Dubai Population’s Real Estate Sentiments Show by GRMC Survey

A consumer confidence survey was done on the Dubai residential real estate market by a leading research and business advisory in the GCC, GRMC Advisory Services. They have released the findings from their December 2009 survey. A report is generated, Dubai-Surplus Luxury which draws findings from their December survey of around 1100 individuals in Dubai. It determines the financial circumstances and whether they have left their homes at the time when financial crisis began.

This survey was also done in order to determine that how optimistic the respondents are regarding the economic prospects in Dubai and whether they are planning to invest in some new property in the year 2010. The results revealed that around 68 percent of Dubai’s population households have been unconstructively impacted by the financial crisis which took place.

A minority set has suffered a reduction in their income, 58 percent reported have said that their income remains the same; however, a mere 7 percent cited that it has augmented. The GRMC survey also enquired that how optimistic they regarding their financial circumstances and the results revealed are that majority of them are confident. This optimism has greatly shown the future of Dubai real estate industry. Among the survey conducted a 12 percent of people seems to be interested in purchasing or renting a new property in the year 2010, 83 percent of residents said that they would rather rent a property than purchasing a new one.

Dubai Bank Announces the Opening of Two New Branches

Dubai Bank has recently raised its branch network across the country by announced the opening of two new branches in Dubai. These two new branches are getting opened in order to meet the growing demand for banking operations. According to a statement the lender now has a total of 23 branches in the UAE, out of which 12 branches are in Dubai itself. Mohamed Amiri, the head of retain banking at Dubai Bank said, “The launch of our new branches is testimony to the rapid growth of our customer base and their increasing demand for our services.” He further added, “Our new premises are in prime business locations and will allow our customers in the Sheikh Zayed Road/DIFC vicinity to conduct their banking needs with greater convenience.”

These new locations at the Sheikh Zayed Road and Dubai World Trade Centre have further expanded the branch coverage of the bank. One of the two new branches is located next to the Shangri-La Hotel on Sheikh Zayed Road and the second new branch is ideally positioned at Dubai Convention Centre which is an ideal banking destination for both retail banking and business banking customers. The branch on the Sheikh Zayed Road incorporates a dedicated Royal Banking Section.

Recently Dubai Bank has been named as “Best Islamic Bank” by Ethos Consultancy. Both the newly opened branches offer a wide range of corporate, business and personal banking facilities or services. Cash deposit machines and 24 hour ATM’s are also available. The Head of Branches of Dubai Bank, Tariq Al Farsi said, “Our new branches are in line with the bank’s vision to increase our presence in the UAE and to be closer to our customers. Last year, we opened two branches and we are happy to continue the trend this year, while maintaining our focus on serving our customers' needs.” He further added that a total of 20 employees will serve the customers from two new locations of the bank.

Dubai Property Prices Could Fall: Banks Become Aggressive In Pursuing Repossessions

From the current levels, the property prices in Dubai could fall by another 30 percent. According to the analysts by the end of the 2011, somewhere around 150,000 homes could be lying empty. The UBS has forecasted that there will be a blow to the emirate’s property market with the prices down by up to 50 percent. It is also reported that Palm Jumeirah which is one of the most iconic developments in Dubai has seen its first repossession.

An analyst Saud Masud said, “We reiterate our view that by end of 2011 Dubai property oversupply on residential and commercial properties may reach roughly 40 to 50% and house prices may decline another 30% from current levels.” He further added, “We estimate total Dubai housing supply by the end of 2011 to be roughly 360,000 with oversupply potentially at 150,000 residential units.” Property investors in the UAE may find it cheaper in the auction market up to 40 percent as higher default risks ignite to more bank repossessions.

The bank sold the apartments in the exclusive man made island Palm Jumeirah for AED745 per sq ft which became a symbol in Dubai real estate market. Last week the owner’s bank took over the three bedroom apartment in Al Shala on the prestigious development. It was taken back after he failed to resolve the Dhs1.7 million of outstanding debt. Quickly the bank moved to shift the property. A number of repossession orders on properties in Dubai have been won by the UK based Barclays and now the banks won’t hesitate in order to follow the suit.

According to a banking analyst at an investor service, Antoine Yacoub banks will now become aggressive in practicing a legal action. They were trying to restructure most of their loans, however, once a precedent has been set, more cases will be encouraged to put through.

Hybrid Cars to Join UAE Ministry’s Fleet

This year a new addition is commenced as a group of environment friendly hybrid cars will soon be launched in the vehicle fleet of the Ministry of Presidential Affairs in the UAE. It has been announced by the Ministry that these hybrid cars will be introduced which is a part of the commitment in order to introduce the best practices on protection and sustainable conservation of the environment. The delivery of a number of these cars will be taken by the protocol department.

These hybrid cars will be used in transportation of high profile state visitors and VIP’s. This move is in accordance with the H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs which in turn is to create a clean and safe environment, in order to match up with the standing of and the reputation of the United Arab Emirates globally. There is another initiative by the Abu Dhabi Crown Prince’s Court and the move is also synchronized with that.

The policy of introducing hybrid cars aims to save properties and lives and the basic aim is to preserve the environment and natural resources. The occupational health and safety standards (OHS) will also be improved and modern technology is applied to lessen the noise pollution created by various modes of transport.

A positive message is transferred by this move to both public and private sectors and to foreign visitors about the sincere efforts by UAE in order to protect and conserve the environment and natural resources and to adopt the sustainable development principles.

Sponsorship of Dubai Shopping Festival 2010 Announced by Al Rostamani Group

The Al Rostamani Group is one of the most prominent and leading business entities in the Middle East region which has once again set the sponsorship of the shopping festival in Dubai this year in 2010. The shopping festival this year will celebrate its fifth edition. Since 1997, this group has been a key sponsor and it is one of the oldest business units in the United Arab Emirates. The group was founded by in 1957 by the Chairman Abdulla Hassan Al Rostamani and has steadily grown over last 50 years.

The group has diversified their portfolio in terms of business including heavy equipment, trading, foreign exchange, travel, infrastructure development, IT services, telecommunications and a lot more. The Chairman of the Al Rostamani Group Mr. Marwan Abdulla Al Rostamani said, “Dubai Shopping Festival, launched in 1996 through the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, was an exceptional initiative to enhance the economy in general and the retail and tourism sectors in particular. Over the years, this initiative has marked many milestones to become one of the recognized festivals in the world.”  

The Rostamani Group has become successful due to their joint ventures, capability to build longstanding alliances and with license agreements with worldwide organizations including Renault, Tata, Blue, Avaya, Suzuki to name a few. These relationships have been carefully carried out since then keeping in mind their relationships with the people in the UAE. The Chairman of the group further said, “Al Rostamani Group’s sponsorship of DSF is part of our continued commitment towards this unique event, supporting the government’s initiative in positioning Dubai as a leading city in the world today.”

With an employee base of about 4000 the group fosters and the diversity is strengthened and spread across the globe.

