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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 Message from the CEO


Vanit Sethi vanit@sterlingp.ae
Manju Ramanan manju@sterlingp.ae

Creative Director
Better supply management
Harikumar PB harikumarpb@gmail.com I view the merger of Emaar Properties with the Dubai Holding entities of Dubai
Properties, Sama Dubai and Tatweer as the best thing that could have happened
Designer
to the Dubai real estate sector. The merger will surely lead to significant synergies
Ujwala Ranade ujjwalaranade@yahoo.com among the activities of the companies concerned, with the post-merger outfit
enjoying the strengths and clout of a much bigger entity. But from my point of view,
Sales and Marketing
the most critical advantage that it provides to the sector is the ability to influence
Product Manager and manage supplies to the market. The consolidation will provide for better supply
Vijayan G vijay@sterlingp.ae planning so that the city does not witness any unregulated growth in the real estate
sector, which has been the case in the past.
Accounts & Administration Emaar and Dubai Properties are estimated to be in a position to release a total
Biju Varghese biju@sterlingp.ae number of over 5,800 new units to the market during 2009 out of a total supply of
over 9600 units, with Nakheel accounting for over 3,800 properties, which means
Emaar and Dubai Properties account for 60 per cent of the market supply.
Circulation Supervisors
Ibrahim A. Hameed In 2010, supplies from the combined entity are estimated to come down to a little
Saleem K U over 55 per cent of the total, although the total supplies to the market are set to
more than double. Out of the 19,610 new units expected to be released to the
market in 2010, the share of Emaar and Dubai Properties is projected to be 10,810
units, with another 8,800 properties coming from Nakheel.
Printing The consolidation of the sector will provide developers the opportunity to
Asiatic Printing Press L.L.C., PB 3522, better manage supplies so that the new additions to the market do not lead to
Ajman, UAE. Tel. 06 743 4221, any oversupply, which could exert downward pressure on prices and the overall
www.asiaticpress.com, sentiment in the Dubai real estate sector.
email: asiatic@eim.ae
We in RERA have all along been stressing that there was need for a consolidation
Distribution: Tawseel PB No 500666
among the city’s developers so as to allow for better planning and control of all
Dubai, UAE. Tel: (+971 4) 342 1512
aspects of the market. The merger of Emaar and Dubai Holding companies is a
Sultanate of Oman: Al-Atta’a major move in this direction.
Distribution Est., Kuwait: The Kuwaiti
Group for Publishing & Distribution
Co.Bahrain: Al Hilal Corporation,
Eng. Marwan Bin Ghalita
Qatar: Dar Al-Thaqafah, Saudi Arabia: CEO, Real Estate Regulatory Agency
Saudi Distribution Company

RERA neither takes Sterling Publications FZ LLC Loft Office 2, G 01, Dubai Media City
responsibility nor accredits any P.O. Box 500595, Dubai, UAE. Tel. +971 4 3678061 + 971 4 367 2245, Fax +971 4 367 8613
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C
O
N
T
E 3
4
Branch Office
News
RERA office at Emaar Business Park
Evaluations
N 9 Statistics June figures

T 6 Taqyeem
Rules for Valuers

S 10 Discussion Believing in the Dubai brand


12 Profile Royal Institution of Chartered Surveyors
14 MTA Restoring confidence in the market Financing options
17 Comments Auction results
Middle income housing segment
Investing for the long term
You snooze you lose
Local tales
7 Personality Human resources are your winners
Mohammed Rashid bin Serdah 23 Facilities & Services Facilities management in demand
Energy reduction
27 Handovers A set of keys
DUBAI REAL TIMES

28 Infrastructure Water and wastewater treatment


30 Dubai Focus A defiant mood
36 Community Events The meaning of CSR
37 Well Done Who’s Who of real estate lawyers
42 Developers List of Developers
2 48 Law & Regulations Questions & Answers
COVER STORY

Branching out
By Linda Benbow

W
ith the amount of of real estate developments
sales that Emaar 2. Restructuring and revamping
Properties have man- real estate registry
aged to gain over the 3. Launching electronic system for
past number of years it made sense developers and projects’ registry
for them to try and tackle the mat- 4. Restructuring and revamping ac-
ter of registrations of documents at counts trustees’ registry
the Land Department in a way that 5. Adopting new mechanism for
was simple and convenient for the real estate developers’ registra-
customer, the government body tion
and the developer. That is why a 6. Issuing accredited and authentic
branch of the Land Department was financial data and reports on de-
successfully set up in 2007 within velopers and their projects
the Emaar Business Park on Sheikh 7. Fees-setting and collecting
Zayed Road, on the ground floor charges from real estate devel-
of Building One (the building near- opers
est the new villas near Emirates Golf Abdullah Mohd Mohd Saleh,
Club). Senior Officer – Customer Care, ex-
The private, transparent offices plained some of the activities that
are manned by trained Land De- take place at the branch office in the
partment staff from the Strategic & Emaar building.
Excellence Department – Customer “We are here for the customer; to
Care. Recently, the staff here were serve people,” he explained with a Sheikh Juma bin Thani Al Maktoum
joined by RERA’s Sheikh Juma bin smile. “We check that all their papers
Thani Al Maktoum, Head of Trust are in order, that nothing is missing. charges, security, charges for the lifts office and sign all papers together.
Account, who is now also heading We explain exactly what is needed and other facilities. All the details of sales transac-
this facility. The Department of Real to register their properties, and how “All the papers are then given to tions are entered onto the computer
Estate Development Guarantee Ac- to go about it. When everything is us. We check that all monies have that is linked directly to the Land De-
counts is one of RERA’s most criti- complete, we do all the necessary been paid and finalised. We check partment, and then a final Title Deed
cal departments, with the power to registering and issue an ownership that the documents state the correct is given to Emaar, who will give it to
enforce Law No (8/2007) covering document.” address of the property and project their customer.
guarantee accounts of real estate There are no big queues at this name, its size and how, much has “We are here to register transac-
developments. It is the responsibil- cool and quiet office, which is ap- been paid for it, the buyers name and tions and update our database.”
ity of the department to: preciated by most customers. There his nationality and passport number There is also a vice versa deal
• Issue an executive bylaw consis- have been other branch offices in and municipality number. We then with Emaar Properties having a rep-
tent with law the past, one at Tecom, which is now give the buyer a reference number resentative on the ground floor of
• Create and update developers’ defunct as the bulk of all registrations that he can quote in future corre- the Land Department building, near
registry have been completed. Another pre- spondence.” the creek, for those who want to re-
• Create and update trustees’ reg- vious branch was opened, and is now In the case of a mortgaged Emaar register their properties, mainly as
DUBAI REAL TIMES

istry closed, at Dubai Holdings building. property, both buyer and bank rep- second sale, or re-sale of their villa or
• Approve real estate projects Once a property has been built resentative should go to the branch apartment.
• Administer trust accounts and handed over to the buyer, he
• Control accounts financially and makes sure that it is acceptable and
technically signs for it and then goes to Emaar
Among the departments achieve- who issues a No Objection Certifi- “We are here for the customer; to serve
ments are: cate (NOC). This NOC ensures that
people,” Abdullah Mohd Mohd Saleh
1. Issuing the executive regulation both developer and customer are
which amends Law No (8/2007) fully knowledgeable about all rel- 3
that covers guarantee accounts evant matters such as management
RERA NEWS

Valuation rules
R
ERA has made an important He also said that qualifications,
accomplishment in unify- practice and experience are very
ing the real estate evalua- important in the process of licensing
tion reports, licensing and real estate valuers; and that by RERA
qualifying real estate valuers and cooperating with RICS and many
evaluation companies in Dubai. The other high level international asso-
Agency has been setting qualifica- ciations, this will help to increase the
tions for companies and individuals level of practice to the best interna-
to enable them to obtain a real es- tional levels. He added that there
tate valuer license. will be a code of ethics, records and
All real estate evaluation com- procedures that will be required to
be followed by all valuers. Existing
valuers have discussed their ideas, as
well as given their opinions, in regu-
lating this activity.
Mahmoud Hesham Al Burai Banks and financial institutes will
be one of the most interested sec-
panies were invited to a meeting be effective in the regulation sys- tors in this activity as they depend
where Marwan bin Ghalita, CEO tem. Mahmoud Al Burai explained on valuations to deal with real estate
of RERA and Mahmoud Hesham that all the evaluation reports in financing such as mortgages and
Al Burai, Director of the Real Estate Dubai Land Department are coming loans.
Sector Development Department, from evaluation of lands, buildings, Yousif Al Hashmi, Director of
discussed with them the challenges apartments, villas, commercial and Real Estate Licensing Department
that real estate evaluation in Dubai residential complexes, industrial fa- assured all that his department is
is facing and the current situation of cilities and hotels. He added that the preparing new conditions and re-
this market. most important criteria of evaluat- quirements for getting the licence.
Marwan bin Ghalita assured them ing any property is to study supply, He warned against people who
that the agency is providing the sec- demand, prices in the market, speci- represent themselves as real estate
tor with all the information neces- fications, age and the location of the valuers while only having a broker-
Yousif Al Hashmi sary to increase transparency and building . age licence.

Dubai plans to simplify


property contracts
DUBAI REAL TIMES

D
ubai plans to introduce a Emmad Eldin Farouq, Senior Legal Land department, said. many investors came swarming
simplified contract that Advisor at the department. Dubai’s Real Estate Regulatory to Dubai just to buy property and
would become the norm “In any contract, there is a Agency (RERA) and the Land paid less attention to contracts
for all property purchases in the chance a developer can add to it Department are working hard than they would in more mature
emirate. The standard contract, because different developments to make the property sector markets.
which has been drawn up by the have different rules and regulations more watertight but insist that “Any contract should be
Land Department and awaits but the basic contract will stay the there must be a large onus on very clear and we need to make
4 approval, will clearly set out terms same,” Mohammad Sultan Thani, the buyer to read contracts in sure people read the contracts
for both buyers and sellers, said Assistant Director-General of the full. During Dubai’s boom times, carefully,” stated Thani.
Index to put school rents on level playing
field launched by KHDA and Rera
A
rental index for schools and schools can vary significantly, which efit parents.
other education centres in in the case of private schools has a The unified index will The KHDA will contribute to the
Dubai is to be developed knock-on effect on the level of tu- rent regulation and contract reg-
following the signing of an agree- ition fees.
establish appropriate istration processes and in addition
ment by the Knowledge and Human The new scheme, which will levels of rent for identify rented units and determine
Development Authority (KHDA) and involve the development of long- different areas with their usage, the facilities attached
the Real Estate Regulatory Agency term rental contracts, is intended to to them and the clauses and condi-
(RERA). The unified index will es- smooth out such disparities and in- a view to achieving tions of rental contracts.
tablish appropriate levels of rent for consistencies. stability in the rental The agreement covers universi-
different areas with a view to achiev- The authority believes the unified ties and training institutions as well
ing stability in the rental market for index will assist private schools and
market for public, as schools. 72 per cent of the total
public, as well as private, educational investors and support them in con- as well as private, number of private schools in Dubai
buildings. fronting unjustified rent increases. educational buildings have rental agreements, which is
At present, rents for adjacent The scheme is also intended to ben- 103 out of 144 schools.

Sultan Butti Bin Mijrin, Director General of Land Department received Mr. Ali Bin
Abdullah Al-Abbas, Director General of Internal Trade, the Ministry of Commerce
His Highness Sheikh Mohammed Bin Khalifa Al Maktoum, Chairman of Dubai and Industry Saudi Arabia as the head of a delegation that included a number of
Land Department, received certificates on behalf of the government body for ISO Saudi businessmen, to become acquainted with laws and legislation governing
14001:2001 and OHSAS 18001:2007. the real estate sector in Dubai and in particular the escrow account and mecha-
ISO 14001 is a standard aiming to reduce the environmental footprint of a business nisms for organising and managing this account.
and to decrease the pollution and waste a business produces. OHSAS 18001 is
an ‘Occupational Health and Safety Management Systems Specification’ which
covers issues such as planning for hazard identification, risk assessment/control, of Partnerships, Dubai Municipal-
OHS management, awareness and competence, training, communication, ity, reviewed the accomplishments of
emergency preparedness and response, performance measuring and administrative excellence award win-
improvement. ners which foster and encourage the
Sultan Butti bin Mijrin, Director General of Land Department described the importance of excellence among all
certificates as a positive step towards action to upgrade and improve the staff, and then was astounded to win
environmental performance and health and occupational safety of employees an award himself. He explained that
as well as reflecting positively on the security and safety of workers. achieving excellence is not difficult
Mohammed Hamad Al Mehri, Chairman of the Group Environment, Health and as long as there is a genuine desire
Safety Service noted that “The Land Department is committed to all international and determination from within the
and domestic legislation in this area and related activities and operations.” staff member. He revealed secrets of
success and excellence in his career
through plans and objectives, person-
Dubai Land Department hosted a gov- al commitment, responsibility and the
ernment departments award ceremony
DUBAI REAL TIMES

pursuit of excellence, which earned


in partnership with Dubai Municipality him an honour in the Dubai Govern-
recently. Ahmed Al Shehhi, Director ment Excellence for 2008 programme.

Juma bin Humaidan, Deputy


Director General, Land
Land Department received a delegation from Dubai Police in the context Department, congratulated
of strengthening partnership and cooperation between various depart- Masoud Rashidi and commended
ments and state institutions to develop government services. The visit her on winning a bronze medal
was to identify, review and share experiences particularly with regard to for fourth position at the new
service and customer care. The meeting was attended by Khamis Al Mu-
hairi, Director of the Department of Customer Service; and Mohamed
athletics race held at Bundesliga, 5
Germany in early July.
Oe, Deputy Director of Strategic Management and Excellence
TAQYEEM

Real estate valuation


By Mouaiad Al-Omari, Edited by Mohamad Khodr Al Dah

R
eal estate valuation (REV) is valuable minerals etc., to the infinite The real estate value depends on tration, and land use. It is the process
considered the cornerstone sky, with some limitations in relation various factors such as area, location, that provides the indicator to land
of the real estate sector, and to the height of structures. type, use of property, title of owner- and improvements value. Hence, the
one of the important fac- ship, size, condition, and legal status failure or mistake in real estate valua-
tors that affect the lives of individu- The Concept of the Value in terms of transfer of ownership, tion in terms of the ability to reflect
als, as well as the economy. Lending, The capitalist economy is based on market conditions, supply, demand the reliable value of the property in
borrowing, buying, selling, investing the price mechanism. This means and many other data for an accurate a way that is appropriate for accurate
and real estate acquisition decisions that there is a price for everything appraisal of the property. This value decision-making can result in serious
depend directly on the value of the and there is no economic activ- is the opinion of an independent, risks. Therefore, real estate valuations
property. ity without a price. This means that experienced, educated, professional, in the absence of supervision by
money evaluation cannot be known honest, trustworthy expert who fol- competent authorities, and depend-
without having a price to know lows scientific principles and varied ing on non-specialists who imple-
The Concept of Real Estate this value, and the value cannot be professional methods to approach ment wrong valuation methods can
Real estate means the land and ev- known without evaluating things. the property value-whether the land result in wrong values. This will cause
erything that is attached to it, such Thus, the price is the standard that is vacant or built-up. turbulence in the property market
as buildings. Legally, real estate defines the value of things. (e.g. banks, investors, and customers)
means the land and anything affixed From the capitalist point of view, Real Estate Valuation and will adversely affect the national
to it and cannot be moved without the price mechanism is the fair way Real estate valuation forms the basis economy and will ultimately affect
damage or change to its structure. for distributing goods and services. for almost all activities relating to the the global economy. The worldwide
So, land covers not only the surface For example, there are only a finite land surface, and is one of the main- economic crisis that happened in the
soil, but also every natural connec- number of houses in the world, so stays of the real estate market, in ad- second half of 2007, starting with the
dition to land surveying, land regis- United States, is a clear example.

Fig. 1 BIOGRAPHICAL NOTES


Sky versity, Jordan; obtained a master
degree in 2005 in Land Manage-
ment and Land Tenure, from
Technical University of Munchen,
Boundaries Land Surface Germany.
Until 2005 he was a Property
Centre of Earth Valuer in the Department of Lands
and Survey in Jordan, then a Head
of Real Estate Appraisal Director-
ate in the same department until
tion to it (except water which is gov- who has the price of the house 2007. Since 2007 until now he is
erned by special laws) like trees; and can afford to own the house. The preparing for a PhD in Real Estate
DUBAI REAL TIMES

any improvements such as all kinds same meaning can be applied to Valuation at Oxford Brookes Uni-
of construction below or above the cars, milk, bread, and so on. Based Mouaiad Al-Omari versity in the UK under the super-
surface. Land ownership, according on this, there is a need to convert Born in 1963; obtained his diplo- vision of Dr. Peter Dent and Mr.
to the theory of the inverted pyra- everything to money to facilitate ma degree in 1982 as Eng.-As- Richard Grover. Since 2009 until
mid or the carrot (Fig. 1), contains owning it. Hence, the basis of real sistant in Surveying; obtained a now he is the Project Manager
not only the surface, but extending estate valuation is to convert the bachelor degree in 1996 in Busi- of Real Estate Appraisal Centre in
from the centre of the earth to spec- property to a financial number (the ness Administration and Com- Dubai Land Department / Real Es-
ified limits and signs on the surface, value), to form the capital which is puter Science from Yarmouk Uni- tate Regulatory Agency (RERA).
6 with the exception of the natural the main engine in the process of
deposits such as oil, gold, and other economic development.
PERSONALITY

Traditional meets modern man


By Amal Abdul Rahim Al Sahlawi

I
f true leadership is a faith, dedi- who has a strong work ethic with
cation and lifestyle, then a man a concentration on honesty and
doesn’t need a very high posi- trustworthiness for colleagues and
tion to become a distinguished friends.
leader in his professional team. This The desert takes up much of Mo-
theory may be applied very well to hammed Rashid’s time; he is a good
Mohammed Rashid bin Serdah, Di- shooter, he hunts with falcons, likes
rector of the CEO’s office at RERA. camel races, farming and taking
He can be considered as a unique care of camels. As well, Moham-
personality in whom traditions meet med Rashid loves sailing. He loves
modernity. The story of Mohammed to read about history and be reli-
Rashid takes many different turns giously educated, spend time with
beginning with his bedouin lifestyle his wife and children who are very
and the change he added to his life understanding of his work schedule
by working at the Land Department and provide him with stability at
and then RERA, as well as his unique home. He gives credit of his great
outlook on life and its ethics. personality to his mother and father
Mohammed Rashid graduated who raised him in the many beauti-
from Dubai College of Higher Tech- ful Arabic traditions with the Islamic
nology with a diploma in Business religion and good ethics too. He
Mohammed Rashid bin Serdah
Administration, however he did not considers raising children by be-
put this degree to use until 2004. ing a good example to be the best
Prior to this, Mohammed Rashid with Eng. Bin Ghalita has made his requires a very trustworthy and re- means of parenthood. He is always
remained free from work, spend- personality richer with knowledge, liable individual because you deal a friend to his son and daughter.
ing most of his time in the desert expertise and refining his people with many sensitive and important Mohammed Rashid doesn’t be-
practicing his favourite hobbies of skills. issues. lieve in having one idol. He thinks
falconry and shooting. He joined He began working as Director of His belief in RERA’s role in regu- that a man should take the best in
the Land Department in 2004 as a the CEO’s office in 2008, being ex- lating the real estate market, pro- everybody and he should become
secretary for the deputy Director tremely busy setting the foundation tecting investors’ rights, and his be- an idol himself, to force his good
General, then as the secretary for for RERA, a new establishment that lief in the team’s ability makes him personality on people and to see
the Director of Technical Affairs. He required much attention and care. proud to be a part of this agency God in everything that he does. He
ended up working in the compen- Then he received the Unknown Sol- that works along with other gov- who does this does not need to look
sation department. In this team he dier Award from the Dubai Govern- ernment bodies to improve Dubai for an idol in another man. The last
proved his loyalty, dedication and he ment Excellence programme which and its image. He admits that the word, for his colleagues in RERA, are
gained the trust, as well as apprecia- was predictable considering his government work has changed his to cooperate and to complement
DUBAI REAL TIMES

tion, of his bosses resulting in many valuable contributions to the Land vision of Dubai and made him un- each other because every member
offers for him to progress upwards. Department. derstand what a lot of hard work in this family completes the other
However, Mohammed Rashid’s pas- His work as the director of the lies beneath Dubai’s accomplish- – and we are all here to serve the
sion for working with Eng. Marwan CEO’s office involves following up ments. community that we are a part of. If
bin Ghalita, RERA CEO, based on the with the CEO’s directions and their Asking him about his strengths we can no longer do this, we should
respect and equality with which Eng. execution, communicating with and weaknesses, Mohammed leave our place in this house for one
Bin Ghalita treats all of his employ- other departments, and coordinat- Rashid said he is quick to act and who deserves it. Of course there
ees, kept him as his office manager ing between these departments make decisions; and, by asking the will be more another day about this
despite the fact that this kept him and the CEO’s office. Mohammed people who work with him, we dis- amazing man that has a lot of wis- 7
on a lower pay scale. His experience adds that working in this position covered a very high class individual dom, is humble and dedicated.
STATISTICS

