Week 18 - asteco.com · real estate news uae / gcc / mena saudi's tourism industry could take 45%...

Week 18 SUNDAY, 03 MAY 2020

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

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REAL ESTATE NEWS

UAE / GCC / MENA

SAUDI'S TOURISM INDUSTRY COULD TAKE 45% HIT DUE TO COVID-19

ONE-THIRD OF UAE RESIDENTS EXPECT PROPERTY PRICES TO INCREASE OR REMAIN

THE SAME

YARDI PROPTECH SOLUTIONS UNDERPIN REAL ESTATE’S RESILIENCY

UAE’S PRIVATE SECTOR MUST BE THE FOCUS THIS TIME

CONTRACTORS INCUR EXTRA COSTS AND FACE DELAYS DUE TO COVID-19

UAE SECOND-STRONGEST FINANCIALLY IN ARAB WORLD'S EMERGING ECONOMIES

UAE’S ONLINE RETAIL HAS SOME GROWING UP TO DO

DUBAI

PROPERTY PORTAL BAYUT'S PARENT COMPANY SECURES $150M INVESTMENT

DUBAI'S PROPERTY MARKET EXPECTED TO RECOVER IN 2021 ON THE BACK OF EXPO

2020

ENBD REIT TO REPOSITION ITS PORTFOLIO BY FOCUSING ON 'ALTERNATIVE' ASSETS

EMAAR PROPERTIES CHAIRMAN SAYS RECOVERY FROM CORONAVIRUS CRISIS LIKELY

BY MID-2021

COVID-19: OUTLOOK ON THE UAE REAL ESTATE MARKET

HOUSING IN LOCKDOWN: BUYING AND SELLING PROPERTY DURING COVID-19

DUBAI LIKELY TO START OPENING FOR TOURISTS AT BEGINNING OF JULY, SAYS

TOURISM CHIEF

DUBAI'S REAL ESTATE MARKET DEFIES COVID-19 ODDS

UAE FIGHTS CORONAVIRUS: SEVEN TIDES LAUNCHES SUPPORT MEASURES FOR

TENANTS

'COVID-19 WILL NOT DETER INVESTOR CONFIDENCE'

CITYSCAPE GLOBAL TO BE HELD IN NOVEMBER

SWITZERLAND CONFIRMS PARTICIPATION IN POSTPONED EXPO 2020 DUBAI







NORTHERN EMIRATES

HOMEFRONT: 'I'VE LOST MY JOB, SO CAN MY LANDLORD CHARGE A PENALTY FOR

MOVING OUT EARLY?'







UAE SECOND-STRONGEST FINANCIALLY IN

ARAB WORLD'S EMERGING ECONOMIES Saturday, May 02, 2020

Ranking globally up because of strong drive towards reforms, anchoring many initiatives to enhance

competitiveness

The UAE has been ranked second in the Arab world and among the top 20 financially-strong emerging economies

globally, according to The Economist's analysis of 66 countries.

The report measures financial strength of countries based on their public and foreign debts, cost of borrowing

and reserve cover. The UAE is rated high on low cost of borrowing, followed by low public debt and reserve cover

and foreign debt.

The latest data by the International Institute of Finance showed that the debt held by the UAE's households, non-

financial corporates, government and financial sector inched up in the fourth quarter of 2019 compared the

previous quarter. But it was still among the lowest in emerging markets.

The UAE's strong $1.16 trillion sovereign wealth reserves - the highest in the region - also provide a key role in its

financial stability and cushion to its economy from any external shocks. Moody's Investors Service has said that

the UAE and other Gulf countries holding strong sovereign wealth funds are better positioned to absorb the

external shocks.

Anurag Chaturvedi, managing partner at Chartered House Tax Consultancy, said the UAE improved its ranking

globally because of its strong drive towards reforms have anchored many initiatives to enhance competitiveness

including the institutional framework, infrastructure, macroeconomic stability and ICT use.

"The UAE's financial system has proven to favour SMEs by providing liquidity to grow across the globe. It ranked

ahead of India, Malaysia and other reason because of its sound fiscal policies, which kept the fiscal deficit in

control since 2008, adopting global norms to control expenditure, attract FDI to boost economy, various stimulus

packages supporting SME growth though incubation and increasing the federal reserve while controlling the

inflation on basic necessities," he said.

Regionally, Saudi Arabia tops with the eighth ranking followed by the UAE (17th), Kuwait (22nd), Qatar (35th),

Oman (58th) and Bahrain (63rd) among the 66 emerging economies.

Globally, Botswana, Taiwan, South Korea, Peru, Russia, the Philippines, Thailand, Saudi Arabia, Bangladesh and

China are the top 10 economies who have low public and foreign debts, strong reserve cover and low cost of

borrowing. The bottom-ranked countries are Venezuela, Lebanon, Zambia, Bahrain, Angola, Sri Lanka, Tunisia,

Mongolia, Oman and Argentina.

Source: Khaleej Times

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'COVID-19 WILL NOT DETER INVESTOR

CONFIDENCE' Saturday, May 02, 2020

Dubai economy is resilient and well balanced in terms of diverse growth points to deal with worldwide economic

slowdown.

Dubai has emerged as an international hub for businesses by attracting global investors who believe in the

emirate's diversified economy, prudent economic policies and proactive judicial system, an industry veteran said.

Shailesh Dash, an entrepreneur, financier and founder of various successive businesses, said the Dubai economy

is resilient and well balanced in terms of diverse growth points to deal with worldwide economic slowdown in the

wake of the coronavirus outbreak.

"The UAE and Dubai have emerged very rapidly as one of the most important economic and financial hubs in the

entire Middle East with global recognition. I give credit to its visionary leaders who have led the UAE to be among

the top 5 countries in the world to live and do business," the award-winning entrepreneur told Khaleej Times.

Dubai a business hub

Dash, who launched a successful business in the period immediately after the global financial crisis of 2008, urged

the government not to compromise over the business-friendly environment which it developed over a period of

time.

"Dubai is no longer seen as a transient economy as businesses have taken root and human capital has followed

the business and family-friendly environment that the UAE offers. It is the sole reason why our business has

grown rapidly in various spheres," he said.

Referring to the success of his business ventures, he said these companies have contributed to developing

healthcare, education and logistics businesses in the UAE and Gulf region in the past 10 years. Today, these firms

employ nearly 4,000 employees and contribute directly to the regional economies and its social infrastructure.

"As an investment and asset management firm we were able to market the UAE as an investment-friendly

destination and raised more than $500 million from around the world to invest mostly in the UAE and GCC

countries," he said.

Retain investor confidence

Dash, who is member of several boards, said Dubai has one of the best competitive economies in the world, but it

needs to revisit the role of corporate regulators to safeguard the interests of businesses to retain investor

confidence in the system.

He said the regulators should engage more with the stakeholders to ensure compliance over the rules. Penalising

minor issues, while within their rights, will demoralise businesses and hurt investor confidence in Dubai economy,

he said.

Al Masah Capital probe

With reference to the investigation by Dubai Financial Services Authority (DFSA) of Al Masah Capital Management

Limited and also of its parent company Al Masah Capital Limited, he said the businesses had all the relevant

checks and balances which are appropriate for compliance and that Al Masah Capital has complied with all

regulations and is cooperating with the authorities. He stated that in fact it was open to the DFSA to require the







company to make changes if they felt that business was not conducted in accordance with the approvals. Even

now, the business have not been shut down which indicates that they are not a detriment to DIFC or its users.

