Dubai Forum After Opening of Burj Khalifa Delineates Sustainability Trends

A leading platform of discussion on sustainability trends in the construction industry of UAE, The Dubai Forum was held in Dubai on 5^th January. There were circa 40 speakers and panelists along with more than 400 delegates from 15 different countries discussing on the ways for obtaining the sustainability in the construction industry of the region.

The event was organized by Brand Dubai focusing on ‘Architecture for Sustainable Societies’. It was held under the benefaction of the Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rahid Al Maktoum and Deputy Ruler of Dubai, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al-Maktoum.

The Chief Executive Officer of Brand Dubai, Mona Al Marri said in her address, “The UAE has the resources required for creating sustainable communities and The Dubai Forum provides a channel to gather inputs in the architectural, design, and planning areas.Taking forward the vision of His Highness Sheikh Mohammed, The Dubai Forum will publish an annual anthology on sustainability and environmental development in Dubai and across the UAE. Our objective is to create a body of work that will benefit professionals, scholars, students, educators and the general public in the Arab world."

The Chairman of Emaar Properties, Al Abbar commented on Burj Khalifa as the Landmark and the mouthpiece of an emphatic message to the world. He said, “It is a new accomplishment that has crowned the list of Dubai's great achievements. Burj Khalifa is not just a symbol of the UAE, but of the entire Arab world. The UAE is reinvigorating the spirit of the Arab renaissance, when our forefathers led the rest of the world in the sciences, mathematics and even architecture."

He while describing the Burj Khalifa as a structure to the creativity of human, said that it has given way to a ‘whiff of fresh optimism to the region’. “The 12,000 people who worked on the project have equipped themselves to take up a daunting task in the construction sector anywhere in the world. When wise leaders stand by their people and inspire them to push the boundaries, the impossible becomes possible. Burj Khalifa proves just that

New Legislation on Dubai Real Estate Rent Cap in 2010

Legislation was issued on Dubai Real Estate cap in 210 by the Ruler of Dubai, Prime Minister and the Vice President of UAE, H.H. Sheikh Mohammad Bin Rashid Al Maktoum, in order to ensure the stability in the real estate market in Dubai.

The decree not only aims to regulate the relationship between tenants and the landlords but also to chart a legal framework for this matter.

The ceiling on the rent increase in 2010 will be set on the same rates as for 2009 according to the decree issued on rental cap in 2009. The Real Estate Regulatory Authority (RERA) was approved by the decree as the main reference to resolve the average rent on which the rental increase in 2010 will be fixed upon.

The increase in rental is allowed only if the price of the property is more than 25 percent below the average index price. If the rent of the property was charged 26 percent to 35 percent less than the average rent of the similar property then the maximum increase will be equivalent to 5 percent of the value of the rent for the year 2009

If the rent of a property was charged between 36 percent and 45 percent less than the average rent for similar property then the maximum will be equivalent to 10 percent of the value of the rent for the year 2009.

Similarly if the rent was between 46 percent and 55 percent less than the average value of the rent for the similar property then the maximum increase will be equivalent to 15 percent of the value of the rent for the year 2009.

If the rent was between 56 percent and 65 percent less then the average value of the rent will be equivalent to 20 percent of the value of the rent for the year 2009.

The decree will get effective from the date of issuance and will also be published in the official gazette.

Hotel JAL Tower to Open Its Doors in Spring 2010

The JAL Hotels, the first Japanese Luxury Hotel in Dubai, will soon add the second jewel in the luxurious hospitality sector of the emirate. The hotel will be known as the JAL Tower Dubai and the five- star luxury icon is scheduled to open its doors in April 2010. The hotel stands on a 57 storey Glass tower on the prestigious Sheikh Zayed Road aligning with other renowned luxury hotels in the industry.

While commenting on the expansion of the brand projects, the Executive Officer and Project Director, Mr. Chiyuki Fujimoto said, “Expanding the footprint of JAL Hotels brand in the market has always been one of our objectives and certainly Dubai has proven to be the destination with the highest potential. We would like to thank ACICO Industries (K.S.C) not only for their continuous trust in the brand, but also for a great architectural masterpiece and an outstanding address in Dubai for a luxury hotel to be.”

Adding to it he also said: “With Hotel JAL Tower Dubai', the brand is further developing its presence in the Middle East Region.”

Offering the panoramic views of Jumeirah Coastline, this enthralling 270 meters high standing tower will offer admirable Japanese services full of comfort and genuine luxury along with an elegance and ecstasy of the decors at every level as one enters the 57 storey building. Hotel JAL Tower Dubai features 471 well equipped rooms, suits as well as luxury apartments. A number of elite dining, leisure, recreational and business facilities add to the memorable experience of its patrons.

The hotel comprises of 7 idiosyncratic restaurants and bars offering special gourmet delights and authentic dining. “Benkay” serving Japanese cuisine and “Icho” as a Teppan Grill restaurant give the best of all feeling to the diners. The hotel does not miss to offer the recreational ecstasies like a modern gym, a spa, a swimming pool on terrace and a salon.

Frame Structure of Ocean Heights Completed

DAMAC Properties, the provider of luxury lifestyle and the pillar behind several other projects, announced the completion of the concrete frame of the tallest tower in Dubai Marina along with its development at Ocean Heights standing high at 84 floors.

Ocean Heights is the flagship of DAMAC and is expected to become one of the most iconic buildings of the area. With its twisted architecture, it already is being visible above all others in the surrounding area.

The Chairman of the main contractors Arabtec, Mr. Sajwani said, “This is a significant day for DAMAC Properties - the structural completion of our flagship building is a source of great pride and an occasion that we are glad we have been able to mark with the support of RERA, Arabtec and so many of the staff who have worked on site for the past three years. To think that this magnificent building has been constructed in a little less than two and a half years is a testament to their efforts and I pay tribute to their hard work and accomplishments. This has been a turbulent 12 months for everyone involved in real estate and it is therefore all the more impressive that everyone involved has remained so focused and dedicated to the task at hand. We are delighted to be literally ending this year on a high by finishing our tallest building.”

He added, “As a contractor we are always proud to be associated with quality projects and it is pleasing to be here to commemorate this milestone event for DAMAC Properties as we finish the main construction of Ocean Heights,' he said."A large part of our philosophy at Arabtec is to work hard with developers to build a relationship and to work together as one team on challenging projects like this. In the light of some of the recent negative news and speculation, I believe it is even more important that we recognize the efforts and achievements of everyone involved in the construction of Ocean Heights and celebrate how significant they are. Once completed in 2010 Ocean Heights will eventually offer 680 apartments ranging from one to three bedrooms. In addition the building will feature DAMAC Properties' Signature Series penthouse range - ultimate luxury apartments with the latest in hi-tech gadgetry and luxurious home comforts.”

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.

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.

