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‫‪www.rpdubai.com‬‬
OFFICIAL MAGAZINE
OF REAL ESTATE REGULATORY AGENCY

MANAGING EDITOR
K Raveendran ravi@sterlingp.ae

MANAGING DIRECTOR
Sankaranarayanan sankar@sterlingp.ae

GENERAL MANAGER
Radhika Natu radhika@sterlingp.ae

EDITOR
Linda Benbow linda@sterlingp.ae

Contributing Editors
Vanit Sethi vanit@sterlingp.ae
Message from the CEO
Manju Ramanan manju@sterlingp.ae

Creative Director
Harikumar PB harikumarpb@gmail.com
Trust and Listen

F
Designer
or the past three months, I have been meeting with all type of
Ujwala Ranade ujjwalaranade@yahoo.com
clients, investors, developers, and agents. Each one of them has
Sales and Marketing their own issues and complaints. However, all of them have two
things in common which keep coming up in their speeches: “trust”
Product Manager and “listening”.
Vijayan G vijay@sterlingp.ae
Investors have always said that they invested with a developer because “we
trust him”. The developer, as well, maintains that he started developing a
Accounts & Administration
project because of trust for the master developer. The agents rely on their
Biju Varghese biju@sterlingp.ae trust for developers and investors to pay their commission. So, it is all about
“trust”. This was at the beginning.
Circulation Supervisors Today, the tone has shifted and investors are saying that the developer is
Ibrahim A. Hameed “not listening to us” and “he is not communicating with us”. The developer,
Saleem K U on the other hand, is accusing the master developer of the same. The
developer says the investors are lacking trust and not listening to the
situations they are facing during these bad times. The agent has the same
story with their clients; they say clients aren’t listening to what we are
struggling through. This at the end. This is today’s situation.
Printing These small words, “trust” and “listening” have a great effect on peoples
Asiatic Printing Press L.L.C., PB 3522, Ajman, UAE. Tel. 06 743 4221, relations. To survive the storm, we should start listening to each other, keep
www.asiaticpress.com, trusting each other, and never ever lose trust in this great city whose soil
email: asiatic@eim.ae we’ve gathered together on.
Distribution: Tawseel PB No 500666
Dubai, UAE. Tel: (+971 4) 342 1512
Eng. Marwan Bin Ghalita
Sultanate of Oman: Al-Atta’a Distribution Est., Kuwait: The Kuwaiti
Group for Publishing & Distribution Co.Bahrain: Al Hilal Corporation, CEO, Real Estate Regulatory Agency
Qatar: Dar Al-Thaqafah, Saudi Arabia: Saudi Distribution Company

Sterling Publications FZ LLC Loft Office 2, G 01, Dubai Media City


RERA neither takes responsibility nor accredits any P.O. Box 500595, Dubai, UAE. Tel. +971 4 3678061 + 971 4 367 2245, Fax +971 4 367 8613
studies, research or statistics that are not issued by it. Website: www.sterlingp.ae Email: info@sterlingp.ae
Overseas offices: India: Anand Vardhan, DII/89,
Pandara Road, New Delhi, 110003. Tel: 0091 1 26517981
Bahrain: Sunliz Publications W.L.L, PO BOX 2114, Manama,
Kingdom of Bahrain. Tel: 00973 17276682
payment schemes and mortgages

CONTENTS

3 Open Day Meeting the public


4
Project Indicator Progress photos are on website
6 Valuations Regulating the Valuers
9 Affiliations RERA joins global associations
11 Statistics Figures for the month of May

8 PERSONALITY MAHMOUD HESHAM AL BURAI

31 Dubai Focus Auctions


32 Community Events Cricket, diet and awards
34 Events Architecture awards
35 Launches Dubai Pearl’s hotels
36 Under Construction Digging the dirt
DUBAI REAL TIMES

41 Infrastructure Plumbing new depths


44 Environment Painting a clean picture
45 Appointments Restructuring top management
46 Law & Regulations Questions & Answers, Law 9
2
OPEN DAY

To improve communication
with customers RERA
launches ‘Open Day’
R
ERA (The Real Estate Regu- our CEO, in his pursuit of transpar- dite service.”
latory Agency)’s Guarantee ency, easing transactions of all He confirmed that the number
Account Department has stakeholders in the real estate sec- of customers on Open Day, so far,
launched ‘Open Day’ to tor, guaranteeing customer satis- has increased to a total of 443, This “Every Tuesday
better serve its clients. This is the faction, and listening to all different policy has eased the pressure of the Department
first of many moves to enhance points of views of companies in the customer service on other days of
will meet clients
transparency and facilitate custom- real estate sector, the Guarantee the week, and has had a positive
er service. Marwan bin Ghalita, CEO account department has worked effect on customers because of (developers, banks,
of RERA said, “In an effort to apply to provide the sector with distin- the speed of communication and investors). There is
transparency in customer relations, guished customer service. We ap- the ability to have all enquiries an-
RERA is widening the arena of com- ply best practices, are aiming to swered by RERA’s staff.
a special counter for
munication between our staff and help clients solve their problems, Khalid Obaid Al Mutaiwei Senior this service to offer
customers. These Open Days will and to give good consultations for Director, Real Estate Development privacy in business
DUBAI REAL TIMES

be an entirely new form of commu- customers who are the heart and Trust Account Dept. said, “The pol-
nication. There will be Open Days soul of RERA.” icy of Open Day has opened a new
transactions.
for each department in the agency. Al Mansouri added, “Every Tues- and direct communication channel Moreover, we have
We began with the Guarantee Ac- day the Department will meet cli- with customers. This service pro- increased the number
count Department to answer all of ents (developers, banks, investors). vides a new source of information
the questions of investors, develop- There is a special counter for this about RERA services and eases en- of counters from are
ers and banks.” service to offer privacy in business quiries. Furthermore, RERA has im- to there in order to
Essa al Mansouri, Head of Trust transactions. Moreover, we have plemented technological tools to
expedite service”
Account Section said, “With the di- increased the number of counters increase the amount of time saved 3
rections from Marwan bin Ghalita, from are to there in order to expe- by customers.”
PROJECT INDICATOR

Progress (Masaar) What we have

on website found so
far - market
statistics:
If you want to know how a construction project is progressing look on the
RERA website, www.rpdubai.com, as the Agency has been busy checking • 85.3% of projects are still
progressing
documents, inspecting sites and uploading photos onto the Project
• 2.7% of projects are being
Indicator section for investors and other interested parties to look at. Essa completed
Al Mansoori, Head of Trust Account explained it all to Linda Benbow • 10% of projects are on hold –
DUBAI REAL TIMES

T
the developer is undecided
  he on-line Project Indica-
tor was established at the • 31.8% of projects are
beginning of this year, in
There are currently approximately 400 progressing but not yet on
January 2009. We carry out projects already uploaded on the website, site
technical audits on all registered with information on how far their construction
projects and follow up with these
projects every three months. There has progressed. We have now inspected over
4 is a technical team who is out in the 1000 villas and 350 towers.
field, physically visiting the sites,
meeting with Consultants, check- want.
ing contracts, agreements, build- There is a key to explain what
ing schedules and other docu- the various colours on the icon
ments. The team takes photos of mean. We have used traffic light
the site, they ask how the work is colours to simplify things, as there
progressing – whether there are are so many nationalities who have
any problems or reasons for on- bought and are willing to buy in
time/late work. Also, the devel- Dubai. Red means that the proj-
oper provides RERA with informa- ect is delayed. Amber, or orange,
tion, and we check this to make means that the project is progress-
sure that it is still correct. When all ing according to a revised sched-
the information (‘masaar’ in Arabic) ule, while green means that the
is collected the website is updated project is progressing on schedule.
within 24 hours. A black circle with a diagonal line
We are currently aiming to au- through it means that the project
dit 150-200 projects per month. is on hold and not progressing.
These will be reviewed every three There is a choice to either view
months in order to keep the infor- Essa Al Mansoori, Trust Account – Head of Auditing & Follow-Up the whole list of projects, or type
mation topical. We hope to have “We receive a lot of queries from people about transactions in the name of the project you are
all registered projects audited and conducted before RERA was set up, before the necessity of interested in and to see more de-
on the website by the end of July. Guarantee accounts. They want to know whether the monies for tails, i.e. the developer’s name, the
Then there will be a rotation, and the project have now been deposited into a Guarantee account. master developer, Trust account
we will start again with the updat- We tell them that their money has been adjusted. We have number and the name of the Bank
ing. looked at expenses, have consolidated all the money and the it is held at.
There are currently approximate- difference, if any, should have been deposited in the Guarantee If there is anything wrong with
ly 400 projects already uploaded account. If there is a deficit, then it means that the developer has the project, we flag it, mark the
on the website, with information recovered his costs. project on the website, so that in-
on how far their construction has We are communicating with the listed Account trustees (banks), vestors can look into the matter.
progressed. We have now inspect- sending forms for them to complete, have audited by independent We provide the information so that
ed over 1000 villas and 350 towers. auditors and then return to RERA by the end of July. These will be others are aware of what is hap-
The information is there for all to available for inspection” explained Essa Al Mansoori about future pening and they can deal with the
see. Just log onto the website to plans and regulations. information as they want to. This is
find out whatever information you a very transparent way of working
and we intend to keep it up.
Some companies have an ad-
vanced webcam system to show

 their own investors progress of their
own projects. We, RERA, take our
The
RERA
Progress
Indicator


 own photos for our own website.


 
 Here at RERA we have ‘Open




Tuesdays’ when members of the

 
 public can come to the offices at


 
 Land Department to discuss their
Progress
Bar


Bars
indicate
the
general
stages
of
construction

property problems. Many of them

as
follows:

 have already complimented us on
• A
completely
blue
indicator
bar
shows


that
the
project
has
not
started
on
site.

that
the
project
has
not
started
on
site.

 the website information, and say
• A
single
bar
shows
that
works
have


shows
that
works
have


started
on
site,
usually
enabling
works.

started
on
site,
usually
enabling
works. that it has meant that they have

• Two
bars
show
that
works
have


 made fewer trips to the heavily
progressed
into
the
main
contract.

progressed
into
the
main
contract.

• Three
bars
show
that
main
structure


congested area, not to mention
works
are
being
carried
out.


 clearing up possible problems and
DUBAI REAL TIMES

• Four
bars
show
that
structure
is
nearing


completion
and
other
external
and


external
and

internal
works
are
being
undertaken.

arguments before they became

• Five
bars
show
that
external
works
are


major issues. Usually, individual
mostly
completed
and
internal
and


completion
works
are
being
undertaken.
 investors cannot go onto building


 Green
Arrow:
 Works
are
progressing
generally
in
accordance
with
the
projects
original
schedule.
 
 sites, due to safety regulations, to
check on their investments, and


 Amber
Arrow:
 Works
are
progressing
generally
in
accordance
with
a
revised
schedule.



 Red
Arrow:















 Works
are
progressing
but
are
delayed
or
have
significantly
fallen
behind
schedule.
 they appreciate a government



 Black
Circle:














 Project
is
on
hold
and
not
progressing.
 entity doing the work for them. If



 Green
Diamond:






 Project
is
substantially
completed
subject
to
final
certifications
and
completion
certificates.
 there are any queries, I am happy




Blue
Tick:

 Project
is
substantially
complete.
 to receive and reply to emails as a 5
first step.
VALUATIONS

Taqyeem
By Linda Benbow

B
orn and bred in Dubai, from companies in the market who
educated in UK, Mohamad were approached for their opinions
Khodr Al Dah, has been the before drafting the laws. We have
Head of Taqyeem (mean- the support of major companies in
ing ‘Valuation’ in English) at the Real this field. There was recently a sign-
Estate Appraisal Centre for a few ing of an MoU (Memorandum of
months. In London, UK, he was a Understanding) with RICS (Royal In-
structural engineer designing build- stitute of Chartered Surveyors), UK’s
ings after gaining his degree at Ox- professional and well respected in-
ford. He openly admits that he is stitute, who is providing us with as-
not a qualified Valuer, but stresses sistance on various fronts.
that his engineering exerience has My previous work experience
helped him a lot in his new role. has been in the private sector, and
“Our job is to make sure that I am looking to run this government
professional Valuers in Dubai get department the way a private com-
licensed and that they undertake pany would be run. We are happy to
their work in a professional man- see people and listen to their views.
ner within a regulatory framework, “My work experience has been in the private No-one is absolutely right, nor ab-
which we will provide. We have solutely wrong. Patience is key at
drafted new laws which are cur-
sector, and I am looking to run this government the moment. Lots of companies are
rently going through the procedure department the way a private company would excited about this and want to reg-
of acceptance, including getting le- be run” says Mohamad Khodr Al Dah, Head of ister now, but we are not ready to
gal comments and responses from accept them yet. We will let them
various specialists in the real estate Taqyeem, Real Estate Appraisal Centre know when the doors are open.
market. When the laws are passed we
may organise a conference to tell
the property professionals about
Simply speaking, we have speci- them, and the publications we are
fied valuation Do’s and Don’ts, a currently working, i.e. Valuation
code of ethics along with a descrip- methods, Codes of conduct and
tion of who can register as a valua- other technical books.
tion company and as a Valuer. There It is interesting to see a bigger
will be two types of registrations: (1) picture. We are all small cogs within
a company (to ensure they have an a big wheel. My previous job was
office to work from, insurance etc.) to liaise with engineers, architects,
and (b) individual Valuers (working contractors and clients at the first
professionals). and second phases of building.
DUBAI REAL TIMES

We will be organising courses to Now, I am seeing things at a third


inform companies of the new laws. stage, when the building has been
We will also be organising other completed; and we are trying to
courses for under-graduates, young regulate those who must put a val-
people who want to enter the trade, ue on it. It’s a different stage of the
those who want to change careers, procedure.
etc. It will aim at giving people the I have worked for a long time
appropriate qualifications and li- abroad and am quite used to a
6 censing. regulatory, rigorous and systematic
We already have applications way of carrying out procedures, es-
pecially in the building trade. That be needed, especially in the early es which will explain our laws and think that we just provide courses to
ethos and mentality has helped me days of our work. our regulations. These will be inter- make money. This is not so. We wish
do the job that I am doing now. As We have been in touch with an national qualifications which can be to follow good, well thought out
well as drafting new application international institute with the aim carried from country to country. laws in a transparent manner. And
forms, I have also drafted a com- of providing accredited qualifica- Hopefully this will prove our that is exactly what we, and those
plaints form as I know that both will tions to those who attend our cours- good intentions to those who may who work in this country, will do.”

Real estate valuation lation, so the price of a house varies depending on many factors. The
basis of a real estate valuation process is to convert the property value
Real estate valuation is the cornerstone of the real estate sector as to a price, in terms of money, and establish the value of the capital
property is one of the most important factors that affect the lives of which is the main engine of the process of economic development.
individuals as well as the economy. The rates of lending, borrowing,
buying, selling, investment and acquisition decisions depends directly Real estate evaluation:
on the process of transforming the property into money. Real estate evaluation forms the basis for all activities on the surface of
land, one of the mainstays of the real estate market, as well as survey,
The concept of real estate: registration, use of land on the basis of an integrated legal system.
Real estate is everything that is related to land, building or both. Real This includes the value of land, building and construction costs. The
estate law has been based on everything that is present on land, fixed opinion of an independent expert who follows the principles on pro-
or otherwise and cannot be transported without damage or change fessional and scientific foundations and methods of regular and var-
to the structure. So the law covers not only the soil surface but also ied access to the assessment of the property, whether the property or
the horizontal or vertical structures above or below the surface except plots of land is occupied by any type of construction such as housing,
water which is governed by other laws. The ownership, according to commercial, industrial, etc., is of utmost importance.
the theory of the inverted pyramid or the carrot, contains not only The real estate value depends on various factors such as area, lo-
the surface, but extending from the centre of the land surface to the cation, type, use of property, title of ownership, size, condition, legal
specified limits and signs, with the exception of the natural deposits status in terms of transfer of ownership, market conditions, supply, de-
DUBAI REAL TIMES

such as oil, gold, other valuable minerals etc., and with some limita- mand and many other data for an accurate appraisal of the property.
tions in relation to height of structures. Failure or mistakes in accurate assessment or appraisal of the real
estate valuation can result in serious risks. The fact is that a real estate
The concept of the price: valuation, in the absence of oversight by competent authorities, may
The price is the standard defined by the value of money. Capitalist make people turn to non-specialists whose wrong appraisal methods
economy is based on the principle of the price, meaning that there is a can result in wrong prices to cause random turbulence in property
price for everything and there is no economic activity without a price. markets that can ultimately affect the global economy. The service of
Price of capital is assessed the way things are distributed, for example, professional real estate appraisers shall limit such anomalies in real es-
the number of houses in the world is not enough for the entire popu- tate market. 7
RERA PERSONALITY // PROFILE

The core of
About his weaknesses, Mah-
moud claims his faults are hasti-
ness and the contradictions which
is so typical for anybody in their

the matter
20's. And he is really proud that he
doesn't recognise the impossible,
he trusts his abilities and he cares
about people around him. He is
always moving forward, he doesn't
By Amal Abdul Rahim Al Sahlawi look back except for trying to learn