Transactions during June 2009


The total value of real estate transactions in Dubai during June 2009 was Dh13 billion
Land Flat Villa
Total number of Transaction 895 2545 203
Total value AED 8,905m 2,448m 361m
Total Area(sq.ft) 12,842,000 70,955,000 641,000

N
1000
ad Al Sheba had the highest number of land transactions with 221
sales completed. The total number of mortgage transactions was 844 Total Number of Flat Sales
265 with a total value of Dh2,525million for 4,782,000 square feet.
Of these Arabian Ranches had the highest number of mortgages
800 Transaction
with 32 such transactions taking place for accommodation there.
The total number of sales of apartments was 2,309 with a total value of 600 540
Dh2,113million for 2,412,000 square feet. Jebel Ali had the highest number of
these sales with 844 transactions taking place.
Villa sales included a total of 146 mortgage transactions with a total value 400

283

250 196
200 168 162
221
84

200 28
2 2

Total Number of Land Sales 0


Jebal Ali Warsan Dubai Emirates Emirates Sheikh Palm Al Suooh Trade Motor

150
Transaction Top 10 First Marina Hills
Second
Hills
First
Sayed
Road
jumeirah Third certre
second
city

100 80 of Dh274million for


86 72

70 Total Number of Villa 458,000 square feet.


Emirates Hills had the
53
43 60 Sales Transactions
50 38 36 highest number of sales
19 17 17 13
50
with 72 transactions
40

0
40 taking place valued
Nad Al Jebal Arabian Emirates Emirates palm Bu Emirates Mirdif Al Kiran First
30 26
at Dh98million for
Sheba Ali Ranches Hills Hills Jumeirah Kandra Hills
Third First Secound
20
209,000 square feet.
During the second
10
35
5
2 1
week in June the
32
0
Emirates Hills Arabian Emirates Hills Dubai marina Motor City Sheikh Sayed Road biggest area sold was
30 29 Total Number of Land Mortgage Third Ranches Second
the 65,849 square feet
Transactions Top 10 98

Total Value of Villa


100
DUBAI REAL TIMES

25
22 in the Sheikh Zayed
20 Road area, which went 80 74 74
Sales Transactions
17
for Dh88.9million. A (Million, AED)
15
52,366 square feet 60

11 11
10 10 10
9
plot in the Mirdif
10
Area was acquired 40

5 for Dh13million,
18
while 38,068 square 20

0
Arabian Emirates Aud Al Aud Al Al Barsha Al Warqa Al Al Qouz Emirates Al Barsha
feet at Al Khabeesi 6 5
9
Ranches Hills
Third
Muteena Muteena
First second
South
First
Third Khawaneej Second
First
Hills
Second
South
Second
was disposed of for 0
Emirates Hills ThirdArabian Ranches
Emirates Hills SecondDubai marina Motor City Sheikh Sayed Road

Dh17.13million.
DISCUSSION

Let’s believe in the Dubai brand


Investors await confidence boost prior to revival

F
urther real estate legisla-
tion, greater transparency
and more accurate and
timely market information
are required to rebuild confidence
in Dubai’s real estate market and
stimulate investment. These were
the conclusions from the expert
panel at the third Cityscape Con-
nect Business Breakfast, which at-
tracted nearly 200 senior real estate
industry players in early July.
Cityscape Connect is the not-
for-profit initiative from global real
estate event and business infor-
mation company Cityscape. It is
designed to stimulate networking
and information sharing and acts
as a year-round platform to discuss
business-critical issues in the real (left to right) Heather Wipperman, CEO of Investment Boutique; Markus Giebel, CEO of Deyaar; Ian Ohan, Head of
estate industry. Investment Transactions at Jones Lang LaSalle; Duane Keighran, Deputy Head of Real Estate, MENA region, at Simmons
“Sentiment drives markets, and & Simmons and Marwan Shehadeh, Managing Director of Al Futtaim Capital
sentiment is important to the re-
covery of Dubai’s real estate mar- gies. reliable and timely statistics to be
ket,” explained Ian Ohan, Head of The issue is risk aversion. Inves- made available. She suggested that
Investment Transactions at Jones tors are worried about risk. We need Banks are unwilling Dubai’s developers, brokers and
Lang LaSalle and moderator of the the banks to invest once again and mortgage banks pool their data
panel discussion. the funds to employ money. But to lend money to to create one independent central
The global economic downturn there is no clarity of the future, so
real estate investors source of real estate statistics to
has dented investor confidence. liquidity will remain on the sidelines increase transparency, and there-
Banks are unwilling to lend money until confidence returns,’ explained and developers, fore confidence and credibility, in
to real estate investors and devel- Marwan Shehadeh, Managing Di- Dubai’s real estate market.
opers, concerned at the likelihood rector of Al Futtaim Capital. “‘Real
concerned at the Improving real estate legalisa-
of defaults, while investors worry estate is about supply and demand. likelihood of defaults, tion will also increase transparency
DUBAI REAL TIMES

about falling values and the abil- People are only willing to invest and increase confidence, added
ity to let commercial or residential where they see a clear shortage in
while investors worry Duane Keighran, Deputy Head of
buildings. supply. In Morocco and Egypt, for about falling values Real Estate, MENA region, at Sim-
As a result, banks and investors instance, there is a shortage of mid- mons & Simmons. “Dubai needs to
have become very cautious with dle income housing. But in Dubai
and the ability to import best practice from maturer
many preferring not to invest, de- there is a lack of clarity regarding let commercial or countries. For instance, it is difficult
spite having available funds. Those supply and demand in the real es- to get a judgement on a real estate
that do invest focus on secure in- tate market.’ residential buildings court case. Nor can you do a real
10 come producing assets rather than Heather Wipperman, CEO of In- time search to find out who owns
seeking high risk-high return strate- vestment Boutique called for more land. Such changes will add trans-
parency and attract institutional stitution of Chartered Surveyors said Dubai still “had some way to are more robust. The southern area
investors.’ (RICS), supported Giebel’s view. go,” but she predicted a change in of Dubai is more resilient and we’re
However, Markus Giebel, CEO He told the audience that the RICS fortunes at the end of 2010. “‘Insti- getting closer to a price equilib-
of Deyaar, defended Dubai. “You was supporting Real Estate Regu- tutional investors are looking at the rium, particularly in Dubai Marina
must remember that Dubai is still latory Agency (RERA) to establish existing supply of real estate, the and Discovery Gardens.”
an emerging market, and emerg- ground-breaking changes behind anticipated supply to come on line, But to reach a recovery, Markus
ing markets don’t have legal frame- the scenes. “RERA are doing a fan- population statistics and the health Giebel, CEO of Deyaar, stressed that
works so Dubai is having to catch tastic job; we’d only hope that they of the business community. But, in Dubai must continue to invest and
up. Can we change Dubai from an continue to remain bold and im- Dubai we still have a way to go on improve as a city. “It is important
emerging to a mature market in 12 partial - where possible - avoiding all of these factors.” to continue to spend on infrastruc-
or 24 months? Probably not, but we significant influence from master Wipperman said any recovery ture, safety etc. It is these things that
are making the right tracks.” developers.” in Dubai would at first be patchy; make Dubai a great city. Let’s trust
Martin Seward-Case, Chairman In terms of a recovery in the focused particularly on neighbour- in Dubai, believe in Dubai and con-
of the UAE branch of the Royal In- real estate market, Wipperman hoods. “Certain pockets of Dubai tinue to build Dubai.”

Funds aplenty for distressed buying


I
ndividual investors and insti-
tutional funds have available
liquidity, but are holding off on
investing in assets in Dubai due to
the lack of clarity as to the true situ-
ation on the ground, according to a
panel of industry experts. Despite
this short term gap, the emirate has
the fundamentals to attract inter-
national interest in the medium to
long term.
While no significant distressed
funds are yet active, the few in the
pipeline are likely to increase confi-
dence in the market and rescue de-
faulted assets.
“Although there have been ‘dis-
tressed’ sales by individuals, a num-
ber of investors have been helped
by a number of easy payment plans
and similar initiatives by developers,”
said Markus Giebel, CEO of Deyaar.
“Real distress will come when devel- the money. Everybody realises that from rentals while developers wait help anybody.’
opers stop these plans, and the mis- there may be further downsides for prices on the market to begin to Giebel also told attendees that
fortune for those who cannot pay is and is waiting for the bottom. The rise again, before releasing them for Deyaar expected to begin raising the
an opportunity for these funds - and issue with Dubai is that there is still a sale. outstanding Dh300million of capital
the funds will come, that’s for sure.” lack of clarity in terms of the amount “Now is a great opportunity for for its Dh500million distressed debt
Fellow panellist Marwan Sheha- of supply and demand, and that is developers to take back well valued fund within the next few weeks. The
deh, Managing Director of Al Fut- what real estate is about. People are assets and hold on to them while developer and Dubai Islamic bank
DUBAI REAL TIMES

taim Capital agreed, pointing out only willing to invest where they see the market settles, say two or three have already put Dh200million into
that the majority of the group’s a clear shortage of supply.” years until we see appreciation, and the fund.
property fund has yet to be spent. With developers in the emirate then sell them on,” said Giebel. “If Deyaar is also looking at invest-
“The issue is risk aversion; it’s no looking to diversify their business we recover units from investors ing into international markets as part
longer liquidity. We have plenty of models to adapt to the new realities who have to opt out as they can of its longer term strategy. As well
money, but where do you put it? in the market, some are looking at no longer make the payments, and as being close to agreeing a deal
Two thirds of our fund is not yet de- the options of using their funds to then sell them straight on at less in Lebanon and Saudi Arabia, the
ployed. There is a lot of uncertainty buy back units in their own devel- than the bottom end of the mar- company would be examining op-
in the market, and there is no pres- opments. These units can then be ket, we will only serve to destabilise portunities in ‘high risk, high reward’ 11
sure from our investors to spend used to provide recurring income prices even further, which does not countries such as Iraq.
PROFILE

The property
surveyor typically is
known as a Valuation
Surveyor or possible
a building surveyor

Martin Seward-Case

Chartered Surveyors
process? ultimately involve a chartered sur-

T
he Royal Institution of What does a surveyor do? This depends on the sort of sur- veyor if they have any nervousness
Chartered Surveyors (RICS) This depends on the discipline. A veyor one is looking for. Usually regarding the processes they are
wholeheartedly supports Valuations Surveyor will provide an enquiries are answered with a fee being required to sign up to. As he
RERA in their quest to pro- educated and professional opinion set against a series of separate and is duty bound to primarily protect
tect the rights and interests of con- on the value of a piece of real es- distinct functions outlining exactly the interests of the public, he will
sumers. The RICS also shares RERA’s tate. Banks use these valuations to what is being asked for and what be best placed to advise whether
vision that Dubai property investors base their lending decisions. Con- sort of report or recommendation further specialist services may be re-
are assured the highest possible struction Cost Surveyors are known will be provided for the fee itself. quired (structural survey, etc).
service standards from real estate as Quantity Surveyors and they look
agents, brokers and property devel- after the cost and contract admin- What should you expect When buying a property,
opers transacting business in Dubai istration involved in building the your surveyor to do for why should you enlist the
whilst maintaining the integrity of project. you? services of an independent
all the developments.
chartered surveyor?
In late 2008, the RICS was pleased What is the job of a home/ Provide clear unbiased advice.
to sign Memorandum of Under- property surveyor? The chartered surveyor is duty
standing with RERA to share best What types of surveyors bound to provide clear impartial ad-
practice in real estate matters. There is no designation as a home are there? (ie, those of rel- vice whether it be for the valuation
We catch up with Martin Seward- surveyor. The property surveyor evance to potential home- of the house or apartment or the
Case, Chairman of the RICS UAE typically is known as a Valuation condition that it is being sold in. The
buyers.)
Board to ask him a few questions as Surveyor or possibly a building sur- answer may not necessarily be what
to what Chartered Surveyors do in veyor . We have 17 different disciplines that one was hoping to hear but it will be
the UAE, and advise on how to avoid form the 140,000 Chartered Survey- fair and reasonable and reflect the
another disastrous property bubble When should one enlist the ors worldwide. These disciplines full circumstances of the purchase.
in the future. help of a surveyor? advance the standards of processes
in land, property and construction. Don’t banks/mortgage
What is a surveyor? Before buying a property (yes, to The potential homeowner needs to providers use surveyors,
ascertain its value as well as its state know that valuations, State of the anyway? Isn’t that enough?
DUBAI REAL TIMES

It’s a term that has changed dra- of repair), during the buying pro- Property and rebuild cost estimates
matically over the last few years. Tra- cess (yes, to help you in the trans- (for insurance purposes) should all Typically yes it should be enough,
ditionally the surveyor was seen to action process), after the property have the involvement of a specialist however, the purchaser should
stare through a level at another site is bought (possibly only to assist in chartered surveyor. check that this is the case. It is not
technician holding a staff. While this calculating the cost to rebuild for mandatory in the UAE for chartered
activity still continues on construc- insurance purposes) When would you need to surveyors to be used as part of the
tion sites, the chartered surveyor will enlist their services? transaction process, however the
study a property, any construction What will the surveyor do purchaser (or seller) can have signifi-
12 related problem, and provide advice at each stage of the buying The potential homebuyer should cantly more peace of mind if a one
too.
It’s wise to involve a chartered sur- prohibitively expensive cost asso-
veyor to ensure your rights and ciated with the establishment of
obligations under your ownership a Consultancy Practice or General
are fully understood. Equally in the Contracting concern. By lower en-
event that alterations to the apart- try costs smaller business can enter
ment or semi- detached dwelling the market and keep competition
are in any way associated with a healthy in the event that the sector
commonly owned wall, it is essential in particular starts to heat up.
that a chartered surveyor is involved We had several instances of
to put steps in place to protect both small to medium size contracting
party wall owners. concerns from the UK and South
Africa make enquiries during 2007
What is a home condition and 2008 but were put off by the
report? Is it required in the cost and bureaucracy related to es-
UAE? tablishing the concern.
It is pleasing to note that at both
It does what is says on the box. Cur- local and federal level, the authori-
rently it’s not mandatory but we’d ties are starting to look at this now.
recommend that it is put in place.
As the secondary market matures Supply chain responsibility in
and homes start aging, this report pricing
protects both parties in that an in-
dependent surveyor has created it. During the recently witnessed up-
turn, opportunism by the supply
What can Dubai do to chain is one of the most regrettable
avoid another property but significant contributions to-
bubble in the future? wards inflationary pricing we have
seen. Clearly resource restriction
More relevant regulation will contribute towards inflation-
ary pricing however the attitude
Many exponents of free market prin- of “…it’s not the cost of the service
ciples will not openly support the but the price we know we can get
has been involved in the correct is a regulator of both its individual notion of public institutions plac- away with…” obviously prevailed in
part of the transaction. members and firms enabling it to ing regulations onto an open grow- the UAE market during the 2006 –
maintain the highest standards and ing market. However if we consider 2008 upswing. While consultancy
What questions should you providing the basis for unparalleled how the low levels of regulation in man-hour charge out rate increased
ask a surveyor? client confidence in the sector. the banking and financial services dramatically it was the “Cost plus:
sectors have directly contributed take-it-or-leave-it” approach by
In buying home typically : What is the advantage of towards the financial meltdown of many contractors that was most re-
• Is the property I’m purchasing using a RICS surveyor? Q4 last year, we now see those very grettable.
true “unencumbered freehold”? services themselves admitting that Whilst the developers clearly
• Does the seller actually own the Primarily, peace of mind. However, greater regulation will indeed have signed up to contracts with values
property? chartered surveyors also carry pro- taken the edge off the collapse we provided by an opportunistic sup-
• Is the price we’re agreeing on fessional indemnity insurances to have now witnessed. ply chain, many of these organisa-
the right price? cover the unlikely instance of the In Dubai, the recent bubble raced tions have now banked these ‘super
• Are the charges I’m being advice provided not being correct. ahead of us as the speculation cycle profits’ and are crying foul.
asked to pay the correct level of took hold. With RERA’s now strong In future the entire supply chain
charge? What’s the difference position on speculation we’re seeing should be more responsible in not
between a valuation and a far more sensible level of regulatory creating or contributing towards
What is RICS? building survey? mechanisms in place to ensure we the perception of profiteering. The
don’t fall into the same trap. supply chain should use a ‘bottom-
RICS is the world’s leading qualifica- The building survey looks at the With RERA now in place it’s un- up pricing approach’ where the cost
tion when it comes to professional condition of the building and rec- likely that we will see another bub- of the service is supplemented by a
DUBAI REAL TIMES

standards in land, property and ommends what needs to be done ble growing at the speed that we reasonable level of economic profit.
construction. RICS is an indepen- to make it habitable. The Valuation witnessed – and this is a good thing. Martin Seward-Case is a Chartered
dent professional body originally looks at the market value of the as- It is all about sustainability. Growth is Quantity Surveyor and Partner with
established in the UK by Royal Char- set. important, but growth in a sustain- Reaction Project Management, a
ter. Since 1868, RICS has been com- able manner. consultant providing Project and Cost
mitted to setting and upholding the If you want to make an Management advice to developers,
highest standards of excellence and alteration to your prop- Lower barriers to entry to al- contractors and other consultants.
integrity – providing impartial, au- erty, why is it important to low in greater competition Martin was elected by the RICS UAE
thoritative advice on key issues af-
enlist a RICS surveyor? Membership to Chair the RICS UAE 13
fecting businesses and society. RICS These barriers to entry include the Board for 2008 / 2009.
MARKET TRENDS & ANALYSIS // PROPERTY
FINANCIAL ROUNDUP
PRICES

Financing options
I
t is clear to everyone that people Dubai Islamic Bank (DIB) has Residences and Veneto. opments, including Discovery Gar-
should talk to each other to dis- announced that it is offering up to Nakheel has also announced a dens, service charges are budgeted
cuss mutually beneficial ways of 90 per cent financing for properties new, lower service charge budget according to projected costs and all
organising their money. Devel- across the UAE. Property buyers can for its Discovery Gardens commu- accounts are independently audited
opers, bankers and buyers need to avail of Al Islami Home Finance for nity, following a detailed review of to ensure accuracy and transparen-
discuss options to what can often up to 25 years for ready and under- scope and suppliers. The new rate cy for homeowners. Nakheel works
seem like an impasse, when outside construction properties from ap- has been formally agreed with the with RERA, residents and suppliers
financial problems affect all and proved developers. This financing is Dubai property market regulator, to ensure that the charges are in line
sundry irrespective of their colour, available to both UAE nationals and RERA, and will mean a reduction of with market averages.
class and creed. Buyers welcome expatriate residents. DIB is also offer- approximately Dh5 per square foot Following the introduction of
an understanding attitude when ing refinancing solutions for proper- in service changes for homeowners. Strata Law in April 2008, Nakheel
discussing how to maintain pay- ties that are already completed. The new lower service charge rates made the necessary preparations
ments on their purchase even when Dr. Adnan Chilwan, Chief of Retail will be backdated to 1st January, to register the Owners’ Association
they cannot manage to pay what and Business Banking, DIB, said: “The 2009, with any rebates for house- with RERA once the regulations are
was originally agreed upon – such a security of owning a home in the holders being credited against next finalised by the Dubai Land Depart-
long time ago, at least eight months year’s service charges effective from
or so in the past. Developers would 1st October, 2009.
like to get some money into their Abdulrahman Kalantar, Manag- Dubai-based Deyaar
coffers, any reasonable amount will ing Director of Nakheel Asset Man- Development has
do to stave off the spectre of bank- agement and Design (NAMAD),
ruptcy. said: “When we first set the service announced continued
Dubai-based Deyaar Develop- charges for Discovery Gardens, they partnerships with
ment has announced continued were based on our best estimates
leading banks to
partnerships with leading banks to for this new Nakheel community.
offer financing options exclusively Following a lengthy review, we offer financing
to its customers, including up to 90 have been able to take advantage options exclusively
per cent financing and repayment of recent reductions in the cost of
periods of up to 25 years. Deyaar goods and services, which has in
to its customers,
customers, subject to meeting the turn reduced our overall service including up to 90 per
Dr. Adnan Chilwan
bank's credit approval requirements, charge budgets. We’re now delight- cent financing and
will be able to obtain special financ- UAE provides great comfort to our ed to pass on these cost savings
ing schemes and favourable repay- customers. With a high finance to to every homeowner at Discovery
repayment periods of
ment terms and quicker approvals, value ratio and a range of products Gardens.” up to 25 years
the bank said. to suit every need, we encourage Presently, across Nakheel’s devel-
Markus Giebel, Chief Executive homebuyers in the country to take
Officer of Deyaar Development has advantage of this opportunity.”
said the company, along with Dubai Nakheel has said that it is offer-
Islamic Bank, has secured Dh200- ing its customers discounts of be-
million from regional investors for tween 10 per cent and 30 per cent
DUBAI REAL TIMES