"My faith in the market and the progressive vision of the leaders of this nation remains unqualified and I do not

waiver from this position. I see this situation as a setback to me and it indicates that sometimes at a delegated

level the officials may lose sight of the big picture," he added.

We believe in compliance

Dash said he is determined to continue to invest in the UAE market despite all the challenges that caused some

inconvenience to the progressive growth chart of the business.

"I am an entrepreneur who believes in the UAE and Dubai and will keep on working to the promotion of the UAE

and Gulf as a business hub. I will continue onshore investment in the UAE as I have full faith in the Securities and

Commodities Authority," he said.

"We operate in a highly regulated environment not just in the UAE or Dubai but also globally in other mature

jurisdictions. I have no doubt in my mind that I will continue to serve the needs of the UAE as an investment

destination and my sole objective is to provide value to my stakeholders," he said.


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DUBAI'S REAL ESTATE MARKET DEFIES

COVID-19 ODDS Wednesday, April 29, 2020

The spillover effect from 2019 has resulted in a higher completion rate of property projects in Dubai this year,

with over 20,000 units having been completed in the first four months of 2020 despite a slowdown in new project

launches.

In addition, work on construction projects is also continuing at a steady pace as the sector has been exempted

from the restriction of coronavirus, resulting in most of the projects going ahead with deliveries.

However, analysts believe that this pace may not be sustainable in coming months as developers could go slow

on their projects due to the Covid-19 uncertainty and a one-year delay in Expo 2020 Dubai.

More than 15,000 apartments were completed and the top areas were Business Bay, Town Square, Downtown

Dubai, Dubai Sports City and Dubai Production City. Over 3,800 villas/townhouses were completed and the top

five communities were Akoya, Dubai South, Damac Hills, Akoya Oxygen and Hatta. Over 1,000 serviced

apartments were also completed during the January-April period, according to Property Finder's latest data

released on Wednesday.

This is compared to 15,060 total units completed in the January-April 2019 period, it added.

Prathyusha Gurrapu, head of research and advisory at Core, said due to ongoing Covid-19 restrictions, future

handover volumes are expected to come down as construction timelines and supply chains are impacted along

with softened demand.

"Further downward revisions are expected on supply forecasts as they will inherently depend on the period of the

pandemic and the pace at which complete functionality returns coupled with buyer confidence as developers

adjust to ongoing market conditions," said Gurrapu.







"In line with Expo 2020, many projects were planned for delivery this year. However, I believe not all of them will

be delivered on schedule. We have just started Q2 of this year and in my opinion it's a bit early to judge and

compare anticipated deliveries for this year with that of 2019. There are many reasons why any project can get

delayed; it could be a result of financial slowdown our logistical handicap. Whether we like it or not, the pandemic

has created financial as well as logistical crisis which will impact the deliveries schedule for this year," said Atif

Rahman, director and partner at Danube Properties.

He noted that some developers might be struggling because of the challenges faced at sites and in the delivery of

materials due to a global lockdown, while some might have lost interest in the project due to the economic

slowdown; the challenges could vary from developer to developer and site to site.

"Despite the challenges, this is the best time to focus on completing the existing and ongoing projects. We plan to

deliver 1,488 units across three projects - Glamz, Miraclz and Bayz - in 2020, with a combined sales value

exceeding Dh1.12 billion," he added.

Rahman believes that supply will get curtailed, which should in turn help real estate rent and sale prices. "Add to

that lower or negligible new project launches this year; all of this put together will only benefit the real estate

industry in the long run. I am extremely confident and bullish about the future of Dubai real estate."

Farhad Azizi, CEO of Azizi Developments, said Dubai's property market will get more time to adjust its supply and

demand situation and developers have the opportunity to complete projects in time for the Expo. Moreover, the

excitement in the buildup for Expo will remain for another year, boosting anticipation and demand.

"We are working around the clock to complete our projects, especially now, at a time when a comfortable home is

more important than ever before. While we have taken several precautions and we will continue to develop our

projects at an accelerated pace," said Azizi.


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UAE FIGHTS CORONAVIRUS: SEVEN TIDES

LAUNCHES SUPPORT MEASURES FOR

TENANTS Monday, April 27, 2020

Residential and hospitality property developer, Seven Tides, on Monday announced that it has introduced a series

of initiatives to support its commercial, retail and residential tenants, leasing space in its Ibn Battuta Gate

development and its 10 properties within Discovery Gardens.

Residential tenants in the developer's 10 buildings in Discovery Gardens have been offered lease extensions,

payment deferrals, and easier monthly installments to those unfortunate to have lost their job and had their

salary reduced. Seven Tides has also announced that it is waiving termination penalties for tenants that wish to

terminate their leases early as a result of a job termination. The developer also announced that all tenants have

been made aware of the support measures and the various channels through which they can contact the

developer.

Retail tenants in the developer's projects in Discovery Gardens will also benefit from the initiative. Restaurants

who are restricted to deliveries only have been offered a two-month rent free period for April and May, when they

will only have to pay basic service charges to cover utility and other fixed costs required for their operation.

Salons, beauty parlours, gyms and the like, which may have been forced to shut down, will have no rent or service

charges to pay during the two-month period.

"Nobody needs to be told that these are extraordinary times and as a responsible landlord we have a care of duty

for our tenants, especially those facing financial hardship, due the COVID-19 outbreak," said Abdulla bin Sulayem,

CEO of Seven Tides. "Although the social restrictions need to be implemented by the government to make sure

that we all remain safe and that we contain the spread of the virus, it is only natural to have empathy with those

who are facing hardship. But that only counts if it results in something tangible."

"Therefore, we have designed these support packages to try and alleviate as much as possible, not only the

financial impact, but also the emotional stress that people are having to contend with, brought on by isolation

and exacerbated by thoughts of an uncertain future," added bin Sulayem.

In the Ibn Battuta Gate development which consists of residential apartments, offices, retail outlets and the five-

star Movenpick Hotel, all tenants suffering hardship are being supported by Seven Tides. Residential tenants have

been offered the same support as tenants in Discovery Gardens, while office and retail tenants, have received a

rent-free period of two months in April and May including service charges.

"What makes this situation all the more frustrating and for some rather depressing, is that we don't know exactly

when life will return to normal, yet we know for certain that life will return to normal. If we remain patient,

practice social distancing and stay positive, we will get through this crisis together by supporting one another,"

said bin Sulayem.


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HOUSING IN LOCKDOWN: BUYING AND

SELLING PROPERTY DURING COVID-19 Monday, April 27, 2020

Even during the best of times, the property market can be a stressful experience. Seasoned investors, first-time

buyers, those looking to lease their property, and for many in Dubai, those looking to rent a new apartment, are

often put off by the fear of the unknown.

And this was before the impact of Covid-19. The global health pandemic is forcing everybody to try and adapt to a

new reality, that is evolving daily. Safety has to be the priority for all right now, but we have to remember that

these strange times will pass.

Over the last few weeks, more and more people have had to adapt by working from home. For many, their homes

have become an office, a nursery, a school, cinema and library as well as occasionally offering some space to rest

one's head. Our living space has never seemed so important.

Recent transactional data suggests that to date, up to 50 per cent of buyers are non-residents which underscores

the fact that a large proportion of the UAE's residential community has not yet directly invested in the property

market. However, many do recognise the long-term benefits of getting onto the property ladder and while people

are working from home, we're also seeing an upswing in traffic as people are researching the market that much

more.

Before the coronavirus brought our day to day lives to an abrupt, but hopefully temporary, halt, mortgage lenders

were very positive. As part of the most recent stimulus package, the CBUAE also announced an increase by five

percentage points, the loan-to-value (LTV) ratios applicable on mortgages for first-time homebuyers, ensuring that

houses are affordable without associated inherent risks.

