Emirates Rising

Around 15 years ago it was a dream for the people in Dubai to make it a tourist place. Currently Dubai receives 6 million tourists annually and 2010 estimates have revealed the figure increasing to 15 million.
Dubai was once known only for its oil reserves. But after the speedy development in real estate area with powerful multinationals investing in the sector has transformed Dubai into a beautiful tourist spot. Through tourism Dubai’s GDP has seen a hike of 33% whereas through oil the GDP rise is 5 %. Dubai has followed the footsteps of Singapore. The prosperity of Singapore is beyond words. It houses some of the best and tallest skyscrapers, richest malls and highly sophisticated offices, and so does Dubai property.
In 1991, there were just 700,000 hotel guests in his Emirate. Last year, there were 6.1 million. The number of inflow of passengers has crawled from some 18 million passengers to 28 million and by 2010 is expected to touch 60 million. It is proving itself to be a snow city in the middle of the hot arid desert.
Following the prosperity of Dubai, Abu Dhabi, the largest and richest of the emirates with 11 per cent of the world's oil reserves, is now rushing to reinvent itself as a tourist destination. While Dubai displays itself in a cluster of 300 man-made islands in the shape of the world map, each resembling the country it represents, with homes selling for between US$10 million and US$50 million.
One of these islands, 2,500 hectare in area, Al Habel Al Abbyad, will see the proposed development of Ferrari World theme park. This would feature exciting rides and the development of a glamorous Monaco-style waterfront racing track which could be the venue for a world-class motor race. After Abu Dhabi, one delegate to Global Entrepolis, dreams to build a zoo along the lines of the one in Singapore. The zoo is fabulous entertainment place for the kids and family vacation. Neighboring emirate Ras Al Khaimah (RAK) has included in it’s tourism drive a space port, similar to the one that is being planned for Singapore. The projects in both RAK and Singapore, expected to take off in three years time. It will thrust passengers on sub-orbital rides into space at $100,000 or so each time. Even tiny Umm Al Quwain, whose population numbers just tens of thousands, is also determined not to be left out. It is now building a huge $6 billion waterfront housing and marina project with investment from Dubai and Saudi Arabia.
These emirates have not forgotten to carve a niche in the hospitality sector in the area of air travel. Abu Dhabi has launched Etihad Airways, RAK has RAK Airways, and Sharjah, another emirate, has Air Arabia. The tremendous success of Dubai's Emirates airline has acted as a catalyst for the new projects; they face a stiff competition from well established gulf airways and Qatar airways. Qatar has earlier marked itself with huge oil reserves and hosting of the controversial Al Jazeera television station.
Earlier this year, Dubai's big three companies – Emaar, Dubai Holdings and Dubai World, all controlled by the ruling Maktoum family – announced plans to spend $64 billion on luxury projects in Pakistan, including two giant man-made island resorts off Karachi, reports Newsweek magazine in its latest issue. Dubai has also made a $30 billion commitment to develop the Morcoccan town of Oukaimedan, into a haven for golf and skiing in the Atlas Mountains and it will play the lead role in constructing the $45 billion King Abdullah City on the Red Sea coast of Saudi Arabia.
But then the man who is the original link between Singapore and Dubai, Mr Mohammed Al Abbar, who worked five years in Singapore, before heading Dubai's Department of Economic Development, was in his 30s while supervising the massive billion-dollar development that has taken Dubai to its glittering zenith. He wanted Dubai to become the Singapore of the Gulf. Today, it is giving Singapore a run for its money.

Nakheel goes Flying

The esteemed property developer Nakheel is flying the ‘Spirit of Dubai’ from London to Dubai over some of the world's exquisite landmarks, including the awe-inspiring and pre-historic Stonehenge, the Acropolis (popularly the pre-historic ‘Sacred Rock’ reminiscence of the Greek past) and over the imposing grandeur of the Great Pyramids of Egypt. The aircraft is specially appointed for the first handover of residences on the Palm Jumeirah to its allotters before the end of the year.

The Dubai Property Law

In the backdrop of sale and purchase of so called ‘affordable’ properties in the ‘wonder’ Dubai being announced on every other day, it will be an fruitful exercise for the potential buyer to be aware of certain do’s and don’ts while investing in this cherished venture.
According to the Dubai Property Law (Law No. 7 of 2006; effective from April 1st, 2006), the Lands Department is the only authorized body to register Real Properties Rights in Dubai.
Real Properties Rights capable of registration includes rights of
Freehold Ownership
Rights of Usufruct i.e. long leases up to 99 years
Rights of Musataha
Collateral rights such as easements, restrictions and mortgages over real property.
Right to Purchase
UAE and GCC nationals have the unbridled right to own any property interest in Dubai and register such rights at the Lands Department (Article 4 of the Dubai Property Law). The law also extends to companies wholly owned by such nationals.
For nationalities other than UAE and GCC, are granted the right to hold a freehold interest, right of usufruct i.e. a long lease of up to 99 years in ‘designated areas of Dubai’ as authorized and approved by the Ruler.
Non-Designated Areas
Long leased properties in areas which are not covered under the ambit of the ‘designated areas’ are not covered by the Dubai Property Law. But at the same time such a property can not be held as illegal.
Such unregistered leases are treated as follows:
Unregistered leases remain personal rights
Unregistered leases are still capable of being inherited
In the event of any dispute arising between a landlord and a tenant of an unregistered long lease, the Rents Committee shall take care of the adjudication.
Additional Information
Article 26(1): “Any agreement or disposal made in violation to the provisions of this law or with the intent to circumvent its provisions shall be null and void”.
Article 26(2): gives any interested third party which here is the Lands Department and Public Prosecution, the right to request the court to declare such a transaction void. This is directed at so called ‘sham arrangements’.
These provisions are applicable to those agreements that purport to give property ownership rights to someone who is not entitled to own it and is not entitled to register it.
According to articles 5, 22 and 24
A contract or other agreement by which a purchaser acquires the property ownership is not sufficient to prove it. It is mandatory for the purchaser to take the contract to the Lands Department and apply for ownership to be registered in his name. If the application is in order, the Lands Department will register the ownership in the property Register and issue a ‘Title Certificate’.

Burlington –the Saga of Towering Sale Success

Deyaar, a rapidly upcoming Dubai real estate company established in 2002 as wholly owned subsidiary of the cash rich Dubai Islamic Bank is suitably positioned in the Dubai’s plush Business Bay, an area fast evolving as the regional business hub gaining parity with the key international cities. Deyaar’s innovative business policies coupled with new initiatives to be rolled out in 2007 are expected to place this real estate company in row of finest ‘one stop of real estate solutions providers’ in the region. Aside the development and management of property assets, Deyaar managed by a panel of acclaimed personalities and experts, offers additional services as brokerage, marketing and investment council.
Deyaar is a leading concern in developing Dubai’s real estate with several noteworthy projects like the Seef Towers I in Dubai Marina, Seef Tower II in Jumeirah Lake, Madison Residency on Sheikh Zayed Road, Citadel and Churchill in Business Bay and Al Dana in Sharjah. The over $ 3 billion worth organization presently has 16,000 commercial and residential properties under its belt.
The unparallel success that the organization has achieved in such a short span in terms of earning trust and confidence of the investors can be deciphered from the fact that with in a month of the launch of its worthwhile property “The Burlington Towers”, already 85 percent of it is already sold off. The Tower is a gorgeous 35-floor commercial tower planted in the Business Bay area. Its construction is due to begin in January 2007 and will see completion by December 2009. Elaborating on its overwhelming sales response, Deyaar executive vice-president John D’ Cunha has correctly remarked that The Burlington Towers property with its hi-end luxurious design and right investment value will maximize returns to the investors in times to come.
Deyaar CEO Zack Shahin, expressing his views on the changing dynamics of Dubai’s property market said “ The property market in Dubai mirrors many interesting trends, the most important being the new breed of investors that is showing interest in buying or trading in property in the Emirate and the sale of The Burlington reflects just that”.
Currently with the up swinging economy of Dubai, a strong back up infrastructure, thriving business hub, a prime tourist destination, dense working population and free trading zones with low/no taxes makes Dubai an attractive investment destination surging up the demand for commercial space. The Burlington with its strategic location amidst the Bay Business region serves as an appropriate business address. The tower houses ranging from minimum of 530 to a maximum of 2,019 sq. feet 476 luxurious offices, a chic designer lobby, a 19,750 sq. feet shopping arcade, a panoramic gym and sporting facilities at its 20th Floor. There is a dining plaza with a spectacular view and a number of coffee shops. The Burlington is complete with a business center with conference and training rooms and a stunningly created business lounge. The property is well facilitated with a strong security systems and podium parking.

Eco-tourism amidst the Arabian Desert

The mysteriously whistling and softly whispering air resonating in the never ending sand spreads across the Arabian Desert originally inhabited by the native Bedouins is all set to enthrall the hearts of tourists from all corners of the globe to come and see for them selves the unexplored wilderness of the Middle East and Dubai property.
The Al Maha Desert Resort owned by the Emirates Airlines and comfortably sitting atop the large dune inside a desert conservation reserve of 230sq km taking up about five percent of Dubai is in itself a kingdom with 40 luxurious all amenity endowed palatial Bedouin tents each for $ 1320 a night with discounts for frequent fliers on Emirates Airlines and summer discounts. Each of the tent bungalows is provided with an exclusive swimming pool and is stocked with the expensive items such as Bulgari soaps, crystal decanters flowing with free sherry, the cushy menus are all set to get go the revenue fetching eco-tourism amidst the mystical Arabian desert in its distinctive and elegant Dubai style. One can frequently find the presence of its native as well as exotic wild such as its rare Arabian gazelle casually flocking into the bungalows to the sheer amazement of its residents. The resort perched amidst the melting long stretches of undulating sand dunes change its colors with the reflection of the sun that gradually dips in the horizon as the day comes to an end. The Al Maha may be very expensive but it is instrumental in playing a significant role in the conservation of the precious wild and the raw unexplored land of the Arabian Desert home to its tribal that could easily have fallen prey and disappeared without trace in the rapacious development of the Middle East.
The tourism sponsored by the Al Maha, promoted as eco-tourism is ecologically friendly but with its own share of hunches. The artificial resources employed to create an aura of all green and environment savvy conditions is a rather a progenitor of undesirable elements unheard of before, percolating into the eco-system of this sandy land. The resort’s air conditioned bungalows consume plenty of water and electricity. The introduction of non native, exotic plant varieties to beautify the resort and piling of double the number of animals that the land can support to give the wilderness look to the resort is actually an eco-threat and not eco-friendly at all. If not taken care of in time the arrangement will show its negative spills in times to come. Yet the sight of various animals willingly strolling by and the birds flying down the artificially watering hole to quench their thirst in the 42 degree centigrade afternoon in the vicinity of the bungalow tents thrill the tourists who anxiously watch them with their hotel provided binoculars.
The biggest success attributed to the Al Maha is its significant role in swelling up the size of its native and rare Arabian Oryx, a big white antelope which was at the verge of diminishing in the 60s but are now thriving rather flourishing, and can be seen happily munching the irrigated greenery amidst the peach colored dunes of the resort and its bungalow lawns. Other protected and saved animals include the three species of breathtakingly spontaneous and attractive springing gazelles, two species of desert foxes and the awe inspiring rapaciously moving 20cm long lizard with porcelain like skin. Steps were taken to revive the dying herd of scimitar-horned Oryx once native to the Sahara and can now be seen hopping in the vicinity of the resort. Timely elimination of camel, an animal that had covertly robbed this desert land off its natural greenery, from the premises of the resort has sprung long awaited life to the land after years of overgrazing turning the already denuded part of this earth into a barren entity.
Another memorable eco-tourism option to be cherished can be tried with the entourage arranged by the company called Mountain Extreme in the northern emirate of Ras al-Khaimah which provides for an overnight trek in the sun-shattered rock climbing of the Hajjar Mountains.
Watching fascinating displays of early morning owl hunting and an occasional falcon-hunting is a life time sight, worth experiencing. The mighty bird obeys to the brilliant commands of its trainer. It comes down in circular movements and whisks away the pieces of bird carcass in a flash while the people are still facing up unable to comprehend for a few seconds as to what happened.
Enchanting evenings spent at the backdrop of the setting sun melting gradually in the dusty horizon with a flute of champagne and fresh strawberries in our hands and lazing with fellow trotters from all across the globe is a soulful experience.
For the ones wanting more adventure, there are treks beyond the unexplored mountain villages of the Shihhi tribes in the northern emirate of Ras al –Khaimah and in Oman to delve into the lives of these natives of the ancient civilization.
John Falchetto, a Canadian mountaineer and entrepreneur is an ardent desert fan. He takes hardy hikers for an overnight adventure into the rugged Wadi Bih canyon and peaks of the Hijjar Mountains. He has redeveloped the otherwise rusty Shihhi villages to be used as base camps. He is presently working in conjunction with the emirate’s ruler towards developing a nature reserve around this region.
A few villages are accessible only by foot and are fantastically located very near to the mighty and dashy Indian Ocean. Sun is already set ablaze even at 5:30 in the morning, we sit atop the peak of the mountain looking over the serpentine ridges of the mighty canyon with layers after layers of limestone spread as sheets of magical vistas only seen to believe in this ultimate tourist destination.

Emaar Properties goes Hamptons International

In August 2006 Dubai based Emaar Properties joined hands with Hamptons International the UK based premier retailer with over 130 years of real estate expertise thereby bringing its entire property management services portfolio under the globally recognized Hamptons International fold. This strategic alliance has far reaching benefits for both the biggies in the international map. It is an opportunity for this Middle East Corporation now functional as Hampton International to benefit from the brand name of the esteemed Hamptons International and expand its wings across the to the west in terms of its operations, service support and product sales much faster and in the wider markets including those of Europe in a more effective way. Mr. Mohamed Ali Alabbar, the Chairman of the Emaar Properties feels the integration as a giant step forward for his company and in consonance with its Vision 2010 plan for expanding their bases to the non Emaar properties as well in Dubai by offering them property management services and strengthening up the real estate sector by its quality backed services. With this acquisition the Emaar becomes a pioneer in bringing international color to buying, selling, leasing and mortgaging and other superior services already observed by the Hamptons into Dubai. Emaar will also avail the benefits of Hamptons globally accepted best practices in property valuation, management and development services into its system not to forget its strong global sales network.

Emaar has already diversified its operations in Saudi Arabia, Morocco, Egypt, Tunisia, Jordan, Turkey, Syria, India, Pakistan, and Libya. In tune with its Vision 2010, the Emaar earlier had horizontal integration with middle-east based The Turner Corporation, a leading building services provider to form Turner International Middle East Ltd. It had also strategic amalgamation with the John Laing Homes, the second largest private home builders in the US to affirm its global footing. With the entire Emaar Properties now under the folds, Hamptons International, the global giant in the real estate, further strengths and consolidates as a brand.
Hamptons International comprising of Hamptons’ UK Offices, CB Richard Ellis Hamptons International in UK and Oman sells, lets and manages over 15,000 properties every year in the UK and overseas while the Emaar has hold over 14,500 homes, making the property portfolio of the Hamptons double the original number. The association facilitates two way information exchanges. Interested investors in the west can pick valuable information regarding their potential investments in the Middle East from its now 60 but due to be raised to 120 Hamptons offices spread all across the globe by 2009 while residents here can know which properties are patron by the Hamptons International. With this marriage Hamptons International affirms its footing as an undisputed leader in the entire region in terms of brand name and a major global player in the international real estate sector.

Is Dubai still the Wonderland?

There is a often a widely acknowledged speculation and murmurs amongst the real estate market consultants and experts whether the soaring prices of the Dubai property are an indicator of its maturity and as per any cycle destined for its eventual collapse.
Daniel Husain, vice president of Dubai Lagoon, one of the emirate’s largest private sector real estate projects under development differs from this traditional point of view. He optimistically predicts the Dubai property prices to go fifty percent higher than its present market value. His prediction is not about throwing words in the air, he has strongly grounded facts and experience to support his statement. His company situated in the Dubai Investment Park has Dh 3 billion project under its belt constituting 53 residential buildings spread across 40 acres of land which means space covered by 40 football fields. The project launched in two phases is due its completion by June 2008 has already sold off 80 percent of its work; the overwhelming buyer’s response reflecting their faith in investments in the real estate Dubai assets. Reciting his own personal experience he says that initially they too had their moments of doubt when warned by the industry experts which were soon melted when the project sold all its Phase 1 apartments-1,752 of them in 52 days making an average sale of 31 apartments per day contrary to the warning of only 3 apartments per day. Elaborating his view point Daniel Husain further adds that with the average salary of Dubai income earners ranging between Dh 8,000 and Dh 10,000 there is still scope for genuine need for affordable housing amongst the salaried class which would be always on the up rise along with the foreign companies considering the lucrative facilities and superior standards Dubai has to offer. This would always appeal the individuals and companies alike to test their fortunes in Dubai and a floating its property prices by at least fifteen percent. He is also upbeat about Dubai Lagoon’s prospects: “I believe, on a conservative estimate, that on completion, its prices will go 30-35 per cent higher from where they are today.”
The demand for housing and commercial property will also stay strong to the advantage of the property owner considering the constant influx of the expatriates to this ‘wonder’ land. The property owner can always reap on the rental yield which in Dubai is eight to fifteen per cent, tax free and is much higher than anywhere in the world
Daniel also clarified that rising prices is a problem for the developers as well. The rising prices directly imply the construction prices also go up. According to the report by the industry consultant EC Harris, the construction costs including that of raw material and labour jumped by 28 per cent in the first eight months of 2006. Dubai Lagoon prefers the foreign contractors notably from Thailand and Myanmar to the local one for their superior negotiation skills and experience in begetting their supplies of steel, cement and other raw materials from global markets at competitive rates and quality.
Concluding his view point he affirms “Dubai still remains a great place to invest in” and this is one of the great reasons that Dubai will always remain the ‘happening’ city for the real estate investors and second-home buyers for now and in times to come’.