a new distressed asset fund that to help investors meet their com-
will buy property from buyers who mitments and obligations towards
default on their payments and hold the company. To qualify, buyers will
onto the units for several years, re- have to settle outstanding balances
selling them for a profit in the future. and continue to pay their instal-
He said the creation of the fund was ments on time, and the scheme is
the final step in a strategy to lower available to customers who have
the company's default rate from bought in Jumeirah Island Man-
14 about 50 per cent to the low single sions, Jumeirah Heights Clusters,
digit range. Badrah phases one and two, Marina
ment (DLD). As master developer,
Nakheel will ensure that the owner
associations are established in a
timely manner, together with the
creation of an owner’s committee
which will empower residents to
actively participate in the manage-
ment of their building.
Emaar Properties has partnered
with Standard Chartered Bank to ex-
tend two easy home finance pack-
ages for all its projects in Dubai that
will be delivered in the next nine
months.
Standard Chartered Bank will of-
fer two mortgage products – the As-
set Back Lending (ABL) Product and
Standard Mortgage Product (SMP).
The Asset Back Lending (ABL)
Product offers an easy loan of up
to 40 per cent of the property price Old Town Island at Burj Dubai
with a mortgage of Dh100,000 to
Dh2.5 million being provided for renew the rental lease if they do not
a tenure of three to 25 years. The decide to purchase the home after
Standard Mortgage Product offers one year.
a standard loan of up to 75 per cent The Rent-to-Own scheme,
of the property price. Potential end- launched by Emaar in November The home finance options will cover an
users and customers can obtain fi- 2008, has gained strong response extended portfolio of Emaar projects including
nancial support from Dh150,000 to from customers, who benefit from
Dh10 million for a tenure of three to the convenience of staying in a apartments and villas in Dubai in prime
25 years. home of their choice for one year
locations such as Downtown Burj Dubai, Dubai
The home finance options will before making a purchase decision.
cover an extended portfolio of With the entire rent of the year going Marina, Arabian Ranches and Emirates Living.
Emaar projects including apartments towards down payment, the scheme
and villas in Dubai in prime loca- also presented a financially benefi-
tions such as Downtown Burj Dubai, cial option.
Dubai Marina, Arabian Ranches and The residences showcased as
Emirates Living. The ABL easy loan is part of the programme are located Company (DIRC), the real estate the customer’s financial burden and
particularly tailored for current inves- in the residential clusters of The Old arm of Dubai Investments, is giv- facilitate procedures in light of the
tors and end-users seeking financial Town, Old Town Island, South Ridge ing a 100 per cent refund to its in- current situation."
support to complete the remaining and The Residences, all established vestors on the Mirdiff Hills project, As per the clauses of the deci-
payments before handover, while communities with an array of life- which it has put on hold due to un- sion, the insurance on transactions
the standard mortgage will appeal style amenities. South Ridge and availability of mortgage financing. regarding the approval of plans,
to all potential home-buyers. The Residences are impressive high- Khaled Kalban, Managing Director imposed on the owners when they
Mr Ahmad Al Matrooshi, Manag- rise towers while The Old Town and and CEO of Dubai Investments has submit applications for building
ing Director – UAE, Emaar Proper- Old Town Island feature elegant Ara- said DIRC would continue with the permits, has been cancelled. It was
ties, said: “The partnership between besque architectural features. The project should the lending scenario a fee submitted, along with build-
Emaar Properties and Standard newly released units include one- to improve in Dubai. ing plans, which was acknowledged
Chartered Bank is a huge confidence five-bedroom apartments with ei- Eng. Hussein Nasser Lootah, Di- by the competent department to
booster for Dubai’s property sector ther large terraces or balconies. All rector General of Dubai Municipal- issue a building permit. The owner
as it marks the strengthening of li- the homes have upgraded finishes. ity has issued a decision cancelling receives the difference between
DUBAI REAL TIMES

quidity levels.” All homes offered as part of the the insurance amount, which was the acknowledged fee and the es-
Emaar Properties has also un- Rent to Own scheme are near Burj required at the time of approving timated fee which must be met in
veiled a new portfolio of homes in Dubai, the world’s tallest building, building plans. the light of accounts of the build-
its Rent to Own scheme within the and residents only need to take Lootah said that the Munici- ing, during the final approval of the
Downtown Burj Dubai community. a short stroll to watch The Dubai pality has, through this decision, plans.
Customers can lease the ready-to- Fountain, the world’s tallest per- tried to reduce the efforts exerted Previously the owner had to pay
live-in residences for one year before forming fountain and a spectacle for the process of payment and an insurance amount related to plan
making a purchase option, with the that performs to popular Arabic and receipt of insurance so as to save approval, which was equal to the set
entire rent for the first year going to- World music. the time and effort of customers. of fees that must be met for the issu- 15
wards the down payment. They can Dubai Investments Real Estate "At the same time it will also save ance of a building permit.
MARKET
MARKET TRENDS
TRENDS &
& ANALYSIS
ANALYSIS //

The role of transparency in


restoring confidence in real
estate market
By Craig Plumb, Director of Research, Jones Lang LaSalle (UAE)

Jones Lang LaSalle’s second Invest- form and creating a transparent importance of improving sentiment
ment Sentiment Survey (ISS) under- market will provide the surety that and restoring confidence in the real
taken in March 2009. They asked investors require to re-enter the estate sector and a key component
their sample of the regions leading market with the enthusiasm they, of this strategy has been to improve

D
ubai has been one of the real estate investors what factors once had. the openness and transparency
fastest growing real es- they considered most important While Dubai saw a major im- of the market. It is in this area that
tate markets in the world in their decision to invest in a par- provement in real estate market RERA is playing a key role. There has
over the last 15 years, ticular market – the results, which transparency between 2006 and been widespread industry support
with Jones Lang LaSalle identifying are shown in the chart on this page, 2008 (scoring the world most im- for the raft of measures to improve
Dubai (along with Dublin and Las highlight the importance of trans- proved market in its 2008 survey), transparency being implemented
The Role of Transparency in Restoring Confidence in the Dubai Real Estate Market
Vegas) as cities of growing influence parency, with improved regulation there is no doubt that the market by RERA including:
on the world stage back in 2001. AsDubai has been one of the fastest growing real remains estate markets far lessin thetransparent
world over the than
last 15
we all know, the market continuedyears, with Jones Lang LaSalle identifying Dubai more (alongmaturewith Dublin
markets and Las as
such Vegas)
Aus-as • Availability of better quality
citiesThe Role of Transparency
of growing influence on in theRestoring
world stage Confidence
back in in the Dubai
2001. As weReal Estate Market
all know, the market
to grow rapidly before reaching a tralia, Canada, the UK and the US. market data through the REIDIN
continued to grow rapidly before reaching a ‘tipping point’ in the third quarter of 2008 as
Dubai
‘tipping point’ in the third quartera result has been one of the fastest growing real estate
At
of the liquidity crunch which triggered a major global economic slowdown.markets
a recentin the world
Cityscape over the last
Connect 15 sales database and the Projects
years, with Jones Lang LaSalle identifying Dubai (along with Dublin and Las Vegas) as
of 2008 as a result of the liquid- breakfast,
cities of growing influence on the world stage back in 2001. As we all know, the market
participants from differ- Progress Indicator
ity crunch, which triggered a majorThe continued
availability of capital
to grow rapidlywas one reaching
before of the key ingredients
a ‘tipping point’fuelling
ent sectors inofthethe the
thirdrealspectacular
estate
quarter market
of 2008 growth
as • Publication of regularly updated
of the Dubaiofmarket
a result and its
the liquidity abrupt
crunch withdrawal
which triggered triggered
a major global a major correction, with rentals
global economic slowdown. and values having fallen in the order of 50% over shared what economic
the ensuing they slowdown.
believed
9 months, couldtobe
returning rental indices
The availability of capital was2007The levels in some sectors. The rapid turnaround done in to
market restore
availability of capital was one of the key ingredients fuelling the spectacular growth confidence
conditions in Dubai to the
has • Improvements to the legal
one of the key ingredients fuel-demonstrated
of the Dubai themarket
truth of andthe
its old investment
abrupt withdrawal adage that a‘sentiment
triggered
market majoronce
and, moves
correction, markets’.
with
again, rentals The
transpar- framework through new regula-
and values
question now on having fallen inlips
everyone’s the order
is ‘whatof 50% over theare
strategies ensuing
required 9 months, returning
to restore to
confidence and
ling the spectacular growth of the 2007 levelsDubai?’ ency was
in some sectors. The rapid turnaround in market conditions in Dubai hasidentified as a key factor. tions governing strata titles, Es-
rebuild brand
Dubai market and its abrupt with- demonstrated the truth of the old investment adage that ‘sentiment
One of the participants summedmoves markets’. The crow accounts, lease registration
question now on everyone’s lips is ‘what strategies are required to restore confidence and
drawal triggered a major correction, While the answer to this question will clearly vary across different
up the general consensus when he stakeholders in the and mortgages
rebuild brand Dubai?’
with rentals and values having fallenreal estate market, one theme appears commonnoted across thatthe board,
the lack an improvement
of market trans- in • Better enforcement and im-
transparency
While the is critical
answer to restoring
to this question willconfidence
clearly varyandacross
sentiment.
different This was highlighted
stakeholders into
the the in the
in the order of 50 per cent over thefindings of Jones Lang LaSalle’s second Investmentparency had contributed
Sentiment Survey (ISS) undertaken proved mechanisms for real es-
real estate
Craig Plumb market, one theme appears common across the board, an improvement in
ensuing nine months, returning toin March 2009. We
transparency askedtoour
is critical sampleconfidence
restoring of the regions feeling
and of ‘delay
leading
sentiment. real and
Thisestate
was pray’ which
investors
highlighted what
in the tate dispute resolution
2007 levels in some sectors. Thefactors and they
findings
reducedconsidered
of Jones Lang
market most
riskimportant
LaSalle’sbeingsecond inInvestment
iden- theirwas decision to invest
Sentiment
currently Surveyin a(ISS)
particular market
undertaken
characterising the – • Operational improvements,
in March
the results, 2009.are
which Weshown
asked our sample
in the chart of below,
the regions leadingthe
highlight realimportance
estate investors what
of transparency,
rapid turnaround in market condi- tified as the two leading influences. Dubai market. agreements on codes of mea-
withfactors
improved they regulation
considered most importantmarket
and reduced in theirriskdecision
beingtoidentified
invest in a as particular
the twomarket
leading –
tions in Dubai has demonstratedinfluences. the results,
The companywhich are shown is certainin thethat
chartes- below, highlight
The good the importance
news is that of transparency,
the Dubai surement and licensing proce-
with improved regulation and reduced market risk being identified as the two leading
the truth of the old investment ad- tablishing
influences.
a solid regulatory plat- government has recognised the dures for real estate profession-
age that ‘sentiment moves markets’. T h e Im p o rta n c e o f T ra n s p a re n c y als
R e s u lt s f r o m J L L ’s 2 0 0 9 I n v e s t o r S e n t im e n t S u r v e y
The question now on everyone’s T h e Im p o rta n c e o f T ra n s p a re n c y
R e s u lt s f r o m J L L ’s 2 0 0 9 I n v e s t o r S e n t im e n t S u r v e y
lips is “what strategies are required The continued role of RERA in im-
DUBAI REAL TIMES

P l e a s e r a n k t h e i m p o r ta n c e o f t h e f o ll o w i n g f a c t o r s i n f l u e n c e o n y o u r d e c is i o n to in v e s t i n a p a r t i c u la r

to restore confidence and rebuild r e a l e s t a te m a r k e t / a s s e t c l a s s .


P l e a s e r a n k t h e i m p o r ta n c e o f t h e f o ll o w i n g f a c t o r s i n f l u e n c e o n y o u r d e c is i o n to in v e s t i n a p a r t i c u la r
proving the regulatory environment
r e a l e s t a te m a r k e t / a s s e t c l a s s .

brand Dubai?” and market transparency will have a


Transparency

Re gu la tion /Le gisla tio n


Transparency

Re gu la tion /Le gisla tio n


M a rke t Risk
While the answer to this ques- Le ve l of R etu rn ( Re ntal I nco me )
M a rke t Risk significant impact on the recovery
tion will clearly vary across different Le ve l of R etu rn ( Re ntal I nco me )
Le ve l of R etu rn ( Ca pital G ro wth ) of the Dubai Real Estate market.
Le ve l of R etu rn ( Ca pital G ro wth )

stakeholders in the real estate mar- A va ila b ility of E q uity


A va ila b ility of E q uity
Continued transparency improve-
ket, one theme appears common ments through 2009 and 2010 will
E xit S tra teg y
E xit S tra teg y

A va ilab il ity of P r od uc t
A va ilab il ity of P r od uc t
across the board, an improvement T ra nsp arTerancy
nsp/ ar
C eorncy
po/rCate Gor ate
or po ve rn
Goan
vece
rn an ce
provide a foundation for stability
in transparency is critical to restor- A va ila bility
A va ilaofbility
D eboftD eb t ahead of what we believe will be a
16 ing confidence and sentiment. This recovery of transactions and pricing
Cost ofCost
D eboftD eb t

0 .0% 5. 0% 1 0.0 % 15 .0 % 2 0. 0% 2 5.0 %


0 .0% 5. 0% 1 0.0 % 15 .0 % 2 0. 0% 2 5.0 %
was highlighted in the findings of levels in 2011.
COMMENTS

A good turnout at the auction


Linda Benbow asked auctioneer Jeremy Mayhew-Sanders, Head of Investment &
Developments at Sherwoods, on what happened at a recently held property auction.

S
herwoods Independent Expectations were high on
Property Consultants held Sherwoods to put lower-to-mid
an auction in early June range properties on offer as indus-
featuring properties in The try experts felt that the absence of
Palm, Dubai Marina, Downtown it caused the failure of an auction
Dubai, Jumeirah Lakes Towers, and in May by another company which
other locations in the UAE. The of- had offered three villas and one
ferings covered a broad price range penthouse apartment in upscale
and featured a mix of ready-to-use, areas of Dubai. Only one property,
nearly completed and off-plan resi- a three-bedroom villa in Arabian
dential and commercial units, as Ranches managed to draw buyers’
well as a number of plots. On the interest. It received a highest bid
night, however, just one plot of land of Dh2.3 million, which according
was sold. to organisers was below the mini-
“To be honest we knew it was mum price the seller was willing
going to be a real challenge to ac- to accept. However, Sherwoods
tually conclude a sale on the night auction did not offer lower-to-mid
of the auction. Before we started range properties.
we said we would be pleased if “We will definitely be holding
there was a good turn out and if another auction and this is likely to
we succeeded in getting people Jeremy Mayhew-Sanders be in October or November,” stat-
in the room to bid. Just shy of 200 ed Jeremy. “There are two types
people turned up so this was a generally remain the main barriers would be of interest to the market of buyers who we want to encour-
good result. On several of the Lots and this is a challenge for everyone with the sellers. That pricing has age into the room. Investors and
we also managed to get people to in the property industry. You can't been the key issue.” Mayhew-Sand- owner-occupiers, people who
bid and came close on two of the hide behind the auction process, ers explained. want a set of keys and move in.
Lots to the reserve level. So again it's a public arena and open for all High expectations of sellers and Next time, for the investor, we will
this was satisfying,” stated Jeremy to see and judge and this should bargain-hunting buyers seem to be endeavour to get more inventory
Mayhew-Sanders. “We did sell one be seen as a positive move in an the stumbling block for auctions that has income. Both commercial
unit immediately after the auction, industry that is shrouded in gossip, currently. According to Mushtaq and residential property that is cur-
Emirates Crown penthouse for Dh6- rumour and hearsay! Ahmed, a Dubai-based business- rently let out and will provide the
DUBAI REAL TIMES

million, and we are genuinely in dis- The lack of confidence in the man, properties with high reserve investor with ready income and a
cussions with three other buyers on whole auction process perhaps prices should not be in the auc- yield. For the owner-occupier we
two other Lots. played a bigger part than I prob- tion market. His bid of Dh70 per need to source property of low to
Having said that we know there ably thought. The company had square foot for a 6,142 square foot mid-range values. More affordable
is still a lot of work to be done. We to reduce the number of proper- villa plot in Dubailand was the high- stock.
still have a way to go to get people ties on offer from 50 to 20 as many est but did not meet the reserve Another lesson learnt is to ex-
to understand the auction process; sellers were unwilling to accept price. “I came here to get a better tend the marketing period to al-
and this is understood and will be lower reserve prices proposed by deal. I don’t need to come here to low people more time to inspect
worked on for our next auction. the company. We could not get to get properties at market price. Why the property and to ask questions 17
Price and confidence in the market a level of reserve that we thought should I waste my time?” he said. about the auction process.”
COMMENTS

Human resources that


will make you win
Whilet the market focus has moved from ‘off plan’ to ‘resale’ many estate agencies are finding
it hard to overcome the need for a new business model. Overlooking one of the key factors in
their business - non-performance of staff - could be the toughest challenge. Cecilia Reinaldo,
Managing Director of Fine & Country, explains how to identify the non-performance signs and
to become resilient.

I
t is a fact that in a real estate en- Resources: In practical terms a few about what to say and do, and
vironment, we need sales. With- have the resources to take on extra memorising what must be done.
out sales we are not in business. financial commitment but, remem- This method is fast changing back
Non-performance has lead to ber, when a company recruite a top- in favour of "agent-centered" and
the closure of many businesses re- agent, it uses its current resources to task-based approaches whereby an
cently, and although everyone be- draw this high profile estate agent agent first performs role plays in the
lieves it is the non-performance of to join them. When the company office to prepare them before they
the markets, I can assure you that does not supply the resources to do it in the field. This is an excellent
in most cases, it is the non-perfor- assist the agent to do the job, the opportunity to interact with a se-
mance of sales staff. company is to be blamed for the nior agent or manager and to learn
In the previous issue of Dubai non-performance of the agent. Lack the finer skills of negotiating.
Real Times, the value of improving of resources can include: Understaff- Behaviour: The agent decides not
Cecilia Reinaldo
your market knowledge was high- ing (admin and marketing support), to do certain tasks and simply ig-
lighted as the first step to improv- Tools and equipment (website, nores it. They ignore the guidelines
ing your sales ‘bottomline’. One of The value of computers, and advertising), Bud- prescribed by the company and
the underlying recommendations improving your get and Marketing material. sometimes deliberately refuse to
was that agents should dedicate Capacity: Non-performance be- cooperate with colleagues. One to
two hours each week, educating market knowledge comes the result when the agent one meetings with your agents will
themselves by reading and study- is the first step to does not have the skill to perform give you a closer understanding
ing the wealth of information avail-
able on local and global property
improving your sales the job. In real estate we often
find that the agent does not have
on the above. A close inspection
might give you the exact reasons
markets. Possession of this informa- bottomline the ability to close the deal, or he for underperformance.
tion will quickly translate in client does not know how to negotiate - In the end we all need to go
acknowledgement of their new- knowledge, skill and attributes are back to basics:- estate agents in the
DUBAI REAL TIMES

found expertise. ble digit rental yields.” I will never key to this business. There are cer- UAE need to learn to let go of the
Conversely, I was in a hotel lob- know whether a deal was made! tain activities that are essential for past. Holding back on the thoughts
by and could not avoid overhearing But, as the old saying goes if you an agent in order to be successful, of the ‘big deals’ you made and the
a conversation from what I would think it’s expensive to hire a profes- and the education approach must ‘record’ reservation forms you man-
presume was a relatively new en- sional to do a job, wait until you therefore focus on the ability to do aged to conclude are never going
trant to the UAE property market, hire an amateur (Paul ‘Red’ Adair). the things that will result in generat- to get you to where you are trying
advising a group of evidently dis- ing an above average income. Pre- to be; and time immemorial has il-
illusioned businessmen “that the Here are a few points that estate viously, most business training be- lustrated that these thoughts are
18 market will definitely go up” and agency owners should have a came "manager-centered", focusing the very same that will hold you
“they are guaranteed to get dou- close look at: on teaching agents in a classroom back from here to eternity.
COMMENTS

Transparency:
the best surprise is no surprise
By Aziz Valliani & Carla Polkinhorn

In uncertain economic times the become more transparent to both


services of a Settlement and Escrow the buyers and sellers. The agent
company are highly valued. Buyers creates Settlement Instructions that
know that their deposits of funds all parties sign off on detailing all ma-
are safeguarded with the Settle- terial aspects of the agreement and
ment Agent -even if their sale and the terms and conditions that must
purchase agreements do not con- occur in order for the transfer of the
tain all the requisite items that are property to be effectuated. He cre-
on the standard ‘checklist’ to prop- ates an accounting of all funds owed
erly close a property transaction. by the buyer, or the buyer’s lender,
For example, buyers are generally as well as the amount of funds due
expected to sign an MOU to pur- to the seller’s existing lender (if any)
chase a property before the seller and both parties are required to sign
Aziz Valliani Carla Polkinhorn
has signed; and it may be missing off on this accounting for complete