I
t doesn't take much time to a lesson from the past. He always
realise how ambitious and mo- Mahmoud al Burai quotes HH Shaikh Mohammed, "in
tivated Mahmoud Al Burai is. the day there are 86,400 seconds. If
Just by looking at this record of the market, and monitoring what to achieve his vision. The leader you cannot invest every second then
achievements you quickly get the Dubai can continue to do in order has a quality that makes him natu- you should leave the place for some-
impression that this man who is still to become the number One refer- rally influential over others, and body else". His ambitions make him
in his twenties is continuously a step ence for real estate globally. By holds such a vision that he may be a sleepless but he always tries to find
ahead with regard to achieving his joining RERA as the Director of Real leader even if without a title. A true time for friendships, watching mov-
vision for Dubai. Moreover, he will Estate Sector Development, Mah- leader doesn't have anything to do ies and reading. He loves poetry
clearly stay in the forefront even if moud felt that it was time to apply with position or scholastic achieve- and thinks he has good taste in lit-
faced with a tornado of challenges. all he has learned in his studies and ments. This mentality is reiterated erature. Mahmoud is also a skilled
Mahmoud al Burai is one of the help create a stable real estate mar- by His Highness Shaikh Moham- Arabic hand writer.
pioneering leaders who joined ket that offers fair opportunities for med bin Rashid al Maktoum, Ruler On another level, Mahmoud cher-
RERA, which is full of many young, all the stakeholders in this sector. of Dubai, who has given many dif- ishes his gift of reading and know-
promising thinkers. He landed the By joining the pioneers of real ferent distinguished meanings to ing people well. At the moment he
position of Director of Real Estate estate regulation, Mahmoud start- a ‘leader’. HH Shaikh Mohammed is studying for his MBA with a strong
Sector Development. Mahmoud's ed the initiative for strategic part- has revolutionised and changed focus on Finance. I asked him what
department is considered the core nerships with many international the way people typically think of a words he feels can best explain him.
that RERA relies on to make impor- real estate associations, taking RERA leader and what constitutes good He said ‘”a vision for the future". His
tant decisions related to regulating global. He became a member of a government management. ambition makes him want to always
the real estate sector, especially dur- number of these associations, such Upon mentioning HH Shaikh look to the future and look for the
ing these critical times. His depart- as ARELLO and truly represented Mohammed, one can easily see how best in tomorrow.
ment is also the most trusted source Dubai well at their last conference Mahmoud has been influenced by Family is the chief reason for the
for developing the knowledge and in the USA. The way he views RERA His Highness' journey. He is proud successful, wonderful personality
expertise of real estate experts in is a combination of admiration, op- to be one of the generations raised that he has. He was raised in a home
Dubai. timism, and faith that this organisa- by the beautiful thoughts and ideas where no one settles for the norm.
Mahmoud graduated from the tion will successfully balance the His Highness has brought into so- He says that in life if you please God,
American University in Dubai, ob- modern day needs of the real estate ciety. This has always made Mah- if you work for your country, make
taining his bachelor's degree in sector while maintaining market moud a better achiever and a real your leaders proud of you, and make
Electrical Engineering. Immediately ethics and its traditional values. member in Dubai's development. your parents pleased, then you have
after graduation, Mahmoud worked Mahmoud quickly realised that Mahmoud always quotes HH Shai- heaven on earth.
for Dubai Holdings as a Real Estate the amount of responsibility RERA kh Mohammed, "the successful team What does Mahmoud dream of?
Development Associate, then was employees take on makes them who can make 1 +1 = 11 not 2". He said that he will be a student
DUBAI REAL TIMES

promoted to a Senior Strategic Ana- always cooperate, stick together to Because each success has chal- forever. That he will always listen
lyst. His passion for the real estate face the challenges of the real es- lenges, I asked him about these. He to and learn from life's experiences.
industry motivated him to continue tate sector. said that the first enemy of success He will always have a young heart
his studies and earn a Masters De- As a leader in RERA, I asked Mah- is fear. Sometimes, when people and that this will keep him one
gree in Real Estate Science from the moud about the elements that fear your success and talents, it step ahead. Achieving the vision of
National University of Singapore. each leader should have. He com- makes them stop giving you more RERA and Dubai will be Mahmoud's
Mahmoud is currently pursuing his mented that there is a huge differ- opportunities because they know dream that he is devoting his time
MBA at the American University of ence between a manager and a you will succeed/arrive there but and effort right now to accomplish.
8 Dubai. His passion became study- leader. While a manager may have they hope they can pull you back as He is not ready to give up on this
ing the strengths and challenges in authority, he cannot force people much as they can – out of jealousy. one yet.
AFFILIATIONS

Going global
Dubai’s Real Estate Regulatory Agency (RERA) has joined the sector’s leading standard setter
and global regulator the Association of Real Estate Law License Officials (ARELLO). The move
effectively completes a multi-phase process of turning RERA into an international agency and
a key player in the global regulation of the sector.

I
n recent months it has teamed Bin Ghalita, Chief Executive Officer
up with the five core organisa- of RERA, said: "As a result of our part-
tions responsible for regulating nership with these international en-
real estate affairs around the tities, we are able to announce the
world and it is shortly to announce biggest umbrella regulatory agency
the launch of the Middle East and operating in the region. This is only
North Africa real Estate Society (ME- the beginning. We are also in the
NARES). RERA is now part of the In- final stage of establishing MENARES
ternational Real estate federation to foster links between real estate
(FIABCI), the World Association of experts, professionals and govern-
Valuation Organisation (WAVO), the ment agencies across the MENA
Royal Institute of Chartered Sur- region. RERA is at the heart of the
veyors (RICS), the Asian Public Real actions which will provide a sound,
estate Association (APREA), and the effective and comprehensive regu-
Urban Land Institute (ULI). latory framework. It will underpin
Its affiliation with ARELLO was this by providing the necessary in-
DUBAI REAL TIMES

confirmed during a meeting in the frastructure which will ensure the


US recently when it became the region acts in concert with regula-
only ARELLO member from the re- tory authorities to apply global best
gion and it will spearhead initiatives practices and set the benchmark for
such as the District 6 meeting, which the region. We intend to progress
with members from the UK, Austra- from being the most transparent real
lia, Singapore, Hong Kong, South Af- estate market in MENA to becoming
“We want to build the best standards for us. We also want to build a mutually
rica and others, gather for a forum in one of the most transparent and rig-
beneficiary relationship with the rest of the regulatory authorities across the
Dubai later this year. orously regulated in the world." world,” said Mahmoud Hesham Al Burai, Director of the Real Estate Sector 9
Announcing the move, Marwan RERA is on the board of FIABCI, Development Department
which integrates it into the certified scale.
international real estate profession-
als' community in addition to real Asian Public Real Estate Asso-
estate courses offered by FIABIC ciation (APREA)
University. APREA is the trade association and
representative body for the Asian
Association of Real Estate Law real estate sector. Its membership
License Officials (ARELLO) has expanded to include neigh-
RERA ties up with global association to become a key
Headquartered in Colorado, in the bouring regions, including the Gulf.
United States, ARELLO is without APREA is a non-profit organisation player in the international realty sector regulation
doubt the most comprehensive focused on promoting real estate to
and influential association of real foreign investors, creating a unified
estate regulators across the world. real estate industry that embraces
ARELLO's chief members include best practices and the highest stan-
government regulators from the dards of excellence, and act as the
US, Latin and South America, the comprehensive voice of the real es-
Caribbean, Asia, Australia, Europe, tate sector. APREA members enjoy
Africa, and now with Dubai as its access to the most up-to-date data
newest member, the Middle East. and research, reports on various as-
To complement its efforts to rally pects of real estate across the Asia
together all entities associated with Pacific region, networking oppor-
real estate regulation, legislation tunities amongst industry experts,
and licensing, ARELLO additionally educational and training courses, as
boasts members from the private well as annual conferences.
sector including industry trade as-
sociations, exam providers, educa- Royal Institute of Chartered
tion content providers and training Surveyors (RICS)
institutions, as well as affiliate orga- RICS' brand is the ‘mark of property
nizations from real estate and allied professionalism worldwide’, and its
fields. Because ARELLO's member- mission is to train, license and cer- cally aligned with the MENEA chap- sation, IRES. IRES aims to encourage
ship is very global, the organisation tify surveyors and valuers in the ter of RICS based in Dubai. communication and cooperation
has divided its members into six property profession by maintain- regarding real estate education and
districts to facilitate conferences ing the highest possible standards International Real Estate Soci- research, encourage further devel-
and communication. Each District of excellence. RICS members work ety (IRES) / Middle East North opment of education and training
hosts an annual conference and in 146 countries and work in prop- Africa Real Estate Society (ME- globally, facilitate academic faculty
ARELLO as the mother organisation erty, construction, land and envi- NARES) exchanges and support research
hosts both a Mid-Year as well as an ronmental sectors. RICS provides projects in real estate on an interna-
Annual Conference. The mission of research, data, consultative services IRES is a federation of regional tional level.
DUBAI REAL TIMES

ARELLO is to foster communication and training to its members. RICS is real estate societies including the RERA is in the final stages of es-
between government regulators, frequently used as the benchmark American Real Estate Society, Eu- tablishing the Middle East North Af-
as well as the private sector, on a for excellence in surveying and ropean Real Estate Society, African rica Real Estate Society (MENARES)
very global scale to create fruitful valuation, and its chief publication Real Estate Society, Latin American with the mission of rallying real
discussions, find solutions to chal- The Red Book is globally accepted Real Estate Society, Asian Real Es- estate academics and profession-
lenges, create licensing and legal as the defining guide to survey and tate Society, and Pacific Rim Real als in both the public and private
reciprocity agreements that span valuation. Members enjoy access to Estate Society. Each society acts sector across the MENA region to
international borders, and create RICS resource library and database independently, but yet enjoys the foster communication, further aca-
10 uniform best practices for the in- of RICS' certified experts located international cooperation of each demic programmes and academic
dustry that are adopted on a global around the world. RERA is strategi- other through the umbrella organi- research.
STATISTICS

Land transactions on 4 June


T
he total value of land trans- for Dh88.897m. The next two most Emirates Hills Third area, Dh49.18m, cant of which was the Dh193.48m for
actions in Dubai during 29 prominent sales saw a second plot and Palm Jumeirah area, Dh44.5m. an area at Sheikh Zayed Road. There
May to 4 June peaked at in Emirates Hills Third acquired for The biggest area sold was the was another for Dh40 m on an area
Dh1.82 billion, of which sales the sum of Dh20m and another in 65,849 square feet in the Sheikh in Jebal Ali
exceeded Dh1.20 billion. The total Jumeirah First for Dh18m Zayed Road area, which went for Apartments and villas in free-
value of mortgages during the pe- The Emirates Hills Third area Dh88.9m. A 52,366 square feet plot hold areas witnessed the registration
riod was Dh623.12 m, according to was the most active in terms of the in the Mirdif area was acquired for of 683 sales transaction out of which
the Land Department. week's sales, with some 10 transac- Dh13m, while 38,068 square feet 647 were for apartments for a total of
A total of 52 sale transactions tions. Arabian Ranches followed it of Al Khabeesi was disposed of for Dh653.50m; and 36 for villas at a total
were registered with the Depart- with eight sales. Dh17.13m. sum of Dh88.48 m.
ment by the end of the week, the During the period, Sheikh Zayed During the period under review A total of 79 mortgages for
most valuable of which was a plot Road recorded the highest turnover 62 mortgages worth Dh417.66 m Dh115.22m were registered on villas
in Sheikh Zayed Road that was sold by value, at Dh88.9m, followed by the were registered, the most signifi- and apartments

Transactions on 11/06/2009

Property Type Transactions Value (Dh)

ExistingBuilding 8 63,138,638

Open Plot 1 697,000

Villas 19 43,531,075

The Emirates Hills Third area was the most active in terms of the week's
sales, with some 10 transactions
DUBAI REAL TIMES

A total of 52 sale transactions were registered with the Land


Department by the end of the week ending 4 June, the most
valuable of which was a plot in Sheikh Zayed Road that was sold
for Dh88.897 million
11
STATISTICS

Transactions and sales


during May 2009
Information provided by Real Estate Sector Development, Data Section
Total Transaction for the month of May/2009 was Dh16b Total value of land sales transaction (Dh m) Top 10
Land Flat Villa
Total number of 814 1966 145
transaction.
Total value (AED) 14,186 M 1,750 M 840 M

Total area (sq.ft) 17,692 thousand 2,053 thousand 439 thousand


Note: total transactions are represented by sales, mortgage, evaluation
…list of services

Land sales transaction



• Total number of sales transactions within the districts was 590 with a to-
Land mortgage transactions
tal value of transactions at Dh12.690million for 13,208 thousand square
feet. • Total number of land mortgage transactions was 205 with a total value
• Jebel Ali had the highest number of sales transactions with 268 sales. of transactions at Dh1,141million for 3,272 thousand square feet.
• The highest value of sales was achieved by Jebel Ali district with • Al Khawaneej First Districts had the highest number of mortgages with
Dh6,899million. 19 mortgage transactions.
• The highest area size was in Jebel Ali district with 7,239 thousand square • The highest value of mortgages was achieved by Sheikh Zayed Road
feet. district with Dh299million.
• The highest area size was in Sheikh Zayed Road district with 368
thousand square feet.

Total number of land sales transaction - Top 10 Total value of land mortgage transactions (Dh m) Top 10
DUBAI REAL TIMES

12 
 

Land Transaction Summary Villa sales transactions
Total No. Of Value Total Area
• Total number of mortgage transactions of the districts was 93 with a
total value of Dh143million 331 thousand square feet.

Sales
Emirates Hill 3rd had the highest number of sales which with 56 sales
Sales 590 12.690 M 13,208 thousand transactions.
Mortgage • The highest value of sales was achieved by Emirates Hill 3rd district with
205 1,141 M 3,272 thousand
Dh69million.

• The highest area size was in Emirates Hill 3rd district with 171 thousand
square feet.
Flat sales transactions
• Total number of sales transactions within the districts was 1,697 with a Total value of villa sales transaction (Dh m)
total value of Dh1,454 for 1,725 thousands square feet.
• Warsan First had the highest number of sales with 535 sale
transactions.
• The highest value of sales was achieved by Dubai Marina district with
Dh386million.
• The highest area size was in Dubai Marina district with 467 thousand
square feet.

Total value of flat sales transaction (Dh m)

Villa mortgage transactions


• Total number of villa mortgage transactions of the districts was 40
with a total value of Dh143million for 331 thousand square feet.
• Emirates Hill 3rd had the highest number of mortgages with 20
mortgage transactions.


The highest value of mortgage was achieved by Dubai Marina district
with Dh77million.
Flat mortgage transactions • The highest area size was in Dubai Marina district with 208 thousands
square feet.
• Total number of mortgage transactions of the districts was 122 with a
total value of transactions at Dh173million for 98,685 thousand square
feet. Total number of villa mortgages transaction
• Sheikh Zayed Road had the highest number of mortgages with 31
mortgage transactions.
• The highest value of mortgages was achieved by Sheikh.Zayed Road
district with Dh49.538 thousand.
• The highest area size was in Motor City district with 81,000 thousand
square feet.

Total value of flat mortgages transaction (Dh thousands)


Total value of mortgage transactions (Dh million)


DUBAI REAL TIMES


 


Flats transactions summary Villa transactions summary


Total No. Of Sales Value Value/Sq.ft
Total No. Of Sales Value Value/Sq.ft
Sales
1,697 1,454 M 1,725 thousand Sales
Mortgage 93 148 M 293 thousand
122 173 M 99 M Mortgage 40 143 M 208 thousand

 
 13
MARKET TRENDS & ANALYSIS // RESIDENTIAL

Residential report
I
n early May, Landmark Advisory online calculators feature an easy-
released its free Q209 Dubai & “Our new online to-use system that give the tools di-
Abu Dhabi Residential Real Es- calculators feature rectly to the buyers to work out what
tate Report. The independent kind of home they can afford based
report analyses multi-source trans-
an easy-to-use on their monthly budget and create
action data and other statistical system that give various scenarios to decide whether
trends, with a focus on master de- the tools directly now is the right time to invest.“
velopers. Having developed the software
“Public research helps the mar- to the buyers to for the new calculators in-house and
ket by allowing all stakeholders to work out what kind trained the company’s team of con-
compare free information,” said
Jesse Downs, Director of Research &
of home they can sultants extensively on how to use
them, Neil continued, “Landmark
Advisory Services at Landmark Advi- afford based on Properties is investing in both the
sory. She added that “access to mul- Charles Neil their monthly budget market and also our staff at a time
tiple sources improves objectivity.” that the industry is undergoing a
For example, Ms. Downs explained, ments accounted for approximately
and create various corrective change. We want our
“since mortgage activity is low, cash two-thirds of sales and 57 per cent scenarios to decide clients to feel 100 per cent comfort-
buys constitute a significant portion of new leases. More specifically, whether now is the able with any purchase they transact
of transactions. Therefore, to accu- units developed directly by Emaar with us, and we felt that by offering
rately assess price trends, it’s critical represented over half of sales and 39 right time to invest” them these new media tools, they
to have access to datasets contain- per cent of new rentals. “Residents are in a stronger position to decide if
ing both transaction types.” in Dubai see Emaar as a source of website: http://www.landmark-advi- the opportunity is in their best inter-
Buyers and renters are show- quality, not only for master-planned sory.com. est. Traditional real estate practices
ing renewed willingness to pay for communities, but also for individual are not enough in this market - cli-
better units and better locations. buildings,” said Ms. Downs. New online ents need access to greater market
“Falling prices create excellent op-
portunities that boost demand. In
Dubai Marina was the most pop-
ular area among renters, capturing
calculators to assist intelligence and we have enabled
our consultants to provide more
April, we observed strong leasing
and higher sales volumes,” said Ms.
30 per cent of all new annual leas-
ing contracts. Emirates Living came
prospective buyers informed and scientific insight to
them.”
Downs. in second, at 16 per cent. Isolating Responding to the changing needs In addition to having a tradi-
In Dubai, Emaar is faring best in apartments, Dubai Marina scored of prospective home buyers and tional mortgage calculator publicly
terms of demand and pricing. Ac- 30 per cent of all new apartment investors in the Middle East market, available on its website, Landmark
cording to Ms. Downs, “with a flight contracts. For villas, Emirates Living Landmark Properties has announced Properties has also created a reverse
to quality clearly underway, end- dominated, with 40 per cent of new a set of new online calculators de- version which enables users to in-
user preferences are differentiating villa rentals, followed by Mirdiff and signed to help create scenarios that put their own monthly budget and
prices in favour of quality develop- Jumeirah/Umm Sequim. answer many questions arising today calculate what price of home they
ers like Emaar and preferred loca- Landmark Advisory’s Q209 Dubai regarding real estate needs. Ques- can afford based on mortgage pay-
tions like Dubai Marina.” & Abu Dhabi Real Estate Report tions include the mortgages they ments, terms and interest rates.
In Q109, Emaar master develop- is available for download on their can afford, whether to rent or buy a A second set of more complex
home, and potential returns on in- online calculators are available
DUBAI REAL TIMES

vestment on properties available in through a meeting with any Proper-


the UAE. ty Consultant at Landmark Properties
Charles Neil, Chief Financial Of- who underwent rigorous training on
ficer, Landmark Properties, explains the use and outcomes of the calcula-
how the new suite of tools – includ- tors. Prospective buyers are guided
ing a ‘Rent vs. Buying Calculator’ and through the different calculators to
‘Buy-to-Let’ Calculator – empower understand the analysis on whether
clients with the tools to feel com- to rent or buy a home, as well as a
14 fortable with any property decision forecasted return on investment
they may choose to make. “Our new (ROI) for a ‘buy-to-let’ flat or villa.
MARKET TRENDS & ANALYSIS // FINANCIAL ROUNDUP

Adjusting payment schemes


to fit market conditions
Sherwoods will be providing more flexible services and packages to complement current
industry initiatives to adjust pricing and payment strategies which better reflect market
expectations and conditions