About Trusting Dubai Holding

Dubai Holding LLC (DH) supported by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and the Ruler of Dubai, is one of the three premier real estate organizations of repute in Dubai. The company envisages active role in developing and diversifying the vibrant and already thriving economy of Dubai and seeks to identify existing and future projects in Dubai property and expand its wings internationally. It aims to create a strong foothold across a diverse range of industries to execute its vision of a diversified, knowledge-based economy and export this knowledge to the benefit of the region.
The job of large scale development and managing real estate projects in Dubai has been given to three companies to ensure quality through healthy competition and mitigate government monopoly. The Emirate’s other companies with similar business interests in the real estate sector are Emaar Properties PJSC and Nakheel of the Dubai World.
In consonance with this mission, the group has attuned its strategies and grouped them under three core objectives:
Creating Value for its shareholders,
Diversifying Group’s Portfolio, and
Human Resource and Economic development of the people of Dubai.
The group’s activities shall focus on the gentle mix of social welfare and infrastructural development with an active thrust upon their economic viability on the lines of commercial justification.
Its large scale undertakings and ambitious projects include Dubailand and Al Bawadi, a magnificent and bewitching tourism complex containing the largest hotel in the world.
The A1 accredited Dubai Holding Commercial Operations Group LLC (DHCOG) of the parent company Dubai Holding LLC (DH) takes care of the non-financial investment businesses of the Group.
The DHCOG has five subsidiary companies dealing essentially in the real estate and hospitality business. The two companies under Dubai Holding Investments Group (DHIG) incorporate its international investment (in more than $ 4 billion net worth Dubai Investments) and private equity business (as Dubai International Capital) and have 51 percent share holding in the group. Dubai Investments owns the leisure group Tussaud, UK engineering company Doncasters and budget hotel operator Travelodge. DHCOG’s renowned and very exclusive Jumeirah brand undertakes care of the hospitality business and manages several expensive and noteworthy properties in Dubai like the Burj Al Arab and a few selected international properties in London and New York.
Of the subsidiaries, the Tecom Investments deals with developing and managing businesses related with the knowledge economies. This encompasses Emirates’ core free zones such as the Dubai Internet City, Dubai Media City and Dubai Knowledge Village. Its future investments in energy sector through EMPOWER is also likely.
Dubai Properties is the main subsidiary that takes care of the real estate business and manages the development of both residential as well as commercial infrastructure development in Dubai. The luxurious and the enchanting Jumeirah Beach Residence with 1200 rooms, Amwaj Rotana Resort in its circumference and the Business Bay downtown business district are the constructive genius of Dubai Properties.
Tatweer, the second subsidiary of the DHCOG group deals exclusively with developing and managing the domestic real estate sector and its focus is on life improving set ups like the Dubai Healthcare City and Dubailand.
Sama Dubai the fifth subsidiary of the group taking care of the remarkable ‘The Lagoons’ complex in Dubai intends to export some of its expertise to international key projects extending as far as Qatar, Oman, Bahrain, Morocco and Turkey.
Acquiring 35 percent stake in Tunisie Telecom in 2006, the premier telecom company of Tunisia for $2.25 billion and a 60 percent stake in Malta Com for $280 million through Tecom and Dubai Investments is another feather to its cap.
The DH launched the second mobile operator under the ‘du’ brand in which it has 20 percent stake.
Risk Profile:
The companies with the Dubai Holding are relatively young. It has the IFRS complaint numbers which are audited but are not yet public. The revenue generated by the DH as per 2005 year end is from the brand Jumeirah and rental revenues from the existing free zones and are expected to grow in future. DHCOG had managed to raise $2.7 billion in 2006 to fund its recently acquired Tunisia Telecom and MaltaCom.
and will require refinancing in 2007 as well. Being relatively new the group will finance its domestic real estate properties from land sales and advance payments. The international projects at Sama Dubai will have to resort to moderate debt financing for sometime.
Capital market debts are raised at DHCOG yet it does not support its subsidiaries other than as stipulated in the group’s stated dividend policy. Some debt is maintained at Tecom and Jumeirah considering the current pricing corrections and tenor.

Trading Property

With the speculative nature of market now in favor of borrower, more and more finance institutions and banks are coming with easy loans like never before. Hoardings displaying easy loans can be seen splashed anywhere and everywhere. The conditions sound too good and too simple to be true. Property has never such an easy ball from as far as one can recall. The lenders are devising innovative more accurately drooling strategies and competitive rates obviously based on realistic valuations to make the Loan to Value (LTV) immensely attractive to the prospective borrowers.
The good thing about Banks offering finance to buy property in Dubai is that laws here are in favor of the customer and the repossession of property in the event of nonpayment of next installment is not so easy, making only those lenders with consolidated positions to enter this market.
With the rapidly diminishing breed of cash down payment buyers’ developers are frantically arranging bank /lender-borrower link to sell their properties. Unless the finance option is sought available it would be a tedious task to sell the property. Many real estate developers have them selves taken on self-financing and loans can be down paid in easy installments within a few years time. In the absence of bank’s intervention as in private lending, the buyer should carefully study the T&C’s and try to find the loopholes and discrepancies it is capable of causing in future.
This is paradoxical, where banks do not want to lend too much considering the dwindling profits amidst stiff competition and softening of valuations crossing swords with their need to secure a market share in the sunshine business of lending. Currently all the financers are hiking their LTV on the golden hope that self corrective market forces will care of everything sooner or later. Banks are smart finance operators, they never like to loose and till the end deem to ensure that they recover their last penny back.
Dubai real estate investors are also seeking finances from overseas lenders or begetting cash from other property income, portfolios or any other way by leveraging on property assets. It is strongly recommended for those having Created Capital Gains (CCG) in the UK not to leverage the foreign property to secure a loan at favorable rates for their Dubai purchase to save them selves from the headaches of the Inheritances (IHT) and Death Taxes. In the event of insufficient rentals, you are risking both your properties at one go. A non –domicile property holder in the UK regardless of his nationality is anyway liable for the Death Tax while the ITH can be solved with the help of a good mortgage broker so keep the two deals separate and no need to risk the UK property to finance loans on the property in Dubai.
The prospective property buyer should ensure that he has a sufficiently good pocket to finance the property in event of changes in interest rate or the lending criterion. Parallel to this the Developer/ Retailer generate active tie up with the local banks to be able to secure best deal for the customer or exploring the possibility of financing 100 percent using international lending solutions. This will not only consolidate his present position in the real estate sector but also help him stay ahead of his competitors in the property market. The interested buyers can also write to Property World ME to get unbiased property finance solutions.

Rent Cap on 2007 Property

The new rent cap rule in Dubai does not allow Landlords to raise the stipulated seven percent yearly increases in rents on their properties in the year 2007. The mandatory decree issued on behalf of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and the ruler of Dubai, extends it to tenants who have signed their property Dubai contracts last year for the first time or whose contracts’ renewal was due for renewal on the 1st January this year as per the contractual agreement signed before provided they have already paid the rent that was due for 2006. In the event of any discrepancy the aggrieved tenants can contact the Rent Committee if it has already paid the money in advance and get the money refunded. If the landlord does not comply with the new rule, the tenant can file the case to the same body. He has requested any kind of dispute between the land lord and the tenant to be resolved and settled by amicable bilateral negotiations within the ambit of the new law amongst themselves else they can approach the tribunal under the Rent Committee appointed for the same. This rule has been communicated in public interest by Mohammad Al Sheikh, Secretary General of the Dubai Rent Committee.
The rule also implies that tenants whose rents had been hiked in 2006 will not face another hike in 2007 but the ones who did not face the hike of rent last year will have to pay now but in tune of seven percent of their annual rent only.
Article 2 of the new decree says that for properties whose contracts had already been signed in 2006 with a new tenant will be free of any rent increase in 2007.
The Dubai Rent Committee’s office is located at ground floor of the Dubai Municipality headquarters at Baniyas Road. It can be contacted on telephone at 04-2232766 and 04-2215555
Ploys used by the landlords to evict tenants
The building needs maintenance
Need the house for my relatives
Building will be demolished
The house will be sold
The flat is being sublet
Bachelors are living in the house

Fabulous Desert Resorts of Dubai

Margham, United Arab Emirates, another unit of Dubai property is a dream destination for many travelers to this part of the world. One can enjoy complete privacy with benefits of pool and a private bungalow in an exquisite desert environment. The Al Maha desert resort for e.g. allows its visitors a pleasured stay in midst of eco-tourism, Dubai style. It has 40 magnificent bungalows architectured like Bedouin Tents stocked with pillow menus where visitors can pick their favorite pillow heads. They also provide Bulgari soaps and crystal decanters of free sherry. Al Maha occupies the slope of a dune inside the desert conservation reserve, which is a small part of a huge block, approximately 5 percent the entire landmass of Dubai.
An overnight trek to northern Emirates of Ras Al Khaimah, gives visitors an advantage of climbing the sun-shattered rocks of Hajjar Mountains; this region is also known as middle-east’s epicenter of luxury tourism.
Al Maha is an expensive eco-tourism resort in Dubai compared to other hotels in this region; however, it doesn’t always follow the eco-friendly rules. It uses Air conditioned bungalows and huge loads of electricity to give the best to its visitors. The resort owners and Emirates Airlines have together introduced many non-native plants here along with more than twice as many animals the desert can support. Although this move was to promote tourism in this land, but on the down-side it has led to an ecological imbalance. Al Maha is working towards ways for preservation of natural habitat form the growing development race in the region. The resort is comfortably placed with a scintillating view of sand dunes meeting rocks at Hajjar Mountains at the horizon. The valley has an artificial watering hole at the bottom making it a centre of attraction for visitors as well as the animal population. Tourists can use binoculars to get an eye-shot of these animals from the resort itself. The more frequent ones in a 108 degree May environment are Arabian Oryx and big white Antelopes, which suffered extreme poaching during 1960’s reducing their numbers to less than 50 then. From subsequent efforts by the Al Maha even the declining numbers for Arabian Oryx have now climbed to more than 300. The region also has a small population of desert foxes and sand skinks, which is an 8 inch long lizard with skin much like Porcelain. The non-natives of this place are, the Scimitar Horned-Oryx, initially of Sahara it is now extinct in the wild. Its reducing numbers in this region has sent alarm signals to conservationists; these have declined from 35 to 18. Another misplaced race is that of Thomson’s gazelles, native of East-Africa. Also the most destruction-friendly is the Camel which is banned from most resorts due to efforts towards building up natural vegetation in the region. Camels which were initially bred for racing purpose in Emirati desert have almost stripped of the natural vegetation there, turning it into a large waste land. Still many powerful sheiks have kept a few herds despite disapproval from resort owners.
Staying here can be very expensive, the resort charges about $1000 per night prompting visitors to spend every hour in best way possible. The rates however are discounted for frequent fliers on Emirates Airlines. For Leisure one can spend a lot of time exploring the desert and if lucky, even watch a display of falcon hunting as well as owl hunting along with delightful shows from owl-tamers. Tourists can also enjoy camel treks to the summit of tall dunes or have champagne and fresh strawberries to enjoy their evening. Al Maha also organizes treks to the remote mountain villages of Shihhi tribes of northern Emirates of Ras Al Khaimah and neighboring Oman; a casual climb however can lead to Jebel Qiwi at a height of 5,900 feet. One can also hike to stone villages crossing Machu Picchu with Grand Canyon.
John Falchetto is a 33 year old successful hiker known to this region. He is a Canadian mountaineer and entrepreneur and is experienced with hikes into the deep rugged Wadi Bih canyon or even to peaks of Hajjars for overnight hikes rigging through two of the tallest mountains here. Falchetto has been making investments towards re-development of abandoned Shihhi villages and even turning them to base camps for hikers. Many villages here are accessible only through foot, being placed at remote locations even at cliff-side edges over looking the Indian Ocean. Dusty and barren during the day, these villages are cool and silent during the night coupled with breezing mountain air.
How to get there:
There are 110 airlines serving Dubai’s airport. Daily there are two non-stop services by Emirate Airlines from New York to Dubai and vice versa. A 40 minute driv from Dubai leads to Al Maha. The hotel can arrange transportation for $250, but visitors can rent a car or hail a taxi for less. One can also get to the Mountain Extreme’s base with a little more than an hour by road. Mountain Extreme is a prominent mountaineering and hiking company of this region. The cost of journey here is $55 on each way.
Information for Al Maha: The night rates for two persons range to $1000 with summer discount schemes. As an example the Emirate Airlines frequent flier club members were offered discounted rated of $490 per person. These rates also include the meals and private guides.

Dubai to contain rent increase by 7 percent

His Highness Shaikh Mohammad bin Rashid Al Maktoum, vice president and prime minster of UAE and ruler of Dubai yesterday announced to set a cap of seven percent on rent increase in Dubai property for the year 2007. This move comes through to downsize the increasing rents, which have been fueling inflation in Emirates.
The rent allowance was based on a consideration of two decrees; Decree no. 2 of 1993 and its modifications that gave a go ahead to establish special committees for settlement of disputes between tenants and landlords, and Decree No. 14 of 2005, where an upper level was set for any rent increase throughout Emirates. In accordance of the new decree, no rent allowance can exceed 7 percent the annual charge of property. This rule would apply to all new rent contracts about to renew in 2007 with a condition that no increment in rent was made on same property in 2006. Article 2 of the new decree states that rent on those properties whose contract has already been signed in 2006 cannot be reviewed or raised in 2007. The decree takes effect from the date of its issue January 1, 2007 and is to appear in official Gazette.
According to a recent survey more than 44 percent of people in Dubai spend half their salaries on house rent each year. The recent move is being hugely applauded by residents all across Dubai as it comes as a boon for many middle-class families.
Asgar Hussain, a resident of Jebel Ali said, “I was personally under a lot of stress after the 15 percent rent cap ended on December 31st. We were expectind sudden and massive jump in rent any time, but this is the best New Year gift the government could have given us. Another resident of Dubai Kundan Singh exclaimed it as being fantastic news for middle class families. On the other side, the landlords were still uncertain about the decision. Officials at rent committee in Dubai municipality claimed they would make sure landlords abruptly follow the decree. An official quoted “we will see to it that they abide by the new decree”.
Dissatisfaction towards the new rule seemed evident amongst landlords like Amir Ahsan Alam who has rented several apartments in Bur Dubai and Deira areas. He expressed his dissatisfaction towards the decision by saying “the 7 percent cap will affect us badly”.

Health insurance moves over to the second phase

The second phase of health insurance policy materialized yesterday providing benefit to nearly 1.5 million expatriates working here. The president Shaikh Khalifa bin Zayed Al Nahyan issued a law stating the responsibilities of employers towards providing health insurance to his employee and his family including wife and three children below 18 years of age. The law is set to provide quality and cost effective health care and medication services to expatriates residing in Emirates with rented property in Dubai. The only official regulatory body responsible for execution of this project is the General Health Authority for the Emirate of Abu Dhabi (GAHS). This scheme can be availed by the valid GAHS health card holders or those covered under insurance programs apart from one provided by GAHS before 1st January up till card expiry period. These health insurance policies would be valid up to 1 year and have to be renewed annually. Also, all authorized insurance companies have to extend these facilities to all individuals, and cannot refrain for any reason. The first phase of the project was implemented on 1st July last year, but was confined to companies sponsoring over 1000 employees.
The National Health Insurance Company, Daman, has four branches set up to look after transactions of the new scheme. These branches are located in Bateen (near central Bank), Musaffah (opposite Abu Dhabi Islamic bank), Al Ain (post office building) and Madinat Zayed in the western region. To further the process, additional service points have been set up by Daman at department of preventive medicine facilities at Abu Dhabi Island, Al Ain City and Madinat Zayed.
These facilities are inclined towards certain sections of society such as nannies, housemaids, taxi and other transportation drivers, agricultural and maintenance workers, helpers, cleaners, security guards along with residents n=not permitted to work such as sponsored individuals, spouse, children.

Demand divides Villas:

Many real estate agents in Dubai have engaged in illegal partitioning of villas into small units that helps them rent them out to large number of people.
The demand for these arrangements has risen in regions like Hor Al Anz, Qusais and Al Quoz. This is generally caused due to an increase in the numbers of illegal expatriates belonging to lower or middle income group, who are forced to thrive in uneasy and unsafe conditions to save some money.
Wahid Abdul Karim an engineer in Building inspection department of Dubai municipality added, “We are aware of the fact that one room of a villa gets divided into two or three parts. This is illegal.”
He said that the municipality has sent notices to many residents there asking them to remove the partitions. He also added that continued violation would result in disconnection of power and water supply.
Another agent who works with lower income groups said that there is a huge demand for studios and one bed room units from families unable to afford better facilitated apartments in residential buildings.
There are many Dubai real estate agents like these in Dubai who cater to the needs of such sections and also arrange in open compounds to accommodate more of these families.
A one room apartment with a small kitchen and bathroom is available for Dh 2,000-3,000 per month and many families can live comfortably in these apartments. However many families often complain about being harassed by agents. The residents add that even though they pay off hugely, the villa owners are reluctant towards providing any maintenance. These families have to live in poor conditions like no electricity, improper hygiene etc. Joseph a tenant living with his family in a shared villa in Hor Al Anz says that their house lacks proper drainage facilities and he is constantly worried about the health of his wife and children”. Many tenants live in similar unhealthy conditions because of rent. To add to their trouble a villa having 6-7 rooms gets shared by 20-25 families. These conditions worsen during summer months as the plywood partitions get unbearable. To add to this many tenants complain of being harassed by land lords who ask them to pay more rent on electricity. They say that the meter installed there shows erratic readings and they can’t complain due to fears of being thrown out.