T
he concept of Settlement key elements such as the amount of transparency. purchase of property are insured
and Escrow services is not sellers existing loan that is secured Lenders become more willing in bank accounts that are regulat-
a new one. Over a century against the property, the amount of to transact on deals that accurately ed and all property transfer details,
ago certain companies be- rent paid in advance by an existing reflect the current ownership and including mortgage details, are
gan routinely offering their services tenant or the amount of strata fees financial details of the transaction. documented and registered with
to sellers and buyers of real estate to that will become due. Deposits of funds or cheques for the the local authorities.
assist them with the safe and expe- . The unbiased third party in-
dient transfer of property and funds termediary, neutrally monitors the
in accordance with local laws. Many specific requirements of each and Best practices yield best results
countries around the world have every closing while overseeing and Recently, a buyer borrowed Dh 800,000 to purchase his dream home
some form of settlement services controlling the documentation that from a seller. The seller had an existing mortgage of Dh700,000 that
whether it is called Settlement, Clos- is required by local authorities, at- he was supposed to pay off with the proceeds at close. Well, after re-
ing, Escrow, Conveyance or Guaran- torneys, lenders, insurance and real ceiving the funds from the buyer’s lender, the seller - for some reason
tee services. Basically these compa- estate brokers. These various par- - decided to back out of the deal and leave the country in a hurry, with-
nies offer a failsafe way to document ties to the deal, whose representa- out even returning the buyer’s earnest money deposit. So the buyer is
the terms of a closing and execute tive industries have done their best now required to make payments with interest on his Dh800,000 loan
the instructions accordingly. to introduce initiatives that address to the lender for a property that he does not even own.
The word ‘escrow’ has its roots in the problems faced by the current Best practices would dictate that all funds be placed with a neutral
Middle English and old French and economy, can rely on the Settle- third party (Settlement Agent) right when the agreement is reached
basically translates to ‘scroll’ which ment Agent to become the cost between the principals. If the seller decided not to go through with
in today’s terms means ‘checklist’. In effective checks and balances sys- the deal, then the Settlement Agent would be compelled to return
the 1930s, during the Great Depres- tem during closing of a real estate buyer’s loan amount of Dh800,000 to the lender and the buyer’s ear-
sion, escrow accounts were imple- transaction. nest money deposit. Settlement services of a neutral third party could
DUBAI REAL TIMES

mented heavily in the United States Currently sellers are experiencing have alleviated this problem for the buyer.
to gather funds from property own- difficulty in finding qualified buyers This article was written by Aziz Valliani, Managing Director, & Carla
ers regularly to pay property taxes who will risk making any deposit Polkinhorn, Sr. enTrustee at enTrust & Title Ltd., www.entrusttitle.com.
or loan amounts owed so that they of funds into a transaction which In addition to real property transactions, the company also provides
would not fall behind on payments. may fail to complete. The trust fac- Settlement Services for the transfer of personal property, business as-
These escrow accounts are still used tor has evaporated. The chances sets and rental or lease transactions. Non real estate settlement solu-
in most, if not all transactions, as a of a deal going through get much tions are available for individuals or corporate entities. The same con-
means used to account for all costs better when a Settlement Agent is cept of having a neutral third party act as the intermediary between
associated with buying and selling involved. His best practices require the parties is applied. 19
property. that the details of the transaction
COMMENTS

Investing for the long term


Facilities management solutions and value-added real estate services take the spotlight as
companies invest for the long term

W
hile unprecedented solutions offer companies an op-
global economic portunity to focus more on their
challenges have af- long-term business prospects and
fected real estate abide by green building regula-
and construction markets, several tions,” said Agha.
companies have managed to stave While costs of construction
off extinction by harnessing all materials have previously declined
available resources that help im- by up to 30 per cent, recent re-
prove competitiveness. The key to ports show that they have recently
this approach, analysts note, is to jumped by 15 per cent. However,
invest in solutions and services that analysts say the fluctuating figures
enhance long-term sustainability do not suggest anything concrete
and improve operational efficiency. at the moment and may be the re-
In the property sector, for in- sult of companies buying to replace
stance, firms are taking proactive stock, and not necessarily because
steps to counter the effects of di- of a sudden sharp surge in con-
minishing demand by investing in struction activities.
facilities management solutions “Things don’t change overnight.
and other value-added real estate The best approach is still to prepare
services, which are now a lot more and invest in solutions that offer
accessible because of a more com- the best long-term value. In this
petitive pricing structure. regard, there have been several
“There had been a prolonged Sobhi Agha companies that are now reaping
period of diminished construction the benefits of adopting facilities
costs as a result of reduced prop- Either way, I believe they are mak- local authorities on green building management services through re-
erty demand and slow construction ing the right decision by focusing on regulations has likewise increased duced maintenance costs, stream-
activities. The corresponding price the future. Demand gaps and fluctu- demand for the company’s energy- lined operations, energy efficiency,
corrections naturally reverberated ating construction costs are short- efficient property management so- and long-term sustainability. Surely,
across the real estate value chain, term issues and the best way to take lutions. such an investment puts them in a
including facilities management so- advantage of the situation is to think “It’s all about consolidating your very good position to weather the
lutions. I believe this is a very crucial long-term,” added Agha. business. Different economic situ- downturn and, more importantly,
situation wherein businesses must Agha has revealed that the com- ations present different challenges capitalise on the excellent opportu-
be able to correctly assess how pany has seen a significant increase and opportunities. In this period of nities when the real estate and con-
they should be able to take advan- in the number of developers and economic difficulties, property man- struction industries finally stabilise,”
tage of competitive pricing struc- building owners that are now ag- agement solutions and other value- concluded Agha.
tures to offset the effects of a slow gressively seeking suitable facilities added real estate services serve as The Specialists delivers a com-
DUBAI REAL TIMES

demand,” said Sobhi Agha, General management solutions and other important consolidating measures prehensive range of services to cov-
Manager, The Specialists. complementary real estate services that definitely help developers and er all types of property transactions
“Some companies capitalise on to boost business value and long- building owners boost business and within both the commercial and
the low costs by optimising their term prospects. Just recently, The asset value. Moreover, government- residential markets, for lease and for
construction activities. On the oth- Specialists has sealed an agreement led efforts to promote green build- sale. The company additionally of-
er hand, property owners, based on to deliver sales, leasing and property ing standards have likewise further fers comprehensive property man-
our experience, are investing more management services to Dunes Vil- enhanced the demand for the ser- agement services to clients in the
on products and services that en- lage, a Dh300 million development vices that we offer. This is why busi- UAE, while it has also been expand-
20 hance long-term sustainability such in Dubai Investments Park. Agha also ness has remained upbeat as usual ing across other key markets in the
as facilities management solutions. noted that the growing emphasis by for us as our value-added real estate Middle East, including Lebanon.
COMMENTS

Middle income housing segment


maintains price despite market slump
“T
here is still a reason- a family-first, amenity-rich lifestyle is its value-for money location. Pro-
able demand for still a hot property among those on spective buyers appreciate the value
middle income hous- the lookout for residences to move they will get in return for their invest-
ing,” declares Ashok J. into. La Fontana offers a choice of ment,” continues Galgotia.
Galgotia, CEO of Triveni Builders and 105 units comprising studios, one- Galgotia likewise confirmed that
Promoters Limited, developers of the bedroom and two-bedroom apart- construction has been in full swing
Dh80 million middle income resi- ments ranging from 352 square feet since May 2009, and assured inves-
dential development at La Fontana to 1,219 square feet, all surrounded tors that the project will be delivered
in Dubailand. by calming greenery and judicious just after Eid Holidays of 2010. The
And although some projects by use of light and space. change in completion schedule was
other developers have been can- And while property prices have caused by a slight delay in the provi-
celled Galgotia is undeterred. “La tumbled down as much as 35 per sion of permanent power and water
Fontana has started its construction, cent since the start of 2009, Triveni is supply from the master developer of
and has never been in danger of be- Ashok J. Galgotia maintaining a status quo on its cur- the Dubailand community, Mizin.
ing cancelled. The project is support- rent offer, with prices ranging from Triveni Builders is a subsidiary of
ed by a company that has substantial The six-storey, low-rise building Dh498,600 for studios to Dh1,315,900 Triveni Group, which has appointed
capitalisation and remains competi- located in the Arjan Master Com- for two-bedroom apartments. “There Al Shafar National Contracting L.L.C.
tive despite the current property munity, a one-of-a-kind community is no need to slash prices, because (ASNC) as the general main contrac-
slowdown,” he continues. that promotes nature, greenery and the best thing about La Fontana is tor for La Fontana.

Witnessing a positive market reaction


B
etter Homes real estate ing response to its summer offers is looking very positive”, added Ms
agency has witnessed of inventory for sale and for rent. Rautenbach. “In May this year, we
some positive results over “There were no signs of repressed executed 24 per cent more leasing
the past few weeks, where customers during our Open Day transactions than in May 2008”.
both general enquiries and transac- weekend” said Jannie Biddulph, With general enquiries on the
tions are on the rise, after a dip in Sales Manager, Better Homes. “Our increase and talk in the market of
recent months in light of the effect promotion received over 350 walk- mortgages becoming available soon,
the global financial crisis has had in customers, seeking both proper- Better Homes expects to see contin-
on the UAE. The company has en- ties for sale and for rent.” ued success in leasing and see an in-
gaged in a number of promotions Since then, the company has fo- crease in property purchases sooner
and campaigns throughout the cused on promoting competitive- than expected. “As soon as lending
first half of 2009, where it has fo- ly-priced units in areas of demand becomes available on a wider scale,
DUBAI REAL TIMES

cused on offering carefully selected and received over 1,400 calls in just we expect to see a rise in sales trans-
units to its clients, through various two days during the selected pro- Billy Rautenbach actions”, added Ms Rautenbach. “It is
marketing methods and channels, motions. “The positive result indi- Operations, Better Homes. difficult to forecast an exact trend,
within both the sales and leasing cates that despite the recent mar- With a specific customer and the but if the UAE real estate market, spe-
segments of its business. ket downturn, if the right product right product in mind, it has been cifically in Dubai, is bottoming out
Following a summer promotion- is offered to the client at the right able to successfully match buyers as many have suggested (and Bet-
al ‘Open Day’ event at its Jumeriah price, at the right time, there is a and tenants with units, at a price ter Homes has noticed an increase
Beach Residence branch in line with good opportunity to transact units which aims to satisfy its clients, cre- in prices in select areas), then now
the start of Dubai Summer Sur- within both sales and leasing” said ating positive results. “For example, would be the definitive time to invest 21
prises, it recorded an overwhelm- Ms Billy Rautenbach, Director of our number of leasing transactions in property”.
UPDATE

Burgeoning
projects
L
ieutenant General Dahi Khal- industrial factories when the city is the vital role the Dubai Industrial various locations across Dubai, and
fan Tamim, Chief of Dubai completed in 2010. The industrial City plays in supporting the indus- thereby presents a more profitable
Police, has made an official destination is also expected to house trial sector across Dubai. “His visit re- investment option for property pur-
visit to Dubai Industrial around 350,000 people across its in- flects the increased cooperation be- chasers today. Consequently, an in-
City (DIC) in which he was briefed dustrial and commercial zones. tween us through the exchange of creasing number of investors are re-
about the various development and The delegation toured the main expertise and sharing of knowledge portedly looking at Jumeirah Village
infrastructure projects located across offices of DIC, the offices of Dubai on various issues of mutual interest for a more solid investment oppor-
the six zones of the industrial des- Industrial Academy (DIA), and were such as safety and traffic manage- tunity with a lower risk percentage.
tination. Dubai’s top police officer also given a presentation on the ment. These factors have assumed As one of the first to develop within
and his delegation were welcomed growth and development of the city added significance with several the Jumeirah Village development,
by Rashed Al Ansari, Vice President of and its future plans. They were also factories commencing production Memon Investments has reported
Dubai Industrial City, as well as heads introduced to the services of Taa- and development work progressing increased demand and inquiries for
of departments at the destination. sees, the largest government service across various parts of the city.” its ‘Gardenia I & II’ project.
The light and medium weight centre in the UAE through which Property prices in Jumeirah Vil- “Our capacity to identify the
industrial zone currently features 2.8 businesses can access the services lage have climbed by five to 30 per best master developments to build
million square feet of open storage of ten government departments all cent from their low levels in January our projects in, not only in terms of
yards, three million square feet of under one roof. this year, according to recent reports, facilities and prestige but more im-
warehouses in addition to 64 show- Lt General Dahi Khalfan said: signifying an early recovery for the portantly in their potential to pro-
rooms and four office buildings. “Dubai Industrial City is one of the Dubai property market, which has vide excellent investment returns, is
Dubai Industrial City is also witness- strategic projects in the UAE that witnessed a nine-month period of the foundation of our strength as a
ing the construction of 30 manu- plays a key role in promoting local decline. Driven by its commitment developer,” said Ahmed Shaikhani,
facturing facilities that are due to be industry, supporting the national to offering high-value units within Managing Director, Memon Invest-
operational by the end of 2010. economy, and elevating services to luxury community developments, ments.
The 560 million square feet proj- international standards.” Memon Investments is fast-tracking Located near the Cultural Centre
ect is a comprehensive one stop- Praising DIC’s efforts to create the construction of ‘Gardenia I & II’ and Central Park, Memon Invest-
shop industrial and commercial an ideal environment for attracting - a project strategically located in ments’ five-storey residential devel-
destination featuring six industrial industrial investments, he called for Jumeirah Village which has been opment will incorporate studios,
clusters including food and bever- a proactive approach to facilitate master developed by Nakheel, and one and two-bedroom units; lavish
age, base metal, mineral products, investment in the sector in addition is set to provide authentic Mediter- townhouses and loft apartments,
chemicals, transport equipment and to re-examining any regulations that ranean-inspired residential, com- with retail units on the ground floor.
parts, as well as machinery and me- might impede this progress. He also mercial and retail space. Based on the vision of Dimensions
chanical equipment. noted the need for nurturing indus- According to recent reports, Engineering Consultants (DEC), it
The Chief of Dubai Police was also trial leaders through programmes the 811-hectare integrated master was splendidly designed with stuc-
provided with an overview of safety such as those currently being of- community has not been impacted coed walls, tiled roofs, rustic arches,
standards at DIC which will house fered at DIA. to the same degree as the large solid wrought iron balcony grills,
more than 500 light and medium Al Ansari said the visit underlined number of residential properties in carved doors, ornamental spiral col-
umns, marble flooring with thematic
DUBAI REAL TIMES

and floral patterns. Two leading sup-


pliers and contractors are also col-
laborating for the project, including
the International Foundation Group
(IFG), who is undertaking the Dh 2.4
million shoring and excavation con-
tract; and Shanghai & Arabian Elec-
tromechanical LLC (SAE), who will
22 install high-speed elevators within
the towers.
FACILITIES & SERVICES

Facilities management in demand


L
ooking after buildings af- ity management solutions and con- step at a time. The company intends
ter they have been built sultancy from the conception to the to complement government initia-
is big business nowadays, completion of projects, as well as tives to promote sustainability by of-
and looking to get bigger customised long-term FM solutions. fering our expertise to developers in
as laws are introduced to encour- The company’s client base in- designing and constructing facilities
age centralisation of those who fix cludes major corporate and service that truly adhere to internationally
things. Strata practices are being establishments such as Nakheel, accepted green building standards.”
adopted more and more by interest- Jafza, DP World, UAE Region, Dubai Raes highlighted that in the case
ed groups who are being taught the Customs, Limitless and Tamweel. of new buildings, the development
‘do’s’ and ‘don’ts’ of hiring a plumb- Among major projects on its portfo- of truly sustainable facilities must
er, gardener, electrician, mechanical lio are Palm Jumeirah, The Gardens, start at the drawing board to en-
engineer and other tradesmen and Atlantis, International City, Jebel Ali sure that buildings are designed
professionals who see to our home- Port and Free Zone, Ibn Batuta Mall, to match their intended purpose,
ly and workplace needs. Wouldn’t Dubai Maritime City and Wasl-DREC. which will ultimately help cut down
it be nice to just call one company The increasing emphasis by the maintenance costs, improve build-
to organise all the others. Well, yes, UAE Government in the UAE on green ing efficiency and ensure sustain-
actually, it would be nice. It happens building regulations has boosted ability. He noted that the success
elsewhere – Australia has an estab- demand for facilities management of this process to a large extent de-
lished strata system for looking after (FM) services not only in buildings pends on the expertise of architects
its buildings, projects and people – two years in line with its increasing under construction but in existing and building designers to effectively
and it going to happen in Dubai. operations. The company’s current buildings as well, noted Sungwon integrate green building concepts in
Imdaad, an integrated facilities manpower base shows an increase OBO, a member of Makateb Hold- the design.
management company under Dubai by 26 per cent compared to the num- ing. Sungwon OBO pointed out A green building is an outcome of
World, has announced plans to re- ber of employees in 2007. that while it will primarily focus on a design which focuses on increas-
cruit more staff this year to match Armed with several new high-pro- providing facilities management ser- ing the efficiency of resource use
projected growth in its operations. file FM contracts, Imdaad has already vices to buildings in various stages of — energy, water, and materials —
The decision will raise its staff count set it expansion plans rolling by add- construction that are committed to while reducing building impacts on
by 25 per cent by the end of 2009 ing to its service fleet, which present- adopting new green building regu- human health and the environment
compared to the number of staff in ly has 129 vehicles, including tipper lations, it is also expecting a height- during its lifecycle. This is achieved
2008. Imdaad sees this as a strate- trucks, skip loaders, dump trucks, tip- ened demand for its consultancy by efficiently using energy, water,
gic necessity designed to meet the per trucks with cranes, double cabin services from owners of existing and other resources; protecting
increasing demand for its services pick-ups, sand sweeping machines, buildings who wish to reap the ben- occupants, health, improving em-
across an expanding geographical beach cleaners, buses, tankers and efits of a sustainable facility. ployee productivity, and reducing
footprint. compactors. New compactors and Eric Raes, CEO of Sungwon OBO, waste, pollution and environmental
Jamal Abdulla Lootah, Chief Ex- other vehicles have been ordered to said, “With the UAE Government’s degradation.
ecutive Officer of Imdaad, said: “The strengthen waste collection and dis- growing focus on green buildings Aside from a comprehensive
decision to increase our manpower posal services. and sustainability, both developers, range of FM services, which include
base is a forward-looking strategy. In line with Dubai’s commitment and in several cases, owners of exist- mechanical and electrical mainte-
The company has set ambitious to sustainable development, Imdaad ing buildings, are keen to improve nance, cleaning, security and energy
DUBAI REAL TIMES

targets for expansion in the region has stepped up efforts to deliver day-to-day operations in energy management, Sungwon OBO also
and to cement our leading position ‘green services’ to ensure environ- consumption, water use, indoor en- provides consultancy service dur-
in the facilities management sector. ment protection, and implement vironment, and waste management. ing the design and construction of
Augmenting our human resources all safety and health parameters at Incorporating sustainable practices building developments to help im-
will enable us to meet our contrac- its various projects. The Beati en- in existing facilities will result in sig- prove the building’s lifecycle. The
tual commitments and deliver ser- vironmental awareness initiative it nificant financial benefits in the long expanded line-up of services is part
vices of the highest standards.” launched in Dubai schools has gen- run, and building owners will not be of its growth initiatives in the UAE’s
The recruitment plan is consis- erated a tremendous response from burdened by the costs involved in FM market, where the company
tent with the steady expansion of the student community. replacing existing building systems aims to grow between 15 to 20 per 23
Imdaad’s workforce over the past Imdaad provides integrated facil- if the improvements are made one cent within the next three years.
FACILITIES & SERVICES

Energy reduction
By Alice Tapfield

E
nergy reduction has be- ognised by the Dubai Government,
come a hot topic of global which has begun a co-ordinated
discussion recently for effort to educate the public in this
both environmental and matter. Both the Dubai Municipal-
financial reasons, since in addition ity and DEWA (Dubai Electricity and
to saving the planet, ‘going green’ Water Authority), for example, are
can also help to save money. The running numerous programmes
subject is particularly relevant given aiming to demonstrate how energy
the current financial climate, and efficiency helps to protect the envi-
especially so for the UAE, where en- ronment as well as leading to sub-
ergy consumption has quadrupled stantial personal savings.
over the last two decades. Accord- “Through a series of initiatives
ing to a report issued last year by towards safe-guarding the environ-
the World Energy Council, the rate ment, such as the ‘Best Consumer’
of consumption is now estimated and ‘Conservation for a Better To-
to be around 10 per cent annually, morrow’ campaigns, DEWA aims
which is both environmentally and to encourage the community to
financially unsustainable. adopt and endorse green concepts
At present, the UAE’s energy (in within their homes and offices,” ex-
this article meaning electricity) is plained Engineer Amal Koshak, Se-
generated mainly from natural gas, nior Manager of Demand and Tariff
supplemented by oil where neces- Management at DEWA. “We believe
sary. The country is at the forefront this will have a sustainable impact
of global efforts to develop alter- on our immediate surroundings
native energy sources such as solar and also motivate other stakehold-
power, but as renewable technolo- ers across the region to emulate our
gy alone cannot yet satisfy high lev- example.”
els of demand for power, reducing Statistics show that the schemes
consumption still remains crucial. are already making a substantial im-
The need for more prudent us- pact among the public. According
age should not, however, cause to DEWA, electricity consumption
alarm. Since energy is often used decreased by six per cent and water
wastefully, cutting back should be use dropped by 37 per cent amongs
achievable simply through improv- all sectors which participated in the
ing energy efficiency, leading to DEWA ‘Your Decision’.
potentially huge cost savings for campaign in 2008. This suggests
consumers, businesses and the “We believe this will that consumers across all sectors
economy as a whole. have a sustainable are keen to embrace new methods
DUBAI REAL TIMES

for increasing energy efficiency.


