NEWS BRIEF 03...Residence (380.5 metres), Almas Tower (363 metres) and the two JW Marriott Marquis towers (355 metres). DMCC is the master developer of DMCC. Its Uptown Dubai district

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

© Asteco Property Management, 2019 asteco.com IN THE MIDDLE EAST FOR OVER 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 03

SUNDAY, 20 JANUARY 2019

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

© Asteco Property Management | 2019 | asteco.com

IN THE MIDDLE EAST FOR OVER 30 YEARS

Page 2



REAL ESTATE NEWS

UAE / GCC / MENA

UAE ECONOMY TO GROW AN AVERAGE 3.8% A YEAR TO 2023

SAUDI ARABIA TO BEGIN BUILDING HOMES IN FUTURISTIC CITY NEOM

UAE'S HYPERLOOP SYSTEM TO COST UP TO $40M PER KM

WILL GOVERNMENT INITIATIVES BOOST UAE PROPERTY MARKET?

RISE IN PUBLIC SPENDING, STIMULUS TO BOOST GCC

GCC BANK MERGERS TO EASE OVERCAPACITY, SAYS MOODY'S

MEET UAE’S FIRST 10-YEAR VISA HOLDERS

DUBAI

DUBAI RESIDENTIAL CAPITAL VALUES FALL 11.1% ANNUALLY, SAYS VALUSTRAT

MILLENNIUM HOTELS TO OPERATE DUBAI INVESTMENTS' NEW CREEK HOTEL

ANOTHER 'SUPER TALL' TOWER TO RISE IN DUBAI

167 NEW FOOTBRIDGES TO COME UP IN DUBAI

THIS IS WHY IT'S THE BEST TIME TO MOVE TO DUBAI

DED POSTS 4.6% RISE IN NEW LICENCES

EMAAR LAUNCHES PHASE 2 OF DUBAI EXPO GOLF VILLAS

DEVELOPER SAYS DUBAI SKYSCRAPER COMPLETED 4 YEARS AFTER RESCUE

DUBAI SEES JUMP IN HOME COMPLETIONS TO 22,000 IN 2018

FINAL PHASE OF DUBAI'S SPARKLE TOWERS TO BE LAUNCHED

LUXURY PALM JUMEIRAH PROJECT STARTS HANDOVER TO OWNERS

AVERAGE DUBAI APARTMENT PRICE FALLS TO $330,000

AZIZI DEVELOPMENTS FOCUSED ON 2019 DELIVERIES AT START OF 'PROMISING'

YEAR, SAYS CEO

MORE OWNER-OCCUPIERS INVESTING IN DUBAI PROPERTY, SAY BROKERS

NEW DIFC OFFICE TOWER SECURES EY AS KEY TENANT

DUBAI DEVELOPER PLANS NEW PROJECTS AS NEW SHAREHOLDERS JOIN

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

© Asteco Property Management, 2019 asteco.com

DEFINING LANDSCAPES SINCE 1985

Page 3



REAL ESTATE NEWS

HOW DUBAI NEARLY SOLD OUT OF HOTEL ROOMS ON NYE

TOTAL OF 53M PEOPLE PASS THROUGH DUBAI DURING 2018

JUMEIRAH AL QASR COMPLETES MAJOR RENOVATION PROJECT

ARE DUBAI'S LANDLORDS STRUGGLING TO SELL HOMES?