Recent fare increase doesn’t bother Abra users

The Already speculating commuters for Abra between Bur Dubai and Diera weren’t surprised from the recent hike in fares. They said that they were already expecting it and Abra drivers were talking about it for a long time. However, Abra is still cheapest means of travel between Bur Dubai and Diera despite this hike.
R. Shridharan an employee in ABN Amro bank who has been using Abra for six years now says he is unperturbed by this increase and Abra still remains the cheapest and fastest means of travel here.
For the Abra drivers however this hike comes in as a big relief. They say that the cost of diesel has gone up by 50 fils was hardly enough, although the drivers feel that the fares should have been hiked by at least Dh 2. The executive council recently announced a hike in fares from 50fils to Dh1. People hiring a boat for an hour would have to give out Dh 100 instead of Dh 50 from now on. The Abra services are used by around 60,000 people every day. On holidays these figures touch almost 100,000.

Two-fold rise in income expected

Dubai Jan 02: The recent fee hike for Abra users from 50 fils to Dh 1 and the commercial use for Abra shelters will now give almost double revenues for Abra owners and operators. This new alternative will help them increase revenues from Dh 70,881 to more than Dh 141,000.
The CEO of Marine Transport department at the roads and transport authority (RTA), Engineer Issa Abdulrahman Al Dossari, asserted, that RTA has placed a strategic plan for development of marine transport system in Emirates costing more than Dh 1 billion. This project also includes the development of marine transport system in Dubai creek.
This plan is placed after exploring views from 149 low income UAE nationals and 300 Abra operators after examining their trade aspects. The implementation of the plan would be done in stages in accordance to a timetable aimed at ensuring quick, safe and integrated marine transport system.
A staff group is allotted to supervise the process of Abra registration and license representative by inland water transport department and further, to train the staff to serve the users and operators of Abra focused on major areas of security, safety and use of facilities and customer service.
To simplify the procedures for operators and owners technical systems and programs have been introduced. These procedures include the issuance of licenses, following up to operational obstacles, emergency maintenance and licensing periodic maintenance along with preparing studies to improve, develop, service and measure the customer satisfaction.
Al Dossari said that the Authority is aiming towards development of marine transportation services by using means like water bus, water taxi and boats for group transports. These services would also be integrated with services such as metro, buses and taxis.
The first step has been initialized by RTA aimed at achieving integration and interdependence amongst various means and transport patterns in Emirates by connecting bus transport line no 19 to Al Seef Abra, giving greater comfort to Abra users. Al Dossari exclaimed that the distance between public busses and Al Seef Abra stations would take about a minute by foot and from line no 3 to Baniyas station opposite Dubai municipality in three minutes.
Al Dossari added that there are six centres for RTA customer service along-side two shores of Dubai Creek, in addition to main centre in RTA building.

Tanmiyat signs a deal to clinch 30 percent stakes in Dh250 m Stargate Project:

Tanmiyat a leading Dubai property developer has bought 30 percent stakes in Dh 250 million stargate project. This project is based on a spaceship- style children’s theme park and is presently developed by Osus in Zabeel Park.
Tanmiyat issued a company statement highlighting the partnership agreement between Osus, Tanmiyat and Saudi First Company, which is a key partner of Osus. Tanmiyat will have a 30 percent share in this project.
The Dubai municipality earlier authorized Osus to develop and manage upon a 30-year old build, operate and transfer concession. Hence, through this agreement the Dubai municipality would be transferred the ownership of this project after the agreement matures.
Stargate project is a mid-sized high tech family themed entertainment centre covering an area of 260,000 sq. feet and situated in 52 hectare Zabeel Park. This location is strategically placed near Dubai international convention centre in Bur Dubai and Karama, which are some of Dubai’s largest neighborhoods. At present 65 percent construction work has been completed and the entire project is scheduled to complete by 2007.
Faisal Abdullah Al Khaldi the chief executive of Osus exclaimed that this spaceship like project will not compete with any other family entertainment centre as this project is unique.
Stargate is the first of its kind high-tech project in Middle East with a family and recreational theme. Abdullah also added that this project would add stars to the growing portfolio of activities for Dubai.

Land Department to establish three new laws

December 10th, 2006
The Dubai land department is in a process to establish three new laws giving election rights to owners of property Dubai. This law would bring out a proper electing body for Dubai property owners thereby establishing transparency to the property sector of Emirates.
The three laws are; condominium law, Trust account law and owner’s association law.
The Condominium law is expected to take shape within the next two or three months, whereas, the other two would be following soon within a year.
Dubai land department would also be coming out with a detailed guide book and map for all freehold areas and respective procedures for their registration. The relationship between investors and developers would be the prime focus in condominium law. This relationship would extend from freehold apartment buildings, arrangements for maintenance, services and utilities along with covering rights and owner’s association.
Trust account law on the other hand focuses on regulation of ‘off plan’ sales and would make sure when an apartment is booked via ‘off plan’. Here the amount cannot be used by the developer. This law would determine when the amount can be released.
The formational aspects of general body would be determined by ‘owner’s association law’. Here the owner of a building would have the right to elect representatives to form an association.

Are there two different markets for Dubai Property?

The pressure on rental prices and cost of houses would be mounting till the supply of completed property in Dubai falls short of demand from arriving as well as existing residents. The reasons for supply shortage also include the contractors who have fallen short of their supply schedules.
The supply chain conditions in general have an absurd view due to flexible delivery dates penned into sales agreements for off-plan buyers. Therefore it makes it hard to predict when the supply of property will catch up with its demand.
Adel Al Shirawi the CEO of Tamweel laid out his plan for 30,000 unit completion for 2007 in front of cityscape conference last week. This forecast comfortably overlooks the demand for 5,000 households for new affluent arrivals per month suggested by immigration authorities. The Dubai property however is a two way market; one for existing completed properties and the other for undefined off-plan property development.
Although it seems simple to confuse them as similar, in reality they differ a lot from each other. The existing completed properties have an immediate value for the end-user as well they offer an income form rent. However the off-plan property is more of a capital investment for buyers. Unless this property can be quickly sold out it is like dead money for the buyers. The developers at cityscape projects confirm these as huge development where an early investor purchases 50 units and earns a good profit from re-sale after two months. However it is a worst kind of speculation where buying takes place based on assumptions in a risk governed market and buyers have no intention to pay more than a deposit.
Weakness can perhaps emerge in off-plan market of Dubai Property with market running out of buyers for ‘off-plan’ units, even before market runs short of completed units of property.
How to save the existing house owners?
The weakness in the market can surely come to the rescue for existing property market, putting a cap on the new supply, whereas, the demand remains strong for completed units.
Further, if the off-plan market is not affected by the speculative correction, the natural forces of construction delays would still be there with contractors having tough time finding building material costs rising to unimaginable levels.
A huge expansion plan is being mobilized for Abu Dhabi’s real estate sector calling scarce human and physical resources. Here the off-plan developers would soon find themselves in midst of deep trouble due to the prevalent scarcity.
It just might mean that the Dubai property could rebalance itself without a crash in existing prices for completed property owners. Dubai has proved the doubters wrong on many occasions.

Dubai property market at a glance

Many observers and potential investors have doubts regarding investment in Dubai property. Even though the property market is rapidly expanding by its fifth a year investors are still skeptical with the safety of their investments. The Cityscape Dubai event which presented both current and future projects gave a reassurance with an increasing scale of activities an enthusiasm. The event undoubtedly showed the strong developmental aim of property market in Dubai and the Gulf.
However hyped the situation is there are still many questions awaiting an answer:
Will the property construction reach its final stages?
Will the promised quality standards be achieved?
Will there be delays in the projects?
Is there a guarantee of one’s investments till the time of hand-over and beyond?

A short answer for these questions is that it would differ from project to the developers. The broader picture is that the situation still remains uncertain with some projects never making it to completion and less attention paid towards the issue by media and government.
The Gulf news archive presents anecdotal evidence with other local publications paying attention to specific queries bringing out news good or bad. There are many other websites presenting great deal of insights to real news on the property scene. Some of the project descriptions are given below:

Emaar: This is amongst some of large developments. The project was built in time and there was no compromise with the quality. Although the records pacify those complaining of bad quality and higher purchase costs.
Nakheel: has a mixed record having some disasters. In a highly anticipated move the verdict on Nakheel remains pending till the handover of Jumeirah palm properties.
Dubai Properties, Sama Dubai, Damac are still yet to prove to the market, more than Nakeel. Reassuringly, the record for Dubai properties the builder of 40-tower Jumeirah Beach residences complex holds good.
Mid and small size developers are very hard to categorize since they are numerous, although they have many projects yet to be completed. For e.g. Tameer a 107-story tower along with a 91-story tower in process at Dubai Marina are still in the pipeline. This project is basically a master plan of Emaar and contains numerous Emaar properties, yet it has the stakes of many small developers arising needs to be re-examined. To generalize, apart from the JBR project, less than half of Marina towers have been built whereas the larger ones are yet not started or are in primary stages.
To present a bigger picture:
The workforce is largely unskilled, poorly trained and poorly paid.
There is a huge competition for skilled and experienced consultants, managers or contractors.
The supply of materials and equipment isn’t free flowing.
To add up, powerful like Emaar have more leverage, but are less accountable for individual clients. Small players on the other hand struggle to get the work completed. The work carried out in the past 5 years shows the industry has entered the middle stages with large levels of expertise locally. Even the overexploited and underpaid workers display significant skill on job promoting higher success rates for achievement of targets.

What is your property portfolio?

The real estate investment trusts (REITs) are very popular investment vehicles in US having laws that were enacted in 1960. Although the name seems less familiar but these have become popular in the Far East.
These tax-privilege entities have been introduced by many countries. The investors in UK and Germany have this option since the start of the year. According to young’s global REIT report 2006 and Ernst, the market capitalization for REITs stands at $608 billion making its presence felt in global economy.
The investment trust law was passed in Dubai last August due to which many REITs are expected to be listed this year forming liquidity pools for property market.
Australia’s Macquarie bank and Abu Dhabi commercial Bank were supposed to launch a $2 billion DIFC REIT last month, to be listed on DIFX. It is yet to materialize.
The standard structure for REIT was conceived to create investments for Dubai real estate in a securitized form i.e. in investment units rather than a piece of real estate itself. Therefore it is a collective investment scheme designed in a unitized structure.
Investment perspectives:
Compared to equities, REITs give higher yields, often as much as five percent. They are considered more desirable due to required transparency and disclosure as compared to other property development schemes.
But awareness is required about the inverse relationship of REITs with interest rates. The prices of REITs shoot up when rates decline leading to a drop in yield. But yield rises when rates rise, allowing prices of REITs to go down.
For assets like real estate, the REITs or so called closed-end funds are better investments unlike open-ended or mutual real estate funds which are prone to redemption and money issues.
The director supervision at Dubai Financial services Authority (DFSA), Simon Gray expressed the rationale for the institute by saying that the investment objective in income generating real estate is engineered to distribute 80 percent of the income generated amongst the unit holders. He confirmed that tax advantages that are one of the drivers of REITs across the world are just an academic point here. He also added that providing facilities to investors for investing in these trusts and thereby getting advantages of professional management, higher liquidity, diversified portfolio and reduced risk also allows individuals to make small investments to create a stable income stream for themselves.
How should a local investor go about receiving REITs?
REIT must be a public fund in Dubai distributing 80 percent of annual income and should not be invested only in a single property. The CEO of Emirates financial services Suresh Kumar points out the challenges in store for REITs. He says that these have taken a long time to come here and are still not a specific example. Therefore to host this new comer, some adjustments have to be made in the ongoing investment culture.
For small investors looking at short term capital gains it may hold as challenge to present something with a stable and long term bond like structure. It would be of benefit to institutional investors or for instance pension funds, i.e. for those looking at mixed income type investment; however the risk friendly investors may not find it very appealing.
The head of research at Shuaa Capital, Walid Shihabi considers it very appropriate to introduce the REITs in the market. He believes that these are a means for opening up the Real estate sector as an investment avenue without small investors involving with specific risks. He described this as having nothing to do with the current real estate cycle in terms of prices, although it has a lot to do with market’s development and maturity status. He exclaims that property owner laws are much clear these days. According to Shihabi the right time to invest in REITs would depend on their property portfolio, expected yields and track records along with the expectations of performance.
Gray from DFSA refers to the stock market which had drastically declined last year. He feels that the demand-price regime would reinforce the investment scenario here. He adds that people want to see diversity which can come with a degree of flexibility along with avoiding the concentration of risk.

Is Dubai on similar lines to Singapore or Hong Kong?

The EFG Herms report on Dubai Property was published last month establishing 2007 a year of transition for the local market here. A gentle decline pattern observed in Singapore from 2000-03 was highlighted as being the likely scenario for future here. Hong Kong saw a huge boom in property sector pre British handover in1997 which rose to a peak position in 1998. Since then the prices fell down hugely by 70 percent till 2003 before they started their recovery coarse. By the end of 2006 the property prices in Hong Kong were greatly recovered and are expected to rise further by 20 percent in 2007. Therefore the investors in Hong Kong followed an unstable path till now.
The property prices in Singapore went up by 37 percent in two years after 1998. After millennium these prices fell by 30 percent till 2003 but have improved by 10 percent since then.
The Scenario in Singapore:
According to EFG Herms the present day demand and supply situation in Dubai is much like that of Singapore in 2000. With the Launch of $140 billion cityscape project, it looks parallel to the over development situation that existed in Singapore. However the EFG does not negate the potential corrections in Dubai Property. The Hong Kong scenario would be an extreme possibility, but as Hong Kong experienced, great periods can be followed by tough times!
Hong Kong’s Trouble:
The Asian financial crisis wreaked Hong Kong during 1997-98; later, the 2000 dotcom crash hit hard on local investors; and more blows were given to the economy by Acute Respiratory Syndrome crisis in 2003. However Hong Kong proved to be a strong regional hub that recovered from these situations paving way for some of world’s highest real estate prices. Although it is hard to imagine Dubai share the same rounds of misfortunes, but it is still strong enough.
The most important point that EFG Herms raises is whether the property schemes would actually materialize or not. Many projects scheduled to be completed are worked upon by small developers and not government or quasi-government. The Report figures that many projects might just not reach completion stage due to inexperience and small size of developers. Therefore the market adjustment for supply in a slowdown situation could by much larger than estimated.

Property prices make banks vulnerable:

Dubai Property: Seeing tremendous growth of assets in economy, the Leading banks in UAE are providing exceptional financial services. However, this growth remains overshadowed by asset and oil price volatility. This statement was provided by standard and poor in its credit risk analysis of banks based in UAE.
The credit analyst of standard & Poor’s, Emmanuel Volland expressed that although banks had the capacity to absorb sharp drops in 2006 local equity prices, the real estate prices may have much severe consequences. With total asset worth of Dh714.1 billion ($194.3 billion), the UAE banking system is second largest amongst others in GCC.
The S & P analysis state that there are likely to be two serious consequences pertaining to last year’s market correction for UAE banks. The business volumes are low, particularly personal for share trading and consumption both. There is also a pressure on household disposable income, whereas indicators for asset quality are set either to plateau or reverse.
According to reports the asset quality could show deterioration if oil or real estate prices fall, even though the asset quality is showing an improvement. The bigger banks would still be less affected as compared to smaller ones in the real estate Dubai market. These large banks have been well prepared through implementation of strict policies of margin lending. They have set aside additional provisions and have even strengthened their capital base.
Standard & Poor’s have a major source of concern for UAE banks i.e. the rapid price increase in the past few years for real property. It is furthered by increasing population due to rise in expatriate worker numbers, along with permission for non-nationals to own property in some areas.
The report examined that real estate market fall-down would severely impact the banking industry since this sector is capped by a 15 percent of banks lending limits as per domestic regulation. The overall economy is further based along property development and trading having a skeptical behavior. This can indirectly affect the less diversified banks.
Banking industry of UAE has seen some high-end growth in past few years in loan and deposit areas. The huge non-current profits from IPO’s and brokerage transactions have given good financial performances for domestic players, an attribute which is hard to duplicate in 2007. Volland added that there has been an increase in price competitions in recent years that has put pressure on along with tempting fewer risk-averse participants to ease on underwriting procedures.
UAE economy is highly dependent on hydrocarbon sector, although much less than other in GCC. Almost 40 percent of the GDP comes from oil giving 70 percent for government revenues. Since public sector is the main stay of economy, it tends to have effects on bank performances. However, according to S & P report UAE is better structured to handle fluctuations and shocks than other GCC countries due to diversification of its economy. Further, large foreign assets generate good revenues giving some cushion to the economy. The current economic momentum has given Dubai an advantage to increase diversification immunizing both government revenues and GDP from fluctuations in oil prices.
Mohamed Damak who works as a credit analyst for S & P believes that concentration of risk is a major weakness that could pave way for credit issues for less capitalized and vulnerable institutions. He adds that their assessment for banking system in Dubai includes UAE’s interventionist policy, which is leaving the industry more prone to bigger problems.

