Download - Week 06 - Asteco

Week 06 SUNDAY, 09 FEBRUARY 2020

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

© Asteco Property Management | 2020 | asteco.com

35 YEARS | CELEBRATING THE PAST AND

TRANSFORMING THE FUTURE | Page 1

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

UAE, GCC CONSTRUCTION SET FOR GROWTH IN 2020

SAUDI PROPERTY PRICES RISE FOR FIRST TIME SINCE EARLY 2015

UAE’S REAL ESTATE FUNDS BIDE THEIR TIME

OYO HOTELS & HOMES UAE EXPECTS 25% GROWTH IN BUSINESS TRAVEL FROM INDIA

IN Q1

UAE CONSTRUCTION PUTS UP SAFEGUARDS AGAINST CHINA VIRUS IMPACT

TEMPORARY POP-UP HOTELS MAY BE HEADED TO MIDDLE EAST SOON

DUBAI

CONSTRUCTION PROGRESS AT DEIRA ISLANDS BRIDGES REACHES 75%

DUBAI’S REAL ESTATE DATA WILL NEED FILTERS

DUBAI PROPERTY PRICE DECLINES SLOW TO LESS THAN 1% IN JANUARY

DUBAI DEVELOPER SOBHA TARGETS $680M SALES IN 2020

DUBAI MARINA, OTHER ICONIC LOCATIONS REMAIN POPULAR WITH NEW DUBAI

TENANTS

DUBAI’S REAL ESTATE SECTOR HAS DEMONSTRATED ITS RESILIENCE - DLD

ACCOR TAKES OVER OPERATIONS OF TWO DUBAI DEVELOPMENTS HOTELS

UNITS UNDER DH1M ACCOUNT FOR 41 PER CENT OF DUBAI HOUSE SALES IN 2019

DUBAI PROPERTY: HIKES UNLIKELY ON HOME SERVICE CHARGES

LEASE OFFICE SPACE IN DUBAI FOR DH500

MORE CALLS EXPECTED IN 2020 TO SLOW RATE OF DUBAI PROPERTY PROJECTS

DUBAI RACES TO COMPLETE 160,000 HOTEL ROOMS BY OCTOBER

ELLINGTON SAYS WILTON REAL ESTATE PROJECTS IN DUBAI HAVE SOLD OUT

WHAT EXPO 2020 VISITORS WILL EXPECT FROM THEIR HOTELS

MBR CITY HOME SELLS FOR DH90 MILLION TO BE TOP DEAL

DUBAI LIKELY TO FOCUS NEW DEVELOPMENTS IN KEY POCKETS







DUBAI'S DRAKE & SCULL COMPLETES TWO CONTRACTS ON KEY KUWAIT PROJECTS

DISTRICT 2020 CALLS FOR START-UPS TO BE PART OF ITS INNOVATION ECOSYSTEM

EX-DRAKE & SCULL CHIEF FIRES BACK AT NEW CRIMINAL CHARGES

CONFIDENCE GROWING IN DUBAI PROPERTY MARKET DESPITE 'NEGATIVE TALK'

GLOBAL VILLAGE LAUNCHES PROMOTION TO WIN $380K APARTMENT IN DUBAI

DRAKE & SCULL AND KHALDOUN TABARI: HOW DID WE GET HERE?

ABU DHABI

ALDAR SAYS TO START HANDOVER OF FLAGSHIP YAS ISLAND WATERFRONT PROJECT

ABU DHABI PROPERTY PRICES FALL BY 11% IN 2019

HOW ABU DHABI PROPERTY PRICES, RENTS FARED IN 2019

ABU DHABI DEVELOPER UNVEILS NEW RESIDENTIAL PROJECT IN MASDAR CITY

WEWORK MAKES UAE DEBUT WITH HUB71 WORKSPACE TIE-UP IN ABU DHABI

ABU DHABI HOTEL MARKET BENEFITS FROM HIGHER DEMAND AND LIMITED SUPPLY

GROWTH

NEW CRUISE LINER JETTY TO BE BUILT AT ABU DHABI'S SIR BANI YAS ISLAND

UAE CONSTRUCTION FIRM SAID TO BE IN TALKS TO RESTRUCTURE $545M DEBT

NORTHERN EMIRATES

HOMEFRONT: 'DOES A 100-YEAR LEASE RENEW WHEN YOU SELL A SHARJAH

PROPERTY?'

INTERNATIONAL

BREXIT 'CLARITY' BRINGS MIDDLE EAST DEMAND FOR LONDON REAL ESTATE

FINANCE BILL 2020: BENEFITS NRIS ENJOY AS UAE RESIDENTS







UAE CONSTRUCTION PUTS UP

SAFEGUARDS AGAINST CHINA VIRUS

IMPACT Friday, February 07, 2020

Dubai: Chinese construction companies with projects in the UAE could face difficulties shipping in supplies from

China in the coming weeks, industry sources say. This could mean that these contractors could source more from

UAE- or Gulf-based suppliers to meet their immediate needs.

“There’s been talk that some ships carrying iron ore – the basic raw material for steel - into Chinese ports are still

held up,” said Bharat Bhatia, CEO of Conares, which operates two steel mills in Dubai. “A clear picture of whether

supply from China will be affected in the coming weeks will be got only after February 9.”

The Chinese government had extended the Lunar New Year holiday to February 9 after the virus spread across

cities and led to fatalities of more than 600. Several market sources said that a better insight of how Chinese

suppliers’ operations were impacted by the virus fallout can only be had after February 9.

This is what Chinese construction companies in the UAE – currently associated with some major projects – are

worried about. Any delay in supplies over the coming weeks could hit these projects hard.

Typically, Chinese contractors involved in overseas projects source all or most of their supplies from China itself.

They will need to do so to comply with the requirements to get loans from Chinese lenders on easier borrowing

terms.

A clear picture of whether supply from China will be affected in the coming weeks will be got only after February 9

- Bharat Bhatia of Conares

Already being felt

Even in the days leading up to February 9, key commodities related to construction- and building materials saw

price drops. This had to with concerns that China’s domestic demand for such materials will drop significantly

until such time authorities get a better grip on containing the virus.

“The market saw iron ore prices dropping from $91-$94 a tonne to $80, almost overnight,” said Bhatia. “Same with

zinc prices, which we use in our steel mills, with prices down to $2,220 a tonnes from $2,450 in 48 hours. These

are major moves in the commodity markets – and all borne out of fears over what would happen to Chinese

demand this year.

“The pressure on prices will continue – each day that the issue drags on without a cure.”

Bharat Bhatia of Conares reckons UAE steel mills can try and win more overseas contracts in current situation.

Shift their buying

Now, if Chinese contractors in the UAE start sourcing some of their immediate needs from within this market, it

could prove a major boost for manufacturers and traders. Competing against Chinese suppliers had always been

difficult, given the prices at which they would sell. (The UAE authorities have in recently years been supporting







domestic manufacturers by stipulating that a certain percentage in each project should use ‘Made in UAE’

materials.)

Well stocked up

Meanwhile, UAE based construction company sources say they are well stocked to take care of their immediate

building material needs. According to Vinod Pillai, who heads the UAE operations at RP Group, “Our current

exposure to Chinese suppliers would be about 5-10 per cent. Where possible, we make the effort to source from

within the UAE or the wider Gulf.

“We do bulk purchases well in advance of project timelines – so, for now, the virus will not have any material

impact at any of our project sites in the UAE or outside. There’s also a lot of centralized purchases that we do,

which gets us cost benefits and access to regular supplies.

“There are a lot of alternatives we can choose if our Chinese suppliers are facing difficulties. We are covered for all

risks.”

Not a time for project delays

This is a crunch year for construction companies in the UAE; many of these projects have set completion

schedules ahead of the Expo 2020 Dubai’s opening date in October. While a virus outbreak is way beyond

anyone’s control, if the delays mount up there will be consequences.

Chinese construction companies are associated with some of the leading projects in the country. In recent

months, they have landed deals offering never-before-seen payment terms to the clients, who for many of these

projects do not have to pay until after completion. The Chinese companies are also taking direct equity in some

projects in lieu of payments.

“Their clout is immense – only the biggest local players could compete with them,” said one source. “The next few

weeks will be interesting, to see how they cope with the virus fallout.”

A CHANCE FOR UAE STEEL SUPPLIERS

With China fixated on solving the virus attack, steel suppliers in the UAE and Gulf now have a chance to pick up

overseas orders.

“Whether it’s Southeast Asia or East Africa, Gulf steel mills always have to compete with Chinese ones on prices,”

said Bharat Bhatia of Conares Steel. “That’s always going to be a tough task – we have had interest from even

Hong Kong and Myanmar. But there’s always a Chinese competitor waiting on the sidelines.

“Now, if Chinese suppliers cannot ensure supplies on time because of the current situation, there’s an opportunity

for Gulf steel mills. We have the capacity to crank up and meet any demand.”

Source: Gulf News

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DRAKE & SCULL AND KHALDOUN TABARI:

HOW DID WE GET HERE? Thursday, February 06, 2020

Who is Khaldoun Tabari?

Mr Tabari is a Jordanian businessman who first bought a stake in Dubai-based contractor Drake & Scull in 1998

and was its second-biggest shareholder at the time of its 2008 IPO, when it raised Dh1.22bn in an offer that

was 101-times oversubscribed.

After its float, as conditions for contractors in the UAE worsened, the company expanded overseas — including

into markets like Libya and Syria — and went on an acquisition spree buying businesses in India Germany, and a

company in Saudi Arabia that allowed it to move into general contracting.

What is he accused of?

The company’s current management filed 15 initial charges with the Abu Dhabi public prosecutor’s office on

matters ranging from fraud and embezzlement to forgery. In a statement last week, it said fresh criminal charges

had also been filed with the Abu Dhabi Public Funds Prosecutor against Mr Tabari, family members and other

executive managers. It also said criminal complaints had been filed against Mr Tabari and his daughter, Zeina (the

company's former head of investor relations) in Jordan.

So what happened?

What isn’t in doubt is that the company’s expansion plans went awry. Geopolitical tensions put paid to its

businesses in Libya and Syria, and the 2014 decline in oil prices not only stymied its move into general

contracting, it also meant the company was struggling to recoup payments for work carried out. It declared losses

of Dh826.6m in 2015 and Dh732.9m in 2016, leading Mr Tabari to step down as chief executive in August 2016.

The company's next chief executive, Wael Allan, developed a turnaround plan that involved bringing in new

investment.

A deal agreed with private equity firm Tabarak Investment Company involved Drake & Scull reducing its share

capital by 75 pr cent to extinguish accumulated losses of Dh1.7bn, wiping the slate clean ahead of a Dh500m

equity injection. Mr Tabari agreed to sell his shares in February 2017 as part of this process.

The new funding eventually came in October 2017, and although the company declared a profit for the first

quarter of 2018, hopes of a revival faded quickly. A rapid decline in its fortunes led to the company's shares being

suspended from DFM in November 2018 and its last filed accounts for the 2018 financial year show a full-year loss

of Dh4.5bn on revenue of Dh798m, leaving the company with negative net equity of almost Dh4.75bn.

How did things go so wrong so quickly?

This is the key sticking point in the dispute. By June 2018, less than nine months since funds were injected, the

company announced it had completed an investigation into “violations” by its previous management and had

passed on findings to the relevant UAE authorities. A statement issued accompanying its 2018 accounts in April

last year cited 15 complaints to the UAE public prosecutor dating back to its 2008 IPO and cover "'questionable

acquisitions by Drake & Scull of companies belonging to members of the previous executive management in

2009-2011", according to a statement published last year.

https://www.thenational.ae/business/markets/drake-scull-ipo-oversold-1.229338







It said the restructuring plan that Tabarak as strategic investor had used as its basis of investment had been

developed on the back of "false information of backlog value, misrepresented projects' profitability and

percentage of completion" .

“Furthermore, the report omitted material information, including the number and status of overwhelming legal

cases against the company, and concealing the true liquidity needs of the company which far exceeded the Dh500

million dirhams injected,” the statement said.

Mr Tabari argued this is a smokescreen to cover mismanagement. He said that from the sale agreement in

February 2017 until funds were injected in October, the company had eight months to complete due diligence. In

his statement, he blamed Drake & Scull's subsequent demise on a “clear lack of strategy”, pointing to the fact that

Drake & Scull replaced five chief executives in a period of just over two years, and said an inability to effectively

manage the business led to the departure of key executives and technical staff, meaning they were unable to fulfil

contracts.

In a statement published on Wednesday in response to his claims, Tabarak said DSI "is managed by a highly

qualified and experienced board of directors working independently and without any supervision from Tabarak".