IF YOU ARE A TENANT IN DUBAI, HERE ARE THE AREAS TO LOOK INTO

THE FUNDAMENTALS ARE WHAT MATTER IN DUBAI’S PROPERTY SECTOR

AFFORDABLE HOUSING TO REMAIN MAINSTAY OF DUBAI MARKET

TENANTS UPSIZE FROM CENTRAL LOCATIONS TO OUTER LYING AREAS IN DUBAI

DH90 MILLION IS THE COST OF MOST EXPENSIVE VILLA IN DUBAI

DUBAI'S NON-OIL PRIVATE SECTOR GROWTH EASES IN DECEMBER

ABU DHABI

ABU DHABI, TOO, WILL FACE THE SUPPLY PRESSURE ON RENTS

TENANTS, BUYERS HAVE MORE BARGAINING POWER IN ABU DHABI

NORTHERN EMIRATES

SHOW VILLAGE LAUNCHED AT SHARJAH'S AL ZAHIA MIXED-USE PROJECT

OVER 800,000 TOURISTS VISIT FUJAIRAH IN 2018

INTERNATIONAL

PRE-CRISIS LEVELS OF FDI IMPOSSIBLE IN NEAR FUTURE, GLOBAL INVESTMENT

BODY SAYS

AZIZI DEVELOPMENTS EYEING 'ICONIC' PROJECTS IN EUROPE, CANADA, SAUDI

ARABIA

WHY UK SHOULD STILL APPEAL TO GULF INVESTORS DESPITE BREXIT DOUBTS

TURKISH TYCOON SAID TO BE IN TALKS TO SELL HOTELS TO DUBAI

AE INVESTORS CAN PICK UP SOME BELT & ROAD ACTION




Page 4



REAL ESTATE NEWS

WILL BREXIT IMPACT THE UAE?

OIL SURGES 3% ON OPEC GLUT-CUT PLAN, SIGNS OF US-CHINA THAW




Page 5



DUBAI RESIDENTIAL CAPITAL VALUES FALL

11.1% ANNUALLY, SAYS VALUSTRAT Sunday, January 13, 2019

Dubai’s residential property market displayed an overall 11.1 percent fall in capital values in 2018, with quarterly

declines of 3.1 percent, according to a fourth quarter report from ValuStrat.

According to the report, the downward trend resulted in 24.7 percent citywide capital value loss since it peaked in

mid-2014.

The report added that all the freehold locations monitored by the ValuStrat Price Index (VPI) experienced price

drops ranging from 2.3 to 5.5 percent.

On an annual basis, 5 of 26 locations saw single digit declines, including villas in Palm Jumeirah, Emirates Hills and

Al Furjan and apartments in Dubai Marina and Jumeirah Village Circle.

Capital values in certain other locations – including the Meadows, Jumeirah Islands, International City, Discovery

Gardens, Business Bay and The Greens – fell more than 15 percent annually.

Haider Tuaima, head of real estate research at ValuStrat, said that “off-plan sale volume leaped 47.9 percent and

ready sale volume jumped 24.8 percent since Q3 with more than 50 percent of purchases were for apartments

priced less than AED 1 million and villas priced between AED 1 million and 3 million.”

Additionally, an estimated 19,367 apartments and villas – or 43 percent of the total supply as expected at the start

of 2018 – have been completed.

Of this total, 9,454 units were mainly located in Dubailand and Jumeirah Village Circle.

“The fourth quarter often sees a pick-up in residential transaction volumes, with buyers encouraged by special

sales incentives and discounted year-end pricing from both master developers and motivated home sellers,” said

Declan King managing director and group head real estate. “Increasing numbers of purchasers appear to have

committed in Q4.”

King added that “it will be interesting to see if this is a trend and continues into the following quarter, particularly

in the face of price falls which are expected to remain in the short term at least.”

Residential asking rents were found to have dipped 8.6 percent annually. On a quarterly basis, however, rents

were found to have fallen 1.2 percent. Compared to the same period last year, listed rents were down 8.9 percent

for apartments and 6.9 percent for villas.

Office transaction volumes, for their part, fell 11.9 percent compared to the previous quarter, while overall

transacted office prices were 9 percent lower than last year. There was, however, a notable increase of 11 percent

quarter-on-quarter.

The report noted that median transacted prices stood at AED 9,451 per sq m. Business Bay was found to be the

most popular choice for office shares, accounting for 53.8 percent of the total, followed by Jumeirah Lake Towers

with 23.7 percent.

In the hospitality sector, Dubai’s room count stood at 89,091 as of October, with 24,418 hotel apartments. An

additional 2,713 rooms were added during Q4.




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Citywide, occupancy rates between January and October were 75 percent, 2 percent lower than when compared

to the same period last year. Revenue per available room (RevPar) declined 7.7 percent, while average daily rates

were 5.5 percent year-on-year.

Source: Arabian Business

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Page 7



MILLENNIUM HOTELS TO OPERATE DUBAI

INVESTMENTS' NEW CREEK HOTEL Sunday, January 13, 2019

Millennium Hotels & Resorts MEA has signed a management agreement to operate the upcoming, Copthorne

Creek Hotel , a 138-room hotel located in Al Hamriya.