“C
urrent market condi- completed apartments and 50 per surprise was the speed with which and Arab African International
tions call for more at- cent on off-plan units. Abdulfattah it hit us,” said Stephen Ashford, Se- Bank successfully arranged a $347
tention to customer Sharaf, CEO of Personal Financial nior Director, Development at Om- million Dual Currency Syndicated Is-
needs and expecta- Services, HSBC Middle East, said the niyat Properties. “Ultimately, it's a lamic Finance Facility for Al Ghurair
tions, which has become our primary offer is mostly aimed at “end-users good thing, and it is forcing people Centre LLC. Proceeds of the facility
concern as we enter into the ratio- who have recently faced acute diffi- to rethink business models. This is will be used to finance the expan-
nalisation phase following the start culties getting affordable mortgage because the type of market that we sion of Al Ghurair City.
of the credit crunch. We have to be finance.” had, which centred around off-plan Mubashar Khokhar, CEO of Badr
more flexible as Dubai streamlines its Dubai home financing will return sales, requires a large amount of Al Islami, praised the excellent coor-
property business in anticipation of a once property values reach the me- debt. This is a market where every- dination shown between the bank
steady industry rebound towards the dian level of affordability, according thing is about cash flow. A developer group and the client in a tight market
end of the year. Times have changed to Barmak Besharaty, Managing Di- can't complete if customers renege to bring this deal to a successful clo-
and developers simply cannot prior- rector of Almas Capital. “In terms on cash flow. The problem in this sure, highlighting the return of con-
itise the project over the client any- of mortgage finance, banks are market is there's no debt to be had, fidence to the market, despite an in-
more,” said Iseeb Rehman, Managing looking at values coming down and no financing available.” ternational financial crisis. The strong
Director, Sherwoods Independent they don't want to be stuck with an But things have been changing support by the banking community
Property Consultants. asset that's declining in value,” he quickly from one week to the next. for this Islamic deal is based on pure
Recent developments such as the explained. Days after this discussion group met, merits and he would encourage oth-
introduction of a domestic rental in- Besharaty defined the median a successful loan was established ers to tap into Islamic financing.
dex by the Real Estate Regulatory national affordability level as the to finance the extension of a major Steve Perry, the Regional Head
Agency (RERA) are already creating bar at which middle income fami- shopping, commercial and residen- of Syndications, Mena, Standard
greater market stability and optimism. lies could get on the property lad- tial complex in the city. Chartered, also echoed these sen-
Sherwoods expects other trends such der: “When defining the median I'm Badr Al Islami, the Islamic Bank- timents and added that “The suc-
as increased developer mergers and saying that you have to take out the ing Division of Mashreq, and Stan- cessful closure of this transaction is
acquisitions and further reductions in labourers, who are transient and the dard Chartered Saadiq along with a clear demonstration that there is
construction costs to expedite market top-end luxury group. What is hap- Abu Dhabi Islamic Bank PJSC, still credit appetite available for well-
recovery in the last two quarters of the pening is good for Dubai but very Dubai Islamic Bank, Emirates NBD established and robust businesses
year. Sherwoods intends to capitalise painful. A lot of developers were and First Gulf Bank, Ajman Bank operating with the UAE.”
on the opportunities being opened offering luxury lifestyles that were
DUBAI REAL TIMES

up by the current transition period beyond what residents could afford,


through several strategic operational income was nowhere near property
initiatives as well as attractive offers averages. Luxury developers will see
for its clients. their projects turned into affordable
HSBC Bank Middle East Limited, units, not because of government
which had drastically cut back on initiatives, but because this is the law
mortgage lending due to the credit of economics.”
crunch, has raised its loan-to-value “We all knew that there was go-
ratio for financing upto 75 per cent ing to be a downturn in 2009/2010, 15
on completed villas, 70 per cent on but the thing that took everyone by
COMMENTS

Developers’ rights clarified


under new Law No. (9) of 2009
By Al Tamimi & Company

T
he Government of Dubai
published Law No. (9) of
2009, amending some provi-
sions of Law No. (13) of 2008
Regulating the Interim Real Estate
Register (“Law No. (9) of 2009”) in the
Official Gazette on 30th April 2009.
The main purpose of Law No. (9) of
2009 is to amend Article 11 of Law
No. (13) of 2008 Regulating the Inter-
im Real Estate Register (“Law No. (13)
of 2008”) in relation to a developer’s
right to terminate a contract to sell
a real estate unit in circumstances
where the purchaser is in default of
his obligations under the contract.
Background
Law No. (13) of 2008 was published
on 31 August 2008. Article 11 of Law
No. (13) of 2008 applies if a purchaser This Article 11(2) caused signifi- Circular to clarify Article 11, including contract.
is in default of his obligations under cant concern among developers the 30% rule under Article 11(2). The While the Administrative Circu-
the contract he entered with the who claimed that 30 per cent of the Administrative Circular stated that lar was more beneficial to develop-
developer in relation to the sale and amount paid by a purchaser towards the developer could retain 30% of ers than Article 11, the issuing of
purchase of a real estate unit. the purchase price would not be the contract’s value (the purchase the Administrative Circular caused
Article 11(1) requires the purchaser sufficient to compensate them for price) plus 30% of the amount paid confusion among developers and
to be given 30 days notice of the de- their loss caused by the purchaser’s by the purchaser towards the pur- purchasers, as it was not a formal
fault from the Land Department be- breach. For example, if a purchaser chase price which exceeded 30% amendment to Law No. (13) of 2008.
fore the developer can terminate the had only paid a deposit of 5% or 10% of the contract’s value. The Admin- This meant that a purchaser could
contract. Before Law No. (9) of 2009 of the purchase price at the time the istrative Circular also stated that a challenge a developer’s reliance on
was published, Article 11(2) stated contract was cancelled, an entitle- developer who cancelled a contract the Administrative Circular in court.
DUBAI REAL TIMES

that if a purchaser failed to remedy ment to retain 30% of that amount could retain all money paid by the Therefore, a law was required to
his breach within the 30-day notice may not cover the developer’s out- purchaser until the developer resold be enacted to legally amend Article
period, the developer was entitled of-pocket marketing and agent’s the property. 11.
to cancel the contract and retain not fees in relation to the sale of the unit. The Administrative Circular stated
Amendments to Article 11 ef-
more than 30 per cent of the amount The developer would either have to that Article 11 only applied to con-
paid by the purchaser towards the bear the balance of its loss or take tracts executed after the enactment
fected by Law No. (9) of 2009
purchase price at the date of termi- court action against the purchaser of Law No. (13) of 2008, and that ter- Application of Article 11
nation. The developer was required to recover the balance. mination of any contract executed New Article 11(6) clarifies that Ar-
16 to refund the remaining 70% to the On 10 November 2008, the Land prior to enactment of Law No. (13) of ticle 11 does not apply to plot sale
purchaser. Department issued an Administrative 2008 is governed by the terms of the contracts where off-plan sales in the
price stated in the contract.
(c) If construction of the develop-
ment has commenced but has
not yet reached 60%, the devel-
oper may terminate the contract
and retain not more than 25% of
the purchase price stated in the
contract.
(d) If construction of the develop-
ment has not yet commenced for
reasons outside the developer’s
control and without any neglect
by the developer, the developer
may terminate the contract and
retain not more than 30% of the
amount paid by the purchaser
towards the purchase price.
“Construction” in paragraphs (c)
and (d) above means that the devel-
oper has taken possession of the de-
velopment site and has commenced
construction works in accordance
with the designs authorised by the
competent authorities.
In relation to the timeframe for re-
funding any balance amount to the
purchaser, new Article 11(4) states
that the developer must refund this
amount within the earlier of one
year from the date of termination or
60 days from the date that the devel-
oper resells the real estate unit.
Cancellation of Project
New Article 11(5) gives the Real Es-
tate Regulatory Agency (“RERA”) the
power to cancel a real estate project.
If this occurs, the developer must
return all amounts collected from
purchasers in accordance with the
procedures stated in Law No. (8)
of 2007 Concerning Guarantee Ac-
counts of Real Estate Developments
in the Emirate of Dubai.
plot have not commenced. In such method for calculating how much a (a) If the developer has completed This Article states that RERA must
cases, termination of the contract developer can retain under Article not less than 80% of the devel- produce a report in relation to the
must be conducted in accordance 11(2) if a purchaser defaults in his opment, the developer may re- cancellation, however it does not
with the terms of the contract. obligations under a contract for the tain all of the amounts paid by specify the criteria which RERA must
Apart from these plot sale con- sale and purchase of a real estate the purchaser and may request apply when deciding whether to
tracts, new Article 11(7) states that unit. the purchaser to pay the unpaid cancel a real estate project.
the provisions of Article 11 apply Under the amended Article 11(2), amount of the purchase price
Conclusion
to all other contracts, regardless of the amount which a developer can stated in the contract. If the pur-
DUBAI REAL TIMES

whether they were entered before retain if a purchaser does not rem- chaser does not pay the remain- The amendments to Law No. (13)
or after the law came into effect. edy his breach within the 30-day ing amount, the developer can of 2008 contained in Law No. (9) of
Therefore, all real estate unit con- notice period given by the Land De- request the sale of the real estate 2009 strike a balance between the
tract terminations from the date of partment under Article 11(1) (which unit at public auction to obtain rights of developers to recover their
publication of Law No. (9) of 2009 remains unchanged) depends on the remaining amount. losses on termination of a contract
must be conducted in accordance how much of the development has (b) If the developer has completed following a purchaser’s default and
with Article 11. been constructed. The relevant not less than 60% of the develop- the protection of purchasers, and
categories of construction and the ment, the developer may termi- we anticipate that the amendments
Purchaser’s default provisions
amounts which the developer can nate the contract and retain not will be well-received in the real es- 17
Law No. (9) of 2009 introduces a new retain are: more than 40% of the purchase tate sector.
COMMENTS

Technology can save


millions of dirhams
The real estate and construction Industry is looking for best practices to face the future

T
he real estate and construc- commercially and also enforces
tion industry is currently fo- strict cost management policies.
cusing on possible savings With conject you choose a system
and managing efficiencies displaying exactly those processes
– especially with, and through, facili- which real estate experts urgently
ties management. The continuous need to carry out in their daily busi-
growth of facilities management ness; tracking of measures (property
was also the topic of FM Expo held in inspection, construction project
May. Sustainable planning, construc- control) or area management (con-
tion and management are more im- tract management, concentrated
portant than ever. Why these topics use of space, CAD) and portfolio
are relevant, is explained by Uwe management (strategic area man-
Forgber, Conject’s Director in Dubai, agement, benchmarking).”
a pioneer in providing software for What is needed in Germany is
the real estate and construction in- also in demand in Dubai and the
dustries. entire region. Managers are able to
“We have been assisting clients reconstruct an exact evaluation of
with facilities management for years. surface area utilisation: how much
In Germany, it has been a classic top- space is available and where? Which
ic for numerous years, while in Dubai Uwe Forgber areas can be combined or even
it is still under developed. Previously sold? Basically which areas can be
project developers only had their to optimise the management of a port and contract management are brokered?
sights set on the planning and con- building. For example when cities important factors for the conserva- “The company makes all of this
struction phases, now the effects of have to manage millions of square tion of value in property and real information available conveniently
this shortsightedness has hit them metres of office space, it is unimag- estate. and concentrated into one plat-
full force. Many buildings are still inable to do this without techni- Together with conject, private form”, states Dr. Uwe Forgber. He fur-
being realised – but who will be op- cal support. The perfect example companies as well as public admin- ther adds: “All you need is an internet
erating them and how?” comments is Berlin, the capital of Germany, istration can manage their proper- connection.”
Forgber. “For this reason a transfor- which saved more than 160 million ties and real estate projects com-
mation is underway. Especially in Euros (Dh784 million) in three years petently, based on clear and up to Conject is an internationally operating
times of crisis it is now vital to learn by deploying the new technology. date information. Investments, for German software house, with over 25
DUBAI REAL TIMES

from mistakes made in the past.” State owned areas could be used example for maintenance or energy years of experience providing business
conject developed a web-based and managed more efficiently. Not savings in buildings, can thus be process management solutions for the
software platform supporting all only large office complexes were structured efficiently and controlled real estate and construction industries.
core processes of real estate projects part of the optimisation plan, but object by object. Since its establishment, over 3,000 cor-
and existing buildings - from con- also buildings divided into small Uwe Forgber believes what porate customers and 60,000 users
struction planning and building to sections, as well as specialised happened in Berlin can be easily rely on it with an increasing number
operating (Facilities Management), properties such as police and fire achieved in the Middle East: “In a of flagship projects for major corpora-
selling and marketing. With its FM- stations, schools and court houses short time frame Berlin achieved the tions such as Dubai World Central, Mil-
18 software the company concentrates were included. Restoration, main- entire implementation of the sys- lennium Development International
on all relevant processes needed tenance and service, as well as sup- tem. Today Berlin is well positioned and Adidas Middle East.
Back to basics
By Chris Dommett, CEO of John Charcol Dubai

T
here has been much debate er and more stable property market
in recent weeks on whether will mean borrowers will keep their
the property market and mortgage for longer, and while this
the economy of Dubai have might deprive the banks of fee in-
bottomed out or even started a re- come in the short term, it compen-
covery. This debate was fuelled by a sates for this by offering longer term,
report by HSBC indicating that banks sustainable interest revenue and a
have started to relax their lending more established relationship with
terms; and buyers and sellers of prop- their customer.
erty are reaching closer agreement The mortgage products them-
on what represents a correct price. selves have so far been basic vanilla
The number of property listings has offerings, whether in conventional
decreased, suggesting that many or Islamic form, and this is likely to
potential sellers have decided to re- continue until banks have regained
tain their property until the market their confidence. A more stable mar-
improves and most of the distressed ket and a sounder legal infrastruc-
sale bargains have been taken up by ture should give them the opportu-
those with cash or lucky enough to nity to innovate on their products,
qualify for a mortgage. Transaction meaning greater choice for the con-
volumes remain very low though, sumer, and a closer match between
and I believe it is still too early to say the products and the real needs of
with any confidence that the worst is Chris Dommett,
the borrowers. In the meantime
over. We have the traditionally quiet however, what the market needs
months of summer and Ramadan to is the greater availability of basic
come, and the general consensus Banks are also getting back to basics in their mortgages to allow people living
is that we will only really see some lending, with conservative loan to value ratios and working in Dubai to own their
movement in the market in the last own home at an affordable rate. This
quarter of this year or the first quar-
and an emphasis on the borrower’s ability to gives them a longer term stake in the
ter of 2010. repay the mortgage from his or her salary or future of the city, with their property
Provided that the fundamentals business income regarded primarily as a home.
of the Dubai and UAE economies For many in Dubai, the correc-
remain strong, and the recent rise quirement for sustainable future cupiers with a single property fare tion in the property market and
in the oil price is a positive sign, we growth and investor confidence. much better when seeking a mort- the subsequent return to basics has
should come through this crisis in- Developers are also being forced to gage than the investor with mul- been very costly. They purchased at,
tact. It should even make us stronger adopt the business models of more tiple properties in various stages of or close to, the peak and are now
and more competitive on the global mature markets whereby they do construction. saddled with negative equity and a
scene as we learn from the lessons not rely solely on off-plan sales and Banks are also getting back to mortgage they can scarcely afford.
of the worst global economic melt- continuous stage payments from basics in their lending, with conser- However, having decided to stick
DUBAI REAL TIMES

down since the Great Depression. buyers to fund construction. Off- vative loan to value ratios and an around and weather the storm, their
My optimism in this is based on signs plan sales have completely dried up emphasis on the borrower’s ability best hope to recover their invest-
that in many areas of the economy and the emphasis is moving to good to repay the mortgage from his or ment while enjoying a good quality
we are getting back to basics and quality, well located, finished prop- her salary or business income. Gone of life is for the market to stabilise
away from the unsustainable behav- erties being purchased by people is the assumption that the value of and then grow in a well regulated
iour that was so prevalent during the who intend to live in them. These the property will continue to rise and sustainable fashion. The best
boom times. buyers will typically require a mort- and security of the mortgage is way for this to happen is for every-
The legal framework relating to gage to buy the property and banks now regarded as a distant second- one involved to get back to basics
real estate is gradually coming into prefer this type of applicant to those ary source of repayment after the and to remember these basic values 19
place and this is a fundamental re- looking purely to invest. Owner oc- borrower’s regular income. A quiet- for the future.
COMMENTS