Selling of Dubai Assets to Help Dubai World Turned Down

A top Dubai Government official confirmed that Dubai is not going to sell any of its assets to bail out Dubai World. He also added that the group will be able to overcome the situation by restructuring its debts and selling its own assets.

Abdul Rahman Al Saleh, the Director-General of Dubai Department of Finance said that part of financing Dubai World will be through the means of the sales of the asset as these are the company assets and not the government assets.

He said adding to it , “The motive behind restructuring of Dubai World is to ensure continuation of its operation as a viable commercial entity. The future of the company is most important than liquidity. It is in the company's interest to inject liquidity or restructure it, to ensure that it remains sustainable in the long-term.”
Al Saleh said that the Dubai World as well as the problem that of Nakheel, the developer of Palm Jumeirah and other real estate in Dubai, has originated from short-term lending on long-term projects, which doesn't generally work in a volatile market situation. Majority of Dubai World and Nakheel projects are long-term projects with strategic importance. These cannot be developed through short-term lending.
Al Saleh also said, “Dubai Financial Support Fund, established in July this year, can offer support to Dubai World, if needed.” He reiterated the government's stand on the state guarantee for Dubai World's debts.
Al-Saleh also pointed out that the legal documents signed at the time of company establishment do not carry any clause on the government's guarantee. The clauses clearly specify that the government will not guarantee the liabilities of the company.

Dubai Strives to Fulfill its Commitments

A senior official of Dubai Government declared that the Government of Dubai is capable of honoring and meeting its commitments internally as well as externally.

The Director-General of Dubai Finance Department, Abdul Rahman A Saleh expressed the restructuring of Dubai World as a natural phenomenon which can occur in many countries and companies.

Al Saleh also said: “Articles of association of Dubai World stipulate that the emirate’s government shall not guarantee its debts,” he said, noting that a distinction should be made between the Government of Dubai and the group which is made up of several companies – including Nakheel and Limitless World – operating in various sectors.

“The media has blown the issue of restructuring part of the group’s debts including the delay of repaying Nakheel’s debts out of proportion,” he said, affirming that restructuring of companies is a frequent practice worldwide.

“The aim of restructuring is to allow the group to steam ahead with a new shape and keep abreast of changes.”

Al Saleh when asked to comment on the putting off ventures undertaken by the group, he said: “It is better and wise to delay projects that have not been executed yet.” He did not rule out selling of some assets in Dubai or abroad, saying: “Selling of some assets is a natural act in order to bolster the financial situation of the group in such circumstances.”

He added Dubai World is active in many sectors but it was only the real estate sector that was impacted by the international financial crisis.

“Dubai World was to meet its main creditors to discuss its request to delay repayment of $26 billion (Dh95bn) debt,” bankers told.

The bankers, who declined to be identified as the talks are private, said the meeting would take place in the afternoon without being more specific. A Dubai World spokesman declined to comment.

Global Investors’ Gaze at Dubai Real Estate Again

With the real estate prices gradually coming on track, the investments in Dubai real estate are being much talked about by the global investors. Due to the weakening of the clutch of recession all around the world, these investors are looking forward to the market going towards reasonable scenario.

Tej Kohli, a real estate investor and founder of Ozone Real Estate commented, “The latest results from the Dubai House Price Index from Colliers indicate that real estate prices in Dubai have grown almost seven percent during the third quarter of the year from the previous quarter”.

He also added that the results are a fair indication of tremendous recovery and also signalize a bounce in the market.

Kohli confirms, “The stability in property prices is set to be steady from this point on, given the fact that real estate prices are moving to more reasonable levels. The best indication about the Colliers report is that transactions Increased by 64 percent during the third quarter, due to relative stability in prices and affordable housing. Moreover, the growing property boom will be further strengthened by a series of new launches and openings within the emirate, the report said.”
Kohli also pointed out that world’s tallest tower Rose Rayhaan will also witness a gala inauguration by the mid of December followed by the reopening of five-star hotel Jebel Ali Golf Resort and Spa.

The first quarter of next year will also welcome the opening of high profile hotels The Conrad Hotel and Ritz Carlton along with a series of other projects including new airport.

Further the opening of crescent shaped The Palm Jumeirah Royal Amwaj Resort & Spa, Jumeirah Golf Estate, Dubai International Airport and Tigerwoods’ Al Ruwaya Resort are also entering into the shoes of development in 2010.

The swerves of launches show that Dubai is moving fine on track. Kohli concluded by appreciating the rise of global tourism by 4% as compared to same period last year.

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.

Empower Commissions Business Bay Executive Towers District Cooling Plant

Emirates Central Cooling Systems Corporation (Empower) announced recently that for Business Bay Executive Towers it has commissioned the 45,000 refrigeration tone district cooling plant. This world class plant has started supplying chilled water to the area since June 2009. Empower has done a joint venture with Dubai Electricity and Water Authority and Dubai Technology and Media Free Zone. The CEO of Empower, Ahmed Bin Shafar said: “Business Bay Executive Towers is expected to be one of the busiest and dynamic business spots of Dubai. International quality standards were adopted in commissioning this significant plant. The plant will supply not only the 11 towers of this development, but also other developments at the Business Bay at phase one and two project serving through a 6-7 km long network.”

This executive tower comprises of 11 towers, out of which 9 are residential towers, Business Bay hotel and a commercial development. Bin Shafar further added: “District cooling systems (DCS) achieves economies of scale by using centralized plants instead of individual cooling units in each building. The centralized system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building.” The Executive Towers is the first phase of the development that has been launched in this billion dollar Dubai real estate development.

The commission of this world class plant has been finished and it will serve the entire project through the off site district cooling systems in order to save around 35 percent energy consumption. Bin Shafar said: “Commissioning is vital to ensure a seamless implementation of the project until the completion phase. It is a matter of pride that this project will be completed in time and within budget and this where commissioning fits in.”

Dubai Lifestyle to Hit 80 Percent Occupancy At Marriot Hotel Properties

The three Marriot hotels being built at Dubai Lifestyle City which includes 5 star JW Marriot featuring 170 rooms, a Marriot courtyard with 150 rooms and 46 Marriot Executive apartments. These Marriot hotels are all set to hit around 80 percent occupancy when they open. Arif Rahman, the managing director, told Gulf News that: “We have a healthy RevPAR (revenue per available room) and we expect between 70 to 80 per cent occupancy.” There are various other Dubai real estate projects going on in Dubailand, which have been delayed, however, the Dubai Lifestyle City is progressing at a fast pace, due to the manageable size of the project.

The resources have said that since the project is in partnership with Marriot, therefore, the residential portion of the development will be named as the JW Marriot Residences. Moreover, the security, quality and safety of the project will be in line with the Marriot’s global international standards. Raza Siddiqui, the executive director explained that there will be sprinkler systems installed in Marriot residences. As far as the accommodation is concerned, there will be a total of 68 villas of five different types ranging from 10,000 square ft area to and area of 20,000 square ft. Each of the 68 villas has been given a name such as Siena etc.

