plot developments, Alreeman and Lea, which

demonstrates strength and resilience in the market.”

Last year, the federal government made sweeping changes to visa laws, which included granting long-term

residency to UAE property owners, as well as retirement visas and 100 percent ownership of businesses for

foreign investors.

Abu Dhabi Government has also launched the Accelerators Program Ghadan 21 which aims to boost

competitiveness of Abu Dhabi businesses and paves the way for a more positive investment environment in the

longer term.


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Page 30



IMKAN TO COMPLETE FIVE PROJECTS THIS

YEAR Wednesday, April 17, 2019

Abu Dhabi: Abu Dhabi developer Imkan will deliver five projects in 2019, of which three will be in its home market

and the other two in Egypt and Morocco.

“If you look at the cultural aspect of Abu Dhabi, the hospitality and medical sectors, and infrastructure with a new

airport coming online, it only helps to strengthen the real estate market,” said CEO Walid Al Hindi. “It cements the

idea that real estate is the right thing for this city... and we are optimistic.”

He did not disclose the total investment in the five projects, but said they have a portfolio of Dh100 billion and a

land bank of more than 30 million square metres.

“In Egypt, with a population of 100 million people and expect it to be 150 million by 2050, there’re plenty of

opportunities and we are there to stay.”

Imkan is also moving ahead with construction of new projects in Abu Dhabi, including Aljurf, located along the

Sahel Al Emarat coast between Abu Dhabi and Dubai. There is also the Pixel, a mixed-use project in Makers

District with 525 residential units across seven towers.

“This year is pivotal for Imkan — we are delivering around the world. We will prove to our customers, our clients,

our management we are up to what we have promised to deliver,” the CEO added.

Source: Gulf News

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Page 31



JUBAIL ISLAND DEVELOPER PLANS BANK

FINANCING FOR DH5BN PROJECT Wednesday, April 17, 2019

Jubail Island Investment Company, the developer behind Abu Dhabi’s Jubail Island, plans to finance the Dh5 billion

project through a mix of bank loans and equity contributions and aims to sell about 60 per cent of the land plot

earmarked for private investors within the next 18 months, a senior company executive said.

The developer is currently in talks with a consortium of UAE banks to finance the project, Mounir Haider,

managing director of the firm told The National at Cityscape Abu Dhabi. The amount being raised has yet to

finalised, he said, declining to name the banks or when a funding deal could be reached.

“We as a developer are committed to finance the infrastructure cost and the town centre through a combination

of private funds [owner’s equity] and bank financing," Mr Haider said. “A big percentage of that [funding] will

come from the owner of the project.”

The size, business plan and nature of the development, opens up a “big opportunity” for the lenders to part

finance the project.

Banks in the UAE, which had to book provisions for their exposure to property and project finance after the 2008

financial crisis, have been reluctant in lending to new property launches. The lenders are exercising extra caution,

especially after the fall in real estate prices in the last two years on the back of a global economic slowdown, a fall

in oil prices and as more supply hit the market.

Jubail Island is the latest mega project to be launched in Abu Dhabi’s real estate market dominated by players like

Aldar Properties, which is developing several projects at Yas and Saadiyat Islands.

Mr Haider, however, argued that the value proposition of Jubail Island is different and competitive.

“We are offering to investors what has not been offered, especially, an offer that caters to Emiratis and

expatriates both,” he said. “It’s an offer for investors who want to have a good size house on a good size plot and

at affordable prices, which we don’t believe the market caters for.”

A one-bedroom apartment on the island will cost around Dh990,000, while a three to four-bed villa in the

development will range between Dh2.5 million to Dh3m.

“We are very competitive [in terms of developments] within 15-minutes radius of Abu Dhabi compared with any of

the recently launched or built developments,” he said.

The company has already started selling the project and hopes to complete the sale of about 60 per cent of the

plots reserved for investors within the next year and a half. The initial uptake is very encouraging, as the property

market heads towards stabalisation, he noted.

The project, located between Saadiyat Island and Yas Island in Abu Dhabi, will be home to 5,000 to 6,000 residents

within the next four years, who will live across six “villages”. The developer plans to build villas on 40 per cent of

the plots, he added.


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DEVELOPERS MUST ENSURE SUPPLY-

DEMAND BALANCE Wednesday, April 17, 2019

Real estate developers in Abu Dhabi need to be 'careful' not to affect the demand-supply balance otherwise

everyone will stand to lose, a top official from Mubadala Investment Company said.

"A developer should ensure a right balance between supply and demand. At the end of day, an oversupply will

affect the pricing and all of us will lose. So, we have to coordinate among ourselves on right products that come

into the market and complement each other," Ali Eid Al Mheiri, executive director of Real Estate and Infrastructure

at Mubadala, said on the sidelines of Cityscape Abu Dhabi. The three-day event will conclude today.

He noted developers in Abu Dhabi have enough work to finish for next 5 to 10 years rather than expanding into

newer areas.

"Now with market being very tight and everyone conscious about cost efficiencies. Instead of opening new areas

of venture, there is enough work in Abu Dhabi and surrounding areas for developers to finish the development

for next 5-10 years."

Mubadala is promoting four residential developments - Lamar at Al Raha Beach, The Wave and Al Durrah Tower

on Al Reem Island, The Views at Saraya on the Corniche, and new developments on Al Maryah Island. However, Al

Mheiri said projects other than Lamar were developed 3 to 4 years ago and part of existing stock.

"We target mid-income sgment through majority of our offerings. The Views is scaled towards high-end and Al

Maryah Island is mixed between both," he said.

Al Mheiri noted that developers have shifted focus from high-end user to low- and mid-income groups in past 3-5

years. "In the past, developers didn't get the right mixture. If you look at demand in Abu Dhabi, high-end segment

comprise 10 per cent of residential units and the majority are low- to mid-income group. Today, as there is so

much pressure on pricing, there isn't much difference between low- and mid-income groups. To me, the low-

income group belongs to those who live in the shared accommodations. But with the current pricing in Abu Dhabi

low and mid segments are already merged into one category."

Al Mheiri said developers should attract buyers, who are mostly belong to mid-income group, with not just right

price but amenities too.

"Today what differentiates developments is the kind of amenities you have within your building. The buyer or the

tenant has lot of variety. One can live in Al Reem, Al Raha Beach, Downtown Abu Dhabi, Khalifa or Hamdan Street.

One can rent a 1 BHK in Khalifa Street but get one for same price in Al Reem where you have amenities - grocery

store, gym, coffee shops etc. This is what differentiates developments in Abu Dhabi," Al Mheiri added.


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ABU DHABI UNVEILS NEW URBAN

PROJECTS IN PURSUIT OF HAPPINESS Tuesday, April 16, 2019

The first day of Cityscape Abu Dhabi highlighted issues of happiness, liveability and sustainability under the theme

“Transforming Abu Dhabi”. Abu Dhabi’s Department of Urban Planning and Municipalities (DPM) showcased a

range of new urban development projects that have been designed to improve quality of life and liveability in the

city, fostering greater connection between families and creating a more engaged society for community wellbeing.

The projects will support the plan of making Abu Dhabi one of the most liveable cities in the world by 2021.

“The pursuit of happiness is deeply rooted in the history of the UAE,” said Falah Al Ahbabi, chairman of DPM. “In

1971, Shaikh Zayed highlighted that the most important achievement of the Union is the happiness of the

community. To Shaikh Zayed, the wealth of his nation was the happiness of his people and that happiness was

more than economic wellbeing. Transforming Abu Dhabi aims to make the city more liveable, focusing on

transport, mobility and urban environment, active lifestyle and the development of cultural programmes and

projects.”

Transport, mobility and urban environment

To enhance transport, mobility and wider urban environment, the DPM is commissioning projects that include a

network of new cycle paths throughout the city and a maritime hub (water taxi networks). It will also redevelop

many of the city’s most important arterial roads such as Airport Road and the Corniche with a comprehensive

Street Facelift Programme that will see improved traffic conditions, pedestrian experiences and climate

remediation efforts. These programmes are designed to also increase walkability in the city and reduce reliance

on automobiles.

Active lifestyle and development

The DPM is also planning to regenerate 11 of the existing parks in the city and develop three themed parks as well

as new “pocket” or “verge parks” in some of the busiest areas of the city this year. In addition, the DPM will create

45km of exercise trails, rest pods as well as significant development of the Corniche Beachfront and Al Bateen

waterfronts that will improve accessibility.

A major part of “Transforming Our Abu Dhabi” involves getting feedback and input from communities to measure

impact. People make choices about cities they want to visit or live because of the location, quality of life and

amenities that, together, make up its sense of place. The DPM has put in place a number of KPIs and targets

measuring resident footfall, community satisfaction, tourist footfall, private sector activation, usage and reduction

in car use.

Cultural projects

The DPM is developing Street Art programmes in seven of the main auxiliary roads in the city with creative shaded

streetscapes, augmented reality walking trails and the integration of public art as part of city colour.

Happy Living by Tamouh

The concept of Happy Living has also been highlighted by Abu Dhabi property development firm Tamouh at

Cityscape Abu Dhabi today. The strategy has been inspired by the National Programme for Happiness and

Positivity, and will help in promoting happier lifestyles within communities. Focusing on novel designs in urban




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planning and architecture, it aims to create communities and buildings that provide families, individuals and

businesses with the environment to grow and thrive in a happy and productive atmosphere.

The master developer made the announcement on the first day of Cityscape Abu Dhabi, where it also gave an

update on its Reem Downtown project and announced a unique post-handover payment plan for its Horizon

Towers mixed-use waterfront project on Reem Island.

Tamouh will incorporate scientifically proven practices to increase levels of happiness among residents,

introducing the elements of connectivity, light, space, airflow and by creating positive green social spaces in key

areas. Ghanem Al Mansoori, CEO of Tamouh, said, “Our ‘Happy Living’ initiative will be at the very heart of

everything we do. It will not only provide homes and comfort for individuals and families for generations to come

but provide businesses easy connectivity and help companies to increase productivity.”

Source: Gulf News

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ALDAR'S PROVIS EYES ACQUISITIONS IN

PUSH FOR UAE AND GCC EXPANSION Thursday, April 18, 2019

Provis, a fully-owned property management arm of Abu Dhabi’s biggest listed developer Aldar Properties, is

eyeing acquisitions of rival firms in the UAE and the broader GCC market as it aims for a 20 to 25 per cent year-

on-year rise in revenues this year, a senior company executive said.

“Our growth is derived from two aspects: organically, by winning bids which are transparent; and inorganically, by

acquiring other businesses,” Sameer Barakat, executive director estate management at Provis told The National at

Cityscape in Abu Dhabi. “We are in talks and hopefully, in coming weeks and months, we will announce big

acquisitions of existing property management companies and owners’ associations.”

Provis, which is Abu Dhabi's biggest property management company, will look for acquisitions in the other

emirates in the UAE, the second-biggest Arabian Gulf economy, and other states within the economic block of

GCC.

The potential acquisitions, Mr Barakat said, are currently being evaluated by Aldar Investments, another unit of

the parent company.

“What I can say is that the sky is the limit,” he said, when asked what the potential size of acquisitions the

company is looking at might be.

“Aldar has the powers to acquire, if you see the acquisition made lately."

Last year Aldar acquired real estate assets of Abu Dhabi’s Tourism Development & Investment Company in a

Dh3.7 billion deal, one of the largest property acquisitions in the country’s history. Aldar Investments earlier this

year said it is acquiring full ownership of Etihad Plaza and Etihad Airways Centre from the UAE’s national flag-

carrier Etihad Airways in a transaction worth Dh1.2bn.

"Aldar wants to grow and not grow alone but with its subsidiaries,” Mr Barakat added.

The company is now looking to acquire more assets to strengthen its portfolio and is open partnerships to sell

and develop new property projects in Asia and the Middle East and North Africa, Maan Al Awlaqi, Aldar’s executive

director of commercial told The National on Tuesday.

Provis, which provides services from sales and leasing to property consultancy and management for developers,

owners’ association consultancy and management and clubhouse and lifestyle management, has set up an office

in Dubai and aims to start working with major developers in the emirate, especially on providing lease and

property sale services.

With the decline in the UAE real estate prices in the past two years due to a slowdown in the global economy,

lower oil prices and muted demand, and as more property projects come online developers, especially small to

medium-sized property companies, are looking to cut costs and hire firms such as Provis to manage their

properties.

Provis, which has a current portfolio of more than 13,500 units under property management and over 14,000

units managed by owners’ associations, expects significant growth in both the number of units and its client base

in 2019.




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It expects to see at least 20 to 25 per cent rise in revenues in 2019 alone, Mr Barakat said, declining to give the

dirham figure of expected revenues.