World’s First Armani Hotel to Open in March, 2010 in Dubai

This would be the first hotel in Dubai to open under the collaboration between Emaar Properties PJSC and Giorgio Armani S.p.A. The hotel will exclusively be housed in the unique Burj Dubai tower which itself is the world’s tallest building and it will be launched officially on March 18, 2010. The launch of this Armani hotel has been recently announced. This Armani hotel in Dubai will be the first in the series of resorts, hotels and residences which are designed by Giorgio Armani.

These hotels and residence places will be opened around the globe thus, marking the debut of the fashion maestro Giorgio Armani in the hospitality industry. These hotels will deliver highest standards of luxury and excellence and his Dubai hotel will be the most exclusive destination within the city. The opening of this hotel in Dubai will be followed by the launch of the Armani Hotel Milano. Other than the hotel, various other projects are there which are underway. It includes first ever Armani Residences villas, planned for Marassi in Egypt and secondly first Armani Resort, planned for Marrakeck.

Apart from these, gradually the Armani residences, hotels and resorts will subsequently open in almost all important international destinations including Shanghai, New York, London and Tokyo. The Armani Hotels & Resorts was established in the year 2005 with an objective to construct and operate an exclusive chain of resorts, residences and hotels across the globe especially in the world’s most important holiday destinations and cities. Within the next ten years, the Armani Hotels & Resorts are planning to open at least ten resorts and hotels, thus delivering world class and high quality services and hospitality. Moreover, online bookings for the Armani Hotel Dubai will go live late January 2010 and the prospective visitors can register online.

Leasing of Single Business Tower in Dubai Announced by DIP

One of the leading developers in the UAE, DIP- The Dubai Investment Properties, has announced the beginning of the leasing process of their latest commercial development called Single Business Tower.

The company is to lease 248 office units and 7 retail units at their new tower on Sheikh Zayed Road.

According to Anj Viadi, the Property Manager of Single Business Tower, the tower has been completed much ahead of the scheduled date. The tower has been given its central location, elegant façade and the modernized interior serving as an ideal business location for various companies seeking brand recognition.

He added, “The building incorporates energy efficient and self-sustaining features, with 248 modern offices and retail spaces spread across its 45 storeys. The green building guidelines have been followed to ensure energy efficiency, the big French windows help in capitalizing natural lights, while glass panels help divert heat and minimizes A/C consumption. The Single Business Tower also has advanced security and fire protection systems that ensure security of tenants at all times.”

Apart from all this, the offices within the business tower are designed in a way that they ensure maximum space efficiency and functionality. There are a several amenities and service outlets have been added to compliment a functional business environment.

This will make the Single Business Tower an attractive option for the business seeking to establish their main branch offices offering round the clock management services, ample parking space propinquity to the Business Bay metro station and the awesome views of Arabian Sea and Burj Dubai.

Along with the first class office retail spaces, the tower also offers reception and concierge services to tenants, a conference room which is fully furnished, business lounge, separate gymnasium for men and women both, a multi-level car park for tenants, business services and other management facilities.

Burj Dubai: World’s Tallest Tower’s Height is Still a Secret

Burj Dubai, the pride of Dubai’s growing role in this changing world is due to open on 4^th Jan’10. This masterpiece is the flagship development in Downtown Burj Dubai property within Dubai. The exact height of this stunning piece of architecture is known only to few. The tower’s structural engineer, William Baker of Skidmore, Owings and Merrill LLP, said in an interview: “Its still a secret. The client (Emaar Properties) will only let us say it's more than 800 metres (2,625 feet) tall. It's part of the mystique of the project.”

According to Baker, if the tower’s height is measured by measuring its shadow then it would leave the current record holder building, Taipei 101, to the second position. Amongst 10 tallest towers, 7 are in Asia and have been built in the last 13 years.

However, Jan Klerks belonging to Council of Tall Buildings have expressed their interest in knowing the exact height of the tower. One of Klerks’ email said : “We have expressed this a number of times, but if there are reasons not to disclose it, then I guess we have to do without an official number. We also do not know why they chose not to disclose the number. The only thing we are sure of is that it is the tallest building in the world, and that it is at least 800 metres.”

As Baker has mentioned, the recent global financial slum has not hit the sales of the 1100, one to three bedroom residential apartments. The tower has some of the fastest elevators running up to the speed of 25 miles per hour. The steel and exterior glass of the building could be spread across 17 soccer fields, which would take 6 – 8 weeks to clean. In published reports, the tower’s cost has been at approximately $1.5 billion.

Development of Facilities by Landmark in UAE

A property and facilities management solutions in order to safeguard the investment of freehold buyers has been developed by Landmark Properties, one of the leading property brokerage firms and consultancy in the UAE.

The firm offers solutions to real estate clients all over the world and delivers authoritative, comprehensive as well as independent advice. The affiliates of Landmark include Landmark Advisory and Amlak Finance PJSC which are recognized as the top level real estate companies of the Gulf.

Landmark Properties has developed a property and facilities management solutions to safeguard investment of freehold buyers.

The Head of Property Management of Landmark Properties, Donna Newman said, “A robust property management strategy is key for both overseas and UAE-based property owners as we deliver a range of cost-saving options, from identifying snags in new properties being handed over, to managing the rental relations with tenants on their behalf.

"The potential cost savings for proprietors using Landmark's Property Management (LPM) services, and homeowners using facility management services, far outweigh the service repair costs, in addition to minimizing potential future problems that can occur in a freehold property." He said.

The cost of Landmark Properties' Property Management solutions begins at five per cent of a property's rental value, with the minimum set at Dh3, 000.

Newman also said, "A landlord requiring property management for their unit will find that the preventative costs of our packages may be minor to the actual cost of potential problems in this apartment."

He added, "For instance, the rectification of ceiling defects would cost approximately Dh2, 000 for owners to fix. Common bathroom snags, including leaking toilets and showers or shower heads snapping off are on average Dh400-600 per visit by plumbers to rectify. Looking at these snags, this is already a considerable cost without taking into consideration anything else that may happen throughout the year."

Global Crisis to Come to an End Due to US Recovery

According to the Foreign Minister, Sheikh Abdullah bin Zayed Al Nahyan, “The recovery in the economy of US which is the world’s largest economy, will bring the global financial crises to an end and is expected to help economies of the countries to leap back including UAE.”

He also added that the problems of the emirate of Dubai regarding debt have been taken care of depicting that the country is united not only politically but also economically and the leadership is committed to deal with all the negative impacts of the global crisis. This will help recover through the crisis in real estate of Dubai as well.

He told, “I believe the (global) crisis will be behind us once the United States recovers and we believe the United States is recovering, which will reflect on other countries.”

According to The Commerce Department report on retail sales, “It is a key to renewed economic growth, was much stronger than analyst expectations for a 0.6 percent rise. Investors also took heart from the University of Michigan consumer confidence index, which registered a rise in December that beat analyst expectations at 73.4.”