The power of rental in an


economic downturn
By Phil Burns, MD Aggreko, Middle East

A
brief scan of any recent ity, reduced cash flow and inabil- facilities, this lack of available funds most common reasons for a compa-
newspaper, magazine, ity to finance are problems facing creates two fundamental problems. ny choosing a power rentals energy
journal, blog or podcast companies of all sizes and in all First, can the company justify a large solution has been timing. During an
will reveal that there is only industries around the world. In ad- down-payment which will further re- economic up-turn, the lead-time for
one subject on the minds of writers dition, many companies are facing duce their capital base? And second, the purchase of generation equip-
and journalists around the world: general uncertainty in the market, is the company able to find a bank ment can be anywhere up to two
the current economic crisis. Type the with many projects being put on which is willing to finance the large years, meaning that companies
word ‘economy’ into a google news hold or cancelled. These factors down-payment on terms which are which need power urgently will find
search and you’ll quickly be directed are causing many companies to re- not exorbitant? a rental option very attractive, due
to related searches such as ‘reces- evaluate their purchasing policies The past year has revealed a to the ‘fast-track’ aspect of rentals.
sion’, ‘inflation’ and ‘unemployment’. and to look at the benefits of using large shift in the way that compa- However, the current financial tur-
Scholars, journalists, political pundits rental providers, particularly when nies manage their books; whereas moil is encouraging companies to
and bloggers have all been putting it comes to heavy equipment and in early 2008 many companies were consider rental for different reasons,
forth their opinions on the subject- a machinery. happy to continue following the ad- such as how to better utilise work-
myriad of arguments and discussions For many companies, the sudden vice of market economists urging ing capital and to ensure that it is not
giving explanations of how the crisis lack of liquidity in the market initially them to leverage their assets wher- tied up in large capital purchases for
has been allowed to occur, who is to came as something of a shock after ever possible, the approach in 2009 items such as power plants.
DUBAI REAL TIMES

blame and what impact the crisis is years of readily available funding is for cost-cutting and reduction of The advantages of renting
having upon companies, industries and loans. Now, almost a year into large capital expenditures wherever power are also strong in an eco-
and individuals. the economic crisis, financing of possible. nomic down-turn: renting power
Although the arguments as to major projects is still a challenge for In order to do this, many compa- generation equipment eliminates
what exact combination of factors many companies, particularly those nies are choosing to rent rather than the need for capital expenditure on
precipitated the economic crisis will operating in regions which have purchase equipment, especially equipment. It incurs no large down
likely still be under discussion for been hardest hit by banking scan- when it comes to large equipment payments or interest costs and pre-
years to come, the impact of these dals. For those companies which re- such as power stations. In recent serves borrowing capacity. In addi-
20 factors on the economy has been quire large equipment, whether for years, with the economy booming tion, power rental guarantees fixed
far less debatable. Lack of liquid- projects or to run their production and industry growing, one of the and regular payment schedules
over an agreed term with options to amounts of heavy equipment can
extend the rental period if required be a major blow for a company with-
which improves cash flow and al- out large cash reserves. Ultimately,
lows for more accurate budgeting. renting equipment means that be-
When making the decision cause ownership lies with the rental
between purchasing and renting company, all risks do as well.
equipment, it is important for a Analysts are divided as to their
company to evaluate the decision in opinions of when the economic
the light of the many hidden costs climate will begin to improve, with
that are incurred when equipment some saying late 2009 and others
is purchased; insurance is one item pointing to early 2011 before any
which is often overlooked by com- real recovery will occur. However, it
panies seeking to purchase large seems unavoidable that there will
equipment. In addition, for equip- be some fundamental changes to
ment such as generators, there the way that people think about in-
are many spare parts and ancillary vestment and financing, and to how
items that need to be purchased companies handle their asset man-
regularly to ensure that the equip- agement. Cash reserves may very
ment is able to operate. Not only do well regain their old popularity; cer-
items such as spare parts need to tainly, it seems unlikely that compa-
be purchased, but they also require nies will be willing to leverage their
storage space to house them. With The advantages of renting power are also assets to the degree that has been
a rental solution, all spares and an-
strong in an economic downturn: renting power the norm in the past decade.
cillary items are the provision of the With a greater emphasis on keep-
rental provider, enabling the cus- generation equipment eliminates the need for ing capital available and with rental
tomer to budget more effectively. capital expenditure on equipment providing benefits such as lowered
Refuelling is an additional cost capital expenditure, flexibility and
which is often forgotten when the risk management, the option of
decision is made to buy equipment. panies trying to save money to min- burn fuel less efficiently for most of renting as opposed to purchasing
Refuelling one generator is a time- imise the number of staff they re- the project.
consuming task; a project site with quire for operating the equipment. The answer to why rental power
30 to 40 generators on it will require However, this short-term solution is an attractive service to construc-
the contractor to purchase trucks often leads to greater problems in tion companies lies in one word:
and staff simply a for refuelling. the long-run. Heavy equipment flexibility. Renting power generation
Therefore, the use of rental special- such as generators require regular equipment allows the contractor to
ist who includes refuelling in the servicing and maintenance in or- increase or decrease their capacity
rental package can be an attractive der ensure that they are operating depending on the demand of their
option. at peak efficiency; a poorly main- specific projects. Equipment capac-
Another factor in the rental ver- tained generator will have greater ity can be increased as the power
sus purchase argument that be- fuel consumption, higher emissions demand on a project increases, en-
comes even more prominent in and may even break down entirely, suring that equipment is always run-
an economic downturn is the ele- negating any cost benefits that ning at maximum efficiency.
ment of human capital. All major may have come from reducing the The past year has seen much
equipment purchases will require number of technicians working on construction work come to a grind-
a company to staff the new equip- a project site. Through a rental pro- ing halt as projects are re-evaluated
ment, either by allocating existing vider, all service and maintenance is for viability. Although most partially
staff to the project, or by hiring new included in the rental package, en- completed projects appear to be go-
employees. If a company does not suring that the equipment is always ing ahead, the number of projects in
have employees available with the running at peak efficiency. the design phases which have been equipment will likely remain an
technical knowledge to run the Projecting the power demand of put on hold is staggering. One of the attractive one even as the world
equipment they may be forced to projects also becomes a problem for greatest advantages of the rental economy eventually strengthens
DUBAI REAL TIMES

hire new staff, however, hiring freez- companies in a financial down-turn. option is the cushioning effect this and the world enters another posi-
es across the board are often the Purchased generators are often ei- has on companies which are uncer- tive growth period. And although
norm in an economic downturn. ther under or over-utilised since the tain about the long-term future of the question, ‘Is it better to buy or
This means that the use of a com- power need on a construction site their projects. By renting equipment, to rent’, will continue to be asked
pany which provides turn-key rental tends to follow a specific pattern of companies can ensure that they will by companies contemplating large
services can be invaluable to a com- ramping up and then falling away, not be left with equipment which equipment purchases, many com-
pany which requires equipment but meaning that a contractor who pur- will sit unutilised; if a company is panies will likely find themselves
simply doesn’t have the skilled and chases enough equipment to meet told that one of its projects has been deciding that during this period of
experienced staff to operate it. peak demand on site will find that put on hold, the financial damage economic uncertainty, ownership 21
At times, it is tempting for com- the generators are underutilised and incurred by having purchased large may not be worth the hassle.
COMMENTS

Construction
industry
showing signs
of defiance
T
he UAE construction industry investment by DWTC underlines the
is showing signs of defiance confidence they share with us in the
in the wake of the global eco- ability of the region’s construction
nomic crisis, with over 200 projects industry as a whole to survive the
to be completed in the first half of current economic downturn and
this year, more than the total for the prosper in the longer term.”
whole of 2008. Research by indus- Peter Sutton, Vice President –
try analysts Proleads has revealed Venues at DWTC said: “Building on The Big 5 PMVwill be staged at the Dubai International Convention and Exhibi-
that only 2.4 per cent of 1,289 UAE the success of the decision to relo- tion Centre alongside the Big 5, from 23-26 November, 2009.
construction projects that were un- cate the Big 5 PMV to Dubai World
der way at the start of the year have Trade Centre last year, which led to access platforms in the Middle East. construction projects still under way
been cancelled. a 29 per cent increase in visitors over Hammoudi said the economic and a huge amount of development
Approximately 135 projects were 2007, Car Park C site is undergoing crisis has led to the company focus- to be reinstated when the current
on schedule to be completed in the significant re-development. The en- ing its resources on serving its exist- climate eases, it is very clear that this
first quarter of 2009, with another 70 tire site is being leveled and surfaced ing top five customers who gener- region needs a plant, machinery and
to be finished in the second quarter, with a grid network laid throughout ate 80 per cent of sales in the Middle vehicles show. While construction
compared with a total of 184 overall for electricals and drainage and East. activity may have slowed across the
last year. the PMV Indoor Area will be a fully “We know these customers have region, Dubai remains the gateway
The figures were highlighted re- functional purpose built temporary projects that will take us through the to the Middle East and with the new
cently as development plans were structure.” downturn. At the same time, we are initiatives to give the exhibition a
released for the Big 5, trade show Despite negative effects of the streamlining our operations to cut purpose built home, we’re confident
for the construction industry and recession on the construction sector, all unnecessary overheads. We are of delivering an exceptional event
associated suppliers, when it takes companies like Al Nawi Group, UAE carefully applying our resources into this year that will deliver a significant
place for the 30th year in Dubai in representatives of Finnish manufac- areas that are productive and gener- return on investment for exhibitors
November. A new purpose-built turers Scanclimber, see a silver lining ating business. Now is not the right in difficult times.”
temporary structure and outdoor for the construction equipment busi- time to expand. However, there will Humaid Salem, General Manager
DUBAI REAL TIMES

exhibit area is being constructed at ness and the industry as a whole. be a time again, when expansionary of the Contractors’ Association said:
the Dubai World Trade Centre to ac- “The construction industry is strategies need to be taken in order “This is an important event for the
commodate the Big 5 PMV, the spe- witnessing a slowdown at the mo- to secure market share. It is hard to construction industry, as it provides
cialised focal point of the exhibition ment, but I believe that if the right predict when we are in clear waters a dedicated arena for manufactur-
for manufacturers and suppliers of measures are taken by governments, but I believe things will start looking ers and suppliers of plant, machinery
construction plant, machinery, ve- things will start picking up again better by the end of the year if the and vehicles to meet construction
hicles and equipment. by the end of the year,” said Aamer right measures are taken.” professionals from across the region
Simon Mellor, Vice-President, Hammoudi, General Manager, Al Nick Webb, Director of Stream- and beyond. The event brings the in-
22 Construction at Dmg World Media, Nawi Group, which sells Scanclimber line Marketing Group, organisers of dustry together, which is particularly
organisers of the Big 5, said: “This climbing work platforms, hoists and the Big 5 PMV, said: “With several important at this time.”
Why PR makes sense … right now!
By Louay Al Samarrai

“I
t was the best of times and to hear right now are ideas of how to
it was the worst of times, spend their money or about market-
it was the age of wisdom, ing advice that requires an invest-
it was the age of foolish- ment of scarce financial resources, No doubt the
ness….” Charles Dickens could not
have been more accurate in the Tale
but the simple truth is, this advice
could deliver the best possible return
challenges that the
of Two Cities back in 1859. Indeed on their investment than the typical property developers
he could have been writing about forms of marketing that the sector as are facing now are
the present financial crisis that has a whole has been employing almost
grabbed the world’s attention at ev- to the detriment of all the others.
cyclical, and, as we
ery level or, even more specifically, What am I talking about I hear you move through 2009
he could have even been writing all shout! things will begin to
about the real estate sector here in Well I am talking about public
UAE and the wider region. relations – yes, the practice of talk- feel and look more
No doubt the challenges that ing with your key target audiences positive
the property developers are facing – through consistent, managed and
now are cyclical, and, as we move relevant communications, and here
Louay Al Samarrai
through 2009 things will begin to is the secret…yes lean in close…
ment or projects as well as being the sourceful bunch so they will have a
best tool to manage the perceptions number of ideas. There are a few that
that are being built up in the market want to go outside of the box, who
right now about your company, your don’t want the perception to be that
sector and the future. they have run for cover! These are
How does the average property the ones that have plans! These are
developer - who is still standing, still the ones with foresight to see that,
doing business and who still has a when the worst of times is over, they
very realistic and measured perspec- can be well positioned ahead of the
tive of the real estate markets here in curve.
the UAE and across the region, keep We are consulting with a select
on communicating? few of these people and they are
How are they going to get the recognising a very real and mea-
message out that, while the best of surable return on their investment.
times may be over for some, it is not When we talk about PR delivering
the worst of times for those that had this very attractive ROI what we are
solid business plans and did not sell talking about is strategic, managed
too much ‘off plan’ to be stuck be- public relations.
tween a rock (the speculators) and a Let us all hope that things change
feel and look more positive. However because I am about to tell you why hard place (the bank) now? and that we can all then say - “It was
with the recent news of property public relations could be your best How are these property develop- the best of times and we have man-
DUBAI REAL TIMES

prices being affected downwards kept secret weapon: Not only is pub- ers going to tell key audiences that aged our messaging and commu-
and jobs being trimmed at several of lic relations effective when properly they have been prudent, that they nicated through the worst of times
the leading developers the one thing practised, but it delivers a real return are solid, that letting people go is and now….it is now the age of wis-
is certain – there will be good news on your investment and, for the en- a sad but necessary reaction to the dom, the age of foolishness is past
and bad news and it is always going tire year, costs the same as taking market dynamics and that this has us….” – Sorry Mr Dickens!
to be the key to manage this news two full colour pages of any of the been done as humanely as possible,
consistently, coherently and most local daily newspapers. that they have researched and are
importantly of all - effectively. What it also delivers is 10 times studying the market and what this The writer is one of the Managing Direc-
What is also true is that the last the investment in coverage and research is telling them..? tors of Active Public Relations and Mar- 23
thing that property developers want publicity for your company, develop- Property developers are a re- keting Communications Consultancy.
COMMENTS

Time to take the plunge


By Ali Haider Zaidi, CEO of Centurion Real Estate

T
his is a brief outlook/sum- stops or beats faster - depending on most importantly, prices are now at
mary of what we’ve expe- how one reacts to the freefall. fabulously attractive levels. I don’t
rienced in the Dubai real Similar has been the case for in any way imagine that this slow
estate market over the Dubai. I’d be a multi millionaire if surge will turn into a tidal wave
past four to six weeks. The current I were to get a dollar every time and the at prices will jump 30 per
situation is loved by all who haven’t someone argued that the Dubai cent a month like they used to in
bought in Dubai as yet and of course bubble is about to burst, and even a the past, but I strongly believe that
hated by everyone who bought in billionaire if I got a dollar to hear the the slow swell will help the market
2nd/3rd quarter 2008. opposite, that prices are not going head north, but at a rational rate.
Although the ‘crash’ of real estate to drop so soon and this is just the Lastly, for us as a company, there
prices in Dubai was eminent due to start of what is coming.
the global financial conditions, there Reality is that what goes up
were other local factors that were di- must come down and vice versa… Comparative Market Valuations
Comparative Market Valuations
rectly and/or indirectly related to the although going back up is usually at 40.00
market conditions here. The financial a measured and more realistic pace. 35.00
crisis brought a halt to inter bank In my opinion, the second part of 30.00
25.00 Last Years Peak AED (in Millions)
lending and consumer mortgage the equation i.e. the going up part is
20.00 Rock Bottom AED (in Millions)
loans. Stocks crashed globally. Lever- around the corner. I say this because 15.00 Current Prices AED (in Millions)
aged institutions took the big hits. of what we, as a company, have ex- 10.00
5.00
Sales (of everything) dropped, that perienced in the last 3-4 weeks. To
-
brought about layoffs in hefty num- give you a couple of examples, we 5 BR family 3 Br + maids 3 Br + maids 3 Br + maids
Villa
2 BR 4 BR 5-6 BR
signature villa

bers in many small, large and even had a family villa listed 2 in Green
Comparative Market Valuations
Greens Downtown Jumeriah Springs Springs Jumeriah Emirates
Community Burj Beach Islands Hills
multinational companies. Anyone Community West for Dh3.2 million West Residences
40.00
(especially
35.00 speculators) with liquidity but we actually ended up selling it
pulled out of the markets and sat on for Dh3.4 million. I have just heard
30.00 tains entertaining all and the roads has been an unexpected increase
25.00 Last Years Peak AED (in Millions)
the sidelines,
20.00
waiting for the market that another family villa, built on a
Rock Bottom AED (in Millions)
opening up. There has been a good in activity. All the agents have 3-4
to hit15.00
rock bottom before they act. slightly smaller plotAED
Current Prices than the one
(in Millions) amount of activity in this neighbour- showings lined up every day. How
10.00
Everyone knows times and cir- we sold went last week for Dh3.35 hood as well. The mere fact we’ve many of these showings will actu-
5.00
cumstances
-
never remain the same. million. Keep in mind that Family had some sellers actually de-listing ally turn into transactions remains
What we all5 BRexperienced
family 3 Br + maids 3 Br + maids 3 Br + maids
Villa in Dubai 2for BR 4 BR
Villa’s 5-6 BR
signatureinvilla GCW had bottomed out at their assets, sticking to their ask- to be seen but comparing to the ac-
the last fewCommunity
months
Greens Downtown
Burj
wasJumeriah
Beach
a real
Springs
roller
Springs
Dh2.8m
Jumeriah
Islands
Emirates
Hills
just a few weeks ago; there- ing price or in a couple of instances tivity levels we saw in Jan & Feb, it’s
West Residences
coaster ride. And anyone who’s been fore, Dh3.4 is a jump of 15 per cent even increasing their prices by five up by extraordinary levels. So if you
a roller coaster knows that the thrill to 20 per cent but still an excellent per cent or more is an encouraging are a potential buyer, I say this is the
Even with the sharp drop in rental values and a large supply of residential units being
begins when deliveredyou are on
in Motor City, your
Discovery way upJumeirah
Garden, buy Lake atTowers
Dh579 per Land
and Dubai square foot.
(Victory sign. time to take a decision and take the
Heights villa’s), most developed area’s in Dubai like the Marina and JBR still give you an
the track but the real test of nerves is Similarly,
amazing 7-9% rental yield (maybe even 10% in certain cases) if you were to buy today or if Burj Dubai area is now Secondly, a few banks have start- plunge while prices are still attrac-
DUBAI REAL TIMES

you own something that was bought on realistic values of 2006 or early 2007.
when it’s on its way down…the heart finally taking
Compared to the rest of the world, it’s still one the top locations as far as rental yields are shape with the foun- ed mortgage lending again. We’ve tive. For the sellers, well, accept the
concerned.
received an email from a mortgage first realistic offer that you get and
Approximate Rental Yields
Approximate Rental Yield’s broker at Noor Islamic Back saying use the proceeds to upgrade while
Expected
Area Type Value Now
Expected
Rental that they have now started lending you still can. In the words of Warren
Rental Yield
Yield
up to 85 per cent of the assessed Buffet, “The investor of today does
AED AED %
Greens Community West 5 BR family Villa 3,350,000.00 250,000.00 7% value of the property. Likewise, a not profit from yesterday’s growth”
Downtown Burj 3 Br + maids 3,200,000.00 250,000.00 8%
Jumeirah Beach Residences 3 Br + maids 1,750,000.00 155,000.00 9% couple of foreign banks have also
Springs 3 Br + maids 1,850,000.00 135,000.00 7%
Springs 2 BR 1,150,000.00 100,000.00 9%
started accepting mortgage appli- The analyses expressed in this ar-
24 Jumeirah Islands 4 BR 4,300,000.00 390,000.00 9% cations. Although they are offering ticle are personal observations on the
Secondly, a few banks have started mortgage lending again. We’ve received an email from a lower LTV’s it’s a start. Thirdly and Dubai Real Estate market.
mortgage broker at Noor Islamic Back saying that they have now started lending up to 85%
of the assessed value of the property. Likewise, a couple of foreign banks have also started
accepting mortgage applications. Although they are offering lower LTV’s but it’s a start.