The company plans to focus on the UAE and GCC markets for the next three to five years and will look to expand

its footprint beyond the region afterwards.

Khidmah, Aldar’s facilities management subsidiary, has been present in Saudi Arabia for the past three years and

Provis intends to capitalise on its relations with the clients such as Saudi Aramco, the world’s biggest oil producing

company, and bid for new mandates in the kingdom, he said.

Within the UAE, Provis is already managing all the residential and commercial assets of Aldar and has a mandate

to look after the residential assets of property developer Miral and some third-party medium-sized property

owners.

The company is also managing properties for some of government entities including the Federal Auqaf

department in Abu Dhabi and Northern Emirates and has client relationships with all the “blue-chip companies”

including banks and big conglomerates, Mr Barakat added.


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DEVELOPERS FOCUS ON HITTING ABU

DHABI'S PROPERTY 'SWEET SPOT' Wednesday, April 17, 2019

Real estate expert outlines key factors to the evolution of the UAE capital's property market at Cityscape Abu

Dhabi

Market maturity and developers responding to buyer demand are key to the evolution of Abu Dhabi’s real estate

market, according to an industry expert.

Speaking at Cityscape Abu Dhabi's conference, Craig Plumb, head of research at JLL MENA, said the property

market in the UAE capital has become more affordable.

“We are positive about what we can expect to see. Property is a cyclical business and we are in a period of a soft

market. However, there’s not a huge amount of new supply expected this year or next,” said Plumb.

“In the residential market, we are looking at about 8,000 units for this year and even less next year, that’s about 3

percent of existing stock and this is good,” he added.

“The market has adjusted and is not just building a huge amount of supply that we saw three to four years ago.”

He said that the market is currently experiencing a period of lowdown largely because “it has reacted” to what is

needed.

“The market has become more affordable, as developers have recognised the sweet spot isn’t super luxury, it’s at

the middle market. The market is now providing for where the demand is. Developers have recognised that and

are delivering a lot more product at that sweet spot."

Plumb added the UAE capital’s retail real estate sector is primed for change with the rise of e-commerce resulting

in developers engaging in new trends.

“Average retail rents are falling because landlords are responding to tougher market conditions by being much

more flexible in their deals. Rental contracts are looking very different now. Trends such as ‘turnover only rent’

are gaining popularity,” said Plumb.

“Pop-up shops are now a thing, with vacant retail space being given for low rent for a short amount of time to new

concepts. We are witnessing a redefining of retail with the merging of online and bricks and mortar retail. Look

out for more click and collect stores coming up.”

Plumb added that a challenging retail environment could well be a boon for local start-ups, particularly in the F&B

space.

“We will start to see more of what we call ‘Dinnertainment’ – a mix of F&B, entertainment and retail in the same

unit. I think this is a trend we’ll start to see more of being used in latent stores and we are aware of a number of

new concepts looking to come into this space.”


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GOV'T INITIATIVES 'YET TO IMPACT' ABU

DHABI REAL ESTATE MARKET Tuesday, April 16, 2019

Abu Dhabi's real estate market is expected to rebound in the long run following government initiatives

announced in 2018 to stimulate demand and drive diversified economic growth, according to new research.

JLL's Abu Dhabi Q1 Real Estate Market Overview on Tuesday reported subdued conditions and relatively

unchanged performance across most sectors in the UAE capital, adding that the goverment initiatives have "had

little impact" so far.

The office market saw an increased number of enquiries in the first quarter of 2019 and is expected to stabilise by

the end of the year, with limited expected declines in rent for Grade A space, JLL said.

“In the long run, demand for office space could be generated by the easing of regulations and the major stimulus

package announced by the government last year. Demand could also come from private sector businesses

following the new law formalising the public-private partnership program,” said Peter Stebbings, head of Abu

Dhabi office, JLL.

“Overall we expect market sentiment to improve given these significant government initiatives launched to boost

overall demand and to energise the market. However, the benefits of these measures will likely be seen overtime

as industry players and investors continue to be cautious during current times of uncertainty,” he added.

JLL's report said that in the residential and retail sectors, occupancy levels remained largely unchanged with rents

continuing to decline due to subdued market sentiment and limited demand.

These marketplace conditions also led to declined residential sale prices, affected by the continued reduction in

transaction volumes.

The hospitality market registered a significant increase in average daily rates at 19 percent to reach $138 in Q1,

attributed mainly to a number of high profile events allowing hotels to capitalise on an increase in visitors to the

capital.

Occupancy levels remained stable at 79 percent in the year to February compared to the same period last year.

With limited levels of new room supply expected in 2019 and 2020, the hotel sector could begin to recover ahead

of other sectors of the market from 2020 onwards, JLL noted.


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ALDAR PROPERTIES' LEA HAS SOLD OUT Wednesday, April 17, 2019

Aldar Properties' latest development, Lea, located on the northern shores of Yas Island has sold out during

Cityscape Abu Dhabi generating over Dh400 million in sales.

Offering land plots starting at Dh990,000 and sizes ranging from 405sqm - 1,800sqm, and available for purchase

by all nationalities, Lea features 238 residential plots in a prime location adjacent to Aldar's flagship Yas Acres

project. Lea boasts parks, promenades, and waterside walkways. In addition to this, residents benefit from all of

the amenities within Yas Acres - parks, swimming pools, play areas, bbq and picnic areas, schools, mosques and

the Yas Acres full length nine hole golf course.

This most recent sell out follows the successful launch of Alreeman, a land plot masterplan located close to Abu

Dhabi Airport, which generated Dh1.6 billion in sales.

Talal Al Dhiyebi, chief executive officer, Aldar Properties, said: "Selling over Dh400 million of real estate is a ringing

endorsement of what we do best - understanding what our customers need and then creating the right product

to fulfill their requirements. We are off to a flying start this year, and we are seeing really strong demand for land

opportunities within well though out, master planned communities. Generating over Dh2 billion from our two

most recent developments - Al Reeman and Lea, shows how market sentiment is moving in a positive direction."

Maan Al Awlaqi, executive director - Commercial, Aldar Properties, said: "We are delighted with the response we

received for Lea from both investors and homeowners of various nationalities. This is further evidence of the

strong demand for land plots, following our launch of Alreeman. This is also our first development launch since

we opened our inaugural experience centre in Dubai earlier this year, and we are seeing how this new demand

channel from further afield is being reflected in transactions."


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‘PEOPLE ARE COMING BACK TO ABU DHABI’ Tuesday, April 16, 2019

The softening rental market in Abu Dhabi has granted its tenants more bargaining powers. House prices are now

more aligned with salaries and housing allowances and landlords are being flexible in terms of a number of

cheques they are willing to accept. “We believe that the market is stabilizing for tenants in Abu Dhabi,” says Kika

Pavese, General Manager, MD Real Estate. Sameer Barakat, Executive Director, Provis also agrees that the higher

level of availability of properties is attracting tenants to upgrade to bigger homes. He says, “The focus is on good

facilities and amenities, and with competitive prices. Landlords are providing ample incentives to retain existing

occupants. Moreover, developers are creating more beneficial schemes to attract buyers such as rent-to-own

schemes which motivate first-time buyers with lack of down payment funding to enter the market.”

More unit choices

The current pressure on the rents is a fantastic situation for the tenant, says Felicia Agmyren, Managing Director,

Rex Real Estate. “We are experiencing a tenant’s market right now, meaning that the selection of units and

potential to negotiate is greater than usual. It will also mean that there will be the flight to quality. Better areas

will generate more interest, so the level of pressure on rents will vary depending on the area.”

She adds that for those searching for a unit now, the market have more options to choose from in better areas

and with excellent views and ones currently renting a unit should consider renegotiating the rent if the tenant

would like to do so. “Given the market being both a tenant’s and a buyer’s market, if someone is looking to live

here for a few years, it could be a good idea to consider purchasing a property if the mortgage is less than the

rent. We are expecting the market to start slowly moving upwards in the near future. This could, therefore, be one

of the best times to consider negotiating a good price to purchase a comfortable home.”

Demand dynamics

Andrew Covill, Director, Henry Wiltshire International says that the current market is also making tenants try too

hard to find the cheapest rent. “Tenants are looking for unrealistic rents and trying to negotiate with the agents’

terms and conditions to the point where they will not get the professional advice and service they deserve.”

He sees increased demand for smaller and cheaper apartments with some exceptions in notable developments

such as Al Bandar and Saadiyat Island where availability is very tight. “In these sought after properties and areas,

the general trend is bucked with very high occupancy rates and even waiting lists. Generally, there is a flight to

quality where people can get a better property for the same price such as relocating from the Tourist Club area to

Reem Island or Reem Island to Corniche or Al Raha Beach,” said Covill.

“Some people are taking smaller and cheaper units with flexible payment terms though. Furnished and serviced

properties are more popular than ever. People are now buying again in increasing numbers as prices are down,

finances are cheap, and the market stabilised. This has taken several tenants out of the market,” he adds.

“People are coming back! We are witnessing many families coming back to Abu Dhabi who left in 2014 and 2015.

Oil service supply companies and Adnoc are hiring again, which will bring new tenants and buyers to fill the

supply coming on board,” said Covill.

Source: Gulf News

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ZONESCORP SAYS TO LAUNCH ABU DHABI,

AL AIN INDUSTRIAL PROJECTS Monday, April 15, 2019

ZonesCorp, which oversees 50 sq km of developed areas in Abu Dhabi City and Al Ain, is set to announce two new

investment projects.

Covering a total area of two million sq m, the new projects will support an extensive range of industrial and

commercial activities, it said in a statement.

The first project will be located in Abu Dhabi’s ICAD Zone 3 and will include the ICAD Business Park occupying 1.1

million sq m, ICAD Gate spanning 470,000 sq m, and a 234,000 sq m prefabricated factory project.

The second project – Al Ain Investment Complex in Al Ain Economic Zone – will extend over a total area of 155,000

sq m, it added.

ZonesCorp said each of the projects will include an incubator and specialised units equipped to host industrial

activities that cater to the needs of small and medium-sized enterprises (SMEs).

Once completed, the projects will also embrace commercial and residential complexes, shopping and

entertainment centres, medical centres and spacious car parks, in addition to organic food centres.

Saeed Eisa Mohammed Al Khyeli, director general of ZonesCorp, said: “ZonesCorp’s strategic planning and

objectives aim to attract further local and international investments in line with Ghadan 21, the AED50 billion

three-year development program launched in 2018.”

He added: “Our new projects offer immense potential in terms of market access and growth opportunities for

businesses and innovators looking to establish or expand their presence in Abu Dhabi’s rapidly growing non-oil

sectors, including ventures led by Emiratis as well as SMEs.

"We will provide facilities, logistical support and a full range of world-class services based on our understanding of

investor requirements throughout the establishment, construction and operational phases of these projects.”

In addition to its new investment clusters, ZonesCorp has also launched the second phase of Rahayel City, an

integrated auto hub located at the nexus point of three of Abu Dhabi’s main urban centres – Khalifa City,

Shakhbout City and Mohammed Bin Zayed City.

Spanning 12.3 sq km, Rahayel City will serve as a focal point for automotive manufacturers, distributors, new and

used cars showrooms and auction marts, service providers and dealers and is scheduled for completion in Q1

2020.


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SHARJAH AND AJMAN PROPERTY OFFERS

GOOD INVESTMENT OPPORTUNITIES Wednesday, April 17, 2019

The property market in Sharjah and Ajman remains buouyant, even as prices have fallen on average across

popular districts for both emirates, with average return on investment at 7 per cent in Sharjah and over 11 per

cent in Ajman for certain neighbourhoods, according to real estate portal Bayut's Q1 market report.

“Over the first quarter of 2019, both Sharjah and Ajman present a lucrative opportunity for investors. From a

rental perspective as well, the combination of reasonable rents and easily accessible schools makes both these

emirates extremely attractive options for families in the UAE," said Haider Ali Khan, CEO of Bayut.

Apartment prices in Sharjah have slipped between 2 and 6 per cent for both sales and rentals, with prices staying

stable in certain areas, the report said.

According to Bayut, larger apartment units for sales in popular locations such as Al Majaz and Al Khan have seen

price decline less than 6 per cent, while they have fallen around 11 per cent mark in Abu Shagara and Al Khan.

According to search trends, Al Majaz is most popular with investors to buy apartments in Sharjah, Bayut said,

while tenants turn to Al Nahda as their first choice for renting.

When it comes to villas in Sharjah, Al Sabkha generated the most searches by both investors and renters.

For apartments in Ajman, meanwhile, the overall price trends for both sales and rents show marginal declines

between 1 and 6 per cent with prices remaining stable in many areas, Bayut said. For apartment sales, declines

are at the 7 to 8 per cent margin for units in Garden City and Al Sawan.