“The economic crisis in Dubai is over,” Sheikh Abdullah said, adding that the UAE government was “committed to dealing with the effects of the global crisis” for all member emirates. He said support from the federal government “is proof that the UAE is united politically and economically. It is also proof that UAE remains committed towards local government to deal with effects of the global economic crisis.”

The Government of Dubai last Monday announced that it would pay off $4.1 billion in debt repayments due on an Islamic bond of property developer Nakheel. It said that the Government of Abu Dhabi has agreed to provide $10 billion to support its plans to manage the debt of its flagship conglomerate Dubai World. Financial markets in the UAE and across the world cheered the move. Concerns over Dubai’s debt have since eased.

Highest Sales Transactions Reached in Meadows, Jumeirah Islands

According to sources, “Among villas of real estate in Dubai, Meadows, Jumeirah Islands, Arabian Ranches recorded the highest transactions, while from an apartment perspective, Dubai Marina, JBR, Downtown Burj Dubai and JLT have recorded the highest transaction."

The Head of Sales of Asteco Property Management, Mr, Vineet Kumar said, “The top three residential areas, which have witnessed the most transactional activity in the month of November for apartments sales, have been The Palm Jumeirah, Dubai Marina and Downtown Burj Dubai areas. "The locations which witnessed the most transactional activity in the month of November for villa sales are The Emirates Living Area, Arabian Ranches and The Green Community."

The Director-Residential Sales and Leasing, Liz O'Connor, said: "From a sales perspective, among the villas, Springs/Meadows, Jumeirah Village, Jumeirah Islands stood apart and in the apartment’s category, it were Downtown Burj Dubai, Jumeirah Beach Residence and Dubai Marina.

Kumar also said that the profile of the buyer has been observed to be the end user primarily. However, there were some buyers who have bought property in Dubai for rental purposes focusing on holding the property assets for 5-7 years. He said, “The buyers on these projects were mixture of individuals from the GCC countries, Russia, India, Pakistan and Western Europe”

He said, “the sales activity on these projects have tended to revolve around the owners and sellers of properties who have purchased them in the years prior 2008.Typically these properties can be sold in today's market with some expectation of premium.”

Alwadiya said that mixed nationalities of end-users and investors have invested into these areas. "In general, buyers are more demanding and careful nowadays compared to last year and the previous years and hence they do enough due diligence before purchasing any properties. We have not seen major prices changes since the last three month - prices have stabilized in certain areas and you can always find very well priced properties in all areas of Dubai," she said.

Long-Term Dubai Investors Still Gain From Property Investments in Dubai

According to the owner of a Dubai based brokerage firm, the investors who had purchased real estate in Dubai even less than two years ago, still stand to earn profit despite the current low prices.

“People who are suffering the most are those who purchased properties last year on mortgage, as the prices of properties then were very high and mortgage rates were also high. But, people who purchased before 2007 also have not lost. Even if they sell, they still get to make a profit,” said the CEO of Leo Sterling, Laura Martorano.

The recent Dubai World restructuring discussions have not really affected the property prices in Dubai, agreed Martorano and also added that due to the competition, the prices in the ready market are not prone to change.

She also added, “In a ready market, about 60 percent of purchases are cash purchases. Therefore, people may not necessarily be so desperate as opposed to 40 percent, who have bank loans and mortgages”

The transactions in the real estate in Dubai have gone down in November as per the official data. The toll of property sales had fallen by 11% from 208 in October to 186 in November and the value of the deals had fallen by 47% from that of Dhs1.84bn to Dhs.970mn in the same period.

The data by Dubai Land Department depicted that the sales of the villas have gone high by 24% from 88 to 109. However, there was a decline of 41% in value which went down from Dhs.290mn to Dhs.170mn in November.

The positive indicators were shown in the month of October with average monthly market index posting 11.25% rise whereas the trade increased by 10% in volume and 9% in value as per Dubai certificates of origin.

Despite the negative economic indicators, Martorano is confident that Dubai will continue to hold a bright future.

Dubai Pearl Expected to Conclude by 2013

Abdul Majeed Esmail Al Fahim, Chairman of Pearl Dubai, announced the completion of Dubai Pearl, which is to be the mixed-use luxury development by Pearl Dubai FZ LLC, by 2013. The project will prove to be another magnum opus in Dubai real estate.

Dubai Pearl was supposed to be completed in 2007 originally but had been delayed due to lack of funds. The project will be handed over in almost three phases. First handover will take place in 2011 with the whole development expected to be completed in 2013.

According to the Chairman, the project has adapted to the financial environment in order to reach the completion. With the purpose of adapting to the economic state of affairs, major areas are being prioritized for completion. The focus is observed through the steady development and delivery of the project, payment plans offered to the investors which are flexible enough and tailor-made, to have transparent relations with the partners and campaign to enhance awareness on all the components of the project is planned efficiently.

This $4 billion project is located at the Dubai Technology and Media Free Zone. It is a business huddle operated by Tecom Investments and is considered to be the home to global IT and other media companies. The aim of the development is to become a luxury free zone as well as a freehold development with an easy access to transport links.

The associated structures of this development by Pearl Dubai are its four distinctive towers which are linked together from the top. The skyscraper includes residences, hotels, entertainment facilities and other global names like Baccarat, MGM, Sky lofts and many more.

The partnerships of Pearl with these brands aim at the long-term returns for the stakeholders of the development.

There are approximately 1440 residential units and 618 apartments which make 40% of the project. The hospitality sector comprises of about 16% and commercial sector that of 33%. Rest of the space is occupied by retail and leisure.

Over 900 residents are expected to be accommodated by Dubai Pearl and about 12000 employees are expected to be employed by the commercial sector. Dubai Pearl is also aiming at receiving Golf LEED Certification.

Realty Disputes to Be Sorted By Professional Mediation

The Royal Institution of Chartered Surveyors has declared a new attributed Mediation Training Programme in Dubai in order to help meet the rising demand for mediators in real estate related disputes. The downturns in economy have led to increase in commercial disputes and consequently a surge in litigation and mediation further leading to increased levels of interest and use of arbitration in the UAE especially in the construction sector.

According to Andrew Goodman, Director, Rics Accredited Mediator Training, mediation is a voluntary, non-binding, and private dispute resolution process in which a trained neutral person - the mediator- helps parties to a dispute, or other impasse between them, try to reach a negotiated settlement for themselves, with or without the assistance of their own professional advisers.

"Mediation is both Sharia compliant in its philosophy and well regarded as an established international dispute resolution process," says Andrew Goodman. "Mediation is also truly voluntary, as entering the process does not bind the parties to reach settlement. In most cases mediation cannot take place unless all the parties agree to enter the process, and will cease if one party leaves the process, which they are generally free to do at any time."

Mediator will have no authority to make obligatory determination and therefore, a mediated resolution can come out solely on the authority of the parties concerned. The agreed terms will form part of an enforceable contract once the settlement is reached. Mediation promises not only the client’s but also the professional satisfaction in terms of cost, speed, flexibility of conclusion and confidentiality.