The construction of 120 regular, penthouse and duplex apartments has already been awarded to Saleh Constructions. Around 500 people are working onsite. The entire project is expected to get completed by the end of the year 2012. Despite of the global financial downturn, Rahman is confident enough that the sales price for this real estate project in Dubai Lifestyle City are appropriate. Moreover, about 50 percent of these residential units have already been sold so far.

30 Percent Increase in Property Prices in Jumeirah Village

Dubai real estate has now witnessed a 9 month period of decline. Moreover, now some early signs of recovery of the property sector can be seen. According to some recent reports, the property prices in Jumeirah Village have tremendously increased. The prices have climbed by 30 percent from their lower levels of pricing in January this year. As far as property in this community is concerned, the construction of Gardenia I & II is getting fastly tracked. This property construction is strategically located in Jumeirah Village. The construction of this project is being tracked by a well known real estate developer in Dubai, Memon Investments.

Jumeirah Village itself is a well designed community developed by a master developer; Nakheel is set to provide authentic and stylish commercial, residential and retail space. MD of Memon Investments, Ahmed Shaikhani said: “We take pride in bringing to customers a variety of property units that address their requirements in luxury and style; however, we believe that we have also proven ourselves as an organization that is dedicated to fulfill our promises to our clients amidst the rise of difficult challenges.”

Moreover, this widely developed 811 hectare integrated community has not been impacted to the same degree as other residential properties in various communities across Dubai have been. Therefore, properties in Jumeirah Village still present profitable investment options for those who really want to invest their money in property sector. Thus, more and more investors are looking forward for investing in this opportunity with lower risk. Memon Investments has reported an increased demand especially for Gardenia I & II projects.

UAE Rents Set To Fall

According to the officials and experts, residential rents in Dubai and Abu Dhabi are set to fall this year. In Abu Dhabi real estate the rents are expected to drop by 10-15 percent by mid of the year 2009. Moreover, in 2010, it is even expected to fall further. As far as the fall in rents is concerned in Dubai, they are particularly steep in Nakheel’s Discovery Garden development. Chairman of the capital’s Chamber of Commerce and Industry, Salah Al Shamsi said that this reduction in rents was expected because of the new units that are set to appear in the market. He further added: “A number of residential units will be delivered by Abu Dhabi's top property development companies. They are due to deliver units in mid-2009 or by October at the latest.”

Truth Economic Consultants study showed that 37, 851 units are already available in Abu Dhbai property sector and in 2008-2009 around72, 285 units are more likely to join the race. Meanwhile, the experts say that Dubai rental would grow probably at a slower rate as it was earlier. The Chairman said that the property and rental in the emirate has not been affected by the global crisis. He said: “Prices have not fallen as in other emirates. The reason is the high demand for residential units in Abu Dhabi.”

Moreover, the Managing Director of Asteco Property Management said that in Abu Dhabi, Dubai and across other emirates too, rental properties are still in strong demand. Charles Neil, Chief Financial Officer, Landmark Properties said: “We expect rental prices to remain relatively stable in 2009, but they are likely to soften in the first and possibly second quarter.” Moreover, the rentals are expected to increase further in Dubai.

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.”

Project Named After A Famous Tenor, Luciano Pavarotti Will Soon Be Added To Dubai Real Estate

A deal is signed with Nicoletta Mantovani, widow of Luciano Pavarotti a world famous tenor to build a real estate project The Pavarotti Tower in Dubai on the name of her husband. New World Investment, a registered real estate developer in Dubai along with an Italian Property firm Ellebiemme Immobili di Presitigio has collectively signed the deal. The project named The Pavarotti Tower will be a commercial as well as a residential building which will be built on Palm Jebel Ali. The construction of this residential as well as commercial project is expected to begin in the month of September.

A lawyer Thomas Paoletti, with Studio Paoletti which is a law firm representing Ellebiemme, based in Italy said: “The developers have no doubt that this project, the idea for which has been in the pipeline for some time, will be successful despite the current economic situation. One of the main reasons for developing this project was to highlight the image of Italy while focusing on a name which represents the country's standards of excellence." The project will feature a Pavarotti Gallery where the recordings of the tenor’s voice will be played in a museum which will be dedicated to his life.

Moreover, each floor of the tower will be dedicated to one of the operas performed by Luciano Pavarotti. Some of the operas include: Aida and Rigoletto. The interiors of the building will be designed by an Italian architect, Ettore Mocchetti reflecting the theme and story of each opera. This real estate project in Dubai will have its own restaurant run by a famous Italian chef and its own private beach.

Leading Dubai Property Developer Gives Contract Worth Dhs8.5 Million For Champions Tower IV

Al Jassmy Contracting Co. LLC has been awarded by a contract worth Dhs8.5 million, for the construction of a 20 story residential building in Dubai Sports City. One of the leading Dubai property developer, Memon Investments has awarded this prestigious project to Al Jassmy Contracting Co. LLC. Champions Tower IV in Dubai Sports City is worth 450 million. Located in the hotspot of Dubai Sports City and the Memon Investments’ reputation, this residential property has already gained popularity. Champions Tower IV hosts units ranging from two bedroom, one bedroom and studio. The residents can relish the 21st century opulent lifestyle with state-of-the-art facilities offered here. Canal, garden and golf course views are an added advantage of this property.

Rizwan Shaikhani said: "In line with this goal, we have made it part of our strategy to partner with credible and trustworthy industry leaders to lend us their expertise and help us achieve the targets we have set for our projects. For ‘Champions Tower IV' we have assembled a formidable team of engineers and project managers who will be working hand in hand to provide our customers the quality and convenience we have committed to them."

It has been committed the completion of the project is targeted for 22 months. Before giving the main contract, the developer has got into the deal with Stromek Emirates Foundation for undertaking excavation and shoring. This contract is worth Dh1.8 million. Also, ETA Menco would install high speed elevators.

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.

Enabling Works Contract Awarded Damac Properties for Marina Bay

Damac Properties is a Dubai based real estate developer hat has been awarded with a contract worth Dh 7.5 million for facilitating works at Marina Bay construction in Abu Dhabi. Marina Bay is a well designed mixed use development comprising of retail and commercial space, a 25 storey tower offering two and three bedroom apartments, facilitated shops, restaurants etc. The Chairman of Damac Holdings, said, “We are delighted to see that work on site at our Marina Bay development will commence very soon and that we can begin the process of building this truly stunning tower at such a fantastic location.”

Marina Bay is a prime development offering canal views through the entire development. At the prestigious CNBC awards 2008, this property in Abu Dhabi won two awards for the Best Marina Development and another one for Best High-rise Architecture. Peter Riddoch, CEO of Damac properties commented: “Abu Dhabi is a very significant marketplace for Damac Properties and we know that the location of our Marina Bay tower will be hugely attractive to customers.” More than 3000 units have already been delivered by this property developer in Dubai into the marketplace. Further, by the end of 2010, they are committed to deliver 7100 more units.