Dubai Investments will own the building, which will be its second hospitality real estate project with Millennium

Hotels, with a similar management agreement in place for a four-star hotel in the Mirdif Hills.

“We are proud to work with Millennium Hotels and Resorts MEA on this, a second project which follows the hotel

in Mirdif Hills, and we welcome the opportunity to bring our expertise at Dubai Investments to a new audience –

that of the tourist sector who will benefit from the latest significant additions to our real estate portfolio in the

hospitality sector,” said Khalid Bin Kalban, Dubai Investments CEO.

The four-star hotel in Mirdif Hills which Dubai Investments and Millennium Hotels & Resorts are working on offers

116 rooms and 128 serviced apartments as well as creative restaurant concepts, swimming pool, fitness area and

meeting spaces.


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Page 8



ANOTHER 'SUPER TALL' TOWER TO RISE IN

DUBAI Sunday, January 13, 2019

Another towering landmark will be joining Dubai’s growing skyline.

Free zone authority DMCC announced on Sunday that a “super tall tower” will rise in its Uptown Dubai district, a

mixed-use community in the Jumeirah Lakes Towers (JLT) area.

The 78-storey building, named “Uptown Tower,” will offer views of Dubai’s waterfront and iconic skyline and

feature a faceted glass façade to mimic the brilliance of diamonds.

It will be one of the two super tall towers that will anchor the Uptown Dubai area, a multi-purpose zone in the JLT

community that offers commercial, residential and leisure spaces.

The developer didn’t specify the height of the tower, but it said that the district’s main podium alone, estimated to

be 28 metres above the ground, will feature a two-level central plaza that will be twice the size of the New York

Times Square.

It will be surrounded by world-class outlets that will be linked to a shopping mall below, all with direct access to

the towers.

Construction of the first super tall tower has been awarded to Belhasa Six Contract, DMCC confirmed on Sunday.

"The building will be super tall but we cannot be specific as to [the] height, which will be communicated in due

course," a DMCC spokesperson told Gulf News.

Structures around the world that have earned the description “super tall” have a height of at least 300 metres. In

Dubai, buildings that belong to the category include The Address Downtown near Burj Khalifa, at 306 metres,

Cayan Tower (306 metres) and Burj Al Arab (321 metres).

The tallest so far is the Princess Tower, standing at 414 metres, followed by 23 Marina (395 metres), Elite

Residence (380.5 metres), Almas Tower (363 metres) and the two JW Marriott Marquis towers (355 metres).

DMCC is the master developer of DMCC. Its Uptown Dubai district will include more than 10 million square feet of

commercial and residential space, more than 200 retail and food and beverage outlets, approximately 3,000

homes and several luxury hotels.

Source: Gulf News

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Page 9



167 NEW FOOTBRIDGES TO COME UP IN

DUBAI Sunday, January 13, 2019

Pedestrian fatalities in Dubai saw a sharp drop to 36 last year from 59 cases in 2016 as the Roads and Transport

Authority (RTA) steps up efforts to raise awareness among road users.

According to the RTA, constant upgrade of infrastructure and construction of footbridges has also helped improve

pedestrian safety in the city.

Dubai currently has 113 foot bridges including nine that were constructed last year, with 167 new footbridges

planned by 2023.

As part of its sustained awareness initiatives, the RTA recently signed a memorandum of understanding (MoU)

with the Permanent Committee for Labour Affairs.

According to Maitha Mohammad Bin Adai, CEO of RTA’s Traffic and Roads Agency, the signing of the MoU is an

important step towards integrating efforts and sharing expertise with public and private entities.

“Our aim is to realise RTA’s traffic awareness strategy and reduce traffic-related injuries and deaths among

labourers and pedestrians,” said Bin Adai.

She added that 27 per cent of those working in Dubai are labourers, and as such, they form an important

segment in the traffic safety indicators in Dubai

“Under the MoU, we will share information related to traffic awareness among workers, and discuss initiatives

and events to enhance workers’ traffic awareness. We will focus on measures to curb run-over accidents at

hotspots that recorded the highest fatality rates among pedestrians over the past three years such as the Shaikh

Mohammad Bin Zayed Road, Emirates Road, and Jebel Ali Zone 1.”