"The role of the mediator and the confidential nature of mediation negotiations helps parties to focus on and realize their true needs and interests which may be far removed from what a court, an adjudicator or an arbitrator might ordinarily have jurisdiction to order," Goodman added.

Rent Decline Extends in Dubai

The rental scenario is taking an extended break in Dubai with the unchanged commercial and residential rents.

According to a survey, people are postponing the move until the holidays and consequently the moving to other flats has slowed down. The enquiries related to tenancy are mainly focusing on the areas which are less congested and where the best possible prices can be obtained.

The landlords have continued to be flexible as well as negotiations of rental rates and payment terms due to the uninspiring property market. The average annual rental rates have become constant since September.

The survey found , “In November, a studio at the  Dubai Marina Marina Promenade, Emaar Six Towers, Downturn Burj Dubai, Palm Jumeirah, Sheikh Zayed Road and World Trade Center areas, ranged from Dh50,000 to Dh60,000. Rents for one-bedroom units were static at Dh85,000 to Dh120,000. A two-bedroom flat was priced at Dh120,000 to Dh160,000, while a three-bedroom unit was at Dh160,000 to Dh210,000.”

“In the mid-tier neighbourhoods of Bur Dubai, Al Barsha, the Greens, Jumeirah Beach Residence and Dubai Marina, a studio in November ranged from  Dh35,000 to Dh50,000, a one-bedroom flat ranged from Dh55,000 to Dh75,000, a two-bedroom flat at Dh70,000 to Dh100,000, and three-bedroom units from Dh90,000 to Dh120,000.”

“Average annual rents continued to be cheaper in International City, Discovery Gardens , Deira, Jumeirah Lakes Towers and some parts of Dubai Marina. A studio in these areas was priced at Dh26,000 to Dh40,000, and a one-bedroom unit at Dh38,000 to Dh65,000. A two-bedroom flat ranged from Dh60,000 to Dh85,000, while a three-bedroom unit went for Dh90,000 to Dh110,000.”

“However, at  Jumeirah Lake Towers, new supply brought down rents, with the lower end of the range cheaper by Dh5 at Dh55 per square foot. The higher end of the range in Bur Dubai, Tecom, Downtown Jebel Ali and Festival City, remained at Dh170 per square foot per annum. In Deira, Dubai Silicon Oasis and Dubai Sports City, office rents still ranged from Dh50 to Dh100 per square foot per annum in November.”

Brainstorming Week Inspires Entrepreneurs in Dubai

The property investors who are thinking of buying and investing in Dubai may find some innovative options in Dubai real estate market in future due to the new cohort of developers.

The first time in Dubai Global Entrepreneurship Week has been hosted by Mohammed Bin Rashid Establishment for SME Development from 16^th to 22^nd November 2009.

The brainstorming events of the week brought together the young people from different parts of the region. The students also got the opportunity to investigate the creative and innovative ideas. Moreover, the week added an inspiration though talks and debates.

The initiative aims at creating some of the best entrepreneurs of the years to come. These prospects could help in creating some deep-seated new designers, architects and construction experts. Consequently, this may enhance the region’s property industry and make buying in Dubai even more exciting in future.
"The Global Entrepreneurship Week highlights our commitment to incubating young talent and supporting their creative ideas, and thus help establish leading projects in the future," His Excellency Abdul Baset Al Janahi, chief executive of the Mohammed Bin Rashid Establishment for SME Development said.

A major conference was also held with the purpose to consider the future of the region’s construction industry.

It was confirmed by the two-day event that the real estate in Dubai sustains to be a crucial part of the region’s economy and the construction industry. It also indicated that the industry is surely committed and ensures the region’s growth.

Government and partner organizations based throughout the globe hosted events like invention competition and local entrepreneurship summits. These were designed to inspire, unite, mentor and engage the next generation of entrepreneurs.

The growing movement was relished by millions of young people from all around the world with the aim to think big, turn ideas into reality and make their mark.

Dubai Villa Stock Welcomes the New Handovers

According to Dubai Properties Group, the leader in Dubai real estate market, the handover of entities in The Villa and Al Waha Villas is expected to take place in December.

Al Waha is a fully sold-out development with 260 villas out of which 50 are three bedrooms and 50 are four bedrooms. One can choose from the rooftop view or the garden level preference if looking for two bedroom location.

Apartments for lease at 558 Community
Of the 558 Community, 134 are of the four-bedroom type, 102 are three-bedroom and 180 are two-bedroom entities.. There are also 48 two-bedroom and 96 three-bedroom apartments to accommodate 558 residences. All villas are spacious and have an upstairs sitting room to boot.

The 558 Community also houses a block of three-storey apartments in its centre and features a large pool. These residences are being leased for Dubai Properties by Salwan Property Management and are not for sale. “We will offer our services to third parties in Al Waha and are managing phases 1 and 2 of The Villa project,” says Saeed Bushalat, CEO of Salwan Property Management. One- and two-year rental contracts are on offer, which come with the provision that there will be no value increases for the first two years.

Mirdif versus 558 community
Dubai Properties’ Shorooq community which includes 668 villas in Phase One, has 353 units ready for tenants to move into. According to Salwan, the rents for a two-bedroom villa here would amount to Dh170,000 compared with the 558 Community’s rates of Dh130,000 a year before summer.

However, after summer DPG stated that introductory promotional packages would be offered during the initial stage of leasing. This makes perfect sense as the market price for many areas in Dubai find themselves in a state of fluctuation this year.

“Mirdif and 558 Community are two totally different projects,” explains Saeed Bushalat of Salwan Property Management. “The unit sizes are bigger in Mirdif. Our rents correspond to the going market prices in the area. It is close to the centre of town and the shopping centers. The 558 Community has not got that yet.”

DPG also started handover of over 2,000 residential and commercial units at its Executive Towers in Business Bay in September. “Handover should be complete by the year-end. We have sold most units in the towers, but kept retail, hotel and some of the apartments to be leased by Salwan,” commented Khalid Al Malik, DPG Group’s CEO.

Palm Jumeirah Crosses 70% Construction

According to Nakheel, the developer behind Palm Jumeirah, 70% of its construction has been finished. A senior official said that the master plan is also being visited.

Marwan Al Qamzi, Group Managing Director of Nakheel Development Projects told, "We have finished construction on nearly 70 per cent of Palm Jumeirah. On our part, we sold a couple of fronds on the project but they still have not been built. It is part of the plan to keep them until we come up with some unique designs compared to what you have seen so far. You cannot freeze the master planning. You have to update it as you go. You have to update to meet market demands and customers requirements.”

The Kingdom of Sheba and Ottoman Palace are the inclusions of this waterfront project. Ottoman Palace is almost complete according to Qamzi. He added, “Both will finish by early April to June next year. The Kempinski Hotel is 85 per cent complete.” Work of Marina Residence started in March 2007 after Shimizu Corporation was awarded the contract in 2006 to construct superstructures, basement, architectural works, landscaping of the project and interior finishing.