As for the rental apartments, the most significant decreases are for units in Ajman Downtown, Al Rashidiya and Al

Jurf, where prices have gone down by an average of 6 per cent. In terms of popularity, Ajman Downtown has

received the most interest from investors while for apartment rentals Al Nuaimiya retains the top position in Q1

2019.

For villas in Ajman, Al Mowaihat is the most popular among investors whereas tenants are most interested in Al

Rawda.

“The property markets in both Sharjah and Ajman have grown substantially in recent years, with reputed builders

such as Eagle Hills and Emaar exploring options here," added Mr Khan.


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SHARJAH RULER INAUGURATES NEW

$1.6BN KHORFAKKAN HIGHWAY Monday, April 15, 2019

Sheikh Dr Sultan bin Mohamed Al Qasimi launches major new road in the Northern Emirates

Sheikh Dr Sultan bin Mohamed Al Qasimi, Ruler of Sharjah, has inaugurated the new Khorfakkan highway, which

extends 89km and has an estimated cost of AED6 billion.

The new highway is the latest addition to the roads network of Sharjah and the UAE, linking the arterial Emirates

Road (E611) in Sharjah with Wadi Shi Square in Khorfakkan.

Accompanied by Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, the two leaders inspected the

intersections, tunnels and underground crossings of the new highway that passes through deserts, plains and

mountains.

The highway includes 14 intersections, and 7 underground crossings along with five pairs of tunnels dug through

high mountains. These include Al Sidra Tunnel, which at 2,700 metres, is the longest covered mountain tunnel in

the Middle East.

They also inspected Al Rafisah Dam, one of the most important family tourism destinations in Khorfakkan.

Spanning a total area of 10,684 square metres, it includes a mosque, outdoor seating area for 300 people, car

parking for 45 vehicle, a walkway, and three playing areas spanning 410 sqm.

The Ruler of Sharjah also laid the foundation stone for the branch of Arab Academy for Science, Technology and

Maritime Transport in Khorfakkan.

The Academy will grant students a bachelor's degree in applied, theoretical and maritime sciences.

He also inaugurated the Khorfakkan Lakes and Fountains Project at the entrance of Khorfakkan which features

four lagoons and a number of fountains,, and unveiled the Resistance Monument, which is a testament to the

steadfastness of the Khorfakkan people in the face of the Portuguese invasion in the early 15th century.

The Sharjah Ruler also announced that many more projects will continue to be developed in Khorfakkan to

increase the beauty of the city, and provide it with all educational, sports and leisure facilities.


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ARADA EYES PARTNERSHIPS AND MULLS

ACQUIRING A RIVAL DUBAI DEVELOPER Tuesday, April 16, 2019

Arada, a Sharjah-based real estate developer, is eyeing joint venture partners in Dubai and Saudi Arabia and may

spend as much as Dh2 billion to acquire a rival developer in Dubai, its vice chairman said.

The developer, which is building a Dh24 billion megadevelopment called Aljada in its home market, is in talks with

several parties in Dubai for a joint venture and could take over a developer with the right asset bank to gain

access to the market, Prince Khaled bin Alwaleed bin Talal said.

Acquisition “is on the table. That is actually one [of the] reasons why we are taking our time [in entering Dubai

market]", Prince Khaled told The National in an interview at Cityscape Abu Dhabi on Tuesday.

“We can either form a joint venture or acquire and we are being agnostic to what structure we use to come into

Dubai. It will really depend on how we would like to move forward.”

Arada is looking at spending as much as Dh2bn for a potential acquisition of a developer “who currently has an

asset bank available”, the prince said. The company would look to finance the joint venture or an acquisition

through a mix of equity and bank debt, he said.

The private developer, a joint venture between KBW Investments – a firm controlled by Prince Khaled – and

Basma Group, last year expressed intentions to expand beyond Sharjah, however, it is being “picky” and

“opportunistic” in timing its entry into Dubai, the vice chairman said. Arada expects to announce a deal to build a

townhouse project in the emirate within the next three months and is trying to catch the market “at the bottom”

of the price range, Prince Khaled said.

UAE real estate prices have declined in the past two years due to a slow down in the global economy, lower oil

prices and muted demand, as more property projects come online. Still, developers have launched several

tourism, housing and mixed-use projects in Sharjah as the emirate seeks to raise its profile and compete with its

neighbour to the south, Dubai.

When Arada announced its 2.2 million square-kilometre Aljada mixed-use community in 2017, it was Sharjah’s

largest-ever scheme at the time, which the developer is funding through a mix of debt, revenues from off-plan

sales and banks. It is now looking to raise Dh1bn in bank loans. The bilateral loan deal with a UAE bank, Prince

Khaled said, will consist of two tranches - Dh600 million for Aljada and Dh400m for Nesma, another project of the

developer.

Arada announced a target last year of Dh2bn of revenues by April 2019, and achieved the milestone in March. It is

now looking to achieve revenues of Dh1.3bn to Dh1.5bn for the whole of 2019, Prince Khaled said.

Beyond Dubai, Arada is focusing on expanding into Saudi Arabia, the Arab world's largest economy, which is

facing housing shortages and, like it’s GCC peers, has witnessed a softening property market over the last few

years.

“Saudi is definitely a market we want to tackle first before anywhere else,” Prince Khaled said. “Cityscape Jeddah

really opened up our eyes in terms of partnerships that we can have with government and quasi-government

entities … the Ministry of Housing and its subsidiaries.”




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The company, which is in the process of setting up an office in Saudi Arabia, is already in preliminary talks with

potential partners in the kingdom and hopes to announce a deal by the end of 2019 or the beginning of next year.

“When you talk about Saudi you talk about 90 per cent of the projects being Saudi government owned… so what

we are trying to do is not only partner with them but also start something for ourselves,” he said, adding that a

tie-up with a landowner or a developer is also an option.

Riyadh is the primary focus of Arada in Saudi Arabia and it is also looking at potential opportunities in Asir.

Prince Khaled expects Saudi real estate market to level out, if not rebound this year or next on the back of

government initiatives.

“Saudi government has really been active with the private sector and businesses to improve the regulations and

to better the investment environment for private developers to restart their work in Saudi Arabia,” he said.


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FUJAIRAH CROWN PRINCE INKS DEAL TO

BUILD $27M SPORTS STADIUM Tuesday, April 16, 2019

Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi approves deal for Dibba Sports Club Stadium

Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah signed a contract for the

construction of the Dibba Sports Club Stadium.

Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah has signed a contract for the

construction of the Dibba Sports Club Stadium.

The agreement with the Fuj Singh International Company to build the sports facility at a cost of about AED100

million ($27 million) was inked as per the directives of Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah.

The project includes the construction of vital sporting facilities to international standards, state news agency WAM

repotted.

Sheikh Mohammed said that the construction of the stadium is one of the emirate’s key projects and represents

progress in providing basic services.

He added that it also aims to support the emirate’s sporting movement, as well as encourage excellence and

success.


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Page 47



CONSTRUCTION CONTRACT AWARDED FOR

NEW LUXURY RAS AL KHAIMAH HOTEL Sunday, April 14, 2019

RAK AMI Hotel says Movenpick Resort Al Marjan Island will be built by Al Ali Construction & Development

With a total development of AED543 million, the hotel will welcome its first guests in the first quarter of 2021.

RAK AMI Hotel, a company based in Ras Al Khaimah, on Tuesday announced the award of the construction

contract for Movenpick Resort Al Marjan Island to Al Ali Construction & Development.

The Mövenpick Resort Al Marjan Island will add 418 hotel rooms. These include 295 rooms, 95 suites and family

rooms, and 28 chalets.

With a total development of AED543 million, the hotel will welcome its first guests in the first quarter of 2021,

amid rising demand for luxury hotel rooms in the emirate.

Abdulla Al Abdouli, chairman of RAK AMI Hotel, said: “Awarding the construction contract to Al Ali Construction &

Development is another landmark in the evolution of RAK AMI Hotel company to be one of the leading hospitality

developers in Ras Al Khaimah.

“As the first project under RAK AMI Hotel, the resort will enhance the choices offered for our visitors. The choice of

rooms and amenities will make the resort highly desirable for families. Al Ali Construction has proven experience

in delivering world-class projects and we look forward to the completion as per schedule,” he added.

The resort also includes conference and banquet facilities, several meeting rooms, five F&B outlets, two

swimming pools and a spa.

Currently, Al Marjan Island has over 1,600 operational five-star hotel keys, including Rixos Hotels, Hilton Hotels &

Resorts and Accor Hotels brands, and more than 2,000 residential units including Bab Al Bahar residential and

Pacific by Select Group.


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Page 48



ALDAR EYES ACQUISITIONS AND

DEVELOPER PARTNERSHIPS OUTSIDE THE

UAE Tuesday, April 16, 2019

Aldar Properties, Abu Dhabi’s biggest property developer, is looking to acquire assets and is open for sale and

property development partnerships in Asia and the Middle East and North Africa, as it looks to expand its

footprint beyond the emirate, a senior company official said.

“We are always opportunistic. [Growth] is either organic or through acquisitions, and it all depends on what’s

accretive to us and our shareholders,” Maan Al Awlaqi, Aldar’s executive director of commercial told The National

in an interview at Cityscape in Abu Dhabi. “It’s all about enhancing shareholder value.”

Last year Aldar acquired real estate assets of Abu Dhabi’s Tourism Development & Investment Company in a

Dh3.7 billion deal, one of the largest property acquisitions in the country’s history. Aldar Investments, a unit of the

developer, earlier this year said it is acquiring full ownership of Etihad Plaza and Etihad Airways Centre from the

UAE’s national flag-carrier Etihad Airways in a transaction worth Dh1.2bn.

The investment vehicle, launched in September last year, is among the region's largest diversified real estate

investment companies whose portfolio includes Dh20bn of revenue-generating assets.

“We are continuously scouring for deals,” Mr Al Awlaqi said, when asked if the company is currently evaluating any

deals. “Our investment committee over the past few years is always overloaded with [potential] deals that we are

looking at. That’s always been the case.”

Aldar, the top listed developer in the emirate, is also open to striking partnerships to sell properties or develop

new projects outside the UAE. For sales partnerships, the company considers the GCC a “key market” with Saudi

Arabia “being the behemoth”. It is looking for partners for similar deals in Egypt, China, India and Russia, he

noted.

“In terms of [project] development partnerships, we are open to the world,” Mr Al Awlaqi said. “We have looked at

different ways of going international. We are always looking for opportunities and look at how to do it and we are

open to all different [types of partnership] structures.”

Aldar and Dubai-listed Emaar Properties, the UAE’s biggest developer by market capitalisation, in March last year

formed a strategic alliance to develop Dh30bn worth of local and international projects. Under the agreement the

developers will initially collaborate on two UAE-based projects: Saadiyat Grove in the cultural district of Abu

Dhabi's Saadiyat Island, and the Emaar Beachfront project, a private island in Dubai located between Jumeirah

Beach Residence and Palm Jumeirah.

The quality of the partners, he said, will dictate which of the markets Aldar will expand to internationally.

“We are looking literally everywhere … again it depends on the partner,” he said. “Saudi is definitely a primary

sales market and given they are our neighbours that is something we look at.”




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The developer, which has about 12 projects in the UAE at various stages of development, is seeing demand

returning and the real estate market in the emirate bottoming out after softening in recent quarters on the back

of slower economic momentum amid weak oil prices, which fell below $30 a barrel in the first quarter of 2016.

The price of crude has since stabalised, hovering around $70 per barrel, and the government has launched

initiatives such as a Dh50bn three-year economic stimulus package known as Ghadan 21 while easing visa

restriction to boost growth.

“We are seeing [bottoming out] happening on the ground,” he said. “We are seeing huge turnout [of investors]

and huge demand. The bottoming formation is there in Abu Dhabi in terms of off-plan sales.”

Control of oversupply of real estate units in Abu Dhabi, he noted, has helped the market stabalise.

The market "is GRE [government-related entity]-dominated, with Aldar being a major player in that. We have been

very shrewd in how we controlled the market over the past few years, especially with the oil price fall, and kept

prices much more stabalised,” he added.


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BLOOM HOLDING TARGETS PRIVATE

PLACEMENT AS SCHEMES PROGRESS Friday, April 19, 2019

Bloom Holding, an Abu Dhabi-based property developer, is in talks over a private placement and expects a deal

this year, as it progresses its schemes in the UAE capital – including a Dh5bn ‘mega-community’ masterplan to be

finalised this year.