She said that the RTA in cooperation with its partners has succeeded in reducing pedestrian fatalities from 59

cases in 2016 to 48 cases in 2017 and the number went further down to 36 till November last year.

Source: Gulf News

Back to Index




Page 10



THIS IS WHY IT'S THE BEST TIME TO MOVE

TO DUBAI Monday, January 14, 2019

Thanks to persistent decline in rents, reduced government fees and fines, and freezing of school fees, Dubai has

become even more affordable in 2019 compared to the previous year with rentals and prices of groceries and

restaurants declining on a year-on-year basis.

According to the latest Cost of Living Index data by Numbeo, which collects databases about cities and countries

worldwide, Dubai is rated as the 217th costliest city in the world in 2019 compared to 210th in the previous year -

helped by a fall in inflation, a stronger dirham and a substantial increase in purchasing power of residents.




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When compared to the world's six costliest cities, Dubai was 53 to 58 per cent cheaper than the Swiss cities of

Basel, Zurich, Lausanne, Bern, Geneva and Lugano, which were rated the costliest cities in the world, in terms of

prices of groceries and restaurants.

Restaurant and grocery prices in Dubai are substantially cheaper compared to Basel by 53 per cent and 70 per

cent, respectively.

Rentals in Dubai are cheaper by just five per cent. But if the cost of living index is combined with the rental index,

the emirate becomes much cheaper at 45 per cent.

Among other top cities, Dubai overall is 45 per cent cheaper compared to New York because rents in the emirate

are lower by 57 per cent, groceries by 38.4 per cent and restaurant prices by 41 per cent compared to the US city.

Dubai is 33 per cent more economical than London because rents, groceries and restaurants costs are less by 38

per cent, 37 per cent and 10 per cent, respectively, against The City, which was rated the 26th costliest in the

world.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said the fall in property prices across Dubai has

been a central factor behind the marked moderation in headline inflation, with other causes such as the drop in

oil prices also contributing.

"The soft inflation rate reflects a number of headwinds facing the economy, such as the correction in the real

estate market and the weak domestic demand. Moreover, the strong US dollar is helping to contain imported

inflation, but is also impacting the competitiveness of key non-oil sectors externally," she said.

Ahmed Shaikhani, managing director at Shaikhani Group, attributed this to lower commercial rentals, reduction in

fees by the economic department and lower costs for imports and exports of goods from the emirate.

"Commercials rentals have fallen consistently over the last few quarters. The economic department has reduced

charges as part of the ease of doing business so initial capital required to start a business has also declined

substantially in Dubai. In addition, the cost of imports and exports goods are also very low," said Shaikhani, an ex-

president of the Pakistan Business Council.

Highlighting the cost of starting a business in Dubai, he pointed out that investors can obtain an offshore licence

for less than $1,000 and can start a trading company for $2,000. Commercial rents are also very attractive at less

than Dh40 per square foot in Jumeirah Lake Towers and Business Bay.

"When we compare Dubai to other global cities such London and New York, Dubai is certainly among the top for

ease of doing business, low cost for investments and to start new business," Shaikhani added.

"The main reason for the reduction in the cost of living is the decline in rents. Also, some government fees have

declined or stopped increasing. School fees last year were also frozen," said Anita Yadav, senior director and head

of fixed income research at Emirates NBD. She noted that the reduction in the cost of living is attractive for

foreign labour, and does not really increase return on investment.

Sheikh Najm-us-Saqib, a Dubai resident for over 10 years, said the biggest relief for residents came from the fall in

rentals.

"I was paying Dh30,000 rent but now it has gone down to Dh26,000, which was the biggest relief for us. We have

also witnessed retailers resorting to more promotions and discounts which benefitted, to a large extent, people

like us from the lower-middle income group," he said.

Among sub-indices, the rental index of Dubai dropped 35 per cent, groceries fell 37.7 per cent and restaurant

prices were lower by 12 per cent year-on-year.




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In another important note, according to Numbeo, the local purchasing power of Dubai's residents substantially

improved from 123.7 points in 2018 to 133.5 in 2019, at par with the world's costliest cities of Basel, Zurich and

Lausanne which scored 132.5, 140 and 127.4, respectively.