Principal International considers the growth biz in Dubai property secure

Newswire today Of United Kingdom reported saying “despite predictions, the Dubai property market is not set to burst yet!”
The doubts regarding the outburst in property prices have increased speculation in the market for a future down trend. However, experts say that these prices haven’t reached their peak yet. Over the next two years Dubai would see 200,000 new units, clearly indicating promising future for property market in Dubai. The demand from overseas investors and new expatriate arrivals is also a cause for this up trend. Ten years hence, prices are expected to increase by 50 percent from the current level with a 10-15 percent average price increase each year. This situation would prompt an increase in demand for affordable housing for the lay man.
Mortgage prices in property Dubai are expected to come down from their current higher level as the mortgage market matures. Dubai is one of most profitable markets in the world with a tax free environment promoting high rental yields as much as 15 percent. Dubai market also provides a high standard of living along with crime free environment attracting investors and second home buyers here.
Recently it was announced that world’s only sports city would be built here, adding another feather to its cap. It would cover an area of 50 million square feet incorporating 4 multi sport stadiums and a championship golf course. Not far behind in the race, Manchester United is opening a training school and International cricket council is looking forward to setting up its head quarters here.
Capitalizing on the high-end growth, principal international is keen to offer a section of off-plan property at Palm Jumeria along golden mile. The rate starts from £240,000.

More prosperity in store from India-UAE ties

Bangalore, Karnataka 19th January, 2007: Sheikh Saud Bin Saqr Al Qasimi, the crown prince and deputy ruler of Dubai said that there is more prosperity in store form association between India and UAE; Qasimi was addressing a valedictory function held by CII (confederation of Indian industries). He exclaimed that in accordance with a four decade old view of real estate Dubai becoming a hub to global investment, this region has seen a dramatic change in tahat direction emerging as a major economic power in the Gulf.
He said that it is essential never to be satisfied with what has been achieved, instead, there should be a constant effort towards further improvements on it. He also expressed that progress and improvement is only possible when people having similar visions join hands. Qasimi said that Ras Al Khaimah, an emirate of UAE, is on a new course to development. For the Indian scenario he commented that positive changes measured over past few years in Indian economy were a result of far-sightedness of their leaders and entrepreneurs. He further added that India and UAE have a long history of business and trade and this alliance would be profitable for both.
Khater Massad, the investment authority chairman as well as an advisor to crown prince, made a presentation at this session. He said that RAK was like a gateway to Gulf countries being one of the seven Emirates in that region. He explained the attractive investment opportunities in hospitality and manufacturing industry with free trade zones in RAK. He said that many Indian companies are successfully operating in RAK, as is evident from growth in business and investment in the region.
R. Seshasayee the managing director of Ashok Leyland and president of CII thanked Qasimi’s leadership and its pragmatism that has helped India successfully increase trade relations with the Gulf.
Parallel to this session, Fouad Issa al-Jouni the Syrian industry minister invited investment from India and expressed that conditions were favorable and stable for enterprises in this west Asian country. He said that Syria presents a unique geographical location along with diversified economy and ongoing trade liberalization process, much favorable for investment options. He further added that free trade zones in Syria provide a fantastic environment to investors.

Investing Real Estate in Dubai

There is a perpetual speculation amongst the Dubai real estate observers whether or not this fast upcoming business and tourist destination in the world map will ever come up at par with the fortunes of mature real estate markets of London or Hong Kong. Factors have been examined that could be instrumental in ripening of the property markets of Dubai making them high returning and sustainable for the long term land investors.
The current trend of buying off stock plans and realizing capital gains from them as soon as possible makes the real estate in Dubai very ephemeral and is not sustainable at all.
Dubai is the land of immigrants coming here on work permits with no long term plans to stay back. They have no intensions investing in real estate here and prefer to rent the property in Dubai for the fixed time they have to stay here. Hence the future of demand for real estate is definitely high here as in Hong Kong or London but it is for rental. The property owner rides on the income from the rent of the property stock, the cost of which keeps multiplying with the typical real estate cycle which restarts as the market matures.
The present short term crisis in the real estate markets in Dubai is healthy and is rather much required considering the long term economics. There is a desperate need for elimination of shaky speculators and developers who are financing their projects on the back of the proposed stock sold and those in the weak financial situation to clear the market which could be then rebuilt on the dynamics of the real demand –supply equation with genuine and long term players entering the real estate business.
Currently Dubai is fast being geared up as keen business player in the global market on the lines of Honk Kong, New York and other world class cities. With the completion of its esteemed project of Dubai land it will come up as one of the prime tourist destinations although it is already the undisputed business capital of the region and will remain so in times to come considering its up market and remarkable free trade zones and low/no tax policies. The concessions and facilities extended by the UAE government will go a long way in facilitating the establishment of Dubai as the leading financial hub and a global player in the world markets. This should see Dubai through higher in demand in its real estate with global biggies setting up their offices and business in Dubai and the demand coming from its affluent public simultaneously. The prices will substantiate strongly with the ever multiplying rental yields from the property assets and the resale options over the years, an aspect of income recovery inherent in the Dubai’s economics considering its transit population structure.

Dubai and Hong Kong

Frequent parallels are drawn between Dubai and Hong Kong on account of striking similarities between them. It is a cherished desire amongst the real estate investors interested in Dubai as to whether it will ever raise up to the standards reached by the rolling and booming economy of Hong Kong and become a location par excellence in terms of high value real estate amidst the entire Arab land. Dubai like Hong Kong is a highly developed trade and commerce hub, sophisticated free trading zones with low/no taxes in its ambit and a logistics centre for the wider region.
It is equipped with skilled and hardworking expatriate population which is based here for work. In the backdrop of these similarities Dubai has drawn ambitious plans to come on the likes of Hong Kong and has already developed it’s financial, business and tourism sector. Hong Kong has its Disneyland while Dubai land is under construction.
If Hong Kong is a gateway to big wiz China, Dubai is to the petrol rich Middle East with greater US trade deficit. Hong Kong is world’s most populous city with mature real estate sector; Dubai is fast geared up to meet its destination.
The observers are confident that the boom in the Dubai economy is here to stay considering the high petrol prices which will serve as magnet for investment. Hong Kong till date retains premier position in terms of its commercial and residential properties in spite of the Asian Financial Crisis in the late 90s saw the collapsing of the erstwhile mighty Asian tigers and the situation of ambiguity during the handing over of Hong Kong to the Chinese government. This clearly indicates hub cities all over the world will have expensive real estate even if there is short time downslide and this parallel can be drawn for Dubai as well.
In the event of any crisis as fall in the property rates worldwide or decline in prices of oil following US recession the viability of the off-plan real state projects will depend upon the strength of the balance sheet of its developer to be able to carry it out through completion. However the developers relying on the future sales alone to finance construction will be eliminated. This is one of the self corrective market forces that help the survival of the genuine players and helps preserve the value of the existing Dubai property market.

What’s the new face of Dubai property market

Dubai property and its rental yields of 7-10% may be high as per the global property market standards, but this surely elucidates the immaturity in the Dubai property market. If we consider a long run effect, the rental yields should equalize with international property rates very soon. As a result either the property Dubai prices would shoot up or rentals would fall.
A supreme example of a similar property market scenario is that of London. However, here the rental yield (i.e. the total capital value divided by yearly rental income) is barely 2-3 percent. This clearly illustrates that at a higher price level than Dubai property, properties in London have nearly the same rent rate.
A question may be put up here as how can such low property rental rates in the UK support these outstandingly high prices of property?
Some might argue that property prices in the UK are governed by a speculative trend, however, that actual readiness of the buyer can be seen as a prime reason why property mortgage finance is available at lower costs. This is what maintains the high property prices in the UK property market.
If we compare the present day scenario to what existed a decade ago we would find a huge gap with rental yields nearly 16 percent in 1996. However, a continuous upward sloping graph of property prices and decreasing mortgage rates combined with a near national obsession to own a property, a new market trend has been set in the property market since then.
The trend gripping the UK property market which is referred to as mature market for property and real estate, might replicate in Dubai property also.
Many experts believe that Dubai property market may face a downward correction with respect to the Dubai property prices as well as the capital. It is believed that in 2008-09, the market might face an over supply situation which might unleash the adjustment mechanism.
In wake of this speculation it might be difficult for landlords to swallow a sharp cut in rental prices since people manage to somehow cope with rental rates subdued on them. They might repeat a 1999 situation when landlords preferred leaving the apartments unoccupied rather than putting a scissor to the rent rates. However, there may be many amongst the landlords with reasonable financial commitments giving them no choice but the slash the rental rates.

More contributions to Dubai property from Nakheel

Builder of Palm-Islands property in Dubai, one of the biggest of Dubai real estate market, the Nakheel of property Dubai has layed out a plan to start of with construction of 2,300 houses over a plot between Jumeirah Lake Towers and Jumeirah Islands. This project, one of the majors of property Dubai, is named Jumeirah Heights.
This property Dubai project would start of towards the end of this year and would finish up by 2010. There would be three main phases to the development of this property project. First phase would deal with the village centre property, second phase would encompass the fronds and the last phase would have the clusters.
The first phase of this property Dubai project would see 2 buildings constructed with six hundred and fifty houses, and an addition of shops, gymnasium, swimming pools, and play region for children etc.
The fronds would have two mid rise buildings having a set of apartments and seventeen town houses. These two segments would have 2-3 bedroom flats accommodated with separate private gardens. These fronds would also encompass a wide range of facilities for leisure.
Once completed, this Dubai property project would shelter nearly 11,000 people. Nakheel also talked about financing options to these Dubai properties with ratios of 90-95 percent. There has been no comment so far on the costs involved with this project; however as per resources this property Dubai project would include about 20 hectares of land.

Dubai Chamber’s Real Estate Group to unite with Dubai Property Group

In the light of the continuing upward trend in Dubai real estate sector, the real estate wing of Dubai Chamber of Commerce and Industry is to unite with Dubai Property Group (DPG). Real Estate and Property Business Group is the seat of the real estate interests of Dubai Chamber. The merger is aimed at endorsing the requirements of Dubai’s booming real estate market at present. The said union will take on the name of Dubai Property Group and will be a boon for furthering Dubai’s real estate interests. Moreover, the merger will stand for, protect and uphold the needs of the real estate community in Dubai.
The merger has been announced as a result of a board meeting between Dubai Chamber of Commerce and Industry and Dubai Property Group. Dubai Chamber’s Director General H.E. Hamad Buamim and DPG Chairman Ahmad Al Matrooshi also attended this meeting. The joint decision will give impetus to the already escalating real estate market in Dubai. Dubai Chamber’s real estate group will benefit from the commanding outreach of Dubai Property Group. In turn, Dubai Property Group will benefit from Dubai Chamber’s real estate group having a firm standing as a legal institution working in the area of Dubai real estate.
The decision of Dubai Chamber of Commerce and Dubai Property Group to come together is aimed at ensuring a sound legal structure that is more recognized than ever. Not only that, the unification of these two will be a complementary affair. It will create a direct link between DPG’s information gathering and recommendation activities and the capability of Dubai Chamber of Commerce to execute such activities with a strong legal foundation.
Dubai real estate is a major player in the field of Dubai’s economy. With this partnership in the offing, the real estate business in Dubai will contribute still more to the economic matrix. In the context of world real estate, this will bring in an increasing number of international investors.
It is believed that the merger will be a boon to the current members of both real estate companies. It is also hoped that the amalgamation will be a powerful feature in drawing new members and generating new ideas. The current growth in Dubai real estate market will scale newer heights with this development.
The process of unification will be complete by the end of this year. And with this, the future of Dubai real estate sector is indeed promising.

Snippets from Abu Dhabi Real Estate Market

Abu Dhabi real estate sector is gearing up for the fourth edition of Abu Dhabi Real Estate and Investment Show – IREIS 2008. This mega real estate event will be held from January 30 to February 2 next year. This is in line with the fact that in the last nine months, real estate projects worth 100 billion AED have been launched in Abu Dhabi.
One of the top real estate developers in Abu Dhabi, Aldar Properties has recently come up with real estate projects Al Raha Beach and Yas Island. Al Raha Beach is a 14 billion dollar real estate development which will feature a spectacular water front city sprawling across 5.2 million square metres of land. On the other hand, the 40 billion dollar Yas Island project is a real estate project that will offer facilities like motor sports racetrack, theme parks, hotels, malls, marinas and golf courses. In addition to these two real estate projects, Aldar Properties is also coming up with Formula 1 Grand Prix race track for the upcoming Formula 1 Grand Prix in 2009.
The other real estate options provided by Aldar Properties include the following projects –• Al Bandar: This beautiful bay area has chic glass duplexes and New York style loft apartments on offer. The backdrop is quite impressive with colourful yachts stretching across the beach, bright sun decks and spacious piazzas.• Al Muneera: These are luxury villas with canal and waterfront views.• Noor Al Ain: Located in Central Al Ain, Noor Al Ain offers freehold residential properties in the form of multi-storey apartments.• Central Market: This real estate development in the heart of Abu Dhabi has shopping areas, residential areas and office spaces, along with a sprawling Middle Eastern Souq and a hotel.
Apart from real estate projects by Aldar Properties, there are other real estate developers offering properties in Abu Dhabi. Hydra Properties has come up with a compound city right at the entrance of Abu Dhabi. Known as Hydra Village, this real estate venture has apartments, town houses and commercial spaces enclosed by parks and open areas.
Noor Capital, an investment company based in Abu Dhabi, is offering a real estate fund for the Indian real estate sector. The projected fund is aimed at picking up equity in commercial and residential real estate projects in India.
Reem Emirates Aluminium (REA), an Abu Dhabi-based company has got hold of a 300 million AED contract. REA will provide customized curtain walling, sliding doors and cladding for the Reem Island real estate projects. The company is also undertaking research and testing for the first intelligent façade comprising of a double skin ventilated curtain wall, chilled ceilings and flooring along with LED lighting. This venture is aimed at reducing energy consumption in a building by 40 percent.
The National Investor (TNI) has plans to build two towers costing about 600 million AED at the Capital Centre – a real estate project underway in Abu Dhabi.

Dubai Real Estate Sector - Latest News Updates

The face of the real estate sector in Dubai is constantly changing. In this context, this article is an attempt at providing the latest snippets from Dubai real estate market.
• One of the iconic structures of Dubai real estate, Burj Dubai will reclaim its status of the tallest tower in the world coming Saturday. It will do so by overtaking the existing record holder Taipei 101 (509m).
• The residential units at The Bay Residences in Business Bay, Dubai are up for sale. This real estate project has been developed by Dheeraj & East Coast – a joint undertaking of UAE’s East Coast Group and India’s Dheeraj Group. The Bay Residences are comprised of 190 apartments in all, with options of one, two and three bedroom sets. The modern real estate undertaking is complete with recreational, leisure and retail spaces. At present, the joint real estate venture has about 272 million dollar worth of real estate projects underway in Business Bay.
• The Business Bay has also come to the foreground of Dubai real estate market due to the ongoing development of a 20-storey commercial tower -Water’s Edge. This is a real estate undertaking by Damac Properties. The building will have office, retail and leisure spaces along with a five-level parking lot. Damac has eight more real estate projects in Business Bay area.
• Another feather in Dubai real estate’s cap is the 220 million AED Stargate Project in Zabeel Park. This real estate development will have a spaceship-themed family entertainment zone with 50 retail units in the form of kiosks, shops, restaurants and cafes. A joint undertaking of the real estate development company Osus and Dubai Municipality, this real estate project will be ready by the end of the year. The earlier date of completion was slated for December last year but got delayed due to unforeseen difficulties in the supply of materials.
• Recently, a number of real estate developers from across Dubai came together to celebrate the International Environment Day 2007. The event was organized by Nakheel’s Waterfront and Palm Jebel Ali real estate projects and the Emirates Marine Environmental Group (EMEG) at the latter’s summer camp in Ghantoot.
• The real estate project of Schon Properties is on high demand. Within five days of the launch of Schon Business Park project, about 75 percent of the real estate development was leased out. This real estate undertaking has 410 office areas at Dubai Investments Park.
• A salary survey on the Middle East real estate industry is being carried out by Macdonald & Company, a real estate recruitment agency. The real estate professionals of the region will be surveyed on these indices – remuneration, bonuses and benefits, and job satisfaction. The results of the survey will be put forth at Cityscape Dubai 2007 in October.
• A joint endeavour of Dubai Contracting Company and Arabtec has got hold of a 293 million dollar real estate contract for constructing a 52-storey hotel in Dubai

Agreement between Dubai Real Estate Institute and University of Reading, UK

The first academic institute for real estate studies in Dubai, Dubai Real Estate Institute (DREI) has entered into an agreement with the Department of Real Estate and Planning, University of Reading, UK. The signing ceremony took place at the University of Reading. Dubai Real Estate Institute’s managing director Dr. Mohamed Abdullatif Al Shehi signed the pact with Professor Colin Lizieri, Head, Department of Real Estate and Planning, University of Reading. Both institutes will jointly provide training in real estate as well as executive education programmes in the forthcoming academic year. They will also offer short-term courses directed at real estate leaders and middle managers. In addition to these educational programmes, both Dubai Real Estate Institute and University of Reading will undertake the development of research and degree programmes in real estate studies.
The University of Reading is an epitome of excellence in real estate education. It has one of the most extensive real estate programs in the world. On the other hand, Dubai Real Estate Institute is costantly endeavouring to come up up with high quality educational and training programmes in the real estate sector. The coming together of the two institutions will have a positive impact on real estate professional development. This will be of great help to individuals and companies working in the real estate sector.
Students from Dubai Real Estate Institute will be able to access the digital library of the University of Reading. The library is a comprehensive and authoritative database for students, teachers as well as real estate corporations. In addition to this, the programme participants will be able to attend lectures by real estate industry experts in the University. The senior faculty from University of Reading’s Department of Real Estate and Planning, with a wealth of professional experience and research backup, will be handling and managing the lectures.
Real estate courses on offer:
• Corporate Real Estate Management and Strategy• Corporate Finance and Real Estate Decisions• Real Estate Appraisal and Valuation• Real Estate Fund Management.• Project Management in Commercial Real Estate• Property Investment Strategies and Portfolio Analysis• Property Research and Forecasting• Property Development - Process and Appraisal
In addition to the University of Reading, Dubai Real Estate Insitute has also signed agreements with the Royal Institute of Technology in Sweden and the National University of Singapore.
Students of the joint programme will be issued certificates similar to the ones given to short-term course students in the University of Reading.