Market and consumer confidence is generally, on an upward swing and the long term economic indicators are

positive. Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, recently announced a growth of two

per cent in the private sector in Q4 2019. This is the highest growth in the last seven quarters, with 38,765 net new

jobs created. Obviously, in the immediate term, these figures may drop off slightly as businesses readjust but

long-term, the signs are good.

With this positive economic growth, the real estate sector has responded. Estimates for 2020 expect the delivery

of circa. 50,000 units and critically, the units have a primary focus on the new areas of Dubai such as Dubai South,

Dubailand and Mohammed bin Rashid City. The market has adapted and matured, recognising the need to offer

the growing population properties that are able to fit every budget.

For those looking to sell, the current climate offers a unique opportunity to re-evaluate how they are approaching

their sales. We launched our service in 2016 to give investors the ability to maintain total control of their sales

process. Through HOD.CO, clients can market, manage and sell their property - all on their own terms. We give

them marketing support, market intelligence and information they need to take an active role in as much of the

transaction as they feel comfortable with.

We've seen that people want to take more control of their property transactions. For sellers and landlords, they

know their properties better than anyone else. With the support of our legal, marketing and sales experts, they

can get the best out of their transactions. Similarly for prospective buyers and renters, this current period offers

up real opportunities to re-evaluate their needs.







A separate space to work may have seemed a luxury six months ago but increasingly, we're seeing how people

are changing their priorities. The extra time that people have on their hands is offering a unique opportunity to

really research the market in-depth and make these critical decisions with even more valuable information to

hand.

Martin Altmann is the commercial director for HOD.CO. Views expressed are his own and do not reflect the

newspaper's policy.


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COVID-19: OUTLOOK ON THE UAE REAL

ESTATE MARKET Monday, April 27, 2020

The outbreak of Covid-19 is adding to the strain on Dubai's already weak real estate market.

The emirate has been struggling with oversupply in most segments but notably in residential and hotel sectors for

about three years. Property markets in the Gulf Cooperation Council, as in most of the world, are now hit by travel

and other mobility restrictions imposed by governments to contain the spread of the new coronavirus, alongside

low consumer and business sentiment. S&P Global Ratings acknowledges a high degree of uncertainty about the

rate of spread and peak of the coronavirus outbreak.

Some government authorities estimate the pandemic will peak between June and August, and we are using this

assumption in assessing the economic and credit implications. We believe measures to contain Covid-19 have

pushed the global economy into recession and could cause a surge of defaults among nonfinancial corporate

borrowers. As the situation evolves, we will update our assumptions and estimates accordingly. Oversupply

across Dubai's real estate sector is amplified by tightening financial conditions, which significantly complicates our

impact analysis.

We now expect the fall in residential prices will be steeper than we previously expected, with adverse trends

lingering well into 2021. The current supply-demand imbalance in Dubai's real estate market has been

exacerbated by the effects of the Covid-19 pandemic. We also expect negative employment trends across some

key sectors such as tourism and retail, as well as for certain small and midsize enterprises, which could weigh on

demand for new properties. Given the global pressures, we also expect to see international demand for property

in Dubai to be subdued.

In 2019, more than 35,000 residential units were completed, the highest number delivered in a single year in

Dubai. Based on developers' announced completion dates, 2020 is likely to be another record year for deliveries,

adding to supply. We believe real estate prices are approaching levels seen at the bottom of the last cycle in 2010,

and are even lower on an inflation-adjusted basis and considering sales incentives for off-plan property. While

reported Covid-19 infection rates are not relatively high in United Arab Emirates (UAE), Dubai may at some stage

see widespread temporary closures of business, similar to that in other regions, or work stoppages, including at

construction sites, which could lead to delays in future residential property deliveries.

This would increase working capital funding gaps for developers, including Emaar Properties and Damac Real

Estate. We also expect developers' EBITDA margins to contract significantly given that prices may be lower on new

sales and that companies may offer discounts to existing customers. However, given the negative macroeconomic

backdrop, we might also see higher delinquencies in customer payments than observed historically.

Due to tightened travel restrictions, hotel occupancies will plummet for the next few months. Some hotels have

closed temporarily, and we think there may be more closures in due course. Malls have been mandated to close

for two weeks for now, except supermarkets and pharmacies. Restaurants have been asked to cater only to home

deliveries. This would significantly affect the variable portion of real estate landlords' revenues.

Dubai-based government related real estate companies have announced a relief package designed to partly

alleviate the burdens of businesses or individuals within their ecosystem that have been affected by the outbreak

of the new coronavirus. We anticipate private retail real estate companies such as Majid Al Futtaim and Emaar

Malls may also have to grant a rent freeze to allow tenants to manage their businesses, as is the case in other







regions. Similar measures might also be extended by office real estate landlords, such as DIFC Investments, to

support businesses that aren't operating at their usual capacities.

Although the severity of the impact on Dubai's real estate sector depends on the duration of the Covid-19

outbreak and the extent of government measures, it's clear there will be some downside. This is mainly because

of the emirate's reliance on travel and tourism activity, which provides thousands of jobs in the economy. What is

also uncertain at the moment is whether the World Expo 2020, due to be hosted by Dubai later this year, can

shore up market sentiment or lead to meaningful recovery.

Sapna Jagtiani is the associate director of Corporate and Real Estate Ratings at S&P Global Ratings. Views

expressed are her own and do not reflect the newspaper's policy.


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UAE’S ONLINE RETAIL HAS SOME GROWING

UP TO DO Thursday, April 30, 2020

By now, I have scheduled deliveries until the end of 2020. This is not entirely my fault, though. I have been home

since March 24, the day I was supposed to visit Cleveland Clinic in Abu Dhabi for a doctor’s appointment and to

collect my medications.

The appointment took place over the phone, and my medications were delivered to where I am staying in Dubai.

Three weeks later, I sent a message to my doctor to inquire if I should still come for my monthly shot. She

deferred the shot for six weeks.

With my health being taken care of while staying at home, I had all the time in the world to focus my attention

elsewhere. I hence started ordering all sorts of things online, from sports outfits to mosquito killers. Those have

been delivered ridiculously on schedule as the online retail infrastructure has always been there.

I unfortunately cannot say the same about online grocery shopping.

I tried every app out there to order groceries... without any luck. There is always something off, either while

placing the order or pre-delivery. In one case, I somehow managed to get a time slot for the first grocery delivery

ever during my homestay.

After that, however, I could never get a time slot using the same application. And so, I switched to another.

Progressively worse

That was an utter disaster. I got excited seeing all the available time slots, placing six orders to be delivered on

different days based on what is needed and when. I received one out of the six deliveries. What is even worse

than the inadequacy of the delivery service is the fact that they charge you for every placed order, with no

updates to reflect the delay in delivery.

Moreover, trying to contact them by phone was a complete waste of time, and so was trying to email them. I then

tried contacting them on Twitter, after which they sent me what seemed to be a generic response they send to

everyone trying to contact them.

Now, because it would have been days, if not weeks, between placing the order and delivering it, there is always

something wrong with the order whenever it is delivered. That is, there will most probably be items that are

missing, for which the money will be refunded if charged already.

Otherwise, and if not charged yet, the missing items could be replaced with close enough substitutes. COVID-19

has managed to single-handedly blur the distinction between one mainstream soda drink and the other - but not

the disappointment.