“We are in continuous talks with prospective investors to form a strategic partnership for a private placement, and

are hoping for a deal this year – it will be great if that happens,” Bloom Holding’s chief executive Sameh Muhtadi

told The National.

A private placement is a capital raising event in which a company’s shares are sold to a select number of chosen

investors, or a single investor, rather than through an initial public offering on a stock exchange. It enables the

company to raise new financing for its next chapter of growth.

Earlier this month, Mubadala Investment Company, the Abu Dhabi strategic investment firm, agreed to sell a

significant minority interest in its fully owned Spanish oil and gas firm Compania Espanola de Petroleos (Cepsa) to

US-based Carlyle Group in the latest private placement by a UAE firm.

Bloom Holding saw low single-digit growth in revenues in the past year, but this was mainly driven by its

hospitality division rather than residential or other real estate, which has been suffering a slowdown in the UAE in

the past few years amid global economic uncertainty, low oil prices and muted demand, except for affordable

property, its chief executive said.

However, the company is eyeing accelerated growth beyond 2019, a year in which it intends to hand over two

sizeable mixed-use projects on Abu Dhabi’s Saadiyat Island – Park View, scheduled for handover in the coming

weeks, and Soho Square, to follow soon after. It is also working on phase five of its Bloom Garden gated

residential community, comprising 240 units, which it intends to launch for sale in the coming months, according

to Mr Muhtadi.

Another focus for the private developer is to unveil the masterplan for a Dh5 billion mega-community close to

Abu Dhabi International Airport.

The two million square-metre mixed-use project is to comprise housing, retail, food and beverage outlets, schools

and medical facilities, and the company plans to submit the concept masterplan for approval by the Abu Dhabi

government by the third quarter of this year.

“Hopefully we will break ground on constructing the first phase of the scheme – mainly utilities and other

infrastructure – in the early part of 2020,” Mr Muhtadi said.

In the meantime, Bloom is in talks with lenders including Abu Dhabi Commercial Bank (ADCB) over “billions of

dirhams” of loan financing for the project, and aims to fund the scheme with a 30:70 mix of equity and debt, he

added.

Bloom has appointed global design and urban planning consultancy GHD to undertake the masterplan, and has

decided on a rough estimate of between 3,400 and 4,000 residential units for the whole project, depending on

how many apartments, townhouses and villas that comprises.




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In addition, Mr Muhtadi is courting interest from international and domestic investors in partnering with Bloom to

develop specific portions of the masterplan. “These are mainly contractors who want joint ventures with us,” he

said. Some of the plots of land will also be sold off entirely to third party developers, he added.

The National reported last year that Bloom was eyeing an IPO to help finance its future growth, but Mr Muhtadi

said while this proposal has not been shelved entirely, it is on ice for the year while sales and rental prices in the

UAE property market continue to decline, and while regional capital markets remain sluggish.

The private placement is a “logical first step” towards an IPO, or even instead of it, but “it’s not simple, there is

much due diligence to do, and it will be great if we can tie up a deal this year”, the chief executive said.


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Page 52



DUBAI'S AZIZI DEVELOPMENTS EYES

DH1BN ABU DHABI PROJECT IN 2020 Thursday, April 18, 2019

Azizi, a Dubai-based property developer, plans to expand into the UAE's largest emirate with a Dh1bn project next

year, as the Abu Dhabi government enacts new laws that allow foreigners to own freehold property in designated

zones, its chief executive said.

“We are interested in developing a project and [to] acquire some plots in Abu Dhabi,” Farhad Azizi, chief executive

of the firm told The National on Thursday. Azizi plans to “launch one [project] in 2020 but this [amendment in the]

rule will encourage us to do more in the market and build a bigger portfolio of business in Abu Dhabi."

The company, which has traditionally invested in its home market of Afghanistan and Dubai, aims to buy plots of

land in Abu Dhabi and will decide at a later stage whether to proceed with a townhouses or low-rise apartment

building project in the emirate next year. The project's value would not be less than Dh1bn, he said.

On Wednesday Abu Dhabi's government amended a real estate rule to allow foreigners to own freehold property

in designated zones, which will prove to be equally beneficial for developers and investors, according to analysts

and developers surveyed by The National. Foreign investors, before the change in regulations were granted

leasehold arrangements with a maximum 99-year time period. Until the changes, freehold ownership of property

was only allowed for the UAE and GCC nationals.

“As a developer [we] have been very busy in Dubai but wanted to expand to Abu Dhabi, with the emirate being

such a huge market,” Mr Azizi noted. “With such rules coming in play, it makes it easier. It will encourage property

developers like us.”

UAE real estate prices have declined in the past two years due to a slowdown in the global economy, lower oil

prices and muted demand, as more property projects come online. However, steps like allowing freehold titles,

government spending, a Dh50bn three-year stimulus package and easing of visa restrictions are a boon to Abu

Dhabi's property market.

Beyond Abu Dhabi, Azizi plans to expand in international markets such as Frankfurt, London and Paris and build

an “iconic” project in main European destinations to raise its international profile as a developer. The company is

not interested in mass housing projects and is currently scouting markets for the right opportunity, he said.

The developer currently has a portfolio worth Dh45bn of projects under development and has less than Dh500m

in bank loans on its balance sheet. The company is already engaged in talks with its UAE-based relationship banks

for more short term bridge financing options as it continues to build projects. Mr Azizi didn't name the lenders or

how much the company plans to raise in debt.

Azizi may opt for longer term construction finance from foreign banks when it expands its footprint beyond the

UAE borders, mainly due to favourable interest rates in European markets.

The developer company was recently restructured, reducing its sales force by about 60 per cent, after a period of

rapid expansion over the past decade in Dubai. The restructuring was driven by the need to control costs and

generate efficiencies, Mr Azizi said.

"We are not running a grocery business in the city," he said, explaining the company decision to close sales office.





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Page 54



LEASEHOLD AND FREEHOLD PROPERTY

TITLES EXPLAINED AMID NEW FOREIGN

OWNERSHIP RULE Thursday, April 18, 2019

Abu Dhabi on Wednesday enacted changes to its laws governing property ownership in the emirate, a landmark

move that will allow foreign investors to buy freehold real estate in designated free zones in the UAE capital for

the first time. They were previously only permitted to own properties on leaseholds of up to 99 years.

The National explores the difference between freehold and leasehold and how the legal changes improve Abu

Dhabi’s global ranking as a destination for property investment, and what it means for investors and developers.

What is a leasehold?

An owner can take the title of a leasehold property for a fixed term but does not own the land on which the

property is built. Ultimate ownership of the entire property goes back to the freeholder. The period of leasehold

varies from market to market and in Abu Dhabi’s case a leasehold term is up to a maximum of 99 years.

What is a freehold?

Under freehold ownership, an investor has a direct title of ownership of the property, and the land on which it is

built. Undeveloped parcels of land are usually freehold assets, and some investors such as large corporations

prefer to acquire freehold titles and build the property of their choice.

So how exactly are the two different?

While leasehold means buying the right to live in or occupy the property from a freeholder for a fixed period of

time, the freehold contract is applicable in perpetuity and when the owner passes away, an heir can inherit it.

Essentially, the property stays in the same family, according to UAE property consultancy Bayut.com. Under a

leasehold, making improvements on a property to suit an investor’s needs such as alterations or renovation,

requires written approval from the landowner.

In freehold titles, the investor has complete control over the property unit and the land. Owners can make

changes to the structure and renovate as they see fit, and sell or lease the property at their own discretion,

Bayut.com explains.

What does Abu Dhabi's new law mean for foreign investors?

Some foreign investors deem leasehold as an inferior title and prefer to invest in properties that offer absolute

ownership so that they have more control over their asset.

“It will enhance incoming investments…. it really gives confidence to foreign investors and clarifies the tiles that

they would get,” says Edward Carnegy, Abu Dhabi director at consultancy Savills Middle East. “Institutions,

especially, foreign ones, are wary of inferior titles and now within the investment zones they got the option of

buying freehold [land].”

Farhad Azizi, chief executive of Dubai-based Azizi Developments echoes that sentiment. "It’s important for our

customers,," he says. "They want freehold and they want clear rules like in Dubai, because when all the rules are




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in place it makes it easier for private developers to build and sell the properties. When we build, we build it for the

customers not for ourselves."

Abu Dhabi’s special investment zones include sections of Yas Island, Saadiyat Island and Al Reem Island, among

others.

What does it mean for developers?

Investors can be in two categories: individual property buyers and sub-developers who buy land in a master-

planned development and build their own properties as part of the bigger scheme. Both Mr Carnegy and Walid El

Hindi, chief executive of Abu Dhabi developer Imkan say the amended regulations open up new avenues of

investment for developers as Abu Dhabi offers more options for investable assets.

“This is a really good cause for all developers in the region to celebrate, as it creates a really solid foundation for

Abu Dhabi’s real estate market,” Mr El Hindi says.

“When you look at how the government is working to develop all parts of the economy in Abu Dhabi, not just real

estate, you see how all that connecting of the dots will yield an important tipping point for the city over the next

year-and-a-half or two years, which I believe could propel it into the top five global cities in the world over that

time.”


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Page 56



ABU DHABI'S NEW FOREIGN PROPERTY

OWNERSHIP LAWS A BOON FOR

DEVELOPERS AND INVESTORS Thursday, April 18, 2019

The Abu Dhabi government’s move to change a real estate rule to allow foreigners to own freehold property in

designated zones is a step in the right direction to put the capital’s property market on the global map and a boon

for private developers and investors alike, market analysts and property developers say.

Foreign investors in Abu Dhabi’s real estate market were previously granted leasehold arrangements with a

maximum 99-year time period, but the government on Wednesday amended the rule through a royal decree, a

move aimed at supporting the capital’s real estate market, boosting foreign direct investment and strengthening

its economy.

Until the changes, freehold ownership of property was only allowed for UAE and GCC nationals. Residential units

in special designated investments zones, such as a designated area close to the international airport, will now be

registered under Abu Dhabi’s freehold law, with property ownership deeds issued to buyers of property in the

emirate.

“The modernisation of the real estate law reflects the government vision to support and develop the business

environment in Abu Dhabi, along with the development of investor services and procedures,” Sheikh Mohamed

bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said.

The legal changes will also help to level the playing field between Abu Dhabi and Dubai, where foreigners are

already allowed to buy freehold property in investment zones. The changes were enacted after a government

study to examine the needs of the real estate sector, including meetings with investors, developers and others,

according to the Abu Dhabi Executive Council.

Mounir Haidar, managing director of Jubail Island Investment Company

"The announcement by the Abu Dhabi government to amend the real estate law is a significant step towards

achieving the economic diversification and sustainable development objectives outlined by the UAE Vision 2021

and Abu Dhabi Economic Vision 2030. The change is in keeping with the wide-ranging initiatives of the Tomorrow

2021 reforms – boosting the capital’s business environment and competitiveness.

"In addition to enhancing Abu Dhabi’s strong investment appeal, the amended law will play a key role in

stimulating the real estate market, boosting business opportunities, driving economic growth and will attract

foreign direct investment.”

Farhad Azizi, chief executive of Dubai-based Azizi Developments

"When things [rules] are in black and white it makes it so much more attractive for us, or for that matter, any

other private developer. We are very happy with the way Dubai did it and Abu Dhabi is doing it as well. Dubai has

been ahead in terms of some of the regulations and Abu Dhabi is catching up and they are doing a great job.




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"Now you go anywhere in the world, Dubai and Abu Dhabi are standing out as property markets, while previously

it was only Dubai. Abu Dhabi is certainly picking up and now everybody knows Abu Dhabi and they want to go

there."

Sameh Muhtadi, chief executive of Bloom Holding

“It’s a very encouraging move and will make a tremendous difference in terms of widening market demand.

Historically, property investors in Abu Dhabi have mainly been local [Emiratis], whereas the new law will allow for

greater participation of foreign investors – whether from overseas, or living in the UAE – something that is badly

needed."

“The logical next step will be to see some additions to the existing portfolio of investments zones, which are

currently quite saturated.”

Sameer Barakat, executive director estate management at Provis, a fully owned subsidiary of Aldar Properties

“In a few words, it’s a boost to the economy and encouragement for the investors, especially the foreign investors

to look at Abu Dhabi as potential investment zone for them. The investment zones are basically centralised in the

most prominent development, such as Yas and Saadiyat Islands and known to everyone.

“On the last day of Cityscape we see more people coming to look for their future houses or the plots that they

want to build their homes on. It is an encouraging thing. If you come to Cityscape today, you will see the

difference, although normally it should slow down [being the third day of the event]."