The analyses expressed in this article are personal observations on the Dubai Real Estate market and should not be
considered as a bench mark to make decisions. The author does not take responsibility and is not liable and/or legally
responsible for any decision taken by any individuals and/or institutions based on the observations in this article.
COMMENTS

Property sector gaining momentum


amidst steady market correction
The Specialists observes the country’s transformation into an end-user market

O
ngoing corrective mea- lending and mortgage activities,
sures have transformed although they are exercising more
the UAE’s property trade caution in the form of rigorous The banking authority
into an end-user market,
observes The Specialists, a com-
background checks. Also, the UAE
Central Bank and the Ministry of
will specifically
plete real estate solutions provider Finance have been implementing monitor the effects of
with over 20 years of experience in several measures to improve liquidi- the property trade on
the Gulf region. It notes that more ty in the financial sector and restore
real estate developers and owners market confidence. A senior official
the financial sector
are shifting their sales strategies of the Central Bank has affirmed
away from speculators and towards that they will concentrate on liquid-
end-users, focusing on meeting the ity and asset quality towards 2010.
needs of prospective owners. The banking authority will spe- actually opened several oppor-
A noteworthy rise in foreign cifically monitor the effects of the tunities to foresighted property
investments in recent months is property trade on the financial sec- firms. The key is for developers
further sustaining the momentum tor. and owners to keep close track of
being enjoyed by the industry, with Dr. Sobhi Suleiman Agha “Today’s evolving markets have trends and corrections and create
improved lending conditions across tailored packages for both their ex-
domestic banks adding to the posi- isting and prospective clients. The
tive trend. Another welcome de- UAE remains one of the world’s top
velopment is the resilience of the property destinations, so banks will
industrial property segment, with definitely continue to extend mort-
Dubai alone still significantly bene- gage facilities to investors, albeit
fitting from its reported 50 per cent with a little more caution. A little
increase in industrial rents in 2008. creativity and patience can still
“Just recently the UAE Minister lead to highly-profitable returns for
of Economy stated that the coun- real estate businesses,” concluded
try has managed to overcome the Agha.
crucial stages of the financial crisis, The Specialists itself constantly
and that significant economic gains monitors local and regional trends
DUBAI REAL TIMES

could be expected in the second to make sure that it develops and


half of this year. This has greatly delivers high-quality and timely
stimulated market-correcting activi- services. The company delivers a
ties which are raising the appeal of comprehensive range of services to
properties and moving emphasis cover all types of property transac-
towards end-users” said Dr. Sobhi tions within both the commercial
Suleiman Agha, General Manager, and residential markets, for lease
The Specialists. and for sale. It currently conducts
Meanwhile, banks across the its operations in the UAE, Jordan, 25
Emirates are gradually increasing Lebanon and Syria.
COMMENTS

Shifting Gears:
The challenges of publicly-traded, project-driven organisations
By Bassam Al Samman, PMP, PSP, EVP/CEO & Founder of Collaboration, Management & Control Solutions (CMCS)

T
he global business market ganisation’s undertaking of projects
has reportedly been expe- without proper assessment of risks
riencing a growing number associated with delivering those proj-
of privately held companies ects. These projects can be exposed
making the shift to being publicly to many threats, including wrong
traded entities. The new trend, which budgeting and budget forecasting,
has been explained by analysts and improper allocation of expenses, im-
financial experts as a quick fix solu- proper revenue recognition during
tion to ride out the current financial implementation, improper quantifi-
crisis, has enticed more than a hand- cation of project benefits, improper
ful of business entities in the Middle project management practices, risks,
East region to follow suit. The shift issues, improper control of changes
to public eye however poses many and failing to deliver what is expect-
challenges for organisations whose ed from them when they were initi-
growth and operations depend on ated.
the number of projects they under- The recent scandals of Enron,
take. One of these challenges would WorldCom, Philip Holtzman and oth-
include the need to report on cur- Bassam Al Samman ers are examples of how apparently
rent financial standings. Despite the successful project-driven organisa-
region’s adoption of a streamlined of future projects is a challenge that For instance, recent surveys in tions have ceased to exist. These
set of guidelines in declaring finan- these project-driven organisations the information technology (IT) sec- cases have led the US Government
cial standings, these newly shifted currently face which also poses to tor have shown that less than 17 per to require publicly traded companies
companies might fall short, or expe- have great impact on its stock value. cent of projects undertaken are com- to comply with what is known as the
rience difficulties, in trying to com- Usually, organisations address this by pleted on time and on budget. It also Sarbanes-Oxley (SOX) law. This law
ply with this requirement. adopting initiatives that will focus highlighted that projects are exceed- requires organisations to adopt prac-
The stock value of a project- on increasing their market share, ex- ing their planned budgets by almost tices that will require effective perfor-
driven organisation would usually panding into newer regions, winning 90 per cent and their schedule by 120 mance control, rapid performance
depend on three key elements; the repeated clients and forging new per cent. Consequently, 51 per cent reporting, maintaining updated proj-
number of projects they already strategic partnerships. of all IT projects are over budget and ect records and documenting proj-
have; the efficiency in handling Nevertheless, a greater challenge 30 per cent of them have been can- ect processes.
these projects and the projects they for these organisations lies within celled. The Middle East region bears no
expect to acquire in the future. The projects that must be delivered with- Other sectors are no better, with difference from its global counter-
volume of projects that an organisa- in a fixed budget and a set deadline. surveys showing that oil and gas proj- parts as an unprecedented number
tion can undertake also depends on One of the tools currently being used ects have schedule overruns of 82 per of projects undertaken have failed
a number of factors including but to help find out if a project goes over cent resulting in 85,000 less qualified to adopt these preventive measures,
DUBAI REAL TIMES

not limited to being competitive, the budget or behind schedule is workers in 2009 and the foreseen and would most likely lead to misrep-
reputation, track record, experience, Earned Value Management System, difficulties in completing these proj- resenting the true value of a project-
size, financial capacity, capability and which proves to be very helpful in ects. driven organisation.
business development efforts. These providing essential information and These figures also answer key in- Although not too alarmingly late,
factors, in turn, are heavily depen- facts on project current status and vestment related queries that include a sound solution in the offing is the
dent on the overall market growth, expected future progress trends. promised benefits, better returns and move to adopt these proven prac-
number of projects currently being However, the Middle East region still future stock value. tices and help minimise the threats
offered and market stability. has to catch up with this trend and The reasons why projects are bur- of project delays and overspending,
The ability to acquire new proj- utilise this method to their advan- dened with such unfavourable indi- and consequently maximising the 27
ects and maintain a healthy pipeline tage. cators are actually reflective of an or- opportunities they bring.
COMMENTS

I Looking down
f there was anywhere in the over-promise. Get real with the
world to sell property right now, hard facts and give your boss what
you could not be better placed to expect in commission income for
than Dubai. If you don’t agree the week. Sure enough it is unpre-

the wrong end of


with the statement I would argue dictable knowing what will happen
you are looking down the wrong any day, particularly in this market,
end of the telescope and don’t yet but savvy consultants should have a
see the bigger picture. constant stream of quality business

the telescope?
Naturally, our job is not easy, and as an effect of implementing good
most agents will have a stock of an- practice principles.
swers as to why success isn’t always There’s no reason why you
possible. However for you to see the shouldn’t go one stage further. First
bigger picture as an agent or consul- thing every Sunday morning, pres-
tant one of the most important steps ent your ‘production pledge’ for the
is making sure all of your processes week to your boss - break it down In recent years, we witnessed Dubai emerge as
are in place.
First and foremost, know what
into activities, like the number of
meetings you have scheduled. Not
the world’s most talked about, mind-blowing
you’re talking about. It sounds only have you made a commitment real estate market in the world. However as
to deliver, but now your boss has a
simple, but it’s amazing how many
agents don’t bother to learn about better understanding of how you do the market matures, consumer perception
their trade, or keep up with news business and although this ‘winning evolves and selling becomes more of an art,
and trends. Your clients and poten- formula’ will not always translate into
tial clients have worked hard for their sales, most weeks you’re likely to what skills does an agent need now to attract
money and whilst they may have a
wider belief in the Dubai property
succeed because you documented
your goals with focus.
that sought after client? Cecilia Reinaldo,
market generally, they need the Are you the type of person who Managing Director of Fine & Country, explains a
confidence of knowing that you, the is running around ‘day and night’ or
person they are dealing with, really are you ‘busy but controlled’? It is few simple rules about gaining a more profound
understands your business.
Take responsibility to get busy
easy to lose control and become a
victim to one of the biggest poten-
understanding of the industry.
‘working on you’ as opposed to tial drawbacks of doing business in
‘working on the market’ –knowledge this part of the world - timekeeping, lutions presented with researched,
is power, after all. Challenge yourself or more to the point, the lack of it. accurate information so that they
to dedicate at least two hours each In an environment where running are able to make balanced and quick
week to reading a local business pa- late to an appointment is customary decisions. Even super wealthy clients
per and a property magazine from and you grow used to responses of don’t expect to get it right every
cover to cover. Within a month you ‘I will be there in 15 minutes’. Smart time (because no one can) but their
will have expanded your knowledge agents know that time is money and decisions are founded on a ‘gut feel-
and I can confidently predict you will will initiate a ‘won’t happen again’ ing’ about the people they are deal-
know more about the Dubai, UAE, procedure. Think about it, ‘I don’t ing with, who in turn demonstrate
Middle East and global property care who you are, if you are late for superior knowledge by going that
markets than 95 per cent of other the meeting, there is no meeting, if extra mile. So get organised, focus,
practitioners ‘playing at it’. That first you cannot respect my time, your deliver and control that next meet-
step will quickly translate into you chance has gone to someone else’. ing like no other before.
having a more rounded knowledge, Powerful, but with limited hours in a Successful people know where
DUBAI REAL TIMES

clients will trust you, and that trust day, act big and do not be afraid - Cecilia Reinaldo they want to be and plan with a de-
will translate into them buying prop- wait for no one, there will always be termination to get there. So if you’re
erty through you. another deal round the corner; oth- happen to achieve the desired out- on ‘the focus wagon’, how many
Good sales consultants under- erwise, you may find you’re waiting come. Remember to think in terms times a year have you committed
stand that their manager wants a forever. of your language and questioning to ringing your top 10 customers,
weekly helping of ‘fish and chips’ Having secured a meeting, its technique, in other words take the prospects, developers, fellow indus-
– rather than inaccurate, unquantifi- success will come down to prepa- conversation to where you want it try professionals? Make sure from
able, speculative, under the surface ration. That means identifying the to be. Surely there is no better way here on in, it’s at least once a month.
28 ‘whale’ deals. In other words, deliver purpose of the meeting and what than to have prepared an agenda for Because if you don’t, someone else
regularly and realistically and never chain of events do you need to the meeting. Busy people want so- will.
COMMENTS

Self-funded real estate companies


more likely to hurdle financial crisis
Study expects real estate sector to recover within the next six to eight months

A
study conducted by Avanti
Holding, a self-funded in-
ternational property devel-
opment and investment company,
affirms that companies adopting
self-funding, particularly those in- “For cash-rich investors,
volved in the property markets, are
less affected by the ongoing global
the latter half of this year
economic crisis. Such organisations would be the best time
are more capable of venturing into
projects with potentially high re-
to buy property in Dubai,
turns and rapidly adjusting to fluc- since we expect the prices
tuating industry conditions.
“What continues to make com- of property to shoot up by
panies like Avanti buoyant, despite around November 2009”
the credit crunch, is the ability to
fund itself rather than rely on banks
or other companies. This robust
financial foundation allows com-
panies to venture into more proj-
Dr. Issam Daoud
ects, particularly in the uniquely
vibrant Dubai market. We see huge time to buy property in Dubai, as it started to show interest to invest brokerage firms, management
demand in Dubai despite a signifi- expects prices to increase signifi- in our projects and others. We will consultancies, oil and gas compa-
cant percentage of construction cantly before the end of next sum- continue to actively engage with nies, and diverse businesses like
projects being postponed, mean- mer. “For cash-rich investors, the our clients and make sure that we construction materials, and jewel-
DUBAI REAL TIMES

ing that in this part of the world it’s latter half of this year would be the positively act on their opinions and lery trading. It is renowned for its
more of apprehension rather than a best time to buy property in Dubai, feelings. This atmosphere of inter- international standards and quality
poor market. I believe that this will since we expect the prices of prop- action and trust is, and will always of service, and its emphasis on en-
be corrected over a period of six erty to shoot up by around Novem- be, above all the core of our suc- riching the lives of its clients. The
to eight months by then, we can ber 2009,” said Daoud cessful partnerships,” he added. property specialist is also compli-
expect a slow and steady process “Looking ahead, we are con- Avanti Holding is a part of Issam ant with the requirements and
of recovery,” said Dr. Issam Daoud, fident of at least a five per cent Daoud Group of Companies that mandates of Dubai’s Real Estate
Chairman, Avanti Holding. economic growth for 2010, due to manages various interests, includ- Regulatory Authority, thus making
According to the study, the sec- the bottoming out of the market, ing real estate development and it a key player in Dubai’s property 29
ond half of 2009 would be a good a growing number of customers investment companies, real estate market.
FOCUS

Going, going, gone -


maybe next time
By Linda Benbow

T
he Al Yasat grand ball- and the general public, and as the
room was filled with over process is better understood, the
120 people all eager to number of sales will increase.
watch four properties go
under the hammer. In charge of Is this a diversification role for
the event was Raymond Kuceli, the company?
Chief Executive Officer of Madania Madania Real Estate is a brokerage
Real Estate and a licensed auction- firm offering a full range of real es-
eer with over 20 years' industry tate services with competencies
experience. in selling, buying, leasing, and ad-
The four properties auctioned visory services, as well as deferred
included three villas in Arabian payment plans. The property auc-
Ranches and one penthouse tioneering programme is just one
apartment in Jumeirah Beach Res- part of the services we offer.
idence. Although bidders did not
reach the reserve price for any of Can we expect more auctions?
the properties, the auction event Yes we will certainly be continu-
Raymond Kuceli
marked a new step in the matur- ing with the auctioneering sales
ing of the Dubai market. Buyer Residences and another villa in try, hopefully boost transactions. method, and as I mentioned, over
sentiment during the evening Al Mahra did not find an opening time we expect the process to be
confirmed recent analysts' reports bid. The properties will now pass Did you get the expected results? better understood and seen as
of a current divergence in buyer into the third phase of the process We would have liked to mark the another way for sellers to market
and seller expectations around where interested parties negoti- first event with a sale, but I think their properties.
the true value for property in the ate privately with the sellers. that otherwise the event went well.
emirate. We had a very good turnout, over What other plans does the com-
The first property, a villa in Palm- What made you think of auction- 120 people, and because this is an pany have for the future?
era in Arabian Ranches, opened at ing these properties? innovative method we are bringing We are constantly working to en-
Dh2 million and was contested Madania aims to bring innovative to market, it was a great achieve- hance all the services we provide
between two bidders up to Dh2.3 and creative solutions to market ment to hold the first event. and will continue to do so in the
DUBAI REAL TIMES

million before being passed in by problems. In the case of the prop- The process has three phases, future. In terms of expanding our
the auctioneer for private nego- erty auction programme, we can of which the auction event is the offering, we will be looking at pro-
tiations, as the final bid did not see that the lack of clarity over the second phase so, we still have in- viding Building Management Ser-
reach the reserve price. The sec- true market value means a drop terested parties in the properties vices and we will also commence
ond property, a villa in Al Mahra in transactions as buyers and sell- and we would expect to generate building a portfolio of individual
in Arabian Ranches, opened at ers disagree on what a property is a sale during phase 3. properties which require manage-
Dh2 million and was passed in by worth – the auction process helps Perhaps some of the bidders on ment. Another area we are look-
the auctioneer at Dh3.5 million. define what is market value and the night were a bit over-awed by ing at is helping developers sell
The third and fourth properties, therefore helps buyers and sellers the environment but we believe their properties that are close to 31
a penthouse in Jumeirah Beach agree for a sale, and for the indus- that it is a learning curve for us completion.
COMMUNITY

Cricket, diet and awards


Corporate social responsibility is emerging as a memorable and entertaining tool, for enjoyment
by both recipients and organisers. Property development companies are reaching out to the
public in unexpected ways, bringing good cheer and smiles to many. Some organise a cricket
match, others hire dieticians to teach and inform. Looking after others is catching on, as
witnessed by the variety of awards being presented for deserving causes
Cricket’s Chapal Cup this UAE stadium soon again.”

Chapal, a leading developer within Details on Chapal Cup: CHAPAL believes that
Northern Emirates and Dubai, speaks • The Chapal series closed score on success is achieved by listening
on its first successive sponsorship of Sunday, 3rd of May. to and meeting client’s needs
grand slam ODI series of the year • Pakistan team won the Twenty20 in all aspects of real estate.
between Pakistan and Australia and match on 7th of May 2009. For more than 40 years, it has
Twenty 20 match which took place developed building concepts
from 22nd April to 7th of May 2009 The Chapal trophies: of superior and lasting
in Dubai and Abu Dhabi. • “Man of the Match” (each match integrity. An important priority
Mohammed Amin Chapal, of ODI, and T20 match); for the company is to push
Chairman for Chapal Group said: • “Man of the Series” (last match of the boundaries of modern
“Our partnership with Pakistan ODI only); architectural design to create
Cricket Board for this remarkable • “Runners-Up Trophy” (T20 projects that will sustain as
Chapal the destiny
event gave us this excellent match); iconic landmarks. Chapal The
opportunity to be part of the sports at-heart fans by sponsoring this • “Winners Trophy” (final of ODI Destiny, based in Dubai Sports
history here in United Arab Emirates. cricket grand slam cricket series and series and T20 match). City, was launched in 2006 by
With the opening of the new cricket give them something back. Unlike • “Chapal Appreciation Souvenirs” the developer. It is known to
stadium in Dubai Sports City and the majority of the companies, to the match umpires, TV umpire investors as the fastest selling
excellent arrangements of Abu especially from property sector, and match referee. project in the company’s
Dhabi Cricket Board in Sheikh Zayed that have stopped their marketing history with over 90 per cent
Stadium, and with such an exciting activities due to hard-hitting times, Cash Prizes by Chapal: of its apartments sold out
game - we watched, both the teams we continue to drive our business • $1,500 to “Man of the Match” due to its distinctive location,
play wonderfully. We were happy to forward and execute corporate winner (each match of ODI proximity to blooming
represent an important element of social responsibility events, series); business districts, as well as
the tournament – to build awareness commercial activities to complete • $3,000 to “Man of the Series” affordable payment plans.
of the cricket sport throughout the the construction for started projects winner (final match of ODI Being build on 913,000 sq.ft.,
multinational community in this and increase sales returns.” series); this twin tower and 26 storey
DUBAI REAL TIMES

region. Chapal’s ability to engage Ahmed Chapal, Executive • $2,500 to winning team (each architectural structure, with
spectators through its sponsorship Director for Chapal Group, said: match of ODI series); spacious studios and 1,2 and
demonstrates its commitment to “The Australian team won the series, • $5,000 for Twenty20 Match 3 bedroom units will offer a
quality and fun. We are delighted and though Pakistan players were the winning team (final match); variety of amenities such as
will carry on injecting excitement winners for Twenty20 match. We have • $5,000 for ODI Series winning swimming pool, health clubs
into the next cricket events too." watched amazing talents. I consider team (final match). and spa, shopping centre,
Jawad Chapal, Executive Director this game as an opportunity for the • Chapal rewarded 78 lucky family entertainment facilities,
for Chapal Group said: “We are Pakistan team, as they played so well winners to attend matches a golf course, and canal side
32 happy to be connected with the against a strong opponent. We will complimentary throughout radio views.
local public, especially young- be waiting for their coming back to campaign in UAE.
Coral Deira Dubai
receives Green Award
C
oral Deira Dubai has been awarded a certificate of appreciation from
Dubai Electricity & Water Authority (DEWA) for its distinguished ef-
Limitless DJA offices forts in saving water and electricity throughout 2008. The certificate
was awarded to recognise the significant contribution the hotel made to the

Tenants get a taste of reduction of electricity and water consumption; an area which the property
earmarks as a highly important issue.

community life – at work


General Manager of Coral Deira Dubai, Pieter Stapel, said: “We’re extreme-
ly pleased to have our dedication in this area recognised as it is something
we have worked hard for.