Regarding rampant payment issues in the market, Qamzi said the developer was addressing the situation. "We are in discussions with all contractors about delays in payment since there are areas where we need to sit and discuss," he said. The Marina Residences did not benefit from the fall in prices of building materials. "With the change in prices, we have negotiated prices on projects that were led at the peak and at the beginning of the phases. However, this was not possible with the contractor at the finishing stages on the Marina project," said Qamzi.

"This is the last one under construction for the time being from our end," he said.
The final touches on the West side of the project are still going on. "Meanwhile, the East side near the Anchor Marina, which comprises a green area with a clubhouse, will be finished in two months," said Qamzi.The Anchor Marina is expected to berth more than 700 vessels, according to an earlier statement from the company. "The residents of Palm Jumeirah will be accorded priority in berthing," said Qamzi.

The developer confidently remarked that Palm Jumeirah project will witness the island emerging as one of the pioneers in resorts in the coming five to six years.

Dubai Properties Chairman Arrested

The Chairman of Dubai Properties, the state-owned developer, has been arrested on suspicion of offensive financial dealings, as reported by news agency Bloomberg on Friday. According to Dubai Attorney General, Essam Essa al Humaidan, Hashim Al Dabal  was arrested ten days ago and is now being interrogated.

Humaidan added, “We are questioning him almost daily and Mr. Al Dabal indicated he is ready to answer questions without having a lawyer present. We’re still trying to determine the extent of Al Dabal’s misconduct. When the investigation is complete, all details will be announced.” Further adding to this, he also added, ”The investigation is being “conducted swiftly and, God willing, it will be concluded soon and Al Dabal will be allowed to meet with a lawyer as soon as he appoints one and his family is allowed to visit him.”

An investigation had begun last year, to determine the corruption in real estate companies, which benefited from heaving demand after foreigners were allowed to buy property for the first time. Consequently, many officials were arrested including Zack Shahin, former chief executive officer of the emirates’ second-biggest property developer, Deyaar Development, and Adel al-Shirawi, former CEO of mortgage lender Tamweel.

Al Dabal is being held at detention center. He can be held for 21 days after which he must appear before the judge.

Meanwhile, the acting chairman appointed by Dubai Holding is Ahmad bin Byat. Subsequently, the CEO of Dubai Properties LLC, Khalid Al Malik will report to bin Byat.

Emaar Properties, the builder of the world’s tallest buildings nearing completion in Dubai, is on the edge of combining with Dubai Holdings along with two other state-controlled competitors, Sama Dubai and Tatweer. The move is aimed at controlling the supply of new buildings in Dubai in the midst of the flood of homes which coerced the prices of Dubai 50 percent lower.

Gazumping- A New Way to Force Up Prices

The premium Dubai properties are pushing up sale price after the settlement of the final figure with the buyer. The practice popularly known as “Gazumping” has given way to the price rise of around 15% as reported by real estate agents.

The term was first heard of in UK in 1980s and early 1990 when property prices were jaunty. Gazuming often results in the loss of money, spent on pre-approved mortgages, for the original buyer .It involves a seller withdrawing of an agreed sale after accepting a second higher offer.

"In the last month, we have seen sellers of high-quality units failing to honor their commitments.Eight or nine of our high-value deals have gone sour. In most of the cases the owners randomly increased prices by eight to 15 per cent,” told Parvees Gafur, Executive Vice-President of Sales.

"There have been cases in the past few months where the seller has increased the price by 10 to 15 per cent. But none of our deals have gone bad since we had other listings in the particular area", added Vineet Kumar, Asteco's Head of Sales in Dubai.

Saeed Mirsaeedi, Investment Manager at Sherwoods Independent Property Consultants, said: "We have seen instances where the seller has increased the sale price after listing at a certain price. They have also been removing their listing in order to wait for the market to recover rather than sell at a lower price."

Gafur said, “ There was a shortage of high-quality finished units and as a result sellers were listing their properties with a more than one agent. In most of the cases property owners do not give a written commitment to sell a unit at a particular price.”

"A seller gives a verbal commitment of the price at which he is ready to sell. We then take about three to four days to find a buyer. During this period the seller goes to other agents who may say they can obtain a higher price, and so when we contact him with a buyer, he rejects the offer," said Gafur.

Revision of Rent Laws by Emir

The Rent Law in Middle East has been revised leading to the rise in complexity of eviction of the tenant from a rented property.

According to the new Rent Law No.(20) of 2009,issued by The Emir H H Sheikh Hamad bin Khalifa ,the revision does not give right of raising the rentals to the landlord. In addition to this, a landlord cannot ask his tenant to vacate the property unless the property is needed for his/her personal use or the use of any of his legal dependants. Moreover, the landlord in this case, should also give the notice to his tenant at least six months prior to the requirement.

The revisions were implemented after reviewing the draft law proposed by the Cabinet, considering the views of the Advisory Council and assessing the Constitution and related laws.

Tenant’s Perspective
•    The new law averts any increase or alteration made in tenancy contract for first two years.
•     Landlord must provide the property in sound quality.
•    Article 16 of this law puts the responsibility of property maintenance on landlord. But very next article states that landlord shall not make any change which will affect the tenant benefit in any way.
•    Tenants should be sure that only the contracts which are in written form and registered with RERA will be valid.

Landlord's Perspective:

•    Landlords will be constrained to decide rent at the time of contract for two years. Keeping this in mind they can decide a reasonable rent, as per the future economic changes
•    The landlords are free to receive rent value on agreed dates.
•    Any changes to property cannot be made by the tenants without landlord's consent
•    Tenants need to pay the entire taxes due to the Government.

Any complaint from a tenant will not be received by the Rent Dispute Settlement Committee (RDSC) set up by Law No. 4 of 2008, unless the tenant confirms a rent contract registered at RDSC office. However, tenants who seek a proof of landlord-tenant relationship for leases which were signed before February 15, 2008 can approach RDSC without contract.

Office Rents In Dubai Are Recorded Second Highest In EMEA Region

A new report was found that the office rents in Dubai are found to be the second highest in the EMEA region behind London’s West End. It was found that the average office rent in Dubai property sector is EUR995 per square meter per annum. However, the rents are expected to fall as the supply in the real estate market in Dubai gets increased. The report showed that the office space in Dubai is just after West End which is EUR1019. The associate director of research for CBRE Middle East, Matthew Green said: “Despite the much publicized downturn in the Dubai market, prime office rental rates remain comparatively high and second only to London's West End.”

Furthermore, the report said that the average prime Dubai office rates fell by 18.2 percent. However, the fall has been lower than in European cities. CBRE said rents have already dropped across the board. It was particularly talked about the office buildings in Jumeirah Lake Towers and Tecom.

