Week 15 - Asteco Property Management · SAUDI ARABIA'S UMM AL QURA TO BUILD HILTON HOTELS FOR MAKKAH PILGRIMS DUBAI ... $1.36BN JUBAIL ISLAND SANCTUARY PROJECT UNVEILED IN ABU DHABI

Week 15 SUNDAY, 14 APRIL 2019

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

© Asteco Property Management | 2019 | asteco.com

34+ YEARS IN THE MIDDLE EAST

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ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

UAE'S PROPERTY FINDER INKS DEAL TO ACQUIRE RIVAL IN EXPANSION PUSH

UAE’S BAYUT ACQUIRES REAL ESTATE PORTAL LAMUDI

SAUDI ARABIA LAUNCHES HOUSING INDEXES TO SHOW RENTAL PRICES

BAHRAIN SWF'S PROPERTY ARM TO BUY 36% IN CAR PARKS FIRM

MEA REGION DRAWS INVESTMENT FROM INTERNATIONAL HOSPITALITY BRANDS

REVEALED: WHO OPERATES THE MOST HOTEL ROOMS IN THE MIDDLE EAST

UAE REAL ESTATE OFFERS ONE OF THE BEST RETURNS

BUYING PROPERTY WITH POST-HANDOVER PAYMENT PLAN IN UAE? WHAT OVERSEAS

BUYERS NEED TO KNOW

BRINGING MODULAR CONSTRUCTION TO THE UAE

HOMEFRONT: 'WHAT'S THE QUICKEST WAY TO RECLAIM MY PROPERTY AFTER THE

TENANT ABSCONDED?'

RIYADH SET TO SEE GULF'S STEEPEST CONSTRUCTION COST INFLATION IN 2019

TRENDY MAKEOVER FOR SAUDI ARABIA'S DELAYED BANKING HUB

SAUDI ARABIA'S UMM AL QURA TO BUILD HILTON HOTELS FOR MAKKAH PILGRIMS

DUBAI

EMAAR EXPECTED TO DELIVER ELIE SAAB TOWER BY MAY 2023

KLEINDIENST POSTS RECORD $93M SALES IN DUBAI'S HEART OF EUROPE

OLIVIER HARNISCH STEPS DOWN AS EMAAR HOSPITALITY CEO

COWORKING INDUSTRY OPENS OPPORTUNITIES FOR LANDLORDS

HOTEL DISCOUNTS IN DUBAI WILL 'NEVER PAY OFF', SAYS ACCOR CEO

DXB ENTERTAINMENTS REPORTS DROP IN Q1 VISITORS BUT LOOKS TO HOSPITALITY

FOR GROWTH

DUBAI FDI SURGE MAKES IT TOP MENA FOREIGN INVESTMENT DESTINATION

DUBAI’S NON-OIL BUSINESS ACTIVITY RAMPS UP IN MARCH




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REAL ESTATE NEWS LA RIVE HOMES IN DUBAI SELL OUT AHEAD OF OFFICIAL LAUNCH

DEVELOPERS SAID TO RESTART DUBAI OFFICE PROJECTS AS EXPO 2020 LOOMS

PAPERLESS TRANSACTIONS WHEN YOU MOVE HOME

WHERE PROPERTY PRICES, RENTS ARE FALLING FASTEST IN DUBAI

CHINA UNVEILS DESIGN FOR DUBAI EXPO 2020 PAVILION

OPINION: DUBAI'S HOSPITALITY INDUSTRY MUST ADAPT AND EVOLVE

DUBAI’S ‘BUY NOW, MOVE IN AND PAY LATER’ MANTRA IS WORKING

ABU DHABI

$1.36BN JUBAIL ISLAND SANCTUARY PROJECT UNVEILED IN ABU DHABI

NOVEL OFFERINGS AT CITYSCAPE ABU DHABI

ABU DHABI FUND FOR DEVELOPMENT FINANCES 78 PROJECTS

ALDAR TO BUILD NEW WATERFRONT SCHEME ON YAS ISLAND

EXECUTIVE TRAVEL: PEARL ROTANA CAPITAL CENTRE IS JUST THAT - A PEARL

IS AFFORDABLE LUXURY THE ANSWER FOR ABU DHABI'S PROPERTY MARKET?

AL AIN ZOO PLANS MAJOR PROJECTS IN TOURISM PUSH

NORTHERN EMIRATES

LANDMARK GROUP TO OPEN NEW OASIS MALL IN SHARJAH

RAS AL KHAIMAH RULER LAUNCHES CONTEST TO CREATE 'UNIQUE' RESORT

INTERNATIONAL

INDIA'S SAMANA GLOBAL SERVICES LOOKS TO EXPAND RETAIL OPERATIONS IN GULF

REGION

UAE RETAIL GIANT EYES NIGERIA TO SET UP LOGISTICS HUB

ROUBINI: SEVEN REASONS WHY THE GLOBAL ECONOMY COULD IMPROVE THIS YEAR




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REAL ESTATE NEWS UK INVESTMENT FIRM SAYS UAE BUYERS UNFAZED BY BREXIT

HOTEL DEMAND OUTPACING SUPPLY IN INDIA, STUDY SHOWS

UAE'S DAMAC SECURES £175 MILLION IN BANK FINANCE FOR VERSACE BRANDED

TOWER IN LONDON




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UAE'S PROPERTY FINDER INKS DEAL TO

ACQUIRE RIVAL IN EXPANSION PUSH Monday, April 08, 2019

UAE-based real estate classifieds website Property Finder has signed an agreement to acquire its competitor JRD

Group, owner of property portal Justproperty.com and Propspace.

This acquisition happens only a few months after the investment by General Atlantic in Property Finder and is in

line with its strategy to expand the brand in the UAE, a statement said.

As part of the acquisition, iMENA Group will fully exit its investment in JRD Group.

Michael Lahyani, founder and CEO of Property Finder, said: “Property Finder and JRD Group share the same

consumer-centric philosophy and vision of further professionalising the real estate market.

"The integration of our products and additional investment in JustProperty.com will provide consumers with

better insights to support them in taking property buying or renting decisions.”

Alex Nicholas and Siddharth Singh, JRD Group founders, will stay on board and become shareholders of Property

Finder, the statement added.

"We are super excited about this opportunity to enable JRD Group to develop its enterprise software products

and property portals further and reach a much larger audience through the Property Finder Group network,” said

Nicholas, co-founder and CEO of JRD Group.

The deal comes a week after Property Finder announced increasing its stake in Zingat, the second largest

property portal in Turkey, to close to 40 percent.

Source: Arabian Business

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UAE’S BAYUT ACQUIRES REAL ESTATE

PORTAL LAMUDI Tuesday, April 09, 2019

UAE property listings and research company Bayut acquired Lamudi, a rival portal owned by Middle East Internet

Group, for an undisclosed sum. Bayut also plans to launch its expanded operations in Saudi Arabia “very shortly”.

“With a network of sites operating in the region, we are very well placed to maximise consumers’ reach and

clients’ exposure across a broader region,” said Haider Khan, founder and chief executive of Bayut.

Middle East Internet, formed by venture capital company Rocket Internet, has launched various e-commerce

ventures in the region including online shopping website Wadi.com.

The company launched Lamudi.sa as the first real estate portal in Saudi Arabia in 2012, followed by Lamudi.jo in

Jordan. The UAE version Lamudi.ae went live in 2015. Under the deal, Bayut will take ownership of all of Lamudi’s

assets in the GCC.

The acquisition of Lamudi Middle East provides “the ideal platform for Bayut to expand its footprint in the GCC”,

especially in the kingdom – the Arab world's biggest economy.

“Bayut has always focused on providing the most locally-tuned solution to the market and the intention behind

this acquisition is to take that philosophy to the greater GCC region, with a focus on Saudi Arabia,” Mr Khan

added.

The acquisition comes after Bayut’s parent company Emerging Markets Property Group (EMPG) closed a $100

million investment round in February – its largest fundraising round following a $50m round last year.

In addition to Bayut, EMPG owns and operates Zameen.com in Pakistan, Bproperty.com in Bangladesh and

Mubawab.ma in Morocco.

The Bayut and Lumadi deal comes amid rising mergers and acquisitions activity among the UAE’s real estate

portals. On Monday, Dubai-based Property Finder announced it will buy rival platform JRD Group for an

undisclosed sum. Property Finder also increased its stake in Zingat – the second largest property portal in Turkey

– to almost 40 per cent earlier this month.

Source: The National

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SAUDI ARABIA LAUNCHES HOUSING

INDEXES TO SHOW RENTAL PRICES Sunday, April 07, 2019

Saudi Arabia’s Ministry of Housing has launched indexes showing the rental price of homes in different areas,

according to media reports.

The ‘Ejar’ system aims to regulate the relationship between tenants, landlords and real estate brokers. The

indexes will also allow the public to view and compare rental prices.

Saif Al-Suwailim, a spokesperson for the Ministry of Housing, told Saudi Gazette that the indexes are designed to

help regulate the rental sector and encourage people to invest, as well as protect the rights of all parties involved.

Approximately 500,000 residential units have registered on the platform since its launch in February along with

12,000 real estate brokers.

The Ministry had previously said that it was planning to register 2.5 million of the 6.5 million residential units

available in Saudi Arabia.

There are currently 900,000 vacant residential units in the kingdom. Of the total number of units, 3.5 million are

taken by Saudi Citizens and 2.5 million are taken by expatriates.


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BAHRAIN SWF'S PROPERTY ARM TO BUY

36% IN CAR PARKS FIRM Tuesday, April 09, 2019

Bahrain Real Estate Investment Company (Edamah), the property arm of the kingdom's sovereign wealth fund, is

acquiring 36.6 percent of shares in the Bahrain Car Parks Company, a publicly-listed company on the Bahrain

Bourse.

Bahrain Car Parks Company, which specialises in the construction, development and management of parking lots,

will sell the stake subject to regulatory approvals.

The acquisition comes as part of its long-term strategy to develop new projects, renovate previous projects, and

manage them to global standards, Edamah said in a statement.

“This marks a pivotal moment and will contribute to improving the level of services offered in the kingdom. We

also look forward to establishing partnerships with entities in the private sector in the future in order to further

develop the facilities available to the public,” said CEO Amin Alarrayed.

“Investing in Bahrain Car Parks Company reiterates our commitment to manage a diverse business portfolio while

achieving our mission of developing a robust real estate portfolio, which further cements our reputation as one of

the leading property developers in the kingdom,” he added.

Edamah said it has worked on major investment projects in the tourism, leisure and industrial sectors, such as the

Bilaj Al Jazayer development, the Sa'ada development, and the carpark building at Salmaniya Medical Complex.


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MEA REGION DRAWS INVESTMENT FROM

INTERNATIONAL HOSPITALITY BRANDS Monday, April 08, 2019

The Middle East and Africa (MEA) region will continue to present opportunities for global hospitality companies,

with both Marriott International and Hilton announcing plans to expand their hotel portfolios in the region over

the next few years.

Marriott International, on Monday, revealed that it expects to add 19 new properties and more than 3,000 rooms

to its MEA portfolio in 2019. This is in line with the company's expansion plans to add more than 100 new

properties and nearly 26,000 rooms across the region by the end of 2023. Marriott estimates its development

pipeline through 2023 represents up to $8 billion of investment from property owners and is expected to

generate over 20,000 new jobs across the region.

"Our growth across the Middle East and Africa is fuelled by a strong demand for our diverse range of well-

established brands, each offering different attributes that cater to this region's ever changing and evolving

marketplace," said Jerome Briet, chief development officer, Middle East & Africa, Marriott International. "This

region continues to present us with opportunities to further grow and enhance our portfolio across new and

established markets. While the majority of our growth will be through new-builds, we are seeing an increasing

number of conversion opportunities, especially in the luxury space."

Year-to-date, the company has opened five new properties in the region and is expected to add 14 more -

bringing its portfolio across the Middle East and Africa to nearly 270 properties and over 60,000 rooms - by the

end of the year.

Meanwhile, Hilton has announced that it expects to open almost 100 hotels in the region in the next five years,

mainly in the UAE, Saudi Arabia, Kuwait, Bahrain, Morocco, and Egypt, equating to a $9 billion investment by

Hilton's development partners. This will see the company almost double in size in the UAE, and quadruple in size

in Saudi Arabia throughout the next five years, bringing Hilton's portfolio to almost 50 hotels in each of these key

markets.

Patrick Fitzgibbon, senior vice president of Development EMEA at Hilton, said: "As Hilton enters its 100th year, we

have almost 30,000 rooms in our Middle East and North Africa (Mena) pipeline and have recently announced

deals that will see us introduce our lifestyle brand Canopy by Hilton to KSA, as well as Embassy Suites by Hilton to

the region. The addition of 100 hotels will create genuine value for the economy with some 25,000 new jobs

across these hotels as they open in the coming years."

Hilton has seen significant demand in the Mena region for its mid-market brands, including Hilton Garden Inn and

Hampton by Hilton, with 25 hotels representing these two brands in its existing development pipeline. In addition

to this, Hilton will open a Waldorf Astoria in Dubai later this year, and will continue to grow its strong presence in

Ras Al Khaimah with three new properties in its pipeline for the emirate. Hilton currently operates 64 hotels

across the Mena region and expects to see continued demand for its brands.

Source: Khaleej Times

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REVEALED: WHO OPERATES THE MOST

HOTEL ROOMS IN THE MIDDLE EAST Monday, April 08, 2019

Accor and Marriott International maintain the top room counts among parent companies operating in the Middle

East, according to STR.