Abu Dhabi is known for its leisure and entertainment facilities globally and “the legislation is putting Abu Dhabi

[further] on the global map and it will encourage the investor to look at the market seriously to invest. The

investors are both sub-developers and individual [property buyers]. Sub-developers will now look into buying

plots and redeveloping them into new smaller developments. All-in-all, it is going to be a boost for the economy

and real estate market of the capital”.

Edward Carnegy, director, head of Abu Dhabi office, Savills Middle East

"It is actually phenomenal [news]. It's a game-changer. It will encourage corporates to come here and build their

headquarters. The cascade from this should be phenomenal.

"You have to remember that Abu Dhabi's objective is to diversify its investments and stimulate its economy and

this is a massive step in the right direction."

"The aim of Executive Council is to make Abu Dhabi more investable and by doing this [enacting freehold

regulation] they did it as foreign investors can own the land. Also, it levels the playing field with Dubai as Dubai

has had freehold for a while".

Lynnette Abad, director of research and data at Property Finder

"This is very promising news for Abu Dhabi as this now puts them on par, real estate investment-wise, with Dubai.

Of course, the devil is in the details. Therefore, we will need to wait for further information regarding the freehold

structure.

“With that said, this is the basis of a maturing market in Abu Dhabi and will create a proper title deed structure for

a property, which in turn should bring transparency to the market when it comes to transaction data. This will

also entice further investment, especially foreign investment to Abu Dhabi."

Kamraan Khan, residential associate at Cavendish Maxwell Abu Dhabi

“We expect these changes [in the property law] to positively impact sentiment as they provide expats and end

users greater security of tenure. This is proof of a continued increase in market maturity, and a willingness of the

legislature to embrace positive regulatory change.




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“How this relates to existing developments remains to be seen, although it may well tempt cautious buyers with a

lower risk appetite back into the market. However, the timing of this announcement could not be better,

considering the current appetite for land plots within investment zones.”


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UAE ECONOMY TO OUTPERFORM MIDDLE

EAST IN 2019 Wednesday, April 17, 2019

The UAE’s economy is expected to strengthen this year, boosted by higher levels of government spending and

increased oil production, propelling the country to outperform the wider region in terms of economic growth in

2019, according to a new report.

Headline economic growth in the UAE will rise to 2.2 per cent from an estimated 1.7 per cent in 2018 – driven by

2.5 per cent growth in real oil gross domestic product, and 2.1 per cent non-oil GDP growth, according to the

latest joint outlook from research firms Oxford Economics and the ICAEW.

“We see an acceleration in the non-oil sector this year due to increased government stimuli, spending on

infrastructure and reforms to cut the cost of doing business, while at the same time, the oil economy has grown

due to rising production,” Mohamed Bardastani, senior Middle East economist at Oxford Economics told The

National in an interview.

The UAE’s forecast oil GDP growth is the fastest for the sector in three years, reflecting ongoing investment by the

country to increase production to mitigate for tightening global oil markets – particularly after the US imposed

sanctions on Iranian oil exports.

However, that higher production could be weighed down by lower oil prices, which are forecast to stay flat for the

year at around $60 per barrel, the report added. However, Brent oil hit a 2019 high above $72 a barrel on

Wednesday, defying expectations and demonstrating firm demand, while global supply remained tight.

Meanwhile, last year, Abu Dhabi’s government announced a Dh50 billion economic stimulus to be rolled out from

this year to boost non-oil GDP growth, and the UAE has implemented reforms to make it easier to do business in

the country, including lowering business registration fees. The UAE’s foreign direct investment rose 41 per cent

year-on-year in 2018, and preparation for Expo 2020 Dubai, which commences next October, is expected to

provide a further boost to the non-oil economy, noted Mr Bardastani.

The UAE’s real estate market remains weak and job creation is modest, he said, with notable declines in

employment in the services sector during the past year. Job creation in this sector declined by 0.5 per cent year-

on-year in the fourth quarter of 2018, according to the UAE Central Bank.

“We also think the real estate sector – which has seen ongoing price declines in the past few years – is unlikely to

recover this year due to high levels of incoming supply and relatively sluggish demand,” Mr Bardastani added.

Still, the UAE is expected to outperform the wider Middle East in terms of economic growth this year, the report

said. Real GDP growth in the Middle East (including the GCC) is projected to slow to 1.3 per cent in 2019, from 1.6

per cent last year.

The GCC is expected to see GDP growth of 2.3 per cent – “marginal” improvement on 2 per cent in 2018. “Despite

a strong drive by the authorities in recent years to diversify their economies, oil continues to play a dominant role,

constituting up to 46 per cent of total GDP,” the report said.

“As such, the renewal of the Opec-plus oil production cuts on December 6, which came after a dramatic drop in oil

prices from $86 per barrel in late October 2018 to $70 per barrel more recently, will limit the oil sector’s

contribution to overall growth.”




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Saudi Arabia’s economy is projected to grow at a stable 2 per cent. In 2019, record budget spending and various

pro-growth government initiatives will ensure faster expansion of non-oil activity, which is expected to be the

primary engine of growth in 2019 as the oil sector slows. The non-oil sector is forecast to grow by 3.1 per cent.

Oman’s 3.3 per cent GDP growth in 2018 is expected to moderate to around 2.9 per cent this year due to muted

1.2 per cent projected growth in the oil sector compared to 4.5 per cent last year, Mr Bardastani told The

National.

2019 is also set to be a challenging year for Bahrain, which has fewer oil resources than its GCC neighbours. In

January, it introduced a 5 per cent VAT.


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ABU DHABI PROPERTY PRICES FALL 3.2%

SINCE END-2018 Friday, April 19, 2019

Abu Dhabi residential property prices have fallen by more than 12 percent, according to consulting firm ValuStrat.

Its latest report for Q1 2019 showed that Abu Dhabi’s residential capital values were 12.2 percent lower than last

year and 3.2 percent than the previous quarter.

Residential rents were also softer, 2.1 percent down over last three months, the report said.

It added that all 10 locations monitored by the ValuStrat Price Index witnessed single-digit quarterly declines in

capital values of less than 5 percent.

Highest quarterly price falls were registered for villas in Al Raha and Hydra Village, 4.3 percent and 4.1 percent

respectively.

On an annual basis, most areas lost 12 percent in capital values but two locations were slightly less affected by

the negative trend - apartments on Saadiyat Island and villas located in Mohamed Bin Zayed City saw declines of

9.3 percent and 7.1 percent respectively.

The rental VPI, which monitors five apartment and five villa locations within Abu Dhabi’s investment zones, stood

at 77.2 points in Q1, declining 22.8 percent since 2016, softening 2.1 percent quarterly and 6.9 percent annually.

Valustrat said Abu Dhabi’s gross yields averaged 7.1 percent, with apartments at 7.4 percent and villas at 6.5

percent.

The average occupancy rate among a sample of 31,073 residential units stood at 77 percent it added.

As far as residential supply was concerned, a total of 4,292 homes were completed during 2018 - 3,365

apartments and 927 villas.

Valustrat said 3,357 apartments and 2,867 villas/townhouses are expected to be delivered during this year.

“Interestingly, as demand for affordable homes grows, asking sales prices for villas in Abu Dhabi saw a slight

uptick of 1 percent when compared to the previous quarter. It remains to be seen if this trend continues over the

coming quarters,” said Haider Tuaima, head of real estate research at ValuStrat.


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RESIDENCES AT MANDARIN ORIENTAL,

MUSCAT UNVEILED Friday, April 19, 2019

Eagle Hills Muscat, a partnership between Eagle Hills Abu Dhabi and Izz International, have unveiled The

Residences at Mandarin Oriental, Muscat.

The Residences at Mandarin Oriental are being introduced for the first time in the region, representing Oman’s

first high-end branded, fully-serviced residences.

The announcement was made by Mohamed Alabbar, chairman of Eagle Hills, during an event that took place at

the Royal Opera House Muscat.

"The Residences at Mandarin Oriental, Muscat are designed to bring a new era of luxury living and serve a

growing market of residential real estate, delivering a select number of exclusive apartments in the capital," a

statement said.

It added that residents will have access to services available at Mandarin Oriental, Muscat and will also benefit

from a range of bespoke resident services.

Alabbar said: “Both the hotel and residences at Mandarin Oriental, Muscat aim to merge the urban vibe and the

relaxed atmosphere of a waterfront sanctuary right in the heart of the vibrant and ever-growing city of Muscat.

With this development, Eagle Hills continues to redefine authentic luxury across its projects by ensuring its

developments blend well with the natural surroundings.”

Situated in a prime beachfront location along the Shatti Al Qurum, The Residences overlook the Oman sea.

Mohammed Abdul Hameed Al Busaidi, CEO of Izz International, added: “We are committed to delivering

excellence and the highest quality of property developments in the sultanate, in line with the country’s

development programs and economic strategies. Mandarin Oriental, Muscat is a pioneering brand and we are

proud to be partnering with Eagle Hills in bringing the concept of luxury branded residence to Oman.”

The residential units on offer include a one-, two-, and three-bedroom luxury apartments and two penthouses

comprising four bedrooms each.

Additional recreational amenities exclusive for residents include a swimming pool with a kids’ pool, a common

residents’ lounge, a multi-purpose room, a children’s play room and games room as well as a private residential

courtyard.


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DUBAI RESIDENTIAL PROPERTY PRICES SAID

TO FALL 12.4% IN PAST YEAR Thursday, April 18, 2019

Residential property values in Dubai have fallen by 12.4 percent on average over the past year, according to real

estate consulting firm ValuStrat.

Its ValuStrat Price Index (VPI) for the first quarter of 2019 also showed that prices dropped by 3.2 percent

compared to the previous quarter.

This downward trend resulted in 27.1 percent citywide capital value loss since the peaks of mid-2014, the report

added.

It noted that all established freehold locations monitored by the VPI witnessed price drops since the last quarter,

ranging from 1.8-5.2 percent.

On an annual basis, five out of 26 locations measured saw single-digit declines, while capital values dropped more

than 16 percent annually for villas located in Jumeirah Islands, apartments in Palm Jumeirah, International City,

Discovery Gardens, Business Bay, and The Greens.

“As capital values softened by an average of 1 percent per month for the last 16 months, a six-month streak in

buying activity has been observed for both off-plan and ready homes,” said Haider Tuaima, head of real estate

research at ValuStrat.

The Q1 2019 residential rental VPI in Dubai stood at 76.5 points, declining 23.5 percent since 2014, and softening

1.9 percent quarterly and 9 percent annually.

ValuStrat said Dubai’s net yields averaged 5.5 percent, with apartments at 5.7 percent and villas at 4.5 percent

while the average residential occupancy rate stood at 88 percent.

As far as residential supply is concerned, the report said last year’s project completions reached 20,364 units

which is equivalent to approximately 45 percent of the initial total projections.

For 2019, expected supply was adjusted downwards to 42,176 apartments and villas. This number is 54 percent

less than the preliminary supply forecast as more delays are expected during the year, mitigating excessive

residential supply concerns.


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DUBAI OFFERS INVESTMENT

OPPORTUNITIES IN MAJOR PUBLIC PARKS Saturday, April 20, 2019

Dubai Municipality has announced several investment opportunities in the emirate's public parks, such as the

event spaces, and the allocation of different areas for restaurants and small shops.

Investors are being sought for Creek Park, Mamzar Smart Park, Mushrif Park, Zabeel Park and Safa Park in

addition to the Quranic Park recently opened by Dubai Municipality in Al Khawaneej at a total cost of about

AED130 million, a statement said.

Dawoud Al Hajri, director general of Dubai Municipality, said: "Dubai Municipality is making significant

contributions by providing a conducive and encouraging environment for foreign and domestic investment."

Najeeb Mohammed Saleh, director of planning department at Dubai Municipality added: "The aim of these

opportunities is to invest approximately 10 percent of the area of each park to implement investment projects to

serve the community and raise the level of happiness of visitors to public parks."

Creek Park, which includes the Dubai Dolphin Centre and the Children's City, received nearly 3.8 million visitors

over the last three years while Mamzar Smart Park offers beach facilities, children's games, chalet rentals and

beach sports courts, as well as swimming pools, a skating arena, and a variety of activities.

Mushrif Park has an international village that provides 13 models for Arab and foreign residences while Zabeel

Park attracted nearly 3.1 million visitors over the past three years.

Safa Park features a mini-garden for women plus cafeterias, mosques, theatre, jogging track and sports ground

service.


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MARRIOTT SAYS TO ADD 3,000 NEW HOTEL

ROOMS IN MIDEAST, AFRICA IN 2019 Saturday, April 20, 2019

Marriott International has announced it expects to add 19 new properties and more than 3,000 rooms to its

Middle East and Africa portfolio in 2019.