L
imitless has launched a series Water and energy conservation is a big issue and one we recognise we
of interactive community ini- can do something about if we adopt new practices and change certain ways
tiatives for office tenants at in which we work,” he explained.
Downtown Jebel Ali will
Downtown Jebel Ali, kicking off with “We offer the same great level of service to our guests that they have
a health and nutrition networking
stretch for 11 kilometres come to expect, but we are pushing to do things in a green and environ-
event, led by Dubai-based dieticians along Sheikh Zayed Road mentally friendly way - with awards like this, it shows we are moving in the
Nathalie Haddad and Nadine Tayara. between the Jebel Ali right direction but there is always more that can be done.”
Before sampling a range of low fat, Free Zone and Techno The award was presented to 10 Dubai hotels at a special award ceremony
energy boosting food, delegates Park. It will have 326 at the InterContinental Festival City.
discovered how the food they eat af- buildings, including 237

Health and safety


fects their health, and, with a good
residential towers. The
diet, they can cut the risk of obesity,
diabetes, high blood pressure and
project will consist of
other medical complications. At the
same time, they met and mingled
four zones, each with
three distinct districts:
success at Palm’s Marina
with fellow tenants who have set up
offices in the 200-hectare develop-
The Urban Centre, The
Trellis and The Medina,
Residences development
N
ment. creating a blend of akheel has celebrated the completion of 12 million man hours with-
Around 1,000 people are cur- out loss due to injury at Marina Residences, Palm Jumeirah. The de-
business, residential,
rently based at Downtown Jebel Ali’s veloper’s exemplary health and safety record is a result of a number
four newly-completed office towers
shopping, and dining of measures introduced across the development. The company’s dedicated
– part of an eight-building complex and entertainment health and safety team worked on a project-specific safety plan with con-
known as The Galleries – with more facilities. Each zone will tractors, with safety meetings on the project taking place every week for
moving in shortly. have a Dubai Metro more than 30 months, and additional meetings held to raise and resolve
Salah Ameen, Downtown Jebel station, its own internal specific workplace safety and protection issues.
Ali Project Director, said: “This is people mover system, Johann Schumacher, Managing Director, Palm Jumeirah, Nakheel, com-
more than a place to live or work. It’s ments: “It is our goal for the entire sector to embrace best practices in health
and road access from
also a place for healthy lifestyles in a and safety on our projects and to improve all workers’ skills to ensure the
community setting. At the Galleries,
new interchanges on highest safety standards. This is an approach that leads to improved pro-
our A-grade offices are filling up fast Sheikh Zayed Road ductivity, increased efficiency and higher standards of build quality. The
with local firms and global compa- specialist safety plan developed for the project alongside regular meetings
nies who have chosen Dubai as their with workers and managers ensured that the health and safety culture was
regional hub. Our community initia- widespread and at the forefront of everyone’s mind. The results of this focus,
tives will enhance The Galleries as a enthusiasm and teamwork are highlighted today.”
choice location, where friendships illness and improve their mood, pro- Nakheel places health and safety at the core of its business and cham-
blossom and business relationships ductivity and energy levels.” pions high standards in the region. The company has an in-house team
DUBAI REAL TIMES

are created.” Businesses can lease areas from of professionals working across the entire organisation’s developments,
Nutritionist Nathalie Haddad said: 3,500 to 15,000 square feet – and which monitors and supports project management teams to ensure that
“Hectic lifestyles and busy schedules take multiple floors – in The Galler- these high standards are met across its projects. In January 2009, Nakheel
can mean that a healthy diet goes by ies, where four additional towers became the first developer in the region to formally endorse the ‘Build Safe
the wayside. Despite an increase in offering apartments, retail, recre- UAE’ programme, the construction sector’s own health and safety initiative.
the availability of low fat products, ational and more offices are due for Marina Residences is a residential complex located at the tip of the trunk
the UAE still has a high rate of obe- completion this year. The Galleries’ on Palm Jumeirah, one of the world’s largest man-made islands. The high-
sity. By following a balanced diet and landscaped grounds will include end, high-rise development consists of six residential towers that rest on
eating small meals regularly, people water features, open spaces, plazas landscaped podiums faced with marinas. The handover of more than 900 33
will feel healthier, reduce the risk of and shaded rooftop gardens. homes on the development will commence later this year.
EVENTS

ThyssenKrupp
architecture awards
S
heikh Saeed Bin Mohammed Bin Rashid Al Maktoum
recently distributed the 11th ThyssenKrupp Elevator
Architecture Awards at a ceremony held at the Raffles
Hotel, Dubai.
Fernando Donis from Netherlands, who won the first prize
for his entry ‘Dubai Frame’, was awarded $100,000, following
an international jury selecting 926 design proposals for a Tall
Emblematic Structure for Dubai.
The awards were distributed in the presence of Mr. Sultan
bin Saeed Al Mansouri, UAE Minister of Economy, Eng. Hus- (left to right) Marta Pozo , Luo Siwei,
Mr. Hussain Lootah, Director General
sain Nasser Lootah, Director General of Dubai Municipality, of Dubai Municipality, His Excellency
Mr. Javier Del Pozo, CEO of ThyssenKrupp Elevator Southern Sultan Bin Saeed Al Mansouri, UAE
Europe, Africa and Middle East and Dr. Olaf Berlien, CEO of Minister of Economy, His Highness
Sheikh Saeed bin Mohammed Bin
ThyssenKrupp Technologies.
Rashid Al Maktoum, Fernando Donis,
The competition, held under the auspices of the Inter- Ferran Yusta, Dr. Olaf Berlien, CEO of
national Union of Architects, saw 4,900 architects from 108 ThyssenKrupp Technologies, Mr. Javier
countries participate to design the new emblem structure for Del Pozo, CEO of ThyssenKrupp Elevator
Southern Europe, Africa and Middle
Dubai. East, Hongbo Lu and Alejandro Rios
The $50,000 second prize was awarded to Luo Siwei from His Highness Sheikh Saeed bin Mohammed Bin Rashid
Al Maktoum reviews the 2009 ThyssenKrupp Elevator
China for the “Magic Mirror” proposal and three teams were
Architecture Award winners with Eng. Hussain Lootah,
awarded $20,000 each as the third prize winners. In third place Director General of Dubai Municipality explaining the
were teams led by Alejandro Rios of Spain who proposed ‘The finer points of the winning projects.
Mirage’, a team, led by Ferran Yusta of the Netherlands and
Marta Pozo of France, which presented the ‘Big Beam’ and Ca-
nadian Hongbo Lu, residing in China, who proposed a struc-
ture entitled ‘The Flying Colours of Dubai’.

ThyssenKrupp Elevator is one of


the leading elevator companies in
the world and represented at over
800 locations in more than 60
countries. Its capabilities include
DUBAI REAL TIMES

passenger and freight elevators,


escalators and moving walks,
stair and platform lifts, passenger
boarding bridges as well as quality Sheikh Saeed Bin Mohammed Bin Rashid Al Maktoum presents the First Prize award to Fernando
Donis of the Netherlands for the ‘Dubai Frame’ proposal. (Left to right) Mr. Hussain Lootah,
service for all products Director General of Dubai Municipality, His Excellency Sultan Bin Saeed Al Mansouri, UAE Minister
of Economy, His Highness Sheikh Saeed Bin Mohammed Bin Rashid Al Maktoum, Fernando Donis,
34 Dr. Olaf Berlien, CEO of ThyssenKrupp Technologies and Mr. Javier Del Pozo, CEO of ThyssenKrupp
Elevator Southern Europe, Africa and Middle East
LAUNCHES

Hotels for Dubai Pearl


P
earl Dubai FZ LLC and MGM in the Dubai Marina area, Al Habtoor
MIRAGE (NYSE:MGM) have Group has unveiled the first com-
plans to develop Bellagio, plete commercial 5-star business
MGM Grand, and Skyloft tower in Dubai Marina. Forty floors
hotels, as well as branded residenc- of opulence, breathtaking views
es at Dubai Pearl, the $4 billion (Dh15 from three sides, and unrivalled
billion) world-class, fully integrat- settings are just the few attractions
ed luxury development in Dubai, of this imposing tower facing the
United Arab Emirates. Pearl Dubai serene Arabian Gulf. Managed by
FZ LLC will own and finance the Al Habtoor Properties, the tower is
250-room Bellagio hotel, 350-room the new vantage point awaiting the
MGM Grand Hotel, and 30-suite business world of Dubai.
Skylofts hotel, while MGM MIRAGE With 35 leasable commercial
Hospitality will manage and provide floors ready for occupation, a con-
technical services for the three new siderable number of these floors
ventures. have already been leased to multi-
Abdul Majeed Ismail Al Fahim, Chairman, Pearl Dubai FZ LLC and Jim Murren,
The agreement includes the national and other companies, the
Chairman and Chief Executive Officer, MGM Mirage
development of Bellagio branded Al Habtoor Business Tower presents
luxury residences, in addition to living city with a spectrum of com- choices of leasing a complete floor
featuring world-renowned dining, mercial, retail, residential, hospitality the development will be host to the or split into two spaces with a mini-
entertainment, spa and convention and leisure components. It will also world’s top brands and include sky mum size of around 3,250 square
that complement the luxury offer- have a 2,000-seat performing arts palaces with private pools and land- feet. Every floor has a carpet area
ing of the hotels. theatre aimed at meeting the needs scaped gardens, luxury branded of approximately 6,500 square feet,
Abdul Majeed Ismail Al Fahim, of Dubai’s growing cultural calendar apartments and condominiums. and has fully fitted floors and ceil-
Chairman of Pearl Dubai FZ LLC, said: and complementing the project’s Al Habtoor Business Tower ings. There is a luxurious VIP Lounge
“Our alliance with MGM MIRAGE re- entertainment offering. - Fulfilling the long standing de- on the 38th floor with direct access
flects our commitment to forging Featuring an active business dis- mand for world-class office spaces to the helipad – the only one in the
world-class partnerships with pre- trict with a quality urban lifestyle, area. Plus, tenants have access to
mium brands that are renowned for covered parking, 24 hour security
their operational excellence. The and access card entry control sys-
project’s entertainment elements tem.
will help complete the vision of mak- Being a prestigious property
ing the Dubai Pearl a true landmark
Being a prestigious property from the Al from the Al Habtoor Group, the
that will deliver an unforgettable Habtoor Group, the building adds exclusive building adds exclusive value to the
experience through its diverse com- value to the property by offering Privilege property by offering Privilege Ben-
ponents and unmatched services.” efits to every tenant.
The association between the Benefits to every tenant “We believe in making our prop-
two companies will see the Dubai erty distinct to make our tenants
Pearl project getting Dubai’s first feel unique. Every tenant at this
DUBAI REAL TIMES

hotel and residences brands under magnificent tower will enjoy Privi-
the MGM MIRAGE portfolio. lege Packages at Habtoor Grand
Located opposite the Palm Resort & Spa, besides enjoying ex-
Jumeirah island in the heart of the ceptional rates at Al Habtoor Mo-
Dubai Technology and Media Free tors, Diamondlease, hotels and
Zone, Dubai Pearl is a landmark desti- restaurants under Habtoor Hotels,
nation designed to offer spectacular Dubai National Insurance and Emir-
views of the Arabian Gulf. Through ates International Schools,” says Mr.
integrating first-class facilities, it will Mohammed Al Habtoor, CEO, Al 35
shape a pedestrian-friendly, 24-hour Habtoor Group.
UNDER CONSTRUCTION

Digging the dirt


N
ot all the cranes have Sheikh Ahmed. “At the core of this
stopped moving. There airport city will be the world’s larg-
are quite a few projects est airport which, once operational Dubai Logistics
still being built, and de- next year, will not only draw busi-
City (DLC), a core
velopers are eager to share their ness and trade to it but also create
progress photos to prove it. Some huge residential and commercial component of
have connected web cams to their opportunities. DWC’s multi-modal
websites while others regularly While we have extended the
place updated progress photos on opening date of the project to ac-
proposition, has
theirs. Many concerned with the commodate all related construction, begun licensing
building trade are keen to spread licensing and regulatory standards, completed
the word about their successful we have not lost sight of the long-
continuation of work, and grateful term vision of Dubai’s most stra-
warehouses and
buyers wait to see the outcome of tegically important infrastructure logistics offices
their signed agreements. development which is designed to and handing over
Bonyan International Invest- support its aviation, tourism, com-
ment Group (Holding) LLC has mercial and logistics requirements facilities to tenants
announced its plans to deliver over until 2050 and beyond.” to commence
1,000 property units by the end Dubai Aviation City Corporation
of the second quarter of 2009. In our resources and quality of projects; incorporates both Dubai World Cen-
operations on-site
line with this, the developer also therefore, we strive to remain true to tral and Dubai Airports Company.
revealed that three of its projects our commitments in meeting high Meanwhile, Dubai Logistics City
- Dubai Gate 1, ABBCO Tower and standards.” (DLC), a core component of DWC’s troubled economic times, but also
Sharjah Gate Tower - have already In compliance with RERA, Bonyan multi-modal proposition, has be- look positively at how DWC can sup-
been sold out to investors. At pres- has registered under the number gun licensing completed warehous- port the future of business in the
ent, all projects are undergoing the 257/2007. es and logistics offices and handing Middle East.”
final stages of completion, with the The Dubai Government’s single over facilities to tenants to com- The first passenger terminal too
developer finalising the legalities largest urban land development mence operations on-site. is 80 per cent complete with MEP
for the first two buildings to be de- project, Dubai World Central At the airport, the construction works ongoing. This terminal will
clared as completed projects, while (DWC) – the 140 square kilometre of the first of its 16 cargo terminals
Sharjah Gate Tower is at the home- Urban Aviation City under construc- has been completed, well on its way
stretch of its construction phase. tion in south west Dubai – will go to achieving the project’s ultimate
Strategically situated in the live in its first phase of operation goal of having an annual cargo ca-
heart of Dubai, ‘Dubai Gate 1’ is a when DWC-Al Maktoum Interna- pacity of 12 million tonnes. With
35-storey tower, which will house tional Airport opens in June 2010, a capacity of 200,000 tonnes and
comfortable and stylish one-, two- said His Highness Sheikh Ahmed bin spread over 41,000 square metres of
and three-bedroom apartments. Saeed Al Maktoum, Chairman, Dubai built up area, the terminal’s capacity
“We are looking forward to the Aviation City Corporation. can be expanded to 600,000 tonnes,
DUBAI REAL TIMES

delivery of 1,000 property units His statement came prior to this if required.
within our project portfolio, espe- year’s edition of the Airport Show “The completion of Dubai World
cially now when most developers held during May. Central’s first cargo terminal is a sig-
are facing daunting challenges “Our vision for Dubai is to be an nificant milestone in the project’s
in terms of completing their own unparalleled global commercial, history,” said HH Sheikh Ahmed.
developments,” said Anas Ata- trade and transportation hub with “Dubai’s forward looking govern-
treh, Vice Chairman of the Board, a unique integrated multi-modal ment continues to support DWC’s
Bonyan International Investment logistics platform in DWC which will thrust towards building a facil-
36 Group (Holding) LLC. “Our custom- change all known air, land and sea ity which will not only enable trade
ers have a strong appreciation of transportation parameters,” said HH and commerce to continue in these
“The completion of construction
of the ATC tower at Dubai World
Central is a giant step forward for
the region’s aviation sector which
has constantly seen growth every
year,” said HH Sheikh Ahmed. “The
completion of these facilities indi-
cates the progress we are making
towards the opening of the airport
next year and eventually of the en-
tire development across its several
components.”
Besides DWC-Al Maktoum In-
ternational Airport, Dubai World
Central comprises DLC and DWC
Aviation City, surrounded by its real
estate offerings - DWC Residential
City, DWC Commercial City and
DWC Golf City.
Jacques Stern, Senior Executive
Vice President of Accor recently vis-
ited the site of the Group’s first Pull-
man hotel in the Middle East, the
Majid Al Futtaim Group’s Mall of the
Emirates. The the two companies
signed an agreement to bring the
prestigious Pullman brand to the
Silicon Information Technology tower region to fill a gap in the upscale
business hotel market. The Pullman
have an eventual capacity of seven will be the second hotel on the site
million passengers with the airport’s of the Majid Al Futtaim Group’s flag-
ultimate capacity being 160 million “The completion of construction of the ATC ship retail and leisure destination
annually. tower at Dubai World Central is a giant step which is undergoing a multi-million
“Construction on all related infra- dollar expansion.
structure works is continuing with
forward for the region’s aviation sector which Mr. Stern visited the site to check
all our stakeholders recognising the has constantly seen growth every year” the progress of the hotel develop-
fact that Dubai World Central is a ment which is due to open in the
committed Dubai government proj-
ect; and once the global economic
recession tides out its cycle, work
towards its final master plan will re-
sume at its original pace,” explained
HH Sheikh Ahmed.
Another major achievement
is the construction of the Middle
East’s tallest free standing Air Traffic
Control (ATC) tower which has been
completed. Currently, the tower is
being fitted with all navigational
aids. Standing at 91 metres, the ATC
facility also includes a separate tech-
DUBAI REAL TIMES