impact on our immediate
Knowledge is power: How There is undeniably a strong
energy efficiency in build- surroundings and case for sustainable living and re-
ings can save costs also motivate other ducing our carbon footprint from
an ecological perspective, which is
Although many power-saving mea-
stakeholders across the reason enough to cut back on con-
sures are widely known today, a cer- region to emulate our sumption. However, the monetary
tain lack of awareness still generally example” advantages to energy saving are
24 exists about why and how to con- equally clear, and assuming (if cyni-
serve resources. This has been rec- Amal Koshak cally) that the majority of people
apparently been reluctant to cut “Regardless of actual usage, every-
Dubai is positioning itself back. one here pays the same,” said Mr
Schmidhofer. “This system is ex-
to be one of the world’s Paying for what you tremely wasteful and it would be
greenest cities and this use... cutting costs with much more efficient, and cheaper
consumption-based for all of us, if we were metered.”
collaboration between DEWA Studies carried out by the E.V.V.E.
energy billing
and the Dubai Municipality (European Association for the con-
will result in the world’s first One possible reason for the con- sumption-based billing of energy
tinuing disinclination to save energy costs) have shown that energy
comprehensive system of is that prudent usage is not being and water consumption is typi-
green building regulations fostered through current meth- cally around 20 per cent lower in
ods of billing. Currently, although sub-metered buildings. This points
Kamal Azayem
all buildings in Dubai are metered, to a direct and positive correlation
are motivated more by potential building codes in the scope of their the choice still lies with develop- between tenants’ responsibility to
financial gain than environmental application. ers as to how tenants are charged pay for what they use and their pru-
concern, classic economics should Kamal Azayem, Mechanical En- for electricity and water consump- dent consumption of resources. As
dictate a decline in consumption. gineering Expert at the Dubai Mu- tion. Consequently, many landlords such, real estate developers stand
Yet energy continues to be squan- nicipality, is the co-ordinator of the have traditionally chosen to include to make substantial gains from in-
dered on a surprisingly large scale green building committee from the utility payments within annual rent stalling advanced metering and
in Dubai, which suggests a block- Municipality’s side. “The green build- or service charges, be it for ease of billing systems in buildings, since
age somewhere in the proverbial ing regulations we are developing implementation and/or financial the cost savings from lower energy
system. will be instrumental in helping to gain. Usually, the total energy bill consumption can be passed on to
save energy and water throughout for a building is divided between tenants in the form of lower ser-
Government initiatives to the Emirate”, he commented. “Dubai individual units based on their floor vice charges. The latter now repre-
lead the way is positioning itself to be one of the area. The system therefore assumes sent an important factor for both
world’s greenest cities and this col- that greater floor space equates to residential and commercial tenants
Dubai is serious about tackling en- laboration between DEWA and the higher power consumption, which in choosing new premises, so the
vironmental issues, and as part of its Dubai Municipality will result in the neither rewards tenants who use ability to reduce fees is significant
Strategic Plan 2015, it is committed world’s first comprehensive system less power, nor penalises those who for developers.
to setting a global precedent in sus- of green building regulations.” use more. This creates no incentive A high proportion of service
tainable development. While the The legislation, which will be to save; residents must pay for en- charges are frequently attributed
government has always been reluc- implemented in four tiers and apply ergy even when it is not required, to cooling energy, so landlords
tant to impose legislation unnec- to both new and existing buildings, and this inherent unjustness has who are able to keep their costs
essarily, the effects of the market’s will undoubtedly accelerate adher- led to many recent complaints from down and consequently offer
‘invisible hand’ are still not as appar- ence from developers in Dubai to tenants. lower, and more equitable, service
ent as one might expect in the cur- energy-saving. Yet the question Juergen Schmidhofer, is a flat charges to tenants automatically
rent financial climate, where cost- still remains as to why, given the owner in Discovery Gardens, where become more attractive than their
cutting has become of paramount potential cost benefits of conserv- residents are charged Dh11 per less energy-efficient competitors.
importance across all sectors. ing power, consumers have so far square foot for cooling energy. With this in mind, metering and
Realising, therefore, that regu-
lation would speed up the drive
to ‘go green’, in October 2007 a
directive was wisely issued by His
Highness Sheikh Mohammad Bin
Landlords who are able to keep their
Rashid Al Maktoum, Vice-President costs down and consequently offer
and Prime Minister of the UAE and lower, and more equitable, service
Ruler of Dubai, stipulating that
all construction within the Emir-
charges to tenants automatically
ate must henceforth comply with become more attractive than their
green building regulations. Follow- less energy-efficient competitors
DUBAI REAL TIMES

ing a thorough review of over 250


international rating systems, includ-
ing US-based LEED, UK BREEAM and
Australian Green Star, the Dubai Mu-
nicipality and DEWA will shortly be
issuing a new green code. This will
cover all aspects of building design,
construction and operation and will
be mandatory, thereby surpassing 25
all other (voluntary) international
assist in reducing energy consump- be that people are unable to reap
tion throughout the emirate. the benefits it should bring in the
“One of the most The carrot-and-stick approach form of lower bills. So far, no leg-
important roles of the is generally accepted as an effec- islation exists in Dubai governing
Facilities Manager is tive method for change, even if the metering requirements. The Emir-
relative proportions remain in dis- ate is, however, fully aware of the
to improve the energy pute. In the case of energy saving, need to preserve its precious en-
efficiency of buildings the stick is regulation, with the car- ergy resources; significant savings
rot being the potential financial re- have been achieved in other parts
by making the most wards from cutting consumption. of the world through introducing
of their existing Yet it seems that this particular comprehensive regulations for me-
technology carrot is currently dangling out of tering and billing practices, and this
reach for many consumers. That is, presents a strong case for Dubai to
a reason why energy saving is not do the same.
Fergus Appleton widely taking place in Dubai, could As His Highness Sheikh Mo-
hammed has stated “energy con-
billing systems also constitute a water consumption by over 40 per servation represents one of the
powerful weapon in the armoury cent on one contract) at little extra greatest challenges today towards
of FM companies. The latter will cost,” he added. “The companies
… landlords who sustainable development. Dubai
be directly answerable to Home that pay attention to detail, moni- has already set the wheels in mo-
Owners’ Associations as soon as tor the information frequently and are able to keep their tion through some excellent gov-
Strata Law takes effect in Dubai, constantly tweak their solutions will ernment initiatives, of which the
and therefore must be able to ad- lead the market.”
costs down and offer forthcoming green building code
vise clients about the most energy- lower, and more will represent a global first in the
efficient products and services on Looking to the future equitable, service scope and depth of its coverage.
the market if they are to remain While the support of consumers for
competitive and renew existing The most forward-thinking real es- charges to tenants energy conservation is also growing,
contracts. tate developers realised a long time for both economic and ecological
“One of the most important ago that energy-efficient buildings
automatically become reasons, creating further financial
roles of the Facilities Manager is to are potential future goldmines, and more attractive than incentives to save would acceler-
improve the energy efficiency of consequently incorporated sustain- ate the process and help to assure
buildings by making the most of able designs at the outset. Others their less energy- Dubai of its status as a future world
their existing technology,” said Fer- have now seen the (green) light efficient competitors. leader in environmental practices.
gus Appleton, General Manager of and are busy retro-fitting. The forth-
Towers and New Business at Con- coming building regulations will
cordia Community Management. soon oblige the rest of the industry Alice Tapfield is Senior Editor at Bridge
“Many buildings don’t currently to follow suit and will undoubtedly Media News
have centralised, energy manage-
ment technology in place so FM
companies need to adopt an in-
novative approach and utilise their
resources effectively to constantly
improve efficiency.” Mr Appleton
emphasised that the really suc-
cessful FM companies will be those
which address the specific needs
of the end user. “Approximately 45
to 55 per cent of a building’s bud-
get is currently taken up by utilities.
Therefore, in addition to providing
excellent overall FM service deliv-
DUBAI REAL TIMES

ery, facilities managers must also


focus on increasing the efficiency
of buildings in order to minimise
the environmental impact and
overall cost.
“Concordia has achieved some
fantastic results from implement-
ing practical energy management
26 strategies (we reduced chilled
HANDOVERS

A set of keys
A
t a time when the word homes in November but has now the Coral, Jade, Ruby and Sapphire Commerce and Media (TECOM) free
property lies hand-in- completed the villas and customers Residences. This follows the recent zone, and brings the total number
hand with the word un- were given a preview of the homes delivery of all 312 units at Madison of projects delivered in the first six
certainty it is a pleasant before the hand-over process start- Residency in the Technology, E- months of this year by Deyaar to
surprise to note that buildings are ed in June.
being built, owners are collecting Mr Ahmad Al Matrooshi, Manag-
their keys and the business of mov- ing Director – UAE, Emaar Properties,
ing in and living a life are going on said: “Emaar achieved this milestone
quietly in the background of every- by working in close cooperation
day life. with contractors and consultants
Zabeel Properties has officially with a focus on optimising resource
handed over its first development use efficiency and maximising pro-
to its owners at Tiara Residence, ductivity.”
comprising of 644 resort style resi- Emaar is progressing on the com-
dences, located on the main trunk pletion of its projects, which are in
of Palm Jumeirah. About 70 per cent varying stages of development. The
of the development has been sold company has four established com-
and home owners began moving in munities in Dubai already – Emirates
during April. Living, Arabian Ranches, Dubai Ma-
Emaar Properties has highlighted rina and Downtown Burj Dubai.
Dubai Silicon Oasis
its commitment to project deliv- Omniyat Properties has handed
ery, despite the challenges of the over the keys of Bayswater, its com- five, the company added.
global financial crisis, with the hand mercial tower in Business Bay, to
“Emaar achieved this Joint-venture partners, Nakheel
over of Alma townhomes in Ara- investors. The scissor-shaped tower and IFA Hotels and Resorts have
bian Ranches five months ahead of has 293 offices and 11 retail units. milestone by working started handing over the keys to
DUBAI REAL TIMES

schedule. The company had recent- Omniyat Strata Management will in close cooperation the residential units at Golden Mile
ly also completed and handed over control and manage the administra- on Palm Jumeirah. Golden Mile is
La Avenida, a cluster of 17 luxury tive and financial requirements of
with contractors and made up of 10 buildings with a to-
villas within Arabian Ranches, eight the building's common facilities and consultants with a tal of 860 residential units, in addi-
months ahead of schedule. assets. focus on optimising tion to the first freehold offices on
Acommunity of 212 luxury Dubai-based Deyaar Develop- Palm Jumeirah, as well as an exten-
homes, Alma townhomes had ment has begun handing over all
resource use efficiency sive retail area. All residential units
gained overwhelming investor re- 470 residential units at four of its and maximising are managed by the neighbour-
sponse when launched in 2007. residential projects at Dubai Silicon productivity.” ing Fairmont Palm Jumeirah hotel, 27
Emaar was to have delivered the Oasis. The four projects comprise which is set to open in 2010.
UNDER CONSTRUCTION

Cranes are moving


M
any cranes in Dubai
are actually mov-
ing as construction
moves on at a less
hectic pace. Cement is still being
poured and interior designers are
sharpening their pencils waiting to
beautify these edifices.
Cayan Investment and Develop-
ment has announced that it iconic
Infinity Tower development in
Dubai Marina has accelerated its
construction work and has already
achieved significant progress on
site. The 80-storey tower, which will
offer a spiral view with a 90-degree
curve design to give a stunning
view of Dubai Marina, has reached
floor 16 of the core wall and floor

seven for the typical floors. The the other hand, has accelerated its the main consultant.
podium levels, which make up six construction work on site.” Memon Investments has an-
floors, are all complete. Arabtec, The development has already nounced that it is on track with
the main contractor for the proj- garnered a total of six design the construction of all its projects
ect, has over 1,000 workers on site, awards over the last three years, in Dubai, which are collectively
working around the clock on shifts including the International Archi- valued at Dh1.34 billion. The devel-
to ensure the construction schedule tecture Award from the Chicago oper is asserting its commitment to
is followed. Athenaeum. Cayan has already delivery, despite the massive delays
In his comments on the project carved a niche with the hand over and cancellations of 48 real estate
construction, Mr. Ahmad Al Hatti, of La Residencia Del Mar, Dorrabay projects in the UAE. The report,
DUBAI REAL TIMES

Chairman of Cayan, said: “Cayan In- and The Jewels projects in Dubai which was released by REIDIN.com
vestment and Development has al- Marina and Cayan Business Centre also revealed that the majority of
ways remained committed to time- in Tecom. the troubled projects are high-end
frames on its various projects and Arabtec Construction LLC is residential and commercial devel-
Infinity Tower is no exception. We the main contractor for the proj- opments, as the drop in sales and
have moved from basement to level ect, while Drake & Scull has been strict financing have forced devel-
seven in the past six months when awarded the MEP works. Khatib & opers to reconsider their project’s
recession has hit hard and where Alami are local consultants for Infin- viability.
28 many developers have stopped or ity, Currie & Brown are the Project Underlining its capacity to pro-
slowed down their work; Cayan, on Management Company and SOM is ceed with the construction of all its
launched projects given its strong
financial standing, Memon Invest- Omniyat Asset
ments has pointed to the first de- Management
velopment within its ‘Champions
Tower’ series, and the ‘Cambridge (OAM) has signed
Business Centre’ which is expected a Memorandum of
for delivery by the end of 2009. Hav-
Understanding (MoU)
ing strictly adhered to the Escrow
Law and registered with the Real with Dubai-based u
Estate Regulatory Agency (RERA), concept, a premier
the developer is expecting a boost
in investor confidence as a result
health and fitness
of its efforts to ensure security for service provider, to
their investments. offer unique lifestyle
“The global recession has cre-
ated an astounding backlash to the services to tenants
regional real estate sector that has of the Dh507 million
even the largest real estate players
One Business Bay,
in the region reeling from its blows,”
said Ahmed Shaikhani, Managing which will soon be
Director, Memon Investments. “We delivered. Under the
are proud to be still standing strong
amidst the downward momentum
agreement, u concept
that is sweeping the regional real will operate the entire
estate market, and we believe that podium roof consisting
this has been the result of our un-
wavering commitment to meeting
of approximately
our clients’ needs, combined with 21,500 square feet for
our strong fundamentals and finan-
recreational, beauty
cial backing. We are confident that
the current economic conditions as well as food and
will have little effect on the con- beverage offerings
struction of our projects.”
Memon Investments has
launched a total of five projects in
Dubai Sports City, including four measures spearheaded by the UAE and Relaxation. needs and is committed to tai-
towers within the ‘Champions Government. Through the com- The OYSTER is built on the belief lored wellness plans. A customised
Tower’ series and ‘Frankfurt Sports bined efforts of the government that developing ground-breaking health programme is devised to
Tower I’, in addition to 'Gardenia I and the industry, I have high hopes and interactive work facilities can enable individuals to reach specific
& II’ in Jumeirah Village, and 'Cam- that we will be able to weather the contribute to revolutionary high goals centred on stability, strength
bridge Business Centre' in Dubai challenges brought by the current work performance. The concept and power.
Silicon Oasis. In line with the re- slump in the market,” concluded was originally introduced after the Another offering is ‘u fuel’, which
ported decline in the construction Shaikhani. launch of One Business Bay, but pertains to all nutritional aspects –
cost per square foot within the UAE Omniyat Asset Management Omniyat has allocated additional advising and educating individu-
since the onset of the economic (OAM) has signed a Memoran- budget to integrate these services als on healthy eating habits that
crisis, the developer has committed dum of Understanding (MoU) with and principles into its current flag- complement one-to-one training.
to further strengthening its part- Dubai-based u concept, a premier ship. The company is dedicated to Food is freshly prepared at the res-
nership with leading construction health and fitness service provider, constantly enhance the personal taurants, fit for a gourmet and tai-
companies. to offer unique lifestyle services to well-being of people who live and lored to the specific dietary need
“The challenges posed by the tenants of the Dh507 million One work in Omniyat buildings. of each person. The food services
current economic crisis are true Business Bay, which will soon be OAM, the Dubai Business Bay are available as part of the overall
DUBAI REAL TIMES

tests to the commitment of or- delivered. Under the agreement, specialists, together with u con- wellness plan, but also provide a
ganisations to delivering their u concept will operate the entire cept will be the first to give life healthy and considered alternative
promises and to their resolve to podium roof consisting of approxi- to this harmonious workplace for business lunches.
overcome difficult situations. As an mately 21,500 square feet for recre- focused on providing a healthier OAM and u concept will work
established player in the real estate ational, beauty as well as food and work/life balance for the first batch closely on diversifying the OYSTER
realm, we have taken the necessary beverage offerings. This area will of office workers in Business Bay. offering into new categories and
adjustments to combat the reper- form the cornerstone of the OYS- u concept has made its name avenues across the Omniyat Port-
cussions of the crisis, which we be- TER, and Omniyat lifestyle initiative with a custom offering called ‘u folio, making them a strong player
lieve can be further countered with which stands for Offices Yielding plan’, working on the premise that in the healthy lifestyle business 29
a continuous stream of positive Superior Targets through Efficiency each person has unique fitness sector.
FOCUS

A defiant
mood The Big 5 PMV, now in its third year, will be staged at the Dubai International
Convention and Exhibition Centre alongside the Big 5, from 23-26 November, 2009

Companies are defying the global slump by putting their minds to a variety of ways to continue
working hard to deliver their goods. Work is continuing on building projects and keys to
completed properties are being handed over to owners. Interior designers and office furniture
suppliers reap rewards by updating and modernising businesses which have decided to rent
and stay in their present locations. There is now time too, to sit, think and draw up feasible
telecommunications infrastructure plans for both future and current buildings. Even old
machinery is being given a new lease of life as auction companies sell off previously owned
industrial equipment to overseas customers.