It said that as one of the shareholders in Drake & Scull, it is "following the measures taken and complaints filed

against members of the previous executive management, as well as the results of investigations carried out by

the UAE Public Prosecutor and all other related developments inside and outside the country".

Source: The National

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UAE, GCC CONSTRUCTION SET FOR

GROWTH IN 2020 Saturday, February 08, 2020

The construction sector in the UAE and GCC is poised to see stronger activity in 2020 compared to last year, on

the back of increased investments in oil and gas, utility, urban development, and infrastructure projects.

According to the latest figures by BNC Network, a total of $53.8 billion worth of projects were awarded in the UAE

in 2019, registering a 17 per cent year-on-year (YoY) drop. It sees a 10 per cent YoY decrease in contract award in

the UAE once the late capture projects accounted for in the coming weeks. Based on currently available tender

information, BNC expects the contract award in the UAE in 2020 to be $55 billion, an increase of $1.2 billion.

In 2019, a total of $73.1 billion worth of projects were completed in the UAE, an increase of nine per cent. With

many Dubai Expo-related projects nearing completion, other sectors such as energy, infrastructure, transport and

utility projects will maintain strong activity in the construction sector in the UAE and across the region.

In the GCC, a total of $143.3 billion worth of projects were awarded across the region last year, registering a four

per cent YoY growth. BNC forecasts a 13 per cent YoY increase in contract award in the GCC once the late capture

projects accounted for in the coming weeks. It expects the contract award in the GCC this year to reach $150

billion.

A total of $198.8 billion worth of projects were completed in the GCC in 2019, registering a three per cent YoY

growth.

"Construction activity will be dominated by the oil and gas sector in both the GCC and the UAE. Even though the

urban construction sector has contracted in the UAE, it will still contribute to the second largest value of projects

across the GCC. The urban construction sector across the GCC is also a strong second primarily due to the rapidly

growing contribution of Saudi Arabia. Another sector with significant activity will be the utility sector, in both the

GCC and the UAE," said Avin Gidwani, CEO of BNC Network.

Over the last few months, Dubai, Abu Dhabi and Sharjah have announced a number of new mega gas discoveries

which will also require billions of dollars in investment and development of the oil fields. Abu Dhabi's Dh50-billion

stimulus package Ghadan 21 will also be a major driver of the construction sector in 2020.

Rizwan Sajan, founder and chairman of Danube Group, said after the World Expo 2020 has served its purpose of

bringing more investment and job opportunities, giving a boost to the economy, investors and businessmen are

optimistic that the UAE government will launch some other long-term projects which will take its economy to the

next level of growth.

"Definitely, there is going to be more activity in 2020 because the country has been endeavoring to reduce its

dependence on oil and turn itself into a Shangri La of conducting businesses and vacationing. Considering all

these things, prospects seem very promising for construction sector in 2020 to achieve these goals," Sajan added.

In the near future, Sajan believes that the construction investments will be driven by hospitality, transport, energy

and social infrastructure development projects under various programmes.

Bharat Bhatia, CEO of Conares, doesn't see strong demand for steel, shrinking by 15-20 per cent this year.







"There are multiple reasons for this. We need more clients to consume what we have built, and also longer credit

extended by the traders has reduced their buying appetite. New announcement on infrastructure projects and

Etihad Railways type of projects will keep the manufacturers in the UAE busy in 2020," Bhatia added.

Ben Greenish, senior vice-president, dmg events, which organises Big5 construction expo, said the results of its

"Voice of the Construction Industry Report" survey comprising 6,000 respondents from 136 countries showed that

when considering where their business may look for opportunities further in the future, and based on where they

are not working currently, the GCC and the wider Middle East were the standout opportunities.

"The GCC was the most attractive option for respondents from Asia and Europe, as well as those from other GCC

states. Of the GCC countries, respondents felt there were the most opportunities to be found in the UAE - 56 per

cent - followed by Saudi Arabia - 44.4 per cent," Greenish said.

Some 36 per cent of respondents said their business would enter the UAE within the next twelve months.

Source: Khaleej Times

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DUBAI LIKELY TO FOCUS NEW

DEVELOPMENTS IN KEY POCKETS Tuesday, February 04, 2020

There are still pockets in Dubai which can be developed under better urbanisation plan rather than pushing the

boundaries of the city to bring balance between demand and supply,

"In order to re-establish balance between demand and supply, I would also encourage not to push the boundaries

of the cities. Within the city, there are pockets where there can be development coming, instead of creating

developments 30 km away from Dubai and spread it out. We have got to urbanise the city better itself. That is

where I hope Dubai will create regulations and focus on new development going forwards," said Thierry Delvaux,

CEO for Middle East and Africa at real estate consultancy JLL.

"There needs to be more regulations how much space can be developed every year on the market if we want to

reestablish this balance between demand and supply," he said while speaking on the sidelines of a JLL conference

on Tuesday.

Delvaux said despite the reports of slowing economy and poor market, the demand for real estate is good in

Dubai.

"If you ask a player like Emaar, they are very satisfied with the occupancy and selling rates. If you look at the office

market, it is good as well. The only issue we are facing is that of enormous supply. There is more supply coming

on to this market than most of the key markets in Europe. If we look at the fundamentals of the market, the

demand is very solid. I am very hopeful that this Higher Real Estate Committee of Dubai is going to better regulate

the market and come up with regulations to slow down the amount of supply and create a better balance in

supply and demand," Delvaux said.

In 2019, 35,000 residential units were delivered in Dubai, the largest number of deliveries in a year. In 2020,

around 63,000 units are expected to be handed over with materialization rate of 50 per cent. In Abu Dhabi, the

numbers of deliveries were 1,200 in 2019 and this year 900 units are expected to come online.

ValueStart said in its latest report that January 2020 witnessed fewer off-plan sales transaction volume, declining

20 per cent when compared to December last year.

"Similar to 2018, the pace of new project launches eased over 2019 as developers adopted a more cautious

approach in response to lower demand and growing supply", said John Stevens, managing director of Asteco.

"Whilst the downward trajectory for the short-term is unavoidable due to tepid economic/market conditions and

the expected supply glut, the outlook for the medium- and long-term for the UAE is encouraging, fuelled by a pro-

active government response and clear focus on economic progress and sustainability," said Stevens.

Rentals bottom out

Dana Salbak, head of research for Mena at JLL, sees rentals in Dubai have bottomed out as the market matures.

"Rents are close to the bottom of the market in 2020 as we expect some level of stabilisation and normalisation. It

is the sign of market maturing and we are moving away from speculator investors and end-user market," she

said.







She noted that a huge supply is coming and that will put further pressure. "I don't think there will be an uptick in

rentals soon.

"Dubai has a supply problem and Abu Dhabi's issue is more of demand. In Abu Dhabi, supply is controlled but

there is a needs to do a bit more to stimulate demand. In Dubai, 2019 has been a year of record initiatives by the

government to boost demand. There is a lot of happening in the background in terms of works but these things

take time and yes it will have an impact down the line," she added.


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NEW CRUISE LINER JETTY TO BE BUILT AT

ABU DHABI'S SIR BANI YAS ISLAND Saturday, February 08, 2020

Abu Dhabi Ports announced on Saturday plans to design and construct a new cruise jetty at Sir Bani Yas Cruise

Beach, off the coast of Abu Dhabi.

The AED100 million ($27 million) new jetty project will be completed in the fourth quarter of 2020, in time for the

launch of the 2021 cruise season.

The expansion will allow two vessels to dock at any given time and provide up to 5,000 passengers with direct

access to embark and disembark at an accelerated rate on the southeast beach of Sir Bani Yas Island, state news

agency WAM reported.

Currently, cruise ships set anchor about 1km offshore from the island and visitors are ferried to and from the

beach via tender craft.

BAM International, the operating name for the Dutch construction company Royal BAM Group outside of Europe,

has been selected to design and construct the new jetty.

Noura Rashed Al Dhaheri, cruise terminal director at Abu Dhabi Ports, said: "Today’s announcement heralds an

exciting new phase in the spectacular success of Abu Dhabi’s cruise business at Sir Bani Yas Cruise Beach. Our

commitment to its ongoing development will help us significantly increase the total number of visitors to the

island, and reduce the time it takes to move them to and from a vessel."

Eric van Zuthem, chairman of BAM International, added: "The new cruise jetty at Sir Bani Yas Cruise Beach is our

first project with Abu Dhabi Ports, and we look forward to commencing a long and successful relationship

between our organisations."

Located in Abu Dhabi’s Al Dhafra Region, Sir Bani Yas Island is the Arabian Gulf’s first and only dedicated cruise

beach stopover destination and boasts some of the most spectacular wildlife and historical treasures in the

region.

Source: Arabian Business

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ABU DHABI DEVELOPER UNVEILS NEW

RESIDENTIAL PROJECT IN MASDAR CITY Friday, February 07, 2020

Reportage Properties has revealed plans for The Gate project in Masdar City, Abu Dhabi, with prices starting at

AED500,000 ($136,000).

The project will offer 463 luxury residential units, with 200 studios, 144 one-room and lounge apartments, 94 two-

room apartments, and seven three-room apartments, in addition to two four-room apartments, next to 16

townhouse units.

Nasser Al Khamis, CEO of Reportage Group of Real Estate Companies, said that the launch comes amid a high

demand for buying real estate in Abu Dhabi.

He said the project is scheduled to be completed and delivered by the second quarter of 2022.

The launch follows the company’s delivery of its Leonardo Residence project in Masdar City at the beginning of

last year, which provided 177 apartments.

The company is also building Oasis Residence 1 which will add 612 apartments, and Oasis Residence 2, which

provides about 304 residential units in Masdar City.


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ABU DHABI PROPERTY PRICES FALL BY 11%

IN 2019 Friday, February 07, 2020

Abu Dhabi property prices fell by 11 percent in 2019 while rental rates dropped by 9.3 percent, according to a new

report by consultants ValuStrat.

Its fourth quarter 2019 Abu Dhabi real estate review also showed that real estate values were down by 2.6

percent compared to the previous quarter.

The ValuStrat Price Index (VPI) for capital values in Abu Dhabi’s residential investment zones for the fourth quarter

declined to 69.1 points.

The weighted average residential value in Q4 2019 was AED9,246 per sq m.

Ready properties in Al Reem Island, Al Muneera, Al Reef and Hydra Village saw double digit declines in capital

values since Q4 2018, ValuStrat said in the report.

It added that locations that were more resistant to downward pressure, with capital values declining annually in

single digit percentages, were apartments in Saadiyat Island and Al Bandar, as well as villas in Mohamed Bin

Zayed City and Al Raha.

Abu Dhabi’s gross yields averaged 7.6 percent, the report also noted.

As far as residential supply was concerned, Abu Dhabi City had an estimated 237,864 residential homes stock as

of 2019. A total of 3,878 residential units were confirmed to have been completed as total completions

represented 62 percent of the projected residential supply estimated at the start of 2019.

“Slowing price declines in some districts and a continued appetite for well-priced quality new home builds from

reputable developers are encouraging signs for the residential property market in the capital at this point in the

property cycle,” said Declan King, managing director and group head of Real Estate at ValuStrat.


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ALDAR SAYS TO START HANDOVER OF

FLAGSHIP YAS ISLAND WATERFRONT

PROJECT Saturday, February 08, 2020

Aldar Properties has revealed that handovers are set to start at Yas Acres, Aldar’s flagship golf and waterfront villa

and townhouse development on the northern shores of Yas Island.

In its latest quarterly update on projects under development across Abu Dhabi, the developer said construction of

652 villas and townhouses has reached its final stages.

Planned phased handovers are set to commence at the end of this quarter, it added.

Other projects underway on Yas Island include Lea, which was first launched in April and features 238 plots

directly to the north of Yas Acres.

Aldar said it has awarded the contract to Hilalco with a mandate that encompasses the design and build of Lea’s

infrastructure.

It added that Lea has proven to be one of Aldar’s most popular locations and sold out during Cityscape Abu Dhabi

last year, generating over AED400 million in sales.

According to the update, the first phase of The Bridges on Reem Island is also nearing completion with handover

to customers expected to begin in early Q2. The project is a six building, 1,272 home development, which is split

by a canal on the island is located next to the capital’s newest urban park.The first phase consists of three

buildings containing 636 apartments.

Maan Al Awlaqi, executive director – commercial at Aldar Properties said: “We are starting off the year strong with

a number of projects nearing completion and handover in some of Abu Dhabi’s most sought after locations.