nical block of 6,000 square metres


which will house offices, operations,
technical rooms, flight simulators
and a meteor observation cabin. In
addition, the facility has an airside
/ landside interface with secured From left to right: Jean-Luc Motot, Managing Director Middle East and Africa; MAF Properties; David Vély, Head of Development
- Hospitality, MAF Properties; Christophe Landais - Managing Director Middle East, Accor; Richard Reid - SVP - Development,
access to airside, offering air traf-
MAF Properties; Jacques Stern - Deputy CEO and Group CFO Accor; Dr. Najib Al Khaja - SVP - Hospitality, MAF Propoerties;
fic controllers the ability to handle
Philippe Baretaud , Director of Development Middle East, Accor; Christian Karaoglanian- Chief Development Officer, Accor;
multiple airborne airplanes as well
Brian Pirie, VP-Asset Management, MAF Properties; Mazen Amini, Vice President–Project Management, MAF Properties. 37
as on-ground aircraft.
second half of 2010.
Construction work is now un-
derway on one of the first projects
at Nakheel’s Madinat Al Arab district
at Waterfront. Plus Properties, the
Dubai-based regional real estate
company, has begun work on two
of its residential beachfront devel-
opments - Pixel Tower and Wave
Residence.
Marwan Al Qamzi, Executive
Managing Director, Nakheel South-
ern Projects - a portfolio which in-
cludes Waterfront, said: “We would
like to congratulate Plus Properties
on the start of construction work
on two residential developments
at Madinat Al Arab - a step that we
welcome as the master developer.
Across the heart of Waterfront, in-
cluding Madinat Al Arab, Badrah
and Veneto, construction and infra-
structure development is progress-
ing well, with the first residents at
Waterfront set to take occupancy
in 2010.” Georges Chehwane and Marwan Al Qazmi
Pixel Tower comprises 18 floors
with a variety of spacious and
luxurious apartments, private vil- such amenities as, health clubs, a
las and duplex penthouses. Wave school district, public facilities and
Residence-1, located on the beach, quick access to the proposed Dubai
takes its name from its shape and “As the first residential community in Opera House. Each apartment has
has been designed to offer tenants The Lagoons, the commencement of high-quality finishes, marble floors,
the elegance, comfort and ambi- high quality utilities and access to
ence worthy of a 7-star beachfront construction at Flamingo Creek marks an swimming pools. The development
residence. The project will have exciting step forward for the company” is also in close proximity to all major
nine floors and will feature studio, transport corridors.
one, two and three bedroom apart- Mr. Mohammed Nasir Falak &
ments as well as exclusive garden Associates proudly announce that
apartments with private pools or Deyaar Development PJSC, a Creek marks an exciting step for- over 50 per cent of the develop-
outdoor Jacuzzis. Both develop- regional real estate company dedi- ward for the company,” said Markus ment and construction of Silicon
ments embrace sustainable design cated to innovation, customer care Giebel, Chief Executive of Deyaar. Information Technology tower (SIT)
guidelines, are energy-efficient and and long-term sustainable growth, Flamingo Creek has been de- is complete, despite the recent eco-
eco-friendly, and aim for LEED Gold has announced that preparation signed for a premium contemporary nomic downturn, resulting from the
Certification. and substructure works on its Fla- lifestyle, where residents will enjoy global financial crises. Strategically
Waterfront is being designed mingo Creek development are un-
as an exemplar sustainable city derway. All units within the Dh1 bil-
founded on resource efficiency, so- lion real estate venture are sold, and
cial equity, and economic prosper- the project is scheduled for delivery
ity. Minimising ecological impact in 2011.
is considered in every decision of Strategically located adjacent to
DUBAI REAL TIMES

the city's design, construction and the arterial Ras Al Khor canal and of-
operation. Energy and water con- fering spectacular views of the Ras
servation are achieved through Al Khor Nature Reserve, Flamingo
integration of utilities in dedicated Creek is a unique low-density free-
centres, where process streams hold project comprising 244 villa-
are interlinked and waste is trans- style apartments and townhouses,
formed into energy to power the spread over 500,000 square feet.
city. Simulation is used in building “As the first residential communi-
38 design to ensure tough energy ef- ty in The Lagoons, the commence-
ficiency targets are achieved. ment of construction at Flamingo Flemingo Creek
(from Left to Right): Amgad O Gira, Director of Masharea; Walid Al Bagoury,
Managing Director of Bin Shafar; Abdullah Bin Mattar Al Falasi, CEO of Ishraqah
and Ammar Sweis, Group CFO of Ishraqah.

has awarded a Dh200 million con- consumption, increase air-condi-


tract to Bin Shafar Contracting for tioning efficiency, improve air and
the construction of the first phase water quality, and meet stringent
of its ‘Seasons Community’ residen- environmental standards.
tial project. Located in new Dubai’s “We aim to deliver quality envi-
Jumeirah Village Circle, Seasons ronmentally friendly properties to
Community consists of four low-rise our customers at no extra cost as an
clusters representing the four differ- affirmation of our sustainable stew-
ent seasons of nature. The develop- ardship and social responsibility. In
ment features 1,400 units of Garden fact, we hired an independent en-
apartments and townhouses and vironmental consultant for Seasons
will incorporate retail and other Community, despite the fact that this
commercial and lifestyle elements. meant delaying commencement of
The first phase of the project is our original construction plan and
scheduled for completion in the additional costs. The associated 7 to
Seasons Community fourth quarter of 2010. 10 per cent increase in construction
Abdullah bin Mattar Al Falasi, costs due to environmental consid-
CEO, Ishraqah, stated: “We have col- erations will not prevent us from
laborated with Bin Shafar for the pursuing our sustainability agenda,”
creation of an efficient manage- added Al Falasi.
ment plan that fully supports the Site enabling and shoring works
Waterfront is being designed as an exemplar project, in order to expedite mobili- for the second phase of the project
sustainable city founded on resource efficiency, sation and construction. We want to are currently underway, while the
social equity, and economic prosperity ensure that Seasons Community is main building tender package will
completed within the shortest pos- be launched shortly. In addition,
sible time in accordance with the several qualified bidders have lined
needs of its future residents. The up for the construction of the town-
new management strategy comple- houses in the first two phases of the
located in Dubai Silicon Oasis, on tion within record time of less than ments the property sector’s current project. Ishraqah is presently coordi-
Emirates Road, SIT tower, a high tech a year through its team of dedicated period of correction and is intended nating with Masharea Project Man-
commercial complex, will comprise and professional engineers, project to help Ishraqah strategically posi- agement on the analysis and evalu-
of three basements plus ground managers, site supervisors, quantity tion itself in the market and fulfil ation of these bids and the selection
floor and twenty five floors featur- surveyors and construction work- our commitment to our buyers. Our of the successful bidder will be an-
ing State of art fitness centre with ers that have been assigned to the fresh management approach com- nounced in the upcoming weeks.
gym, cafes, restaurants, shops, ex- project, under the professional su- bined with recovering market con- Ishraqah is also overseeing the
DUBAI REAL TIMES

clusively designed spacious lobby, pervision of Consultant M/S Adnan ditions will maximise the appeal of development of a commercial com-
high-speed and panoramic eleva- Saffrini. both our residential and commercial plex on Sheikh Zayed Road beside
tors etc. Mr. Mohammed Nasir Falak said,’ projects.” Emaar Business Park called The
The commercial complex will At an advance stage of construction Seasons Community is being Onyx. The project features two office
take advantage of a thriving urban SIT tower offers an ideal opportunity developed as a ‘green’ community towers, a business hotel, and dining
community with a master planned for all sections of corporate entities in alignment with Dubai’s Green and retail facilities. The Onyx covers
residential environment nearby. and we are pleased to see our latest Buildings initiative. This commit- a total construction area of around
Beijing Emirates main contrac- project get underway successfully ment provides customers with more 2.3 million square feet and includes
tor of the SIT tower has completed before the delivery date’. comfortable homes that cost less to a five-level car park with slots for ap- 39
over 50 per cent of the construc- Ishraqah has announced that it operate, reduce electrical and water proximately 2,000 cars.
UNDER CONSTRUCTION

City of Arabia shows shape


of things to come
New images highlight spectacular nature of development - future home for 40,000 people
- as construction work enters a new phase

City of Arabia Mall of Arabia The Restless Planet theme park and
earth science museum

N
ew images released re- tractive retail outlets set beside a ments of City of Arabia now reach- Group also has interests in real estate,
cently of City of Arabia meandering eight kilometre canal. ing important stages, we wanted to agencies for overseas companies,
highlight the spectacular Construction work has now com- give all our stakeholders a detailed gems and jewellery, automobiles
nature of the $5 billion menced on I&M Tower, Metro Tower picture of what they can expect and transport and food distribution,
retail, residential, commercial and and Wadi Tower, the first three of the when the project is completed, and as well as an expanding luxury yacht
entertainment development taking high-rise commercial and residential the new images do that perfectly,” division, Sunseeker Middle East,
shape in Dubai. buildings which will create a dramat- said Ilyas Galadari, Chairman of Ilyas which enjoyed a highly successful
With round-the-clock construc- ic skyline here. & Mustafa Galadari Group. appearance at the recent Dubai In-
tion work entering a new phase, City Mall of Arabia will offer more Mustafa Galadari, the Group’s ternational Boat Show.
of Arabia owners, the Ilyas and Mus- than 1,400 diverse retail outlets, and Vice Chairman and Managing Di- City of Arabia, which will become
tafa Galadari Group, commissioned the first phase is already 89 per cent rector, added: “Construction work is home for 40,000 people, will be a
a new range of artist’s impressions contracted and reserved. It will also continuing to go full steam ahead, vibrant, self-contained urban com-
which put the project and each of feature a rooftop hotel, waterfront and major visible progress is now munity, with business and admin-
its four main elements into perspec- alfresco dining and entertainment particularly evident at Mall of Arabia, istrative offices, schools and clinics,
tive. for all the family, as well as the re- which is a very exciting develop- supported by luxury apartments,
City of Arabia will have a phased markable Restless Planet theme park ment in its own right.” shops, galleries, restaurants and
opening starting towards the end of and earth science museum. The Ilyas and Mustafa Galadari unique attractions.
2010, beginning with Mall of Arabia, Housing the world’s largest and
one of the world’s largest shopping most lifelike collection of anima-
destinations, which will have a gross tronic dinosaurs, Restless Planet
leasable area (GLA) of 10 million will make visitors think they’ve
DUBAI REAL TIMES

square feet over two phases. wandered onto the set of a Steven
With workers on site casting ap- Spielberg Jurassic Park blockbuster.
proximately 60 pile caps per week on One design team member, Dr. Jack
the 20 million square foot site beside Horner, served as a scientific consul-
the Emirates Road, the mall is rapidly tant to Spielberg on three Jurassic
taking shape. Construction work is Park movies; and Restless Planet will
also moving quickly ahead on Wadi take visitors a 100 million years back
Walk, the projects waterfront com- in time on a dramatic theme ride
40 munity characterised by stylish into the prehistoric world.
apartments, outdoor cafes and at- “With each of the four main ele- Wadi Walk waterfront community
INFRASTRUCTURE

Plumbing new depths


pany, combined with our cash rich
position ensures we will continue to
meet all our projects’ requirements.”
DSI’s contract with Kingdom of
Sheba incorporates the supply, in-
stallation, testing and commissioning
of complete MEP works including: air
conditioning, ventilation, plumbing
and drainage, building management
system, fire fighting, power, tele-
phone and data, fire alarm system,
intercom system, central emergency
lighting, CCTV, access control secu-
rity systems, PA/BGM system and
lighting control system.
The company is a leading UAE-
based end-to-end service provider
of MEP contracting, infrastructure,
water and power (IWP) and civil
contracting services. On March 16
2009, DSI became the first specialist
contracting company to list on the
Kingdom of Sheba Dubai Financial Market (DFM) and is

C
ontracts are being award- Kingdom of Sheba is a mixed-use
ed to worthy companies, residential and leisure luxury resort
mainly based locally, for located on the crescent of the palm. The resort is the largest resort IFA Hotels
pipework, design, MEP, The resort is the largest resort IFA & Resorts is developing. DSI has been
AC and other infrastructure needs.
On the whole, the trend seems to
Hotels & Resorts is developing. DSI
have been awarded the contract for
awarded the contract for the first phase
be to use established companies the first phase of the development of the development which consists of the
with proven track records for good which consists of the residential residential component (Balqis Residence)
work. Those who have done it the component (Balqis Residence) and
old fashioned way, i.e. by consistent- the Private Residence Club (Fair-
and the Private Residence Club (Fairmont
ly working well in the past, are now mont Heritage Place, Kingdom of Heritage Place, Kingdom of Sheba)
reaping the benefits of good busi- Sheba).
ness attitudes and practices. DSI Vice Chairman and CEO Khal-
Drake & Scull International PJSC doun Tabari added that his com-
(DSI) has been awarded the Dh226 pany is in a unique position at the
DUBAI REAL TIMES

million Mechanical, Electrical & moment. “There are still a lot of


Plumbing (MEP) contract for the opportunities in the construction
Kingdom of Sheba development on industry in the UAE, and the com-
Palm Jumeirah. With this contract, pany is well equipped and has the
DSI is now working on six separate capabilities and resources to take on
projects, covering a total built up mega projects, and deliver as per
area of 1.2 million square metres, the client’s requirements of time,
on the Palm Jumeirah, making it cost and quality. The expertise we
the largest MEP contractor on the gained in the UAE in over 40 years 41
island. as a specialist MEP contracting com-
(from left to right) Eng. Isam Abdullah Edyak, Managing Director of Anwar Al Aqsa
and Rizwan Shaikhani, Joint Managing Director, Memon Investments
and 'Cambridge Business Centre'. The
Escrow accounts for all the projects
are already in place with the Com-
mercial Bank of Dubai, in compliance
with the requirements of RERA and
Dubai Land Department.
Palm Utilities (PU), the water and
district cooling utility service pro-
vider established by government-
owned investment firm Istithmar, has
announced that Palm District Cool-
ing (PDC) has recently renewed its
partnership with Barrel Energy LLC,
a Dubai-based fuel supply manage-
ment and lubricants service com-
pany. The move underscores PDC's
strong commitment to support the
Mohammed Bin Rashid Establish-
ment for Young Business Leaders,
a government programme that fa-
cilitates the development of business
and entrepreneurial activity among
UAE nationals, of which Barrel Energy
is a member.
(from right to left) Mohammed Abulhoul, Founder and Managing Director, Barrel Energy LLC and Shafiq Khoori,
Managing Director, Palm District Cooling Barrel Energy has supplied over
Dh100 million or nearly seven million
currently working on projects across IG (imperial gallons) of fuel to PDC
the MENA region with a total value and has also delivered logistics man-
reaching approximately Dh6 billion. agement services to PDC's district
Memon Investments has award- Memon Investments currently has a cooling station since 2007, support-
ed a Dh19.5 million MEP contract portfolio of projects valued at Dh1.34 ing the temporary cooling service
to Anwar Al Aqsa, a leading UAE- provided to customers. At its peak,
based company. The MEP contrac-
billion, which includes the high profile Barrel Energy delivered up to one
tor will manage the electrical, fire residential ‘Champions Towers’ series, the million IG of fuel a month to PDC; the
alarm, plumbing, and fire fighting luxurious ‘‘Gardenia I & II’, ‘Frankfurt Sports company has also served most of its
works within ‘Champions Tower II’ project sites including Palm Jumei-
and ‘Champions Tower III’ projects,
Tower I’ and ‘Cambridge Business Centre’ rah, Discovery Gardens, and Jumeira
located in Dubai Sports City. With Lake Towers, and has also been a key
construction progressing on the supplier of other government and
two towers the developer most non-government entities.
recently awarded a Dh1.96 million Mohammed Abulhoul, Founder
elevator contract to ETA MELCO for lighting for Memon Investments’ high profile developers. With offices and Managing Director, Barrel En-
the installation of six high-speed, luxury residential developments. in Dubai, Sharjah and Ajman, the ergy LLC said: "Barrel Energy is fully
state-of-the-art Mitsubishi elevators The contract with Anwar Al Aqsa company comprises qualified elec- committed to support Palm District
within the 14-storey Champions follows previous deals with other tricians, plumbers and technicians Cooling in its growing business ven-
Tower II and the 16-storey Champi- top companies, including a Dh55.5 who leverage its good infrastructure, tures across the UAE market by main-
ons Tower III. million deal with Al Sarh Contract- material resources and equipment taining the highest quality standards
Memon Investments has revealed ing and a Dh82 million agreement to execute major projects. Anwar in the delivery of our products and
that its decision to award the con- with Cairo Contracting Company Al Aqsa’s extensive expertise across services."
tract to Anwar Al Aqsa was based for the construction of Champions various levels of MEP engineering, in PDC currently provides district
on the company’s experience within Tower II and Champions Tower III addition to its operations involving cooling services to several presti-
DUBAI REAL TIMES

the engineering, owner, vendor respectively. the design, manufacturing and as- gious mega developments in the
and trade contractor communities, Having worked with a wide vari- sembly of distribution boards, were UAE, including the Gardens Residen-
which has enriched its capacity to ety of projects across the UAE - from key factors that helped the contrac- tial Complex, Jumeirah Islands, Dis-
provide the greatest value to a proj- villas to mid-rise buildings to high- tor clinch the deal. covery Gardens and Palm Jumeirah
ect. Specifically, the company will be rise towers - Anwar Al Aqsa has de- Memon Investments currently Trunk. PDC is also renowned for be-
utilising its expertise in HVAC sys- veloped a distinctive quality in its has a portfolio of projects valued at ing a socially responsible company
tems installation, building electrical workmanship and has impressed Dh1.34 billion, which includes the and a leading innovator in the district
works, generator installation, interior various local authorities, includ- high profile residential 'Champions cooling industry.
42 and exterior plumbing, fire protec- ing the UAE Ministry of Electricity Towers' series, the luxurious ‘'Garde- Palm Utilities, through PDC and
tion systems installation and exterior and Water, as well as a number of nia I & II’, ‘Frankfurt Sports Tower I’ Palm Water (PW), has been estab-
The external
architecture of the
tower is inspired by
the geometries of
the desert flower
Hymenocalis and
regional patterning
systems