Figures released ahead of this week’s Arabian Hotel Investment Conference (AHIC) in Ras Al Khaimah reveal that

Accor (34,327 hotel rooms) and Marriott International (33,757) were the only two companies with at least 30,000

rooms in the region as of the end of February.

Using that same date, the two largest brands in the Middle East are Millennium Hotels and Resorts (8,852) and

Mövenpick Hotels & Resorts (8,454), which is owned by Accor.

“Supply remains a hot topic in the Middle East when looking at both the recent impact on performance as well as

how much new inventory continues to be developed as part of ‘mega events’ and economic initiatives,” said Philip

Wooller, STR’s area director for the Middle East & Africa.

“The growing presence of so many major global companies and brands speaks to the importance of the Middle

East as developers identify growth opportunities in this sector of real estate. The region will certainly be key on

the global development landscape for years to come.”


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UAE REAL ESTATE OFFERS ONE OF THE

BEST RETURNS Saturday, April 13, 2019

Abu Dhabi and Dubai offer one of the best rental returns as both the emirates are ranked among the world's top-

10 cities where investments in property can get handsome gains.

According to real estate consultancy CBRE, properties in Abu Dhabi can get investors higher average returns than

Hong Kong, London, Singapore, Los Angeles, Jeddah, Dublin and other cities.

Latest data disclosed that New York offers highest average monthly return of $2,844 (Dh10,437) to investors

followed by $2,807 in Abu Dhabi, $2,777 in Hong Kong, 2,399 in Jeddah and $2,389 in London.

While the other five cities for highest rentals returns include Los Angeles ($2,312), Dublin ($2,226), Riyadh ($2,199),

Dubai ($2,044) and Singapore ($1,935).

Importantly, none of the two emirates made it to the list of top-10 cities with highest value locations but both

Dubai and Abu Dhabi are ranked second and ninth in terms of highest average rental returns.

As per CBRE estimates, average property price in Dubai and Abu Dhabi are $408,065 and $404,926, respectively,

much lower than most of the top global financial centres.

Since property prices have been consistently declining in Dubai and Abu Dhabi over the last few years, investment

in the two emirates' real estate markets makes a very strong proposition.

A recent report by Knight Frank had said that prime residential property in Dubai is more economical than New

York, London, Hong Kong, Paris, Geneva, Tokyo and Mumbai, among others.

The report disclosed that $1 million can buy 138 square metres of prime residential property in Dubai as

compared to 25sqm in New York, 28sqm in London, 39sqm in Singapore, 41sqm in Geneva, 46sqm in Paris,

58sqm in Los Angeles, 76sqm in Tokyo and 92sqm in Mumbai. It also identified Monaco as the most expensive

city in the world where $1 million can buy only 16sqm of prime residential space.

The CBRE report stated that Hong Kong was the most expensive market with average property price of $1.23

million followed by Singapore, Shanghai, Vancouver, Shenzhen, Los Angeles, New York, London, Beijing and Paris.

Sapna Jatiani, primary credit analyst at S&P Global Ratings, recently said the property in Dubai are close to

reaching their 2009-10 lows.

"After peaking in the second-half of 2014, Dubai residential property prices have been declining over the past few

years and are approaching levels last seen at the nadir of the 2009-2010 property crash," she said.

Dubai's strong population growth and investor appeal have fuelled a construction boom, with 24,000 new

residential units completed on average per annum over the past decade. "As Dubai gears up to host Expo 2020,

all sectors of Dubai's economy are likely to see some benefit, including real estate. This will be tempered by the

high levels of new supply expected to be delivered over the next two years," said Mark Collins, chairman of

residential segment at CBRE.

"The world's greatest cities continue to transform to encourage innovation, increase their working and living

populations and create new commercial opportunities for businesses," said Jennet Siebrits, head of residential

research at CBRE UK.




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The fifth edition of CBRE's "Global Living Report" expanded the number of cities examined in the report from 29

to 35.

Sunil P. Gomes, CEO of Gemini Property Developers, said Dubai and the UAE are still the best markets for rental

returns that average from five to eight per cent per annum, depending on the location. "These are some of the

highest rental returns one could count on. Although rents are currently on the decline, the 5-8 per cent range is

still one of the highest in the world. In most matured markets, rental returns are at best 2-3 per cent," he said.

"This is one of the reasons why Dubai and Abu Dhabi will remain the two best destinations for property

investment and that explains why people are still investing in properties in the UAE," Gomes concluded.


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BUYING PROPERTY WITH POST-HANDOVER

PAYMENT PLAN IN UAE? WHAT OVERSEAS

BUYERS NEED TO KNOW Tuesday, April 09, 2019

While generous post-handover payment plans of up to ten years from real estate developers have provided an

important resource for many residents who had been priced out of Dubai’s property market, these schemes have

also opened an avenue for overseas buyers to consider investing in Dubai real estate.

“The post-handover plans are best suited for both end users and overseas investors as the buyers don’t have to

put all the money at once, which gives them the leverage to buy a bigger property as the payment is spread for a

few years,” says Riyaz Merchant, CEO of Realty Force.

With property prices at their most affordable, combined with sweet deals from developers, it is definitely the best

time to consider property investment options in Dubai.

“For the investor, a post-handover plan becomes a compulsory saving, as part of the rent is used to cover the

purchase price,” says Merchant. “So the buyer ends up saving seven per cent of the principle purchase [price]

depending on the length of the post-handover plan offered by the developer. For example, if it was a three-year

post-handover plan, you would have saved an average of 21 per cent of the price, considering that a residential

property offers a 7 per cent annualised return.”

However, when an overseas investor buys a unit with a post-handover plan, there are several factors to consider.

Mario Volpi, sales and leasing manager of Engel & Volkers, says payment options for off-plan and ready properties

differ significantly from developer to developer.

“When an overseas investor doesn’t have a local bank account, this can prove to be especially difficult to buy a

ready property direct from the developer,” says Volpi.

“In the current market, some developers require a much larger initial down payment and then allow the buyer to

pay via bank transfer for the remaining stage payments, while others insist on one security cheque covering the

full amount. However, if the overseas buyer can pay in cash and does not avail [himself of] the payment plan,

attractive discounts are offered by developers in return for receiving all the sales money in one go.”

Cheque requirement

Developers typically require post-dated cheques to secure each instalment of the purchase price, says Aruna

Mukherji, real estate associate at Al Tamimi & Company.

“The developer encashes the relevant post-dated cheque when that payment comes due, which is not always

viable for overseas buyers,” says Mukherji. “Moreover, such property purchases are typically registered in the

deferred sales register of the Dubai Land Department.”

However, there are developers who do not require post-dated cheques until handover, points out Philip Sequeira,

head of property regulatory at Hadef and Partners. This can create problems during handover when buyers are

unaware of this requirement.




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“If the terms of the SPA cannot be complied with, then the buyer may be in default, and they may not be able to

obtain a mortgage very easily to remedy that default,” says Sequeira.

Bank finance

Some developers have tied up with UAE banks to provide finance to non-residents. Sequeira says, “This happens

only if the country where the investor resides is on the bank’s approved list of countries or if they meet certain

requirements of the bank. Also, developers might sell down their revenue stream on the remaining payments

post-handover at a discount, so they push the default risk onto the bank.”

Leasing the unit

When an overseas buyer invests in Dubai property, seeking legal advice on the terms of the sale and purchase

agreement can prove beneficial. “It is not uncommon for a developer to restrict the buyer from leasing the

property to a third party,” says Mukherji. “Consideration should also be given to whether the overseas buyer’s

tenant can register the lease with Rera on Ejari, so long as a no-objection certificate is obtained from the

developer. This is because a title deed will not be issued in the overseas buyer’s name until the last instalment of

the purchase price is completed.”

For overseas buyers who do not have a UAE bank account or cheque facility, Sequeira warns they might find it

difficult to rent the property out or manage it without the assistance of a property management company.

Wire transfers

Given the inability of overseas buyers to issue post-dated cheques, Mukherji says certain wire transfer facilities

are available. “Commercial arrangements are done whereby the developer permits the overseas buyer to wire

transfer the payment instalments to the developer’s bank account,” she says.

Some of the commonly used means of securing the payment from the buyer, according to Mukherji, are personal

guarantee and a large upfront payment. In a personal guarantee, the developer could consider obtaining a

personal guarantee from a UAE resident on behalf of the overseas buyer and also require the UAE resident to

provide post-dated cheques in the event of default committed by the overseas buyer. The developer could

consider securing a larger upfront payment, as then buyers would be more reluctant to default because of the

substantial amount already paid to the developer.

Termination law

When a buyer defaults on payments, Sequeira says the developer could terminate the sale without the need of a

court order, as per Dubai’s new termination laws for off-plan property.

“Some developers have a reputation for being lenient and understanding in respect of default, but others also

have a reputation for not being so understanding,” says Sequeira. “The investor must bear in mind that he does

not get the title deed until the property is fully paid. Therefore, the developer generally has the upper hand

because the property is difficult to deal with without the approval of the developer, and the developer doesn’t

have to look far to find an asset to enforce its rights.”

Source: Gulf News

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BRINGING MODULAR CONSTRUCTION TO

THE UAE Tuesday, April 09, 2019

Rapid urbanisation is creating the need to build real estate projects faster and in a more efficient manner all

across the globe. The demand in the UAE is no different. As its population grows, there is a shift in the real estate

industry towards modular construction methods.

“The need for speed and scalability is driving the demand for modular construction methods that do not

compromise quality and need lower manpower resources,” says Chebel Bsaibes, chairman of Amana Group and

founder of DuBox. “In the UAE and neighbouring countries, there is a massive need for housing units in short

delivery time.” Winner in the Business Innovation category at the 2019 Mohammad Bin Rashid Al Maktoum (MRM)

Business Award, DuBox designs and delivers single or multistorey concrete buildings, using modular

methodologies. It shifts 85 per cent of the construction activities off-site and is the first company in the Middle

East and North Africa to apply off-site modular manufacturing methods to concrete construction projects.

In an interview, Bsaibes tells Property Weekly how the whole process works.

How does modular design and off-site concrete construction help?

Modular design is a construction methodology by which the building is subdivided into smaller units called

modules. Each module is designed and fully manufactured off-site in a factory; modules in various stages of

completion will form a production line by which each module will progress from assembly up to complete fit-out.

Finished modules will be shipped to the site and joined together at the site, in a Lego look-alike process to form

the complete building. To shrink the project delivery timeline, activities are performed in parallel.

The building modules of all floors are simultaneously manufactured off-site in a controlled factory environment.

The site infrastructure activities are constructed in parallel. This protocol shrinks the project delivery timeline.

Globally, off-site, light-weight modular manufacturing has been active for the last two decades, by utilising steel

framing and hollow wall construction. DuBox introduced precast concrete panels to replace steel framing places,

which is a 100 per cent UAE innovation.

The factory process will often involve people specialising in one specific area to a very high standard, leading to a

better quality of product.

What type of project is right for this method?

Concrete modular off-site manufacturing and construction project delivery system is adaptable to any project, be

it residential, commercial, educational or health care. However, complex shapes, round and curved structural

surfaces are not favoured.

What projects have you done or are currently developing?

Presently, DuBox has Dh1 billion worth of projects executed. Al Wasl Gate, a 257-villa project, is the latest of a

series of projects that DuBox designed in modular and manufactured off-site.

What are the benefits of building off-site?

By shifting 85 per cent of construction activities from the site and bringing it into the factory, we have faster

finished products, hence reduced project duration. There is a 30 per cent reduction in construction manhours due




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to improved productivity. Modules also have a higher life expectancy (50 years) than conventional construction

(20 years).

Source: Gulf News

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HOMEFRONT: 'WHAT'S THE QUICKEST WAY

TO RECLAIM MY PROPERTY AFTER THE

TENANT ABSCONDED?' Wednesday, April 10, 2019

I am the owner and landlord of an apartment in Jumeirah Lakes Towers and I have an agent in place that

manages the lease. My tenant pays in quarterly cheques and his last two have bounced. We filed a police report

on one of these and received the case number. In early February, the tenant emailed me stating he is out of the

country and will not be renewing the contract, which is due for renewal end of May. He said he would return at

the end of February to hand over the apartment. However, this was the last contact I had with him and we cannot

get in touch with him at all. He will not respond to emails and it appears his phone is off. I checked with his

employer and they said he left on bad terms. I also checked with the building management company and they

said there is no longer a car in the parking space and he no longer uses his access cards. I truly believe he has

absconded. Maybe he tried to return and was stopped at the airport because of the police case. We are now

proceeding with an eviction notice and then eviction. My query: is it really necessary to go this route as it’s very

costly and time consuming. Can I simply wait until the end of May, when the property is due for renewal, and take

back possession then? Is his email enough for us to do this rather than going down the long legal route when he

has already said he won’t renew and has already left Dubai? ND, Dubai

I accept that in some cases evicting a non-paying tenant can take a long time, especially as there are procedures

to follow in order to legally effect the eviction. In your case, however, it would appear relatively straightforward.

You have a written communication from the tenant stating he will not be renewing his lease; his ex-employer

states that he has left on bad terms and he doesn't respond to further emails. The information from the building

management also indicates to me that it would be best to wait it out, as you suggested, and simply remarket the

property for rent to a new tenant after the end of May.

The whole legal process to legalise the eviction may take a few months to be concluded. By that point, it will most

likely be the same time as the end of the tenancy contract anyway.

What is the correct protocol when it comes to having work done on my house. I am having a minor extension and

some renovation work carried out on my villa and as it is a terraced property, I have neighbours on either side.