Damac properties have already completed the enabling works for this particular project and apart from this the second project being Oceanscape in the Shams area of the capital. Recently retail units have been launched for sale in the already enabled development. Peter Riddoch added: “We have made a clear commitment to progress and construction during 2009 and the enabling works starting at Marina Bay is just a typical example of how we are demonstrating this commitment. We look forward to the successful completion of this important foundation work within the next few months.”

Dubai Real Estate Projects on Schedule – Memon Investing Dh 1.34 billion

Dubai has scheduled various real estate projects within the emirate. Memon Investments, one of the leading real estate developers in Dubai announced that they are well in place and on time with the construction work for all its running projects in Dubai. This is also a unit of Memon Group of companies and it announced that the construction of green buildings will continue and these new developments comprises of five new projects running at Jumeirah Village. The collective worth of the construction currently going in Dubai by this real estate developer is around Dh1.34 billion.

Ahmed Shaikhani, The Managing Director of Memon Investments said: “By taking these measures, we are increasing the potential of our projects to yield maximum investment returns, while also effectively reducing the ecological footprint, one of the common impacts of rapid advancement of developing economies such as Dubai.” This real estate developer is committed to deliver the projects despite of the cancellation of 48 property projects in the UAE. Its first development within the Champions Tower Series and the Cambridge Business Center is expected to get ready and delivered by the end of the year 2009.

As far as their new projects are concerned, Memon Investments has launched five real estate projects in Dubai Sports City. It included Frankfurt Sports Tower I and 4 towers within Champions Tower. These developments are in addition to Jumeirah Village Gardenia I and II and a construction in Dubai Silicon Oasis as well named Cambridge Business Center. Ahmed Shaikhani said: “The global recession has created an astounding backlash to the regional real estate sector that has even the largest real estate players in the region reeling from its blows. We are proud to be still standing strong amidst the downward momentum that is sweeping the regional real estate market. We are confident that the current economic conditions will have little effect on the construction of our projects."

Unique Styling offered by Omniyat Properties at One Business Bay Dubai

A Memorandum of Understanding (MOU) has been signed by the Omniyat Asset Management (OAM) a subsidiary of Omniyat properties. This memorandum has been signed with Dubai based u concept so that a perfect lifestyle is to be delivered to the tenants of Business Bay and it is said that it will be delivered by Q2 2009. As per the agreement, the entire podium roof consisting approximately 21,500 square feet including the food and beverage offerings will be operated by u concept. One Business Bay is an ultimate Dubai real estate unit forming the cornerstone of One Business Bay OYSTER.

Chairman and CEO Mr. Mehdi Amjad of Omniyat properties said: “Our partnerships with industry-leading specialists such as u concept reflect our promise to deliver the best OYSTER experience to our tenants in our flagship project, One Business Bay.” The omniyat lifestyle initiative will change. The concept of OYSTER initially introduced after One Business Bay got launched. Various interactive work facilities have been introduced contributing to a revolutionary high performance.

Omniyat has increased the budget to integrate these additional services and principles into its current flagship. The company is doing a lot for the welfare of the people those who are living and working in Omniyat buildings. OAM are Business Bay specialists focusing on healthier balance of work and life. The name of u concept has been changed to u plan and it is committed to the tailored wellness plans. A health program has been devised which is customized in order to reach more specific goals. This OYSTER project will get even more diversified with u concept and of course OAM thereby, turning it into a strong player in a healthier lifestyle business sector.

Law No. 9 Safeguard’s Dubai Property Sector

During this recession time, Dubai property sector is trying to come on the recovery path. During this tough situation the real estate investors are cancelling their contracts before completion, because of which Dubai government has issued law no. 9 in 2009. As global recession is prevailing, there is an acute shortage of liquidity in the property market, and thus property developers are not getting any new property contracts. RERA said, that despite of these contract cancellations there are some 30,000 units that are being made available in the year 2009 and in 2010, it will get increased to around 45,000 units.

This Law number 9 that has been issued in developers interest is basically got amended from Article 11 of Law number 13. Previously in article 11 the procedure that is to be abided by any property developer in the event of contract cancellation was mentioned, but the ruling being applicable was not mentioned in that article. Under this revised law number 9, the developer must notify the Land Department or RERA if any purchaser fails to make the installment payment for the property.

Once the notification is sent to the buyer, a written notice is being sent by the Land Department informing the purchaser about this breach, thus reminding him to rectify the fault within another 30 days, failing which the developer would cancel the contract. The most important fact regarding this law is if there are any other contracts or purchases associated with that particular contract, it will also get canceled. Moreover, a technical report from the site is a must to attach with the letter. A reference scale has been introduced for default purchasers as well.

With the emergence of this law both investors and buyers are being benefited as earlier no agency was there which could monitor these purchaser-developer transactions in Dubai.

RERA Audit performed on Dubai Property Firm comes Clean

Al Fajer properties successfully came out of the independent third party audit with RERA support. This Dubai property firm recently went through a construction audit which was voluntary and the audit was carried out by RERA. Al Fajer got a clean chit for its construction and they are pleased to announce that their performance can now be measured by a well established construction standard thereby; highest level of transparency will be maintained for all the projects under this property firm. The result of this audit undertook by Al Fajer confirms that the construction being carried out at phase 1 has been completed to about 80 percent and 15 percent has been completed on phase 2.

The official RERA website is the source where the progress of the project can be monitored. Company’s restructuring was started with managerial restructuring, followed by a financial restructuring which strengthened the balance sheet as a result. Phase 3 involves strengthening the operational capabilities of the company and removing the inefficiencies. Due to this operational excellence AFP, has now become number one developer in Dubai which delivers highest level of compliance.

President of Al Fajer properties, His Highness Sheikh Maktoum bin Hasher Al Maktoum said: “Often times in the past, some companies in the sector, were led by brokers and sales agents who did not adhere to sound business methodologies as it was very easy to sell real estate due to the excessive demand in the market. However, today Dubai like any developed economy is returning to fundamentals Therefore, companies that have a strong focus on management and performance as their core competencies are the ones that will excel in these current market conditions. I am confident that we will continue to deliver measurable results through our performance and dedication.” His Highness further commended on RERA’s proactive approach for attaining full transparency in line with its aspirations and clearly mentioned goals as far as the real estate sector is concerned.