"Yas Acres and The Bridges promise their residents an unrivalled living experience within their respective

destinations, surrounded by abundant amenities for which Aldar is known. We are also pressing ahead on the

various developments in our pipeline and look forward to delivering more homes across the capital in the coming

period.”

At other sites such as Alghadeer, situated close to the border of Abu Dhabi and Dubai, show homes are now open

to the public, with the development of a masterplan now entering its second phase.

At Water’s Edge, structural works across all buildings are making good progress on the development on the

island’s eastern shores, Aldar said. The development consists of 13 mid-rise residential blocks and is comprised of

studios, one, two and three-bedroom apartments.

The company added that on Reem Island, construction of the 374-home Reflection development is continuing to

move at a good pace on both Towers A and B while work at Alreeman, which is located near Abu Dhabi

International Airport, is continuing ahead of schedule.


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MORE CALLS EXPECTED IN 2020 TO SLOW

RATE OF DUBAI PROPERTY PROJECTS Saturday, February 08, 2020

Close to 50,000 new homes are forecast to be built in Dubai as sale prices and rents continue to fall, albeit at a

slower pace, according to new research.

Asteco's report covering the fourth quarter of 2019 said that although some of the new supply is likely to spill

over to 2021, calls from industry leaders for a short-term curb on new projects in order to restore the supply-

demand balance are expected to increase.

Damac chairman Hussain Sajwani in October warned that the real estate slowdown could spillover to the city’s

banks and called for curbs on construction.

Asteco said a total of 31,000 residential units were handed over in 2019, comprising approximately 23,600

apartments and 7,400 villas, with communities such as Damac Hills, Dubai Hills Estates and Akoya Oxygen

accounting for the bulk of completions.

The commercial sector recorded the delivery of about 3.1 million sq ft of new office space with a further 2.5

million sq ft of office space expected this year.

Asteco added that with more supply expected for handover in 2020, tenant retention will become increasingly

important for landlords and will be achieved through competitive rates and incentives.

"Nonetheless, further pressure on rental rates across all asset classes is expected for the year as economic

uncertainties limit newcomers to the market," Asteco's report noted.

Apartment and villa sales prices continued their downward trajectory during 2019, declining by an average of 13-

15 percent, the report said, adding that Asteco has noted a marked rise in enquiries with focus on affordable

properties.

Asteco said sale price declines are likely to ease in 2020, particularly for newly launched projects, as development

costs are approaching the lowest practical level.

It added that secondary property prices are, however, expected to record additional drops with developers, banks

and other financial institutions needing to lower entry points to boost sales.

John Stevens, managing director, Asteco, said in the report: "Although sales prices and rental rates remained in

contraction, the real estate market continued to mature throughout 2019... Expo 2020 is anticipated to improve

overall market sentiment, particularly with the inflow of a significant number of short-term visitors. There has

been much speculation and discussion over whether these short term guests can be converted to long term

residents.

"On a global scale, prolonged geo-political and trade tension could have an adverse effect on the economy and

ultimately the real estate market in the UAE."


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SAUDI PROPERTY PRICES RISE FOR FIRST

TIME SINCE EARLY 2015 Saturday, February 08, 2020

Real estate prices in Saudi Arabia rose marginally by 0.5 percent in the final quarter of 2019, marking the first

positive growth since early 2015.

According to a new research note from Jadwa Investment, property prices in the Gulf kingdom also rose by 0.9

percent quarter-on-quarter in Q4 2019.

Jadwa Investment said the local economy ended the year on a positive trend.

While point of sale transactions rose notably by an average of 23 percent in full year 2019, the non-oil PMI index

averaged at 57.1 in 2019, the highest annual average since 2015.

Total bank claims rose by 10 percent in December year-on-year. Claims on the public sector were up by 24

percent, meanwhile, credit to the private sector rose by 7 percent, year-on-year, the highest rise since August

2016.

Prices rose in December by 0.2 percent year-on-year, for the first time in 2019 while the full year inflation rate for

2019 stood at –1.2 percent, matching Jadwa's forecast. In 2020, Jadwa said it expects the inflation rate to average

1.7 percent.

Jadwa's research note also said that recent data from the Saudi Commission for Tourism and Heritage (SCTH)

showed tourism spending and the number of tourism trips for inbound and domestic tourism were all up in 2019,

while outbound tourism spending and the number of outbound trips declined in 2019.


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UNITS UNDER DH1M ACCOUNT FOR 41 PER

CENT OF DUBAI HOUSE SALES IN 2019 Wednesday, February 05, 2020

Residential units priced under Dh1 million accounted for 41 per cent of all homes sold in Dubai last year,

signifying a major shift in investment appetite within the emirate, a new study found.

Dubai registered 15,516 deals for residential units priced below Dh1m, out of a total 37,788 deals last year, real

estate portal Property Finder said in a report on Wednesday.

Units priced lower than Dh1m are mostly studio and one-bed apartments, the report showed. The latest set of

data indicates a shift in appetite from luxury properties to affordable units, with sub-Dh1m properties popular

with first time homebuyers.

Such properties are also attractive as investments since entry prices and down payments at this level are far more

manageable. Rental yields can be as high as 8 per cent to 10 per cent for the right properties, Property Finder

noted.

“In H2 of last year, we started to see an increase in investor activity buying studios and one-bedrooms,

presumably gearing up toward Expo 2020 with rental income in mind,” said Lynnette Abad, director of data and

research at Property Finder.

Communities that registered the highest number of sub-Dh1m sales were Jumeirah Village Circle (1,473),

International City (1,426), Meydan (1,079), Business Bay (976) and Jumeirah Lakes Towers (887). The average sale

price for a property in JVC was Dh586,389 last year, according to the report.

Dubai registered 9,044 off-plan transactions for units below Dh1m, with Meydan accounting for most deals

(1,040), followed by Dubai Hills Estate (812), JVC (783), Business Bay (768) and Dubai South (689). The average sale

price for an off-plan property in Meydan City was Dh605,777, according to Property Finder.

The emirate recorded 6,472 deals on the secondary market for such properties with International City registering

most deals (1,128), followed by JVC (690), Al Furjan (507), Dubai Sports City and Dubai Marina (469 each). The

average sale price for a ready property in International City was Dh313,173 last year, it added.

Source: Gulf News

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HOMEFRONT: 'DOES A 100-YEAR LEASE

RENEW WHEN YOU SELL A SHARJAH

PROPERTY?' Thursday, February 06, 2020

I am an Indian resident who works in Dubai and lives in Sharjah. I want to understand a little more about the real

estate law in Sharjah. I know Sharjah offers a 100-year lease, so if I want to transfer a property to my son will he

get another 100 years on the lease, or only the remaining years? Also, what happens after 100 years? Does it just

renew for another 100? And will he be able to sell the house to GCC buyers on a freehold basis? Finally, will the

law change in the future for non-GCC residents to also own property in Sharjah on a freehold basis? SH, Sharjah

It is important to distinguish what leasehold actually means in terms of property. Where a property is leasehold, a

buyer owns the building, villa or apartment but not the land it is built upon. The land remains in the ownership of

the landlord (presumably in this case the Sharjah government).

Back in 2014, the Sharjah government made the move to open up its property market to all expatriate residents,

allowing them to buy real estate in certain areas on the 100-year lease basis.

If you go on to sell the property or indeed transfer it, the new owner (in this case your son) will benefit from

having the difference between the 100 years and the time you have owned the property. So for example, if you

have owned the unit for two years, when you sell or transfer it, the buyer receives the property with a 98-year

lease.

When the lease years reduce down to zero, in theory, the property goes back to the landlord but in reality this

rarely happens because by then leaseholders will most likely have some legislation passed (as has happened in

other countries) to extend the years on the lease by paying a certain amount. This amount will be determined in

the future.

If you sell the property to another buyer, the property will always be sold as a leasehold unit regardless of who

buys it.

With reference to whether Sharjah will ever offer freehold properties to non GCC nationals, the answer remains

unknown. Only the rulers in Sharjah can effect this change. For now, only UAE or GCC nationals enjoy this

privilege of owning freehold property in the emirate.

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

Source: Gulf News

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LEASE OFFICE SPACE IN DUBAI FOR DH500 Tuesday, February 04, 2020

Dubai: Want to book an office space from Dh62 a day? And not in some remote corner of the city, but an upscale

building — Dubai Boulevard Tower 1 bang opposite The Dubai Mall.

The operator: Regus.

If the preference is to pay by the month, there’s a spot available for Dh500… and again the address is at one of

the fancier spots in the city — 17th floor of Iris Bay Tower in Business Bay.

The operator: Maple Leaf Business Center.

Co-working spaces

Dubai’s new “co-working” spaces are now offering tenants the flexibility to choose across a wide range of rents

and base themselves right in the heart of its commercial district.

And there’s more to come: WeWork, the US company that did much to make the co-working business all fun and

frolic, opened its first UAE location in Abu Dhabi on Monday at the Hub71 cluster.

It will add a second location, in Dubai at the One Central, part of the Dubai World Trade Centre expansion.

The best part is that co-working is now giving a boost to the commercial real estate market in the UAE, which has

been through a prolonged period of uncertainty brought on by a slowing economy and businesses across sectors

shedding jobs.

WeWork's new location in Abu Dhabi, at the Hub71 cluster. The US company will soon be adding a second

location in the UAE, at Dubai's One Central in Dubai World Trade Centre complex.Image Credit: Supplied

(WeWork)

Who’s leasing to co-work?

One would have thought co-working is all about start-up owners wanting temporary locations before they scale

up their business to move into a bigger office.

But the concept is now tapping a much wider user – those businesses who want to keep a tight control on costs

before they can think big, or used as temporary bases by companies overseeing specific projects with a defined

timeline.

According to Prathyusha Gurrapu, Head of Research and Advisory at Core, the consultancy, “The demand is fairly

distributed across entrepreneurs, SMEs and large corporates. Globally, WeWork reports that 40 per cent of its

members work for companies with 500 or more full-time employees.

“It categorizes these companies as “enterprise members” - and this is its fastest-growing type of membership.”

What works in residential…

Some of the same themes used to sell or lease residential properties are now being used for co-working spaces.

Maple Leaf Business Center styles its new location as offering “affordable luxury”.

“All businesses do not really need a traditional physical office to operate from,” said Danish Sharif, Managing

Partner at the firm. “All they need is a dedicated space to meet their clients and transact business, with recourse

to meeting rooms.







“For Dh500 a month, we are offering the flexibility of using the prime office space at a prestigious location in

Dubai’s business district.”

Adding to the footprint

Estimates suggest that Dubai has more than 700,000 square feet of flexible/co-working space, and more being

added. The WeWork location at One Central is to open this quarter, and it would be interesting to see the take-up

rates there.

Yet, it still adds up to just over 1 per cent of the total office stock in the city.

“There are more than 80 co-working centres operated by over 50 operators,” said Gurrapu. “To give perspective,

WeWork (as a single operator across multiple locations) is the largest tenant in New York and occupies more than

1.7 per cent of office space in Manhattan.

“Dubai is primed to take advantage of the co-working trend as downsizing activity, subsequent expansions and

spatial demand - along with faster occupation timelines from tenants - require agile workplace solutions.

“Undoubtedly, co-working/serviced offices and other “flexible” real estate solutions are disrupting and reshaping

the global office market. We are witnessing a flight to quality at the top end of the leasing spaces. They are now

perceived to be fairly priced for the location, building grade, interiors, ambience and amenities they provide.

“Globally office demand is evolving with focus towards productive workspaces… where space is a service and

commodity.”

Landlords are quick to learn

Over the last year in particular, Dubai’s landlords with office buildings on their books have learnt to work with co-

working space options. More buildings now allow co-working management companies to take up a floor or more,

and then sub-lease it to individuals or businesses. (Much the same is happening in residential as well, with short

stays and holiday homes.)

Regus took the 9th floor at Dubai Boulevard Tower 1, where the 1,036 square metres of open plan space can be

configured to client requirements. “This means one can divide and use it as needed and as the business grows,”

said a Regus spokesperson. “Law firms, real estate companies and financial institutions will share the building,

while well-known multinationals base their headquarters in this highly sought-after area.”

Landlords by taking to co-working are “aiming to improve the micro-community and build a pipeline of future

tenants,” said Gurrapu. “Landlords broadly practice three types of flexible space strategies - leasing to a third-

party operator, partnering with operators, or self-operate.”

THE PROS IN CHOOSING A CO-WORKING SPACE

* Location: They provide superior location and connectivity.

* Agility: Ease and speed at which one can downsize or expand spatce requirements compared to conventional

leasing methods.