How much warning do I have to give that the work will be carried out? One neighbour gets a little irate if I even try

to bang a nail in the wall, so I am concerned as to how this process will be managed as the work will take at least

three weeks and there will be some noise. MM, Dubai

I assume you are the owner of the property, therefore you will not need to confer with any landlord. The subject

of noise is very emotive and one that often causes neighbours to fall out. I also have to assume you already have

developer or municipality written permission for the extension works to be carried out.

The key to peace and harmony when carrying out repairs for works to a property is to let your neighbours know

(in advance) what is going to happen and for how long and perhaps to apologise in advance for any nuisance

caused. Obviously, it is not your intention to cause any problems but you should show your neighbours that you

will do everything possible to minimise any disruption. With this kind of approach, I believe you will have no issues




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with them even if there will be loud building work noise. Keeping your neighbours updated with progress will also

help in this regard.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years

in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information

only.


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RIYADH SET TO SEE GULF'S STEEPEST

CONSTRUCTION COST INFLATION IN 2019 Saturday, April 13, 2019

The cost of construction in the Middle East is set to pick up in 2019 after a period of stagnation, according to new

research.

Global professional services firm Turner & Townsend said improving commodity prices will shore up fresh

investment and development activity in the region.

Its International Construction Market Survey 2019 revealed that the previously stagnant construction markets of

Muscat and Riyadh are showing signs of awakening due to improved oil revenues and economic diversification

programmes.

It added that the price of construction in the UAE will rise 2 percent this year, up from 1.5 percent during 2018.

The report noted that market confidence in the UAE is being buoyed by significant projects in Dubai and large-

scale infrastructure investment in Abu Dhabi.

It added that Riyadh is expected to see the greatest construction cost inflation in the Middle East in 2019 at 5

percent – outstripping the average global construction cost inflation of 4.1 percent forecast for this year.

This comes as a number of major, mixed-use projects start on site, including Al Widyan, supported by ongoing

works to King Abdulla Financial District and coupled with the recent government stimulus package to develop the

entertainment sector.

The cost of building in the Middle East is still lagging considerably behind other key locations in the global

rankings. After a 1 percent fall in construction prices during 2018, Muscat sits 44th in the league table, with an

average cost of construction equivalent to just a third of that in New York City.

Globally, San Francisco has overtaken New York as the most expensive city in which to build worldwide, followed

by London, Zurich and Hong Kong.

Overall, two-thirds of the markets surveyed by Turner & Townsend reported a labour skills shortage, but the

muted levels of construction demand in the Middle East in recent years means the crisis isn’t yet being felt as

acutely as in other global markets.

It said the UAE is in balance while Muscat and Riyadh are two of only five markets worldwide to report a surplus

of construction trade labour.

Adam Ralph, director and head of real estate, Middle East at Turner & Townsend, said: “The rallying of oil prices in

the short-term has provided fresh impetus and opportunities in the region, but ultimately it is diversification of

the economic base away from oil and gas that is set to be the key driver of construction demand across the

Middle East in the long term.

“Government-backed infrastructure projects and economic development programmes are starting to invigorate

the construction market and attract strong private sector investment, such as the Duqm Special Economic Zone

and related $2.6bn freight railway line in Oman. After charting a relatively flat course, activity levels in the region

are beginning to show some promise.




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“The mood in the sector may be cautiously optimistic, but it also comes with a healthy dose of realism. In the UAE

particularly, investment is re-aligning towards more viable projects in contrast to some of the more outlandish

proposals mooted in recent years. With the climate increasingly cost-sensitive, driving innovation and better

performance on projects will be key to managing risk effectively and delivering attractive investment returns.”

Globally, the report highlighted a strong construction market, with 28 percent of markets surveyed classed as ‘hot’

or ‘overheating’.


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TRENDY MAKEOVER FOR SAUDI ARABIA'S

DELAYED BANKING HUB Thursday, April 11, 2019

There might not be any banks yet in the King Abdullah Financial District, but on a sunny afternoon, the once-

stalled development in Riyadh is packed with people.

Surrounded by unfinished skyscrapers, Mona Al Humaidi and Munira Al Shumaisi sipped iced coffee in an

outdoor lounge, laughing and watching the crowds. "We lack open spaces in Saudi Arabia," 27-year-old Al

Shumaisi said. "This kind of atmosphere’s very important for us."

The two Saudi women were among the first to explore THE303, a smattering of pop-up cafes with live music that

opened last month in the financial district. Along with a cinema nearby, the venue is bringing early signs of life to

the long-struggling development, announced in 2006 as a hub for foreign and local banks.

Plagued by delays, the $10 billion project was dismissed by many as a white elephant - a ghost town that

companies were reluctant to move into.

When Crown Prince Mohammed bin Salman launched his economic transformation plan in 2016, he promised to

revive and refocus the district. Now, after several years of uncertainty, the construction sites are buzzing again

and the project’s almost done.

But instead of being solely finance-oriented, it’s been revamped to blend business with residential and lifestyle

destinations - suddenly in heavy demand as the conservative Islamic kingdom loosens up socially.

"The government has quite openly admitted that the district was misconceived as a purely financial and business

hub," said Graham Griffiths, a senior analyst in Dubai at Control Risks, a risk consultancy. "Given the significant

amount of investment that has already gone into it, it’s natural that they would seek to reorient the project in

order to make use of what has already been built."

A spokesperson for the district declined to comment. In an interview in 2017, Crown Prince Mohammed bin

Salman said that the project had faltered because it included far too much office space. He pledged to restructure

the district and increase the number of residential units.

"The project didn’t fail," the prince said. "It will be the main driver for the city of Riyadh."

The question is whether international companies will move in. So far no banks have opened inside, and many

keep their regional headquarters in Dubai.

There’s talk of incentives to entice companies, like making it a special zone with visa exemptions and a direct

connection to the airport - and perhaps a lighter social regime. Even the live music played on weekends would

have been shocking five years ago in the conservative Islamic country.

Meanwhile, some foreign investors who snubbed Saudi Arabia after the Khashoggi case are coming back. A debut

bond sale by state oil giant Saudi Aramco drew a staggering $100 billion in orders.

Goldman Sachs CEO David Solomon made a trip to the kingdom recently, months after the bank pulled executives

from a Riyadh investment conference.

But for now, the crowds clogging the area with traffic each weekend are mostly local.




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"I wanted to see what everyone’s talking about," said Al Humaidi, 27. She and her friend said they were surprised

at how ordinary the place was after hearing so much hype - but added it was a testament to how hungry Saudi

youth are for hang-out spots.

"We’re tired of closed places," Al Shumaisi said. "The new generation is very social."


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SAUDI ARABIA'S UMM AL QURA TO BUILD

HILTON HOTELS FOR MAKKAH PILGRIMS Thursday, April 11, 2019

US hotel giant Hilton has expanded its reach in Saudi Arabia, adding nearly 2,000 rooms in the kingdom through

its latest management agreement with Umm Al Qura for Development and Construction Company.

The Hilton Garden Inn with 1,560 rooms and the 392-suite Embassy Suites by Hilton – both located in the Hilton in

King Abdul Aziz Road project in the Holy City of Makkah – join the group’s current pipeline of 34 hotels in the

kingdom, which represents 9,500 rooms.

Hilton announced the deal with Umm Al-Qura on 10 April, stating both properties are designed to cater to the

demands of pilgrims in Makkah.

Umm Al-Qura is responsible for developing the 120ha King Abdul Aziz Road project, which will feature 100,000

residential units; 28,000 hotel rooms; commercial and recreational areas; and a new mosque when complete.

“Hilton has been operating in Saudi Arabia for more than 25 years and our largest development pipeline in the

Middle East is in the kingdom,” said Patrick Fitzgibbon, Hilton’s senior vice president development for the EMEA

region.

“We are pleased to continue our expansion in the country with the Umm Al Qura for Development and

Construction Company and these two remarkable properties.”

The news comes just days after Hilton and Saudi’s Shomoul Holding Company signed a contract to develop and

operate four hotels at the $3.5bn (SAR13bn) The Avenues – Riyadh.

Among the four Hilton hotels to be operated at project are a 350-key Waldorf Astoria; a 400-key Conrad; a 500-

room Hilton Garden Inn; and a 150-room Canopy by Hilton hotel each.

The Avenues – Riyadh, one of Saudi Arabia's top construction projects this year, will include space for 1,300 stores,

in addition to five multi-purpose towers consisting of hotels, exhibition, conference halls, residential apartments,

offices, and medical facilities.


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EMAAR EXPECTED TO DELIVER ELIE SAAB

TOWER BY MAY 2023 Sunday, April 07, 2019

Emaar Properties’ estimated completion date for the recently announced Elie Saab tower on Emaar Beachfront is

May 2023, according to sales brochures issued by the Dubai-based real estate giant.

Arabian Business reported last week that Emaar Properties is partnering with Lebanese fashion designer Saab on

a residential development in the gated island destination in Dubai Harbour.

The tower will include 1 to 3-bedroom apartments and four-bedroom penthouses with interiors by Saab.

The payment plan includes a 5% down payment upon booking, which is open for buyers as of Friday, following

another 5% for the first instalment starting May 2019, or upon 30 days of the booking.

The 2nd and 11th instalments will also be at 5% and will be required every four months from the booking, from

August 2019 to August 2022.

The 12th instalment, 40%, will be required upon completion of the project.

Private consultation

Designed to celebrate the 1930 Art Deco era, the Elie Saab tower will feature boutique fashion stores, galleries,

cafes and lobbies also designed by Saab.

An amenity pool deck located at the 8th level, and inspired by chic Miami lifestyle, will be terraced and landscaped

to provide a retreat for residents, while an infinity edge swimming pool, gym and recreational facilities will also

feature.

Owners of the units will have the choice to get a private consultation from the Elie Saab design team on

purchasing furniture for their homes. Saab also boasts his own furniture collections with various partners.

Announcing the partnership, Mohamed Alabbar, chairman of Emaar said: “Elie Saab is the pride of the Arab world,

and a fascinating international success story. Through our first association with Elie Saab, admired by the world’s

leading celebrities, we are offering discerning customers a new lifestyle address.

"Every aspect of these glamourous residences is personally designed by Elie Saab, who brings his rare genius and

aesthetics to create a new architectural and lifestyle expression. It is our honour to be associated with him.”

Elie Saab, founder and chairman of Elie Saab Group, added: “We are delighted to collaborate with Emaar and

Mohamed Alabbar on this new project. Over the years, Elie Saab has evolved into a lifestyle brand, through the

development of diversified product categories that deliver a unique experience of the brand’s universe.”


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Page 24



KLEINDIENST POSTS RECORD $93M SALES

IN DUBAI'S HEART OF EUROPE Monday, April 08, 2019

Kleindienst Group, the creator of The Heart of Europe project being built off the Dubai coast, has announced a

record sales quarter of over AED345 million ($93.9 million) for its freehold second homes.

This represents a 69 percent year on year increase compared to Q1 2018, the developer said in a statement.

Since the end of December, Kleindienst said it has sold 100 percent of phase one including Sweden Island,

Germany Island, St Petersburg Island and over 80 Floating Seahorse Villas.

With over 2,000 people working on the islands Kleindienst, will hand over phase 1 by the end of 2019, it added.

Kleindienst said it is creating a new destination for vacationers and staycationers alike offering new experiences

such as diving among coral reefs in a Maldivian-style island setting just 20 minutes from shore.

The project will also feature climate controlled streets for an ambient temperature outside all year round.

According to Kleindienst’s initial research, there is an estimated demand for between 50-60,000 second homes

worth around AED50 billion in Dubai.

Josef Kleindienst, founder and chairman of Kleindienst Group said: “The model for world-class second homes in

Dubai is working. The record sales this quarter have reinforced the concept with many investors who now

understand the definition of second homes either as a holiday retreat or as a good financial investment with

guaranteed returns.

"Whether you welcome friends and family to spend time on a Floating Seahorse Villa or your suite in one of the 13

hotels, the trend is moving towards second homes and income-generating assets.”

In February, Kleindienst Group said it plans to double its workforce by June.

The European property developer said it already doubled is workforce last year, rising from 878 in January to

1,672 by the end of December.

Kleindienst Group said it will hire an additional 250 new staff per month for the first six months of 2019, to

support the completion of phase one and the start the second and third phases of construction, as well as grow

its sales operations.


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OLIVIER HARNISCH STEPS DOWN AS EMAAR

HOSPITALITY CEO Sunday, April 14, 2019

Emaar Hospitality CEO Olivier Harnisch has stepped down from his role “to pursue new interests”, according to a

company spokesperson.

“We can confirm that Olivier Harnisch is leaving Emaar Hospitality Group to pursue new interests,” the

spokesperson said. “We thank him for his contribution to Emaar Hospitality Group and wish him the best

In a statement, an Emaar Hospitality Group spokesperson said that the company’s current chief operating officer,

Chris Newman, will now handle business operations.

In a recent interview with ITP sister publication Hotelier Middle East at the Arabian Hotel Investment Conference

(AHIC), Harnisch said that Emaar Hospitality plans to focus on its current projects in the immediate future and

“slow down” further expansion.

Harnisch added that the Dubai-listed firm has 39 projects in the pipeline, which he said is “a lot for a company of

our size.”

Emaar is due to open five hotels in Dubai in the coming months, along with three more Saudi hotels in Meccah,

Jeddah and King Abdullah Economic City.


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COWORKING INDUSTRY OPENS

OPPORTUNITIES FOR LANDLORDS Tuesday, April 09, 2019

Some 7 million people are expected to be working in coworking spaces by the end of the year. Currently there are

15,000 coworking spaces in the world. In a recent report, Colliers said it expects a minimum of between 320,000

sq ft and 530,000 sq ft of space dedicated to this new subclass of office occupier around the world.