The report further added that occupiers in Abu Dhabi were taking their commitments to new Grade A because of the uncertain economic situation. The report also listed the next three strongest office markets in the region which include: Paris, St Petersburg and Moscow. The director of EMEA research, Richard Holberton said: “Landlords are finding it increasingly difficult to lease vacant space, given the understandable caution being expressed by most occupiers at present. With those occupiers requiring space driving a hard bargain, and increasing choice available in the market, it is inevitable that we will see further weakening in rents and an increase in leasing incentives in most markets over the coming months.”

Salwan will now Manage Executive Tower at Business Bay

Comprehensive property management services will be provided to the Executive Towers development at Business Bay. Dubai Properties has appointed Salwan for that matter as it will now be responsible for managing this 12 tower self contained Dubai real estate development for an area of 8.7 million sq ft. Executive Tower comprises of 10 residential towers, a Business Bay hotel and a freehold office tower. Dubai Properties has also mandated Salwan to extend the leasehold options for Executive Tower units. An amount of AED 15.38 per sq ft will be levied as service charge for maintaining the landscaped areas, indoor car parks and various infrastructure works within the development.

CEO of Salwan, Saeed Bushalat said: “As one of the leading property management companies, we are pleased to extend our offerings to Executive Towers. Our value added services are designed to exceed client expectations while ensuring the long term plans and sustainability of the development. We look forward to a fruitful relationship with the property owners and retailers at the development.” As the portfolio for properties around Dubai is growing Salwan currently owns and manages approximately 18,000 commercial as well as residential units at different Dubai locations.

An official spokesperson for Dubai Properties said: “In our committed endeavor to provide competitive services for offering a niche lifestyle experience, we have appointed Salwan Property Management to manage the Executive Towers that is quickly moving towards its handover phase. We believe Salwan has the expertise, the capabilities and the resources to provide premium services to the Executive Towers community and ensure the sustainable maintenance of the development.”

For Dubai properties, Executive Towers is the first project in Business Bay and following the successful release of Jumeirah Beach Residence a second major freehold project is to be handed over.

Steady Shift Shown by Dubai Properties

A Dubai based property consultant, Sherwoods Independent Property Consultants, has announced that Dubai real estate market has entered a new phase which is showing the signboard of recovery. It has been announced that a steady shift has been seen in Dubai property prices thereby, prices are moving towards a more reasonable level. Moreover, in starting of the 4^th quarter of the year 2009, more concrete growth signs in terms of real estate investments and property prices are expected to be seen. It has been predicted that the coming year 2010, will be a year for stabilization and a specific new direction for the real estate sector.

Sherwoods credited the most important players of the industry for quickly adjusting to the changes in the market environment. The MD, Sherwoods Independent Property Consultants, Iseeb Rehman said: “I would say that the prices have been corrected to reasonable levels, which has created more value offerings to buyers and investors. The positive signs we are seeing should result in more tangible proof of growth around the 4^th quarter of 2009, during which property prices will further stabilize and we can also expect a marked increase in property investment.”

In 2010, Dubai will get transformed into a stable market as far as property investments are concerned. The available property prices today, are the best for long term investments and the investor is expected to make good profits out of it. At this point in time, investors those who want to invest in property sector for short term are not advisable to do so. Sherwoods acknowledged the remarkable performance of the property sector in a situation of global economic downturn and Dubai’s decision to enhance the infrastructure in the emirate.

Attractive Finance for Executive Towers by Dubai Properties

Dubai Properties is a subsidiary of Dubai Properties Group (DPG). It has announced its coalition with the Standard Charted Bank in order to offer Easy loan mortgages. This easy loan serves as a great funding option for potential buyers and those who are the existing owners of the residential units at Executive Towers. This master development is a unique property in Dubai ideally located at one of the prestigious development in Business Bay. The Executive Towers comprises of both commercial as well as residential units.

Customer’s property will be evaluated directly by SCB as a part of this easy loan by some independent surveyors and finance is being offered with minimal documentation requirement from the client. This easy loan mortgage product is beneficial for those who are resident in the UAE and they should also meet some specific eligibility criteria for that matter. This mortgage product offers financing of up to 40 percent of the total property price. The Group CEO of Dubai Properties Group, Mohamed Binbrek said: Dubai Properties' alliance with Standard Chartered, one of the leading Mortgage Providers, is part of an endeavor to provide our clients with viable loan options. We are focused on leveraging synergies across the real estate sector and aim to continue delivering strong investment values to our customers and give them the confidence and security to invest in the real estate market.”

The advantage of these financing terms can be taken by the customers for the final payment for tenure of 3 to 25 years. This financing term is on Dubai Properties Executive Tower residential property units. The financing term for the final payment varies from Dh150000 to Dh10 million. As part of the loan customers can also finance their land registration charges.

After Emaar and Dubai Properties Merger New Entity to have Dh194bn

Emaar properties have a proposed merger with three Dubai Holding entities and it has been said that now the combined assets are Dh194 billion. Moreover, with their merger a new entity has been created. Emaar Chairman Mohamed Alabbar said to Dubai Financial Market: “The new entity will have Dh13.4 billion of debt obligations, around seven per cent of total assets valued at Dh194bn.”

Dubai properties, Sama Dubai and Tatweer, all three entities of Dubai Holding have a solid land bank, thereby, contributing positively to the consolidation. At the end of the year 2008, the 3 real estate developers excluding Emaar properties has a total asset of Dh126 billion, moreover, an external debt of Dh3.4 billion. This complete are just 2.7 percent of the total assets of the 3 companies. As per 31^st March 2009, the total book value of assets of the largest listed Arab developer was at Dh68bn. The total debt obligation comes out to be 15 percent of total assets that is Dh10bn. Sama Dubai, Dubai properties and Tatweer are the three entities of Dubai Holding which are valued at Dh126bn as of December 2008. Moreover, they have external debt obligations as well which are around Dh3.4bn.

Although, four of them will join their assets, however, they will also share a debt of Dh13.4 billion. Out of these 4 Emaar properties is the only Dubai real estate developer that is being listed on DFM which at the end of March had the total assets worth Dh68 billion and the debt obligation of Dh10 billion.

Infrastructure Work going on at Business Bay Development in Dubai

Key infrastructure work is going on at Business Bay development. It was announced by Dubai Properties, a subsidiary of Dubai Properties Group. The key infrastructure work includes district cooling, water network, sewage and power connectivity. The total amount that is being spent on this work is Dh10 billion. The master developer is also pulling up the socks for the delivery of Executive Towers which is also a part of Dubai property sector. Business Bay is a master real estate development; however its work is steadily progressing.

Business Bay is a master development for Dubai Properties and is an 80 million sq ft development. It is ideally located on Dubai Creek’s extension. In February 2009 this real estate project was energized by a power substation of 132/11 Kv. This was to feed the first and the second phase of the development on the west side of this real estate development.