* Competitive costs: Cost per seat in coworking spaces are competitive.

* Brand and positioning: Smaller SMEs, start-ups and those corporate firms entering the region gain the option of

having access to upscale facilities in commercial districts without having to maintain fully-fledged offices.

* Quicker occupation timelines: Due to the plug-and-play nature of co-working spaces and readily available

infrastructure, tenants benefit from immediate occupation timelines. With a significant portion of enquiries

coming for fitted, plug-and-play offices, this is a big incentive for potential tenants.

* Productivity and collaboration: Peer learning, collaboration and knowledge sharing with professionals from

other fields can help employees stay updated on market trends. The risk of IP protection can be mitigated by

providing dedicated spaces for corporates who have reached a certain footprint.







Credit: Prathyusha Gurrapu, Head of Research and Advisory at Core.

Source: Gulf News

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DUBAI MARINA, OTHER ICONIC LOCATIONS

REMAIN POPULAR WITH NEW DUBAI

TENANTS Tuesday, February 04, 2020

Dubai’s most iconic communities were the most coveted locations by tenants last year, in part driven by

significantly more competitive rents. According to a report by Allsopp & Allsopp, the popularity of communities

such as Dubai Marina, Downtown Dubai and Palm Jumeirah is another important factor for many tenants,

especially new residents who often equate living in Dubai with these popular neighbourhoods.

“Dubai Marina, Downtown Dubai and the Palm Jumeirah will continue to be Dubai’s most sought-after

communities among tenants,” Allsopp & Allsopp said in its report. “When expats move to the city, these pillar

communities are already familiar and are what they had envisioned when they had pictured their life in the

cosmopolitan city of Dubai.”

Palm Jumeirah and Dubai Marina are also great locations for tenants looking for bargain deals in the one-, two-

and three-bedroom apartment category. According to Data Finder, apartments on the Palm Jumeirah were

renting for a median price of Dh116,000 in January last year, but now the median price has dropped 12 per cent

to Dh102,000.

Dubai Marina saw a 6 per cent drop from a median price of Dh75,000 in January last year to Dh70,000 this year.

According to Data Finder, other locations where rental prices of one-, two- and three-bedroom apartments have

dropped by a good amount are Barsha Heights, which saw a 16 per cent decline from Dh72,000 in January last

year to Dh60,000 this year, Jumeirah Village Circle (JVC), which had a 13 per cent drop from a median price of

Dh47,000 to Dh41,000, and Motor City, which saw an 8 per cent decline from a median price of Dh60,000 to

Dh55,000 during the same period.

Allsopp & Allsopp, which conducted its own research that included studio apartments, noted that Dubai Marina is

popular to tenants new in Dubai. “Dubai Marina was the most popular area for 2019 with an average rental price

of Dh98,405,” the company said. “This is the second consecutive year that it has come out on top. Dubai Marina is

a vibrant community and is very popular with tenants who are new to Dubai. The community caters to everyone

with studio apartments for singles, an array of properties for couples and large apartments and a few

townhouses for families.

“Coming a very close second for rental popularity is Downtown Dubai where the average rental price for 2019 was

Dh109,000. Downtown Dubai is the most-coveted location for tenants. The area is the epitome of Dubai with the

world’s tallest tower, Burj Khalifa, Dubai Mall, Dubai Opera and a plethora of restaurants and cafes only a stone’s

throw away.”

According to Data Finder, Reem’s median price dropped 14.5 per cent from Dh120,000 in January last year and to

Dh102,500 today, The Springs saw prices go down 4 per cent from Dh125,000 to Dh120,000, while Emirates Hills

had an even bigger decline of 39 per cent from Dh600,000 to Dh365,000. Mirdif had a 4 per cent drop from a

median asking price of Dh115,000 to Dh110,000 and Town Square saw rents decline 16 per cent from Dh98,500 to

Dh83,000.







Source: Gulf News

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DUBAI RACES TO COMPLETE 160,000

HOTEL ROOMS BY OCTOBER Tuesday, February 04, 2020

With only a few months left for Expo 2020 Dubai, what does it mean for Dubai’s hospitality sector? According to

the 2019 Index Hotel Markets Report, the Expo is expected to generate $44 billion (Dh161.59 billion) in revenue

from tourism across the GCC.

The report says Dubai is aiming to complete 160,000 hotel rooms by October.

This incoming new supply will put pressure on average daily rates (ADRs), as well as occupancy. Matthew Sexton,

managing director and partner at SAY Studio, a Dubai-based design firm, says it will be a hugely competitive time

for the hospitality industry.

As the market prepares to host Expo 2020 from October 20 through April 10 next year, hotel rooms are being

competitively priced in an effort to stimulate demand and keep up with accelerating room supply.

According to STR’s August 2019 data, Dubai’s hospitality sector experienced a 7.6 per cent year-on-year growth in

supply and a 7.4 per cent year-on-year growth in demand.

But occupancy over the same period only fell 0.2 per cent and the average daily rates dropped 12.5 per cent to

reach Dh389.11. Revenue per available room (RevPAR) also recorded a drop of 12.6 per cent to Dh266.57.

Tim Cordon, area senior vice-president at Radisson Hotel Group, Middle East & Africa, agrees that the hospitality

market is “not at its peak performance as it was before.”

But “there are opportunities for select hotels with the right brands and the right operating model to do really well

in Dubai — as the city becomes more internationally competitive.”

Experts feel with the influx of tourists visiting and new demographics operating in Dubai, the hospitality sector is

learning and adapting its strategies and offerings to tailor to the needs of that audience. “To stay ahead hotels

have to constantly evaluate their offering,” agrees Sexton. He highlights three fundamental focus areas for

hoteliers to remain in the running for 2020 — customisation, sustainability and refurbishments.

Customised rooms

According to a research, Drivers of Change in Hospitality by InterContinental Hotels Group (IHG) and Amadeus, a

hyper-personalised room could be one of the big changes out on the hospitality horizon.

“It’s the beginning of the end for the traditional fixed-interior hotel room,” says Sexton.

“Guests can already customise things like what they watch by streaming their own content through the in-room

TV or connecting to the speakers via Bluetooth. But what hasn’t happened yet is rooms being designed in such a

way that they become flexible, not your static single, double, twin, suite or family room.

"We envisage a space where gym bunnies are able to swap desks for yoga mats, parents can replace the TV for a

play space and business travellers can add in router boosters and VOIP hardware.”

Hotel accommodation, which has traditionally been bought in a standard and uniform way, will need to adapt, as

61 per cent of global travellers state a preference for hotels to be priced in a way that allows them to add bespoke

options.







More sustainable

As consumers become careful about the future health of the planet, the concept of “conscious travel” is becoming

important. This revolves around the idea of social consciousness being part of the travel experience.

So hotels, says Sexton, will need to highlight their sustainable credentials front and centre to match and attract

these fast-evolving consumer sentiments.

“We have definitely seen more and more clients wanting to incorporate sustainable elements in their interiors.

Hotels need to incorporate these elements, from 100 per cent recycled glass tiles and counter tops to organic

carpet tiles, recycled ground-paper-pulp wallpaper, designer seating made from scrap metal to match the needs

of the planet,” he says.

Also, regular refurbishments are needed to maintain customer loyalty, market share and room rates. “The

majority of hotels in the UAE have crossed the seven-year operational threshold and many are in need of

refurbishment,” says Sexton.

Stephen Meredith, general manager of Taj Jumeirah Lakes Towers, agrees that sustainability will be at the core of

the hotels offering, underpinning all operations and processes.

Taj Jumeirah Lakes Towers opened doors in December and in keeping with the brand’s focus on creating

sustainable practices, the hotel has introduced paper-less check-in and uses plant-based compostable food

packaging wherever possible.

“The visitor influx for 2020 will be primarily felt towards the second half of the year,” says Meredith.

“With excellent infrastructure, greater variety of leisure activities and accommodation, Dubai is positioning itself

as a ‘must visit’ tourist destination.

"The significant increase in the number of hotels and rooms releasing into the market will be hugely

advantageous for travellers as they benefit from competitively priced room rates. But long term, the effects are

less certain.

"I hope significant investment in innovation and infrastructure will ensure a consistent flow of visitors to the city;

and continue to keep the hospitality industry buoyant post Expo 2020.”

Source: Gulf News

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DUBAI’S REAL ESTATE SECTOR HAS

DEMONSTRATED ITS RESILIENCE – DLD Tuesday, February 04, 2020

Dubai: The Director General of the Dubai Land Department, Sultan Butti bin Mejren, said Dubai’s real estate

sector has demonstrated its strength and resilience over the last few years and is set to enter a new phase of

development with the approach of Expo 2020 Dubai.

The emirate’s real estate sector saw its turnover rising to Dh228 billion in 2019 from Dh221 billion in the previous

year.

Giving an overview of the sector’s performance in 2019 at a ‘Meet the CEO’ event organised by the Government of

Dubai Media Office (GDMO) on Tuesday, Bin Mejren said Foreign Direct Investments (FDI) in Dubai’s real estate

market grew to Dh106 billion in 2019 from Dh90.5 billion in 2018, signifying the emirate’s continued attractiveness

as an investment destination.

‘Meet the CEO’ is a regular series of press events organised by GDMO for leaders of prominent Dubai

organisations. Both local and international media attended the event.

“In recent decades, the real estate sector has added significant value to the emirate’s economic development and

its global profile. Bolstered by a recovery in the market, the sector also contributed significantly to Dubai’s GDP

growth this year,” he said.

The UAE topped the list of five leading nationalities that invested in Dubai last year, followed by India, Saudi

Arabia, Pakistan, and the United Kingdom. Real estate investments by women rose to Dh27.5 billion in 2019 from

Dh21.8 billion in 2018, he said.

The number of tenancy contracts registered last year reached 530,000, representing a total value of Dh54 billion.

The Department issued 466 new real estate licenses, 1,032 new real estate brokerage cards and 11 real estate

practice cards.

As for projects sold on the map, 82 projects were completed and 72 new guarantee accounts were opened in

2019. The Department also issued 4,815 real estate permits, increasing the number of real estate offices to 13,173

as of the end of 2019.

Source: Gulf News

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EX-DRAKE & SCULL CHIEF FIRES BACK AT

NEW CRIMINAL CHARGES Wednesday, February 05, 2020

Dubai: Khaldoun Tabari, founder of Drake & Scull International, in its time one of the region’s leading contracting

firms, has refuted the new set of criminal charges filed against him in Abu Dhabi. These charges, filed by the

current DSI management, relate to incidents during Tabari’s tenure as CEO and vice-chairman.

“Even a cursory examination of the unfounded allegations made by DSI shows that they are unwarranted

commercial claims and not criminal complaints,” said Tabari. “These claims have also been accompanied by a

smear campaign that is feeding misinformation to the media, further underscoring the questionable tactics

employed by DSI’s new management throughout this process.”

This is Tabari’s first formal statement since DSI announced last week in a statement - on DFM and to the media -

that fresh criminal complaints have been filed. It is the office of Abu Dhabi Public Funds Prosecutor that is

investigating the charges, which state that Tabari misused/mismanaged company funds during his tenure. That

not just he, but his family members too benefited from this.

It was in summer last year that DSI revealed it had racked up accumulated losses in the billions of dirhams, and

that it had started internal investigations into the former management and some of its dealings. In particular, DSI

wanted to examine how some of the company’s overseas subsidiaries were set up and the deals that they

oversaw. DSI also said that some of the annual losses were never reported at the time, which explains the size of

the accumulated losses.

No hand in the decline

In the statement released early on Wednesday (February 5), Tabari said: “As CEO and Vice-Chairman of Drake &

Scull, I had successfully worked with the Board of Directors to take the company to the highest success. “My

tenure saw the company grow. More importantly, all activities undertaken at the time — from the company’s

acquisitions and geographical expansion to its initial public offering — were strictly implemented within the

confines of Emirati laws and regulations and international best practices.”

Tabari, a Jordanian national, was detained recently at the country’s international airport and the passport

confiscated. This followed an alert sounded by Abu Dhabi authorities against him, pending an investigation into

the criminal charges. Sources have said efforts are on to get an extradition from Jordan.

Counter claims

The statement also has Tabari reiterating that the current DSI management “owes him several million US dollars

— a claim confirmed by a recent Dubai Court judgment”.

Tabari added that Drake & Scull’s IPO was overseen by a committee composed of “reputable international

businesses and consultants”, which included HSBC, Earnest & Young and Deloitte.