Dubai Real Estate Recovery by Q3 of 2010

Real estate has started showing good signs and it signals the increased activity on the real estate front. These signs are showing that the property sector in Dubai is likely to get improve a little by late 2010. Dubai is currently facing global liquidity crunch which will take some time to vanish off completely. Currently the grip of this liquidity crunch is tight enough. The CEO of Asteco, Elaine Jones recently said that: “The recent announcement of the issuance of a six-month visa to property purchasers is a very short notice for buyers to stay in the market. It should be for a longer time. One cannot do much without a visa in this city. One cannot apply for Dubai Electricity and Water Authority facilities and there is no point in selling a property if you cannot have people live in it.”

Steven Henderson, who is a partner at law firm Clifford Chance said: “The next few months will be very quiet with little real estate activity in Dubai. However, by the end of this year we could see a number of consolidations of developer companies through mergers and acquisitions. Recovery can be expected towards the third quarter of 2010."

Thus, Dubai real estate is on the new road for its recovery and the real estate market will soon witness some green shoots of recovery according to a panel of experts in the industry.

Damac Properties Begins Cladding for Iconic Property: Park Tower

One of the leading Dubai real estate developer Damac Properties has commenced cladding on its luxurious property in Park Tower situated in Dubai International Financial Centre. The North and South Tower have reached 25 and 22 storeys respectively, being now visible at the DIFC skyline. Damac Properties have got into contract with Arabian Aluminum and the contract is worth Dh120 million. This contractor has the cladding of Burj Arab, to its credit. The Park Tower’s façade would comprise of aluminum and glass cladding. However, externally the building would have double glazed triangular panels set in aluminum framing.

The uniquely shaped two buildings, in this development, are expected to have their construction completed by the beginning of 2010. This development by Damac Property is Dubai’s most swiftly growing financial centre. This stunning property in Dubai would offer 400 apartments for sale in Park Towers and would give their client a huge range of size to choose from. This property would be beautifully finished with double gazed glasses, and would overlook the growing DIFC landscape.

CEO of Damac Properties Peter Riddoch commented on the progress of The Park Towers contruction. He said:
“It is fitting that we should record a double achievement on our twin tower building - with the 25th floor now in sight and cladding on the outside of the building already under way.

Park Towers will be a truly stunning building when it is finished and the cladding is an integral part of its striking design. We are delighted to be working with Arabian Aluminum on this part of the project and also commend the solid progress shown by our main contractor Shapoorji Pallonji - which is even more commendable in the light of their impressive safety performance on site as well.

To have reached the impressive milestone of 5m man hours since construction began without a single Lost Time Incident is a testament to the teamwork and co-ordination on site among all the staff and I want to thank them for the efforts they have made.”

Dubai Real Estate Buyers Cant Cancel Contracts Under Law No. 9

A legal expert suggested during the Dubai Society meeting held recently, that the Dubai property buyers cannot cancel their contracts under Law No. 9. However, the legal system has been somewhat sympathetic to the developers and given them the liberty to cancel contracts under this law. This decision was taken to discourage people from taking undue advantage of the down market. The only way now to cancel contracts, by a buyer, is by presenting an effective case in front of the court or approach the Dubai’s Real Estate Regulatory Authority.

Law No. 13, Article 11 was introduced in 2008 to standardize the procedure of cancelling the purchase of a real estate contract. However, over the time being there have been several debates on the law’s interpretation by the purchaser and the developer. Therefore, to normalize this situation, ruler of Dubai has introduced Law No. 9 to facilitate the procedure of termination of real estate contracts in Dubai. All contracts are legally bound by this new law even if the contract was entered before the law was passed, 30-April’09.

Procedure of Cancellation
If the purchaser fails to abide by the terms of the contract, the developer would have to inform the Land Department. The Land Department will then send a notice to the purchaser asking to fulfill contractual obligations within 30days. If the purchaser fails to do so within the stipulated time, the contract may, then, be cancelled.

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.

Hydra Village Investors Served Legal Threats

Legal notices have been issued by Abu Dhabi-based Hydra Properties to some investors in the Hydra Village project informing them that their property will be re-possessed by the developer and the price paid to store the elements by the investors will be forfeited if they would not be able to pay their outstanding dues. This year, Hydra Village was due to be finished with its construction but somehow the date of delivery has been delayed by two years. A document was sent to some investors by electronic mail and it said: ”The unit/s allotment… stands cancelled and Hydra Properties has absolute and unfettered right over the said unit/s, including but not limited to re-sale of the said unit/s to any third party."

It says: "…your purchase reservation agreement stands terminated" and "the reservation amount and installments paid… are deemed forfeited to Hydra Properties".

The newly formed Hydra Investors Group, that was joined by an investor lately, and he on the condition of being anonymous told Emirates Business: ” I was called by a Hydra executive last week and asked to pay the dues in the next few days or else they would take away my unit. The first time I received a call from Hydra was last year, but last week I was called twice. First they asked me about my situation and the next time they called to ask me to pay 50 per cent of the contract value or else they would cancel my unit. I never had any contract with them or any other communication about the project's progress. Now they ask me to sign a contract with clauses that are totally in favor of the developer. They are even not offering me time to review the contract."

Ahmed Khalil, Hydra's Commercial Director, confirmed that his company has sent legal notices to a few investors who had defaulted. "We are ready to help them and they can meet us by making appointments. We will be handling their issues on an individual basis. We have offered them revised payment plans and are even helping them to get finance from banks," he said.

Asked why the project was delayed by almost two years, Khalil said the master plan had undergone changes and as a result the timeframe for completion changed to the fourth quarter of 2011.

RERA Plans to Expand Globally

The emirate’s Real Estate Regulatory Authority is planning to become an international reference point when it is the matter of real estate industry. RERA is a regulatory authority that manages licenses and other property related activities in Dubai. This Dubai real estate regulatory body has recently got affiliated to the five organizations which are responsible for regulating the real estate dealings not only in the UAE but around the world. It has also become a part of Menares which stands for the Middle East and North Africa Real Estate Society. The basic aim of this regulatory body is to encourage real estate practices, professionalism and real estate education. Other than this RERA has become a part of various other internationally known real estate bodies.

The director of the RERA real estate sector development department, Mahmoud Al Burai said: “We are in the final stages of establishing Menares. We are aiming to build a professional real estate market and are serious about being first, globally.” He further added “Everyone is looking at Dubai. Everyone is looking at RERA as the reference.” The five organizations in which RERA has joined in are: International Real Estate Federation (FIABCI), Asian Public Real Estate Association (Aprea), World Association of Valuation Organization (Wavo), Urban Land Institute (Uli) and Royal Institute of Chartered Surveyors (RICS).

Al Burai said that the RERA plans of being a global real estate regulatory body were in line with the Vice President and Prime Minister of the UAE, His Highness Sheikh Mohammad Bin Rashid Al Maktoum. Moreover, the exact details of this dealing are still being discussed with other organizations and real estate bodies.