The Group CEO of Dubai Properties Group, Mohamed Binbrek said: “Business Bay is our most acclaimed and ambitious project up to date. The unprecedented logistics and scale of construction that encompasses the development is closely supervised by Dubai Properties and relevant business partners and stakeholders, and we are determined to deliver all foundational function in a timely manner. In line with our promise to our stakeholders, our status is backed by projects such as Executive Towers and the Creek extension at Business Bay, amongst other spectacular developments around Dubai. Client needs stand as our topmost priority and we will continue to bring on stream projects that serve as a benchmark for generations to come.”

A broad and widely spread road network has also been laid out throughout these two phases of this spectacular project in order to serve both the commercial as well as residential premises.

In Q3 Dubai Rents are expected to Decline Further

Dubai is expected to face the signs of rent stabilization. According to landmark advisor the rents for residential property units in real estate in Dubai will further decline in the third quarter. The Director of Research, Landmark Advisory, Jesse Downs said: “For the Dubai market, there are distinct signs of market stabilization and a return of confidence from end-users. Sale prices have even increased in some cases. This increase is largely due to the dynamics of each development.”

According to the Landmark, the sharpest decline was seen in the apartments and there was an oversupply of this segment because of combining of the economic downturn and quality of high-rise apartments completed in the year 2008. Earlier, price differentiation was based on factors such as location, quality finishing and views etc; however they have now been replaced with other factors. The developments which are experiencing price increase are smaller villa developments. Among end-users these developments follow value recognition in terms of its quality, amenities, layout, location and all. If we compare Landmark’s May guide with that of June, it shows that Palm Jumeirah has now got stable rents while a fall of 7 to 25 percent could be seen in Dubai Marina studios.

Jesse Downs believe that distressed sale opportunities are largely furnished as the sellers have refused to lower down the prices which already exist. For sough-after residential developments with limited availability of homes, buyers are paying high rates in some cases. Rent guide is developed by using the broker survey, mystery shopping and transactional data. She further added: “Dubai tenants will see even more opportunities to upgrade their accommodation as rents will continue to fall. However, high-demand areas will experience a faster rent rebound as deal-seekers rush in.”

Discovery Garden Property has got a New Rate Fixed by Nakheel Real Estate Firm

Discovery Gardens is a well structured community comprising of six themed communities developed by Nakheel. The community offers an area of 26 million square foot freehold residential community. Its construction has been inspired by garden living developed in the heart of New Dubai. Nakheel is one of the leading Dubai real estate developers and has recently planned a revised budget for Discovery Garden community. Before re-setting the property rate, the revised price has been agreed formally with RERA, Dubai property market regulator. This price change will mean an approximate reduction of Dhs5 per square foot in service changes for homeowners.

Managing Director of Nakheel Asset Management and Design (NAMAD) Abdulrahman Kalantar said: “When we first set the service charges for Discovery Gardens, they were based on our best estimates for this new Nakheel community. Following a lengthy review, we have been able to take advantage of recent reductions in the cost of goods and services, which has in turn reduced our overall service charge budgets.”

Nakheel made some necessary preparations with following the introduction of the new strata law in April, 2008. Once the regulations are being finalized by the Dubai Land Department (DLD) these preparations are to register the Owner’s Association with RERA, these necessary preparations are to register the Owner’s Association with RERA. Moreover, these new lowered service charge rates will be backdated to 1^st January, 2009. If there will be any rebates for householders they are being credited against next year’s service charges effective from October 1^st, 2009.

Foundation Works Awarded for Dubai Real Estate Project

Khuyool Investments is a leading property developer in the UAE awarded Delta Foundation the works for Abjar Tower which is a real estate project based in Dubai. The foundation works for this is supposed to get completed in the first quarter of the year 2010. After the groundwork gets completed, phase one of the construction will begin. Chairman of Khuyool Investments, Engineer Fahad Ali Mousa said: “This announcement is a very significant step for us as it reflects our strong commitment to all investors. We will go ahead with all our projects as planned with firm determination.”

Currently Khuyool Investments is being involved in developing many other real estate projects across locations in Dubai. The CEO of Khuyoon Investments, Engineer Kussay Al-Sheikh added: “The appointment of Delta Company was in line with the company's efforts to ensure the quality and fast pace of the project's construction, keeping in mind that Abjar Tower is the tallest project within Jumeirah Village South.”

This tallest tower in Jumeirah Village South is uniquely designed incorporated with great luxury thus, enabling a luxurious lifestyle. This iconic property has become a famous landmark and is greatly inspired by its surroundings. Abjar Tower offers a blend of elegance and luxury with distinct glamour. Various other real estate developments are going on a large scale but this property project seems to be special. The CEO of Delta Foundation, Dr. Ibrahim Al-Banna embodied his organization at the signing ceremony of the agreements.

Dubai Land Deals Reach Dh2.15b

Last week in Dubai the total worth of the land transactions reached an amount of Dh2.15 billion. In return the sales also got exceeded by Dh1.41 billion. According to the Land Department during this period the total value of mortgages was Dh736.89 million. Al Ruwayyah was the most valuable plot and it was sold for Dh207.2 million. As the week ended, The Department registered a total of 81 transactions. During this week Dubai real estate has shown vast improvement by delivering such prominent sales and registrations. Apart from the Al Ruwayyah, the next two prominent sales were shown for plots in Emirates Hills-3 and on the Sheikh Zayed Road.

These two sales were again tremendously huge as the plot on Sheikh Zayed road is acquired for Dh124 million and the one on the Emirates Hills is for Dh20 million. As far as week sales are concerned, the area of the Emirates Hills was the most active among all. Not only this, but Palm Jumeirah followed 14 sales. The period was under review during which it got disclosed that mortgages worth Dh524.86 million were registered, out of which mortgage for Marsa Dubai was the most significant with Dh214 million. Moreover, area in Al Jadaf was another for Dh94 million. Apart from all these sales and Dubai land transactions, by value Al Ruwayyah recorded the highest turnover followed by Sheikh Zayed Road for Dh124.01 million and last but not the least Emirates Hills-3 at Dh59.68 million.

In Al Ruwayyah the largest area which was sold was a 430,338 square foot plot. On Sheikh Zayed road a plot of 64,586 was acquired whereas, a 40,000 square feet area got disposed of in Jumeirah-3 for Dh15 million. This was the report and data acquired related to property transactions and registrations by Dubai Land Department.

ETA Star handovers Liberty House Real Estate Development

ETA Star is one of the leading real estate property developers in the UAE. This real estate company has now started handing over residential and office units to Liberty House owners. It is located in Dubai International Financial Centre district (DIFC). This property development company has already begun the handling of Dh700 million. Liberty House offers a complete range of freehold residential accommodation. The project is a 42 storey freehold tower; L shaped comprising of luxury studios, 1-2 bedroom duplexes and 1-2 bedroom apartments.