In Abu Dhabi, according to Numbeo statistics, the cost of living increased as the emirate's ranking jumped from

299 in 2018 to 185 in 2019. Though the overall cost of living index and other sub-indices such as rents, groceries

and restaurant prices dropped, local purchasing power of the emirate's residents also dropped from 131 to 106.6

year-on-year.

Data showed that the decline in inflation in the UAE capital was small. Rentals fell 3.6 per cent, groceries were

down 2.2 per cent and cost for dining out dipped just over 2 per cent.

In the GCC region, Doha, Manama, Riyadh and Muscat were 203rd, 214th, 246th and 249th, respectively.

Among the top 10 costliest worldwide, the top six slots went to the Swiss cities followed by Stavanger (Norway),

Reykjavik (Iceland), Oslo (Norway) and New York.

In the list of 433 cities ranked by Numbeo, Indian and Pakistani cities were the most economical. Rawalpindi

(Pakistan) was rated the most economical followed by Thiruvananthapuram, Vijayawada, Visakhapatnam, Kochi,

Karachi, Navi Mumbai, Vadodara, Coimbatore and Bhopal.

Source: Khaleej Times

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Page 13



DED POSTS 4.6% RISE IN NEW LICENCES Sunday, January 13, 2019

The Department of Economic Development (DED) in Dubai issued 20,467 new licences during the year 2018 as the

emirate continued to enhance its appeal as a destination for sustainable business growth.

Overall, 248,769 business registration and licensing transactions were recorded in the 'Business Map' digital

platform of DED in 2018 - an increase of 4.6 per cent over 2017 - as more and more businesses and investors took

advantage of the emirate's competitiveness and increasing opportunities across diverse economic sectors.

Licence Renewals accounted for 128,965 transactions at the Business Registration & Licensing (BRL) sector in DED

in 2018 while 24,859 were related to Initial Approvals. There were also 35,563 transactions related to Trade Name

Reservation, 50,148 Auto Renewal transactions, 1,202 Instant Licence procedures, and 1,075 DED Trader

transactions.

As economic diversification continued to gather pace in 2018, all major economic sectors saw demand for varied

BRL services. Among the new licences 63.2 per cent were commercial, 34.5 per cent professional, and 1.1 per cent

were related to tourism.

The share of Industrial licences moved from 1.1 per cent to 1.2 per cent between 2017 and 2018, and the increase

of over nine per cent assumes significance in the backdrop of the Dubai Industrial Strategy 2030, which aims to

develop Dubai into an industrial and innovation hub.

The outsourced centres, which are the foremost service outlets of DED and key players in enhancing ease of

doing business across Dubai, handled 75 per cent (214,337) of the total BRL transactions in 2018.

Among the main regions, Bur Dubai had the highest share of new licences (11,435), Deira had 8,985 and Hatta, 47.

The top sub-regions that accounted for 48.3 per cent of all the transactions in 2018 were: Burj Khalifa (11.8 per

cent), Port Saeed (6 per cent), Al Marrar (5.6 per cent), Al Fahidi (4.3 per cent), Naif (4 per cent), Dubai World Trade

Centre 1 (3.7 per cent), Al Garhoud (3.6 per cent), Hor Al Anz East (2.6 per cent), Al Karama (2.4 per cent), Al Barsha

(2.3 per cent) and Al Khubaisi (2 per cent).


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Page 14



HOMEFRONT: HOW DO I AVOID

'RIDICULOUSLY LOW' OFFERS WHEN

SELLING MY SPRINGS VILLA? Thursday, January 17, 2019

We urgently need to sell our villa in the Springs as my husband has lost his job and we are moving home to South

Africa. We are being offered some ridiculously low prices by potential buyers. I know it’s a buyers' market but 30

per cent below is crazy. Any advice for getting the best possible price? RI, Dubai

We have been experiencing a sustained buyer's market and with this comes the not so fun and games of dealing

with cheeky buyers. Unfortunately, I cannot shield you from these low ball offers but what I would advise is to

follow the steps below to help maximise your chances of getting a good price:

Choose one reputable Rera-qualified agency

It is a fallacy to think the more agents selling your property, the quicker it sells and at a good price. In fact. the

opposite often happens. Buyers are swayed by promises from rogue agents that say they can get a better price

for them. Because of this, buyers end up fishing around for the best deal and therefore speak to several agents.