“DSI’s financial statements were subject to internal and external audits by various world-class firms, meaning that

questioning the validity of these statements — which have also been approved by the Emirates Securities &

Commodities Authority (ESCA) — essentially constitutes an affront on the reputations and integrities of countless

firms and individuals around the globe,” the statement adds.

WHY A NEW SHAREHOLDER WAS BROUGHT IN







With the local construction sector in a downturn, Drake & Scull International had accumulated losses of Dh1.7

billion by 2017.

At the time, its then board of directors and General Assembly decided to reduce the company’s capital by 75 per

cent and "extinguish its accumulated losses, which amounted to Dh1.7 billion.

"It was at that point — on February 17, 2017 — that the UAE-based private equity firm, Tabarak Investment, made

an official offer to the Board of DSI to become a strategic shareholder and invest Dh500 million in the company

upon approval by ESCA and other regulatory bodies," said Khaldoun Tabari, ex-CEO and founder.

"The offer came with the strategic partner appointing two seats on the Board to be followed by the appointment

of the CFO. These appointments were made nearly eight months prior to any funds being injected into the

company and gave Tabarak effective control of the company from outset."

* In May 2017, Tabarak approached Khaldoun Tabari and requested to "buy his shares at below market price",

Wednesday's statement from Tabari said. "This was conditional upon Tabari and his daughter resigning from the

Board and voting in favor of the capital increase.

"The agreement was accepted and the terms were met. Tabari also received an indemnity and release from

Tabarak for both himself and his daughter."

Tabari in his counter says: "Is it even remotely feasible for such a major investment company to enter a strategic

partnership in a company without undertaking the necessary financial due diligence and feasibility assessments?"

Tabark’s entry was based on their own board of directors’ belief in the financial soundness of such an investment,

he added.

According to him, Tabarak had worked with Drake and Scull executives, PricewaterhouseCoopers (PwC) and

Clifford Chance to conduct a comprehensive audit of all financial statements upon the receipt and approval of

Tabark’s offer in February 2017. The company’s restructuring efforts commenced during the same month and the

measures to raise the company’s capital by Dh500 million were completed in October 2017.

Source: Gulf News

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DUBAI’S REAL ESTATE DATA WILL NEED

FILTERS Thursday, February 06, 2020

In an “American Economic Review” paper, Peter Kennedy complained that statisticians often use formulas to get

answers - but lack the understanding for their practical application. In today’s world, we see the output of this

confusion in many forms when headlines scream “Growth accelerates even as unemployment rises”.

Or alternatively, “Transactions reach historical high in real estate even as prices fall”. For us to make sense of this

incongruence, we need to look behind the data to construct an alternative model that has better explanatory

power.

In Dubai, there has been a surge in offplan transactions, driven by payment plans, at prices that have been more

than 30 per cent higher than their equivalent in the secondary market. Indices have been unable to account for

this price variance, focussing their index construction on secondary market sales, which have a number of

problems given the nature of heterogenous assets and underlying differences that cannot be accounted for.

Need for more than one indexing

In this environment, an easy fix would be for data providers to construct two alternate price indices; one for the

primary market (adjusted for payment plans) and one for the secondary market (where prices have fallen and

trade at a discount). When this is done, we observe that in the primary market, prices have remained stable on a

per square foot basis. And in some communities, have even risen marginally.

This indicates that there is a latency of demand not only for new builds, but primarily for products that have

fractionalized payment plans. Yet, despite this demand, launches have fallen across the board, indicating that a)

developers have now reached the outer limit of these post-handover payment plans, and/or b) there is limited

ability to service subsequent payments as the practice of “flipping” the properties have receded.

Stark differences

When we look at secondary transactional data, there appears to be a widening chasm between “min/max” values.

It suggests that, at the margin, the properties that are being resold at the lower end of the spectrum are the ones

that are of lower quality. And reflective of the liquidity constraints that the owner has and/or otherwise

commoditized in nature suggesting that minimal upgrades have been done to upkeep the property.

Meanwhile, at the “max” end of the spectrum, recorded prices have incorporated the distinguishing features of

these heterogenous assets, including maintenance of the asset, as well as in certain cases, payment plans that are

being offered in the ready market.

Given that the latter is less frequently transacted than the former, intermediaries are incentivized to focus on the

primary space, and the “aggregate” mean prices reflect the downward trend that everyone keeps talking about.

What this suggests is that there should be a set of indices that are constructed that reflects three distinct markets

at the minimum: one where payment plans are being offered and one where there are not, regardless of whether

they are in the primary market or not, and one that distinguishes the primary from the secondary market place.

Make better sense of them







With these filters in place, we can start making better sense of what is transpiring in the ecosystem, having

isolated for a) payment plans b) primary and secondary market offerings and c) the effect that upgrades have on

the property. Currently, the data distribution pattern does not adequately account for all of these distinctions,

making the job of valuators more difficult.

But in sample sizes where this is accounted for, a very different picture starts to emerge. It indicates that prices

where payment plans have been offered have remained broadly stable, and the value of price declines have been

exaggerated.

However, given the lack of a comprehensive data set, valuators have resorted to “aggregate pricing” models,

thereby artificially devaluing the value of the collateral, and thus entrenching the malaise that investors feel. And

thereby strengthening the disincentive to invest.

In more developed markets, where such variables are captured, the effect of the upgrades becomes more visible.

(In markets such as Australia and America, the impact is as much as 25 per cent.)

And liquidity starts to unlock as the value of the collateral is not artificially devalued.

Data sets are important, but so are the filters that we use in order to construct our version of reality. Only when

we are equipped with such tools will we be better able to glimpse at the underlying dynamics on the ground and

be better informed in our decision-making.

This is part of the challenge for the "Smart City" this year.

- Sameer Lakhani is Managing Director at Global Capital Partners.

Source: Gulf News

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OYO HOTELS & HOMES UAE EXPECTS 25%

GROWTH IN BUSINESS TRAVEL FROM INDIA

IN Q1 Monday, February 03, 2020

OYO Hotels & Homes UAE is expecting to see a 25 percent increase in business travel from India in the first

quarter of the year.

According to a release from the holiday home outfit, January already saw an 18 percent increase in business

travellers from India, which has largely been attributed to the busy exhibitions and conferences industry in the

UAE.

“As per recent reports, Dubai’s tourism industry closed a successful decade by the end of 2019, welcoming an all-

time high 16.73 million international overnight visitors. India was one of the six top source markets with close to

two million travellers visiting Dubai. This further reinforces the fact Dubai is growing as a must-visit destination for

Indian tourists,” mentioned Pranav Mehta, country head, OYO Hotels & Homes, UAE.

OYO currently manages over 15,000 rooms across the UAE and has served close to 200,000 guests from more

than 80 countries.

OYO Hotels & Homes UAE aims to grow its market share and touch 150 Hotels by the end of 2020 through its

globally followed ‘Manchise’ business model.


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UAE CONSTRUCTION FIRM SAID TO BE IN

TALKS TO RESTRUCTURE $545M DEBT Monday, February 03, 2020

Abu Dhabi-based construction firm Al Fara’a Group is in talks with banks to restructure about AED2 billion ($545

million) in liabilities, according to people familiar with the matter.

A large chunk of this is held by local lenders including Abu Dhabi Commercial Bank and First Abu Dhabi Bank, the

people said, asking not to be identified because the matter is private.

The group has been facing difficulties for a number of years and has cut thousands of jobs, delayed payments to

employees and vendors, some of the people said.

Established in 1980, privately-held Al Fara’a once employed 18,000 people. It is active in oil and gas, steel, interiors

and concrete, and has worked on several mega-projects across the Middle East, according to its website.

The group’s troubles highlight how construction firms in the Gulf are struggling as lower oil prices force

governments to cut spending. Saudi Binladin Group is seeking to restructure about $15 billion in debt, while

Drake & Scull International last year fired its chief executive officer, chief financial officer and chief legal officer as

the Dubai-based contracting and engineering firm posted a record loss.

Al Fara’a’s Unibeton subsidiary has supplied concrete to projects including Dubai’s Expo 2020 and Riyadh Metro,

according to its website.

Representatives of Al Fara’a didn’t respond to requests for comment. First Abu Dhabi Bank declined to comment.

Abu Dhabi Commercial Bank didn’t respond to a request for comment.


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DUBAI DEVELOPER SOBHA TARGETS $680M

SALES IN 2020 Tuesday, February 04, 2020

Sobha Realty, the Dubai-based premium real estate developer, on Tuesday announced a AED2.5 billion ($680

million) sales target for 2020.

Following sales of more than AED2 billion last year, the company said it is on track in advancing its flagship master

development Sobha Hartland, generating strong returns.

PNC Menon, founder and chairman of Sobha Realty, said: “The year 2020 is an exciting one for us at Sobha Realty,

as well as for the city of Dubai as a whole.

With the much-anticipated mega event Expo 2020 Dubai kicking off in October, and the enabling environment

created by strategic government initiatives and reforms, our outlook for the coming year is positive, and we

anticipate a strong resurgence in the real estate market.

"At Sobha Realty, we have set our sights on supporting this growth around the city and look forward to welcoming

local and international investors that are keen to make Dubai their home.”

He added: “We are confident that we can surpass the 2019 sales target by a substantial 25 percent.”

The company also announced that more than 900 units are scheduled for handover during the year.

In 2019, Sobha Realty sold 1,491 units, comprising a net area of 1.23 million sq ft, with Creek Vistas emerging as

the most popular project within the development, followed by Greens and Estates villas.

The year-to-date results marked a 165 percent increase in sales value over the same period in 2018.

Launched in 2014, Sobha Hartland is an eight million sq ft luxury freehold master development situated in

Mohammed Bin Rashid Al Maktoum City, overlooking Downtown Dubai.

Key projects within the community include Greens, Creek Vistas, Creek Vistas Reservé, Gardenia Villas, Garden

Houses, One Park Avenue and Forest Villas.


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DUBAI'S DRAKE & SCULL COMPLETES TWO

CONTRACTS ON KEY KUWAIT PROJECTS Tuesday, February 04, 2020

Dubai-based Drake & Scull International (DSI) has announced that its Kuwaiti subsidiary has successfully

completed major engineering and construction projects on the country’s Sheikh Saad Al-Abdullah Al-Salem Al-

Sabah Indoor Sports Complex and Sabah Al-Salem University City.

Under the terms of its AED71 million electromechanical engineering contract with the Sheikh Saad Al-Abdullah Al-

Salem Al-Sabah Indoor Sports Complex, DSI Kuwait was responsible for supplying, installing and connecting fire

alarms and sprinklers; heating, ventilation and air conditioning; telephones, internet and satellites; and a state-of-

the-art scoreboard.

The Sheikh Saad Al-Abdullah Al-Salem Al-Sabah Indoor Sports Complex was officially inaugurated during the

opening ceremony of the 19th Asian Men's Handball Championship last month.

DSI Kuwait added that last week it completed the final phase of its AED200 million contract initiated in 2019 on

Sabah Al-Salem University’s College of Arts and Education.

The project comprised plumbing, fire alarm and HVAC systems as well as the supply, installation, testing,

commissioning and maintenance of all the building’s electromechanical works.

DSI chairman Shafiq Ahmed Saleh Abdelhamid said: "These two key projects demonstrate DSI Kuwait’s strong

capabilities in executing complex, high-quality work. We thank our Kuwaiti partners for their trust and

cooperation and look forward to continuing to deepen and expand our presence in the Kuwaiti construction

sector.”


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DUBAI PROPERTY PRICE DECLINES SLOW

TO LESS THAN 1% IN JANUARY Tuesday, February 04, 2020

Dubai property price declines continued to slow in January, a trend that began last summer, according to new

research from real estate consultants ValuStrat.

Its index covering residential values in the emirate showed a fall of 0.9 percent since December, with prices 10.3

percent lower than January 2019.

"The first month of 2020 continued the trend of capital values declining less than 1 percent, a trend which began

in June last year," ValuStrat said in the reported.

It added that properties in all areas of Dubai saw monthly declines, the highest of which was Discovery Gardens

and Dubai Production city with a 1.3 percent drop compared to December.

The lowest monthly declines (0.7 percent) were seen for villas and townhouses in The Meadows, Al Furjan and The

Lakes.

The weighted average residential price per square foot fell below AED1,000 in August 2019, and is currently at

AED949 per sq ft, close to average rates eight years ago when the market initiated a recovery cycle.

ValuStrat said the first month of 2020 witnessed fewer off-plan sales transaction volume, declining 20 percent

when compared to December while ready homes volume jumped 37 percent month on month, representing 47

percent of all residential sales in the month.

Properties developed by Emaar, Dubai Properties, Nakheel, Revi Real Estate, Al Mizan International, and Damac

Properties, topped the sales charts overall.