The Executive Director of the ETA Star, Abid Junaid said: “With great pride, we are pleased to say that we are amongst the first private property developers to deliver a project in the DIFC district. Keeping in mind to the current scenario, the delivery of the magnificent Liberty House holds strong significance in our hearts as this validates our trust and commitment towards our loyal patrons and customers. We will continue to strive towards completing our projects as per schedule.”

Liberty House is a full fledge unit comprising of office space, residential accommodation, car parking etc. This property in Dubai consists of office spaces on 10 floors. Above this there are 20 floors providing luxurious residential accommodation. Moreover, car parking is not at all an issue as 6 levels of car parking are available. This office property in Dubai in Liberty House is centrally located around an atrium space thereby, providing a lively and a comfortable environment for the employees. Moreover, the apartments are being developed with contemporary designs and a great level of sophistication is also involved. Apartments are designed keeping in mind the modern lifestyle with terrace areas. Thus, it has become a perfect residential and a commercial property.

Dubai’s Airport Development Investment has Increased

Dubai has confirmed an amount of Dh63b to be increased in Dubai airport development project. So far an amount of $7.2 billion have already been invested in this Dubai real estate project. Despite of these challenging times, the infrastructure in Dubai is still going on for that matter. President of the Dubai Civil Aviation Authority and Chairman of Dubai Airports, Shaikh Ahmad Bin Saeed Al Maktoum said: “These are challenging times for aviation. Passenger and cargo traffic has dropped off dramatically in most parts of the world leading to billions in industry losses. Dubai has been a beacon of light during these turbulent times. During the first quarter Dubai Airports recorded 2.1 per cent passenger traffic growth.”

In order to expand Dubai International Airport, an amount of $7.2 billion have already been invested in it. The expansion of Dubai International Airport includes a second concourse which got opened in the year 2008 and Terminal 3. This all has been done to increase the airport’s capacity to around 60 million passengers per annum. Shaikh Ahmad further added: “Dubai has been a beacon of light during these turbulent times. During the first quarter Dubai Airports recorded 2.1 per cent passenger traffic growth. That increased to 6.5 per cent in April and 7.1 per cent in May. In total, Dubai International forecasts a four to five per cent increase in passenger traffic for the first half of this year.”

The expansion also encompasses construction of Concourse 3 which is yet to be completed. It is expected to get completed in late 2011. In return the total airport capacity will get a boost to 75 million passengers every year. The government of Dubai is heading forward with its long term vision for the betterment of travelers and of course for the betterment of Dubai airport as well.

UAE on a path to recovery

Due to the lowering of the prices of the Abu Dhabi property, the UAE economy is on a path to a U-shaped recovery, as told by Sultan Saeed Al Mansouri, the UAE Minister of Economy.

“While economists continue to debate on whether the global financial crisis is over and how long it will continue to play out, we feel that the worst of the crisis is behind us,” Al Mansouri said, in his speech which was read out by Mohammed Ahmed bin Abdul Aziz Al Shhehi, the director general of the ministry, in his absence. Event was held at the Mega Trends Conference organized by Abu Dhabi University to throw some light on the impact of the universal economic crisis on the economies of countries in the GCC.

Al Mansouri’s speech said: “We do not harbour any false illusions that the days ahead will be easy or less difficult. We have all learnt our lessons and it will be hard to forget those easily. The most important lessons from the crisis have been the need for corporate and governmental accountability and transparency.” He said that the government is dedicated to shield the concern of the business community, while it is also paying attention on the economic and social welfare of the people.

Proceeding further in his speech, the minister mentioned that the motto will prolong to be diversification. “We will concentrate on diversifying our revenue streams through focused investments in several high-growth sectors. The country has already recognized and acted upon the importance of diversifying the sources of energy, while oil revenues have been the driver of growth, we set on a course of diversifying our economy, which is reaping rich rewards today.”

Considering the rise in competition for FDI in the region, Al Shhehi said that the UAE has everything that is required to make the nation more enticing to foreign direct investment.

Dubai introduces special property contract

Dubai has planned an introduction of a simplified contract that would become the plans to introduce a simplified contract that would become the custom for all property related purchases in the emirates as reported by the Gulf News. The Dubai Land Department has drawn up the approval of the standard contract, whose approval is awaited and it will clearly set out the terms for both sellers and buyers, said Emmad Eldin Farouq, department’s senior legal advisor. It is believed throughout the department that the standardized contract would make it more difficult for buyers to try to get out of the matter of signed deals or to add some fine prints to existing contracts.

The standard contract, which will be used for all the sales of property in Dubai, has been drawn up by the Dubai Land Department and is waiting for approval, according to Emmad Eldin Farouq, senior legal advisor at the body. The budge would diminish the number of developers and buyers back-tracking on deals which are signed, as the contractors signed deals, as the contracts would be clearer and apparent before signing, he added in a conversation with UAE daily Gulf News. "The contract is ready and we are waiting for directions," said Farouq.

Lawyer Michael Lunjevich, partner at Hadef and Partners, commented: "The standard contract is for finished properties between the buyer and the sellers. So it will have standard terms in line with market norms and then any changes will go to a separate segment to make it fair," Although signing one fundamental contract will undoubtedly make verve less complicated for developers and buyers, it will also cut the number of quarrels in the marketplace.

Despite the thinning up of contracts related to Dubai property, the land department and Dubai's RERA ( Real Estate Regulatory Authority) say that the burden rests with the buyer to ensure they go through the contract precisely before signing.

UAE nuclear energy plant seen ready in 2015: International Atomic Energy Agency

The united Arab Emirates, Dubai has informed the International Atomic Energy Agency, that it plans to have the first nuclear power plant to be functional in 2015, according to an IAEA official, while the organization believes that it is optimistic.

‘The UAE government told us that the plant would be ready and generating power by 2015,’ Ali Boussaha, a director at the IAEA, told Reuters on the sidelines of a conference in Dubai. I think this is optimistic because it generally takes 10-15 years to get people trained and infrastructure in place.The Gulf Arab state was on a fast-track plan to develop nuclear power and was taking technical advice from the IAEA,’ Boussaha said.

2017 is the latest date estimated by the industry for setting up such a plant in the UAE. Barack Obama, the President of US gave an approval on Wednesday for a nuclear energy deal with the UAE worth billions of dollars to US energy companies. The UAE, ranks at the third position for being the largest oil exporter, and now is planning to create several nuclear reactors to meet the need for an extra demand of 40,000 megawatts of electricity by the year 2017.

GE and Westinghouse Electric Co, a subsidiary of Toshiba Corp, the US builders of nuclear reactor, stand to hold a big share of the much expected $40 billion market if the deal is approved by Congress. Suez, France’s Total, Suez, and state nuclear reactor maker Areva said previous year they had made a plan to create two third-generation nuclear reactors in the UAE. The UAE has said it plans to launch an agency worth $100 million to get involved into the development of nuclear energy to appease the rapidly rising demand for electricity with the growth of industry. The Gulf Cooperation Council (GCC), a unfastened congregation of Arab states comprising the UAE, said it was studying developing a combined nuclear energy programme in 2006.