The new additions are in line with the company’s expansion plans to add more than 100 new properties and

nearly 26,000 rooms across the region by the end of 2023.

Marriott estimates its development pipeline through 2023 represents up to $8 billion of investment from property

owners and is expected to generate over 20,000 new jobs across the region.

“Our growth across the Middle East and Africa is fuelled by a strong demand for our diverse range of well-

established brands, each offering different attributes that cater to this region’s ever changing and evolving

marketplace,” said Jerome Briet, chief development officer, Middle East & Africa, Marriott International.

“This region continues to present us with opportunities to further grow and enhance our portfolio across new and

established markets. While the majority of our growth will be through new-builds, we are seeing an increasing

number of conversion opportunities, especially in the luxury space.”

Year-to-date, the company said it has opened five new properties in the region and is expected to add 14 more -

bringing its portfolio across the Middle East and Africa to nearly 270 properties and over 60,000 rooms - by the

end of the year.

The company said it is poised to expand its luxury footprint in the region by more than 70 percent by the end of

2023, with more than 25 luxury properties under development.

The growth of Marriott’s premium brands remains steady across the region with more than 30 hotels expected to

be added to the portfolio by the end of 2023.

The company added that select-serve brands will continue their rapid growth trajectory across the Middle East

and Africa with seven new properties opening by the end of this year.


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JEDDAH HOTEL RATES FALL TO 11-YEAR

LOW IN MARCH Friday, April 19, 2019

Average hotel rates in Jeddah slumped to their lowest mark since April 2008 in March, according to analysts STR.

Average daily rates (ADR) fell 17.1 percent compared to the year-earlier period to SR563.89 as a very competitive

marketplace during low season led to hoteliers sacrificing room rate to maintain market share.

STR's preliminary March data for Jeddah also indicated that revenue per available room (RevPAR) fell 14.8 percent

to SR275.21, its lowest for the month since 2007.

Based on daily data from March, Jeddah's hospitality market reported a 7.7 percent increase in supply while

demand jumped by 10.7 percent compared to March 2018.

Occupancy also rose in March by 2.8 percent to 48.8 percent, STR added.


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GLOBAL STEEL DEMAND TO CONTINUE TO

GROW IN 2019 Saturday, April 20, 2019

Global steel demand is expected to continue to grow in 2019 and 2020, but growth rates will moderate in tandem

with a slowing global economy, according to Saeed Gumran Al Remeithi, Chief Executive Officer of Emirates Steel

and Chairman of the World Steel Association’s Economic Committee.

“Uncertainty over the trade environment and volatility in the financial markets has not yet subsided and could

pose downside risks to this forecast,” Al Remeithi said in a statement.

The World Steel Association projects global steel demand will reach 1,735 million tonnes (MT) in 2019, an increase

of 1.3 per cent over 2018. In 2020, it forecasts global steel demand growing by 0.9 per cent to reach 1,752 million

tonnes.

However, in the Middle East region, steel demand is expected to contract by 2.6 per cent to 48.9 million tonnes in

2019, with a minor recovery forecasted in 2020 with demand expected to reach 49.5 MT, a growth of 1.2 per cent.

“In 2019 and 2020 growth is still expected, but in a less favourable economic environment. China’s deceleration, a

slowing global economy, and uncertainty surrounding trade policies and the political situation in many regions

suggest a possible moderation in business confidence and investment,” said Al Remeithi.

“Economic diversification efforts in the GCC continue but fiscal consolidation is still suppressing construction

activities, however, in North Africa the situation looks brighter with Egypt recovering strongly after the structural

reforms of 2017.”

Source: Gulf News

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PROPERTY FUNDS TARGET UAE INDUSTRIAL

ASSETS BEFORE THEY TURN PRICEY Friday, April 19, 2019

A home or an office? Or should it be a warehouse?

More real estate funds active in the UAE are focusing on the third option to counter a soft property market, while

at the same time picking up warehouse and other commercial assets when they are still relatively cheap. The

ENBD Reit (real estate investment trust) definitely will be one of them.

By summer, it expects to have two or even three industrial assets in Dubai to the fund’s portfolio, for which it will

spend between $50 million to $65 million. In a tight market where investors are cautious about every available

cent or fil, that’s quite a substantial sum.

When that happens, ENBD Reit would have picked up its first industrial real estate, which also consist of logistical

facilities and light manufacturing units. So, why this sudden interest in this asset class when it has a $456 million

portfolio made up of offices, residential and small retail outlets?

“Right now, 64 per cent of what we have are office properties and 18 per cent residential,” said Anthony Taylor,

Head of Real Estate at Emirates NBD Asset Management. “What we want to do is start investing in the alternative

space, which is whee industrial comes in.

“In the past year and more, there had been some speculative activity surrounding industrial assets with small

tenants on short leases. And they have felt a bit of pressure with all the additional stock coming to market.

“But what we are looking at are single-tenant assets on long-term leases. Lots more of these properties are

coming around the new Dubai Airport and Expo 2020 site.”

Indeed, the immediate areas surrounding these sites are rated as prime prospects — but Taylor says it’s not just

to do with the buzz of activity heading into the Expo 2020 time frame.

“The Expo is a point of time just around the corner,” he said. “While the infrastructure that has gone up around

the area certainly had a positive impact on property values, it’s not the reason to invest in industrial assets now.

“It’s more about the traction that you will eventually have with the (Al Maktoum International) Airport, which is the

key for businesses wanting to be in that location. The closest we have got to is Dubailand … but that’s going to

change.”

In fact, the wider Jebel Ali area has seen multiple free zones being set up, targeted at industrial, warehousing and

other services. Within the Dubai South master-development itself, there are dedicated clusters for such activities.

What this does is also offer businesses to think beyond the Jebel Ali Free Zone as their future bases in Dubai.

Other developers and funds too are scouting around in the area for commercial real estate possibilities. The CEO

of Dubai Investments, Khalid Bin Kalban, said that the company will shortly announce plans to set up a new and

massive investment park in the UAE, along the lines of what it did in Dubai Investment Park spread over 2,300

hectares. But the market chatter is that Dubai Investments will pick a spot in Dubai itself, somewhere in Jebel Ali,

for its next investment park, and which would provide future boost to commercial/industrial property.




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Taylor sees other reasons for why now could be a good time to pick up these — “What we are seeing now is a

much greater ability to transact in a softer market. As a buyer it’s easier to execute, as there are only a few sellers

with a wait-and-see approach. Definitely, there are more opportunities than we’ve seen before.”

Some of it also has to do with a change in mindsets of master-developers/free zone operators. Industrial assets

tend to be acquired on long-term leasehold, of 50 years and more.

“That makes it slightly less attractive for institutional investors like us, though there are ways to work around it,”

said Taylor. “This comes back to master-community developers entertaining our business strategies.

“The ground leases need to be of a fixed term and contractual in nature. Currently, there are a lot of moving parts

in these ground leases, which leave things open to interpretation and that’s not goo. For institutional investors,

these need to be locked in.

“For example, the leases should only have fixed increases through the term of the contract. And master-

developers cannot decide on open market reviews at various points in time during the agreement. There should

also be fixed contractual rights on renewals and to be determined by both parties.”

What Taylor means is that the free zone operators unilaterally decide to hike lease terms because of demand in

the wider market.

Are they willing to listen? “It’s getting to be more common now,” said Taylor.

In warehousing, Grade A is where demand is

In Dubai, demand for Grade A warehouses remained high through the first quarter, according to Cavendish

Maxwell’s latest update. But this space “remains underserved due to an increased supply in the easier-to-build

Grade B and C spaces,” the report adds. “Overall, flight-to-quality helped to push sales prices and rental rates of

high-quality and well-specified assets up in Q1-19, especially due to the lack of Grade A supply. “

In Abu Dhabi, the government has made the move to allow foreign-owned businesses full freehold rights in

investment zones. This would apply to some of the industrial areas as well, and help draw in more investments

going forward. Developers such as Aldar have in the recent past spoken about getting into building industrial

assets.

Source: Gulf News

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ZONES CORP UNVEILS DH1 BILLION

AUTOMOTIVE CITY IN ABU DHABI Wednesday, April 17, 2019

Zones Corp, an entity owned by Abu Dhabi government, on Wednesday unveiled plans to develop an automotive

city with an investment of Dh1 billion.

The new automotive hub named Rahayel City will be developed in an area spanning 6 million square meters with

phase 1 development is expected to be around 3 million square meters, a top executive told Gulf News at

Cityscape Abu Dhabi.

“Rahayel City will be the largest fully integrated automotive hub in the region. It will have full activities across the

value chain for the automotive industry including accommodation for staff, workshops, showrooms and a training

institute for mechanics and electricians to upgrade their skills,” said Saeed Eisa Al Khyeli, director general of Zones

Corp.

Basic infrastructure of the project would be ready by June for investors to come and set up their businesses in

Rahayel City, he added. The full project is expected to be completed in the first quarter of 2020.

The new hub will offer long-term lease of 50 years for automotive companies with an option to renew for another

50 years. “The new city is being designed to become a destination for people not just to fix their cars but also for

entertainment with automotive theme activities,” he added.

Automotive companies including Sandstorm Automotive Factory, Top Speed Car Tuning, Jernas, MotorX, Monster

Team and Princess Cars, specialising in vehicle manufacturing and tuning, service workshops and maintenance

centers have entered into agreements with Zones Corp to set up their business at the new city, a press statement

by Zones Corp said.

Zones Corp currently oversees 50 square kilometres of developed areas in Abu Dhabi city and Al Ain and has

plans to develop new areas in Al Dhafra.

The organisation’s economic zones include 650 industrial facilities covering a wide range of economic and

business sectors and 28 fully serviced labour cities built according to the international standards.

The Abu Dhabi based entity has an investment portfolio valued at over Dh70 billion, the statement added.

The development comes as Abu Dhabi focuses on boosting investment and diversify its economy away from oil as

low oil prices hurts its economy in the last four years.

A stimulus package of Dh50 billion was announced last year to develop various industries in the emirate.

Source: Gulf News

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WHEN PROPERTY BUYERS IGNORE THE

PREVAILING PESSIMISM Friday, April 19, 2019

Despite rising transactional volumes — turbocharged by post-handover plans and other incentives — the real

question driving any dialogue in UAE’s real estate is whether there is enough demand to meet the supposed

“floodgates of supply”?

Despite new launches, analysts fret about dropping enthusiasm levels among buyers, pointing to a widening gap

between new builds and second-hand sales. The gap becomes wider still when the cost of money is embedded

into new prices.

And despite the fact that second-hand sales tactics are rapidly catching up, developers have a key tactic — the

down payment, which secondary market players have thus far not been able to match. Should they be worried?

Analysts definitely seem to think so, but then again, all analysts know, with King Lear (who was thinking of his

daughters), how sharper than a serpent’s tooth it is to have a thankless reader. The problem, one of many, with

this argument is that in most communities throughout the world, the second-hand process trades at a discount to

new builds.

In suburban London, the discount is as much as 25 per cent; in Los Angeles, it is even higher. When we look at

luxury communities, every standard of measurement goes awry, as there is no mechanism to measure prices that

are in the eyes of the beholder. Price variance could exceed fourfold for houses that are literally next to each

other.

Payment plans have added another layer of mathematical complexity to the pricing. In most markets, purchase

prices would not include the cost of the mortgage. Over time, prices rose by more than the cost of the mortgage

on average, allowing for capital gains all around and for default rates to be low.

When this was violated (most notably in 2008), banks were rescued. Then the process of credit expansion started

all over again and house prices started rising. But these were the pre “fintech” days, where developers were not

financing customers as a way of revitalising demand.

Whatever regulatory concerns that may have been expressed, the fact remains that volumes have risen steadily,

and buyer depth has increased, allowing for urbanisation to continue in a city that continues to reinvent itself.

Even as experts warn of further price drops, price indices are now starting to show the opposite, and developers,

both big and small, are jumping on the bandwagon.

Despite the liquidity issues, there appears to be plenty in the ecosystem to continue construction. And even as

analysts warn of falling demand and reduced earnings, equity prices are moving higher. It appears as If there is an

endearing disregard for common sense here.

This is not to say that we need to be sanguine. Clearly challenges remain, with both liquidity and profitability,

especially for smaller developers and contractors. But the obvious question remains: with so much pessimism

being openly expressed, who is actually buying?

More to the point, why is it that they are continuing to buy when all the experts continue to sound alarm bells

about the health of the market? It is one thing to say that there is smart money being allocated by institutional




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money managers. However, statistics indicate that purchasing is becoming even more broad-based, with newer

nationalities entering the marketplace.

Much has been written about how economic narratives get overrun by overt pessimism, and even more has been

written about the misplaced optimism that has been expressed by people such as myself. Rapid urbanisation

throughout the ages has brought along with it periods of anxiety and hand wringing.