More from Dubai Property Market

Dubai rental levels on a rise: Property analysts estimate that Dubai rental levels will be on a rise in the years to come. Due to the appearance of about 292,000 new residents in Dubai property sector every year and the current economic boom, the sales prices in Dubai may also get affected.
Dubai-based KM Properties launch facilities management service: The real estate wing of KM Holding, KM Properties has launched Tamani Exclusive – a facilities management service. Its services will include housekeeping, valet parking, room service, garbage removal, etc. All commercial and residential property developed by KM Properties will be able to avail of the services provided by Tamani Exclusive. The facilities will also be accessible to other property developers in need of facilities management.
Omniyat’s DSS offer: The buyers of residential and commercial property options offered by Omniyat Properties have a chance to win their unit as well as the initial deposit. The property developer has a 4.3 million dollar promotional campaign in the DSS, wherein the first 200 buyers will enter into a draw.
Cappadocia on Sale: Cappadocia, a residential property project at Jumeirah Village developed by G&G Partners, is on sale. The property venture has on offer a range of studios, apartments and penthouses with health club and swimming pool facilities.
Mounting construction costs in UAE: There is a looming rise in property construction costs due to a hike in the price of building materials in the UAE. Another factor impinging on the property construction costs hike is the 85 percent increase in sea freight rates from East Asia to Dubai since May this year.
Gulf waterfront exhibited: Gulf waterfront property projects will be displayed in the 7th International Conference on Coastal and Port Engineering in Developing Countries. The event will be held in Dubai between 24th and 28th of February, 2008 and will exhibit waterfront property projects from the GCC countries.
Victory Heights contract: Al Jabber Group got hold of a 266 million dollar contract for constructing villas at Victory Heights, Dubai Sports City. A residential property development with lush golf courses, Victory Heights will be home to about 935 villas in near future.
New road to Downtown Burj Dubai: Emaar has started a new road to its Downtown Burj Dubai property project. This road will complement the existing access via Doha Road.
Samsung gets Palm deal: Nakheel Properties has granted a contract to Samsung for building six of the eight Palm Jebel Ali link bridges. A major portion of land reclamation on the Palm being complete, this contract is one of the first few steps to develop the infrastructure of the premium property project in Dubai. The tentative date of completion of these bridges is November 2010.

Get Up-to-date on Dubai Property Market News

Rising inflation rates in Dubai are proving to be an obstacle for a lot of Dubai property buyers. In such an eventuality there will be fewer takers for Dubai property. Dubai is a city that is constantly coming up with new property projects of world class standard. According to property experts, if inflation rates continue to rise, it might have an adverse effect on Dubai real estate sector.
Meanwhile, newer projects have emerged in Dubai property market.
Latest property projects under construction in Dubai:
1) Commercial i) Fortune Pearl: A business tower in the Business Bay area of Dubai, this property venture will offer office space of about 300,000 square feet in 19 storeys. The construction cost of this property is about 108 million US dollars. This project will be available in Dubai property market sometime in 2009.ii) Silver Tower: A freehold commercial property development at Dubai’s Business Bay, Silver Tower will mostly consist of office spaces. A property that will cost about 122 million US dollars for its construction, Silver Tower will be a 31 storey building with 260 offices spread over 27 of its floors. Dubai property market will be able to claim its availability for sale in 2009. iii) King Abdullah Economic City’s power generation grid: A 110/380KV power generation grid is under construction for the Economic City property project by Emaar. For this, it has signed a deal with Siemens. Their will be two phases in its construction – the first will be over by the end of this year, and the second by June 2010.
2) Residentiali) Queue Point: Construction on 1,031 property units in the first phase of Al Mazaya’s Queue Point project in Dubailand has kick started. In this regard, Simplex Infrastructures has been handed over an 87 million US dollar contract for the construction of 838 residential property units. On the other hand, Model Engineering Contracting has about 20 million US dollar deal for the construction of 193 units.ii) Palm Deira Corniche: The first phase of construction is underway for the 81.6 million dollar Palm Deira Corniche project. This 30m wide and 9 km long Corniche will have parks and leisure services, along with a marina. Once completed, this will complement one of the premium property options in the world.
Another hot news of the day from Dubai property market is the reduction in the Notification of Completion certificate by Emaar Properties. Property owners across Dubai require this certificate at the time of selling their estate. There has been a whopping 90 percent slash in the same.
This much for today. For more on Dubai property news and updates, keep visiting our News column in future too.

Real Estate Regulatory Authority Set Up in Dubai

Recently, a real estate authority has been set up by Dubai government. This Real Estate Regulatory Authority will be functioning under the Dubai Land Department and will regulate real estate developments in the emirate. The Authority will supervise real estate developers, financing companies, real estate management institutions along with associations of real estate owners and brokers. It will also have control over real estate strategies, policies, registration and regulation.
As mentioned above, this regulatory authority will be operating under Dubai Land Department. The Dubai Land Department was established by the late ruler of Dubai His Highness Sheikh Rashid bin Saeed Al Maktoum on 24 January, 1960. The department was set up with an aim to oversee land and private property affairs in Dubai so that the registration of real estate assets could be undertaken in an organized manner. Over the years, Dubai Land Department has kept step with the giant leaps of Dubai real estate sector. All matters related to the legalization of real estate assets have been taken care of by the department so far. It has enabled a streamlining of the registration process and also helped in safeguarding the rights and interests of Dubai real estate holders.
Now, with the establishment of Real Estate Regulatory Authority, Dubai Land Department has the assistance of an executive and corporate organization that will have financial and administrative autonomy. In addition, the Authority will also conduct research studies and projects related to Dubai real estate.
Meanwhile, Dubai government has also passed a law that commands real estate developers to keep separate trusts for investors’ funds. Under this law on Guarantee Accounts, Dubai off plan real estate buyers will make payments through special accounts. These accounts will be managed by banks and will keep an investor’s funds separate from the developer’s. The latter will get hold of money from the accounts throughout the different phases of construction.

Dubai Real Estate Projects in the Pipeline

DIRC real estate projects:By the end of this year, Dubai Investments Real Estate Company (DIRC) will have real estate projects worth 3.81 billion dollars under its belt. Majority of these projects will be located in one of the emirates the name of which has not been disclosed as yet. The real estate wing of Dubai Investments, DIRC has 1.09 billion dollars worth of projects at present.
Palm Jumeirah monorail:For operating the 381 million dollar monorail project on Palm Jumeirah, Dubai real estate giant Nakheel has selected SMRT Engineering based at Singapore. The 5.45km long double tracked fully elevated structure is being built by an association of real estate construction companies. The consortium is being led by Marubeni Corporation of Japan. The construction on this project will be over by November 2008. Once completed, the monorail will be one of the lifelines to the real estate marvel of Dubai – Palm Jumeirah.
Business Avenue towers:A local real estate construction company in Dubai has got hold of 216 million dollar deal to build towers for the Business Avenue project. General Construction Company will be building these towers along with real estate developer Al Mazaya Holding at Jumeirah Lakes in Dubai. Business Avenue is constituted of three commercial towers with 45 storeys in each. Dubai real estate market will witness the completion of the project by 2009 year end.
Downtown Jebel Ali mixed-use real estate project:Work has kick-started for building the infrastructural facilities for 13 billion dollar mixed-use real estate project at Downtown Jebel Ali. Construction on roads and installation of electricity, irrigation, telecommunications and district cooling systems is underway. According to the plan, this real estate venture in Dubai will have 237 residential buildings from amongst a community of 326 buildings in all.
72 Business Bay towers:Work is underway on 72 of the 220 buildings to be constructed for the 30 billion dollar Business Bay real estate project in Dubai. This project will have an assortment of residential, commercial and retail units. The construction on this real estate venture will witness completion sometime in 2015.
Dubai Municipality Tower:DM Tower will be a 20-storey building near the main office of Dubai Municipality in Deira, Dubai. Due to be completed within 18 months, this real estate project will have office spaces.
Villa deal:One of the leading real estate construction companies in Dubai, Arabtec has won a 327 million dollar contract for building 1,047 villas across Dubai. This project is slated to get completed in about 32 months.
Arjan:Construction has begun on the infrastructural facilities for 5.4 billion dollar Arjan real estate development at Dubailand.

Nakheel to Develop Retail and Leisure Facilities at Palm Jumeirah

One of the biggest names in the property industry across the globe, Nakheel has disclosed plans for leisure and retail facilities for Palm Jumeirah residents. The services will be available through Nakheel’s Shoreline Apartments clubhouses. There will be five clubhouses in all.
Nakheel has entered into an MOU (Memorandum of Understanding) with Emirates Group’s Emirates Leisure Retail in order to begin operating the retail and leisure facilities at the clubhouses by the year end. Initially, the services will be provided at four of the clubhouses. Membership of the clubhouses will be open to the residents of Shoreline Apartments. However, the adjoining restaurants and retail facilities will be accessible to general public.
There will be an array of facilities at each of the clubhouses. A brief overview of the amenities provided is as follows:o Restaurant/ Bar with a Mediterranean, South American, Australian or Asian themeo Coffee shopo ATMso Gymnasium with state of the art health and fitness equipmento Spao Kids’ clubo General storeso Nail barso Hairdressers
At present, a handover of property in the first phase of the Palm Jumeirah is underway. Since the end of last year, more than 1,200 units have been handed over and about 500 families have already moved in on the island. A pulsating community has started developing and good leisure and retail services are required for the same.
Palm Jumeirah is one of the landmark projects under construction in the Dubai property market. At present, it is the largest man-made island in the world with residential, leisure, retail and tourism units. Over the next five years or so, Palm Jumeirah will be a world class resort with more than 30 beach front hotels and a plethora of leisure and retail options.

Dubai Real Estate Report 2007

This week, MEED has released Dubai Real Estate Report 2007. The report provides a deeper insight into the supply-demand equation in Dubai’s fast expanding real estate sector. It is a valuable tool for business houses and individuals associated with construction, investment and real estate segments of Dubai economy.
MEED has conducted the research in conjunction with external real estate experts. It took about 2 years to conduct the required real estate surveys and studies to arrive at the comprehensive report. Among other sources, it has derived data from prominent real estate developers and their growth plans and also from government setups working for Dubai real estate sector.
Highlights of MEED Real Estate Report 2007:o A storehouse of accurate data on demand-supply trends in Dubai real estate market.o Detailed assessment of the real estate dynamics in Dubai.o An account of each of the economic factors that will have an impact on Dubai real estate in future.
The report testifies Dubai’s real estate boom in the last few years. It also predicts that the real estate industry is going to be a major factor behind Dubai’s economic development until at least 2010.
A few pointers from MEED Real Estate Report 2007:o Dubai economy has been one of the best economies in the Gulf that has shown a considerable growth in the last five years, largely due to the property sector.o Real estate businesses have witnessed an average growth of 25 percent per annum over the last few years. Government backed developers such as Nakheel, Dubai Properties and Emaar Properties have been largely responsible for this.o Since 2001, real estate construction has increased on an average by 32.7 percent per annum.o Last year, real estate construction made about 12.7 percent of the total GDP.o 75 percent of Dubai’s planned projects in the coming decade will be related to the real estate sector.o Although, 175,000 new residential units will be available by 2010, the demand will still outstrip supply.o Over the next decade, the value of real estate projects under development will amount to approximately 230,000 million dollars.
So at least in near future, Dubai real estate will play a crucial role in Dubai’s growth into a world city.

Oberoi Group to Enter Dubai Property Market

Dubai property market will now have one of the finest hotel chains in the world, The Oberoi Group of hotels. With a project lined up for the Business Bay, the group has made an official announcement of making an entry into the property sector of Dubai. The 249-key luxury hotel to be run by The Oberoi Group is going to be a joint venture with Rani International – the property development subsidiary of Saudi-based Aujan Group.
For the Middle East, the Group is planning to launch The Oberoi Zahra - a luxury cruiser on the Nile cruiser later this year. There will also be an unveiling of Oberoi hotels in Abu Dhabi, Morocco and Oman. In addition, plans are in the offing for opening five more hotels in India, along with hotels in the Maldives, Cambodia and Bhutan.
Recently, one of Oberoi Group hotels in India, The Oberoi Udaivilas topped the list of the best hotels in the world. The ranking is the most credible international ranking in the travel and tourism industry. It came from Travel + Leisure readers’ poll in which hotels across the globe were rated on criteria ranging from location to accommodation to services. The same survey rated two more Oberoi Hotels on Indian soils – The Oberoi Amarvilas and The Oberoi Rajvilas as occupying 10th and 11th position making 3 Oberoi Hotels among the top 11 hotels in the world.
The property undertaking is part of the hotel chain’s extensive plans to widen its current network of 32 hotels and luxury cruiser across 5 countries.

Latest From Dubai Property Market

Dubai Central Laboratory (DCL):
Dubai property sector will soon have a premises for Dubai Central Laboratory and its IT Network Operations Centre. This is going to be a Delhi Municipality property project worth 76.5 million AED. The property will be ready within one year and ready for possession by September next year.
Palm Jebel Ali progress:
Work on Palm Jebel Ali, a premium property in Dubai, is in full swing with 55 percent of ground improvement works already accomplished. For this, Nakheel has made use of a technique called ‘vibrocompaction’. In this method, the bearing capacity of the soil is increased through specially designed vibrating probes.
Marza Plaza:
A new residential tower Marza Plaza is offering resort-style property options on rent to business executives and professionals. This tower has been launched by Dubai Festival City and has 510 residential units.
Dubai Pond Parks:
Dubai Municipality is constructing two pond parks in the city. Dubai property owners will get a welcome respite with the coming up of these green patches. Worth 42.6 million AED, these parks will be ready by early next year.

Dubai Rented Property to Heave a Sigh of Relief

Dubai government has plans underway for the development of low-cost residential property units. This is aimed at offsetting the ongoing shortage of supply with respect to demand in the Dubai property market. It is hoped that this move will also ease the property rent inflation at present. Recently, Dubai property research analyses have come out with staggering delays resulting in a shortage of 300,000 residential units in Dubai. In addition to developing new units, Dubai authorities are also working on a three to five year tenancy agreement. This will fix property rents for a certain period of time so that the rise in rental costs can be kept under check.
Moreover, Dubai property market may soon witness a revision of the current 7 percent rental cap. Dubai’s Real Estate Regulatory Agency will either relax the property rental cap or keep it as it is. A final decision will come out by the end of this year.
So in the coming months, Dubai property scenario will be a better one for those opting to rent residences in the emirate.

29, Dubai Boulevard – Tower 2 Launch

The 45-storey Tower 2 of 29, Burj Dubai Boulevard will be launched on August 25, 2007. There will also be a sale of apartments situated on the podium of the development. A whole range of properties are available for investors – studios to one- and two-bedroom apartments to exclusive three-bedroom boulevard apartments. The units are complete with world class amenities, modern fittings and equipment. For this venture, mortgage options from a number of financial companies are on offer.
For the two residential towers, there will be separate and spacious lobby entrances and large basement parking. The boulevard apartment residents, on the other hand, will be able to avail of podium level parking. All residential units have access to high-speed internet connectivity and sophisticated entertainment and telecom networks. Other facilities include a modern gymnasium, communal area, landscaped pool deck, swimming pool, children’s pool and multi-purpose room. In addition to the shopping options to be opened at the ground level, the Dubai Mall and Burj Dubai Lake Promenade are in the vicinity of the apartments. Dubai’s commercial and business centres are also within easy reach. There has been a positive response to the recent opening of residential units in Tower 1 of the boulevard. Moreover, 29, Burj Dubai Boulevard is a one of its kind architectural endeavour by New York-based designers. Downtown Burj Dubai is a 73 billion AED is a mega project that puts together residential, commercial, leisure and hospitality spaces around a lake and a boulevard. The centre of attraction is of course the Burj Dubai with its status as the tallest tower in the world. With its strategic location and stunning design, the boulevard will become an entertainment and leisure hub in near future.
From August 21, interested investors can visit the Downtown Burj Dubai Sales Centre for pre-approval. Several residents have already moved in and two hotels have also started operating in the area.

Dubai Land Department Gives a Nod to Trust Account Service of Property Financing Company

The trust account services of a major residential property financer in Dubai, Amlak Finance have been approved by the Dubai Land Department. In the light of this development, the property finance company has begun expanding its service to major Dubai property developers. The approval implies that the rights of all institutions and end users involved in Dubai property sector are protected. The signing ceremony was held at the Dubai Land Department headquarters where the Trust Account Services were formally launched.
Dubai Land Department had set up the Real Estate Regulatory Authority which in turn has issued laws that bind property developers in Dubai to open escrow accounts with reputed banks. The authority has undertaken the move in order to regulate the functioning of property industry in Dubai. This bid to offer turnkey solutions to Dubai property developers will help in creating hassle-free and efficient dealings in the property sector in Dubai.
Besides trust account services, Amlak will also take the following steps for Dubai property investors:• Enhancing financial flexibility to the end-user in Dubai property market.• Offering sales services for property units.• Monitoring and providing customer support services and follow-up after sale of property units.• Providing legal documentation to major property developers in Dubai.• Providing construction finance to major property developers in Dubai.• Undertaking progress evolution of the approved property projects of its clients.• Ensuring the delivery of world class property in Dubai real estate matrix.
Amlak Finance PJSC is the largest Islamic Home Finance Company that is publicly listed and also offers Sharia’s solutions. Over the years, it has carved a niche for itself as a complete regional residential unit finance company in Dubai property market with the result that it already has strong alliances with various real estate developers. The present move will boost Dubai’s status as a major player in the realty world.