Logistics mismatch

My assumption here is that the inventory tracking system is not integrated with the online grocery shopping

system, with orders and inventories being checked against one another manually when an order is being fulfilled.

This explains the missing items and the close enough substitutes.

To summarise the issue, the online shopping infrastructure for those local and international grocery chains is

primitive. Although this could be because most of us would rather buy groceries in person, it is mainly due to the







fact that those chains did not foresee the importance of an appropriate online shopping infrastructure. This is

despite the fact that the whole world has been heading in that direction for years.

Yet, to be fair, no one predicted the spread of COVID-19, except for Bill Gates five years ago. Online retail,

nonetheless, has been around since forever. Furthermore, the infrastructure for online retail, which has literally

allowed an entire shopping mall to go online, should be more than adequate to support online grocery shopping

with live inventory checks and updates.

Online retail, previously just an add-on option, has now become a vital lifeline for businesses to survive.

The last thought that I want to leave you with: Is there a correlation between the adequacy of online retail

infrastructure in a country and its ability to slowdown the spread of COVID-19 within its borders?

- Abdulnasser Alshaali is a UAE based economist.

Source: Gulf News

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YARDI PROPTECH SOLUTIONS UNDERPIN

REAL ESTATE’S RESILIENCY Tuesday, April 28, 2020

Rapid advances in technology continue to reshape how the real estate industry operates, and how quickly one

adapts to change is critical for success. Yardi Systems (Yardi®), which designs, develops and supports software

solutions for real estate owners and managers, continues to see growth in the adoption of its digital platforms by

clients wishing to improve their business models and respond to challenges.

Catering to nearly every real estate vertical, Yardi has also now expanded its support resources for clients with

free webinars and other online resources. While digitisation has been a steady movement in real estate, its

adoption has only really accelerated in these recent weeks with every segment of the industry having to cope with

work-from-home regulations not just in the UAE, but around the world.

Contactless property management enabled by RENTCafé

A tool that has become extremely valuable due to current events is Yardi’s RENTCafé app for residential real

estate. With more than six million residential units using the app, RENTCafé benefits tenants at various levels: it

helps to check the unit listings or available inventory in the market, facilitates online application and encourages

tenant self-service.

“A tenant can log on to the app and search for properties, shortlist the units they like and do a 360-degree viewing

of the property, similar to a walk-through,” explains Aditya Shah, head of operations, Middle East at Yardi. “When

they decide on a unit, they can submit an online application and then subsequently the property management

firm can generate a lease contract. The entire process is contactless and this has helped our customers greatly

during the stay-home period.”

Catering to nearly every real estate vertical, Yardi has also now expanded its support resources for clients with

free webinars and other online resourcesImage Credit: Supplied

Available on Apple and Android mobile devices, the RENTCafé app also has tenant self-service features whereby a

tenant can use the app for paying fees, service charges, and other utilities.

Improved vendor management facilitated by VendorCafé

Yardi’s VendorCafé has also picked up demand. A one-stop shop for vendor management, VendorCafé centralises

product and service vendor information in a single system of record, with a 360-degree view of vendors and

property associations. Optimised for better results with online vendor management, VendorCafé is part of the

Yardi Procure to Pay Suite.

The app can send maintenance requests from tenants straight to the vendor. “The flow of operations is quite

smooth in this case where tenants can submit their maintenance requests on the RENTCafé app, which are then

sent to the call centre back office,” says Shah. “The call centre reviews the requests and forwards it to the vendor,

who is the FM service provider. The vendor picks up the request on his VendorCafé app and then schedules a

meeting with the tenant to address the problem.”

The app also facilitates tenant requests for major repair. “The landlord can then raise the purchase order, and the

vendor can raise his invoice entirely through the app,” says Shah.







Introduced in 2016, both the RENTCafé and VendorCafé apps provide complete contactless interactions to help in

seamless operations. For property managers and the landlords, Yardi also offers personalised dashboards where

landlords have full access to their portfolio of properties and performance indicators and insights.

“The feedback from our clients for all these apps has been extremely positive,” says Shah. “We are in the process

of introducing the process whereby tenants can also do their tenancy renewals online and this will be operational

in the next four to six weeks.”

Social responsibility

Along with its proactive efforts to support the proptech needs of real estate stakeholders, Yardi has also

committed $2 million (Dh7.34 million) in support of various non-profit global initiatives. The amount, which is on

top of Yardi’s regular contributions to philanthropic organisations, will go to food banks and non-profits assisting

those in need during this pandemic.

“Our team is navigating the Covid-19 crisis with the same philosophy that has guided us for more than three

decades: take care of our clients, our employees and our communities. We are confident that all of us will unite to

subdue Covid-19, and we’ll emerge from this challenge stronger than ever,” said Anant Yardi, the company’s

president and founder.

Source: Gulf News

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UAE’S PRIVATE SECTOR MUST BE THE

FOCUS THIS TIME Tuesday, April 28, 2020

There is no shame in a recession. As country after country has resorted to lockdown measures, it has done so at

an exorbitant economic cost.

These costs (which have only just begun to accrue) have been met with stimulus measures, that by most

estimates will equal more than 15-20 per cent of world GDP (which is comparable to, if not higher, than costs

incurred during World War 2) and have come in the form of debt issuance.

As academics debate the effects of such programmes, the key question remains what will happen to private

investment on the other side? Will it revive, and overcome the deflationary impact of the shutdown. Or will this

usher in a new Great Depression for our times?

Picking up private sector’s slack

For economies like the UAE, which rely on the “vents of surplus” from other countries, there is no escaping the

fact that its fate remains fundamentally intertwined to that of developed and developing economies. On the one

hand, given reduced global savings, it is likely that there will be a period of subdued growth as private sector

investment recalibrates to newer sectors such as tech and biotech.

When this is dialled up, the scenarios that emerge are painful, with a wave of bankruptcies in the SME sector and

infrastructure costs that will have to adjust lower to be sustainable. Curiously enough, these statistical “models”

predicted Armageddon for the UAE in 2008-09 as well.

We know that calling for an economic collapse is a mug’s game (which is why so many indulge in it), and yet

history shows that the country emerged stronger as targeted stimulus packages had their intended effect. This

time the hole is much bigger, but then again so has been the response.

Focus on the small

These are still early days, but what we do know is that stimulus packages work if they allow the private sector to

do what it does best, which is to shape the future. The playbook from the last crisis led to renewed risk taking; this

time around, the same animal spirits need to be restored, and specifically be targeted at the SME sectors that

have suffered the brunt of the lockdown.

The critic in the room argues for conservative framework, seeking out well-capitalised companies; but no SME is

well-capitalised. The riskier companies are the ones that need saving the most, for it was not speculation, but

rather government fiat that shuttered the doors. Rather than now providing just deferments on loan repayments

(which in most cases will not be sufficient), the proactive approach would be to nurture these sectors, such that

they can get back on their feet again.

For this to happen, spigots need to opened up, but only then can the vicious downward spiral of defaults and

distress be averted.

Give private sector some room

Every crisis necessitates a bailout, and the reality is that not everyone gets it, regardless of need. But here is what

we already know: the playbook of the past was an infrastructure one, and for the most part, that play is now over.







If the economy is to pivot such that it can capitalise on the superior infrastructure in place, then the “put option”

that needs to be in place is for the private sector to get the necessary breathing space that it needs.

To be sure, some of this is already transpiring, but the bigger goal is this phase shift leap of faith in the private

sector that the government can provide for the capital generation engine to start up again. The principle of

“parsimony” normally arrives when the business cycle turns south, but never before has that inflection point

occurred due to government mandate.