Every set of economic challenges require somewhat unique responses and in the so-called information age, the

only variable that travels faster than the speed of light is angst. However, at its core, the role of demand and

supply remains fundamentally the same.

To ignore these base assumptions is to be a stranger to what Diderot called “l’espirit de l’escalier” or the “staircase

wit”. The go-go days of real estate flipping may well have been over for a while, but it is equally clear that market

participants have refused to be inveigled into submission.

Sameer Lakhani is Managing Director of Global Capital Partners.

Source: Gulf News

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INVEST IN THESE UAE AREAS TO SECURE

LONG-TERM VISA IN UAE Sunday, April 21, 2019

The UAE offers plenty of opportunities to foreigners who are willing to invest in real estate sector to secure a long-

term visa following a reform process initiated by the government last year.

Property investors can invest in more than 40 communities across the UAE, mainly in Dubai, to secure a long-term

visa and better returns on their investment. Majority of foreigners prefer to invest their money in residential

properties, but real estate experts suggest that commercial properties can also offer strong returns.

As per the new UAE regulations, property investors can get a five-year residence visa when they invest in a

property worth at least Dh5 million. The ruling applies both to secondary and new properties above Dh5 million

and Dh10 million.

Manika Dhama, head of Strategic Consulting and Research at Cavendish Maxwell, said residential properties in

Dubai, particularly in branded or serviced apartment categories, above Dh5 million offer investment opportunities

for those seeking a long-term visa under new regulations.

"Certain villa or townhouse communities in Abu Dhabi and Northern Emirates like Ras Al Khaimah also offer such

investment opportunities," she added.

Dhama said requirements for these new long-term visa currently state cash-only investments. Therefore, more

clarity is required on how this is applicable to single units or entire buildings, land, etc, she said.

"Bulk residential units in higher yield areas like International City may prove to be a better investment option in

the Dh5 million and above category, particularly for those with a higher risk appetite, than a single villa where

yields tend to hover around 4-5 per cent," said Dhama.

"Indians, Pakistanis and Britons will remain top 3 investors seeking long-term visa through property investment,"

she said while referring to majority of investment in Dubai's property sector coming from India, Pakistan, Britain

and Saudi Arabia.

Leading communities

There are 31 communities across the emirate of Dubai where Dh5 million worth of investment can get a 5-year

visas, according to data provided by Cavendish Maxwell. Al Barari, Al Furjan, Arabian Ranches, Arabian Ranches 2,

Bluewaters Island, Business Bay, City Walk, Culture Village, Damac Hills, Downtown Burj Khalifa, Dubai Harbour,

Dubai Marina and Dubai Science Park (DuBiotech), are included among those communities.

Other areas where investors can invest for long-term visas are: Dubai Sports City, Emirates Living, Jumeirah Beach

Residence, Jumeirah Gold Estates, Jumeirah Islands, JLT, Jumeirah Park, Living Legends, Meydan City, Mohammed

bin Rashid City, Motor City, Palm Jumeirah, Pearl Jumeirah, Dubai Creek Harbour, The Villa, Zabeel (WTC

Residence), World Islands and Jumeirah Bay Island.

While the eight communities in Abu Dhabi for long-term visa are Saadiyat Island, Nurai Island, Al Reem Island,

Marina Village, Al Raha Gold Gardens and other communities in Al Raha area including Al Zeina, Al Manara and Al

Bandar.




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Taimur Khan, head of research for Middle East at Knight Frank, said majority of the properties above Dh5 million

price range are villa properties in locations such as Emirates Hills, The Palm Jumeirah, Emirates Living among

others. In addition, there are also a number of luxury apartments which are available in Dubai's established prime

area such as Downtown Dubai and Palm Jumeirah. "We are also seeing new offerings come to the market in

Dubai Marina, Bluewaters, Jumeirah and City Walk."

In Abu Dhabi, majority of residential properties above Dh5 million are villas on Saadiyat Island while some prime

apartments are available above this price point on Saadiyat Island, Yas Island and Al Raha Beach.

"Whilst there are other locations where properties above this value are available, the aforementioned locations

are where non-GCC national are able to buy property," he said. He noted that investors' focus will be on

properties which are not only of great quality but are also part of a community.

Restoring confidence

Fadi Nwilati, CEO, Kaizen Asset Management Services, stated that the UAE's long-term visa strategy has reinforced

confidence among expatriates and given a greater feeling of permanence in the UAE.

"We have seen a direct impact on foreign investment increase outside of the GCC, especially from India and

Pakistan. As an organisation, we have in particular discussed this topic with business owners, since business

owners have started expressing interest to buy rather than rent properties. There is a lot of excitement in the

market, but it is far too early to see tangible results. We are looking forward to seeing the tangible impact in the

next three years," Nwilati said.

"There are currently around 5,500 properties valued at over Dh5 million on the listing portals. Residential

investors can look at areas like Arabian Ranches 2, Dubai Hills, District One, Tilal Al Ghaf, Al Barari and Palm

Jumeirah. On the higher end, investors can look at Palm Jumeirah, Emirates Hills, Royal Atlantis residences and

Opera District to name a few," Nwilati added.

Jake Wright, investment director, Smart Crowd, believes that the long-term visas will provide individuals greater

comfort around their mid- to long-term future, allowing them to better plan their lives within the emirate.

"Working on a two- to three-year visa may deter people from making key life decisions i.e. shall I buy a property to

live in, shall I invest some of my savings or even smaller purchases such as furniture etc. All of which a key factors

in creating a thriving economy," said Wright.

Commenting on commercial properties, Andrew Love, partner and head of Commercial and Investment Agency at

Cavendish Maxwell, said prime office assets in areas of Dubai like Downtown, Internet City or JLT, with good

tenants and long-term leases, may generate a yield of up to seven per cent. Certain multi-let industrial and

logistics assets in areas like DIP might provide 10-11 per cent in returns.

"Often, these investments start at Dh12 million, with typical transaction values between Dh50 million and Dh100

million," Love said. He said other commercial assets like retail community malls may generate 8-12 per cent, with

investments ranging from Dh15 million to Dh200 million. Labour accommodations often offer the best returns,

more than 15 per cent, but also carry the most investor risk due to high tenant turnover and cyclical rents.


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TRADE, CONNECTIVITY MAKE

MILLIONAIRES FLOCK TO DUBAI Friday, April 19, 2019

Approximately 2,000 HNWIs, each with at least $1 million worth of net assets, moved into the UAE in 2018.

To prioritise its residents' and citizens' happiness is part of the UAE's policies, making it a global hub for

businesses, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler

of Dubai, sought to make Dubai and the UAE a land of opportunities and a magnet for investments, he further

commented in the context of a new report that shows that Dubai as a major beneficiary of changing global wealth

trends in 2018.

The 'Global Wealth Migration Report' for 2019, developed recently by AfrAsia Bank and New World Wealth, said

that Dubai attracted over 1,000 millionaires from outside the country, surpassing major cities like Los Angeles,

Melbourne, Miami, New York, San Francisco and Sydney.

The report described Dubai as the most prominent financial centre in the Middle East, and one of the safest cities

as well as a popular destination for High-Net-Worth-Individuals (HNWIs). Approximately 2,000 HNWIs, each with at

least $1 million worth of net assets, moved into the UAE in 2018. The number of affluent migrants in the UAE rose

by two per cent in 2018, compared to the previous year, according to the report.

The report reviewed the major factors that led to HNWIs moving outside their country to find a home that meets

their needs. Key elements driving their relocation included security and safety, high standards of living, better

education and healthcare.

Sultan Ali Rashed Lootah, chairman and managing director, co-founder, Relam Investment, said: "The ease of

business doing and favourable policies encourages businesses to not only invest in Dubai, but also to make it

their main and premium location for their operations."

Vijay Valecha, chief market analyst, Century Financial, said: "Millionaires flock to Dubai due to a range of

exceptional business incentives, robust foreign trade and international connectivity. This primarily being

supported by a zero-tax environment and a low rate of tax for financial and oil companies."

Dubai attracted over 16 million tourists in 2018 and has the ambitious target of welcoming 25 million tourists by

2025. Dubai International Airport (DXB) has retained its position as the world's busiest airport with the number of

travellers passing through its terminals hitting nearly 90 million last year, up by one per cent from the previous

year.

Krishnan Ramachandran, CEO of Barjeel Geojit, said: "The unique advantage of Dubai is its diversity and its ability

to satisfy the financial needs and requirements of investors from all over the world. Dubai offers a state of art

infrastructure which includes a wide range of iconic business, lifestyle and leisure choices for investors to choose

from."


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IMF CUTS GLOBAL GROWTH FORECAST,

SEES UAE GROWING IN 2019-20 Friday, April 19, 2019

The International Monetary Fund (IMF) on Tuesday revised down the growth forecast for the UAE and the global

economy, blaming China's declining growth, increased trade tension between the US and China and euro

economy losing more momentum than expected.

In its latest World Economic Outlook, the IMF predicted that the UAE's real GDP grew 1.7 per cent in 2018 but the

growth will pick up to 2.8 per cent in 2019 and 3.3 per cent in 2020. This prediction is lower than its October 2018

forecast when IMF had projected 2.9 per cent growth for 2018 and 3.7 per cent for 2019. It predicted 3.1 per cent

inflation for 2018 but it will decline to 2.1 per cent for 2019 and 2020 mainly due to drop in rentals and property

prices.

For the Mena region, IMF sees 1.4 per cent growth in 2018 but it will slightly decline by 0.1 percentage point in

2019 but recover strongly in 2020 to 3.2 per cent.

Globally, IMF cut growth by 0.1 percentage point to 3.6 per cent for 2018 from its October 2018 World Economic

Outlook due to weakness in the second-half of the year. It predicted 3.3 per cent growth for 2019 before returning

to 3.6 per cent in 2020, slashing growth by 0.4 percentage point and 0.1 percentage point, respectively.

"The current forecast envisages that global growth will level off in the first half of 2019 and firm up after that. The

pickup in the second half of 2019 is predicated on an ongoing buildup of stimulus in China, recent improvements

in global financial markets, the waning of some temporary drags on growth in the euro area, and a gradual

stabilisation of conditions in stressed emerging market economies, including Argentina and Turkey," IMF said.

In January 2019, IMF had cut global growth forecast to 3.5 per cent for 2019 and 3.6 per cent for 2020. In October

2018, the IMF had cut its global growth forecasts also due to increased trade tariffs between China and the US,

making it the third downturn revision in the last six months.

In October 2018, the IMF had hiked the UAE's growth forecast for 2018 and 2019 on the back of higher oil prices,

continued reforms to promote the private sector and increased government spending. With oil production and

government spending set to rise, overall growth of UAE was projected to strengthen to 2.9 per cent in 2018 and

3.7 per cent in 2019.

IMF sees improved momentum for emerging and developing counties will continue into 2020 but activity in

advanced economies is projected to continue to slow gradually as the impact of US fiscal stimulus fades.

"Beyond 2020, global growth is set to plateau at about 3.6 per cent over the medium term, sustained by the

increase in the relative size of economies, such as those of China and India, which are projected to have robust

growth by comparison to slower-growing advanced and emerging market economies, even though Chinese

growth will eventually moderate," Gita Gopinath, chief economist at IMF, said.

Regionally, IMF predicts that the baseline outlook for emerging Asia remains favourable, while subdued

commodity prices and civil strife or conflict in some cases, contribute to subdued medium-term prospects for

Latin America; the Middle East, North Africa, and Pakistan region; and parts of sub-Saharan Africa.




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IMF noted that the balance of risks to the global outlook are tilted towards downside but if US-China trade

differences are resolved quickly, it could surprise global growth favourably due to improved business confidence

and better investor sentiment.


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REAL ESTATE INVESTMENTS AMONGST

UAE-BASED FILIPINOS CLIMB TO ALL-TIME

HIGHS Sunday, April 14, 2019

An increasing number of Filipinos in the UAE are starting to value the need for savings and investments through

real estate, with industry leaders welcoming as high as 20 per cent year-on-year increase in sales of their

properties amongst Filipino buyers in the UAE.

The Philippine property market is expected to achieve double-digit growth this year, with real estate values seen

scaling all-time highs across all sectors, according to a report from Leechiu Property Consultants.

Manuel Arbues II, regional head for North America and the Middle East, Ayala Land International Sales Inc (Alisi)

said: "We have registered an average yearly sales growth of almost 20 per cent from the UAE for the past five

years. For the most part, we attribute this growth to the increase in financial awareness amongst overseas

Filipinos in the UAE. Likewise, due to many opportunities opening up for overseas Filipinos, they are in a better

position to prepare for their future and real estate investment is their top choice."