New Dubai Property Project from Nakheel

Leading private property developer in Dubai, Nakheel has made a public announcement of its latest project. The new development Al Furjan is going to be a residential property project in Dubai. With 4000 luxury homes, it will be situated in the heart of new Dubai. The property development has been well planned with abundant open spaces that will provide a fresh whiff to Dubai property market. Moreover, the property will be complete with its own supermarkets, restaurants and schools. Dubai property analysts hope Al Furjan will prove to be an outstanding investment opportunity.
A new model for community living in Dubai, Al Furjan is based on design and layout that have been inspired by the principles of ‘new urbanism’. The property development has also drawn from traditional neighbourhood ideas prevalent in Dubai. Al Furjan will provide Dubai property market with a range of options in the form of 3, 5 and 6 bedroom villas along with terraced residential property units. There will be lots of open spaces aimed at families to interact and enjoy relaxed leisure time. In the first phase of development of the property, there will be two kinds of architectural design in focus – o The Quortaj: a blend of Mediterranean and Islamic architecture.o The Dubai: the local architectural and design features.
Every aspect of the property venture will provide Dubai residents with Arabic and Western style living at the same time. In addition, there will be a choice of property units on varying plot sizes and streetscapes in new Dubai. Within Al Furjan, pedestrian pathways with natural landscaping will be woven into the community. It will cater to different budgets, requirements and tastes of Dubai property investors. This property development in Dubai is primarily meant for family housing.
‘Al Furjan’ is a local phrase that stands for a small village or a collection of residential property units that have a traditional touch. Each of the four neighbourhoods in Al Furjan will have its own Village Centre with coffee shops, supermarkets, open spaces, restaurants and gyms within walking distance. Once complete, Al Furjan will have a beautiful blend of Dubai’s historical and modern facets.
On August 26, 2007, a private launch of the property took place. This was exclusively meant for the clients of Johara – the banking division of Dubai Islamic Bank that caters to VIP ladies. On the 5th of next month, the general sales launch will kick-start.
Dubai property market hopes to scale newer heights with the development of Al Furjan.

Dubai Real Estate Escrow Account Updates

Falcon City of Wonders – a premium tourist, residential and recreational real estate development in Dubai Land has been registered under Dubai Land Department’s new real estate law no. 8. This law which came into force from June 28 necessitates the use of escrow accounts by real estate developers in Dubai. Falcon City is the first mega real estate project in Dubai to have taken the initiative. Other major development in the real estate escrow account matrix has been the addition of a special arrangement. Now even offshore real estate developers aiming to build properties in Dubai can open escrow accounts through Dubai’s Real Estate Regulatory Agency.
Real estate developers who wish to open escrow or trust accounts are required to submit certain papers, including their trade licence. Meanwhile, Tamweel PJSC has been officially awarded the status of a real estate escrow account agent. For the first time, the Dubai Land Department has given this appointment to a mortgage provider in Dubai real estate market. With the help of a sprawling network of partner developers, Tamweel will convert current projects of 75 Dubai real estate developers into an escrow framework. Another real estate mortgage provider in Dubai – Amlak Finance has also been given permission to launch escrow account services.
The Real Estate Regulatory Agency is taking steps to ensure full participation by real estate developers in Dubai. It seeks to address cases where real estate developers in Dubai are still taking payments directly from Dubai property buyers. From now on, permits will only be given out to new Dubai real estate projects that have an escrow account. All real estate projects in Dubai have to be under the escrow accounts by the 28th of December, 2007. However, there are three kinds of real estate developments and the following rules will be implemented on them respectively:
1. 70 to 80 percent complete projects: Do not need to open an escrow account.
2. Projects that have crossed the shoring stage: Need to open an escrow account by December 28, 2007.
3. Projects that have not yet reached the shoring stage: Need to open an escrow account immediately.
The real estate regulatory law has been formulated in order to protect the rights and interests of all parties involved in the Dubai real estate market. The said escrow accounts need to be opened at banks that have been given a green signal by the Dubai government. The escrow or trust accounts are managed by the Land Department’s Real Estate Regulatory Agency.

Dubai Property Developers have Golden Opportunities in Vietnam

Good opportunities are in store for Dubai property developers. Representatives from some of the best property developers in Dubai are heading for Vietnam as part of the UAE delegation to the country. They will be exploring the Vietnam property market for future projects. In comparison to other GCC countries, Dubai’s share in Vietnamese property investment sector has been quite limited so far. Leading property analysts opine that Vietnam’s fast developing property sector has the potential to offer exciting investment opportunities. In this wake, the Dubai World invested 200 million US dollars on a Ho Chi Minh City container port recently.
It is estimated that by the end of the year, the foreign participation in the property investments offered by the country will exceed 13 billion US dollars. The tourism industry in Vietnam being quite strong, the country is an imminent choice for Dubai investors to endow their money in international resorts and hotels available in the Vietnam property market. To accommodate the ever increasing number of business travellers and tourists, the country is in need of approximately 10,000 rooms of all grades in the next five years. Moreover, the freehold property market may soon open its wings to foreign investors.
At present, there is under-supply of residential property units in Ho Chi Minh City as well as in the capital of Vietnam – Hanoi. In this scenario, Vietnam could be a good bet for Nakheel International – the recently formed venture in Dubai aimed at pursuing property developments outside the emirate. Vietnam has been added to the tentative business interest list of the developers, which already includes countries like China, Singapore and Thailand.
Dubai Chamber of Commerce and Industry is all set for the UAE-Vietnam business forum in Hanoi on September 4, 2007. As part of the UAE delegation, the forum aims at strengthening economic ties between Dubai and Vietnam. No doubt, the property investment sector plays a crucial role herein.

Dubai Shared Ownership Property Forum in the Offing

Dubai property market has a huge potential for shared ownership property both in terms of sales and mixed-use property developments*. However, shared property experts opine that the biggest challenge in this regard would be educating investors as well as developers of Dubai property. One of the ways out of this fix is developing a symposium of Dubai shared ownership property developers and companies. This can have orientation programs towards the relevance of timeshare and related concepts. Many still do not know that timeshare is quite compatible with the traditional Islamic principle called ‘Sukok’, whereby property ownership is in terms of a title or deed. The said symposium in the property market in Dubai can also organize comprehensive programmes, presentations and debates on the various aspects of shared ownership property such as sales techniques, marketing strategies, financing, rentals and regulations.
Dubai having established itself as a leisure destination across the world, the most lucrative shared ownership property option is timeshare hotel units. This kind of property is fast emerging as a profitable venture in the world property market. It is estimated that in the next five years or so, timeshare will see a 50 percent rise worldwide. It can, however, witness a greater growth in the Middle East, in particular Dubai, wherein there have been developments keeping in tandem with the tourism industry. In fact, both tourism and property sectors can benefit symbiotically from each other.
In addition, there have been surveys underway regarding shared property developments in Dubai. Fractionals, condo hotels and private residential clubs are the more prominent alternatives in this sector of Dubai property. The surveys in Dubai property market aim at presenting a quantified database of preferences and perceptions of people towards timeshare and shared property ownership developments.
At present as per the surveys, there are more than 30,000 timeshare property owners in the Middle East. It is also estimated that Dubai economy can get about 2.5 billion dollars pouring in through shared property sector alone.
*Property developments that have a combination of residential, retail and office spaces.

Dubai Real Estate Updates – October 2007 (i)

• The real estate market in Dubai is facing shortage of commercial property units with the result that companies are resorting to villas, hotels or low-grade offices as a temporary respite. According to real estate experts, the shortage is due to:
Dubai real estate construction delays
Dubai emerging as an international business hub
• Construction on 18 Jumeirah Lake Towers will be complete by the end of this year. At present, 95 percent of the real estate project is underway. The complete towers will be available in the Dubai real estate market by 2009.
• Palm Jumeirah – one of the real estate marvels Dubai has on offer – is 55 percent complete and already about 1000 families have moved into this premium address. Once complete, Palm Jumeirah will be home to about 70,000 hotel and home residents. There will be 6000 freehold real estate units in Palm Jumeirah, upon completion.
• Al Hamra Real Estate Development has recently unveiled phase 3 of the Al Hamra Village project. With investment costs worth about 7 billion AED, Al Hamra Village will have a mix of residential and commercial properties. This real estate project is due to be complete by 2010.

Real Estate Deals in Dubai worth 2.77 billion AED

Dubai real estate saw land transactions worth 2.77 billion AED last week. Real estate sales exceeded this amount by 1.83 million AED. According to the Dubai Land Department, the real estate market in Dubai had about 932.94 million AED worth of mortgages last week itself.
Real Estate Transactions by Cost
By the end of the week, Dubai Land Department – government run real estate body – had records of 44 sale transactions across the emirate. Of all the real estate sales last week, the most costly has been a plot in Emirates Hills-2 at a value of 480 million AED. Following this was another plot in Marsa Dubai at 415.8 million AED while the third place was occupied by one in Trade Centre-2 for 220.96 million AED.
Active Sales Location
The most active location in Dubai real estate matrix last week was Palm Jumeirah, which had 9 sale transactions in all. Lagging way behind this was Al Barsha-2 that witnessed only 3 sale transactions.
Highest Turnover by Value
At 503.33 million AED, Emirates Hills-2 had the highest turnover by value in the real estate market. Second was Marsa Dubai at 415.8 million AED, followed by Trade Centre-2 at 220.97 million AED.
Largest Real Estate Sold
The Wadi Al Amardi area had 388142 square feet sold for 27.17 million AED. This was followed by real estate measuring 262762 square feet at 13.14 million AED in the Al Aweer-1 area. At the third place was Shaikh Zayed Road, with a 114689 square-feet plot sold for 146.17 million AED.
Mortgage Scene
Last week, Dubai real estate sector witnessed 23 mortgages worth 858.01 million AED in the records. At the top was an area in Emirates Hills-2 with mortgage worth 384 million AED. An Oud Metha area had a mortgage of 120 million AED.
All in all, it was an eventful week for Dubai real estate sector.

Dubai’s Real Estate Regulatory Agency Puts Agreement Forms to Test

Dubai’s Real Estate Regulatory Agency (RERA) has put to test the first four agreement forms for regulating the sale and purchase of real estate in Dubai. The said forms are being tested through 15 real estate firms in Dubai. Real Estate Regulatory Agency has sought feedback from these firms, following which the forms will be tested on wider market. The participating real estate firms can get hold of the forms from RERA’s website. Only registered firms that have a unique identification number can download the real estate agreement forms.
The second round of testing by the Real Estate Agency will begin on the 1st of December and will last for four weeks. More than 1000 real estate industry practitioners and 150 firms in Dubai will participate at this stage. Plans are also in the offing for mandatory trust accounts for real estate agents, and also for real estate training programs in future.
According to RERA, the forms will become obligatory in Dubai’s real estate transactions eventually. Consequently, there will be uniformity in the transactional practices across the real estate sector of Dubai. Non-compliance with the norms would entail penalties imposed by RERA. Dubai’s Real Estate Regulatory Agency is implementing this in order to ensure transparency, and elimination of corruption in the emirate’s real estate industry.
It has become obligatory for real estate agents in Dubai to keep a proper record of all transactions along with the respective documents (cf. Law No. 8). This information will be handy in the event of disputes and also be paramount in helping RERA to rank real estate firms in Dubai with respect to their achievement.
While coming out with standardized norms and practices for Dubai real estate, RERA takes into consideration the multi-ethnic and multi-lingual reality of the real estate experience in Dubai. Varied educational levels of the consumers are also a crucial factor therein.
Standard forms being tested
o Form A: Listing Agreemento Form F: Standard Contract – Apartmentso Form I: Agent-to-Agent Agreemento Form N: Notification of transaction to Real Estate Regulatory Agency
Other standardized forms will be tested at a later stage. These will include the property management agreement form, buyer’s agent agreement form, and agreement forms related to rentals.

RAK FTZ Welcomes German Delegation

A German business delegation lead by Mr. Hans Spitzner, Secretary, Ministry of Commerce in the State of Bavaria, was received by Sheikh Faisal bin Sadr Al Qasimi, Chairman of the Ras Al Khaimah Free Trade Zone (RAK FTZ) on the 31st October 2006. The visit was well reviewed and joint discussions were held to promote bilateral relations through mutual cooperation. Special focus was laid on identifying areas which would facilitate mutual entrepreneurial interests and invite investments through free trade between both the countries. Sheikh Faisal sent clear signals to the delegation about the enormous business opportunities and support the emirate of Ras Al Khaimah and what Ras Al Khaimah Property intends to offer to the German investors. A large number of companies from around the globe especially from Germany were already fast registering them selves with the RAK FTZ and a whooping 38 percent rise in only German companies getting registered in the ongoing year with this fast developing free zone was encountered.
The German fairs last of which ‘the 9th Arab-German Economic Convention’ was held in Berlin has largely been instrumental in attracting the German companies to invest with the zone and set their bases in this land. Latest to join the league is the InnoVida Holdings Inc a biggie in the ready made homes which plans to invest Dhs 40 million in installation of its state-of –art manufacturing plant at the RAK FTZ.
Maryam al Murshidi, the Assistant director of RAK FTZ showed the German delegation through the free zone area and explained to them of the exquisite support in terms of facilities and concessions that the zone intends to provide to its clients which are tailor made and suitable to all sectors of investments be it be IT, manufacturing, industrial or services. The German business delegation was convinced of the immense yet untapped potential that the RAK FTZ had to offer to the investors and a sure need to strengthen the ties between the Ras Al Khaimah and Germany in times to come.

RAK Properties at Expo

Mohammed Sultan Al Qadi, Managing Director, RAK Properties, Ras Al Khaima’s major real estate developers announced that their organization will extend its proactive support in promoting Ras Al Khaimah in the national as well as international scenario in the real estate sector. RAK Properties will be an active participant at the upcoming Cityscape 2006 property investment and development expos where it will show case their up-and coming projects. The event will attract several high net worth local as well as global investors who seek alternate investment options in the UAE. RAK Properties seeks to complement Ras Al Khaima’s plans for all round development in tourism, sports, media, and retail with yet to be untapped real estate sector in the emirate’s larger plans to bring itself on the world map. In February 2006, RAK launched its first project, the Dh500 million worth, 43-storeyed Julfar Towers, the twin office and residential towers followed by the Dh 10 million Mina Al Arab spread over 30 million sq. feet in May 2006.

Promoting Trade between Germany-RAK

A German business delegation lead by Mr. Hans Spitzner, Secretary, Ministry of Commerce in the State of Bavaria, was received by Sheikh Faisal bin Sadr Al Qasimi, Chairman of the Ras Al Khaimah Free Trade Zone (RAK FTZ) on the 31st October 2006. The visit was well reviewed and joint discussions were held to promote bilateral relations through mutual cooperation. Special focus was laid on identifying areas which would facilitate mutual entrepreneurial interests and invite investments through free trade between both the countries. Sheikh Faisal sent clear signals to the delegation about the enormous business opportunities and support the emirate of Ras Al Khaimah intends to offer to the German investors. A large number of real estate companies companies from around the globe especially from Germany were already fast registering them selves with the RAK FTZ and a whooping 38 percent rise in only German companies getting registered in the ongoing year with this fast developing free zone was encountered.
The German fairs last of which ‘the 9th Arab-German Economic Convention’ was held in Berlin has largely been instrumental in attracting the German companies to invest with the zone and set their bases in this land. Latest to join the league is the InnoVida Holdings Inc a biggie in the ready made homes which plans to invest Dhs 40 million in installation of its state-of –art manufacturing plant at the RAK FTZ.
Maryam al Murshidi, the Assistant director of RAK FTZ showed the German delegation through the free zone area and explained to them of the exquisite support in terms of facilities and concessions that the zone intends to provide to its clients which are tailor made and suitable to all sectors of investments be it be IT, manufacturing, industrial or services. The German business delegation was convinced of the immense yet untapped potential that the RAK FTZ, in the property market had to offer to the investors and a sure need to strengthen the ties between the Ras Al Khaimah and Germany in times to come.

Hilton Ras Al Khaimah Resort & Spa…luxury amidst Arabian Sea

The Hilton Ras Al Khaimah Resort & Spa set amidst private bay is all prepared to welcome the visitors in its ravishing ‘Worldwide Resort’, the first of its kind in the Emirates. The property is a 151 villa suite on the beach front overlooking the blue and dashing Arabian Sea complementing second in the row of Ras Al Khaimah’s existing Hilton Property, the 227-room Hilton Ras Al Khaimah and Beach Club. Mohab Ghali, the resort’s General Manager assures its visitors the joy amidst overwhelming sense of luxury, special treatment, world class superior services, enviable beach privacy and a lifetime experience. To give tourists the feel of the mystique of Arabia, care has been taken to imbue traditional color in its design and décor of this resort.
This northern Emirate rapidly emerging as the ‘hot destination’ is currently much in the favored list satiating the wander lusts of the tourists in search of new thrilling vistas. The gorgeous resort complete with deluxe villa suites all within 30 meters of the 800 meter long stretch of silver sandy beach overlook the mountain views and the ripples of the blue waters of the deep sea. The resort housing two restaurants and two bars is the best deal for your money. Come and enjoy the feel of luxury.
Hilton Ras Al Khaimah Resort & Spa has to offer in its Deluxe rooms from £ 114 per night based on twin share and a seven night stay. This would include breakfast each day, an evening boat tour and a £25 dining voucher to use in the resort’s restaurant.
March 2007 shall see the opening of the vivacious and spectacular 2,000 sq. meter sea-facing spa with nine treatment rooms, hair dressing saloons, sauna, Jacuzzi, Turkish Hamm am Bath and spacious steam, fitness, aerobics and relaxation rooms.
There will be an addition of another 330 well embellished rooms complete with unparallel luxuries each provided with balconies or terraces facing the sea to the existing property in Dubai and due completion by 2008. The resort is bejeweled with four free form, temperature controlled swimming pools, water sports, fully furnished gym, health club, laundry, car rental, business centre, shopping arcade and tour guides.
The Hilton chain is coming up with the region’s first Conrad hotel to be operational from 2008, Jumeirah Beach Residence in September 2007 and the Hilton Dubai Beach Club in January 2008. In tune with its future plans for expansion in the region namely Doha and Kuwait, the chain has proposed plans for new openings in 2008.