The seller then hears from these agents with offers and believes there are several buyers in the market interested

in the unit when in fact it’s often just the one buyer. This leads to confusion and to unnecessary wasting of time

when important decisions are made due to baseless facts.

Price correctly

Ask the agent to let you know what other similar properties have sold for. Reputable agents have access to data

that is not available to the public, this shows what properties have actually sold for rather than just the price

property portals advertising at. Having this kind of information will help you start at the right asking price.

Presentation and marketing

Ensure the agency of choice has organised a professional photographer to take the photos of your property.

Quality photographs and a factual and appealing description is a must to attract potential buyers - especially

online. Displaying a 'for sale board' outside the property is also a must as this often is the difference between a

sale or not.

Area specialist

Your agent should also be an area specialist. This gives you an advantage as the broker will have knowledge not

just about the property but the location and area, in terms of information on schools, retail, leisure and transport

facilities to name a few.

Open house

Organising an open house event is a sure way of attracting potential clients to your property, especially

neighbours who may have friends of relatives looking to move into the area and be close by.

We are taking on another domestic helper and want to expand the maid's quarters in our garden. We are in Al

Barsha and the landlord has said it's fine as long as we cover the costs. Do we need any approvals? PK, Dubai




Page 15



When renting a property it is advisable to seek out the necessary agreement from the landlord if you plan to carry

out any alterations or improvements. This is because the property has to be returned at the end of the tenancy in

the same condition as it was given at the start (unless otherwise agreed).

Approval from the landlord is not the only requirement that may be needed. If a tenant lives in an apartment

building, for example, management approval may be needed too.

In your case, extending the quarters for domestic helpers may need approvals from the Municipality; getting the

no objection certificate from the landlord would be the first step in proceeding with the work.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 34 years

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

only.

Source: The National

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Page 16



PRE-CRISIS LEVELS OF FDI IMPOSSIBLE IN

NEAR FUTURE, GLOBAL INVESTMENT BODY

SAYS Friday, January 18, 2019

At the current rate of development, hitting pre-crisis levels of global foreign direct investment inflows cannot be

achieved in the near term, said the chief of the World Association of Investment Promotion Agencies (Waipa).

Global FDI inflows rose in 2007 by 30 per cent to reach almost $1.8 trillion before the economic meltdown that hit

world economies in 2008, according to Bostjan Skalar, chief executive of Waipa.

“It [FDI inflow] was predicted to reach $1.7tn in 2017 and $1.8tn in 2018, but we saw an entire opposite graph.”

“Reaching the FDI levels of 2007-08 is not possible in the next two to three years,” said Mr Skalar. “Earlier we were

aiming to hit the pre-crisis levels in 2018, but we missed the target very badly.”

Although, he believes the UAE is bucking the trend.

“The UAE is doing pretty well, because it managed to change internally. When you cannot change the global

trends of trade wars or other protectionism measures, you should change yourself,” said Mr Skalar.

Foreign investment into Dubai rose by 26 per cent in the first half of 2018 to $4.84 billion, according to data from

the Dubai Investment Development Agency – a unit of the emirate’s Department of Economic Development. The

rise implies that diversification efforts and support for start-ups are bolstering Dubai’s economy.

Waipa was established in 1995 by the United Nations Conference on Trade and Development to stimulate the

interests of global investment promotion agencies. It has nearly 160 members spread across 130 countries.

According to the Unctad figures, global FDI flows fell by 23 per cent in 2017 to $1.43tn – a stark contrast to

accelerated growth in gross domestic product and trade.

However, there was further slowdown in the first half of 2018 as international FDI inflows plunged by more than

40 per cent.

As foreign investment globally is not set to outdo pre-crisis levels anytime soon, other economies should focus on

the UN’s 17 Sustainable Development Goals, a blueprint for a better world future adopted in 2015 and intended

to be realised by 2030, Mr Skalar said.