"Alisi's year-on-year rise in revenue was boosted by the bullish economic growth of the Philippines, backed by

several factors such as high remittances from Overseas Filipinos, thriving business process outsourcing industry,

sustained growth in the tourism industry, as well as local consumer spending, and manufacturing that are

keeping the GDP growth and employment rate afloat," Arbues added.

The Philippine government's 'Build. Build. Build program', President Duterte administration's medium-term goal

to effectively usher in the Golden Age of infrastructure in the Philippines by raising the infrastructure spending

from 5.4 per cent of the country's GDP in 2017 to 7.3 per cent by the end of 2022, supports leasing and selling

opportunities in real estate investment particularly in growth centres near the subway stations in Quezon City,

Bonifacio Global City and Taguig City. A growing number of UAE-based Filipinos are taking advantage of investing

in the Philippines because of this.

"Ayala Land is supporting this growth through its new estates including the Vertis North in Quezon City, Circuit in

Makati City, and Arca South in Taguig City where its brands Ayala Land Premier, Alveo, and Avida are present,

offering top choices in real estate investment," Arbues said.

Real estate companies are taking advantage of these windfall in terms of overseas Filipinos who eye to purchase

properties in the Philippines. This is also the trend observed by the organisers of Philippine Property and

Investment Exhibition (PPIE), the largest Philippine property and investment event in the region which will be back

in April 26-27, 2019.

Dr. Karen Remo, co-founder and managing director of New Perspective Media Group, organiser of PPIE, said: "We

attribute this new exciting trend to the persistency of various stakeholders in educating overseas Filipinos in the

UAE to wisely invest their hard-earned money. PPIE has been promoting the investment culture amongst Filipinos

since 2014. The growing demand for real estate and properties in the Philippines amongst overseas Filipinos,

particularly in the Middle East, is a significant driver that sustains the robust real estate sector in the Philippines."





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7,418 LICENCES ISSUED IN DUBAI IN 2019 Thursday, April 18, 2019

The number of licences issued to new businesses registered in Dubai rose three per cent since December 2018.

The total number of licences issued from the start of 2019 to April 15 reached 7,418. The number of licences

issued, as documented by the Department of Economic Development in Dubai, rose steadily from 252,580 to

260,998 during the first half of April, according to statistics from the National Economic Registry, a branch of the

Ministry of Economy.

An earlier report by the Dubai Economic Registration and Licencing Sector highlighted the fact that the number of

new licences issued in January 2019 totalled 2,046, which covered various types of businesses, rising by 20 per

cent compared to January 2018.

The new licences issued in January included commercial licences, which accounted for 64.5 per cent, while

professional licences accounted for 33.7 per cent, tourism licences for 1.2 per cent, and industrial licences for 0.6

per cent. The registry also documented a significant growth in the number of limited liability companies that had

applied for licences, which numbered 177,136 by the end of the first half of April, rising by 3,823 compared to

173,313 licences at the end of 2018.

This rise in the number is not exclusive to limited liability companies, according to the registry's statistics, which

also highlighted an increase in the number of licences issued to individual companies by 3,040 since the start of

2019, bringing the total number to 76,311 by the end of the first half of April 2019.


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NON-OIL SECTOR KEY GROWTH DRIVER

FOR UAE, GCC Wednesday, April 17, 2019

The UAE and Gulf economies are expected to strengthen this year, helped by elevated levels of government

spending, Dh50-billion stimulus plans, reform measures for ease doing of business in the UAE and higher oil

production, said a new study released on Wednesday.

The Institute of Chartered Accountants in England and Wales' (ICAEW) Economic Insight for Q1 2019 sees the

UAE's GDP to grow 2.2 per cent this year as compared to 1.9 per cent last year. But the real estate sector will

remain weak and job creation to be modest.

"Both the oil and non-oil sectors are expected to be supportive of growth this year. The oil sector, which makes up

around 30 per cent of GDP, is expected to grow by 2.5 per cent, while the non-oil sector is set to accelerate from

an estimated 1.3 per cent in 2018 to 2.1 per cent in 2019," said Michael Armstrong, director for the Middle East,

Africa and South Asia (MEASA), at ICAEW.

According to the UAE Central Bank's quarterly, the UAE's GDP will expand 3.5 per cent in 2019 compared to 2.8

per cent in 2018, mainly due to a Dh50 billion stimulus package announced last year and host of measures taken

for the ease of doing business in each emirate across the country.

The apex bank sees non-oil GDP growth will grow at 3.4 per cent in 2019 against 2.6 per cent last year while oil

GDP will expand at 3.7 per cent this year versus 3 per cent.

"We expect large-scale projects in preparation for Expo 2020 and new visa rules to continue boosting tourist

arrivals in UAE, helping Dubai to maintain its status as a major global tourist and FDI destination," said Michael

Armstrong.

The report expects GCC to post economic growth of 2.3 per cent in 2019, a marginal improvement on the

previous year of 0.3 percentage points.

GCC growth engine

In the GCC region, the non-oil sector in the GCC is expected to be the primary engine of growth in 2019, which is

as 3.1 per cent, said ICAEW's Economic Insight report.

"This should be supported by higher government spending, notably in the UAE and Saudi Arabia, continued

reforms and project spending like Qatar's 2022 World Cup and the UAE's Expo 2020, as well as stimulus plans

geared to support the private sector," the report said.

ICAEW sees 2.3 per cent GDP growth for the Gulf region for 2019 as compared to 2.0 per cent for 2018.

It noted that the GCC economy will be weighed down by renewed Opec-plus oil production cuts and lower oil

prices, with the main source of growth coming from the non-oil sector.

The oil sector will also be dampened by lower prices, forecast at $64 a barrel in 2019, down by $7 a barrel from

the average in 2018. The oil price trajectory suggests many GCC countries will struggle to balance their budgets in

2019, as the price needed to cover their expenses is well above the current forecast, notably in Bahrain and Saudi

Arabia, which need average oil prices of $110 a barrel and $78 per barrel, respectively in 2019.





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UAE JOB GROWTH PICKS UP Wednesday, April 17, 2019

In 2018, the Ministry of Human Resources and Emiratisation created 20,225 jobs for Emirati citizens compared to

6,862 the previous year.

The UAE has witnessed a strong start to the year in terms of growth in the number of online job postings

As companies across the UAE prepare their workforce for a future that will increasingly be impacted by the

technologies of the Fourth Industrial Revolution, experts have noted that investments in human capital will

continue to grow, with the UAE continuing to lead the Middle East region.

The dedication to investing in talent and new technologies has also had a positive impact on job creation. Latest

Monster Employment Index (MEI) showed that the UAE registered a 42 per cent year-on-year growth in online job

postings in the first quarter of 2019 — the highest growth in the region. The Emirate has long been recognised as

an attractive hub for both entrepreneurs and international investors, and the Business Registration and Licensing

section at the Department of Economic Development in Dubai has disclosed that 2,459 new licences were issued

in March alone and generated an additional 9,661 jobs in the UAE.

Dr Abdul Rahman Al Manan Al Awar, director-general of the Federal Authority for Government Human Resources

(FAHR), noted that keeping up with the rapid technological developments of the Fourth Industrial Revolution has

been a major challenge for many of the world's governments and institutions.

"We are indeed very fortunate in the UAE, as our wise leadership has given special attention to the rapid

technological development and its importance since its emergence. It has also utilised this technology in the

development of organisations and work cultures. Similarly, the UAE has invested a lot in upgrading the skills of

individuals and talents while at the same time keeping a close watch on the latest developments and changes

taking place in the job market. Owing to these factors, the UAE's job market currently serves as an ideal model for

investment in human resources," he said.

Dr Abdul Salam Al Madani, chairman, Index Holding, added: "The UAE, in line with the vision of our wise

leadership, has undertaken significant efforts towards the development, advancement and upgradation of skills

of HR professionals as well as state entities and institutions in the industry that best serves our collective goals

and aspirations through many new strategies and initiatives such as providing a supportive and stable work

environment and offering decent living standards for everyone."

The results of the Michael Page Middle East Job Market Survey for first quarter of 2019 also painted a rosy picture

of the ME job market. It found that 64 per cent of ME professionals are positive about the current job market

situation, while 80 per cent feel that the future job market situation will get better in the next six months. In

addition, 72 per cent of ME professionals said that they would like to ideally live and work in the Middle East for

more than five years.

Leith Ramsay, managing director at Michael Page Middle East, noted that there is more talent on the ground

committing their careers and long term future to the region than ever before, which is why a tax free salary is no

longer enough to attract and retain the best people. "Whereas previously a salary increase when changing

employers was expected to be around 10-15 per cent - sometimes more in certain sectors - candidates are now

wanting more detail about career development plans and organisation culture, which also includes an approach

to maintaining a flexible work environment."

Speaking on how the UAE has witnessed a strong start to the year in terms of the remarkable growth in the

overall number of online job postings, Abhijeet Mukherjee, chief executive officer of Monster.com, APAC & Middle




Page 84



East region, noted that the growth is a direct result of the efforts to position the UAE as a global business hub and

integrate more UAE citizens in the workforce.

"The government has put in place plans to make the private sector more appealing for national talent, including

the consolidation of the public sector and private sector holidays; and with the recently announced plans to

create 30,000 more jobs for Emiratis in the private sector this year, the recruitment market will be further

stimulated. Such initiatives are a great way to ensure sustainable growth in the economy which is a key objective

for the UAE. With these developments, there are exciting times ahead, especially for local talent in the UAE private

sector."

In 2018, the Ministry of Human Resources and Emiratisation created 20,225 jobs for Emirati citizens compared to

6,862 the previous year, in line with the National Employment Agenda and Emiratisation Acceleration programs.

Several organisations in the private sector have also played a pivotal role in Emiratization efforts by organising

career fairs aimed at UAE nationals and offering exclusive career development programmes.


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MAJOR INFRASTRUCTURE PROJECTS TO BE

FINISHED IN SHARJAH SOON Saturday, April 20, 2019

Private security infrastructure, worth Dh18.6 million, and a Dh98-million deportation prison in Sharjah are also

slated for a 2019 completion.

A series of massive infrastructure projects - including new roads, government buildings and police headquarters -

is set to be completed this year, a Cabinet official has announced.

Dr Abdullah bin Mohammed Balheif Al Nuaimi, Minister of Infrastructure Development, recently revealed that a

number of the ministry's key projects are nearing completion. The Dh112.5-million construction of the Sharjah

General Naturalisation and Residency building, for example, is expected to be finished by the third quarter.

Private security infrastructure, worth Dh18.6 million, and a Dh98-million deportation prison in Sharjah are also

slated for a 2019 completion.

In a previous interview, Dr Al Nuaimi said the Sharjah Police headquarters is currently being built at a cost of

Dh167 million. This project covers multiple buildings, including the main one, another for services and one for

recruitment. There will also be a mosque and a number of guard houses in the vicinity.

Besides these key Sharjah developments, more federal roads are also in the pipeline. The minister revealed that

since 2013, there has been a 19-per-cent increase in the total length of federal roads across the country, reaching

771.5km in 2018.

By the end of this year, on-going constructions - worth Dh170 million - on the stretch of Malihah road from the

Sheikh Khalifa Street (E99) are expected to be completed, further improving the accessibility between East Coast

cities. Dr Al Nuaimi said the road upgrade is bound to cut the inter-city travel time by 35 per cent.

2020 projects

While this year is packed with several project completions, more are set to be inaugurated in 2020, including two

key federal road projects that will be finished around the first quarter.

One is the Dh200-million Hamad Bin Abdullah Al Fujairah Road, and another is the first phase of the Dh49.4-

million Ittihad road development.

PROJECTS TO BE COMPLETED THIS YEAR

>Sharjah General Naturalisation and Residency building:

Dh112.5 million

>Private security infrastructure: Dh18.6 million

>Deportation prison in Sharjah: Dh98 million

>Malihah road upgrade:

Dh170 million

COMING UP IN 2020

>Hamad Bin Abdullah Al Fujairah Road: Dh200 million




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>Ittihad road development (first phase): Dh49.4 million


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Page 87



With over 30 years of Middle East experience, Asteco’s

Valuation & Advisory Services Team brings together a

group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property sales

division with representatives based in UAE, Saudi

Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

BUILDING CONSULTANCY

The Building Consultancy Team at Asteco have a

wealth of experience supporting their Clients

throughout all stages of the built asset lifecycle. Each

of the team’s highly trained Surveyors have an in-

depth knowledge of construction technology, building

pathology and effective project management methods

which enable us to provide our Clients with a

Comprehensive Building Consultancy Service.

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