Top off-plan locations transacted during January were in Jumeirah Village, Arjan, Business Bay, Downtown Dubai,

Jumeirah Beach Residence and Dubai Creek Harbour.

Most transacted ready homes were in Arjan, Dubai Marina, International City, Town Square, and Jumeirah Village.


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TEMPORARY POP-UP HOTELS MAY BE

HEADED TO MIDDLE EAST SOON Sunday, February 02, 2020

Temporary ‘pop-up’ hotels will become increasingly common in the hospitality sector amid growing demand for

new experiences, according to author and expert Gaurav Sinha.

The Dubai-based Sinha established luxury hospitality and tourism-focused branding and communications firm

Insignia Worldwide in 2003, as well as Quillon Hospitality, a development advisory and hospitality management

company. Additionally, Sinha is the founder of IN.TRAVEL network, an outsourced sales representation and

revenue optimisation firm for hotels.

In an interview with Arabian Business, Sinha said that he believes “hotel experiences will evolve” over the coming

years.

“You may have hotels, or destination resorts, that have their own vertical farms attached to their rooms,” he said.

“You might get the freshest lettuce from your resort. You won’t have to import it from Fiji or wherever.”

Another possibility, he added, is the concept of ‘pop-up hotels’ that are set up for time periods of just a few days

or weeks.

“Who says that hotels have to be permanent? I think we’ll see a rise in these pop-up hotels,” he said. “You’ll have

portable hotels which will come up. You can plant ‘pods’ in Fujairah and have a hotel that comes up for the

weekend and moves somewhere else.”

“Those are the new experiences that people will follow,” he added. “Content programming, or what you do within

a property, is going to become even more important.”

Although still relatively rare, the concept of pop-up hotels is already being implemented by a number of firms

around the world.

In August 2019, for example, Taco Bell opened a themed pop-up hotel concept in California consisting of

approximately 70 rooms for a period of four days.


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WEWORK MAKES UAE DEBUT WITH HUB71

WORKSPACE TIE-UP IN ABU DHABI Monday, February 03, 2020

Hub71, Abu Dhabi’s tech ecosystem, has officially launched WeWork x Hub71, three floors of workspace offering

1,200 desks for members to innovate, collaborate and connect in Abu Dhabi Global Market.

The building is WeWork’s first location in the UAE and its first members moved in earlier this month, including

Hub71’s global community of startups, venture capitalist firms and tech accelerators.

Adding to the growing community, it was also announced that four new start-ups – Jordanian company Rizek,

UAE-based fintech companies Sarwa, denarii cash and US-based Securrency, a New York founded pioneer of

blockchain technology – have been admitted into the Hub71 Incentive Program, bringing the total number of

start-ups at Hub71 to 39.

Ibrahim Ajami, head of Ventures - Mubadala Capital and Acting CEO of Hub71, said: "The launch of the new

WeWork x Hub71 is another positive proof point for Abu Dhabi’s tech and startup ecosystem. Our mission is to

provide entrepreneurs with community support and market access as they grow their businesses. The WeWork x

Hub71 community is a fundamental part of our strategy to enable entrepreneurs with differentiated offerings."

Riad Thoumas, UAE general manager, WeWork, added: “The way that we work is changing, and WeWork is at the

forefront of this change. We believe people are more productive and creative when they are comfortable and

happy in their work environments, so we provide our members with the best spaces and services.

"It’s clear that there is huge momentum building in the capital, particularly in the tech start-up space, and our

partnership with Hub71 and Mubadala reflects a change in the way that companies, large and small, are choosing

to work. What sets us apart is our community and our ability to create a buzzing culture of collaboration – and

we’re looking forward to watching our WeWork x Hub71 community grow and thrive.”

With 740 locations in 140 cities across 37 countries, there are over 662,000 WeWork memberships worldwide.

WeWork is an American commercial real estate company that provides shared workspaces for technology start-

ups and services for other enterprises. Founded in 2010, it is headquartered in New York City.


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ELLINGTON SAYS WILTON REAL ESTATE

PROJECTS IN DUBAI HAVE SOLD OUT Monday, February 03, 2020

Dubai-based Ellington Properties has announced the sell-out success of its Wilton Terraces I and II developments,

set alongside the Dubai Water Canal.

Featuring 283 one- and two-bedroom homes, the Wilton Terraces developments are surrounded by 2.4 million

square feet of greenery in Mohammed Bin Rashid (MBR) City.

The homes are set in two 12-storey towers interconnected by a single podium.

Paula Wehbeh, head of Business Strategy at Ellington Properties, said: “The sell-out success of Wilton Terraces I

and II in a relatively short space of time, indicates not only the buoyancy of the market but also the continued

demand for Ellington homes in Dubai.

"It reflects the trust of investors in the quality of our developments, with strong demand especially from

international investors from markets such as Saudi Arabia, China and Russia.”

Following the success of Wilton Terraces, Ellington Properties launched a further development in MBR City, Wilton

Park Residences.


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UAE’S REAL ESTATE FUNDS BIDE THEIR

TIME Sunday, February 02, 2020

The property price correction in the UAE has triggered many investors to explore alternate investment avenues to

preserve and grow their wealth.

Ironically, the current downturn in the sector is also an opportune time to invest in a real estate investment trust

(REIT).

REITs allow investors exposure to the sector without the risk and hassle of directly acquiring an asset.

As they are listed on a stock exchange, investors can purchase or sell any number of shares depending on their

risk appetite and capital commitments at the time.

As a result, real estate comes within the reach of a much larger pool of potential investors.

REITs versus listed real estate securities

Compared to public real estate securities, REITs are considered a much safer option.

While some developers pay out dividends to shareholders, many of these payments are funded through offplan

sales revenues and proceeds from land bank sales, which can be a threat to the future of the operations of the

developers.

On the other hand, REITs are governed by certain rules when it comes to dividend payouts and maintaining

cashflows — REITs must distribute at least 80 per cent of net income to investors as dividends, ensuring a steady

income stream.

Upsides and downsides

One of the primary advantages of REITs is the tax benefit they offer due to their tax-exempt status or the reduced

tax rates applicable. With the UAE and wider Gulf not having a practice of levying taxes on rental income or capital

gains received by the REIT, as well as no withholding tax on distributions, tax benefits are not essentially the

biggest attraction.

However, liquidity of the investment, stable income through dividend payouts and heightened transparency as a

listed asset continue to be universal advantages.

On the other hand, as REITs are relatively nascent investment vehicles, especially in Middle East markets, the

disadvantages are fundamentally the characteristics of a maturing market. Unclear regulations, fragile corporate

development structures, and a generalised focus as opposed to a sector-specific offering are all being tackled at a

country-level to enhance the appeal of REITs.

For example, while UAE, Saudi Arabia and Bahrain have already introduced regulations governing REITs, others

including Oman and Bahrain are working to put in place their respective policies. REITs also face some other

challenges including limited scope for diversification given the nature of the investment and fluctuating trading

volumes on the secondary market, where the shares might trade at a discount to NAVs. (This is currently the case

with ENBD REIT and Emirates REIT in the UAE.)

Then there is the possibility of getting delisted altogether — ENBD REIT is exploring the option to delist from the

Nasdaq Dubai where its shares trade and become privately held to maximise shareholder value.







REITs in the region

Although REITs have been present in the UAE for a decade, with Emirates REIT being the first to be established in

2010, the true potential of the investment option is only being recognised and realised now. Several companies

are in the process of attracting investor interest into their REITs, but waiting for the right time to enter the market,

given the current property downturn.

The Palmon Group will wait until 2021 to list its Manrre Reit and Dubai Investments subsidiary Al Mal Capital is

also expected to float a mixed-use fund soon.

Even in the wider Middle East, the uptake has been slow. Over the last five years, only 9 per cent of REIT Initial

Public Offerings (IPOs) have been in the Middle East. Here too it was mainly countries such as Saudi Arabia that

saw a flood of listings after the Capital Market Authority (CMA) gave a go-ahead to REITs in 2016, keeping with the

National Transformation Programme (NTP) and the Saudi Vision 2030 diversification strategy.

The kingdom’s tryst with REITs got off to a rough start experiencing hiccups from insufficient due diligence and a

generally tepid real estate climate. As a result, in early 2018, dividend yields on Saudi Arabia’s REITs were below

the global average. And compared with UAE, where REITs were offering dividend yields that were 14 per cent

higher compared to the global average.

Despite initial challenges, improved regulations and more defined corporate governance structures are expected

to strengthen Saudi Arabia’s REITs market.

Global benchmarks

Overall, a low reading of 2.7 per cent CAGR (compounded annual growth rate) since 2009 for the Middle East and

Africa REITs Index, according to S&P Capital IQ, compared to mature markets reflects the tremendous upside

potential the market possesses.

To draw a more similar comparison, we can look to an emerging market like Singapore — the city-state has

established itself as a sought-after destination for Asian REITs. Although REITs have prevailed in Singapore for a

longer period, factors such as specialisation of assets classes and expansion of activities to include overseas

assets are some of the factors that have worked well for the investment class.

Source: Gulf News

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DUBAI PROPERTY: HIKES UNLIKELY ON

HOME SERVICE CHARGES Monday, February 03, 2020

Dubai: Service charges on freehold property in Dubai are unlikely to see any sharp increases this year as a new

law takes full effect. Property owners may also have something to look forward to – what they are paying out on

maintenance and other works could even drop next year.

That’s because the Real Estate Regulatory Agency (RERA) has taken complete control in the auditing of property

maintenance costs and how service charges are set. There are 19 authorised audit firms chosen by RERA to do

this work for owner associations and the companies representing homeowner interests.

“Before the Law, an OA/developer could appoint XYZ company to do the audit and that was submitted to RERA

and approved,” said Saeed Al Fahim, CEO of Stratum Owner Association, which oversees a portfolio of more than

10,000 units in Dubai. “Now, they can’t do that – RERA has appointed its own external auditors to go over the

books and come up with their own decisions.

“Effectively, RERA is setting the budget and the service charges. And RERA is unlikely to be swayed by requests to

raise service charges immediately if an OA or developer had been operating on a lower charge for two or three

years.”

It was in November last that the new Law - on “Jointly Owned Property” – was rolled out and effectively

empowered homeowner associations to be responsible for the upkeep of their assets. The Law also placed RERA

right in the centre of overseeing that all the changes are carried out in full.

Now, all financial audits of the previous must be submitted to RERA by January 30. By March 15, the budget

reviews need to be done with. (Earlier, there was no set timeline.)

Wide-ranging consequences

The JOP Law does pack quite a punch. Here are two key takeaways from it:

• A developer must file documents that would set up an owners association within 60 days of receiving a

completion certificate for that project. A further extension of 30 days could be granted. But there would be no

leeway for any developer to keep postponing the step.

• The developer cannot have a direct role in setting up budget to operate and manage the building post-

handover.

“The spirit of the Law is not only to arrest the upward “creep” of service charges, but to increase transparency, the

collections from property owners, and enforcement such that overall service charges reduce,” said Sameer

Lakhani, Managing Director at Global Capital Partners. “This, however, will take some time to have an effect. There

will be some relief for property owners, that’s for sure.

“There will be an onus on OA companies to ramp up procedures and due diligence, which will require an increase

in their overhead costs. This will exert pressure on smaller OA companies - we can expect a number of

consolidations to occur.”







Pay up… or else

What Lakhani says about service charge collections – or the missing part of it – is valid. Stratum’s Al Fahim says

that nonpayment from property owners among the 12,000 units the company handles is about 40 per cent. Other

industry sources say they also face similar payment holds in their service charge collections.

It could be because most of these units are leased, and with the owners abroad. The thinking until now has been

that while OAs and OA management companies can make a lot of noise, there was little they could do to actually

get people to pay up.

But the new JOP Law provides for a remedy… a strong one. “Within one month of non-payment, a legal notice can

be issued to the owner,” said Al Fahim. “Then they can go to the Rental Dispute Committee (under Dubai Land

Department) and get the unit blocked… and if need be, put up for auction.

“The Law is clear – each building will have its own budget to operate on. If all property owners are not paying up,

the whole thing collapses. By empowering OA management firms, property owners who do not pay their service

charges are not going to have it easy.”

Tightening up ‘sinking’ charges

Under the Law, from the fees collected, 15 per cent will have to be set aside for “sinking costs”, which relate to

maintenance or repair work that needs to be done at a building as it ages. The other 85 per cent will be used for

sundry work required within that calendar year.

All of the funds thus collected will be kept in escrow, with the sinking fund reserve maintained separately.