Dubai currently has 53 coworking locations, a 130 per cent rise since 2015. In total the city has more than 650,000

sq ft of flexible and coworking space. As Dubai’s commercial market continues to see reduced rents, there

remains many opportunities for large spaces that landlords are struggling to lease. These spaces are now

considered ideal for the coworking industry as they look to take advantage of spaces in the range of 7,000-50,000

sq ft within close proximity to transport, hotels and other amenities.

“The reason coworking spaces worldwide have been so successful stems from accommodating varied businesses:

from start-ups and freelancers all the way up to multinational corporations,” the report said.

The report also noted how coworking operators “are quite different to the standard serviced office models that

Dubai has been familiar with for the past 15 years”, as the newer concept focuses on promoting a fun and

energetic lifestyle and a collaborative space.

“With changing demographics, work patterns, AI and cost economies, coworking and flexible workspaces are now

key drivers in the global office market,” the report said.

Meanwhile, new initiatives, including Dubai Blink in Dafza, which allows global companies to acquire a virtual

business licence without having a presence on the ground, are seen to complement the growth in demand for

coworking spaces, according to Colliers.

Source: Gulf News

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HOTEL DISCOUNTS IN DUBAI WILL 'NEVER

PAY OFF', SAYS ACCOR CEO Sunday, April 07, 2019

Discounts on hotel room rates "never pay off", and instead lead to a "blood bath" in the industry, according to the

CEO of global hotel giant Accor.

Speaking to Arabian Business about hotel room rate discounts in Dubai, Sébastien Bazin said the practice will stop

as hotels are realising deep discounts do not increase demand.

“The big [hotel] groups know [discounts] never pay off. So the first guy discounted, people followed and it became

a blood bath. Since the [big hotel groups] have huge staying power, we are getting more and more sophisticated

and less and less worried. And we basically weather the storm,” he said.

“I think [hotel discounts] will stop [in Dubai]. It’s not only because you give a 40% discount that you’ll get more

traffic to Dubai. That’s nonsense. So just weather the storm, make sure you give 7-10% [discount] to people for

them to appreciate that you’re going through some difficult time. But you’re not increasing demand by being a

deep discounter. We’re not in the food or retail industry here,” he added.

Rare availability

Accor bought Barcelona-based hotel deals website VeryChic in 2016, which offers customers discounts of up to

70%. Accor, however, limits its discounts to 40% on 5-10% inventory and offer them for a single weekend, three

weeks before the date of availability.

“The attractive prices get you a foot in my door, so you understand what we do and you’re very sensitive to what

we offer, because you know you’re going to get something, but you also know it’s a rare availability. So we’re not

discounting for one week at 20%. We’re discounting for one particular weekend at 40%,” Bazin said.

The chief executive said customers are becoming “experts” at value for money deals, with some motels having to

discount to keep the property full.

“If you look at the last 12 months, people are [becoming] pretty expert now. You can discount if you’re Mom and

Pop Motels… [They] have to discount because there’s nothing worse than an empty room. But for us, the price of

the room is the price of the room,” he said.

However, he added that hotels are expensive to build, and that quality cannot be discounted.

“It’s very expensive to build a hotel. It’s very expensive to pay the staff. And then you get the freshness of the food

delivery. You can’t discount it. As far as Accor is concerned, we have never shown the way to discounting

anything,” he said.


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Page 28



DXB ENTERTAINMENTS REPORTS DROP IN

Q1 VISITORS BUT LOOKS TO HOSPITALITY

FOR GROWTH Thursday, April 11, 2019

Dubai Parks and Resorts, which contains theme parks including Motiongate Dubai and Legoland Dubai, reported

a drop in visitor numbers in the first quarter of 2019, its owner said. Courtesy Dubai Parks and Resorts

Dubai Parks and Resorts, which contains theme parks including Motiongate Dubai and Legoland Dubai, reported

a drop in visitor numbers in the first quarter of 2019, its owner said. Courtesy Dubai Parks and Resorts

DXB Entertainments, the operator of the Dubai Parks and Resorts theme parks, recorded an 11 per cent year-on-

year decrease in visitor numbers to its parks in the first quarter of 2019, but is looking to hospitality to boost

growth, it said on Thursday.

“A decline, during the second full-year of operations, is not unusual for a destination such as Dubai Parks and

Resorts which benefited from high penetration of its resident market in 2018, boosted by the introduction of the

destination’s first annual pass and competitive resident pricing,” the company said in a statement posted on the

Dubai stock exchange, where its shares are traded.

Total visitors to the park stood at 760,000, down from 851,000 in the same period of 2018.

However, Dubai Parks and Resorts’ first hotel, the Lapita Hotel, reported a healthy increase in average occupancy

to 72 per cent in the first quarter of 2019, up from 62 per cent in the same quarter of last year, DXB

Entertainments added.

By 2020, the park is scheduled to have a total of 1,300 hotel rooms, following the planned opening of the Rove

hotel in 2019 and Legoland in 2020. “The Lapita hotel’s 72 per cent occupancy rate for the quarter shows that

people are responding well to our existing hotel offering,” said Mohamed Almulla, chief executive and managing

director of DXB Entertainments.

“Our newly appointed chief commercial officer, Paul Parker, will lead our efforts to grow international visitation,

which will in turn drive growth through a higher yielding visitor [demographic], spending more time at both our

parks and our hotels.”

Having established a domestic customer base in the past year, DXB Entertainments plans to “re-ignite interest”

through a series of promotions in 2019, some of which kick off on April 19, the chief executive added.

DXB Entertainments, in which Dubai real estate developer Meraas Holding holds a 52.3 per cent stake, has been

working to pay down losses incurred in the past few years.

The company operates Dubai Parks and Resorts, which holds the franchises for Legoland and Motiongate and

runs the Bollywood theme park.

Last year, it restructured Dh4.2 billion of bank debt and received new funding from Meraas. In the third quarter of

2018, DXB Entertainments narrowed its losses by 4.5 per cent to Dh271.4 million from the year-earlier period,

having previously narrowed second-quarter losses by 11 per cent year-on-year to Dh255m.




Page 29




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Page 30



DUBAI FDI SURGE MAKES IT TOP MENA

FOREIGN INVESTMENT DESTINATION Monday, April 08, 2019

Foreign direct investments into Dubai rose more than 41 per cent in 2018, propelling the emirate to the top

among FDI destinations in the Middle East and North Africa, and improving its global ranking by four positions.

The commercial and trading hub of the Middle East received Dh38.5 billion in terms of FDI capital last year,

against Dh27.3bn recorded in 2017 and Dh25.5bn a year earlier. This is the first time the emirate has achieved

total FDI capital in excess of US$10bn in a financial year, said Fahad Al Gergawi, chief executive of Dubai FDI, the

government body responsible for the promotion of foreign investments in the emirate.

“There is a big jump that Dubai achieved last year”, which is an indication of the readiness of Dubai’s investment

ecosystem, offering growth opportunities from start-ups to global conglomerates, Mr Al Gergawi told a press

conference in Dubai on Sunday.

The surge in capital flows to the emirate has also helped Dubai’s global ranking in terms of FDI inflows to rise to

sixth position, he said, citing fDi Markets data.

Dubai last year also proved itself to be one of the most attractive destination for global talent. Foreign

investments resulted in about 25,000 new jobs in the emirate, putting it ninth in the ranking of countries creating

jobs through FDI, according to FDI Monitor figures, a Dubai FDI portal that tracks and analyses investment data.

“Medium and high-tech FDI projects, being a major tool in job creation, accounted for 29 per cent of the total jobs

added in 2018,” Sami Al Qamzi, director general at Dubai Economic Department, said in a statement.

Attracting foreign investment is high on the UAE’s agenda as the second-biggest Arab economy continues to

diversify its revenue base, cutting dependence on oil proceeds. The UAE, which last year passed the FDI law,

which streamlines and facilitates capital inflow, is expecting a significant boost in the foreign investments this

year.

At the emirate level, Dubai has launched several initiatives of its own relating to improving the ease of doing

business and attracting young entrepreneurial talent.

Dubai remained among the top three globally, together with Singapore and London, in terms of number of

projects initiated with foreign investments, which includes greenfield development and new forms of investments

such as existing businesses setting up new ventures with foreign partners.

The total number of FDI-initiated projects in the emirate climbed to 523 last year, a 43 per cent year-on-year jump.

About 55 per cent were classified as "strategic for Dubai" by FDI Monitor

“Dubai was especially able to attract a lot of small and medium-sized investments with a high technology

component and large innovation capabilities. More than 58 per cent of the investments in the emirate go into

medium and high-tech areas, Mr Al Gergawi said.

The US remained the top FDI source market for Dubai, accounting for 37 per cent of the total capital inflows,

followed by India at 12 per cent, Spain at 9 per cent, China on 7 per cent and the UK with 5 per cent. In terms of

the number of the investment projects initiated last year, the US also maintained its top position followed by the

UK, France and India and China, according to FDI Monitor data.




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The accommodation and food services sector was the top FDI recipient, accounting for 46 per cent of the capital

inflows into Dubai in 2018. Non-residential building construction with 15 per cent, residential building

construction with 8 per cent, entertainment with 5 per cent finance sector with 4 per cent were the other sectors

in the top five, data showed.


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DUBAI’S NON-OIL BUSINESS ACTIVITY

RAMPS UP IN MARCH Monday, April 08, 2019

Dubai’s non-oil private sector economy gathered momentum in March, with total business output increasing at

the fastest rate since January 2015. The tourism and retail industries posted record rise in activity, according to

Emirates NBD.

The Dubai lender’s seasonally adjusted Dubai Economy Tracker Index – a composite indicator developed with

IHS Markit and designed to give an overview of operating conditions in the non-oil private sector economy – rose

to 57.6 in March. The reading was up from 55.8 in February and the highest since May 2018.

A number above 50 indicates expansion and below 50 signals contraction.

The March figure was also the joint-highest in nearly two years and above the long-run average of 55.2 for the

series since 2010, the bank said.

The improvement in non-oil business activity was led by the travel and tourism industry – which reached a record

high of 59.8, and wholesale and retail, which stood at 59.7, just shy of the last record set in October 2017.

However, business conditions within the construction industry were the weakest in 28 months owing to a

softening in new order growth, Emirates NBD said.

A strong increase in business output drove the main index performance in March, the lender said.

The non-oil private sector’s rate of expansion was the fifth-strongest on record since 2010.

This translated into higher levels of business confidence, with company output expectations the second-highest

on record after the peak in January. Price discounting – especially in the retail sector – was the probable key driver

of demand in March.

Non-oil private sector companies in Dubai slashed their prices for goods and services for the 11th consecutive

month, marking the longest sequence of discounts since the series began in 2010. The rate of price discount was

the steepest since December 2018.

“While the rebound in the headline Dubai Economy Tracker Index is encouraging, it is clear that firms continue to

price discount in order to secure new work and boost activity,” said Khatija Haque, head of Mena research at

Emirates NBD.

“The pressure to cut costs means that the recovery in the volume of activity has not translated into much job

growth in the private sector.”

The rate of job creation was modest last month, partially reflecting little or no change, especially in the travel and

tourism sector, the tracker showed.

Meanwhile, average input prices rose for the 12th month running in March, while the rate of inflation was modest

and has eased since February.


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Page 33



LA RIVE HOMES IN DUBAI SELL OUT AHEAD

OF OFFICIAL LAUNCH Saturday, April 13, 2019

Every unit in La Rive’s fourth residential building in Dubai was sold out before it was officially launched, developer

Meraas has confirmed.

Meraas’ waterfront project based at Port De La Mer, the first freehold master community in Dubai’s elite Jumeirah

area, witnessed a staggering level of investor interest in the high-end, off-plan projects, a statement said.

Prices for La Rive’s off-plan units started from AED1.3 million in the four-storey building which comprises one- to

four-bedroom apartments and penthouses.

On completion, a total of over 250 high-end apartments and penthouses will be available across La Rive’s four

buildings.

La Cote and La Rive are nestled, cheek-by-jowl on Port De La Mer by Meraas – the upcoming Mediterranean-

inspired waterfront development, which boasts a picture postcard setting.

Together, both of Port de la Mer’s residential projects will comprise nine buildings, and to date, eight of the nine

buildings have been officially launched.


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Page 34



DEVELOPERS SAID TO RESTART DUBAI

OFFICE PROJECTS AS EXPO 2020 LOOMS Thursday, April 11, 2019

Multiple commercial real estate projects have been resumed by developers in Dubai during the first few months

of 2019 in a push to deliver them ahead of Expo 2020, according to a new report.

JLL’s Q1 Dubai Real Estate Market Overview report said the government’s introduction of regulations to stimulate

demand is also expected to drive the market this year.

JLL said that with ample choices available for tenants, landlords continue to offer incentives in order to retain

current occupants, adding that this trend is expected to continue over the next 12 months.

In the residential space, around 9,800 units were completed in the first quarter of 2019 which is the highest

number of units handed over in a single quarter for the last few years, the report said.

It noted that a rising trend in the space is that of new technologies being introduced in response to the

government’s call to switch to paperless transactions.

The retail market shares a similar trend, with mall owners investing in new technologies such as artificial

intelligence (AI) and click and collect to maintain and increase footfall.

JLL said other mall developers are expected to follow in the footsteps of Majid Al Futtaim which recently partnered

with pop star Will.I.AM's technology company to deploy an AI platform to engage customers and provide a digital

and virtual experience for retail and entertainment.