It is this principle that needs to be fought, even if it implies that the central bank and/or other government

agencies take direct equity stakes in these businesses.

Normality at different speeds

As we look to press “Play” in terms of restarting the economy, the best bet is for everything to return to normal.

The reality is that this normal will come at different times for different sectors. In parts of Europe and Asia, where

stores have opened, sales have been brisk.

But for the most part, sectors will open at a staggered rate, which means that there will inevitably be business

failures. If the goal is to minimise the pain for businesses that committed no folly, then the only recipe that

remains is the leap of faith that government regulators (both fiscal and monetary) will need to take for businesses

to function in a “risk on” manner again.

The private sector rests on curiously uneven foundations to be sure, which makes the task more challenging. But

for a country that has always stood as an example of risk taking and openness, it appears as if this is the only

option.

Source: Gulf News

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ENBD REIT TO REPOSITION ITS PORTFOLIO

BY FOCUSING ON 'ALTERNATIVE' ASSETS Tuesday, April 28, 2020

ENBD Reit, a publicly-traded real estate investment trust managed by ENBD Asset Management, is to reposition

its portfolio by “increasing the diversity of its holdings”.

The Reit, whose recent proposal to delist from Nasdaq Dubai did not secure the required approval from the

three-quarters of shareholders, said that in the short-term it will focus on “agile solutions” allowing it to maintain

healthy levels of occupancy during the Covid-19 pandemic. In the longer term, it will reposition its portfolio

towards “alternative” assets in sectors such as logistics/warehousing and healthcare that offer longer lease

agreements and more stable income streams.

“Our priorities this year and next will be to continue to build on diversity in the portfolio – thereby de-risking our

position in the context of the market – while taking advantage of lower interest rates to bring down costs,”

Anthony Taylor, head of real estate at Emirates NBD Asset Management, said in a statement.

ENBD Reit posted a net loss of $13.3m (Dh61.04m) for the nine months to December 31, 2019 on property

income of $26.9m, which was mainly due to a $21m unrealised loss on the value of its portfolio.

ENBD Asset Management proposed a take-private of the Reit in January as its shares continue to trade at a

discount of more than 50 per cent of its net asset value, which was $0.98 per share, or $246m at the end of last

year.

“Our portfolio came under pressure during 2019 as a result of soft real estate market conditions, and in the short-

term these conditions have been exaggerated by the Covid-19 pandemic and a return to low and volatile oil

prices. We do, however, remain agile and well-positioned to navigate headwinds and are engaging with tenants

across the portfolio with the intention to assist those in genuine financial difficulty,” said Mr Taylor.

“We recognise that a gradual uptick in the real estate market cycle is probably delayed, but we have the diversity

and the resilience in our portfolio to maintain occupancy and rental income, with sufficient cashflow to maintain

dividend payments to shareholders.”

Source: The National

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PROPERTY PORTAL BAYUT'S PARENT

COMPANY SECURES $150M INVESTMENT Tuesday, April 28, 2020

Emerging Markets Property Group (EMPG), the parent company of Dubai's property portal Bayut, secured $150m

(Dh550m) in new investment in a deal that values the company at $1 billion.

The investment round was led by Netherlands-based OLX Group, which will combine its Middle East, North Africa

and South Asia businesses with Dubai-headquartered EMPG, the companies said in a statement.

“This deal puts us one step further in our journey towards providing solutions in multiple markets to over a billion

consumers around the world, expanding our classifieds offering significantly," said Imran Ali Khan, EMPG’s chief

executive.

In addition to Bayut in the UAE, Saudi Arabia and Jordan, EMPG owns and operates property portal Zameen in

Pakistan, Bproperty in Bangladesh, Mubawab in North Africa and Kaidee in Thailand.

Founded in 2015, EMPG has grown at a “tremendous pace”, said Mr Khan, adding, “Our unique ability to scale

using our proprietary tech has aided and enabled this expansion”.

As part of the deal, OLX will combine its operations in four countries – Egypt, Lebanon, Pakistan and the UAE –

with EMPG and will become its largest single shareholder, owning 39 per cent of the shares.

“As EMPG’s largest shareholder, the company will have a front seat to explore how we can scale their services

model further," said Martin Scheepbouwer, chief executive of OLX Group.

“Our brands are household names … and currently help tens of millions of people to exchange goods and services

every month. The next phase is exciting, with EMPG’s real estate industry expertise helping deepen the customer

experience.”

OLX Group owns stakes in at least 16 other online classifieds start-ups including US-based Letgo and Egypt's

Storia. It is a subsidiary of Naspers, a South Africa-based investor that acquired Dubai’s Dubizzle outright in April

2019 in a deal that valued the business at $409.5m.

EMPG will use the new capital to develop a range of services, creating a more seamless user experience,

enhancing data transparency and expanding market intelligence for both consumers and business users, it said in

a statement.

In Egypt and Lebanon, EMPG will operate the existing OLX platforms, rolling out new services for the real estate

community. In Pakistan and the UAE, both groups’ platforms will be operated by EMPG. It will also operate

Naspers' Dubizzle brand.

The aggregated value of properties sold in these markets is "estimated at $90bn, providing a commission pool for

real estate agencies of $2bn per annum", EMPG said.

This presents an opportunity for EMPG to enhance real estate services in these markets, it added.


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CONTRACTORS INCUR EXTRA COSTS AND

FACE DELAYS DUE TO COVID-19 Monday, April 27, 2020

Contractors are facing delays and additional costs in completing ongoing work and are concerned about their

ability to mitigate some of the risks they are facing as a result of the Covid-19 outbreak.

Although construction in the UAE has been deemed a vital industry during the lockdown, allowing work on sites to

progress, contractors have told The National they are facing additional time and cost pressures.

This is not just an issue confined to the UAE alone. Last week Moody's Investors Service said projects globally "will

face increased operating difficulties during the coronavirus outbreak associated with staff absences, reduced

supply of materials and more onerous workplace practices".

Some project companies and their clients "are discussing temporary relaxations of parts of the performance

regime or payment mechanism, or both", the ratings agency said.

“We are seeing clients suspend projects – we have had several projects suspended. We have had some clients say,

‘we’re not suspending but we’d be really happy if you guys slowed down’, and we have other clients who are

outright telling us, ‘where you were going to bill us $100 this month ... we want you now to make sure you are

going to cap this at $50’,” says Bishoy Azmy, chief executive of Dubai-based Al Shafar General Contracting.

However, in terms of making up the additional costs incurred, “neither of us has broached the topic”, Mr Azmy

says.

“We’re all recognising that this is quite a global thing. It’s not anybody’s fault. It’s not like the client defaulted, or I

defaulted.

Bishoy Samy Edward, chief executive of Dhabi Contracting, says his company is continuing to work around the

clock “with my full force” of about 10,000 workers.

“I’m paying salaries for these people and they need to work so they can get paid – the same for me,” he says.

“I cannot afford putting 2,000 people idle in the camps and pay them nothing. There’s no law saying you can put

people in camps and pay them no money. It would be a big problem,” he says.

Contractors have taken precautions to prevent the spread of the disease. Rules have been introduced, such as

limiting the number of workers travelling on buses to and from sites. Typically, buses carry about 60 workers but

this has been limited to 20.

“Either I make more trips, which will cost me more, or I just get more buses and transfer everyone at the same

time. This is what I am doing because I have a huge fleet of buses. However [that] means more fuel [and] more

drivers’ salaries,” Mr Edward says.

He has written to clients detailing the extra costs being incurred and requesting their support. He also said social

distancing can be impractical on some sites, especially in city centres where footprints are tight and rest areas are

small.