T
he construction industry is Big 5 PMV, the specialised focal point turers Scanclimber, see a silver lin- eas that are productive and gener-
showing signs of defiance of the exhibition for manufacturers ing for the construction equipment ating business. Now is not the right
with over 200 projects com- and suppliers of construction plant, business and the industry as a whole. time to expand.”
pleted or to be completed machinery, vehicles and equipment. “The construction industry is witness- While the UAE had a strong
this year, more than the total for the Peter Sutton, Vice President – Ven- ing a slowdown at the moment, but I presence with 72 exhibitors, the
whole of 2008. Research by industry ues at DWTC said: “Building on the believe that if the right measures are international pull of the show and
analysts Proleads has revealed that success of the decision to relocate taken by the governments, things the lucrative nature of the Middle
only 2.4 per cent of UAE construction the Big 5 PMV to Dubai World Trade will start picking up again by the end East construction sector were high-
projects worth $1.28 trillion, which Centre last year, which led to a 29 per of the year,” said Aamer Hammoudi, lighted by the fact that 28 countries
were under way at the start of the cent increase in visitors over 2007, General Manager, Al Nawi Group. were represented including Italy,
year, have been cancelled. Car Park C site is undergoing signifi- Hammoudi said the economic cri- Germany, France, USA, Taiwan and
DUBAI REAL TIMES

The figures were highlighted as cant re-development. The entire site sis has led to the company focusing China.
development plans were released is being levelled and surfaced with its resources on serving its existing Summertown Interiors has found
for the Big 5, one of the world’s larg- a grid network laid throughout for top five customers who generate 80 that the economic downturn has a
est trade shows for the construction electrics and drainage and the PMV per cent of sales in the Middle East. positive side for business. The de-
industry, when it takes place for the indoor area will be a fully functional “We know that these customers have sign team has seen a trend in many
30th year in Dubai in November. A purpose built temporary structure.” projects that will take us through the corporations investing in new office
new purpose built temporary struc- Despite negative effects of the downturn. At the same time, we are fit-outs and refurbishments for their
ture and outdoor exhibit area is be- recession on the construction sector, streamlining our operations to cut all office space; using money saved as
30 ing constructed at the Dubai World companies like Al Nawi Group, UAE unnecessary overheads. We are care- a result of the decrease in the rental
Trade Centre to accommodate the representatives of Finnish manufac- fully applying our resources into ar- market. “In this current economic
climate commercial rental proper-
ties have adjusted, at times falling
by up to 40 per cent, and this has
opened up avenues for new busi-
ness for us. Some corporations have
almost halved their rental costs and
many have been directing this extra
capital to new office fit-outs or of-
fice refurbishments or alternatively
some decide to move premises as
they get more value for their mon-
ey in terms of location or square
metres” said Marcos Bish, Managing
Director, Summertown Interiors.
A market leader in eco-friendly
design, the company is compliant
with the Leadership in Energy and
Environmental Design (LEED) certi-
fication, in the gold category. In a
time of economic crisis, the LEED
certification is a further coup as
businesses are realising that they
can actually save money with their Summertown Interiors headquarters and showroom in Jebel Ali Free Zone
new or refurbished office, whilst si-
multaneously minimising the com- meeting with the engineering of- of the construction of buildings in bringing top of the line telecom-
pany’s corporate carbon footprint. fices and construction companies, all stages, in addition to holding a munication services to its custom-
“There has been a significant developers and government prop- number of workshops within and ers, du has introduced new building
increase in the uptake of green ini- erty firms in Dubai. The meeting, outside the Municipality with the infrastructure guidelines supporting
tiatives in the UAE, as companies which comes within the framework clients. FTTx technology. This will benefit
become more aware of cost-sav- of the municipality's commitment United Corrosion Technologies all categories of property develop-
ings during the current economic to the continued development to (UCT), a provider of corrosion engi- ments to include existing and new
climate. By incorporating environ- provide services for customers, was neering services and solutions has projects, in terms of providing state
mental designs which are LEED held at its training centre in June. It launched a new range of innovative of the art, future proof telecommu-
compliant, we can create an office introduced the World Bank's con- products that safeguard against the nications and multimedia services to
which uses up to 35 per cent less cept of building licensing process financial and structural threat of cor- their tenants.
energy, 40-50 per cent less water and the necessary steps for the es- rosion of exposed steel rebar. The Existing and future property
and can divert over 90 per cent of tablishment of a comprehensive launch of the product range comes developments will benefit from the
its waste from the landfill. When building, starting from the land map at a time when a large number of latest building infrastructure guide-
you add all this up on a yearly basis, to getting an NOC, submitting plans, projects in the region are on ‘hold’ lines leading to increased flexibility
it can be a considerable saving for a obtaining building permits, require- or progressing at reduced pace, in installing telecom infrastructure,
company,” said Bish. ments of the work site, supervision, leaving rebar exposed to the ele- reduced efforts and space, and less
The company recently opened obtaining completion certificates ments. Steel reinforcement corrodes complexity in managing electrical
its new corporate headquarters and and application procedures for final rapidly when exposed for prolonged installations. These guidelines cover
showroom in Jafza (Jebel Ali Free delivery of the services. periods to the erosive environment different building types like resi-
Zone), Dubai. The new premises of- Eng. Khalid Mohammed Saleh, of the Arabian Gulf region, making dential villas, buildings, commercial
fer water efficient fixtures to reduce Director of the Buildings Depart- protection and preservation vital. towers, shopping malls and others.
water consumption; usage of LEED ment pointed out that the purpose UCT’s new range of products is It is structured to cover all aspects
certified furniture, products and of this meeting was to reduce build- available in many forms, allowing of telecom infrastructure such as
materials with high recycle content ing permits procedures and to hear the prevention of flash rusting and telecom spaces, electromechani-
and reduced energy consumption the complaints of owners of com- providing protection of exposed re- cal works, pathways and telecom
through sensor-controlled lights. panies, consultants and contractors bar for up to five years. Without such cables specs. The complete guide-
DUBAI REAL TIMES

The premises also incorporated regarding the issuance of permits treatment, the resultant accelerated lines are available for viewing and
into their design star-rated energy and approvals by the municipality. rates of corrosion can compromise download on www.du-noc.ae The
electrical equipment; indoor CO2 He noted that the municipality has the future integrity of the struc- brochure guides property develop-
monitors; water usage reduction carried out a study of the building ture, with potentially severe safety ers through a No Objection Certifi-
through sensor based systems and permit process, to develop and im- and cost implications. The com- cate (NOC) process that includes de-
waste segregation for recycling pur- prove the licensing and construction pany’s products have been utilised sign validation, materials checking
poses – all of which will save money process within Dubai to raise the lev- in many projects throughout the and site inspections, through to final
for the company. el of international competitiveness, Middle East, including Burj Dubai, implementation.
Buildings Department of Dubai and has an inventory of all the steps the world’s tallest structure. 31
Municipality organised its fifth required (compulsory and optional) In-line with its commitment to
FTTX overview
F
TTX is a form of fibre optic agers and project team members”. glamorous side on the Coke Side of Kuwait. The competition will run
communication delivery In the UAE, local literacy rates of Life. Tune into MBC’s hit show Style until August 9, 2009. Regional SMS
in which the optical signal women currently match those of & Stars to catch a glimpse of the codes will be broadcast every week
reaches the end user’s liv- men, and there are now more wom- most tastefully done, hip, exquisite on the Style & Stars show and are
ing or office space. It can carry high- en at university than men. Women and modern three-bedroom, fully- also available on www.cokelightvia.
speed broadband services integrat- are accountable for an increasing furnished apartment and enter the com The winner will be revealed
ing voice, data and video on a single portion of the national workforce regional SMS draw for the V.I.A. on the final show airing on August
connection. Other acronyms such as and occupy jobs ranging from teach- The company has taken a life- 20, 2009.
FTTP, or FTTB are used, but these are ing and healthcare, to engineering style route to highlight the modern Regional auction companies
essentially interchangeable. FTTH is and banking. Many women have se- well-being and contemporary living have been reporting an upturn in
becoming the catch-all description cured senior roles and work in vary- aspects of the brand through part- sales despite, or perhaps because
for all fibre to the home, premises, ing positions within an organisation.
business and “x” technologies. The recognition of the value and
From September this year, SMG skills of women in a modern Arabic
(Specialised Management Group) and Islamic society has given rise to
will run courses for women by wom- women making their presence felt
en. This initiative is in response to the in the workplace.
growing interest in women working For women, achieving the Certi-
in projects and their desire to learn in fied Associate in Project Manage-
a non-mixed environment. Courses ment (CAPM) qualification is much
will range from basic to advanced easier than it used to be, requiring
project management and will include 23 hours of project management
preparation courses for certification training from a recognised PMI in-
as a project management profes- stitution, followed by an exam. This
sional. The courses will be tailored to globally recognised qualification
suit the female project management can lead to greater earnings, career
professional and will be adapted to opportunities and advancement,
relate directly to the industries in and greater recognition from peers.
which female attendees work. The credential also increases project RB Auctions in Jebel Ali held its busiest ever sale in June
“The interactive nature of our management skills and knowledge.
courses means that all attendees will Dubai witnessed the exciting nership with Union Properties (UP), of, the economic slowdown. Earlier
be able to get involved in activities unveiling of the luxurious Coca- one of the UAE’s leading property in the month, RB Auctions in Jebel
while still adhering to cultural sensi- Cola Light Very Important Apart- developers. In cooperation with the Ali held its busiest ever sale at the
tivities,” said James Norbury, Execu- ment (V.I.A.) in June at Uptown ongoing Dubai Summer Surprises location. Almost 700 people from 50
tive Director of SMG. “Women are MotorCity. In line with the recently (DSS), the campaign makes its debut countries registered to bid in person
natural multi-taskers and the very launched Coca-Cola 2009 “Open during the region’s most famous, an- or online at the unreserved auction
nature of projects requires this skill. Happiness” campaign, Coca-Cola nually-awaited festival, bringing lim- of construction and other machin-
There is a need for more qualified Light introduces one lucky winner itless opportunities with elements ery.
women to work in projects as man- from the region to experience the of fashion, glamour and style. Around 2300 heavy equipment
MBC’s Style & Stars TV pro- items and trucks were sold over
gramme, airs every Thursday at 8pm three days, generating almost $46
UAE time during which Aline Watfa, million in gross auction proceeds,
Lebanese supermodel and popular with around two-thirds of the items
host guides fans through the V.I.A. finding homes with overseas bid-
each week and welcomes celebri- ders. A lot of the equipment went to
DUBAI REAL TIMES

ties, designers and personalities to buyers from the Middle East, though
the apartment. The contemporary- there were bidders on-site at the
chic V.I.A, decorated by popular in- auction from as far away as Singa-
terior designer Bara Zaher, will also pore, India and Africa.
become a home to one-of-a-kind “The auction went exceptionally
celebrity signed souvenirs and me- well,” said regional manager Steve
mentos. Barritt. “This was our first Dubai auc-
Entrants must be 21 years or tion in which we sold more equip-
32 above and a resident of the UAE, ment to buyers from outside the
You can win the Coca-Cola Light Very Important Apartment (V.I.A.) at KSA, Syria, Jordan, Qatar, Bahrain or United Arab Emirates than within.
UPTOWN MotorCity
DMCCA sets Jumeirah
Lakes Towers plan for
The Jumeirah Lakes Towers Zone
members
R
egistered member compa- istered members make use of the months of 2009 saw a total of 281
nies of Dubai Multi Com- exceptional advantages that Jumei- registrations being issued in JLT and
modities Centre (DMCC) rah Lakes Towers currently offers, DMCC. This included 85 DMCC core
can now be part of the fast- including low property and rental member company registrations,
growing community at Jumeirah rates. DMCCAuthority members can 142 registrations for JLT-based com-
Lakes Towers (JLT), with direct and now choose from a variety of prop- panies and 54 Residential Service
immediate access to all commodity- erty options at any of the 79 towers Company (RSC) registrations.
related facilities being offered by the within JLT, the first mixed-use free DMCCA is also working closely
Centre. According to an announce- zone in Dubai offering freehold with the sub-developers of the
ment from DMCC, all member property options. Core commod- Jumeirah Lake Towers project to
companies, including those await- ities-related businesses operating ensure that the towers and office fa-
ing membership approvals, will be within the JLT free zone are issued cilities are completed on schedule,
brought together to form a physi- DMCC licences while others (non- which will help companies finalise
cal commodities cluster within the commodity related) are issued JLT their relocation strategy.
200-acre JLT free zone, facilitating free zone licences. Commenting on the new initia-
optimum operational and admin- Ahmed Bin Sulayem, Executive tive, Sudhakar Tomar, Managing
istrative streamlining. This will also Chairman of DMCC, said: “This ini- Director, HAKAN AGRO DMCC, a
enable DMCC’s registered members tiative aims at long-term growth DMCCA member company, said:
to access a comprehensive com- for the commodities industry via “We consider this a wise move. Op-
modities knowledge base compris- the creation of a dedicated cluster. erating from the JLT Zone as a com-
ing all stakeholders of the trade, DMCC has taken great care in de- munity will streamline commodities
and will facilitate the development signing the business facilities here, trading activity in Dubai. The free
of mutually beneficial synergistic to offer our members the best in zone advantages and the state-of-
relationships across the entire value all areas. The move will facilitate the-art facilities are sure to provide a Almas Tower (Almas meaning ‘diamond’
chain of each commodity sector. higher integration of the commodi- competitive edge to companies.” in Arabic) is a landmark building,
According to the announcement, ties market, sharpen our members’ The JLT zone is Dubai’s most purpose built to cater to the specific
needs of the Precious Gems industry.
DMCC member companies, which competitive edge and strengthen ambitious business-cum-residential
DUBAI REAL TIMES

until now have been operating from Dubai’s status as the most active community. Close proximity to the the Dubai Gold and Commodities Ex-
locations across Dubai, will now be trading hub in the region.” Emirate’s new developments and change, Dubai Diamond Exchange,
required to relocate to the JLT free The move is also in response to projects adds to its potential to sup- Dubai Pearl Exchange, Dubai Tea
zone on completion of the first year the impressive rise in the number port the sustainable growth of the Trading Centre and Dubai Cotton
of operations. The renewal of licenc- of registrations at DMCC and JLT, commodities sector. Centre, plus a range of commodities
es for existing members currently following the progress in the free DMCC offers its members several backed financial investment tools
operating outside the free zone will zone’s development and the increas- unique benefits including access to including Shariah compliant hedge
be linked to their relocation to JLT. ing interest from investors to set up physical facilities like the Almas Gold funds and Dubai Gold Securities, the
This move is part of a strategic offices. Despite the current climate and Diamond vaults, market infra- region’s first Shariah-compliant gold 33
initiative from DMCC to help its reg- of economic downturn, the first five structure and trading platforms like security listed on NASDAQ Dubai .
DUBAI FOCUS

Region’s largest
medical waste
incinerator
Dr. Rashid Ahmed bin Fahad, Minister of Environment & Water; Eng. Hussain Nasser
Lootah, Director General of Dubai Municipality; Mr. Kenji Saito, Japanese Consul General
in Dubai; Mr. Essa Al Ghurair, Director, ETA Star Group and Mr. Syed M. Salahuddin,
Managing Director, ETA Star Group and senior officials of the Municipality in front of the
newly inaugurated medical waste treatment plant.

DM and Zenath Group team up to set up world’s second-of-its-kind plant

T
he UAE’s first and largest and senior officials of the Municipal- the quality of emissions were far
vertical medical incinerator ity were present on the occasion. better than expected - making it the
is also the world’s second- Mr. Lootah, said: “The new incin- second incinerator in the world that
of-its-kind. The project was erator represents the use of intel- meets the highest control of emis-
implemented by Dubai Municipal- ligent technology. Its design allows sion norms and purity standards.”
ity and Zenath Group, the recycling for high energy efficiency and envi- Mr. J.S.A. Bukhari, Executive Di-
and waste management arm of ETA ronment friendly emissions. There rector, Zenath Group, pointed out
Star Group. Located at Dubai Munic- has never been a better time to in- that “The total medical waste gen-
ipality’s waste treatment complex at troduce this treatment facility, given erated in Dubai is approximately six
Jebel Ali, the Dh 24 million-inciner- the steady increase in the number tonnes per day, but is expected to
ator has a total treatment capacity of healthcare facilities in Dubai,” he double with the upcoming facilities in a year, with 30 days set aside for
of 19.2 tonnes of medical waste per added. in Healthcare City. The current spare maintenance work and operational
day on a 24 hour continuous run. Lootah said that private compa- capacity could therefore be utilised shutdown. Unlike other waste, treat-
Dr. Rashid Ahmed bin Fahad, nies as well as individuals can bring to treat hazardous, non hazardous ment of medical waste has always
Minister of Environment & Water in- hazardous medical waste to this fa- industrial waste and municipal solid been a very daunting task as it con-
augurated the medical waste treat- cility. waste including sewage sludge.” tains infectious microbes that vary in
ment plant recently. Eng. Hussain Reinforcing the group’s commit- The ETA Star group has tied up calorific value. Plantec Corporation
Nasser Lootah, Director General of ment to environmental safety and with Mitsubishi Corporation and has devised the technology for treat-
Dubai Municipality, Mr. Kenji Saito, public health, Mr. Salahuddin, said: Plantec Corporation of Japan to ing such material through the use of
Japanese Consul General in Dubai, “Emissions captured from the new obtain the vertical incineration vertical incinerators. This technology
Mr. Essa Al Ghurair, Director, ETA Star medical waste incinerator with dou- technology, known for effective was first incorporated in Japan and
Group and Mr. Syed M. Salahuddin, ble bag filter have been put through treatment of infectious waste. The has been successfully used over the
Managing Director, ETA Star Group extensive tests. Results revealed that new incinerator will run for 330 days last 15 years.

Omniyat’s fit-out partner


O
mniyat Property Services towards providing our customers needs, and manage the complete “Utilising the combined pur-
(OPS), a division of Omniyat with a personal, seamless, end-to- process from original concept de- chasing power of both KPS and
Asset Management, have end property management solu- sign through to final completion, Omniyat, we are able to offer land-
appointed Kinnarps Project Solu- tion. Through a single point of con- providing practical design advice lords and tenants the best pos-
DUBAI REAL TIMES

tions (KPS), a leading commercial in- tact, Omniyat customers can now and adding value to the build-abili- sible rates in the market regardless
terior design and build company, to manage, design, fit-out and lease ty of the proposed solution. of unit size, and have tested this
partner in the complete turnkey fit their property. With tenants now Chris Watson, Managing Di- through a rigorous tender process
out of Omniyat’s three premier proj- demanding a fit out solution before rector of KPS noted: “KPS’ array of involving six leading commercial
ects; One Business Bay, Bayswater committing to a lease, I am pleased fit-out solutions include; superior fit out companies operating in
and the Square - all set to be com- to announce that we appointed KPS quality materials in base building Dubai,” adds Budd.
pleted this year. to provide our clients with tailored, works, partitions and custom- Financing options for fit out are
Lloyd Budd, Commercial Director turnkey fit-out solutions.” made furniture, fully integrated IT also available through Indepen-
34 of Omniyat Asset Management, ex- KPS will create full packages & audio/visual solutions, security dent Finance, one of Omniyat’s
plained: “This is another milestone unique to the client’s brief and and phone systems.” partners.
INFRASTRUCTURE

Economic slowdown
temporarily restrains
commodities growth
T
he market for water and countries have identified municipal successfully navigate tough market Arab Emirates alone is expecting to
wastewater treatment equip- wastewater treatment as the priority conditions. have 80 million square feet of office
ment in Gulf Cooperation area for multiple reasons including District cooling is fast emerging space by 2010, widening the scope
Council (GCC) countries ex- the achievement of the Millennium as the most viable cooling solu- for district cooling companies.
perienced rapid growth during 2008 Development Goals. tion in the Middle East, where the District cooling production re-
driven by huge investments in infra- Some large private real estate de- temperature frequently exceeds 45 quires copious water, which, like
structure, real estate, petrochemicals, velopers of lifestyle townships, lux- degree Celsius and air conditioning electricity, is limited and therefore,
oil and gas and other sectors. How- ury villas, and shoreline apartments requirements consume 70 per cent expensive in the GCC. Currently,
ever, the sub-prime mortgage crisis are utilising advanced wastewater of the power during peak electric- district cooling plants use potable
that hit western economies changed treatment technologies to assist in ity demand. As power shortage water, but the search is on for a
the business climate and there was a maintaining a hygienic and odour- is rampant in this region, govern- technology that will allow them to
considerable decline in demand for free environment. Wastewater ments are turning to district cooling use non-desalinated seawater. Even
most commodities. Crude oil prices treatment and reuse is likely to see to cool buildings, as it is a cheaper though a few plants are already us-
plummeted to about $50 per barrel widespread adoption across GCC and greener alternative to air con- ing seawater, the corrosion-resistant
from a historic high of $145 per bar- countries, representing an expand- ditioning. This solution can not only equipment needed will increase
rel, making investors wary of funding ing market for advanced technolo- mitigate the power crisis in the Gulf their equipment cost.
new projects. gies. On the other hand, desalina- Cooperation Council (GCC) coun- The current credit crunch will
Governments in GCC countries tion has been the prime driver for tries but also help reduce carbon make it even more challenging for
have exhibited strong political will to the water segment. footprints through increased energy companies to acquire the systems
continue investing in important in- “The market is fraught with chal- efficiency and lower CO2 emissions. required to deal with this issue. As
frastructure projects. Environmental lenges in spite of its immense op- New analysis from Frost & Sullivan district cooling is a highly capital-
and health hazards related to the dis- portunities," says Frost & Sullivan (http://www.buildingtechnologies. intensive market, huge investments
posal of untreated effluents, marine Sr. Research Analyst Vivek Gautam. frost.com), finds that the market are required to meet the additional
pollution, and deteriorating ground "The complex business environ- earned revenues of $580.0 million capacity required.
water quality are some of the issues ment, slow decision making process, in 2008 and estimates this to reach "Market participants can blunt
that are keeping market prospects and customer preference for low $2.00 billion in 2013 at a compound the effect of the reduced capital by
alive. Though these forces have been cost solutions regardless of the per- annual growth rate of 28 per cent. concentrating more on small proj-
overshadowed by short-term con- formance makes it difficult to pen- With greater involvement of ects that require less time in com-
cerns, they are expected to positively etrate the market." the government, the market is ex- missioning and that can guarantee
impact market dynamics from 2009 Further, the mass market is high- pected to become more organised, quick returns," remarks Darwin
to 2013. ly price sensitive, triggering intense populated and competitive. Kishore Selvaraj Selvaraj, Frost & Sul-
The extent to which markets competition in lower technology Multinational companies will be livan Research Analyst. "When big
across GCC member nations will be products. Profit margins for such attracted to this market due to the projects are split into smaller units,
DUBAI REAL TIMES

affected by the current economic products are also under pressure. prospects presented by the investor- the limited capital will be sufficient
slump largely depends on factors Owing to the lack of technical com- friendly laws, improved standards of to start the project."
that include government depen- petence, cost considerations dictate living and high disposable income, Frost & Sullivan leverages over
dence on oil revenues, dependence buyers' decisions. Component sup- which has set off a retail boom in 45 years of experience in partner-
of economic growth on external pliers, in particular, are facing hyper the region. With the GCC becom- ing with Global 1000 companies,
debt, and ability to absorb the shock competition due to the availability ing home to the biggest shopping emerging businesses and the in-
based on the inherent economic re- of low-costproducts from supplier malls in the world, there is a dis- vestment community from more
silience. The core municipal sector is nations such as India and China. The tinct need for district cooling in not than 35 offices on six continents.
expected to cushion the impact of onus is on technology providers to only the residential sector, but also For more details visit http://www. 35
this slowdown. Governments in GCC roll out cost-effective products to the commercial sector. The United frost.com
COMMUNITY