Dubai RERA will be escrow signing body

Dubai RERA is Real Estate Regulatory Authority which was established in July 2007 by the Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. RERA is a part of Dubai Land Department that regulates licenses and manages all Dubai real estate related activities and transactions. It has been decided that from now on Dubai RERA will be the escrow signing body. The agreements pertaining to the management of guarantee accounts will now be related between the account trustees and Real Estate Regulatory Authority. This news was reported according to an agency official in Emirates Business 24/7.

The Trust Account Administration Director, RERA, Khalid Al Mutaiwai told the agency official: “The new agreements, titled 'Guarantee Account Trustee Agreements', will mention yearly charges that will now be payable by the trustee banks to Rera. Rera is expected to send out the new agreements to the Account Trustees or escrow banks, in a couple of weeks' time." The new agreements which are coming up will specifically outline detailed information about the management of the guarantee accounts.

As per the guidelines that have been mentioned, four major allowable account heads have been created for the payment out of the escrow account. The escrow account is basically a trust account which is being held in the name of the borrower to pay debts including insurance premiums and property taxes etc. The four heads that have been decided for the payment from the escrow account are: construction, project management, land and sales and marketing. Thus, RERA engages itself as a transparent and an effective regulatory body formulating various entities.

Dubai Commercial Leases dropped by 64 per cent

A report has been generated by the Investment Boutique and Better Homes on commercial Dubai real estate market. In that report it was studied that for commercial Dubai property sector lease rates are likely to drop in the year 2009 at an average of 64 percent and then in 2010 it would further drop 20 percent. The report authors have realized that now that Dubai property market is very unpredictable, the traditional forecasting techniques cannot be applied on Dubai property market. This industry in Dubai moves from approximate immaturity to regulated fields.

The Department of Economic Development highlighted the figures of new licenses issued. The figures have fallen as the number of licenses issued in Q1 of 2009 has fallen by an average of 21 percent per month compared to the same in Q4 2008. Moreover, the white collar office employees are even predicted to fall in numbers. In the year 2009, they are predicted to fall by 237,286 from 280,088 in 2008. Dubai commercial real estate sector also deals with the fact that there is no central business district in this emirate unlike other property and real estate markets. Since the market is rapidly changing, most of the corporations and multinational companies are renting the offices rather than owing one.

Moreover, as the real estate sector is very un-precise, many landlords have now opted for signing short term leases. Companies have taken office space wherever they could afford over the past three years. With this a new pairing of space and businesses has been developed. In addition landlords are expected to implement various different strategies in order to keep their business in profitable terms. Various initiatives which the landlords might take include parking expansion, rent free periods, and long term contracts. These are some of the strategies which the landlords are expected to implement over the coming quarters in order to maintain their business levels.

Abu Dhabi Finance offering mortgages to Profile Group Properties

Abu Dhabi Finance is a new mortgage provider that is there to feed into the rising consumer demands for the housing finance. This has been set up in the capital and regulates the rising demands of the emirate. Abu Dhabi Finance has become a leading home finance provider. This finance provider has extended its horizon by signing a cooperation agreement with Profile Group Properties. This is one of the leading private developers and as per the agreement Abu Dhabi Finance offers mortgages of up to 85 percent.

The agreement covers various residential Abu Dhabi property developments in Marina Heights I & II and Reem Island. In Marina heights I there are about 234 apartments which come under Abu Dhabi Finance agreement, similarly there are 470 apartments in Marina Heights II. Both these properties are there within Marina Square. Moreover, these are the two properties that are most advanced in Reem Island and they are expected to get completed in the month of December 2009. The Chairman of Profile Group Properties, Raeid Al Yousif said: “We are delighted to be able to introduce our customers to Abu Dhabi Finance, which has quickly established itself as a pre-eminent provider of home financing options. Its dedication to delivering a quality service is second to none. Both new and existing customers will be able to take advantage of 85 per cent mortgages, with the wide range of customer-specified options that come from Abu Dhabi Finance.”

Profile Group Properties is the first company which started selling real estate to all nationalities in Abu Dhabi. The Chief Executive Officer of Abu Dhabi Finance, Philip Ward said: “Marina Heights is an excellent development, with some fantastic apartments coming onto the market by the end of this year. These apartments are perfectly suited to long term investors and owner occupiers alike. We are delighted to be able to partner with Profile Group Properties, extending our reach within Abu Dhabi.”

Ajman Tightens Land Regulations

The government has formed ARERA i.e. Ajman Real Estate Regulatory Agency to catch hold of the real estate sector in Ajman. It is somewhat similar to the one developed in Dubai (RERA) which looks after Dubai property market and all property related dealings etc. Ajman has started putting property and land regulations in order to streamline the growing property sector in the emirate. For all those developers who want to develop their properties in this emirate must register with ARERA. The Director of ARERA, Omar Al Barghouti said, “ARERA will work on organizing the real estate activities and will monitor the real estate sector's development in Ajman by setting up policies and legislations in the coming months.”

He further added that the agency is looking into the implementation of all policies and other property related issues. He said: “Ajman is part of this country. The UAE is closely connected to the global economy like other important players of the world and could be affected by the existing financial global crisis.” The impact of these financial crises is coming into picture in different parts of the world and at different levels. On the contrary he further said that UAE is moderately affected by such crisis.

Al Barghouti said “I expect that within six to nine months the global financial situation will be better.” He further added: “ARERA is drawing up policies for property projects and commercial buildings, recommending legislation as well as regulating relations between property developers and buyers, recommend speedy, out-of-court settlement of disputes that may arise between the two parties.” He recommended that all property developers and other real estate agents must obtain a trade license from ARERA. On this note he added: “ARERA will decide if a developer can also hold an estate agency's licence. This licence will be valid for one year and must be renewed each year. Our rules are not hard to achieve but those requirements are very important.”

ARRA Imposes Dhs 100,000 - Penalty for Non-Registered Developers

ARRA has been established by the government of Ajman in order to sort out and categorize the property sector in this emirate. It is somewhat similar to Real Estate Regulatory Authority (RERA) that handles and controls Dubai property sector just like ARRA will now control the Ajman real estate sector. To begin with, the organization has started the registration of all real estate developers. Recently, ARRA has started imposing penalty of Dhs 100,000 for non-registered developers in Ajman. According to Ajman Real Estate regulatory Agency, the developers who have failed to meet the deadline of 1st May are non-registered developers and they have been fined for that.

May 1st was the first deadline which was set by ARRA last month. The Director General of ARRA, Omar Al Barguthi said, “We have earlier stated this information in news reports and ads in both English and Arabic languages made public in various news papers that developers not registered with ARRA are required to immediately embark on the registration process before May 1st deadline ends. Earlier statements have also warned that necessary measures will be taken against violators.” He further added that they will surely consider the cases those who were prevented due to some genuine reasons to meet the 1st May deadline and they might be exempted from demurrage.

The ads for this has been released in some of the major newspapers stating that May 1st is the closing date for receiving applications for registration of property developers with this government organization of RERA.