Craig Plumb, head of research, JLL MENA, said: “The overall real estate market in Dubai is maturing and looking

beyond just cyclical trends. Entities are increasingly looking at innovative ways in which to re-strategise their

portfolios and assets in order to boost their businesses.

"The government is also actively introducing regulations, such as the one allowing 100 percent foreign ownership

of companies in the UAE to stimulate demand. These developments are expected revive investor sentiment in the

long-run.”

The JLL report also said Dubai's hotel sector is also expected to receive a boost from Dubai Tourism’s decision to

release AED250 million of bank guarantees, which will allow local tourism companies to reinvest in their

businesses.

This initiative is expected to help drive future growth towards the emirate’s new target of attracting 25 million

overnight visitors by 2025, it added.


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Page 35



PAPERLESS TRANSACTIONS WHEN YOU

MOVE HOME Tuesday, April 09, 2019

Yardi, a provider of cloud-based real estate management solutions in the UAE, is supporting the DubaiNow

initiative by helping its clients integrate with the app and adopt a paperless customer journey, as part of the

Smart Dubai initiative.

DubaiNow is the first unified Dubai government services smart app offering over 55 smart services from 22

government entities. It aims to combine most of Dubai’s daily government needs and continuously strives to add

more efficient government services to ensure the city’s happiness.

Yardi worked closely with its Dubai-based clients in the development and testing of the new interface.

For real estate and relocation, users can perform transactions associated with moving to a new residence using

the DubaiNow app. This includes searching for available units, appointment booking, online payments, digital

signature via UAEPASS and receiving an Ejari certificate.

Yardi also announced the development of an e-signature integration with UAEPASS, which helps to digitalise

transaction execution.

Digitalisation of real estate

Neal Gemassmer, vice-president of international for Yardi, said: “We are thrilled to be able to announce this latest

development and are excited to play our part in the Smart Dubai initiative. This serves as an example of the

importance we place on supporting local clients and the efforts we are making to support digitalisation of real

estate in the UAE.”

Established in 1984, Yardi is based in Santa Barbara, California, and serves clients worldwide from offices in

Australia, Asia, the Middle East, Europe and North America.

It develops and supports industry-leading investment and property management software for all types and sizes

of real estate companies.

At the recent Arabian Business Technology Awards Yardi was named Property Software Company of the Year in

the UAE. The nomination was drawn from a select group of over 600 companies and individuals. Yardi was

recognised as the UAE’s top real estate technology provider last year.

“Yardi has a proven track record across the Middle East for providing long-term, customer-focused solutions that

represent innovative use of technology across real estate sectors,” said Said Haider, Yardi’s regional director for

Middle East, who accepted the award on the company’s behalf.

Source: Gulf News

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Page 36



WHERE PROPERTY PRICES, RENTS ARE

FALLING FASTEST IN DUBAI Wednesday, April 10, 2019

Potential investors and tenants in Dubai are set to reap the benefits of competitive pricing and rental rates as

several off-plan projects launched between 2014 and 2016 are delivered, according to Chestertons.

Its Dubai Market Report Q1 2019 said that in the sales market, the downward pressure on prices witnessed

throughout 2018 has continued into the first quarter of 2019 with villa and apartment prices down 1 percent and

3 percent respectively.

The most resilient communities, from an apartment perspective, were Downtown, Dubailand, Dubai Motor City

and Dubai Silicon Oasis, all retaining the same price levels as the previous quarter.

International City, Dubai Sports City and Business Bay experienced the greatest correction with a quarterly

decrease of 7 percent, the report added.

“Last year we saw over 20,000 units enter the market, resulting in softening across the sales and rental sectors for

both apartments and villas. This is a trend we expect to continue throughout 2019 as the number of units

estimated to be delivered is set to be even higher. As a result, we expect to see developers and landlords continue

to offer a range of financial incentives and become increasingly innovative in their approach” said Ivana Vucinic,

head of consulting, Chestertons MENA.

With regards to villas, the most resilient community was The Lakes with prices unchanged from Q4 while The

Meadows and Springs witnessed the highest declines, revealing a 4 percent decrease. Palm Jumeirah and Arabian

Ranches both saw declines of 2 percent during the same period.

Transactional activity, for the most part, was on the rise in Q1 when compared to Q4 2018.

The completed unit market witnessed a small decline in transactional volumes in Q1 from 3,278 to 3,230 units

while the volume of off-plan transactions was up 10 percent on Q4 2018.

Off-plan transaction values increased by 35 percent from AED5.82 billion in Q4 2018 to AED7.85 billion in Q1

2019.

“Off-plan sales dominated the market in Q1, indicating the raft of incentives offered by developers, including five-

year post-handover payment plans, registration fee rebates, guaranteed rental returns and the freezing of

property service charges, are having the desired effect,” added Vucinic.

In the rental market, the additional supply and subsequent greater choice is creating a favourable scenario for

tenants with average leases for both apartments and villas witnessing a 2 percent decline when compared to Q4

2018, the report noted.

For apartments, Dubai Motor City, Dubai Silicon Oasis, Dubai Sports City and JLT all experienced a 4 percent

decline from Q4.

It was only more established communities displaying resilience, with Dubai Marina and Business Bay showing no

change from the previous quarter.

In the villa market, JVT bore the brunt of rental declines, with a 5 percent decrease compared to Q4 2018 while

Jumeirah Golf Estates, Jumeirah Islands and The Lakes saw no movement during that period.




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“Due to the supply/demand dynamics, we’ve seen several landlords offering lower rental rates and incentives to

attract and retain tenants. Multiple rent cheques, rent-free periods, waiver of security deposits and in some

instances the landlord covering the cost of agency fees are all becoming increasingly more common,” said Vucinic.

“We are also seeing an increase in Airbnb style rentals in the market with increasing occupancy rates year-on-

year. This could be a result of ongoing downward corrections in the long term rental market,” she added.


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CHINA UNVEILS DESIGN FOR DUBAI EXPO

2020 PAVILION Wednesday, April 10, 2019

The design of the Chinese Pavilion for Expo 2020 Dubai was unveiled on Wednesday in Dubai.

Through its theme of Building a Community with a Shared Future for Mankind - Innovation and Opportunity, the

China Pavilion will be one of the largest at Expo 2020 Dubai, occupying a land area of 4,636 sq m, state news

agency WAM reported.

There will be three main features of the China Pavilion, which are innovation, innovation in architecture design

and innovation in exhibition.

The big reveal was made in the presence of Ambassador Ni Jian of the People’s Republic of China in the UAE,

Najeeb Mohammed Al-Ali, executive director, Dubai Expo 2020 Bureau and Zhang Yi, deputy secretary-general of

China Chamber of International Commerce.

Ruan Wei, director of Expo Affairs, CCPIT, gave an update on China’s participation progress and presented the

design.

The country confirmed its participation in Expo 2020 Dubai in January 2017 and signed its official participation

contract in May 2018.

Zhang Shenfeng, vice chairman of the CCPIT, has been appointed as commissioner general of the China Pavilion

at Expo Dubai 2020.

Expo 2020 Dubai will run from October 20, 2020 to April 10, 2021. It will be the first World Expo to be held in the

Middle East, Africa and South Asia region and expected to receive 25 million visitors.

A total of 190 countries have confirmed their participation in the Expo.


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OPINION: DUBAI'S HOSPITALITY INDUSTRY

MUST ADAPT AND EVOLVE Wednesday, April 11, 2019

Dubai hotel market fundamentals continue to be relatively strong, and is showing signs that it's now maturing,

writes Olivier Harnisch, CEO of Emaar Hospitality Group

Opinion: Dubai's hospitality industry must adapt and evolve

Olivier Harnisch, CEO of Emaar Hospitality Group, said more emphasis must be placed on building cost-efficient

properties.

The main topic of conversation among hoteliers in Dubai these days is about the challenges that the market faces.

They cite declining average daily rates (ADR), the number of new hotels coming up and point out that profit

margins are under increasing pressure.

When negative talk takes precedence, it is important to remain level-headed and analyse the situation from a

rational point of view.

From my perspective, two tools can be used to look at Dubai’s hospitality sector: the first is a rear-view mirror –

looking back – the second is a pair of binoculars – looking around.

This approach is more than about viewing the market through the analogy of the glass ‘half-full, half-empty’. It

aims to see operational aspects through evidence-based rationality rather than false bravado, through sugar-

coating the hard facts or sheer empty rhetoric.

The rear-view mirror shows that revenue per available room (RevPAR) figures have indeed been declining since

2015, mainly because of the erosion of ADR.

As most hoteliers with international experience know, they came down from a very high level after many years of

growth. The binoculars on the other hand allow us to look beyond our immediate environment, and there the

result is more encouraging.

Maturing

Scan through the leading hospitality markets globally and there is ample proof that Dubai’s hospitality sector is

not in as bad a shape as what the skeptics point out to. In fact, our fundamentals continue to be relatively strong.

It also reminds us that our industry had an extended honeymoon and we are now maturing.

With a 78 percent year-round occupancy and an average daily rate of AED 804 across all Dubai hotels in 2018 (TRI

Consulting), Dubai’s hospitality market compares favourably to many cities in Europe, the US or Asia. Destinations

such as Berlin, Shanghai for example perform substantially below our city.

Our fundamental indicators are still robust. According to the Mastercard’s Global Destination Cities Index 2018,

Dubai is the world’s fourth most-visited city, after only Bangkok, London and Paris, while the city had the highest

international overnight visitor spend among 162 cities, at $537 (AED 1,972.45).

With the Dubai International Airport fostering its leadership position as the world’s busiest for international

passenger traffic, our hotel sector is supported by a vibrant tourism and aviation industry.




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New markets such as Russia and China are growing with the number of Chinese visitors recording 12 per cent

growth to 857,000 and the number of Russian visitors gaining 28 per cent to 678,000 in 2018, after virtually

doubling in size in 2017.

Expo 2020 Dubai effect

Further, the Expo 2020 Dubai effect will catalyse the sector’s growth with a unique opportunity to strengthen

Dubai’s positioning as a world-class, technologically advanced and open destination.

In all logical reasoning, the hospitality performance indicators such as ADR, occupancy and RevPAR are gradually

settling to levels that are on par with international cities. This said, the market is clearly changing. Except for the

Expo 2020 period, over the next few years hotel room supply growth will outpace demand and this will pose a set

of commercial and operational challenges to the industry.

However, this will also offer an opportunity for the local hospitality sector to reinvent itself. Much can be done to

cope with the increasing the maturity of the market.

Value-minded approach

It starts with how we plan and construct hotels. More emphasis must be placed on building cost-efficient

properties. Parameters such as gross floor area per key, building efficiency (ratio of commercial, revenue

generating areas to non-commercial, non-revenue generating areas) and cost of construction per square metre

determine the return on investment a hotel will generate after its completion. Much more focus will have to be

applied to these factors.

We will have to be smarter in building hotels. We, as an industry, have shown our ability to build beautiful

properties in Dubai, now we must continue doing this in a more cost-effective manner.

A value-minded approach to hotel construction should preferably start at the beginning of a project, not when the

largest part of the budget has already been committed, as is often the case.

In addition to hotel construction, we must learn to operate hotels in a more flexible, cost effective way, which

essentially means continually evaluating the deployment of resources to revenue projections, whilst delivering

outstanding quality levels.

In the future, intelligent cost management will be more critical than ever. Productivity management, best-in-class

benchmarking, and zero-based-budgeting will no longer be theoretical concepts but essential tools in operating

hotels effectively. We have much room for improvement in this area.

Overall, this is not a gloom story. These are signs that our market is maturing. We have been blessed in the past

years with growth rates that were far above global averages. We may have to settle for more normal numbers in

the future. And it is up to us to adapt to these changing circumstances.

Olivier Harnisch is CEO of Emaar Hospitality Group


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DUBAI’S ‘BUY NOW, MOVE IN AND PAY

LATER’ MANTRA IS WORKING Saturday, April 13, 2019

Dubai: So much has been said about the state of Dubai’s real estate market in the last 14 months, with views

tending to be quite extreme.

Mark Mobius, the investment whiz, weighed in with his thought just a week ago about an upcoming “real slump”.

And there are those who remain bullish on the market’s prospects, countering all negative commentary by

mentioning just one number — the Dh4.21 billion in sales revenue that Emaar pulled in from its Dubai operations

in the final three months of 2018. Other developers too are doing just as well — there’s Meraas hitting its targets

with recent launches such as the Cherrywoods, Dubai Holding’s got its Jumeirah freehold riding a wave, and wasl

Properties pulling in buyers for its Jebel Ali and Zabeel developments.

So, who are these buyers? Are they investors coming into a soft market because the price is right? Or do they

represent a mix of the end-user and the long-term investor wanting to buy into Dubai property because they see

value in it? And, of course, enticed by the long-term payment plans on offer from both developers and secondary

market sellers.

Gulf News tries to put a face and a name to some of those buyers who bought at some point in the last 12

months and as recently as a few days ago ...

Property sellers in Dubai are reworking that old theme of “Buy now, pay later”. Instead, their version is “Buy now,

move in, pay later…”.

And they are finding takers for it — maybe not in the numbers seen during the boom years, but still in good

enough numbers. In the last 12 months, more of Dubai’s developers — and even individual sellers in the

secondary market — are able to attract buyers by offering them the right sort of post-handover payment plans.

Whether for off-plan and, increasingly, for ready homes, post-handover schemes of three- to 10 years are helping

them seal the deal.