“OAs will no longer be able to tap into the sinking fund as and when they please,” said Al Fahim. “RERA and their

auditors will need to given due reasons for any use of the sinking fund. Everything related to property upkeep is

becoming more transparent by the day… the Law has accelerated the process.”

Homeowner committees

RERA will also need to sign off on each OA committees, and this too marks a major improvement from the past.

“End-users living in their properties will be given preference in the committees, not investor-landlords,” said Al

Fahim. “RERA will issue emails inviting submissions to be on the OA committees.

“Those with a direct interest in the building now have the edge – the Law has clearly done away with all the gaps

that were there in the past.”

Source: Gulf News

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FINANCE BILL 2020: BENEFITS NRIS ENJOY

AS UAE RESIDENTS Monday, February 03, 2020

An Indian citizen, who is having a permanent home in the UAE and has his employment or business in the UAE,

and spends most of his time in the country, will not be affected by a new provision in the Finance Bill 2020, as he

is deemed a resident of the UAE, the Government of India said on Sunday.

The clarification was made to dispel doubts about a fresh provision in the Finance Bill 2020. As per the Sub-

section (1A) in Section 6, an Indian citizen will be deemed a resident in India if he is not liable to tax anywhere

else. Under that sub-section, if he also becomes a resident in India, it becomes a case of tie-breaker. The tie-

breaker rule is applied in accordance with Article 4 of India UAE DTAA.

Providing more clarity on the issue, the Indian government said that an Indian citizen staying in the UAE for 183

days or more in a calendar year is deemed a resident of the Emirates as per the UAE law, and can benefit from

the bilateral Double Taxation Avoidance Agreement that exempts him from taxation in India.

The first tie-breaker rule is to ascertain where the person has a permanent home. If he has a permanent home in

UAE only, the tie-breaker test is resolved in favour of him being a resident of UAE.

According to the government, if he has permanent homes in both the UAE and India, we go to the second test,

which is the center of vital interest being personal and economic relation. If a person is employed only in UAE or

has a business establishment only in the UAE or has a source of income only in the UAE, then his economic

relation would only lie in the UAE. Under such a scenario, he would become a resident of the UAE.

If he has a personal and economic relation both in India and in UAE, the next tie-breaker test is where does he

habitually reside. Habitually abode criterion is decided based on period of time one stay in a country. If a person

actually resides only in the UAE and occasionally visits India, he would be resident of the UAE, the government

explained.

Following scenarios will illustrate the tie-breaker rule:

In the first scenario, an Indian citizen has permanent home only in India and he starts staying in the UAE to avoid

payment of tax in India. In this case, he would be resident in India and would be liable to tax in India on global

income.

Second: An Indian citizen has a permanent home in India and personal and economic relation as well only in India

and to avoid payment of taxes in India he starts staying in India. He also buys a house in UAE but personal and

economic relation remains in India. In this case, he would be resident in India and would be liable to tax in India

on global income.

Third: On the other hand, if an Indian citizen has permanent home only in UAE he would be resident in UAE and

would not be hit by this new provision.

Fourth: Further, if he has a permanent home in both India and the UAE but personal and economic interest only

in the UAE. For example, he is having employment or business establishment or source of income only in the UAE.

In this case, he will be a resident of the UAE and would not be hit by this new provision.







Fifth: In another situation, if Indian citizen has a permanent home as well as personal and economic interest both

in India and the UAE and if he stays in the UAE regularly and occasionally visits India, his place of habitual abode

would be in UAE and he would be resident of the UAE and would not be hit by this provision.


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DISTRICT 2020 CALLS FOR START-UPS TO

BE PART OF ITS INNOVATION ECOSYSTEM Monday, February 03, 2020

District 2020 has launched a global entrepreneur programme, Scale2Dubai, which enables start-ups and small

businesses to expand internationally by becoming part of its innovation ecosystem.

Evolving from Expo 2020 Dubai, the next World Expo (October 20 to April 10, 2021), District 2020 will be a mixed-

use community and innovation ecosystem that will contribute to the growth of Dubai's innovation economy.

Targeting enterprises across the world, District 2020's Scale2Dubai programme will build on the platform

provided by Expo 2020 and carry forward the mega event's vision of gathering global minds, while also promoting

diversity, innovation, and knowledge-sharing to create lasting benefits for organisations.

The programme will enable start-ups and global innovators to scale their businesses in Dubai by capitalising on

the partnerships formed through their country's participation in the first World Expo in the Middle East, Africa,

and South Asia (MEASA) region.

Successful applicants to Scale2Dubai will benefit from a soft-landing into Dubai within District 2020, given the

support they need to scale, adapt, and establish themselves in the UAE. The benefits they will receive include two

years of free working space, support in visa and business set-up, plus more. Additionally, they'll be empowered by

District 2020's unrivalled physical and digital infrastructure, ideal strategic geographic location, and a unique work

and living ecosystem.

The Scale2Dubai programme will draw upon Expo 2020's and District 2020's vision of enabling innovation and

industry growth by providing these small businesses and start-ups the tools and environment they need to break

ground and thrive. District 2020 aims to curate an innovation-driven ecosystem by bringing together businesses,

large and small, from across industries and from around the world to collaborate and gain competitive

advantages.

In line with this ambition, Scale2Dubai is focused on attracting businesses in the early stages of growth that

operate within industries key to Dubai's future and innovation-economy, as well as those involved in the

transformative, enabling technologies central to District 2020's purpose. The start-ups and global innovators

sought for Scale2Dubai will help to diversify the UAE's economy, build a generation of job creators, stimulate

innovation, and serve as a platform that attracts talent - all key components of District 2020's innovative

environment.

The ecosystem will comprise a diverse tenant mix, attracting companies in key growth industries including

logistics and transport, travel and tourism, construction and real estate, and education. District 2020 will also

focus on attracting businesses involved in the disruptive technologies of artificial intelligence, blockchain, Big

Data, and the Internet of Things.

Over 80 per cent of Expo 2020's built environment will be re-purposed into District 2020, which has been carefully

planned to maximise the Expo site's use in the future. District 2020 will create a business environment that

directly encourages progress within key growth industries, and supports sustainable economic development.

Marjan Faraidooni, chief pavilions and exhibitions officer, Expo 2020 Dubai, said: "Launching Scale2Dubai is an

important milestone in our journey towards curating a truly global, future-proof innovation-driven community.

Start-ups and small businesses are a fundamental ingredient of any true innovation ecosystem, as they help to







spark competition with more established companies while attracting venture capital into the community.

Organisations in their early stages of growth also so often contribute fresh ideas and approaches that are hugely

influential in disrupting industries for the better. That's exactly what we want to bring into District 2020, and in

return, Scale2Dubai provides ambitious companies with a platform to reach new international markets."

The programme will facilitate access to enabling platforms such as accelerators and incubators, networks of

mentors, and investors and experts within District 2020's business ecosystem. Small businesses will benefit from

direct connection to Fortune 500 companies, international organisations, and influential partners who will help

them innovate and lead their business and industry forward. The ultimate goal of the programme is to gradually

grow the selected small businesses and integrate them into the District 2020 business community, the UAE, and

the regional marketplace.

Tala Al Ansari, director - Scale2Dubai, District 2020, said: "The Scale2Dubai programme is an incredible

opportunity for international start-ups and small businesses looking to grow. We recognise the challenges that

entrepreneurs face while scaling and have developed a programme that helps them grow their businesses in

Dubai. If you are a start-up or small business that aligns to District 2020's focus industries and enabling

technologies, we are inviting you to be part of our community and to leverage the power of connecting with our

innovation ecosystem."


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ABU DHABI HOTEL MARKET BENEFITS

FROM HIGHER DEMAND AND LIMITED

SUPPLY GROWTH Sunday, February 02, 2020

Hoteliers in Abu Dhabi enjoyed a "sensational" year in 2019 as tourism numbers climbed on the back of a series

of high-profile events, according to hospitality consultancy STR.

Revenue per available room (RevPar), a standard industry measure to gauge a hotel's performance, increased by

7.2 per cent in Abu Dhabi to Dh321 in 2019, as occupancy levels grew 2.3 per cent to 73.4 per cent. Average daily

room rates charged also jumped by 4.8 per cent to Dh437 per room.

“The UAE’s capital had a sensational year for tourism as well as hotel performance,” said Philip Wooller, STR’s area

director for the Middle East and Africa.

“The events calendar was busy with a number of high-profile events, lifting citywide hotel demand. On top of the

well-established Abu Dhabi F1 Grand Prix in December, the city hosted the 2019 AFC Asian Cup in January, the

visit of Pope Francis followed by Idex in February, UFC 242 and IREIS 2019 in September, as well as Adipec 2019 in

November," he added.

The growth in hotel rates was also underpinned by the fact that new supply remained limited, with a JLL report

issued on Sunday stating supply in the capital remained steady at 30,100 rooms last year.

"Further growth is forecast for the market with demand expected to climb higher than previous levels.

Anticipation is high for the completion of Yas Bay, a mixed-use project by Miral, as well as Snow Abu Dhabi on

Reem Mall,” Mr Wooller said.

On Thursday, Statistics Centre Abu Dhabi said hotel revenue for the entire emirate increased by 3.5 per cent to

Dh1.84 billion in the final quarter of 2019. The occupancy rate for Abu Dhabi reached of 79.6 per cent in the last

three months of the year, it added.

Fortunes for hoteliers elsewhere in the region were mixed, though. In Dubai, RevPar dropped 13 per cent to

Dh411 as a slew of new properties opened before this year's Expo 2020. Occupancy rates fell by 0.9 per cent to

74.6 per cent despite higher numbers of tourists arriving in the emirate last year.

Some 7,200 new hotel rooms and apartments were added in Dubai last year — 3,200 of which came to the

market in the final quarter, according to the JLL report. A further 24,000 rooms are scheduled to be added to the

market this year.

Elsewhere in the Middle East, occupancy levels in Beirut dropped by 8.6 per cent over the course of last year.

Although RevPar in the first quarter hit its highest level since 2012 at 128,582 Lebanese pounds (Dh313) per night,

it more than halved by the fourth quarter to 60,847 as the protests, which began in October, hit the tourism

sector hard. Year-on-year RevPar in November and December dropped by 75.7 per cent and 68 per cent,

respectively.







In Egypt, however, hoteliers in Sharm El Sheikh benefited from the lifting of a four-year flight ban from the UK in

October. Overall occupancy rates grew 10.3 per cent on flat supply to 60 per cent, pushing RevPar up 21.2 per

cent to 717.73 Egyptian pounds (Dh167).

Region-wide occupancy rates for the Middle East grew 2.3 per cent to 66.2 per cent.


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HOW ABU DHABI PROPERTY PRICES, RENTS

FARED IN 2019 Friday, January 31, 2020

Average Abu Dhabi property values have fallen by 11 percent during 2019, according to new figures released by

consultancy ValuStrat.

Its quarterly index which tracks prices and rents in the UAE capital said values in the fourth quarter of 2019 fell by

2.6 percent compared to the previous quarter.

It also showd that prices were down by 11 percent compared to Q4 2018 and by nearly 31 percent compared to

Q1 2016, the base figure of the index

ValuStrat said the weighted average residential value in Q4 was AED9,246 per sq m with apartments at AED10,236

per sq m and villas at AED6,910 per sq m.

It added that the residential rental index declined 2.8 percent quarterly and 9 percent annually.

The consultancy also forecast a more positive market sentiment this year due to direct and indirect drivers

impacting tourism, business and the overall economy such as Expo 2020.

It predicted that capital values and rents in the UAE capital would soften at a slower rate and possibly stabilise by

the end of the year due to limited number of new projects handing over.

Increasingly affordable rents, particularly for townhouses and small villas, are expected, its report added.


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CONFIDENCE GROWING IN DUBAI

PROPERTY MARKET DESPITE 'NEGATIVE

TALK' Saturday, February 01, 2020

Confidence is growning in the Dubai real estate market despite the negative talk surrounding it, according to

property broker Allsopp & Allsopp.

The broker said it has seen its total revenue rise by 40 percent in 2019 compared to the previous year, moving

more than 4,000 families into homes.

The company added that Dubai Marina came out on top for the most popular area for leasing for the second year

in a row while the most popular area for sales in 2019 is Downtown Dubai.

Lewis Allsopp, CEO of Allsopp & Allsopp, said: "We have seen an increase in figures throughout the entire

business which shows how much sentiment and confidence there is in the Dubai Property Market despite the

negative talk surrounding it.