Marathon in RAK

The UAE is all geared up in bringing up itself on the world sports map while setting new standards in athletics in the region. The emirate will host world’s richest half marathon on 9th February 2007. The race is scheduled to be inaugurated by Sheikh Saud bin Saqr Al Qassimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah and will attract some of the best runners in the world. The race is open to all and will be licensed as an international marathon by Association of International Marathons and Road Races which has had the previous reputation of organizing major events across the world including the European Cross Country Championship and marathons in Mumbai, Beirut, Jeddah and Lahore. The runners will take a 21.097 km course around the lovely mountain city of Ras Al Khaimah and the winner will be richer by $150,000.
The race will also feature a Corporate Relay Team Challenge that comprises of 4 members, each of which will run for 5km.
A portion from the proceeds of registration will be diverted towards the community programmes for the benefit of the people of Lebanon.
The announcement was made by Sheikh Ahmed bin Saqr Al Qasimi, President of the Executive Committee of the RAK International Half Marathon at a press conference attended by Nathan Clayton Race director, RAK International Half Marathon, Malcolm Murphy, Chairman, Dubai Creek Striders Club, Ian Ladbrooke, Assistant Race director/ Elite Athlete Manager, RAK International Half Marathon.
Ian Ladbrooke remarked that it is fantastic to see such events in the Middle East and the marathon at the RAS will set new standards of races in the area. He further added that it is a great feeling to see so many people gearing up to training and exercising. A healthy population is well motivated and productive to the nation and to the world as a whole.

RAK now in Medicine

On 10th February 2006 Shaikh Saud Bin Saqr Al Qasimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah inaugurated the much awaited Ras Al Khaimah Medical and Health Sciences University’s Bachelor of Medicine /Bachelor of Surgery programme and added yet another feather in the cap in its endeavor to bring the emirate amongst the category of world premier educational hubs. Minister of Health, Humaid Mohammad Obaid Al Qutami and Dr. Yasser Eisa Al Nuaimi heading the RAK Medical Zone and other dignitaries were also present to grace the occasion. The Ruler in his address added that he was confident that the setting of the bachelors programme in medicine and surgery would raise the quality of medical profession in the region. Dr. S Gurumadhava Rao, the University’s Vice Chancellor informed that the institute had its plans to shift to its permanent campus attached to the RAK Medical College within two years.

RAK set to emerge on the World Tourism Map

The northern emirate of Ras Al Khaimah is all set to go into becoming the next popular tourist destination on the world map that would cater to tourists seeking a peaceful, relaxing vocation to the up-market tourist whose interests’ afar the sun, sand and sea. Its closer neighbor Dubai has been busy for more than thirty years into transforming its vast miles and miles of deserts into a wonderland gifting itself and to the world as a prime tourist destination and a world class business center and real estate industry. All these years RAS was happy and contended with its traditional economy while thriving on the sweet fruits of its rapidly growing industrial sector. This northern emirate endowed with the bounties of natural beauty with the mystical Hajar Mountains in the east, the deep splashing Arabian Gulf to the west and the gorgeous Musandam peninsula to the north besides unparallel topography distinctive of the region and mesmerizing enthralling sights soothing to the eyes. The emirate is all geared up to give its already flourishing neighbors thriving on artificial resources a run for their money yet ensuring that it does not give an impression as their mirror image. RAS plans to give its tourism industry a color which is a gentle mix of tradition imbued with a hue of modernity. It seeks to let its visitors get a feel of its rich past while being comfortable with the amenities contemporary life has to offer.
The government of RAS in its endeavor to make the emirate the next important tourist destination is doing so with its well charted out GRAND PLANS ambitiously titled Ras Al Khaimah- Top of the Emirates in joint collaboration with RAK Properties the leading real estate property developers functioning under the aegis of its Managing Director and CEO Mohammed Sultan Al Qadi. The step intends to serve twin purpose of not only bring RAS onto the world map but also facilitate generation of much needed revenue to further the standard of living of its people by bringing in superior projects.
In consonance with this strategy, the government has devised a tourism master plan with tentative investments of around Dh 5 billion which would see the erecting of luxury 4 star as well as 5 star hotels, luxurious residential complexes, an offshore island, mountain areas and redevelopment of the creek area.
The plan also includes the development of Jebel Jais Mountain Resort –a stunning mountain complex which would house a five star hotel, luxurious residential units, a snow slope and a climbing and abseiling centre. The tourism master plan is also covering the restoration and maintenance of the RAS heritage sites and its mountain belts besides the construction of luxurious sea facing four and five star hotels. The emirate is also promoting its Awafi Festival presently popular in the UAE and the Gulf into an international event attracting tourists from all over the globe. The festival organizer claims that more than 150,000 visitors have attended the festival and they plan to bring the European markets into their fold by devising special programmes for them and organizing excursions for them with the assistance of tourist agencies in Dubai.
The last three years has see 68% increase in the occupancy of visitors in six hotels and figure is expected to rise exponentially by 2010.
The RAS Crown Prince and Deputy Ruler Sheikh Saud bin Saqr Al Qasimi’s has recent announced allowing of the foreigners to own residential development property on a free hold basis in the emirate will be a haven for expatriates in Dubai. The completion of the Emirates Road will further reduce the travel time between Dubai and RAS. Many of the people working in Dubai would want to own properties and bask in the in the development benefits of new RAS while escaping from the frustrating traffic congestion of Dubai.
RAK Properties is behind the completion of many of the projects in the emirate including the Mina Al Arab, a complex housing 14 hotels, 25,000 accommodation units, shops, a theme park, Julfar Towers, two 43-storey high skyscrapers for office space and accommodation by the creek and is scheduled to be ready by the end of next year. The design of Mangrove Islands, a low rise residential and commercial building is in pipeline.
In their prestigious list of real estate development projects, a community area complete with golf club, 2000 luxury villas, schools and a shopping mall on the Emirates Road is due completion by 2009. All the developments will be on free hold basis and attract foreigners and expatriates from all over the world into Ras Al Khaimah all set to hit the new horizons in light of its new GRAND PLANS.

The new Age Aquaba

The discoveries of the black gold in the rural heartlands of emirates motivated several of its original inhabitants to abandon the land of their ancestors to mass migration in search of better lives towards the City working for the government or some cushy heavy pocketed Multinational corporations. The potential of this now tribal dominated hinterland transformed into tourist hubs and rejuvenating them back into its original vibrancy has been realized by John Falchetto, a former Canadian journalist of Italian decent who runs RAK adventure company Mountain.
Extreme and is very fluent in Arabic which has made a relatively easy go for him in persuading the village elders for their co-operation in getting to let the villages serve as the base camp for the trekkers. Falchetto identified several ethnic villages all of which date several hundred years nestled in different parts of the Hajar Mountain, as suitable spots for overnight camping for the hikers.
This project which he started three years ago has already been completed for three villages and Aquaba is next on the list of revival to its original splendor, the work for its rebuilding is going on a fast pace. This helmet comfortably sits atop the Jabel Jays is about two hour hiking from the ground level which is flat fenced area where tents can be pitched. A toilet block has been built in the vicinity.
The idea behind the new rebuilt is to break the decade long emptiness and silence that hauls the entire stretch and rehabilitate the hamlets bringing them back to its historical ethnic color of simple life, growing crops, looking after goats as they did hundred years ago. The entire infrastructure including building of water cistern and common places where they would grind wheat is to be revived and get the life here moving as it did a century ago.
The cement and the gravel required for the construction is done by the Pashtuns who now live in these villages along with the ethnic tribal of Hajjar. They originally come from the mountainous region between Pakistan and Afghanistan and are attuned to carrying heavy loads up the steep terrain.

Grand Plans for RAK properties!

The northern emirate of Ras Al Khaimah is all set to go into becoming the next popular tourist destination on the world map that would cater to tourists seeking a peaceful, relaxing vocation to the up-market tourist whose interests’ afar the sun, sand and sea. Its closer neighbor Dubai has been busy for more than thirty years into transforming its vast miles and miles of deserts into a wonderland gifting itself and to the world as a prime tourist destination and a world class business center. All these years RAS was happy and contended with its traditional economy while thriving on the sweet fruits of its rapidly growing industrial sector. This northern emirate endowed with the bounties of natural beauty with the mystical Hajar Mountains in the east, the deep splashing Arabian Gulf to the west and the gorgeous Musandam peninsula to the north besides unparallel topography distinctive of the region and mesmerizing enthralling sights soothing to the eyes. The emirate is all geared up to give its already flourishing neighbors thriving on artificial resources a run for their money yet ensuring that it does not give an impression as their mirror image. RAS plans to give its tourism industry a color which is a gentle mix of tradition imbued with a hue of modernity. It seeks to let its visitors get a feel of its rich past while being comfortable with the amenities contemporary life has to offer.
The government of RAS in its endeavor to make the emirate the next important tourist destination is doing so with its well charted out GRAND PLANS ambitiously titled Ras Al Khaimah- Top of the Emirates in joint collaboration with RAK Properties the leading real estate property developers functioning under the aegis of its Managing Director and CEO Mohammed Sultan Al Qadi. The step intends to serve twin purpose of not only bring RAS onto the world map but also facilitate generation of much needed revenue to further the standard of living of its people by bringing in superior projects.
In consonance with this strategy, the government has devised a tourism master plan with tentative investments of around Dh 5 billion which would see the erecting of luxury 4 star as well as 5 star hotels, luxurious residential complexes, an offshore island, mountain areas and redevelopment of the creek area.
The plan also includes the development of Jebel Jais Mountain Resort –a stunning mountain complex which would house a five star hotel, luxurious residential units, a snow slope and a climbing and abseiling centre. The tourism master plan is also covering the restoration and maintenance of the RAS heritage sites and its mountain belts besides the construction of luxurious sea facing four and five star hotels. The emirate is also promoting its Awafi Festival presently popular in the UAE and the Gulf into an international event attracting tourists from all over the globe. The festival organizer claims that more than 150,000 visitors have attended the festival and they plan to bring the European markets into their fold by devising special programmes for them and organizing excursions for them with the assistance of tourist agencies in Dubai.
The last three years has see 68% increase in the occupancy of visitors in six hotels and figure is expected to rise exponentially by 2010.
The RAS Crown Prince and Deputy Ruler Sheikh Saud bin Saqr Al Qasimi’s has recent announced allowing of the foreigners to own residential development property on a free hold basis in the emirate will be a haven for expatriates in Dubai. The completion of the Emirates Road will further reduce the travel time between Dubai and RAS. Many of the people working in Dubai would want to own properties and bask in the in the development benefits of new RAS while escaping from the frustrating traffic congestion of Dubai.
RAK Properties is behind the completion of many of the projects in the emirate including the Mina Al Arab, a complex housing 14 hotels, 25,000 accommodation units, shops, a theme park, Julfar Towers, two 43-storey high skyscrapers for office space and accommodation by the creek and is scheduled to be ready by the end of next year. The design of Mangrove Islands, a low rise residential and commercial building is in pipeline.
In their prestigious list of real estate development projects, a community area complete with golf club, 2000 luxury villas, schools and a shopping mall on the Emirates Road is due completion by 2009. All the developments will be on free hold basis and attract foreigners and expatriates from all over the world into Ras Al Khaimah all set to hit the new horizons in light of its new GRAND PLANS.

Tiding Taxi services from RAK to Dubai

The period from 2007 onwards shall see the reorganization of the main taxi stands of Ras Al Khaimah and provide exclusive taxi services to the desired destinations. There shall be two separate taxi lines in the main taxi stands of Ras Al Khaimah, one line that shall serve exclusively for passengers traveling to Dubai via the RAK Emirates Road and the other line for passengers heading to Sharjah, Ajman and Umm Al Quwain via the old Al Jazera Al Hamra highway.
The current arrangement endorses loading of all the passengers in a single taxi enroute to Dubai. It then travels through Sharjah, Ajman and Umm Al Quwain on Emirates Road often getting struck up in its traffic spending more than four hours to reach the Diera taxi stand. This arrangement is not allowed as per the Traffic Department’s regulations of RAK which allows the Emirates Road exclusively for traveling to Dubai. For traveling to other destination, the drivers are stipulated to take up the old Al Jazera Al Hamra highway.
The old arrangement was convenient for the drivers because their turns come up faster. But this aspect is taken care of in the new arrangement the registered drivers will have two turns one per line consecutively.
The step is of paramount significance as it will discourage the unregistered drivers and prevent wastage of time. The passengers at different destinations will travel on different lines and reach the desired stops in shorter span of time.

Al Aqariya Media Group are the brand promoters of AED 7 billion Emirates Flag project in Ras Al Khaimah

October 30, 2006, Monday:
Al Aquariya Media Group from Dubai Media City will now promote the AED 7 billion emirates flag development in Ras Al Khaimah. Al Aquariya is a dominant media conglomerate from Dubai media city.
The AED 7 billion project design is analogous to the UAE flag. This concept is worked upon by High Rise Real Estate along with Ras Al Khaimah Free Zone Authority (RAKFTZ), Dream Industrial Park FZCO, and A & A Industrial Group.
The Emirates Flag development project covers seven blocks, each based on a theme of Emirates. Every Block is proposed to have one residential tower along with hotel and office towers, idealized with local art, food and décor of Emirates. Emirates Flag project is second in a row for Al Aquariya, following a recent agreement with Ta’sees an investment and development company in UAE for the promotion of airport tower project in Ras Al Khaimah. Eng. Mohammad Saleh the president of Al Aquariya Group recently quoted “as we continue our strategy to involve ourselves with prestegious projects in UAE, we are glad to extend our supports to the Emirates Flag Development, which is said to be a revelation as far as design and architecture are concerned”. Further he added “the property and real estate sector growth in Ras Al Khaimah has been remarkable in the recent months, and a project of the statire of the emirates flag will add significant value to the overall advancement of the emirates. We are committed to promote this unique project locally and regionally, and we look forward to offering all media and promotional support to ensure adequate investor interest”.
Almost 20 percent of the Emirates Project is said to be developed and built in the sea region forming a bridge between the land and sea. This helps to constitute a picturesque view to offices, homes and hotel rooms from the RAK coastline. This project is also said to provide a man made marina to moor the yatches and boats.
Every residential tower in this project is designed in a way as to give it a sea facing. In total there are 160 one-bedroom flats of 800 sq. feet each, 120 studio flats of 450 sq. feets and 120 two-bedroom flats of 1,200 sq. feet each.
There would be a 5 star hotel in the middle building of every block comprising of 350 rooms and equipped with retail outlets banquet halls and health clubs. Every hotel is designed to represent the history and spirit of emirates.
A third part of the entire development is covered by commercial office buildings. Each tower is built up in a total area of 300,000 sq.feet and has 25 floors with full business centres and retail shops.
Led by a team of experienced and qualified professionals, the Al Aquariya is the first media group in the region to offer a complete range of dedicated property media services. Media interests of the company includes Aquariya news, which is an english news channel; RENA, a first of its kind real estate news agency; and two magazines by the name Al Aquariya world and Billlion plus.

Brand opportunity for students to join RAK medical college:

Ras Al Khaimah, 10th February 2006: The admission for the first batch of students has kicked off in RAK Medical and Health Sciences University. Yesterday the crown prince and deputy ruler of Ral Al Khaimah also the chancellor of university, Shaikh saud Bin Saqr Al Qasimi, inaugurated the bachelor of medicine/surgery program here. This development counts as another milestone in the showcase of Emirates, which is fast emerging as a premier educational hub in the sub-continent.
Quoting to the press Shaikh Saud said, “I am confident that this will raise the quality of education in the region”.
The university vice-chancellor Dr. S Gurumadhva Rao professed that the institute would be shifted to a permanent campus location near Saqr Hospital in another two years.
The health minister Humaid Mohammad Obaid Al Qutami and RAK medical zone head Dr. Yasser Eisa Al Nuaimi were among other notified dignitaries attending the ceremony.

Meed presents growing opportunity in RAK

Associating with the Government of Ras Al Khaimah’s investment and development office, Meed has organized more than 30 international business leaders and investors to examine the emerging opportunities in Emirates.
Precisely, this event will concentrate on leading opportunities in real estate, energy, tourism and manufacturing sectors. The Ral Al Khaimah conference 2007 is scheduled for 12th and 13th February at Hilton Ras Al Khaimah.
The foremost stake holders in Emirate’s development will examine various geographical, logistical and economic advantages of investment in Emirates over throughout this conference. Prominent names attending this conference are Abraaj Capital, CB Richards Ellis, Global Investment house, Mashreqbank, RAK properties, Rotana Hotels Corporation and Saraya Islands. Sheikh Saud bin Saqr Al Qasimi the crown prince and deputy ruler of Ras Al Khaimah would address the dignitaries present in this function.
RAK has become a leading centre for business and investment in the Gulf. It is Located barely 1 hour by road from Dubai with a huge range of commercial activities for both GCC and international investors.
According to a statement by Meed, Ras Al Khaimah is an emerging market in this region. Meed committing to this project is due to significant recognition of growing interest in this market form key investors, particularly the ones in GCC (co-operation council for Arab states in Gulf).