The process is quite straightforward — offer buyers a low down payment option, and the stagger most of the

payments after they get the keys to their property. The longer the payment period, the better it is for the property

buyer to keep his commitments. One leading developer, MAG, even has a zero down payment scheme at its MAG

City project in Meydan, which means the buyer will need to pay between Dh8,000-Dh10,000 a month to clear off

his dues.

In most cases, since buyers are dealing direct with the developer, there is not even the hassle of trying to find a

bank to help with the mortgage.

Here’s what Zamina Hussain, who recently moved into a two-bedroom apartment at Azure on the Palm, had to

say: “Today’s payment plans are effectively the same as loan instalments … but without the approval process that

can be somewhat time consuming. It has made things a lot easier for end-users. The longer the payment plan, the

easier it becomes to service them.” (Farva acquired the property from Nakheel, through a five-year payment plan.

The two-bedroom unit cost more than Dh2.5 million.) At a time when property values are under pressure and

banks remain extremely choosy about whom to lend to, these payment plans are able to convince more buyers to

do so now than wait. In that respect, these schemes have managed to generate quite a bit of momentum.




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As Uzair Razi, who bought a home at Jumeirah Park, says it: “There is never really a “right time” to buy a property

… so by definition, that decision is dictated by considerations other than purely the price. For me and the family, it

was about getting a villa in a community that would be our home for the next 10 years.

“Who knows whether there will be better deals ahead — we felt this was the right time to take the plunge given

that newer communities were generally showing higher selling prices.” (He paid above Dh3.5 million for the ready

unit, which he bought from the secondary market. But despite this, he still managed to get a payment plan of five

years, something that more individual sellers are willing to do and thus be able to compete with those offered by

developers.) Uzair answers the description of the sort of buyer developers and property sellers want to see more

of in Dubai — someone who is thinking in terms of holding on — and living in — the property for a decade or

more. Because Dubai’s property market cannot rely exclusively on investors coming in and creating a “buy and

sell” momentum.

Because there is enough talk happening in the marketplace about Dubai’s oversupply situation and what it could

mean for the property market going forward, Mark Mobius, the investment guru, was the latest to issue such a

stark warning.

So, the question for property buyers essentially boils down to whether to heed these warnings or to go ahead

with the purchase. Asma Ali chose the second option, picking up a property at “The Nook” cluster in wasl Gate, a

sprawling mixed-use community in Jebel Ali, which will be completed late 2021.

“Having invested 25 per cent of my savings, I look forward to owning an asset and capitalising on it post-handover

by leasing it … or selling it,” said Asma, adding that the flexible payment scheme helped her decide. A one-

bedroom there lists at Dh477,777, and 60 per cent of the payment is set on handover.

Much the same mindset was the prompt for Walid Alrajaby to pick one at the same cluster. “It is a great

opportunity, more so for a fresh graduate who has only just started working and seeking the best possible deals

to take advantage of,” he added. “It was a no-brainer for me.”

On its part, the developer, the Dubai Government owned wasl, was direct with its messaging. This was built

around targeting young Emiratis to get into the property invest ladder at the earliest opportunity.

Zainab Mohammad, Chief Property Management and Marketing Officer at wasl properties, said: “Our promotional

offers are a public awareness strategy to encourage target groups to invest.”

And “steering clear of costly trends that quickly drain financial resources,” the company adds, quite tellingly.

So, for the moment and going forward, the focus will continue to be on the post-handover plans. If this way,

Dubai’s property market sees enough end-users and longer term investors come in, all the better.

For Sana Hassanali, that’s what counts. Having picked up a two-bedroom unit at the Golden Mile on the Palm

from Nakheel, she said: “Undoubtedly, the fact that we could get hassle-free payment plans played a large part.”

(She gets to pay back over five years.) But for many, the payment plan itself is the deal clincher.

Source: Gulf News

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$1.36BN JUBAIL ISLAND SANCTUARY

PROJECT UNVEILED IN ABU DHABI Monday, April 08, 2019

Jubail Island, which aims to become Abu Dhabi’s most desirable residential sanctuary, was officially unveiled on

Monday.

Developed across 400 hectares at an estimated cost of AED5 billion ($1.36 billion), the low-density community,

designated as an Abu Dhabi investment zone, will comprise a mix of serviced plots, high end and midrange

properties that cater primarily to the requirements of UAE nationals and the rental market.

Set to feature six investment zone villages – Marafaa Al Jubail, Nad Al Dhabi, Seef Al Jubail, Ain Al Maha, Souk Al

Jubail and Bed’a Al Jubail - Jubail Island is located between Yas Island and Saadiyat Island.

Jubail Island Investment Company (JIIC), the developer of the project, has appointed Lead Development as the

development management firm, with Arquitectonica from the US, Ramón Esteve from Spain and the global

practice Broadway Malyan making up the consortium of international architects and planners.

Comprising 400 single-family and 400 multi-family homes, the project is slated for completion by the end of 2022,

and varied ownership options mean that plots can be arranged for handover as early as Q1 2021.

Once completed, Jubail Island will be home to between 5,000 and 6,000 residents.

Mounir Haidar, managing director of JIIC, said: “Jubail Island will cater to families, wellness, wildlife and nature

enthusiasts, including water sports activities as well as offering a unique quality of life for homeowners and

visitors alike.

"With its wide variety of residential, retail, hospitality, entertainment, and education offerings, the project is

poised to become an important contributor to the Abu Dhabi real estate market in line with the objectives of the

Abu Dhabi Economic Vision 2030.”

He added: “The breath-taking development will significantly enhance the capital’s market offering for quality

properties. Jubail Island will offer investors well-priced and sizable plots in a low-density community surrounded

by spectacular natural elements, such as beautiful waterfronts, beaches, mangroves and neighbourhood parks.

"A five-hectare heritage site, where pottery and other relics of early civilisation that have been discovered on the

site will be on display, is set to be another key attraction.”


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NOVEL OFFERINGS AT CITYSCAPE ABU

DHABI Monday, April 09, 2019

Set against the backdrop of Ghadan 21 (Tomorrow 2021), the Abu Dhabi government’s economic stimulus

package that allocates Dh20 billion this year and a total of Dh50 billion over three years, this year’s edition of

Cityscape Abu Dhabi opens next week with organisers seeing an upsurge in development confidence resulting

from various game-changing government policies. “Recent government initiatives, including the Tomorrow 2021

plan to energise the economy, are aimed at attracting investment in the full range of sectors, with real estate

being a key contributor to economic diversification,” said Chris Speller, exhibitions group director at Informa.

“Other government initiatives to strengthen the real estate sector include reviewed building regulations, new

commercial licence rules, consolidation of real estate players, reduced costs for developers and new visa and

foreign ownership rules.”

More than 75 exhibitors, including names such as Aldar, Imkan Properties, Arada, Bloom Holding, Wahat Al

Zaweya and Baniyas Investment and Development, will be taking part in the exhibition, which will run from April

17-19 at Adnec. “This year the range of exhibitors and visitors will span the full spectrum of the emirate’s real

estate industry,” said Speller. “Cityscape Abu Dhabi serves as a networking platform and investment conduit to

seek our opportunities and partners.”

Student housing

This year’s exhibition will feature a number of novel offerings, including student housing, which will be an entirely

new type of real estate investment opportunity for many investors. Developer Arada will be presenting a student

housing complex called Nest in its lifestyle megaproject, Aljada.

“It allows investors to purchase directly into this lucrative asset class for the first time here in the region,” said

Ahmed Alkhoshaibi, CEO of Arada. “Student housing has already proved incredibly popular elsewhere in the

world, with $10 billion being spent in this asset class in the US alone during 2018.”

Post-handover payment plans

While showcasing its international projects comprising residential, retail, hospitality and commercial ventures,

Imkan will also introduce payment schemes that are new in the Abu Dhabi market. “We are the first developer in

Abu Dhabi to introduce post-handover payment plans that are available up to nine years,” said Walid El Hindi,

CEO of Imkan Properties. “Both our Nudra and Pixel projects were the first on Saadiyat Island and Reem Island

respectively to offer a post-handover payment plan for an off-plan development.”

Source: Gulf News

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ABU DHABI FUND FOR DEVELOPMENT

FINANCES 78 PROJECTS Sunday, April 07, 2019

The Abu Dhabi Fund for Development (ADFD) has financed 78 healthcare projects in 16 countries with a total

value of Dh4.1 billion, in the period since its inception in 1971 till December 2018.

The fund's interest in healthcare projects reflects its keenness to support international efforts aimed at achieving

the UN's Sustainable Development Goals, directly contributing to Goal Three - Good Health and Wellbeing.

According to an ADFD report, issued to mark World Health Day that falls annually on April 7, the fund views the

health sector as one of its priorities given its significant impact on people's lives. The sector is also the most

efficient in elevating living standards and empowering citizens to actively participate in the development process.

Mohammed Saif Al Suwaidi, director general of ADFD, said: "Most developing countries lack the resources to meet

their development needs, especially in the health sector due to rapidly rising costs, leaving large swathes of the

population without access to essential services. This explains ADFD's keenness in developing the health sector

through launching comprehensive projects that enhance the social stability of the population and upgrade the

level of healthcare available, especially in high-density regions. The nature of the projects financed by the Fund in

the health sector in developing countries ranges from the construction of hospitals, integrated and specialised

health centres, as well as social development and early childhood centres to the provision of state-of-the-art

equipment and facility upgrades."

Since 1971, ADFD has launched comprehensive projects that enhance the social stability of the population and

upgrade the level of healthcare available, especially in high-density regions. ADFD also has stepped-up its

development efforts in supporting health programmes for women and children. To date, ADFD has backed 18

health programme in collaboration with local institutions and international organisations, successfully providing

vital supplies of vaccines and drugs to eradicate infectious diseases.

As part of its efforts to support sustainable development in key socio-economic sectors, ADFD has funded

multiple vital healthcare projects. These include the Sheikh Zayed Hospital in Mauritania, which is a 185-bed

hospital that spans an area of 3,000 square metres, and which has significantly improved the provision of health

services in the country. ADFD has also funded the Queen Rania Children's Hospital in Jordan, which provides

state-of-the-art medical and therapeutic services. As the first medical facility dedicated to children in the country,

the hospital receives more than 200,000 patients per annum.

In addition, ADFD contributed Dh550 million to the construction of the Mohammed bin Khalifa Specialist Cardiac

in Bahrain, which helps in diagnosis and treatment of heart diseases in the country and the wider region,

featuring cutting-edge medical equipment and 148 beds, outpatient clinics, radiology, imaging, pharmacy, as well

as physiotherapy and emergency departments. ADFD has also funded the Sheikh Zayed Hospital in Egypt, which

is a 150-bed hospital. ADFD's financing provided the latest medical equipment and several medical units including

dialysis, intensive care, blood bank, surgeries and other specialised clinics.


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ALDAR TO BUILD NEW WATERFRONT

SCHEME ON YAS ISLAND Thursday, April 11, 2019

Aldar Properties, the Abu Dhabi real estate developer, is building a new waterfront residential project in the

emirate as part of its recently adopted strategy to offer land plots for sale.

The ‘Lea’ scheme is on the northern coast of Yas Island, where Abu Dhabi’s Formula One racetrack, the Yas

Marina, theme parks and several neighbourhoods including the adjoining Yas Acres development are located.

The project offers 238 residential land plots for sale ranging in size from 405 square metres to 1,800 sqm, with

prices starting from Dh999,000, Aldar said in a statement.

Sales will commence at the annual Cityscape property exhibition in Abu Dhabi next week. “Combining the

opportunity to acquire land with all of the attractions and amenities of Yas Island is a hugely compelling

proposition that no-one else can offer,” Aldar chief executive Talal Al Dhiyebi said in a company statement.

The construction of Lea follows the success of Aldar’s first land plot sales project Alreeman, a 2.8 million square-

metre development in Abu Dhabi’s Al Shamkha district featuring residential and commercial land plots with prices

starting at Dh690,000 for villas and Dh4.69m for commercial areas.

In January the project sold out within days generating sales of Dh1.6 billion, according to the developer. It

highlights “significant demand for well-priced land on which to build a bespoke home”, Aldar said this week.

Mr Al Dhiyebi told The National in January the company would launch two further schemes – one of them ahead

of Cityscape – to tap into demand for land plots, as real estate market sentiment buoys on government economic

stimuli in Abu Dhabi.

“We know there is pent up demand for this type of product, and the runaway success of Alreeman supports that,”

the chief executive said in his statement.

Aldar is luring prospective buyers with the offer of a 5 per cent down-payment and favourable ongoing payment

plan.


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EXECUTIVE TRAVEL: PEARL ROTANA

CAPITAL CENTRE IS JUST THAT - A PEARL Tuesday, April 09, 2019

If a $790,000 per night holiday in a space hotel is beyond your budget, the UAE is home to numerous somewhat

cheaper Earth-bound facilities that offer an out-of-this-world stay.

One recent such arrival is Pearl Rotana Capital Centre in Abu Dhabi.

After hours walking its vast halls Abu Dhabi National Exhibition Centre visitors don’t have far to look for a hotel.

And with the arrival of Pearl Rotana Capital Centre they have three properties operated by a homegrown brand

from which to choose.

The four star addition joined the collection – within metres of two other Rotanas – a year ago, allowing it to get

match-fit for human floods from major Adnec fixtures such as Abu Dhabi International Petroleum Exhibition and

Convention (Adipec) in November.

Rotana is comparably smaller than its global rivals, but the hospitality group – also headquartered in Capital

Centre district - delivers surprising variety across an expanding network.