The UAE Construction Industry Think Tank, a body co-ordinated by lender Mashreq and industry title MEED, this

month called for the introduction of standardised contracts.







A white paper produced by the organisation says contracts are currently written by project owners, meaning the

majority of risk in the delivery is borne by the contractor.

The introduction of a standardised construction contract tailored for the UAE could benefit the $710 billion (Dh2.6

trillion) pipeline of projects that are planned or underway by restricting bad behaviour and reducing disputes, the

paper states.

“We’re all recognising that this is quite a global thing. It’s not anybody’s fault," says Bishoy Azy, chief executive of Al

Shafar General Contracting. Jeffrey E Biteng / The National

The additional pressures contractors are facing as a result of Covid-19 has brought this matter to a head,

Mashreq Bank’s global head of contracting finance, Mohammad Khader Al Shouli, says.

“I believe there will be a lot of requirements for time extensions, variations and delays without penalties. If that

doesn’t really materialise or there is no collaboration on it, I think people will resort to those specific paragraphs

in their contracts where force majeure is mentioned,” he says.

Force majeure is a concept in most countries with a civil law code, including the UAE, which will be incorporated in

most “construction contracts of any sophistication”, explains Thomas Wilson, a partner at law firm Squire Patton

Boggs. In general, it covers an event that “prevents the contractor’s performance of its obligations”.

“Contractual force majeure clauses may cover circumstances such as Covid-19,” says Nesreen Osman, a

construction advisory and disputes partner at law firm Pinsent Masons. “Generally, these clauses can excuse a

party from its delays but may not allow it to recover additional costs.”

Other contract provisions could help with cost recovery, though, Mr Wilson says.

“In civil law jurisdictions, including the UAE, the law includes provisions for exceptional public circumstances

causing performance of a contract not to be impossible but to be extremely burdensome financially. In which

case courts or arbitration tribunals can adjust the burdens to the parties to a more reasonable [level]. That’s an

interesting provision of the law that will be used when the dust settles, but it is not going to be applicable in all

respects and it is not a panacea,” he said.

“Generally, these clauses can excuse a party from its delays but may not allow it to recover additional costs.”

Nesreen Osman, partner, Pinsent Masons

One measure that should be avoided, according to Mr Al Shouli, is the withdrawal of performance bonds, which

are sums contractors have to provide at the outset of a contract that typically serve as open-ended guarantees.

“Those instruments need to be now tackled with caution and with care,” he says. “Today, you cannot use them to

pressure a contractor or to agree to certain changes or discounts that you used to do in the past because it puts

so much pressure on the system, and on the contractor. I believe that a lot of contractors will not be able to

survive [withdrawal of bonds].”

The heads of three major Abu Dhabi government branches - the Department of Economic Development, the

Department of Municipalities and Transport and the Department for Culture and Tourism – held meetings with

business owners and investors in a number of industries to discuss the impact of Covid-19, including the

contracting sector. They heard concerns from contractors about the importance of keeping funding flowing to

projects and calls for regulatory consistency, the departments said in a statement on Sunday.

"The challenges faced by the contracting sector and their companies in these circumstances makes us more

adamant to increase our cooperation and efforts with all strategic partners concerned to reach immediate and

more effective solutions and presenting proposals for quick and more impactful measures that revitalise the

sector in the short term, while contributing to enhancing investor confidence in the national economy in the long

run,” said the Department of Economic Development's chairman, Mohammed Al Shorafa.







Mashreq's Mr Al Shouli says the lender is continuing to extend support to contractors in terms of financing

projects that face cashflow disruption and pointed out that in some instances – especially for many government-

related projects – payments are being accelerated.

“We used to get within 60 days of certification, now we are getting within 20 days of certification."

However, he says non-essential spend – for acquisitions, or anything not related to projects – is being

discouraged.

One of the most pressing issues for contractors currently is repatriating workers whose contracts have ended,

given that some countries have temporarily closed borders even for returning nationals, and flights are

unavailable.

“Now, a lot of our workforce aren’t even able to go home,” ASGC's Mr Azmy said. “If that’s for two weeks, maybe

we can shift them to other sites that are working. If it’s a month maybe we can shift them a little and pay them

some of their paid leave. But if it’s three months, obviously we’re not going to be able to take that huge cost

ourselves and we’re going to be looking for help either from clients or government. We don’t really know.”


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CITYSCAPE GLOBAL TO BE HELD IN

NOVEMBER Sunday, April 26, 2020

The organiser of the Cityscape real estate events has said this year's Cityscape Global exhibition will be held in

November at the Dubai World Trade Centre.

The three-day event will be held from November 15 to 17, organiser Informa Markets said on Sunday.

The global real estate event “is committed to supporting the GCC in re-establishing a ‘back to business’ approach,

delivering a focused event that creates a hub for the real estate sector to network, discuss some of the most

poignant topics, delve into market recovery and discover new real estate opportunities”, Informa Markets said.

Apart from residential projects, the event will also showcase projects within the rapidly growing sectors of

industrial and logistics, commercial, retail and office, as well as proptech and architecture.

Cityscape 2020 will also see the launch of a real estate summit for top tier investors, government, consultants and

developers, according to the statement from the organiser.

Last year, the event was held from September 25 to 27 and saw top developers such as Aldar Properties, Nakheel,

Sobha Group, Rak Properties and Arada participate in the exhibition.

The announcement regarding the show dates comes as another major event Arabian Travel Market was moved to

next year due to the coronavirus outbreak. ATM will now be held in 2021 after Eid celebrations in May.

The overall economy and the real estate market are expected to face strong headwinds in the near term due to

the coronavirus pandemic and low oil prices, consultancy Core recently said in a report.

“While the real impact is impossible to quantify and the recovery timeline unknowable, we are seeing demand

drop drastically as most organisations adjust to social and travel restrictions,” Core said.

Apartment prices in Dubai declined 12 per cent over the 12-month period to the end of March while villa and

townhouse prices were lower by 4 per cent, according to a recent report from Cavendish Maxwell.

However, the stimulus measures introduced by authorities, including fee waivers and improved loan-to-value

ratios for first-time homebuyers are expected to help the real estate sector recover from the current situation,

according to Aditi Gouri, associate partner, strategic consulting and research at Cavendish Maxwell.


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HOMEFRONT: 'I'VE LOST MY JOB, SO CAN

MY LANDLORD CHARGE A PENALTY FOR

MOVING OUT EARLY?' Thursday, April 30, 2020

I lost my job in March due to Covid-19 and gave three months' notice on my apartment, as per Ras al Khaimah's

municipality regulations. I also paid three months of rent and it was accepted by the owner. I have until June 30 to

vacate.

The landlord is holding a Dh1,600 deposit and a Dh16,000 cheque of mine that was postdated for future rent. I

want the cheque and deposit returned when I vacate the property but the management company said they will

only return it when I pay an additional two months' rent, which equates to a penalty of Dh5,333. I don’t have this

money and should not have to pay as it’s not written in the RAK Municipality contract or the management

company's contract. Also, due to Covid-19 circumstances, I've been advised the penalty should not apply.

I spoke with the owner directly earlier this month and he was just as rude as the management company. He

showed no empathy towards my situation and just seemed to want his money. He told me he’s been to court

many times and he is happy to go again as he knows the law.

The landlord then sent me an offer by email but it suited him more than me. The managing agent suggested I

sublet the property, which is illegal, so I will report them officially.