Ajman to Announce Sales Price Index for Freehold Areas

Ajman is about to launch sales price index by this year end for certain freehold areas in the emirate. This planning of the emirate has been reported in Emirates Business and it will be done by the year end followed by a rent index later. A rent index will also be launched, but will be done at a later stage. The Director-General of Ajman Real Estate Regulatory Agency Omar Al Barguthi told to a newspaper “We are working on launching a sales price index for the emirate's freehold area by end of 2009. We do have a plan to launch rent index, but it will be done later”.

The first regulatory body in the UAE to announce the rent index was Dubai Real Estate Regulatory Authority (RERA). It was announced in the month of January. It was asked the agency that how the prices for specific areas could be determined. Al Barguthi said: "The prices of the properties will be determined on the basis of supply and demand. We will be monitoring the freehold areas to set the prices." ARRA has been established in January this year and with the help of this the emirates real estate sector will be monitored.

Matt Green, the Associate Director of CB Richard Ellis Middle East, said that there is a positive sign in creation of a price index in Ajman. ARRA released an index status reflecting the true market status so that landlords, investors and the end-user will be able to make well-informed decisions. The agency last week said that those developers who failed to meet the registration deadline will be fined Dh 100, 000 per month. According to Matt Green the transparency has been increased thereby, the flow of information in public is increased. The associate director further said: “We would expect this trend to continue with other emirates following suit as the year progresses and more regulations being passed that will further the evolution of the local property market.”

For Foreign Direct Investment - Dubai on Top in 2008

A special report has been published on Foreign Direct Investment (FDI) by the Financial Times. In this report it’s for the first time that Dubai has been classified as the top destination in the world. The likes of Shanghai and London are kept aside and Dubai has come up as a great destination city. Dubai’s position is now known, as the top destination city, it has attracted 342 projects and around 58,000 new jobs were created in the year 2008. A capital investment of $21bn has been made and for FDI, UAE once again has become the leading destination with 480 projects in hand.

The Governor of Dubai International Financial Centre and Vice Chairman of the Central Bank of the UAE, His Excellency Dr. Omar Bin Sulaiman commented on the report by saying that “The number of projects initiated, the capital investment and jobs created in the UAE are proof of the economic strength of the country." If we look at the complete Middle East, the sources shows that the total projects of 969 were assigned with the capital expenditure of $154bn. His Excellency Dr. Omar Bin Sulaiman said: “This report is a testament to the strategy of both the UAE and Dubai under the directives of HH Sheikh khlaifa bin Zayed Al Nahyan, President of the UAE and HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; a strategy of openness and diversification”.

All this is said to be a remarkable achievement by one of the well known emirates in the UAE, Dubai. He added that this achievement by Dubai of becoming the foremost city for foreign direct investment will be continued to demonstrate the benefit of investing in UAE and Dubai.

DUBAILAND property: A big boon to Real Estate in Dubai

A Dh235bn popular master property in Dubai, DUBAILAND is presently in talks with international technology allies to endow with a single-window access to all the attractions once completed, a top official believed. Dubailand is an element of the vision of the government to strengthen the tourism of the emirates and its travel industry, as a part of its plan for economic diversification. The project, launched by His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai in 2003, is intended at reinforcing the position of Dubai as a preferred tourism destination.

This project which holds a major part of Dubai real estate is expected to boost UAE tourism currently gripped by global crisis. Dubailand, which covers three billion square feet of land, will be double the size of the theme parks in Orlando, when completed. Among the Dubailand attractions, Global Village, Motor City, Dubai Sports City have delivered parts of the projects while hectic activities are going on at all major theme parks.

'We are hearing a lot of negative things about Dubailand, I think the initial problem with Dubailand was that the sub developers had no idea how to build theme parks,' Attala said. 'They had no idea what they were getting into. Building a theme park is not as simple as constructing a hotel’, held Claude Attala, Managing Director, Business Development, North Course, Middle East.

And despite the shortcomings, Dubailand is poised to be a huge attraction for the emirate. 'Dubailand will be a great indicator of where Dubai is going,' Attala said. 'It will be a bit of an embarrassment if they fail, but I don't think they will. I am a believer in the Dubai story. Once they put their mind to something it usually gets done.'

The Multiple-Entry Visa for UAE Property Owners Abolish Leasing Promises Made by UAE Realtors

Ajman and Dubai real estate developers promised residence visa to several foreigner property investors. However, this process was stopped last year. The real estate developers had these residence visas while endorsing 99 year lease agreement, which now stands nullified.

It was announced on 3-May’09, a foreign property owner can get multiple-entry visa and can renew it any number of times. This decree was applied all across the UAE and these visa woulss start getting issued from 1 June’09. The Ministry of Interior said “The multiple entry visas have a validity of six months. This means the expatriate property owner may stay in the country for six months maximum at a time. But it may be renewed or a fresh visa could be applied any number of times, if the necessary conditions are met", said Brigadier Nasser Al Awadhi Al Minhali, acting director-general of the Naturalisation and Residency Department. He was speaking at a press conference held to clarify the ruling, which stirred up public debate on its pros and cons. "After spending six months in the country, the investor must leave the UAE to return to his home country or any of the GCC countries for at least a month before he is eligible to apply for a fresh multiple entry visa”.

Also, Brig Al Minhali said “The visa costs Dh2,000 for processing. Additionally, the person must obtain health insurance for the duration of his stay in the country. Renewal also costs the same,”.

He said, while the property investor’s stay in the UAE, he/she can sponsor their immediate family which are the children and spouse. However, health is mandatory for all visitors.

Property Owners to Get Multiple Entry Visas to UAE, From June 1

As announced on Monday, UAE would issue multiple entry visas to expat property owners who would meet the eligibility criteria. With the lack of federal regulation, there have been different real estate regulations in each emirate. It’s not only the Dubai real estate sector, but also other real estate sectors in other emirates in the UAE would have standardized law. Therefore, to better regulate the law, the Interior Minister has proposed a regulation which includes six-month entry to expat property owners.

Acting Director-General of Naturalization and Residency Department, Brigadier Nasser Al Awadhi Al Minhali, spoke at a press conference “"The multiple entry visas for expatriate property owners will be issued from June 1, based on the conditions stipulated by the ministerial decree issued on May 2." Also, according to Brigadier Nasser Al Awadhi Al Minhali the decree would apply to all emirates which would stimulate the economy and standardize the rules.

As mentioned earlier the expat property owner would need to fulfill certain requirements to obtain the multiple-entry visa. These rules include:

• The property should be worth at least Dh 1million
• It should be wholly owned by the investor
• The property should be ready to move in
• The villa or the apartment should be appropriate to accommodate the investor’s family
• The investor’s income should be not less than Dh 10,000 or equivalent to any other country’s currency.

To get the visa, the investor needs to procure the property title from the registration authority of the respective emirate. This visa can only be renewed if the property owner can been out of UAE for at least a month.