As demonstrated by Pearl Rotana’s near neighbours; youthful three-star Centro and elegant four-star Arjaan.

Pearl Rotana sits somewhere between the two, majoring on cool luxury finishes with an executive-friendly lean.

It offers seven meeting/boardrooms, some combining for flexible space. Presentation aids are available, including

LCD projection systems, microphones and a music system with 16 channel mixing console.

Sustenance comes courtesy of a catered on request breakout area and close proximity to all-day international

dining restaurant, Saffron.

The business centre offers secretarial support, although seems small for a building with 315 rooms and suites.

That said, armed with laptop and smartphone - plus high-speed internet throughout - everywhere is potential

workspace.

Architects perhaps had that in mind when they incorporated the Club Rotana Lounge. This airy space is dedicated

to guests staying on the Club Rotana executive level, offering complimentary drinks and snacks at various times.

Deep windows give stunning views across the Arabian Gulf and towards the Corniche skyline, making it a prime

spot in which to unwind or meet associates.

There’s also a dedicated glass walled boardroom for more formal meetings – made private using blinds.

Those views also grace some Club Rotana rooms, where the generous space is given lots of light by floor-to-ceiling

windows.

Fresh, stylish décor and furnishings are modern without being cold, the careful use of beige and grey offset by a

purple carpet.

A sumptuous bed faces a large flat screen TV. Beside this is good desk space at which to work, with power and

sockets and USB points in strategic spots, plus a two-seater sofa and another table from where you can perch

your laptop.




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There’s a sizeable bathroom with tub and shower while other facilities include a fridge minibar, hairdryer, tea and

coffee facilities

The room service menu accesses the hotel’s F&B outlets to offer an impressive choice; including continental

breakfast (Dh85), Caesar salad with chicken (Dh70) and margherita pizza (Dh75).

On the top floor, Bodylines Fitness & Wellness Club is stocked with the latest Life Fitness cardio equipment, plus

free weights. Treadmills are strategically placed for a distracting sea view for those who find running a chore.

A sauna, steam room and massages are available for post workout relaxation, all sharing the level with an outside

pool.

Flanked by loungers, an artificial grass area, plus a bar, the pool isn’t really designed for serious lane swimming,

but you could count a few off during quieter times.

The lobby embraces an attractive mix of modern and traditional colours contrasting designer furniture and

combining with artistic flourishes to give an up-do-date feel without abandoning comfort and location.

There are four F&B opportunities, including industrial loft-styled wine and tapas bar The Warehouse - think

flatbreads, sliders, sausage by the metre, Lebanese sujouk, spicy tuna poke tacos – and Dino’s Bistro Italiano,

which follows a largely traditional path with fun flourishes.

Besides plenty of seating inside and out is a private dining area, with business groups in mind. Dino’s serves a

business lunch, noon until 3.30pm, weekdays.

Add in Saffron and Chai Lobby Lounge, and the hotel has plenty of culinary bases covered.

“Due to its location, Pearl Rotana caters primarily to the business and conference sector, being a few steps away

from Adnec,” says hotel general manager Karim Nahas.

“The variety of food and beverage outlets caters for both business and leisure visitors. Additionally, location

provides easy access to most attractions in the city.”

With several already established hotels on its doorstep – including Aloft, Premier Inn and Andaz Capital Gate

(formerly Hyatt Capital Gate) – Pearl Rotana has had to make its presence felt.

“The hotel has managed to position itself amongst the competition,” says Mr Nahas, admitting this was “certainly

more challenging for the opening to establish ourselves and become known in the market.”

But the GM confirms his hotel was full during Adipec and the SIAL Middle East food, beverage and hospitality

exhibition at Adnec in December.

While Pearl Rotana is effectively going up against two other hotels in the Rotana family, visitor numbers for some

Adnec events would suggest there’s plenty of convention traffic to go around; Adipec alone drew 145,000

attendees during its four-day November stint.

That in mind, this new addition - about 20 minutes from Abu Dhabi International Airport - is also likely to be

grabbing footfall that would have previously ventured to hotels further out from Adnec.

And while the new kid on the blocks caters to strong business customer flow, its distinctive F&B offerings and

sophisticated styling readily translate to a leisure audience that can usually benefit from lower rates when there

are no events across the street.

Business Escape packages, including buffet breakfast, premium internet, complimentary local calls, daily

newspaper, two pieces of laundry/dry cleaning each day, and one hour meeting room use, cost from Dh279 (plus

taxes) based on 2 consecutive nights minimum booking. Club Rotana Rooms cost more.





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Page 50



IS AFFORDABLE LUXURY THE ANSWER FOR

ABU DHABI'S PROPERTY MARKET? Friday, April 12, 2019

Exhibitors at Cityscape Abu Dhabi, which takes place in the UAE capital next week, have identified the emirate’s

emerging trend for affordable luxury housing to solve a disconnect between developer preferences and buyer

demand.

The trend, say industry experts at Cityscape Abu Dhabi, which will run at Abu Dhabi National Exhibition Centre

from April 16-18, could see the capital’s real estate landscape veer away from ultra-luxurious vanity projects to

more affordable homes that are stamped by build quality.

Global real estate services provider Savills said the Abu Dhabi scenario is not unique to the region and could be a

weathervane of things to come.

“There are currently some challenges in the real estate market that are not limited to the region and should not

be looked at in isolation. Irrespective of the overall sentiments, projects that offer the right product at the right

price are finding favour with the buyers. This highlights that there is sustained demand for good quality real

estate,” said Steven Morgan, CEO Savills Middle East.

“The real estate market is still facing a mismatch of demand and supply. Developers focus on luxurious projects

and the numbers of such accommodation is steadily increasing when the real demand is shifting towards

affordable housing,” he added.

Dubai-based Binghatti Holding said developers could be missing a trick and losing out on increasing demand for

more affordable yet quality accommodation if they fail to adapt.

“The Abu Dhabi real estate market has gained a lot of attraction from investors interested in low price inventory

due to higher expected yields and flexible payment plans offered by developers, so it is a ‘buyers’ market,” said

Muhammad Binghatti, CEO and head of architecture, Binghatti Developers.

The company, said Binghatti, is looking to “redefine the regional norms by delivering reasonably priced high-

quality products and services in a timely manner.”

Binghatti, which operates 40 projects valued at more than AED3.5 billion, throughout Dubai including Business

Bay, Dubai Silicon Oasis, Dubai Marina, Jumeirah Village Circle, Liwan, and Dubailand Residence Complex, is now

turning its attention to the UAE capital.

It plans to launch its Dubai-based Binghatti Gateway’ project to local and international investors at Cityscape Abu

Dhabi.


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Page 51



AL AIN ZOO PLANS MAJOR PROJECTS IN

TOURISM PUSH Saturday, April 13, 2019

Al Ain Zoo has started construction work on three new major projects including the Elephant Safari, the Gorilla

Sanctuary and the Sand Cat Conservation Centre.

The African Elephant Safari project will be spread over 24 hectares, and will also include shelters, sheds, an

African village, lions’ exhibits, and African-style lounges.

These spaces will offer the visitors the opportunity to enjoy the safari remotely via an observation tower that

spreads over 1.31 hectares, state news agency WAM reported.

The Gorilla Sanctuary will extend to 10,000 square metres in the area that was previously dedicated to the late

gorilla, Lady, who spent more than 40 years at Al Ain Zoo.

The project includes three indoor and outdoor exhibit areas and passageways reflecting the Western lowland

habitat, allowing visitors to view the gorillas in their natural habitat.

The improved Sand Cat Conservation Centre aims to provide breeding programmes for sand cats and other local

species as well as research programmes to protect and preserve them.

The centre highlights the global efforts of Al Ain Zoo and its role in the endangered Arabian Sand Cat breeding

programme. There will be interactive areas for visitors and passageways where the Fennec Fox, Jerboa, Scorpions

and Snakes are exhibited along with the Sand Cats, covering a total area of 706 square metres.

The projects are part of plans that aim to transform Al Ain Zoo into a "unique tourist destination".

Omar Yousef Al Blooshi, director of Marketing and Corporate Communications at Al Ain Zoo, said: "The three

projects will be made available to visitors over the next two years and are primarily a reflection of the Zoo’s vision

for global leadership in wildlife conservation by supporting and promoting conservation programmes and

providing pioneering wildlife expertise.

"Our focus will be on raising the future generations’ awareness of the issues addressed through a series of

programmes based on creative education, interaction and discovery."


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Page 52



LANDMARK GROUP TO OPEN NEW OASIS

MALL IN SHARJAH Sunday, April 07, 2019

Oasis Mall to open with 45 retail stores, including Carrefour, Home Centre, Emax, Max and Fun City

The retail and hospitality conglomerate said the mall, located on Al Wahda Street, will have over 45 retail stores -

including Carrefour, Home Centre, Emax, Max and Fun City - spread over a total area of over 650,000 square feet

across three floors.

The retail and hospitality conglomerate said the mall, located on Al Wahda Street, will have over 45 retail stores -

including Carrefour, Home Centre, Emax, Max and Fun City - spread over a total area of over 650,000 square feet

across three floors.

The retail hub will also include a 10-screen cinema operated by Cinépolis – the first entry to the UAE market for

world’s fourth largest cinema operator, which also has a cinema in Bahrain.

Aarti Jagtiani, group director, Landmark Group, said, “We recently opened malls in Oman (Sohar) and Bahrain

(Juffair) and now with the addition of this mall [in Sharjah], we are expanding our footprint to 10 malls across 4

countries. In line with our brand promise, the mall will cater to the local community and serve our customers with

a complete and convenient retail experience, where they can shop, meet and socialise.”


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Page 53



RAS AL KHAIMAH RULER LAUNCHES

CONTEST TO CREATE 'UNIQUE' RESORT Wednesday, April 10, 2019

The ruler of Ras Al Khaimah, Sheikh Saud bin Saqr Al Qasimi, has aunched a competition which aims to create a

new resort that is unique to the emirate.

Launched at the annual Arabian Hotel Investment Conference (AHIC), the Grand RAK Project competition is open

to delegates registered at the event.

Sheikh Saud said: “We support projects and concepts that spark creativity and place Ras Al Khaimah at the

forefront of the tourism sector.

"Sustained growth is already the hallmark of Ras Al Khaimah’s tourism industry and we seek to ensure this

continues by utilizing our strategic tourism plan to reach well-defined targets.”

Working in teams combining hotel designers and operators, entrants will have three months to prepare a

preliminary concept vision supported by a high-level feasibility appraisal.

Entries will be judged on commercial feasibility, innovation and sustainability. Three shortlisted operators will

receive $25,000 each as a contribution towards their final submission, due in November, when the winner will be

announced.

The winning project will be allocated a coveted beachfront location.

The judging panel for The Grand RAK Project includes Abdullah Al Abdooli, managing director and CEO, Marjan,

David Daniels, director of architecture, SSH, Filippo Sona, managing director, Global Hospitality, Drees & Sommer

and Kevin Underwood, principal, HKS Hospitality Group.


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Page 54



INDIA'S SAMANA GLOBAL SERVICES LOOKS

TO EXPAND RETAIL OPERATIONS IN GULF

REGION Sunday, April 07, 2019

Samana Global Services, the hospitality arm of Kerala-based Samana Global Business Solutions group, is set for a

major retail expansion for its spa, Ayurveda healthcare and food and beverages businesses in the Indian and the

Middle East market, a senior executive of the group has said.

In an exclusive interview with Arabian Business, S Vinay Nair, chief operating officer of Samana Global Services,

said the group has set a target of opening 15-18 retail outlets across the two markets by next year.

Nair said the hospitality firm will also expand its brands in spa, Ayurveda (form of Indian alternative medicine) and

F&B businesses - under the brand name Apollo Dimora - in their existing and proposed hotel projects in Saudi

Arabia and Oman.

“We have just finished the market feasibility study for the proposed retail expansion of our range of businesses

under the hospitality vertical and will start talking to owners of malls and other property owners, both in UAE and

some of the leading Indian cities from next month for opening our retail outlets,” he said.

Currently, Samana operates its spa, Ayurveda and F&B businesses in its hotels in Kozhikode (Calicut) and

Thiruvanthapuram (Trivandrum).

“After experiencing a very good response to these businesses and developing their brands, we have decided to go

retail with these brands. We will be launching our retail expansion plan in the UAE and India market from next

month onwards,” Nair said.

GCC partners

Nair said the group will look for financial partners in UAE and other GCC countries for the retail ventures of its

spa, Ayurveda and the F&B businesses.

“The initial investments for the retail expansion plans in the UAE market will come from $560 million alternate

investment fund (AIF), which we have launched in Abu Dhabi in December last year. However, we will also be

looking for financial partners in these countries for speedy roll out of our retail outlets,” he said.

Nair said the group has signed a management contract under its Apollo Dimora brand for a 106-room hotel

project in Riyadh and is currently in negotiations with developers in Ghala (Muscat) and the port city of Duqm in

Oman for hotel projects in the sultanate.

“Though our focus will be to take management contracts for running hotels in the overseas markets, we are also

open to acquisition or joint development of Greenfield hotel properties in GCC. It will depend on the kind of

opportunities which will come up,” Nair said.

Targets

He said the group has set a target of reaching 1,000-rooms in the hotel segment by 2020, from its current 400

rooms.




Page 55



“We are looking at multiple options in GCC – besides Oman, we are also looking at opportunities in Dubai and

Sharjah – for the hotel projects as we need to achieve the target of reaching 1000-room in another year’s time,” he

said.

Samana Global Services runs its spa business under the brand name ‘Layer’, while its vegetarian restaurant chain

is branded as Vega Timora and coffee shop chain is branded as ‘Coffee Hive’.