of the tower have been inspired by


cursive Arabic writing as rooms flow
elegantly in an intelligent interplay of
light and shadow.”
A mixed-use tower, featuring the
world’s first Armani Hotel Dubai and
Armani Residences, alongside cor-
porate suites, residences, retail and
leisure facilities, Burj Dubai is at the
centre of Downtown Burj Dubai, a
Burj Dubai elevator lobby 500-acre mega-development by
Emaar Properties. Among an array
lished to address the region's unique tional engineering expertise, Burj ing and dark, intricate Brazilian of lifestyle amenities, the tower will
requirements in the distinctly critical Dubai will symbolise the aesthetic Santos Rosewood to reflect shelter, have a public observatory deck on
areas of district cooling, and waste- unison of many cultures – from comfort, and above all, restrained level 124.
water treatment. PU has revealed Arabia and the rest of the world.” luxury. Surfaces on the upper floors Downtown Burj Dubai encom-
that it is exploring possible joint He added: “The interiors place a will be advanced in finishes of sil- passes The Dubai Mall, one of the
venture initiatives for other util- special focus on the region’s heri- ver metallic lacquers to provide a world’s largest shopping and en-
ity projects in the Middle East, India tage and geographical location in sense of brightness and enlighten- tertainment destinations; several
and across Asia as part of its growth its design approach and selection ment. Commissioned local and hotels; offices and homes. A stellar
strategy for 2009. of materials. The design emphasis- international fine art pieces will be attraction within the community is
Work on the interiors of Burj es on the best results in space plan- thoughtfully integrated across the The Dubai Fountain, the world’s tall-
Dubai, the world’s tallest building ning and utilisation alongside the interiors of tower to complete the est performing fountain.
developed by Emaar Properties, is finest detailing, to give residents atmosphere of ultimate refinement. Burj Dubai has already achieved
progressing alongside the tower’s and visitors an unprecedented life- Ms Andric explained: “Burj the distinction of being the world's
exterior cladding. Currently, over 800 style experience.” Dubai’s interiors are mindful of the tallest structure, surpassing the KV-
metres (2,624.7 feet) high, the tow- A globally acknowledged and building’s prominent international LY-TV mast (628.8 metres; 2,063 feet)
er’s interiors are an aesthetic con- award-winning interior designer address and its true purpose as in North Dakota, USA. The tower
fluence of the best of architectural credited with several projects and home to a number of people, while is taller than Taipei 101 in Taiwan,
influences from around the world large-scale architecture, Ms An- being inspired by the fascinating which at 508 metres (1,667 feet) has
and the region. Complementing the dric’s design approach was not to local culture and the challenge of held the tallest-building-in-the-world
external architecture of the tower take literal, stereotypical transla- enhancing the value of a global title since it opened in 2004. Burj
that is inspired by the geometries tions for the region’s cultural influ- landmark. This unique approach is Dubai also surpassed the 31-year-old
of the desert flower Hymenocalis ences but to turn to scholarship to reflected in all aspects from careful record of CN Tower, which at 553.33
and regional patterning systems, develop the vocabulary inspired by planning of all the public areas, the metres (1,815.5 feet) has been the
the interior design of Burj Dubai was the region’s history, cultural under- subliminal reference to free flowing world’s tallest free-standing struc-
conceptualised and led by award- standing of the heritage of the Arab Arabic script, colours and materials ture on land since 1976.
DUBAI REAL TIMES

winning designer Ms Nada Andric of world and its interpretation into and the implementation with an Designed by SOM, Burj Dubai
Chicago-based Skidmore, Owings & spatial elements, the right selection aim to showcase global technology is constructed by high-rise experts
Merrill LLP (SOM). of materials and a concerted effort and human achievement.” South Korea’s Samsung Corporation.
Mr Mohamed Alabbar, Chairman, to blend the traditional motifs and She added: “For the interiors, the Turner Construction International is
Emaar Properties, said: “Burj Dubai patterns with modernity. highly edited colour and material the project and construction man-
is a once in a lifetime architectural Apart from glass, stainless steel palette is inspired by the region’s ager. The tower employs the latest
accomplishment and is the Arab and polished dark stones, the inte- fine sand and the tradition of pearl in wind engineering, structural en-
world’s tribute to the art and science riors of Burj Dubai also feature Silver harvesting, which are offset by the gineering, structural systems, con-
of modern engineering and design. Travertine flooring, Venetian stucco indigenous dark hues of wood. struction materials and construction 43
A global icon that draws on interna- walls, handmade rugs, stone floor- The layouts for the common areas methods.
ENVIRONMENT

Painting a clean picture


While some want to clean up the air, others want to clean up the earth. Here are two different
companies doing two totally different types of cleaning.

N
ew technology in the UAE For decorative, water-based paints, efficient management of waste. number and we hope that the num-
paint industry is helping the limit of VOCs is currently set at no “Through the introduction of ber will also promote Dulsco WMS’
to drastically reduce the more than 50 grams per litre, while this toll-free number, the company presence and activities in a very
environmental impact of for industrial coatings the limit is set has once again demonstrated its positive manner across the UAE.
volatile organic compounds (VOC) in at 150 gram per litre. firm commitment to environmental We would like all companies and
the coatings. VOCs can release low- AGP is also more than 75 per cent conservation,” said Prakash Parab, individuals in the UAE to be aware
level toxin emissions into the envi- of the way towards reaching targets Director – Dulsco Waste Manage- of and practice efficient waste man-
ronment for years following their laid down for 2010 to further reduce ment Services. “Any queries related agement by recycling and segregat-
application, but scientific research the VOCs in its coatings. It has now to sales, operations or any other as- ing their waste at source. We hope
supported by the research and de- implemented changes to manufac- pect of WMS are attended to on this the 800 – WASTE (92783) number
velopment laboratories at Al Gurg ture better and more environmen- number. Basically it’s a single hotline will create greater awareness and
Paints (AGP) is helping to drasti- tally-friendly paints and coatings for people to contact us at any time lead to more people disposing
cally reduce the impact. Working through water and solvent based for anything related to the manage- waste in the most environment
closely with UK-based ICI Dulux, AGP products. ment of both solid and liquid waste. friendly manner.”
has developed advanced practices Dulsco, the region's largest Waste It is part of the Dulsco corporate Dulsco’s Waste Management
which limit the amount of VOC in Management Service (WMS) compa- vision to continually enhance cus- Services (WMS) is strongly commit-
paints and coatings currently being ny, has announced the introduction tomer service at no cost to them. ted to protecting the environment.
used on many projects throughout of a toll-free number 800 – WASTE Until now we had a number that was The division collects and disposes
the UAE. (92783) dedicated to waste manage- also operational around-the-clock hazardous and non-hazardous
“Reducing the impact we have ment, making it the first waste man- but was not a dedicated hotl-ine solid and liquid waste to landfills
on the environment is our number agement specialist in the Middle and was not toll-free. A number like and treatment facilities in compli-
one goal,” said Sunil Gudur, Chief East to do so. The new number is 800 – WASTE (92783) is both easy to ance with the laws and regulations
Manager, Al Gurg Paints. “This latest already operational and is manned remember and to access.” of the Municipality Environment
technology helps us to manufac- 24/7, which means customers and in- Ranjit Jose, Senior Manager – and Safety Section. WMS is the first
ture products low in VOC while still dividuals can speak to a waste man- Commercial, Dulsco, said, “All exist- waste management company in
being able to offer total protection agement specialist any time and get ing Dulsco customers have been the UAE to be ISO 9001: 2008 and
solutions for construction projects advice on all aspects concerning the informed of this convenient new ISO 14001:2004 certified..
throughout the UAE. These develop-
ments will see the biggest change to Al Gurg paint is on the bridge to Palm Jumeirah
the paint industry in years.”
AGP is the first paint company
in the UAE to become members of
the US Green Building Council, and
all ICI Dulux products are supplied
DUBAI REAL TIMES

exclusively in the UAE through AGP,


employs LEED (Leadership in Energy
and Environmental Design) stan-
dards in all its paints.
The company is working with
leading consultants in the region to
draw up LEED compliant paint spec-
ifications for their building projects.
44 These will help buildings aquire LEED
compliance in various categories.
APPOINTMENTS

Restructuring top management


C
asamia Star Real Estate team. The company also announced trajectory of the company in the realise our economic potential. The
Broker LLC has announced the appointment of Mr. Khaled Kadik changed global economic and re- new management team is a pivotal
a complete restructuring as the new Managing Director and gional real estate landscape. We are step in this direction.”
in its top management Mr. Merzak Gaci as the new General in extraordinarily challenging times Mr. Kadik and Mr. Merzak’s exten-
team as part of its efforts to further Manager. that require innovative solutions, sive knowledge about the real es-
boost its regional client base. Its for- Announcing the new team, Mr. and aggressive, unprecedented ac- tate industry will play a pivotal role
mer CEO Mr. Hendrik Hommel, who Hommel said: “The Board of Direc- tions. We have identified, evaluated in driving Casamia Star L.L.C’s initia-
continues to hold his previous re- tors decided to announce a new and debated a variety of different tives and help achieve its objectives,
sponsibility, will spearhead the new team to spearhead the growth business models and strategies to he added.

opportunities for about four million


Arab nationals. It also contributes 18
Casamia Star LLC is a merger between two leading German names, real estate expert per cent of the total Arab economy
Casamia Star LLC and world renowned architectural firm Gesamtplanungsbuero. Salim Sayegh said: “This confer-
Established by renowned architect Hendrik A. Hommel, included the project ence marks the first step towards
nicknamed ‘Largihaus’ building designed by Mr. Hommel and was featured in the establishing strong cooperation be-
Guinness Book of World Records 1989 (and years to follow) as Europe’s largest office tween Arab real estate companies
building with surface area of 87,000 square metres. The company has eminent and organisations. We will work ef-
architectural experts specialising in Project Management, Architectural Design, fectively to lay the right foundations
Investing, Buying, Selling, Renting and Property Management.
and to explore the best opportuni-
ties that will allow us to fully lever-
age available resources. We aim to
years spent in the region’s leading National Paints has announced meet the requirements of all busi-
organisations where he held a port- that its Chairman, Salim Sayegh has ness activities related to the sector,
folio of senior executive responsi- been appointed as the President of and firmly believe that this initiative
bilities, and we look forward to his the Building Materials Division of the will have a positive impact on the
bringing that record of expertise to Arab Union for Real Estate Develop- development and support of Arab
Tanmiyat." ment (AURED). Eighteen countries real estate activities. We shall pro-
The former CEO of KSA-based recently joined together to form this mote the exchange of experiences
Zain and the top executive respon- first ever umbrella organisation for and unified efforts to overcome the
sible for heading the teams that the region’s property market. The challenges faced by this sector.”
launched its operations, Dr. Alah- announcement was made during a Jess Stoffer, President of the
madi is a renowned business and three-day conference on the estab- World Conglomerate of Interna-
technical expert in the telecommu- lishment of the union held in Cairo, tional Real Estate Unions, delivered
nications sector. Egypt, attended by representatives a speech in which he confirmed the
“I am delighted to be taking on from all Arab countries. approval of the inclusion of the Arab
Dr. Marwan Ibrahim Alahmadi this role at such a fast-growing and This latest development reflects Union in the international group. He
prominent company with a portfo- the important position of the real invited attendees to participate in
DUBAI REAL TIMES

lio of projects in KSA, UAE, Turkey, estate market in the Arab world. international conferences to be held
Tanmiyat Group, a Middle East and Jordan. There are numerous op- The industry provides employment in Madrid and San Diego.
developer and investment com- portunities that currently allow the
Salim Sayegh
pany, has appointed Dr. Marwan company to continue its expansion,
Ibrahim Alahmadi as the new Chief and I am keen on building upon the
Executive Officer of the group. company’s successful model and
The Chairman of Tanmiyat unique approach," said Dr. Alahmadi
Group, Sheikh Sulyman bin Ab- who will be responsible for manag-
dulaziz Al Majed said, “He brings a ing the Tanmiyat Group investments 45
wealth of experience to us from his globally.
MARKET TRENDS
UPDATES // LAWS&& ANALYSIS
REGULATIONS
//

Q&A
Your questions answered by
Jacqueline Latham, DLA Piper
Middle East LLP

Q. My tenancy agreement is due to expire in a month. I have been in walls. We are being told by these purchasers that we must rectify the
negotiations with my landlord about renewing the lease at a cheaper defects but as the developer, is this really our responsibility 18 months
rent. My landlord has come back to me and now says that I must leave down the line?
because he wants to live in the property. Is this possible? A developer can be held accountable because Article 26 of Law No. 27 of
In the event that a landlord (or his "first degree" relative) wants to move 2007 concerning the ownership of joint properties (condominiums) in the
into a property that already has a tenant in place, the general position is Emirate of Dubai, places an obligation on developers in respect of struc-
that the landlord must give the tenant notice, by way of a Notary Public or tural defects for a period of 10 years and installed defects for a period of
registered mail, 12 months' prior to the tenancy contract expiring. If the one year, both periods commencing from the date the completion state-
tenant is evicted at the end of the tenancy contract on the grounds that ment has been obtained. However, you may take some comfort from the
the landlord wishes to use the property himself or for a first degree relative, fact that Article 880 of the Civil Code (Law No. 5 of 1985) provides that
the landlord may not lease the property to another tenant for at least two an engineer and a contractor working under the engineer, will both be
years for residential properties, and three years for non-residential proper- liable to their client (presumably developers) for structural and installed
ties, both periods commencing from the date of recovering the property, defects for a period of 10 years commencing from the time of delivery of
unless the relevant judicial committee decides a shorter period is appro- the work.
priate.
Q. I work in the sales department of a development company and we Q. I am a French national, currently based in KSA, and I was visiting
have been selling units off-plan for some time. However, lately some Dubai with my family earlier this year. We really enjoyed our trip and
purchasers have defaulted on their obligations under their SPAs. I have as a result, we have been considering purchasing a property in Dubai.
heard that new measures have been introduced concerning off-plan We were taken by some of the villas we drove past in Jumeirah but a
sales and I would like to know if these will affect refunds to purchasers. friend told us that there could be some restrictions on where we can
buy. Is this true?
Yes. Law No. 9 of 2009 was recently issued and it amends Article 11 of Law
Yes. The areas designated for foreign ownership in Dubai are set out in
No. 13 of 2008, which essentially dealt with the monies a developer can
Regulation No. 3 of 2006 concerning the determination of areas where
retain in the event of a purchaser's default in respect of an off-plan pur-
non-locals can acquire properties in the Emirate of Dubai, which pre-
chase. The new Law gears the amount that a developer can retain against
scribes a list of areas where non-nationals can acquire absolute ownership
a percentage-based construction milestone. For example, if 60% - 79% of
(essentially, freehold) or usufructs of up to 99 years: for example, there are
a development has been completed, the developer can retain 40% of the
plots on Palm Jumeirah and at Dubai Marina, which are designated areas.
purchase price, as specified in the sale and purchase agreement. Law 9 of
DUBAI REAL TIMES

It is useful to obtain the actual plot reference, as per the title deed of the
2009 also provides that the Real Estate Regulatory Authority (RERA) may
property in question, and check the reference against the areas listed in
cancel a project upon consideration of a ground-based report. In such an
the regulation. There are, however, areas in Dubai which are commonly
event, a purchaser will receive a full refund in accordance with Law No. 8
thought to be designated areas but these have not in fact been legally
of 2007 concerning escrow accounts of real estate developments in the
designated as such, and therefore, a developer cannot validly claim that it
Emirate of Dubai. Therefore, it is important to be familiar with the project
has been. It may be the case that these areas will be designated as areas
completion bands and how it will affect the monies that a developer can
permitting foreign ownership in the future, but this is a risk which you may
retain if a purchaser defaults.
or may not wish to take.

46 Q. We developed a property 18 months ago and have received some Jacqueline Latham is a Legal Consultant (England and Wales qualified),
complaints from several purchasers about cracks appearing in their Real Estate at DLA Piper Middle East LLP, Dubai, www.dlapiper.com
UPDATES // LAWS & REGULATIONS

Translation and views supplied by Al Tamimi & Company


and do not necessarily reflect RERA’s point of view

Law No. (9) of 2009


amending some provisions of Law No. (13) of 2008 Regulating
the Interim Real Estate Register in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai
After taking into consideration Law No. (8) of 2007 Concerning Guarantee Accounts of Real Estate
Developments in the Emirate of Dubai;

Law No. (16) of 2007 establishing the Real Estate Regulatory Agency;

Law No. (13) of 2008 Regulating the Interim Real Estate Register in the Emirate of Dubai Law No. (9) of 2009
(hereinafter referred to as the “Original Law”).

Issue the following Law:


Article (1)
Articles 2 and 11 of the Original Law shall be replaced with the following text:
Article (2)
The following words and expressions shall have the meanings set out opposite them unless the context
otherwise requires:

Emirate : Emirate of Dubai.


Department : Department of Lands & Properties.
Establishment : The Real Estate Regulatory Agency
Real Estate Register : The Real Estate Register maintained by the Department.
Interim Real Estate Register : A set of documents kept in written or electronic form in the
electronic register at the Department in which all contracts for
the sale of real estate and other dispositions off plan are recorded
before being transferred to the Real Estate Register.
Real Estate : Land and permanent structures erected on it.
Real Estate Unit : The subdivided part of the real estate including any subdivisions off plan.
Off Plan Sale : Sale of subdivided real estate units off plan or not yet completed.
Master Developer: A person licensed to develop real estate and sell its units in the Emirate.
Sub-Developer : A person who develops part of a real estate project of a Master
Developer under an agreement between them.
Broker : A person engaged in real estate brokerage activities pursuant to
Regulation No. 85 of 2006 regulating the Register of
DUBAI REAL TIMES

Real Estate Brokers in the Emirate of Dubai.


Competent Authorities : The authorities concerned with licensing and registering real
estate projects in the Emirate.

Article (11)
1. In the event that a purchaser defaults on any term of the contract he made with the Developer
for the sale of a Real Estate Unit, the Developer should notify the Department accordingly and the
Department will then give the purchaser 30 days notice to fulfill his contractual obligations, by hand,
registered post or email.
47
2. If at the end of the period referred to in sub-clause 1 of this Article the purchaser has not fulfilled
his contractual obligations, the following provisions should apply:
a. If the Developer has finished not less than 80% of the real estate project then the Developer may
retain all amounts paid and request the purchaser to pay the outstanding amounts of the contract
value. If this not possible the Developer may request the sale of the real estate at a public auction
to obtain the outstanding amount.
b. If the Developer has finished not less than 60% of the real estate project then he may terminate the
contract and forfeit not more than 40% of the real estate unit value as mentioned in the contract.
c. If construction of real estate projects has commenced but has not reached 60% the Developer may
terminate the contract and forfeit not more than 25% of the real estate unit value as mentioned in
the contract.
d. In projects where construction has not commenced for reasons outside the Developer’s control
and without any neglect from his side the Developer may terminate the contract and forfeit not
more than 30% of the amounts paid by the purchaser.
3. For the purpose of paragraphs c and d of sub-clause (2) “construction” means that the Developer
has taken possession of the real estate project site and has commenced construction works as per
the designs authorised by the Competent Authorities.
4. For the purpose of paragraphs b, c and d of sub-clause (2) the Developer must return the due
amounts to the purchaser within one year from the date of termination or within 60 days from the
date of resale of the real estate unit whichever first occurs.
5. Notwithstanding what is mentioned in sub-clauses 1 and 2 of this Article the Establishment
pursuant to a report may decide to cancel the real estate project and in this case the Developer
should return all amounts collected from purchasers as per the procedures and provisions stated
Law No. (9) of 2009 in Law No. 8 of 2007 concerning guarantee accounts of real estate developments in the Emirate of
Dubai.
6. The provisions mentioned in this Article do not apply to plot sale contracts where off-plan sales
in the plot have not commenced as in such case it remains subject to the terms mentioned in the
contract entered between the two parties.
7. The provisions of this Article apply to all contracts entered into before this Law came into effect.

Article (3)
This Law shall be published in the Official Gazette and shall take effect from its date of publication.

MOHAMMED BIN RASHID AL MAKTOUM


RULER OF DUBAI

Issued in Dubai on 12 April 2009.


DUBAI REAL TIMES

48