The meaning of
Corporate Social Responsibility
V
ictory Heights, the luxury UAE purchased the skid steer loader tems, and utilised Green Building
golfing residential devel- for US$30,000. programmes in three major sites,
opment in Dubai Sports "I'm genuinely lost for words; this one of which will comprise 73 per
City, held a special com- has been beyond what we would cent green space.
munity tree planting initiative to normally expect," said Sally Prosser, Under the Marketplace category,
celebrate World Environment Day PR Manager at Foresight. "From the DPG established 'Accountability' as
and Children’s Day which saw moment we heard the good news one of its Brand Values, trained over
young participants plant trees and right through until the excitement 22 per cent of its employees on
plants in different parts of the de- of the auction, this was a unique brokerage laws and conducted 36
velopment, highlighting the impor- and wonderful experience. We try inspections and audits to suppliers.
tance of responsibly maintaining to fund one research project per In the People segment, DPG
the environment. The children also year and this will certainly allow achieved zero fatal accidents for
enjoyed a number of games and us to achieve this year's objective. employees, conducted an appraisal
competitions in Estella Park set in In addition, financial resources are process for 100 per cent of its staff,
Victory Heights. always required to assist with our trained over 834 of them and re-
Victory Heights has fast be- ongoing work in the community, ceived 495 suggestions from em-
come popular for the way its lux- assisting those who have lost their rbauction.com, including the next ployees, of which nearly 10 per cent
ury villas are taking shape among sight. Mobility training would be a one at its Dubai site on August 10 dealt with CR issues.
the beautiful landscape, walkways prime example of this." to 12, 2009. DLA Piper's commitment to
and the world-class designed golf In addition to the charity skid Dubai Properties Group (DPG) sustainability in the region was
course. Luxury villas and townhous- steer loader, the company sold al- has announced the release of its recognised at an award ceremony,
es here come in a choice of classical inaugural Corporate Responsibil- where the leading international le-
European, Spanish Andalusian, and ity Report, the first by a real estate gal practice was given the Sustain-
Mediterranean architectural styles, company in the Middle East to be able Initiative Award for its efforts to
with custom finishes and a variety endorsed by the Amsterdam-based reduce its carbon footprint across
of options. Offering peace of mind, Global Reporting Initiative (GRI). It each of its offices in the Middle East.
Victory Heights has appointed Bu- considers it not only a matter of phi- The company has a global commit-
reau Veritas, a highly respected in- lanthropy, but an ethical obligation ment to sustainability across all its
ternational firm, to provide a qual- to reduce the negative impact the offices which includes programmes
ity accreditation monitoring service company's operations might po- designed to reduce business travel
from design to delivery. tentially have on the environment and offset emissions, purchase
The record-breaking industrial and increase the positive influence items manufactured from sustain-
machinery auction conducted by on the market, communities and able sources; and recycle plastic,
Ritchie Bros. Auctioneers in Dubai people. paper, glass and cartridges. In ad-
recently had an unusual beneficia- Under the Society segment, dition, DLA Piper is the first interna-
DUBAI REAL TIMES

ry: Foresight, a Dubai-based organi- nearly 150 Dubai Properties Group tional legal practice to achieve cer-
sation that raises funds to help find Mohammed Binbrek, Group CEO, employees volunteered to donate tification in the globally recognised
a cure for blindness caused by he- Dubai Properties Group blood while the group itself spent environmental standard ISO 14001
reditary eye disease and also helps over Dh7million in employee medi- across all its offices worldwide.
improve the lives of people with vi- most 2,300 heavy equipment items cal insurance during the year. The Sustainable Initiative Award
sual impairment. Southwest Middle and trucks for more than 220 sell- Under Environment, employees win follows a week-long internal
East LLC donated the full proceeds ers, generating almost $46 million recycled over 28 tonnes of office campaign – EnergySMART – to re-
from the sale of an unused Cat skid in gross auction proceeds. There waste, while DPG deployed environ- duce energy output in all regional
36 steer loader at the auction to Fore- are 73 unreserved Ritchie Bros. auc- mental friendly substances (such as offices at DLA Piper. The campaign
sight. An on-site bidder from the tions on the calendar at http://www. Inergen) for fire extinguishing sys- concluded in early May.
WELL DONE

Dubai partner named in


Who’s Who coveted legal list
D
LA Piper is the number one firm worldwide for real estate legal
expertise, according to the sixth edition of The International Who’s • Research for each practice area publication is conducted
Who of Real Estate Lawyers, published in June 2009. It was the through conversations with private practice lawyers of repute
most highly nominated firm in the research for the publication in the practice area in question and in related fields, as well as
with more nominations from clients and peers than any other worldwide. with general counsel
Twenty-two practitioners are featured from 13 of the firm’s offices across the • Subsequent telephone and face-to-face interviews are
globe including the UAE, a figure unrivalled by any other firm. conducted internationally to permit the refining of the listing
DLA Piper is the current holder of Who’s Who Legal’s Real Estate Law Firm to a selection of between 100 and 600 lawyers who, by general
of the Year, having won the award every year since its inception in 2006. agreement, are considered the pre-eminent lawyers in the
field
• It is impossible to buy entry into this publication, only lawyers
Tom O’Grady, is a partner at DLA who have met independent international research criteria are
Piper. He is regularly asked by listed
the media to comment on issues
• The International Who’s Who of Real Estate Lawyers 2009 acts
arising from changes in legislation
as a reference source for purchasers of legal services seeking to
in the real estate sector. He has
made speeches at the Hawksmere corroborate the reputations of expert lawyers recommended
Conference on ‘Large Scale Mixed to them by another party
Use Regeneration Schemes’ and • Who’s Who Legal aims to reduce the short-term costs incurred
has articles published on mixed use in finding a lawyer, but more significantly, to minimise the
developments and establishing unit transactional expense and risk of receiving poor counsel
trusts. His professional qualification
is: Solicitor of the Supreme Court of
England and Wales.
research. The unparalleled levels of positive feedback we received for DLA
Tom O’Grady
Piper from numerous countries worldwide testifies to its continued excel-
The book is a result of six months of independent research incorporating lence confirms it as the leading firm in this field.”
feedback from lawyers and in-house counsel, and covers 470 lawyers in 39 In 2008, Who’s Who Legal was named the Strategic Research Partner of
separate jurisdictions. the American Bar Association Section of International Law, in addition to its
Editor-in-chief Callum Campbell said, “It is impossible to buy entry into position as Official Research Partner of the International Bar Association. In
this publication, only those lawyers who receive sufficient nominations 2006, Who’s Who Legal’s parent company Law Business Research was recog-
from their peers are included. This book represents a truly global, highly nised by The Queen’s Award for Enterprise in the area of international trade.
qualitative survey of only the best real estate lawyers, based on exhaustive These awards are the most prestigious a British company can receive.

Special commendation by legal awards for UAE work

I
nternational law firm Pinsent and China. arbitration, especially in the Middle outsourcing and technology law
DUBAI REAL TIMES

Masons has been named Global One of those given particular East. The company’s construction services. With over 30 qualified le-
Construction Law Firm of the commendation was Michelle Nel- group is renowned worldwide for gal staff including 20 construction
Year 2009 in the Who’s Who Legal son, a partner of Pinsent Masons’ high profile work, particularly across specialists, it has the largest single
Awards. This is the third time the Dubai office. Nelson has substantial the GCC. The UAE team is ranked group of construction lawyers in
firm has been recognised in this international experience and has number one for construction law in the Gulf. From its offices in Dubai,
way, having also won the award in advised on a variety of projects re- Legal 500. Pinsent Masons has well estab-
2008 and 2006. Twelve of the firm's lating to roads, hotels, airports, pro- Pinsent Masons has had an lished links with local law firms in
partners are commended in the cess and power plants, commercial established presence in the Gulf neighbouring countries including
publication, spread over five differ- and residential premises. She has since 2004 and offers construc- Bahrain, Jordan, Kuwait, Qatar, Syria, 37
ent jurisdictions, including the UAE particular expertise in international tion, projects, real estate, corporate, Yemen and Saudi Arabia.
WELL DONE

Global architecture award

…………………………..

Pix captions:

Pic 1 –
Pic 2 –

D
ubai Municipality won the World Architecture Award at its
fourth cycle of 2009 in recognition for the restoration project
“This was one of the best examples of
on the House of Scholar Mohammad Sharif in the Bastakiya. The the few remaining houses in Bastakiya
Municipality won the award in the category of the Best Project and surrounding areas with rich traditional
DUBAI REAL TIMES

that won the appreciation of the Honorary Committee.


Eng. Rashad Bukhash, Director of Architectural Heritage Department architecture and engineering, which has
said, "This was one of the best examples of the few remaining houses in become one of the most important symbols
Bastakiya and surrounding areas with rich traditional architecture and en-
of local architecture in the UAE”
gineering, which has become one of the most important symbols of local
architecture in the UAE.
The Architectural Heritage Department had restored the house in 1997 portunity for promotion of local practices recognised internationally and to
to make the building its office. It is considered one of the main groups of provide a directory of contemporary architectural practices in all countries,
38 architectural buildings in the world with electronic data for the reference as well as the opportunity to get acquainted with the latest theories in ar-
of architects from all countries of the world. The main task was to give op- chitecture.
ENVIRONMENT

Coral relocation The coral remained


suspended in the water
throughout the relocation
process, minimising stress
and damage

T
he proof of the pudding is construction activities in the area transplanted corals are ‘broadcast tory Department, some significant
in the eating (old English surrounding Dubai Dry Docks. To spawners’, it is likely that they will tests on green materials and ma-
saying) and Nakheel has minimise the damage from tradi- seed the surrounding breakwater terials from recycling old concrete
certainly proved that it has tional removal methods – which through their reproductive activities, were exhibited in the symposium.
a warm heart by quietly saving 5,500 typically include the use of crow- resulting in the development of coral These materials were intentionally
tonnes of coral having devising plans bars, underwater drills and cranes – communities on nearby rocky struc- manufactured to mitigate power
to successfully move it from one lo- a new technique was developed by tures. Coral is a vital facet of Dubai’s consumption, protect natural mate-
cation to another. And the plan has the environmental team at Nakheel. ecosystem. It is an important link in rials, reduce the operational costs,
worked – as proved when one year A bolt was drilled into each rock and the food chain and is necessary to strengthen the building perfor-
after 1,129 five-tonne coral-covered attached to a sling used to hoist the maintain levels of biodiversity. mance and create a healthy envi-
rocks were relocated from Dubai rocks to a depth of three metres Nakheel also revealed that de- ronment for work and residence. “A
Dry Docks (DDD) to The World, with below the water surface for attach- velopment of The World islands will quality mark system will be applied
93 per cent undamaged, the coral ment to a transport barge. The cor- be supported by an existing port in on the green building products” she
eco system is now seen to be thriv- als remained suspended in the water the Mina Rashid area, after dropping pointed out.
ing in its new location. throughout the relocation process, plans to build a port inside Dubai The advanced technical facilities
Academics and marine life ex- minimising stress and damage. Dry Docks. in the lab will qualify it to perform
perts had a hand in advising the The coral translocation area has Dubai Municipality- Dubai Cen- as the first lab for green materials in
master developer on relocation attracted a number of species of tral Lab Department has recently the civic body and Dubai city. The
methods. With a method which reef fishes that are less common organized a scientific symposium laboratory will also conduct tests on
had never before been tried any- elsewhere in that area, including a on using mortar in green buildings. site in addition to a lot of other tests
where in the world before, and over number of commercially important According to Eng. Hawa Abdullah such as physical, mechanical and
a period of seven weeks between species. In addition, as many of the Bastaki, Director of Dubai Labora- thermal tests.
April and June 2008, rocks were
relocated from Dubai Dry Docks
to The World breakwaters, open-
ing up a large area of DDD to allow
for future development while also
maintaining the largest coral reef
ever found in these waters. The
rocks, which cover an area of 6,560
m2 (about the size of a football
pitch) were, and now continue to
be, home to 18 species of coral and
DUBAI REAL TIMES

more than 30 species of fish plus


various sponges, sea-squirts and ur-
chins. The successful translocation
will provide a boost to The World’s
potential as a tourist destination by
opening up a new area of the Gulf
to scuba diving and snorkelling.
A decision was taken to move
the coral based on potential en- 39
vironmental impacts of proposed
ENVIRONMENT

Waste
summit Zero waste
M
ay saw a bevy of pro- rate of increase exceeds 20 per cent In an exclusive interview for the Middle East
fessionals in the waste
management and
per annum; during the same period
the amount of construction waste
Waste Summit 2009, Andrew Quinn, Senior
recycling industry generated in the emirate had in- Waste Consultant, GHD talks about Zero
meeting to discuss waste disposal creased to approximately 30 per
and how it is affected by the current cent. Waste Inaccuracies and Realities.
global economical challenges. Eng. Dubai Municipality found sus-
Hussain Nasser Lootah, Director Gen- tainable solutions through strategic MEWS: What initiatives for sus-
eral of Dubai Municipality opened partnerships with the private sector, tainable waste management that
the Middle East Waste Summit 2009 the implementation of several initia- have been implemented in Aus-
which discussed various issues re- tives and projects such as recycling tralia would you recommend to
lated to waste disposal methods, construction waste, household the Middle East?
sound management and recycling. waste, tyres and a plan to recycle AQ: The pace of development has
In his opening speech Lootah said used oil. been very fast in the Middle East and
that the world today is experiencing “Dubai Municipality has started it has perhaps been easy to overlook
a range of environmental issues that work on three important projects details like sustainable waste man-
have a direct impact on human life. i.e. a general strategy framework to agement in the rush to get the next
A high proportion of waste gener- reduce waste, an automated system project started. Middle East govern-
ated in developing countries has for the collection of compressed ments, however, should not let the
helped global warming-an increase waste, and waste from the transfer opportunity pass to establish sustain-
in levels of air pollution and pollu- of energy in the emirate. This am- able waste management initiatives waste to produce compost and
tion of the ocean. He pointed out bitious project will contribute to early on, whether it is in the develop- sometimes energy from gas. A facil-
that Dubai, which has seen an ac- the Municipality’s proposal to turn ment of new buildings, communities ity of this type is under construction
celeration of urban growth in recent waste into energy to achieve sev- or cities. A little time and effort taken in Qatar. I see this kind of approach
years, has a process of sustainable eral objectives, including the reduc- now will pay off in the long run. as having a much wider application
management of waste issues. tion of emission levels of methane How some Australian cities have in the Middle East.
During the year 2000 approxi- gas from landfills, reduce reliance coped with the challenge of being
mately 3,000 tone per day of waste on landfills and the health of the situated in dry desert environments MEWS: Are ‘zero waste’ strate-
arrived at the municipal garbage traditional method of disposal of can be an example to the Middle gies viable in the Middle East with
dump, in 2008, this had reached household waste” concluded Eng. East. Perth, a city of 1.5 million people the current status of technology
DUBAI REAL TIMES

11,000 tone per day and the annual Lootah. on the south-west coast of Australia, available in the region?
is surrounded by desert. The sandy AQ: Attempting to achieve a zero
soil and the use of groundwater for waste target is an admirable aim
domestic purposes make land filling but in reality there is no one system
an unsuitable method of putrescible that produces absolutely no waste.
waste disposal. Instead, local govern- The best waste processing facilities
ment groups in Perth have commis- still produce some residual product
sioned and are commissioning al- even if it is only small amounts of in-
40 ternative waste technology facilities ert material.
which process municipal and other In my opinion, the best way
for countries in the Middle East to lenges facing clean production in the Middle East compare inter- waste issues.
achieve maximum recovery will be the Middle East? nationally for investing in waste
through a combination of traditional AQ: Sustainable waste management management? MEWS: What is the most important
and technological solutions. By tradi- and cleaner production are intimate- AQ: In my opinion, the Middle point you made at the MEWS 09?
tional, I mean the source separation ly linked. I see the biggest challenge East is ripe for investment in waste AQ: Governments, developers and
of easily identifiable materials such as as raising the priority of both in the management. Waste generation is the community should not ignore
cardboard, plastics and possibly food eyes of government, the community a function of population and de- waste management and expect
for separate processing and recycling. and business. Both obviously benefit velopment and the United Arab that waste will take care of itself.
These activities have already been go- the environment, but they also pro- Emirates (UAE) has led the way in Careful, insightful and forward-
ing on for some time. By technological vide for healthier and safer places these areas in the last decade or looking regulation and assistance is
solutions, I mean using modern pro- for people to live. Cleaner produc- so. We are seeing signs of a matur- required to provide an environment
cessing infrastructure, equipment and tion also often means more efficient ing in the UAE waste industry. For in which the commercial sector and
available expertise to recover more production creating the potential to example, Thiess Services’ construc- their customers, governments and
difficult to separate materials. save money. tion of a building and demolition the community can achieve their
waste facility in the UAE is a clear goals while effectively and sustain-
MEWS: What are the biggest chal- MEWS: How does the market in shift towards tackling more specific ably managing their waste.

Industrial and hazardous waste management


Middle East Waste Summit 2009 talked exclusively to Daniel M. Cheng, Managing Director,
Dunwell Enviro-Tech (Holdings) Ltd about Industrial & Hazardous Waste Management.
MEWS: What are your main proj- dards, availability of local technical industry? sence of chemical (acids) used would
ects internationally? expertise, the market expectation on DMC: Dunwell has been involved not cause further damage to the water
DMC: We have been proactively seek- recycled oil products, market sizes, in the oil recycling business since and soil.
ing partners around the world to es- number of recyclers, etc. 1993, when we acquired and turned VMAT is a modular expandable
tablish a low temperature (85 deg C), In the Middle East, the acid clay around a bankrupted Australian oil process to allow users to start with a
low pressure (50 psi) used lubricant process has been adopted for years. re-refinery operation (with a loss of smaller volume (5000 m3/year) and ex-
recycling operation using our propri- Due to the highly polluted nature US$ 10 million) in Hong Kong. For pand to 20,000 m3/year when they are
etary advanced vibrating membrane of the process, most of the govern- the last 16 years, we have been build- familiar with the new business models
technology – VMAT. ments around the world have re- ing our engineering capability and and technology. Users can even setup
We have already set up this oil re- stricted this application after they investing in R&D for coming up with the VMAT systems in various locations
cycling venture in five cities and more have found the acid sludge severely a better process for the used oil recy- across the country, to minimise the
will be installed in four countries in the polluted underground water and cling industry. transportation and enhance flexible
next 9 to 12 months. soil. This is going to be an outgoing We also work with oil fields in Chi- operation.
VMAT recycles used lubricants such technology. na to provide advanced technology
as engine oil, hydraulic oil, gear oil, Some recyclers are using simple for process improvement and water MEWS: How does the market in the
etc. into green lubricants again. Un- dewatering and centrifuge tech- treatment. Middle East compare internation-
like other processes that recycle used niques to produce fuel oil, which is ally for investing in waste oil recy-
lubricants into fuel oil, or create a lot of low value to the Middle East mar- MEWS: How can Dunwell Enviro- cling?
of secondary pollution (acid sludge), ket that has abundant supply of fuel Tech positively impact the indus- DMC: Since VMAT received the IChemE
VMAT has become a popular option products. trial and hazardous waste con- Grand Environment Award from Lon-
being enquired from international re- Some recyclers may be using high cerns of all stakeholders including don in 2006, we have been approached
cyclers and even governments. temperature distillation process, but citizens, industry and govern- by almost 100 Middle East companies
this process is too energy consuming ments? How can the company help and even government appointed con-
MEWS: What are the best technolo- and requires extensive engineering reduce pollution in the UAE? sultants regarding the feasibility of this
gies for waste oil recycling? What support. DMC: Most governments nowadays project.
processes are currently being im- The Middle East market is steering are seeking ways to minimise the Now with a total of four interna-
plemented in the Middle East and towards the directions of adopting a impact of oil related pollution in the tional awards received by VMAT, and
DUBAI REAL TIMES

are they adequate? clean (non polluting) technology that areas of air, water, soil and CO2 emis- actual installations around different
DMC: We have to define ‘the best’. can recycle used oil into finish lube sion. VMAT is recycling used oil into continents, even more oil recyclers
There are many different options of products, with a low energy level reusable green lube products instead have seriously visited our industrial op-
technologies ranging from the mega and reasonable level of engineering of heavy fuel which will emit much erations and are negotiating potential
scale investment hydro-finishing, to requirement. Our VMAT fits into this CO2 and contribute to the global partnership for setting up VMAT in GCC
the cheapest but very polluting acid context with a fast payback (less than warming. countries.
clay treatment process used in the two years) scenario. The low temperature (85C) pro- GCC is a big market and we are open
industry. Before selecting any of the cess does not crack the hydro-carbon to work with industry players and wel-
process, we have to understand lo- MEWS: When does Dunwell Envi- structure of used oil and would not come referral agents to help us expand 41
cal government environmental stan- ro-Tech work with the oil and gas cause air pollution problems. The ab- in this promising oil recycling venture.
DEVELOPERS LIST