The group runs its Ayurveda healthcare vertical, comprising of both Ayurveda-based treatment and Ayurveda

Knowledge Centre, under the brand Samana Global Ayrurveda Village. It has tied up with Dr Ram Kurmar, a well-

known Ayurveda doctor in South India, for its Ayurveda Village project in Kerala.


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Page 56



UAE RETAIL GIANT EYES NIGERIA TO SET UP

LOGISTICS HUB Sunday, April 14, 2019

UAE-based retailer Lulu Group International intends to set up a sourcing and logistics facility in Nigeria to export

local agricultural produce to its various operations across the GCC, India and Far East.

The plan was discussed during a meeting between Muhammedu Buhari, President of Nigeria, and Yusuff Ali MA,

chairman of Lulu Group during the Annual Investment Summit being held in Dubai.

Buhari urged Yusuff Ali to invest in his country, saying: “Come to Nigeria and prosper and have handsome returns

on your investments, within the shortest possible time."

Yusuff Ali briefed the Nigerian President about Lulu’s activities and expressed interest to work with Nigerian

farmers to promote local produce and to ensure food security.

“We are also interested to sign contract farming deals with local farmers and entrepreneurs to help supply fresh

vegetables and fruits to our hypermarkets worldwide,” said Ali.

A high level team of Lulu is expected to visit Nigeria soon for further discussion with authorities.

“Discussions were held to invest in Nigeria’s retail sector by Lulu Group and more importantly to invest in local

agricultural products and help to market them worldwide will be extremely beneficial for the local farmers”, said

Geoffrey Onyeama, Nigerian Foreign Minister after the meeting.

Lulu currently has similar facilities in other African markets such as South Africa and Egypt.


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Page 57



ROUBINI: SEVEN REASONS WHY THE

GLOBAL ECONOMY COULD IMPROVE THIS

YEAR Thursday, April 11, 2019

Bahrain//There are seven reasons why the global economy will continue to grow this year and not slip into a

recession, according to Professor Nouriel Roubini, one of the world’s leading economists.

First, growth in China has stabilised, second the chances of a trade war between Beijing and Washington have

receded and third, there will now not be a "hard Brexit" between the UK and Europe.

Also, the US is likely to negotiate with major car exporting countries and not introduce tariffs on their vehicle

imports. Fifth, leading central banks, including the Federal Reserve, have paused their interest rate hikes. Sixth,

stock markets have started to rally after a difficult period at the end of last year. Finally, the risk of domestic

instability in America as a result of any volatile behaviour from President Donald Trump is contained, Prof Roubini

said.

“In all these dimensions, [if I had to say] how, depending on these factors, things can really go bad or can improve,

I would say marginally improve. Still new mediocre, synchronised global slowdown, not a great global economy

but, hey, as long as we can avoid a crash or recession, it is good enough, right? I would take that,” he told The

National on the sidelines of Mediaquest’s Top CEO forum in Bahrain on Thursday.

The professor of economics at NYU’s Stern School of Business – he is also chief executive of Roubini Macro

Associates – became famous after his prediction of the financial crisis, several years before it happened, turned

out to be correct. For this, he has sometimes been referred to as "Dr Doom" in the media. However, he is

currently not making any gloomy forecasts.

Even if, this week, the IMF revised its expectations for economic growth this year lower, to 3.3 per cent, on a

slowdown in China and trade tensions.

Having been to China recently, there is some “good news”, Prof Roubini said.

“I’ve just spent a week there, they’ve done another stimulus, growth is going to stabilise. So all in all, China is not a

source of additional concerns. I was just in London, for three days, you know in Europe they were about ‘hard

Brexit’. I know one thing for sure, there will not be a hard Brexit. Whether ‘soft Brexit’ or reversal [on leaving

Europe] or second referendum, we don’t know. But neither side can afford something that is going to lead to a

trade shock, a business confidence shock, financial market shock, so that’s good news for Europe and the world.”

Equally, US policies are not going to be a major source of global volatility, he said. Financial markets dismiss Mr

Trump’s tweets as just “noise” and while his actual policies “are not great they’re not totally disastrous”, Prof

Roubini said.

“Until the election, my view is, he wants a stable economy, he wants a dovish Fed. He wants a stable stock market,

he doesn’t want massive trade wars. He’s not even going to do another government shutdown. He’s going to

make noises about migration and the border but he’s not going to shut down the border. So, you know, he can

talk and bark but as long as he barks and he doesn’t bite, the US is sort of growing 2 per cent. That’s good enough.

So the Trump risk is also contained.”




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Prof Roubini is in favour of technological innovation and globalisation but “we forgot that there are winners and

there are also some losers”.

“The losers become a bigger number, they are getting noisy, they’re getting politically organised and they are

saying ‘we are getting left behind and that is not acceptable’.”

As a result, inequality – both of income and wealth – is the key issue that governments in both advanced

economies and emerging markets will have to address in the coming decades “otherwise you will have

revolution”.

“Growth has to be inclusive, if it is not inclusive it is going to lead to instability. There isn’t a simple answer but

even billionaires all over the US are saying ‘either we address the ills of Wild West capitalism or otherwise we will

have instability,' so there is an awareness. This is a starting point.”

The urgency of this task is highlighted by the heightened antagonism towards migrants and minorities across the

world, amid the rise of populism. If more economic opportunity is not created soon then these “ugly feelings” will

spill over, Prof Roubini said.

“It is unfortunate, hopefully it is going to remain contained, and these ugly forms of excessive nativism are not

going to become dominant. If they become dominant it’s very dangerous.”

In emerging markets, the outlook is also broadly – if cautiously – optimistic, he said.

“If the US, Europe and Japan, the advanced economies, are fine, emerging markets, economically, are also fine.

There are political uncertainties in many countries in the world, that’s true. Emerging markets to me look

reasonably stable."

In India, where voters started to go to the polls today in nationwide elections, it is likely the Prime Minister

Narendra Modi will win again.

“Even if he were to lose, it is not like the other side is going to radically change the economic policy,” Prof Roubini

said.

He said that the countries to be wary of were ones which had economic and policy uncertainty, such as Turkey.

“Medium term, Turkey can be a success story. Argentina has serious economic difficulties. Brazil and Russia in the

last two years were weak but now look like they are recovering.

"All in all, I would say compared to some of the political dysfunctionality in some advanced economies; gridlock

we have in the US, the UK, some of the populists that are in power in Europe, the average emerging market, it’s

ok, with some exceptions.”


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Page 59



UK INVESTMENT FIRM SAYS UAE BUYERS

UNFAZED BY BREXIT Saturday, April 13, 2019

UK investment property companies are maintaining their focus on the UAE market despite Brexit uncertainties,

with one major player targeting UAE-based buyers at Cityscape Abu Dhabi.

Salboy Ltd, which specialises in private equity investment, property development and construction, is currently

investing heavily in the regeneration of the UK city of Manchester in light of the Northern Powerhouse initiative by

the UK government to boost the local economy by investing in skills, innovation, transport and culture.

The firm said it believes that UK real estate products will resonate well with regional buyers and argued that UAE-

based investors remain unfazed by political developments in Britain.

“Attendees at Cityscape Abu Dhabi are knowledgeable, experienced and curious about the best way to expand

their UK property portfolios,” said Kevin Eyres, sales manager, Salboy Ltd. “We are bringing to the exhibition our

portfolio of developments through our construction company, Domis Property Group, which has already proven

to be a big hit with investors.

“Past experience tells us that a good investment opportunity from a developer with a notable track record in an

up and coming UK city is incredibly attractive to Cityscape Abu Dhabi attendees. We anticipate that this year will

be no different as we have an outstanding offering.”

The post-Brexit real estate prospects will be in focus at Cityscape Abu Dhabi Talks, which will run on the exhibition

floor at Cityscape Abu Dhabi 2019 at Abu Dhabi National Exhibition Centre (ADNEC) from April 16-18.

James Lapushner, managing director of the real estate private equity and fund management company Anacott

Capital, will be taking Cityscape Abu Dhabi Talks delegates through the realities of UK real estate financing post

Brexit, while the changing landscape of the London investment market will be outlined by Phillip Hope, partner

and head of real estate at City of London business law firm Fox Williams LLP Lawyers.

“For many years, the UK market has been high on the investment list of UAE investors and the Brexit issue raises

many questions for both existing and potential owners,” said Chris Speller, Cityscape group director at Informa

Exhibitions, which organises the event.

“The Talks series will help dispel some myths and put realities into perspective.”

Cityscape Talks includes seminars with renowned experts from various real estate segments such as maximising

investment, market trends, the digital technology influencing real estate markets and sales, and the technology

disrupting the way people buy property.

Exhibitors from more than 60 countries are expected at the three-day Cityscape Abu Dhabi and is expected to

attract up to 15,000 industry professionals and buyers.


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Page 60



HOTEL DEMAND OUTPACING SUPPLY IN

INDIA, STUDY SHOWS Sunday, April 14, 2019

India's hospitality sector is expected to see a 9.5 percent growth in revenue per available rooms (RevPAR) this

year, with demand outpacing supply of hotel rooms, according to a new study.

The hospitality sector in India is also set to see growth in hotel asset transactions in 2019, with the total

transaction volume projected to reach $800 million by the end of the year, the study by HVS Anarcok, a leading

real estate research firm, said.

“Considering the limited new supply projected in 2020, the hotel industry can record its highest-ever recorded

occupancy and is expected to outpace 2006, which was a superlative year for the hotel industry in India,” said

Mandeep Lamba, President (South Asia), HVS Anarock.

Lamba said although the ongoing general elections could dampen some of the sector’s otherwise upbeat

performance this year, the tide could recover in India's hospitality sector later this year with the aid of a stable

government post-elections to support the required economic growth.

The report, which analysed trends of the past three years, suggest a 'new normal' in the Indian hospitality

industry, with brands opting for less risky projects with the highest prospects for timely completion, rather than

greenfield projects which pose a higher risk of cancellation.

International operators continue to proliferate, building large-format hotels compared to the majority of their

domestic peers, who typically churn out lower-inventory products.

In 2018, international hotel operators also signed more hotel keys than their domestic peers, the report noted.

At the city-level, the south western Indian state of Goa saw the largest signing of keys in 2018, outpacing

Bengaluru.

Goa is normally considered to be a high-entry barrier destination and has previously seen much slower growth in

inventory - even though it has been the top-performing market for a very long time, according to Lamba.

The report revealed that 2018 was a slow year in terms of hotel investments, with total hotel transactions

volumes in dollar terms contracting to their lowest since 2005 – from $158 million in 2005 to a mere $78 million in

2018.

However, in terms of Indian Rupee value, the total transaction volume recorded was 6 percent higher than in

2005.

Rapid urbanization is increasingly making Tier 3 markets in India more relevant for hotel brands, with nearly a

third of new hotel signings emerging from these cities, the report said.

The trend is also leading to more hotel management companies increasingly setting up shop in smaller towns.

On the asset transactions in the sector, the report said 2019 is likely to witness the sale of high-value hotel assets

in almost all key Indian hospitality markets.

“In 2019, we expect the Indian hospitality market to see an upsurge in transaction volumes due to distress pricing

of hotel assets,” said Shobhit Agarwal, MD &CEO of Anarock Capital.




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The expected transaction volume is approximately $800 million, potentially setting a record for hotel transactions

in the country, he said.

The successful listing of the boutique hotel brands Lemon Tree and Chalet IPOs (initial public offerings), as well as

the recent transactions of hotels Keys and Leela Hotels portfolio is expected to prompt further investment in the

hospitality sector, the report said.


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Page 62



UAE'S DAMAC SECURES £175 MILLION IN

BANK FINANCE FOR VERSACE BRANDED

TOWER IN LONDON Saturday, April 13, 2019

Dubai: The overseas arm of Damac has secured £175 million (Dh840.43 million) to fund its residential 50-storey

project in London. These funds were raised from three lenders, including Barclays Bank, which acted as the UK

lead bank, Burgan Bank, and Emirates NBD.

The developer has also put in equity into the “Damac Tower’” project, which has not been revealed. “Damac Tower

continues to garner strong interest from customers seeking premium branded real estate in one of the most

desirable addresses in the world,” said Hussain Sajwani, Chairman. “Its success has encouraged us to seek the

next investment opportunity in London, which we are currently engaged in detailed discussion to secure.”

“Damac has been able to achieve close to 55 per cent in private residential pre-sales, in what has been considered

as challenging market conditions, with a significant development financing package in the UK,” said Raashed

Amin, CEO, Emirates NBD Bank, London Branch.

Damac Tower at Nine Elms will be the first in Europe to be designed in partnership with Italian fashion house,

Versace Home.

Source: Gulf News

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Page 63



With over 30 years of Middle East experience, Asteco’s

Valuation & Advisory Services Team brings together a

group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property sales

division with representatives based in UAE, Saudi

Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

BUILDING CONSULTANCY

The Building Consultancy Team at Asteco have a

wealth of experience supporting their Clients

throughout all stages of the built asset lifecycle. Each

of the team’s highly trained Surveyors have an in-

depth knowledge of construction technology, building

pathology and effective project management methods

which enable us to provide our Clients with a

Comprehensive Building Consultancy Service.

Documents

Week 15 - Asteco Property Management · SAUDI ARABIA'S UMM AL QURA TO BUILD HILTON HOTELS FOR MAKKAH PILGRIMS DUBAI ... $1.36BN JUBAIL ISLAND SANCTUARY PROJECT UNVEILED IN ABU DHABI