The situation is so draining. I just want to move out, hand the keys back and get my deposit and cheque and go

home. If they cash the cheque and it bounces I will have police issues and problems returning to the country and

they know that.

I know that landlords have been urged to be flexible at this time. I don’t want to go to court and be out of pocket.

It’s all too stressful, so what do you suggest I do? JE, RAK

The perpetual struggle between tenant and landlord is often fractious in normal times. Each party always tries to

gain advantage over the other, however, during this difficult period, it is made more contentious. While you are

right to hope for understanding and leniency, this often does not happen.

The first thing of note is the contract. If, as you say, there is no provision for a penalty for early termination, then it

would be difficult for an owner to enforce this, even if this penalty is normal in other emirates, such as Dubai. Due

to the current situation, you have lost your job and therefore you are not able to fulfil your part of the contract i.e.

pay the rent. This reason could be regarded by a judge as being of a 'force majeure', which refers to a situation

where unforeseeable circumstances prevent someone from fulfilling a contract. This, however, could also be very

complicated to ascertain in law. The fact of the matter is that the management company, presumably requested

by the landlord, is now looking to get compensated by you having to leave early.

Your misfortune of losing your job has now affected your landlord negatively, so requesting a two-month charge

does not seem unreasonable in terms of his loss of rent. Emotions are running high at the moment and you

obviously are entitled to feel like you are being hard done by, given the landlord is insisting on such

compensation, especially as it does not form part of your contract.







In times like these, two parties have to try to find a win-win position, so, as a suggestion and given you have a bit

of time before you need to vacate, I advise you try to find a replacement tenant. Subleasing is not allowed,

however, if the landlord is aware and has agreed to it in writing, it is then perfectly acceptable.

By finding a replacement tenant, the landlord has any loss of rent covered and you will get your deposit and rent

cheque back too. The alternative of just 'digging your heels in' and not moving from either of your positions will

end in litigation for both parties which only serves to lose time and money.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more

than 35 years in London and Dubai

The opinions expressed do not constitute legal advice and are provided for information only. Please send any

questions to [email protected]


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ONE-THIRD OF UAE RESIDENTS EXPECT

PROPERTY PRICES TO INCREASE OR

REMAIN THE SAME Wednesday, April 29, 2020

More than one-third of UAE residents expect property prices to either remain the same or increase in the next six

months despite the impact of Covid-19 on the country’s real estate market, a new study found.

While 28 per cent thought the market would be stable over the next two quarters, six per cent expect the market

to rise. However, 28 per cent of residents expect the market to fall by 5 to 10 per cent over the period, according

to the Home Sentiment Survey from investment and research company Peninsula.

The survey of 2,500 renters, owners and investors across the Mena region was carried out in the last two weeks of

March, before most of the Covid-19 movement restrictions were put in place, in conjunction with Asset

management group Eltizam, commercial real estate and investment company CBRE, Cityscape Intelligence and

real estate consultancy Berkshire Hathaway Gulf Properties.

“Sentiment towards the market is more positive among homeowners than renters,” the study said. “In the past six

to 12 months, homeowners think the value of their homes decreased by around 10 per cent. Whereas, in the next

six months they expect the value of their homes to fall only marginally.

“Sentiment among renters remains stable, with the expectation of a further 5 per cent decline in rents as leases

get renegotiated in the coming six months.”

The total value of real estate transactions in Abu Dhabi increased by 22 per cent to reach Dh19.2 billion in the first

quarter of 2020 despite the "exceptional circumstances" the emirate faces in the battle against Covid-19,

according to data from Abu Dhabi’s Department of Municipalities and Transport released last week.

The high value of the emirate's real estate trading transactions came after precautionary measures to contain the

spread of the coronavirus in the UAE brought economic activity to a temporary halt. However, the restrictions are

now easing with a gradual reopening of key sectors to support local retailers and businesses.

The Peninsula study also included the Peninsula Home Sentiment Index, which showed that overall sentiment

towards the UAE real estate market improved in the first quarter of 2020 - prior to the Covid-19 response

measures - with the index rising from 44 to 47.

"A score of under 50 represents, on balance, more negative than positive sentiment," the study found.

Half of the UAE home owners polled thought the value of their homes had fallen by at least 10 per cent over the

last six to 12 months, while 87 per cent have no intention to sell in the next six months. Only 15 per cent planned

to carry out renovations over the same period.

Meanwhile, more than a quarter of tenants said their rent has fallen by 10 per cent or more in the last six months

and almost a third expect rates to fall between 5 to 10 per cent when their lease comes up for renewal in the next

six months.







Other countries in the region have a more positive outlook for the sector with 48 per cent of those polled in Saudi

Arabia expecting real estate prices to remain the same or rise, compared with 58 per cent in Bahrain and 91 per

cent in Egypt.

The vast majority of tenants in the region also think the rent they pay is fair or good value, with 74 per cent of

renters in the UAE, 62 per cent in Saudi Arabia, 92 per cent in Bahrain and 93 per cent in Egypt sharing this

outlook.


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DUBAI'S PROPERTY MARKET EXPECTED TO

RECOVER IN 2021 ON THE BACK OF EXPO

2020 Thursday, April 30, 2020

Dubai's property market could bounce back strongly in 2021 on the back of increased economic activity related to

Expo 2020, according to the chairman of the UAE's third-biggest listed developer.

Hussain Sajwani also said new property launches in Dubai, the commercial and trading hub of the Middle East,

could come to a halt this year as the Covid-19 pandemic squeezes demand.

“If there is any silver lining in the subject, I don’t think there are going to be any more launches,” Mr Sajwani

told Bloomberg TV in an interview.

The property chief said he expected most of the 2020 and 2021 property launches to stop.

“I think in October 2021, when the expo starts, we could see the market changing in a positive way,” he added.

The governing body responsible for Expo 2020 Dubai provisionally agreed earlier this month to delay the event

for a year to allow time to overcome the challenges posed by the pandemic. It will move the start date of the six-

month event from October this year to October 1, 2021.

Dubai's real estate market has slowed in the wake of a drop in oil prices that began in 2014, as well as ongoing

concerns about an oversupply of properties.

Last year, the emirate formed a higher committee for real estate planning, headed by Deputy Ruler Sheikh

Maktoum bin Mohammed and a number of senior property developers. It aims to balance the supply in Dubai's

property sector through greater collaboration between government-related entities and private sector firms.

Mr Sajwani, who predicted a tough year for the property sector in 2020, also said the market offered good

bargains for potential buyers.

"Today I think it is a great opportunity to buy because products are selling in the secondary market below the

replacement costs," he said. "I see a lot of customers coming and looking for a bargain especially from third world

countries.”

Damac is not cancelling any projects due to the Covid-19 outbreak, he added.

“We are not under any pressures and we are not cancelling a single project,” he said, adding the company has

only started two projects in the last two-and-a-half years.

“We have enough money in the escrow to build the entire projects without any delay," Mr Sajwani said. " We are

focusing on the cash and the collection and we have given some discounts and incentives for people who are

willing to pay. For new sales, we have reduced our prices by 5 to 10 per cent in certain areas, but we are not

reducing more than that.”

Damac Properties reported its first full-year loss for 2019 in nearly a decade as revenue fell 28 per cent.







The company reported a loss of Dh36.9 million for the period ending December 31. The company had reported a

profit of Dh1.15 billion for 2018.

“I think 2020 is going to be difficult and everyone is going to suffer. I think they (the government) are going to put

a lot of plans for 2021 from the expo point of view, increasing tourism and creating more demand and that’s more

important. Supply is not going to happen any more and supply will be halted,” Mr Sajwani said.