List of approved developers


220 A S A Developers Ltd 817 Almasah Middle East Investment Limited

594 A.C.Holdings Limited 411 Alosaimi Real Estate Investments Co L.L.C

395 A.S.A Developers Limited 299 Alshafar Development (L.L.C)

514 Aa Global Limited 86 Altajir Real Estate L.L.C

16 Aaa Auctions Organizing & Management 448 Amesco Tower Jlt

49 Aakar Developers Ltd 468 Anil Adinath Bastawade

255 Ab Properties Limited 221 Anis Holdings Limited

568 Abdulrazzq Ali Almadani 183 Anis Property Investments Ltd

646 Abdulsalam Mohd Alrafi Real Estate Development Group (L.L.C) 132 Antonia Resources Ltd

670 Abwab Real Estate Limited Co Llc 309 Arabia Group Development Limited

46 Abyaar Real Estate Development 310 Arabia Group Investment Limited

31 Aci Real Estate Llc 378 Arabian Investments Limited

414 Acw Holding Ltd 239 Aristocrat Star Investment L.L.C

720 Adel Mohammad Saleh Ali Naqi Al Zarooni 525 Arra Limted

679 Ag - Optimo Limited 572 Arthur Fitz William (Plantation)


Ahmad Abdulla Ahmad & Ayesha Ahmad Abdulla & Amir Badkoubeh & Armin
506 279 Aryene Plus Property Developers Limited
Niasar
268 Ahmed Abdul Rahim Alattar Properties 532 Aryene Property Developers Limited

328 Al Duaa Holdings Fzc 696 Asadollah Hosseinali Kikha

199 Al Jawi Investment L.L.C 597 Ashai Tower Jvs Limited

4 Al Manal Development Fzco 36 Aswan Developers Inc

784 Al Mazaya Holding Company 23 Aswan Investments Limited

289 Al Murjan Real Estate ( Fzc ) 830 Aurora Limited

18 Al Rashid Investments 392 Avanti Holding Limited

14 Al Sayyah & Sons Investments(L.L.C) 131 Avetona Global Ltd

194 Al Shafar General Contracting Co Llc 595 Avon Developers&investments Limited

812 Al Tafany Properties Limited 317 Axon Development (Fzc)

290 Al Tamimi Investments Limited 235 Azizi Invesments (L.L.C)

799 Al Zahra Properties 391 B & M Fzco


DUBAI REAL TIMES

704 Albenaa Real Estate Investment-pjsc 786 Baiti Properties Development Llc

479 Alduaa Residence Limited 308 Bando Engineering & Construction Co Ltd

3 Alfajer Properties L L C 281 Bangash Builders &developers Limited

78 Alfaraa Properties 584 Bangash Developments Limited

304 Alfattan Properties (L.L.C) 793 Bangash Investments Limited

463 Alghanem Real Estate Llc 472 Baraq Holdings Limited


42
79 Almadar Investment (L.L.C) 647 Bassam Said Freiha
141 Bavaria Gulf Sandoval Ltd 260 Damac Properties Co.(L L C)

148 Bay Central Developments Limited 42 Dana Property Development (L.L.C)

360 Bay View Investments Limited 624 Das Real Estate

134 Beliza Resources Limited 179 Define Properties L Lc-fzc

838 Bella Vida Limited 805 Define Properties Plot 8 Limited

413 Beney Investments Limited 318 Desert Dream Investments Llc

829 Blue Sky And Nawaab Holdings Limited 313 Desert Home Fzco

320 Bonnington Land Limited 158 Dheeraj & East Coast L L C

374 Bonyan Emirates Properties 6 Diamond Developers Co.Limited

257 Bonyan International Investment Group L.L.C 60 Diamond Arch Limited

795 Bosphorus Investments Limited 695 Diamond Properties Limited

296 Brighton Holdings Limited 864 District Investment & Development (L.L.C)

323 Brookes Corporation 741 Dja414 Investment Limited

828 Bucephalus Holding Limited 671 Dmcc Business Park Dmcc

449 Bukhatir International Realty Development & Investment Llc 874 Dream Estate Limited

357 Burj Alalam Holdings Limited 45 Dsec Corporation F.Z.C -rak

263 Burj Aldua'a Limited 153 Dubai Multi Commodities Center

258 Bux Holdings Limited 73 Dubai Guernsey Property Investment Limited

401 Byblos Real Estate Broker 851 Dubai Holding

731 C7d1 Limited 862 Dubai Industrial City

298 Capital Trust Gulf Limited 867 Dubai Investment Park Llc

40 Cayan Real Estate Investment & Development (L.L.C) 278 Dubai Investment Real Estate

130 Cenita Global Ltd 854 Dubai Land ( L.L.C )

337 Chapal World Llc 35 Dubai Life Style City L.L.C

816 Chess Tower Limited 858 Dubai Maritime City

723 City-d Investments Limited 850 Dubai Properties ( L.L.C )

842 Cl International Development Limited 160 Dubai Property Ring Ltd

358 Cliff Dwellings Enterprises Ltd 344 Dubai Silicon Oasis Authority

431 Comfort Homes Ltd 200 Dubai Sports City ( L.L.C )

312 Condor Properties Limited 834 Dubai World Trade Center (L.L.C)

794 Cornica Tradings Assets Limited 307 Dujon Properties Ltd

356 Credo Investments Fze 340 Dunes Property Investments Ltd

801 Credo Investments Fze 417 Dunes Village Real Estate


DUBAI REAL TIMES

123 Crown Holding Limited 742 Durar Al Emarat Properties Llc

211 Crown One Holding Ltd 288 Earth Developers (L.L.C)

733 Crown Three Holding Ltd 719 Edmonton Admire Properties Limited

821 Crown Two Holding Limited 540 Elan Investment Limited

588 D10 Awf Investment Limited 555 Emaar Properties Pjsc

192 Damac Development L L C 398 Emirates Sunland D1 Limited 43


399 Emirates Sunland Pv Dubai Limited 64 Gulf Developers Fzc

860 Es Investments Limited 285 Gulf General Investments Co. (P.S.C)

231 Esca Properties Llc 135 Gulf Investments (Fzc)

650 Escan Real Estate Pjs 755 Gulf Line International Ltd

218 Essa Bin Nasser Bin Abdullatif Al Serkal 305 Gulf Shores Inc

26 Eta Star Property Developers (L.L.C) 498 Gulf Technical Construction Co (L.L.C)

662 Ever Green Signature Investment Limited 82 Gulf Towers Investment Llc

76 Ever Shine Dubai (Bvi) 324 Halcon Real Estates Development (L.L.C)

250 Fabson Import Export Limited 809 Hampstead & Mayfair Development Limited

536 Fahed Hamad Saif Bin Fahad And Abdulla Ali Obaid 394 Hamza Namera International Fzc

688 Fahiman Bhatish & Nania Nagpaul 768 Heman R.E.D. & General Trading Limited

314 Fakhruddin Properties Limited 53 Her Limited

7 Falcon City Of Wonders (L.L.C) 17 High Rise Properties(L.L.C)

48 First Homes Ltd O.F 58 Hircon International (L.L.C)

541 Flamingo Investments Limited 386 Hma Exec Limited

95 Fortisplus Holdings Limited 243 Horizon Infrastructure F Z C

406 Fortune Avenue Investment Limited 343 Hydra Properties (L.L.C)

407 Fortune Bay Investment Limited 703 I.R.Investments Holding Company Limited

466 Fortune Dxb Ltd 552 Ihab Sayed Mohamed Elwishy

556 Fortune Homes Investment Limited 372 Ilyas & Mustafa Galadari For Investment & Development Managment (L.L.C)

208 Fortune Investment Group (L.L.C) 865 Indigo Valley Inc Limited

405 Fortune Serene Limited 815 Infinity Emirates Investments Llc

234 Freej Development Limited 609 Innovvarc Holding (L.L.C)

499 G&g Partners Limited 471 International Merchnant House Llc

574 German Holding Group( L.L.C) 306 Investments House Co.(L.L.C)

577 Gholamreza Abadi & Shahrokh Nariman&yadollah Nariman&behnam Keivan 825 Ishraqah For Development Limited

146 Global Group Holdings Limited 77 Ishrat Ali

190 Global Group International Limited 470 Jab Developments Inc

510 Global King Technologies Ltd 511 Jab Mosaistone Developments Inc

151 Global Procurment Fzc 10 Jad23 Investment Limited

253 Gold Vision Development Ltd 9 Jad24 Investment Limited

248 Golden Beach Properties Limited 11 Jad25 Investment Limited

841 Golden Land Development & Investment Limited 475 Jalal Ebrahimi
DUBAI REAL TIMES

270 Gpd Investments L.L.C 496 Jamal Mohammed Alhassan & Bachar Bakri Almradi

271 Gpd Investments Spv One Limited 440 Jasmine Garden Limited

845 Grace Property Developer Limited 108 Jumeirah Golf Estates (L.L.C)

24 Green Desert Ventures Inc 381 Jupiter Estates Limited

284 Green Emirates Properties- Co.Psc 5 K M Properties (L.L.C)

44 51 Grm Limited 12 Kaizen One Investment Limited (Offshore)


238 Kamil Khan 859 Meraas Holding (L.L.C)

831 Kd Paca 59 Limited 236 Merwess Abdulaziz

722 Kensington Global Investments Inc 866 Meydan (L.L.C)

242 Khalifa Majid Alabbar 129 Mirgana Resources Ltd

32 Khuyool Investment L.L.C 286 Mismak Properties Co (L.L.C)

663 Kleindienst Properties 41 Mizin (L.L.C)

500 La Ploma Limited 447 Mohammad Aqil Ali & Ahmad Ali Alzarooni

181 Limitless ( L L C ) 379 Mohd. Hussain & Bros

71 Links Properties Investment Limited 458 Mohd. Hussain & Bros

489 Liquid Assets Limited 519 Mre Global Investment Group Fzc

303 Lokhandwala Builders International Ltd 52 Mrg Ltd

37 Lootah Real Estate Development Est 402 Msaab Mohammed Alzwaid & Hamad Ali Aldubikhi & Saleh Ibrahim Alqasir

876 Lootah Real Estate Investment 240 Muhammad Nabeel Joz

429 Lux Real Estate 716 Muhammad Nasir Muhammad Iqbal & Safia Nasir

743 Luxor Investment Limited 486 Nadeem Mohammed Zafar

796 Lyra International Limited 100 Nakheel Co.( L.L.C )

660 M E Development Llc 861 Nauman Abid Properties Limited

520 Maadhad Saleh Mezar Alromaithi 59 Ncc Urban Infrastructure

38 Madain Properties Co. (Mada'in) (P.J.S.C) 857 Neel Devcons Limited

280 Madison Holding Fzco 840 Neel Properties Limited

21 Mag Group Fze 319 Neo Solutions Limited

548 Mahdi Amrollahi (Partner) Antar Marzooq (Owner) 226 Neptune Properties Investment Ltd

254 Mahmoud Reza Azizi 355 New World Investment Ltd

732 Maison Limited 128 Oakgrove Global Ltd

44 Makaseb Properties 311 Oasis Group Ventures Ltd

513 Mammut Group Fzco 388 Olive Ponit Limited

282 Mandate International Limited 393 Omniyat Properties Development Corporation

164 Manhattan Real Estate Holdings F.Z.C 689 Optimo Arabia Limited

542 Marina Arcade Real Estate Llc 709 Opulence Holdings Limited

352 Marina Breeze Limited 724 Orbit Holdings Ltd

750 Marina Crown Real Estate (L.L.C) 84 P&p Properties Ltd L.L.C -rak

351 Marina Exclusive Limited 567 Paradise Limited

329 Marina Star Limited 367 Paramount Real Estate Llc


DUBAI REAL TIMES

67 Mars Properties Investment Ltd 369 Parshwa Holdings Limited

25 Matex Estate Ltd 562 Paxion International Fze

420 Memon Developments (Fzc) 219 Pearl Dubai Fz- L L C

760 Memon Property Ventures (Fzc) 209 Pearl Properties

765 Mena Capital Investment Llc 727 Petrochem Realty Fze

353 Mera Home Ltd 797 Petrokaz Limited 45


863 Phoenix Holdings (L.L.C) 85 Rufi Century Tower Ltd
91 Plus Internatinal Two Limited 68 Rufi Down Town Res Ltd
92 Plus International One Limlted 161 Rufi Gardens Ltd
813 Plus International Three Limited 162 Rufi Gulf Greens Ltd
787 Plus Properties Llc 775 Rufi Heaven Limited
453 Pnd Investments Ltd 798 Rufi Luxury Heights Limited
149 Point Development Ltd 336 Rufi Park View Limited
761 Premier Group (Fzc) 533 Rufi Rose Gardens Limited
504 Premier Group Properties Inc 433 Rufi Royal Crest Ltd
835 Premiers Property Developers Limited 335 Rufi Twin Towers Limited
124 Prescott Enterprises Ltd 295 Rufi Water Front Residency Limited
203 Prescott Holdings Limited 811 S.P. Oasis Limited
125 Prescott Investments Ltd 445 Sahara Livings Limited
437 Profile Residence Limited 855 Sama Dubai
575 Profile Zero Five Five Limited 495 Sameer Mahmoud Al Ali
561 Pyamod Developments Fze 70 Sameet Prakash Dhamecha
408 Pyamod International (Fze) 184 Sanali Holding Fze
322 Qureshi Faisal Abdul Aziz 554 Sarhank Kader
383 R.K.M Real Estate (Llc) 13 Sariin S.R.O
524 Raam Limited 204 Satnam Singh
173 Ramada Real Estate L.L.C 636 Sayed Amjad Husain
90 Ramadan Mousa Mishmish 384 Schon Investments Limited
66 Rani International Development (L.L.C) 452 Seasif Group Fzco
450 Rashed Darwish Alketbi 50 Seasons Development Limited
428 Rashed Mohamed Mahran Al Bloyshi 493 Seastar Properties Limted
137 Rayan Adnan Ibrahim Abduljabbar 810 Sebco Limited
264 Real Estate Bank 534 Segrex Limited
371 Realty Capital Middle East Fz-llc 361 Seracom Holding Limited
19 Reef Real Estate Investment Co (L.Lc) 596 Sevanam Holdings Limited
515 Reliance Estate Developmant 222 Seven Tides Ltd
8 Remah Holding Limited (Offshore) 237 Shaikh Holdings Limited
359 Rescom Holdings Limited 538 Shanti Builders & Developers Limited
362 Riviera Holdings Limited 820 Sharm Investment Co. Limited
DUBAI REAL TIMES

54 Rmg Limited 171 Sheffield Real Estate Llc


606 Roland Developments Fzc 39 Sheth Estate (International) Limited
444 Romeo & Juliet Tower Limited 642 Sidra Holding Limited
163 Romil Investments Ltd 65 Sidra Ltd
126 Rose Homes Investment L L C 74 Sienna Lakes Ltd

46 789 Royal Holdings Limited 373 Silver Star Tower Limited


22 Sky Estate Limited 527 Time Properties

30 Smart Home Properties 147 Torch Select Ltd

491 Smart Investment Limited 266 Town Center Management Limited

819 Sobha International Limited 292 Trend Capital Gmbh & Co. Dubai Sport City Kg

87 Sobha Investments Limited 96 Trident International Holdings Fzco

283 Sobha Properties Limited 165 Trinity Developers

89 Sobha Ventures Limited 205 Triplanet International Limited

215 Sokook Investment Group 207 Triveni Builders & Promoters Ltd

244 Souq Residences Fzco 560 Uae Waterfront Group Limited

800 Spain Select Limited 508 Uk-cig Developments (Jvs) Limited

622 Stallion Developments Ltd 501 Umesh Kumar Vinodrai Chug

697 Star Developers Limited 27 Union Properties

159 Star Surveying & Evaluating Services 301 Universal Developers (Fzc)

791 Sternon Developers Limited 127 V Resorts Ltd Fouad Barbar(Owner) / Bsa(Developer)

869 Strata Fze 474 Vascon Trading Ltd

193 Sum Sum Developers (Fzc) 465 Venus Properties Investment Ltd

368 Sun Valley Holdings Limited 261 Victory Heights Golf Residential And Development Company (Llc)

62 Sungwon F.Z.E 259 Vision Avenue Homes (Fzc)

614 Sunland Nur (Joc) Limited 710 Vokhid Kakharov

836 Sunland Waterfront (Bvi) Limited 823 Volcano Investment Properties Limited

214 Swiss Tower L L C 808 West Avenue Limited

188 Syann Palm Ltd 69 Westar Properties Ltd

186 Syann Park 1 Limited 773 York Shire Corporation Limited

637 Syndicate Sealine Limited 507 Yra Enterprises Limited

29 T F G Real Estate Broker 814 Zenith Real Estate Development Llc

170 Taisir Limited 228 Zero Five Zero Limited

756 Takmeel Investment Limited

99 Tameer Holding Investment (L.L.C)

287 Tanmiyat Real Estate Development


Taskeen Properties (Khaled Heikal& Hesham Heikal& Suaad Mohammed &
490
Ahmad Mohd)
852 Tatweer

856 Tecom

868 The Lagoons ( Llc)


DUBAI REAL TIMES

55 The Onyx For Development Limited

553 The Palm Hotel And Resort Fzc

457 The Pavillion Holding Limite

120 The World (L.L.C)

581 Tiger Properties

424 Tima Holdings Ltd 47


MARKET TRENDS
UPDATES // LAWS&& ANALYSIS
REGULATIONS
//

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

Q. My lease is due to expire in the next six months and I do not plan Q. I am currently negotiating the terms of a mortgage with a local
to renew it. When I entered into my tenancy contract, I paid a de- bank and though I have read a lot about the commencement pro-
posit of Dh10,000. Will I be able to get all of my security deposit back cess in respect of mortgages in Dubai, I would like to know the pro-
and do I have to give my landlord notice that I want to terminate the cess concerning the termination of a mortgage.
tenancy? A. To terminate a mortgage, you will need to submit the original title
A. With respect to the security deposit part of your query, Law No.26 deed, the original letter from your bank requesting the termination of
of 2007, which was amended in part by Law No. 33 of 2008, provides the mortgage and the original mortgage contract, to the Land Depart-
that a tenant should hand back the leased property in the condition ment. As you would expect, a fee is payable and the current cost is
in which it was received at the time of leasing - fair wear and tear ex- Dh1,000, in addition to a knowledge fee of Dh10.
cepted. In addition, the Law allows a landlord to essentially retain the
security deposit upon termination of the lease period, to ensure the Q. I am not actually a Dubai resident but I did invest in an off-plan
maintenance of the property; however, the landlord must return any property in Dubai last winter, which I was hoping to use for future
post-maintenance excess monies from the security deposit to the ten- vacations. It is my understanding that the developer has not even
ant. As such, if you return your property to your landlord in the same started the construction yet and I feel quite helpless as I live miles
condition as when you leased the property, then in theory, your full away. How can I make a complaint?
security deposit should be returned to you. A. As the law currently stands, Law No. 8 of 2007 (concerning escrow ac-
In respect of the non-renewal of your tenancy agreement, and without counts) provides that a developer must start construction of its project
having seen your actual tenancy agreement, you should notify your within six months of receiving all of the necessary approvals relating
landlord of your intention not to renew your tenancy at least 90 days to that project, whilst Law No. 9 of 2009 (which clarified the previous
prior to the expiry of your current tenancy agreement. interim registration measures) gives RERA the power to cancel a proj-
ect upon consideration of a grounds-based report. In such an event, a
Q. I work at a finance company and am trying to sort out a mortgage purchaser will receive a full refund in accordance with the Law No. 8 of
package and am baffled by the reference of a standard mortgage 2007, and Law No. 9 of 2009 prescribes that this should be done within
form in the Mortgage Law. I have been trying to locate such a form the earlier of: a) one year from the date of revocation of the contract; or
for a few weeks now but have been unsuccessful. Where can I get b) sixty days from the date of resale of the property. As the implementa-
this form? tion of regulations supporting Law No.8 of 2007 and Law No.9 of 2009
DUBAI REAL TIMES

A. Firstly, you should ensure that you are complying with Law No. 14 of are widely anticipated to be published shortly, and such regulations will
2008 concerning mortgages, by being registered and licensed to pro- hopefully set out some clear steps to resolve cases like yours, then as-
vide property finance in the UAE by the UAE Central Bank. If you are not, suming that you are still fulfilling your obligations under your sale and
then you should cease undertaking any mortgage activity until you are purchase agreement (e.g. paying any purchase price instalments when
fully compliant with the Law. due), you should initially register a formal complaint with RERA online
In respect of the standard form, this is more a case of standard informa- via their website until the supporting regulations are published.
tion. The mortgage provider should have a standard letter, also con-
taining the text in Arabic, that sets out specific information, namely,
Jacqueline Latham is a Legal Consultant (England and Wales qualified), Real
48 the loan amount; the loan term and the property details and this letter
should be signed by the authorised signatory. Estate at DLA Piper Middle East LLP, Dubai, www.dlapiper.com