New inter- Emirates bus service launched from Sharjah

Sharjah, 29th December 2006: The Sharjah transport officials launched a new inter-emirate bus service yesterday. This service is emirate’s effort, aimed to make public transport more consumer-friendly in this region.
This service would be used by commuters to go from Sharjah fish market bus stop to Umm Al Quwain, Ras Al Khaimah and Hamriya free zone. The inter-emirates services are presently available for Abu Dhabi and Al Ain.
A new route would now be used by Sharjah transport to operate eight buses from 7am-9pm. There would be a one hour interval between each bus. The ticket rates for Sharjah to Hamriyah are Dh7, to Umm Al Quwain Dh10 and Dh15 for Ras Al Khaimah. According to the officials these prices are cheaper compared to those of private taxis. Abdullah Al Zarri, Director General of Sharjah Transport said exclaimed that taxis to RAs Al Khaimah cost nearly Dh20 to passengers making buses a cheaper option.
The new route would also be accessed by commuters from Hamriya to Sharjah, but this return route is not for passengers from Umm Al Quwain and Ras Al Khaimah till now. The finalization of public bus transport service would be done by mid-December, with fares expected to be around Dh2.50.
The new bus strategy is aimed to provide maximum benefit to commuters along with facilities such as bus shelters, air conditioning, regular timings and a route map at the stop.

Work begins at Zamil Steel plant in Ras Al Khaimah

24 December, 2006: The new factory of Zamil steel in Ras Al Khaimah started production operations on a small scale along-side its development activities. This new facility is an important milestone for ZS in a bid to exploit the huge potential of UAE market furthering its global expansion initiative. The investment in this project is said to be about $46.7 million.
Adnan Al- Mansour, president of Zamil Steel explained that ZS national sales have risen sharply by 40 percent. The PEB or pre-engineered steel building sales have recorded the highest margins ever allowing ZS to maintain a market grip over PEB in GCC (co-operation council for Arab states in Gulf) countries. Adnan also added that these factors have further encouraged them to continue with their global expansion strategy.
Ibrahim Al Solaia, vice president project of Zamil Steel said that construction for the new plant began in early January at Ras Al Khaimah. The first phase is in its final stage, and small scale manufacturing has begun, however it would be fully operational by the end of first quarter of 2007. The production capacity of this plant is 40,000 metric tones per annum for PEB, open web steel joists and floor decking. The Second phase would commence towards end 2007 adding additional 12,000 metric tones per year.
The new facility would be stocked with the most upgraded and advanced technology. The customer requirements would be met in a comprehensive manner through technical and administrative departments. This plant would be integrated to Zamil industry Investment Company’s IT network giving a quality edge to company’s steel products.
Zamil Steel RAK, would serve the UAE markets as well as the neighboring Gulf countries. Adnan Al mansour asserted that this project would be important to their international network giving customers the best quality and dependability expected from ZS.

New RAK developer to build twelve new projects:

The crown prince and deputy ruler of Dubai Shaikh Saud bin Saqr Al Qasimi launched Rakeen RAK’s newest property developer earlier this week. Rakeen is a private joint stock company having an asset worth of Dh4 billion and Dh400 million worth paid up capital. Rakeen would help manage and develop key projects throughout Ras Al Khaimah and overseas. In an interview Sheikh Saud contemplated the launch of Rakeen to be a wonderful chance to build a vibrant future for Dubai and RAK in particular. He also said that Rakeen would provide a new front to visitors and tourists in RAK providing an ideal environment for both investors and residents to enjoy business and life here.
Twelve mega projects would be developed by Rakeen involving mixed use property development in RAK as well as international markets. This would cover more that 200 million square feet with a net worth of Dh20 billion. The projects to be developed include RAK offshore, Al Marjan Islands, The Gateway, Banyan Tree resort, Al Hamra Amenity centre and Jabal Al Jais. The overseas projects of Rakeen include those in Italy, Iran, India, Azerbaijan, Georgia and Ukraine.

Real estate firms of UAE sign a MoU at cityscape Dubai 2006

A subsidiary group of Al Qudra holding in UAE, the Al Quadra real estate (AQRE) has signed a MoU agreement at Dubai’s cityscape along with RAK properties which are the largest real estate developers in RAK. Both groups would contribute in developing the real estate sector of Emirates. This agreement was signed between Eng. Salah Salem bin Omair Al Qudra holding and Mohammed Sultan Al Qadi the managing director of RAK properties.
Eng. Al Shamsi said that he was overwhelmed with the deal with RAK properties. He also said that now AQRE has the expertise, support and all the resources it needed to work these projects to success in Emirates. Eng. Al Shamsi expressed his desire to be successful in his endeavor to serve the country and deliberated his confidence to generate massive profits in the real estate sector with this association.
This strategic partnership of two of Emirates real estate giants would help AQRE to develop residential and commercial properties in Ras Al Khaimah. AQRE would also support the RAK properties in a joint development of recently launched realty projects in UAE. These projects are ‘Mina Al Arab’ and ‘Julfar Towers’ in RAK.

The government of Ras Al Khaimah, Saraya Holdings and Arab bank reveals details of “Saraya Islands” project

The seven kilometer Julfar Island located in between Hajjar Mountains and Azure sea of Arabian Gulf would be the construction grounds for Saraya Islands. These will cover an area of approximately one million square kilometers, and would represent the seafaring heritage of Ras Al Khaimah using present day technology.
The key shareholder of Saraya Island project is the investment & development office which is now involved in the promotion of Ras Al Khaimah. This promotion is aimed towards attraction and development of new ventures in Emirates.
As a key investor in Ras Al Khaimah, Saraya Holdings is focused towards the development of many distinguished destinations throughout middle-east and North Africa. Based on a 21st century modern theme, the Saraya projects are built highest on standards pertaining to the needs of residents, tourists as well as businessmen, promoting sustained development and profitability.
As a direct shareholder in this real estate project, the Arab Bank provides strong financial pillars and impeccable management to this project based on its global experience and expertise. All three shareholders expressed optimism and confidence towards a successful completion of this project.
The CEO of IDO, Dr. Izzat Dajani expressed his delight to serve under the leadership of Sheikh Saqr bin Mohammed Al Qasimi, the ruler of RAK and Sheikh Saud bin Saqr Al Qasimi the deputy ruler and crown prince of RAK also the chairman of IDO. He said that RAK was on its way to become a promising destination for both residents and tourists.
Dr. Dajani exclaimed that the prime objective of Ras Al Khaimah government is to capitalize on huge potential of Emirates thereby building a diverse economy. He also established that Saraya project is a step forward towards realization of that objective and will help bringing tourism, modern lifestyles and residential products to this exceptionally beautiful land mass.
The vice chairman and CEO of Saraya as well as a senior advisor to Sheikh Saad El-Din Al Hariri the chairman of Saraya, Ali Kolaghassi said that Saraya Islands would become a world class destination uniquely located in Ras Al Khaimah and overlooking a spectacular view of mountains meeting the sea. I added that it would provide a hide for people of different age groups and interests for leisure, entertainment and business.
The regional head of private banking at Arab bank Samer Saifi expressed his confidence in the project. He affirmed of playing a pivotal role with banking related activities like corporate finance or even other financial services to the residential buyers wanting to associate with this project.
Saudi Oger is the main contractor for Saraya Islands project and is known globally for his expertise in construction. He has proven his expertise throughout the Middle-East, Africa and Europe giving finest quality construction in these regions.
Ras Al Khaimah region has a heritage of naval exploration and innovative marine technology. It is also the birthplace of Ahmed Ibn Majid a famed explorer also known as the ‘Lion of the Sea’. Ibn Majid was also amongst the first to use a compass for navigation having developed one of his own named ‘Kamal’.
The Saraya Islands benefits from its strategic location between mountains and sea along with nearness to Ras Al Khaimah international airport and the great city of Dubai. A highway extension is planned to connect Ras Al Khaimah airport and Dubai to these Islands.
The Saraya project would include great designer villas, palatial waterfront estates, and private piers in townhouses with a lagoon view, terraced apartments with a waterfront, themed hotels, bungalows, spa, and rental villas. The project would also include retail shops, restaurants, entertainment outlets, Arabian sailing boats, amusement/ Water Park, sports center, planetarium, cultural center, bicycle and waterfront walking trails, fishing, sailing, training institutes, car parks, tidal exploratory walkways bird sanctuaries and a sandy beach of six kilometers.
According to the master plan four distinct islands would be developed namely, Al Boum, Al-Marsa, Al-Sahab and Al-Wahat along with mainland Saraya Village center. These four islands would be connected via island roads and bridges and the mainland island is connected by Boulevard which is a 2.5 km tree-lined driveway. The avenue connecting To Emirates highway would terminate at Saraya village.
The Saraya village would serve project’s central and transitional hub. This village would as taxi and bus points along with hotels resorts and parking facilities. This village will also offer themed ‘Souqs’ that would sell goods once traded by Ras Al Khaimah’s sailors. These include dates, incense, pearls, spices, silk, wood, cotton even handicrafts.
Saraya islands are prepared to become a tourist hub together with shopping and entertainment activities and a magnificent scenic backdrop including beaches, mountains and its eco-sensitive architecture.

The first phase of $250 million Saqr port expansion opened by KGL

Ras Al Khaimah 19th January, 2007: A container terminal at Ras Al Khaimah’s Saqr Port was opened yesterday by the Kuwait-based KGL ports international. Secured on Build, own and operate principal by KGL ports international, this port was given a soft opening before its official inauguration in March. The first phase has covered $70 million from the total investment worth of $250 million. The capacity of this port would be increased to three million twenty foot equivalent units (TEU) within five years from 350,000.
The chairman and CEO of KGL international ports Mohammed Al Mazeedi considered it to be a milestone for the company reflecting its growing role in ports management. He also said that the company has proved its capability to accomplish business objectives in accordance with its long term objectives.
Al Mazeedi was keen to notify that his company’s technical advisors were finalizing a report for the port’s expansion, which would be offered for final approval to the Crown prince and deputy ruler Shaikh Saud Bin Saqr Al Qasimi. For import and export operations, the company as already finalized local shipping agents to use facilities at Saqr port. Mazeedi also added that for official inauguration, local companies are expected to ship around 150,000 containers at the Saqr port. The company is also negotiating with major cargo companies around the world which expressed their willingness to make use of services here. However, they wanted to monitor the services of this port for a test round.
According to information, a basin and four platforms of the port have been scooped to depths of 12 meters, increasing its capacity to handle 350,000 containers currently. Mazeedi explained that in the next few months a 16 meter draft would be required for the new basin.
A 21 year concession agreement was signed between KGL ports international and Ras Al Khaimah government allowing KGL to design, build, equip and operate this port.

Profits reach a record level of 258.81 Million for RAKBANK

RAKBANK or the national bank of Ras Al Khaimah recorded a net growth of 40 percent with profits climbing to AED 258.81 million for 2006 from AED 185.26 million for 2005.
A 30 percent dividend and cash payout of 15 percent and 15 percent issue for bonus shares was recommended by the board of director. Earnings per share registered a growth of 37 percent reaching AED 0.48 from AED 0.35 for 2005.
Profitability ratios are moving swiftly on an upward trend with 23 percent average return on equity and 3.2 percent average return on assets. The non-interest income has risen by a whooping 59 percent, closing at AED 276 million in 2006 compared to AED 174 million in 2005. An improvement in overall operational efficiency has reduced the cost to income ratio to 48 percent in 2006 from 52 percent recorded in 2005.
A consistent growth pattern was observed in 2006 with net income growing by 23 percent to reach 380 million from AED 310 million in 2005. This growth was observed in every product including cards, mortgages, commercial and retail loans as well as corporate and SME banking. The total assets however, grew by 21 percent at AED 8.84 billion, with bank loan and advances growing up by 26 percent at AED 6.8 billion.
Asset growth was funded by a combination of customer deposits and increased mid-term borrowing and equity. Customer deposits on the other hand grew by 20 percent at AED 5.9 billion, whereas mid-term borrowing increased to AED 550 million as a part of the 2005 established MTN program.
RAKBANK emerged as one of the best retail bank for high service standards and customer focused assets and liability products, producing high-end results in 2006. There are 17 branches for this bank along 3 new kiosks opened in 2006 making a total of 8 kiosks by year end.

Huge profits in record time for RAK properties:

RAK properties, a leading property company of Ras Al Khaimah has received huge profits in last financial year ended December 31st, 2006. Seeing this, the board of directors from RAK properties has recommended a 7.5 percent dividend to shareholders. This decision was unanimously affirmed by the Board as this real estate giant amassed Dh473.897 million in profits for its very first financial year end.
Mohammed Sultan Al Qadi, managing director of RAK properties expressed his confidence in the company speaking of the record growth in profits in 19months. He confided on his capability to deliver on promises and achieve goals laid down by the crown prince and deputy ruler of Ras Al Khaimah his highness Sheikh Saud Bin Saqr Al Qasimi. He also added that in short time his company has positioned itself as a perfect destination for investors of the real estate community.
Julfar Towers, a twin 43-storey office and residential project was launched by the company in February 2006 at a cost of AED500 million. This project was followed by Mina Al Arab in May 2006 having a spread of 35million sq. feet area and a cost of AED10 billion.
As a part of its business strategy, RAK properties have signed partnership agreements with various financial institutions and property developers. Further, RAK properties plan to march to international arena in 2007 to establish its roots in the real estate market there.

Ras Al Khaimah: the new free trade zone for real estate

Ras Al Khaimah is fast emerging as a real estate free trade zone in the Emirate region. On May 26th, 2007, the RAK celebrated its 7th anniversary as a free trade zone in the Middle East more so for the real estate sector. This region saw a boom on the real estate production front where a total of 3,186 international companies invested in a grand sum of around $ 1.1 billion as capital investment, with a major chunk of that investment going to the real estate market.
Many of the leading dignitaries from real estate companies in the free trade zone along with officials from the government bodies, attended this occasion, involving large scale media presence. So much so that his highness sheikh Faisal Bin Saqr Al Qassimi who is also the chairman of the Ras Al Khaimah FTZ remarked that it was indeed a fruitful year for real estate industry and business in Ras Al Khaimah. He also stated that the Emirates with rich scenic beauty and rich culture has established itself as a centre for high producing economic activity and a prominent real estate investment destination. He said that Ras Al Khaimah is willing to impost the real estate market as a convention for the key real estate investors. A major accomplishment of the Ras Al Khaimah free trade zone is that last year it launched an offshore real estate program which is designated as “International Registry”. This real estate program allows a real estate investor of foreign origin to register the offshore real estate company in the real estate free trade zone of Ras Al khaimah. This scheme is the first of its kind to be introduced in the real estate sector of Ras al khaimah, UAE. It would help the real estate companies to reap the benefits from Ras Al Khaimah’s tax free environment without even establishing their presence physically in emirates real estate market.
The free trade zone of Ras Al Khaimah won the prestigious “young achiever award” and “the best emerging free trade zone”, last year during the Middle East logistics awards of 2006. The awards were collected by his highness Sheikh Faisal Al Qassimi. Going parallel to its expansion the RAK FTZ which is also an ISO 9001:2000 certified company, is considering Emiratization where it is targeting 50 percent of its work force in real estate industry with UAE nationals only. By end 2007, the RAK free trade zone is considering a two-fold increase in its work force.

Ras Al Khaimah Property Gains Popularity

A rising number of property investors in the UAE are spending money on property options in Ras Al Khaimah. So much so that Ras Al Khaimah property is selling like hot cakes today!
Advantages of buying property in Ras Al Khaimah:

• Property prices are quite reasonable in Ras Al Khaimah.
• The property available in this emirate bears a freehold ownership.
• There are a number of property options available for investors, both in terms of budget as well as property types.
• Ras Al Khaimah property is complemented with world-class leisure amenities.
• Sprawling lush green landscapes make this place a foil to the hectic lifestyle of Dubai. Property in Ras Al Khaimah is ideal for those desirous of living in a peaceful and stress-free atmosphere.
• Ras Al Khaimah property has dual benefits for the buyer. One acquires beautiful holiday homes in addition to having made a lucrative property investment.
• As the emirate is still under initial stages of economic growth, property investors are seizing the golden opportunity with high hopes of making huge profits from Ras Al Khaimah property sector in future.
• Many Ras Al Khaimah property projects have hotel apartments on offer. These have a positive impact on the tourism industry and provide good investment option in the form of short-term rentals.
• Ras Al Khaimah is undergoing rapid commercial development.
Ras Al Khaimah Property News Snippets:
• Rakeen, a major property developer in Ras Al Khaimah, is expanding its business to other parts of the Middle East as well as to Europe, Africa and India.
• RAK Properties and Darwish Engineering Emirates have entered into a 340 million AED deal for Mina Al Arab property project.
• Hilton Hotels Corporation – a leading hotel chain in the US – has entered into a management agreement with RAK Properties for a resort in Ras Al Khaimah.
Economic Matrix:
The economy of Ras Al Khaimah is predominantly fed by property investment sector and tourism industry. The economic matrix in Ras Al Khaimah is witnessing rapid industrial and commercial development. Last year, there has been 100 billion AED worth of investments in Ras Al Khaimah through tourism and property sectors.
Most popular property options:
• The Cove
• Al Hamra Village
• La Hoya Bay
• Mina Al Arab
• Julfar Towers
Location:
Ras Al Khaimah is the northernmost emirate in the UAE.
Connectivity:
• From Dubai Airport, one can reach Ras Al Khaimah by a 40 minutes drive.
• Ras Al Khaimah International Airport provides passenger and cargo services to various destinations in the Middle East, Africa and Asia.
• Saqr Port in Ras Al Khaimah is the main seaport providing container and bulk services.
• Ras Al Khaimah is connected with other emirates by taxis and rented cars.
• The main means of transport within Ras Al Khaimah is metered taxis.
• Buses ply on long routes connecting faraway towns of this emirate.