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EMAAR PROPERTIES CHAIRMAN SAYS

RECOVERY FROM CORONAVIRUS CRISIS

LIKELY BY MID-2021 Saturday, May 02, 2020

Dubai's retail sector will see a gradual recovery from the impact of the coronavirus crisis by the middle of 2021 as

it carefully emerges from a lockdown that disrupted tourism,the chairman of Emaar Properties, the emirate's

largest listed developer, said after the re-opening of Dubai Mall.

Dubai, compared to other global cities, will rebound from the crisis in "better shape" thanks to the size of the

commercial hub and its lack of dependence on oil, Mohamed Alabbar, the developer behind mega shopping

center Dubai Mall, told CNN in an interview.

"I don't see a V-shape," he said when asked about a timeline for a recovery based on data from businesses such

as Dubai Mall and Noon.com. "I expect that we really have to go gradually, moving upward towards the end of the

year, if there’s no major outbreak there, then probably into end the of the first quarter next year to mid-next year

maybe we’re back to normal."

Dubai, a regional tourism and business hub, had imposed strict lockdown restrictions on people's movements

and commercial activities aimed at containing the spread of the Covid-19 virus. In April, Dubai announced it would

partially reopen its shopping malls, a major tourist draw, after more than three weeks of restrictions.

The government's decision to gradually restore retail activities highlights the importance of the sector as a key

pillar in Dubai's economy and a major draw for tourists under normal circumstances. In the UAE and around the

world, governments are weighing the difficult decision between protecting public health and reopening their

economies as businesses buckle under the financial strain of prolonged closures.

Dubai's decision to re-open its shopping malls at 30 per cent capacity at the beginning of Ramadan provides the

opportunity to "try to come back carefully, gradually," Mr Alabbar said.

The re-opening during the start of Ramadan, the "slowest two weeks of the year," provides an opportunity to

"fine-tune and adjust" the return of operations during a slow period, he said.

Middle East and Central Asian economies are projected to contract 2.8 per cent in 2020 due to the coronvirus

pandemic and plunging oil prices, according to the International Monetary Fund.

"Global cities will go through change and adjustment, some better than others," Mr Alabbar said. "With size of this

city and the policy of government and no dependence on oil, the chance of this city to go back, it will go back, and

we will be in better shape."

The UAE, the Arab world's second-biggest economy, rolled out Dh282 billion in fiscal and monetary support last

month, providing zero interest funding to banks to boost lending growth in the country. The government has also

implemented a variety of other initiatives that range from discounted utility bills to waivers of fees to buttress the

economy.







The Covid-19 pandemic has hammered the global economy, which is set to contract 3 per cent this year and is

projected to slide into the deepest recession since the Great Depression of the 1930s. The outbreak has

hampered international trade and paralysed the airline and hospitality industries.

The pandemic also led to the delay of major global events such as the Tokyo Olympics and the Dubai Expo 2020

until next year and the cancellation of the Hannover Messe for the first time in its 73-year history. The IMF and

World Bank were forced to hold their Spring Meetings virtually last month.

Mr Alabbar said hosting the world fair in 2021 would be "an ideal time."

"I'm 100 per cent sure the vaccine will be with us even if it goes to next year March or April, and I believe by

October we should be all fine to really use Expo as a time of celebration and re-unite the world after these times,"

the executive said.


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DUBAI LIKELY TO START OPENING FOR

TOURISTS AT BEGINNING OF JULY, SAYS

TOURISM CHIEF Tuesday, April 28, 2020

Dubai is likely to start opening up for tourists at the beginning of July after the coronavirus pandemic halted

arrivals.

The reopening will likely start gradually and could be delayed until September, depending on global trends, Helal

Al Marri, the director general of Dubai’s Department of Tourism and Commerce Marketing, told Bloomberg TV.

“The thing about the scenario is a global question,” Al Marri said. “Many countries remain closed and it’s more

about the bilateral discussion.”

Dubai’s economy is heavily dependent on tourism, trade and retail.

Source: Arabian Business

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SAUDI'S TOURISM INDUSTRY COULD TAKE

45% HIT DUE TO COVID-19 Sunday, April 26, 2020

Tourism Minister Ahmed al-Khateeb reported as saying hopes are high for a fast recovery

Ambitious plans had been launched for tourism to contribute 10 percent of gross domestic product by 2030, with

a number of giga-projects across the kingdom.

Saudi Arabia’s tourism industry could take a hit of up to 45 percent this year as a result of the coronavirus

pandemic.

Just months after the kingdom flung open its doors to the world in launching a new visa scheme for 49 countries

in September last year, the Covid-19 outbreak slammed the shutters closed, with widespread measures

implemented to curb the spread of the deadly virus.

This included closing its borders to overseas umrah pilgrims and to tourists from at least 25 countries at the start

of March. While later in the month, all travel in and out of the country was suspended.

The containment measures have dented the kingdom’s plans to diversify its economy away from oil, and have

tourism contribute 10 percent of gross domestic product by 2030.

“We believe this year the impact will be in the range of 35 percent – 45 percent decline, compared to last year,

depending on how fast we will reopen the country and receive visitors,” Ahmed al-Khateeb, Minister of Tourism,

said in an interview with news agency Reuters.

“The sector has been severely impacted, hotels globally are suffering today from very low occupancy ratios, it is

the case here in Saudi Arabia as well. We hope things get better in the next few weeks and we have a fast

recovery.”

On Sunday, Saudi Arabia joined nations around the world in gradually loosing restrictions that were put in place

to prevent the spread of coronavirus.

The kingdom partially lifted a 24-hour curfew in all regions except Makkah and will allow resumption of some

commercial and economic activities.

Some 2.5 million pilgrims usually flock to the kingdom for the week-long haj ritual, expected to take place in July

this year. But Saudi Arabia has urged Muslims to wait before making plans to attend until there’s more clarity

about the deadly coronavirus pandemic.


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https://www.arabianbusiness.com/healthcare/442049-saudi-arabia-suspends-umrah-pilgrimage-over-virus-fears

https://www.arabianbusiness.com/culture-society/445673-saudi-arabia-partially-lifts-restrictions-keeps-makkah-curfew







SWITZERLAND CONFIRMS PARTICIPATION

IN POSTPONED EXPO 2020 DUBAI Thursday, April 30, 2020

Switzerland has confirmed its participation in Expo 2020 Dubai even after the coronavirus in the event it is

postponed until 2021, the Swiss government has announced.

The country’s participation was confirmed at a meeting of its Federal Council, which has instructed Presence

Switzerland at the Federal Department of Foreign Affairs to continue preparations for its event.

“I am happy to announce that Switzerland confirmed its presence at the Expo 2020 Dubai in 2021 and joins the

consensus in favor of the postponement in solidarity with the organizer and all participants,” said Manuel Salchi,

commissioner general of the Swiss Pavilion at the Expo.

“We herewith reaffirm our strong commitment to the success of Expo 2020 Dubai,” he added.

In a statement, the Swiss pavilion said that the federal council has approved any related costs associated with its

participation in the postponed event.

“The Federal Council views such large-scale events as an opportunity to position Switzerland and promote its

economy, particularly during the post Covid-19 phase.”

On April 21, the executive committee of the Bureau International des Expositions (BIE) has unanimously agreed to

propose the postponement of Expo 2020 Dubai.

If agreed upon, the event will now run from October 1, 2021 to March 31, 2022.


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With 35 years of Middle East experience, Asteco’s

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John Allen BSc MRICS

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+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+971 4 403 7789

[email protected]

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