"Property prices dropping have given tenants the possibility of upgrading their property size or area and have

given first-time buyers the chance to step onto the Dubai property market. Dubai saw 32,000 new residential

properties handed over in 2019 an increase from the 21,014 in 2018 and there are expectations of an extra

49,000 properties handing over in 2020."

He said the Allsopp & Allsopp average sale price declined in 2019 which has acted as a stimulus for buyers who

were on the periphery of the property market.

He added that tenant registrations have risen again this year by 14 percent, with the average rental price for 2019

falling a further 10 percent to AED132,000.

Allsopp said in a statement: "As a result of the attractive rental prices, we have had tenants registering to upgrade

their homes, in line with this drop in pricing. Areas that may have been out of budget in previous years have been

more achievable in 2019.

"Buyer registration has also increased by 22 percent in 2019 after we saw a decrease in buyer registration from

2017 to 2018. This rise is highly positive. The drop in pricing has encouraged many first time buyers into the

market and even encouraged residents to buy second properties as an investment."

Allsopp & Allsopp said it has also seen an increase in companies paying for rental cheques during 2019.

Allsopp noted: "Companies paying for employee rental cheques is very promising as it suggests that companies

are employing from overseas and are investing more in these employees. As Expo 2020 looms nearer, my

predictions are that Dubai will see more companies paying for rental cheques in 2020."

The average age of Allsopp & Allsopp tenants has risen this year from 28 in 2018 to 44 in 2019 and buyers

average age has risen from 40 in 2018 to 46 in 2019.







Lewis said: "The rise in the average age of clients could be a result of the UAE Cabinets introduction of long term

visas providing families more security in the city. Professionals are more likely to move to the emirate knowing

that they can settle without the worry of visa renewal after only three years."


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BREXIT 'CLARITY' BRINGS MIDDLE EAST

DEMAND FOR LONDON REAL ESTATE Monday, February 03, 2020

As the uncertainty over Brexit clears somewhat, following the United Kingdom’s official departure from the

European Union on February 1, UAE buyers are already setting their sights on London’s real estate market.

According to the latest London Market Update from Dubai-based real estate outfit Core, the election of Boris

Johnson as prime minister, followed by confirmation that Britain has left the EU, has been met with renewed

optimism from Middle East investors.

The report said: “We are witnessing a rise in enquiries for prime central London properties from UAE buyers who

have until now awaited clarity on Brexit.”

Latest data from LonRes shows Q4 2019 transaction volumes increased 34 percent year-on-year, with a particular

spike at the upper end of the market - £5m-plus ($6.6m) transactions were up by 78 percent.

A significant rise was also recorded in the £2m ($2.6m)-£5m range - up 42 percent compared with the same

period last year, while the sub-£2m bracket posted a 20 percent uptick.

Shift in dynamics

However, the report revealed a lack of supply in the UK capital, with the number of available properties on the

market at the end of Q4 2019 19 percent lower than at the same point a year ago.

Alex Casaki, head of the London desk at Core, said: “We are starting to witness a shift in dynamics with seller’s

confidence on the rise and we anticipate lower negotiating margins compared to what was seen during the peak

of the Brexit referendum.”

According to the report, the extent of the pent-up demand that has built over the last couple years is expected to

exert upward pressure on prices. While lower levels of supply volumes are forecast to continue over 2020 as

sellers take a firmer stance on offers.

Casaki added: “With sterling expected to continue gaining upward momentum against the dollar, coupled with the

potential introduction of an additional stamp duty surcharge for non-resident buyers in the upcoming budget,

this is expected to bring forward greater interest for prime central London properties in Q1 2020 - with UAE

buyers potentially capitalising on this window of opportunity.”


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GLOBAL VILLAGE LAUNCHES PROMOTION

TO WIN $380K APARTMENT IN DUBAI Saturday, February 01, 2020

Global Village, Dubai's multicultural festival park, has announced its largest ever promotion in partnership with

Dubai Holding.

With every ticket bought, guests can unlock a chance to win a premium apartment worth AED1.4 million

($380,000) at Manazel Al Khor located in Jaddaf Waterfront.

The raffle is available to all guests who purchase a Global Village entry ticket or through every AED100 loaded

onto their rechargeable Wonder Pass card—a pre-loaded card that allows guests access to their favourite Global

Village attractions with a simple tap.

The winner will be announced during a live ceremony on the last Friday of Season 24.

Bader Anwahi, CEO at Global Village, said: “We are thrilled to host the biggest raffle draw in Global Village history

as part of our commitment to deliver the wow factor to our guests.”

Khalid Al Malik, managing director of Dubai Holding, said: “To celebrate our 15-year anniversary, we are delighted

to offer visitors a once-in-a-lifetime opportunity to own their dream home in one of our newest waterfront

destinations – Jaddaf Waterfront.”

Jaddaf Waterfront is located along the banks of the Dubai Creek and includes a number of unique attractions,

including Jameel Art Centre.


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MBR CITY HOME SELLS FOR DH90 MILLION

TO BE TOP DEAL Sunday, February 02, 2020

Dubai: A 22,858 square feet villa at Mohammed Bin Rashid (MBR) City that sold for Dh90 million was the costliest

property transaction in Dubai last year, followed by a Dh74 million deal for a penthouse on The One at the Palm.

MBR City had another Top 5 entry, with a Dubai Hills home fetching Dh60 million for the seller, according to data

issued by Luxhabitat, the real estate agency, on the Top 10 property deals in the city. Going forward, expect Dubai

Hills to figure prominently in the listings as the cluster of high-end homes builds up sales momentum. It will get a

further pick up when the community mall opens for business.

Firm favourites

Emirates Hills and Downtown offered the third and fourth ranks in the deal list, selling for Dh64 million and

Dh63.41 million, respectively. The Downtown unit has a built-up area of 19,000 square feet, and this could be one

of the biggest deals to originate from that master-development.

The Downtown shines bright - a Dh63.41 deal could be the biggest for that master-development to date.

There was a villa at Umm Suqeim that got the seller a flat Dh50 million, to be placed eighth.


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WHAT EXPO 2020 VISITORS WILL EXPECT

FROM THEIR HOTELS Sunday, February 02, 2020

Dubai’s Expo 2020 is expected to attract over 11 million foreign visitors over the six months that it runs. The boost

that this will provide the emirate’s tourism sector cannot be overstated, so it will come as little surprise that local

hoteliers are already gearing up for the mega-event.

The good news is that UAE hotel groups are starting from a position of strength. According to the Global CX

Happiness Index, the latest research commissioned by Avaya, UAE hotel customers are among the happiest in the

world with an index score of 54.4 (out of 100), against the global average of 49.8.

But how will Dubai hotels push that score up during Expo 2020, and satisfy the needs of visitors flooding in from

192 countries?

The Global CX Happiness Index can provide some insight here. It saw us interview 16,200 consumers in 16

countries to gauge happiness across seven industry verticals – including hospitality. We tested the importance of

19 factors contributing to happiness, and mathematically modelled the data to give us insight into the happiest

customers in the world, and what drove their happiness.

If you’re interested, the UAE was at the gold standard (top five) of overall CX happiness, alongside Bahrain, India,

Kuwait and USA. And the UAE’s happiest customers were from the Utilities segment, with hotel guests following

closely behind.

But for the purposes of this piece, we’re interested in the data behind what drives happiness at hotels in other

countries – after all, it’s guests from other countries that’ll need to be impressed during Expo 2020. Here’s what

hoteliers need to know:

USA

We can probably assume that a large contingent of USA citizens will attend Expo 2020 Dubai, so hoteliers looking

to host them should be mindful of what drives their happiness. According to the Global CX Happiness Index, US

hotel guests rate the quality of products and services highest, followed by data security and having

knowledgeable, well-informed staff. Providing a consistent level of service every time and having happy staff who

enjoy their jobs round off the top five drivers of happiness.

India

By the same token Indian guests are much more likely to cite a lack of a service as a driver of unhappiness. What’s

more, they place a similar importance on a lot of different factors. Being able to connect to the right person within

the organization is the number-one driver of happiness, but not far behind are quality of service, being able to

consume services quickly, and the eco-credentials of the hotels they stay in. Data security is also an important

factor, but it comes behind trustworthiness around honoring offers, working hard for customer loyalty, and

providing a range of communication options.

UK

In the UK, data security is joint most important factor driving guest happiness, along with quality of service. UK

guests are also more price-sensitive than those from other countries, and they aren’t all that bothered by using

biometrics to identify themselves.







Australia

Meanwhile, guests in Australia rank being able to more easily identify themselves via biometrics as their top driver

of happiness. Working hard for customer loyalty and making it easy to find what you want are also near the top.

Uniquely among the global sample, Aussie hotel guests rank being able to speak to a senior manager when

required as a top priority – along with data security and consistency of service.

Canada

Over on the other side of the world, data security ranks highest, followed by knowledgeable staff, a consistent

level of service, and implementing time-saving measures. Interestingly, though, Canadian guests generally don’t

mind the absence of these services when it comes to what drives an unhappy experience. Indeed, interest in

biometrics is much lower on average than in other countries, and it’s the same story for eco-credentials and price

attractiveness.

France

Over in France, hotel guests tend to be a little more demanding, with only easy recognition via biometrics being a

factor that doesn’t contribute hugely to happiness. Otherwise, French visitors will be looking for a high quality of

service, knowledgeable staff, and the ability to remove barriers for contact – across any channel.


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ACCOR TAKES OVER OPERATIONS OF TWO

DUBAI DEVELOPMENTS HOTELS Sunday, February 02, 2020

The world’s largest hotel operator Accor has taken over the operations of two hotels belonging to Dubai

Developments, the privately held development company established by UAE Minister of Finance and Deputy Ruler

of Dubai Sheikh Hamdan Bin Rashid Al Maktoum.

Accor will manage the Mövenpick Grand Al Bustan which opened in 1997 near the Dubai International Airport,

and Swissôtel and Swissôtel Living Al Murooj, which is situated between Downtown Dubai and Dubai International

Financial Centre (DIFC).

Both hotels will undergo significant upgrades, with the Mövenpick Grand Al Bustan set to undergo a three-year

phased improvement plan featuring 279 rooms and suites; seven F&B outlets, including three specialty

restaurants, an all-day dining venue, a pool bar, lobby lounge and shisha café; and 4,000sqm of banqueting and

meeting facilities.

Swissôtel and Swissôtel Living Dubai Al Murooj, which has been operational since 2005, will also undergo a three-

year upgrade which will see the property feature 251 rooms and 285 extended-stay apartments spanning studios

and one-, two- and three-bedroom units, complemented by 1,500sqm of banqueting and meeting facilities and 11

dining venues including four specialty restaurants, an all-day dining outlet, pool bar and two cafés.

The hotel takeovers will grow Accor’s UAE portfolio to nearly 17,000 keys across 60 hotels. The Group has over

280 properties in the Middle East & Africa, with more than 61,000 keys in the market.


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CONSTRUCTION PROGRESS AT DEIRA

ISLANDS BRIDGES REACHES 75% Sunday, February 02, 2020

Construction progress on the bridges leading to the entrance of Deira Islands has reached 75 percent, according

to Mattar Mohammed Al Tayer, the director-general and chairman of the board of executive directors of Dubai’s

Roads and Transport Authority (RTA).

The work covers the construction of three bridges of six lanes in each direction linked with the bridge crossing

over the Water Canal.

“RTA expects construction to be completed in June 2020,” Al Tayer said during a tour of the project.

The project is aimed at improving the entry and exit points of Deira Islands at the intersection of Al Khaleej and

Abu Baker Al Siddique streets. The construction includes bridges extending 1.6 km in addition to a six-lane bridge

extending 140 metres together with a slip road on Deira Island’s side.

The existing bridge will also undergo renovations covering re-pavement, rails, traffic signs, utility lines and street

lighting.

Additionally, RTA will expand the capacity of Al Khaleej Street over 1.8 km stretch from Abu Hail intersection

northwards to Al-Baraha hospital southwards through two junctions at the intersection of Al Khaleej street with

both Abu Hail and Abu Baker Al Siddique streets to replace the existing roundabouts.

These improvements are part of future improvements of Shindagha Corridor.

The Deira Island project consists of four man-made islands reclaimed from the Arabian Gulf along the coast of

Deira spanning 17 million square metres; rendering it the largest development project in Deira.

The project comprises the construction of hundreds of hotels, furnished flats, mixed-use buildings and marinas. It

is expected to attract about 250,000 residents as well as 80,000 employees.

According to traffic studies conducted by the RTA, the project will generate approximately 110,000 journeys

during peak hours.


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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,

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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

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Our valuations are carried out in accordance with the

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