Dubai Real Estate Project Ocean Heights Touches 50th Floor

Damac Properties announces its flagship project, Ocean Heights in Dubai Marina, reach 50th floor. This property in Dubai would ultimately have 84 floors is being completed at the rate of a floor a week. Damac Properties is renowned for offering opulent lifestyle provider therefore Ocean Heights hosts state-of-the-art facilities and set to be the tallest building in Dubai Marina.

Mr. Hussain Sajwani, the Founder and Chairman of Damac Properties paid a visit to the construction site and acknowledge the hard work of his team. He said “This is a significant day for Ocean Heights and also for Damac Properties. At a time when all the talk is of construction slowing down and projects being cancelled we are pleased to announce that we are going full steam ahead on Ocean Heights. I would like to commend all the contractors & people involved for such an impressive performance.” He added “Ocean Heights is already starting to make an impressive appearance on the skyline at Dubai Marina and people driving past can see its twisting appearance taking shape. Once it is completed I have no doubt that it will be seen as one of the flagship properties in the area and will live up to the high hopes and expectations that we have for it”.

Ocean Heights is expected to be completed by 2010 and would handover 7100 units in the coming two years. This property has been completed well within three years and would offers outstanding facilities. This property would offer panoramic views of the Palm and Marina. The property hosts an array of facilities like gym, sauna, steam room and more.

Residential Dubai Property Prices Fall by 41% In the First Quarter

As said by a property consultant, Colliers International, the residential prices in Dubai has fallen by 41 percent, in the first quarter of 2009. This fall was backed by the decline in the mortgage and cash transactions. Due to the global financial crisis, banks discouraged lending. Therefore speculator have left the market. The level of correction stands at 34 percent.

The plunge in prices has wiped away two years of profits from property values. Colliers have also reported 8 percent fall in residential prices during the period October and December, which was the first quarter fall since the real estate boom began in Dubai. As per the data collected by Colliers, the areas responsible for the boom in Dubai real estate sector, is the one which was permitted to be bought by foreigners. Since 2002, the Dubai property market was open to the non-Emiratis.

Colliers Chief Operating Officer, John Davis said “We will see a further potential decrease in pricing, but it won’t see the same drastic fall that we have seen in the first quarter”.

A new industry study revealed, despite the correction in real estate prices, Dubai owns the most expensive residential properties in February amongst the 34 countries surveyed. In the list of hosting the most expensive properties Dubai is followed by Singapore, Moscow and Hong Kong.

Dubai Mall Flags Off Its Biggest Shopping Extravaganza, Today

The Dubai Mall hosts its biggest shopping festival today. Nine hundred retailers have participated in this giving away cash prizes from raffle draws which are conducted daily as well as weekly. Its not only raffle draws , but the shoppers can be swiped away with Bentley cars, several gift vouchers as well as ‘Bid to win’ auctions starting at Dh1. The shopping festival will have five lucky winners from the raffle draws. These lucky people would walk away with Dh10,000 each. To get these raffle coupons the customers would have to spend only Dh500 at any retail outlet within a month.

The excitement continues with the distinctive ‘Bid to win’ auction, where the visitors would take part to bid on a huge range on products which starts at Dh1. This shopping festival also offers a Grand Bentley Raffle. 5,000 tickets at Dh200 each would be drawn to give away the luxurious Bentley Continental Flying Spur.

On Saturday a weekly draw would be conducted for Dh10,000. Also, if at the time of the draw if the winner is present in the mall, he or she would win additional Dh50,000. Several entertainment activities would be hosted all around the mall. Its not only the Dubai property market but also the exclusive shopping festivals are a major attraction for people from all over the world.

Nasser Rafi, Chief Executive Officer, Emaar Malls Group, said “With 900 retail outlets already open, The Dubai Mall has the highest concentration of the world’s most leading retail brands in a single mall. The festival is therefore unsurpassed globally in terms of retailer participation within a mall environment. Retailers in the mall have extended their full support to the festival, which is organised with the Dubai Shopping Festival Office as the Strategic Partner.”

David Reily, CEO Middle East, RSH, said that all of the company’s stores in the mall will have “cross-store offers” during the Festival with gift vouchers to be presented to customers.

Dubai Govt To Meet All Contractual Obligations

All its obligations based on contracts including its contractors will be met by the Government of Dubai but also, it has no clue that how companies that had received an aid from state would utilize those funds. This statement evolved as a result of a misleading report that got published on April 24, 2009, in MEED magazine.

The head of the Department of Finance, Dubai, Nasser Al Shaikh, mentioned last week that the names of the firms that have received support from the first bond proceeds will not be revealed by Dubai government, although the input beneficiaries were Dubai real estate companies in which some ownership stake is owned by the Dubai government.

"The government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," the government said. "It wishes to clarify that those companies that have received funding via the recently set up Financial Support Fund received such funds on strictly commercial terms, and that the utilization of such funds remains at the sole discretion of individual companies."

Dubai Government will not limit the number of construction firms licensed to operate in the emirate. London-based MEED reported in its latest issue that contractors who are to be paid money would not be paid for work they have carried out on Dubai government-backed schemes, as the emirate will only clear debts with contractors it wishes to work with in future.

"The Government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," it said in a statement.

Emaar’s Residential Properties in Morocco has Shown a Good Response

Dubai real estate firm, Emaar properties has a Morocco subsidiary known as Emaar Morocco, currently involved in a great residential project. The smooth construction of Aldea villas and townhouses in Tinja is going on. Tinja is located near the city of Tangiers and the forest land is in close proximity to the place. This residential development has added a new life to this place and the foundation work is currently under progress. The first phase of the project is scheduled to be completed in the year 2010.

Emaar Morocco is one of the largest foreign direct investors. The CEO of Emaar Morocco, Mr Yves Delmar said: “Tinja is introducing a new lifestyle choice to Tangiers with an integrated community featuring two hotels, and a vibrant town centre with retail outlets. More than 950,000 cubic meters of earthwork has been accomplished on the project and infrastructure work on the first phase is progressing." Managing Director of Emaar International, Mr Issam Galadari said: “Tinja is envisaged as year-round leisure and tourist destination that will further tap into the booming tourism sector of the Kingdom. Emaar leverages on the picturesque location of the project along the Atlantic Ocean coast to create a self-sustained neighborhood, which will strengthen the Moroccan economy.

This property project of Tinja was developed by Emaar Properties and is one of the three master-planned communities. These Tinja homes comprises of townhouse, villas and apartments and six distinctive communities form Tinja. The first phase of this development has strongly opened with great investment opportunities. Emaar Morocco is constantly developing other mixed use world class projects and engaged in developing world class residential communities. This company today has its presence globally in 36 markets and it is not limiting itself to villas, townhouses and apartments, but is also engaging in healthcare, finance hospitality, education and in other global sectors as well.