“The top two players in FDI inflows and outflows – US and China – are embroiled in trade war and protectionism

issues. Therefore, other parts of the developed world, particularly Europe, should start pushing and look beyond

the traditional trade war. [They should] be more consistent with its investment plans and try to keep moving its

agenda while not allowing US-China conflicts to impact FDIs”, said Mr Skalar.

Optimistic about new UAE laws that will allow certain sectors up to 100 per cent foreign ownership and allocate

10-year visas to investors, Mr Skalar said that foreign companies are bullish about investing in the Emirates.

“More disruption is always good … and currently UAE is successful in what it is doing – especially with opening its

economy and changing its investment laws.




Page 17



“Giving a 10-year visa to a foreign investor is important because investors need stability and peace of mind. They

do not want to run from pillar to post for visa renewal every two to three years,” said Mr Skalar.

Political and economic stability is one of the foremost challenges in parts of the Middle East and North Africa

when it comes to attracting foreign money.

“Investors do not look at a particular country but they consider the whole region before making investment. We

are always trying to support the regional co-operation,” he said.

“Probably, one country will get [capital] this time, the other will get the next time.”


Back to Index




Page 18



UAE ECONOMY TO GROW AN AVERAGE

3.8% A YEAR TO 2023 Monday, January 14, 2019

The UAE economy is forecast to grow at an average 3.8 per cent annually in the next five years, supported by an

increase in investment flows and a rise in private consumption, according to a study.

The average real gross domestic product – an inflation-adjusted measure that reflects the value of all goods and

services produced by an economy in a given year – of the UAE between 2019 and 2023, will also be boosted by the

expansionary fiscal policies of the Government, Dubai Chamber of Commerce said in its UAE Macroeconomic

Model report, released yesterday.

A growing number of infrastructure and construction investments in the run up to Expo 2020 will also bode well

for the overall GDP growth of the second-biggest Arabian Gulf economy, it added.

“A recovery in private consumption and sales of highly cyclical consumer products is expected, extending to

products such as vehicles, furniture, household appliances and medical equipment,” the chamber said.

“Meanwhile, robust growth in investment is projected on the back of government fiscal stimulus.”

The non-oil economy of the UAE is projected to grow by an average of 4.1 per cent annually between 2019-23,

compared to the 2.8 per cent recorded in the 2014-18 period.

The non-oil sector’s growth will be driven by other sectors including transport and communications, which are set

to grow by 7.9 per cent over the five-year period, followed by construction, expected to expand by 4.2 per cent,

and real estate and business services that are expected to record a growth of 3.8 per cent until 2023, said the

chamber.

Recent reforms to reduce the cost of doing business in the Emirates are also expected to support growth within

the country’s small and medium-sized enterprises and private sector businesses.

The UAE’s overall economy, which grew only by 0.8 per cent in 2017, mainly on the back of Opec-led oil output

cuts and crude price declines, is set to accelerate this year amid a slew of Government measures aimed at

propelling the non-oil sector, which accounts for more than 70 per cent of the country’s GDP. The Central Bank of

the UAE forecasts the economy to grow 4.2 per cent in 2019 as government reforms and stimulus measures start

yielding results.

In June, Dubai and Abu Dhabi announced they were exempting companies from administrative fines for at least

the rest of last year, as part of efforts to stimulate business growth. Dubai unveiled in April plans to implement

measures to help boost economic growth, attract investment and cut the cost of doing business across sectors

ranging from tourism to financial services.

Abu Dhabi, also in 2018, announced a $50-billion three-year stimulus package to support non-oil private sector

growth.

The UAE Government in 2018 approved a foreign direct investment law that is expected to boost FDI flows by up

to 20 per cent this year, from an average growth rate of 8 per cent, Economy Minister Sultan Al Mansouri said in

November. Foreign investment is forecast to rise to $11.5bn (Dh42.4bn) in 2018 from $10.8bn in 2017. The

Government is also planning to grant long-term visas of up to 10 years and gave the nod for new low-cost

employee insurance policies to help retain talent and attract investors.




Page 19



In terms of best investment opportunities for Dubai businesses, the emirate’s trade body noted that the Middle

East and North Africa accounts for the largest share of Dubai’s exports with 41 per cent. Emerging Asia with 26

per cent follows Mena, Sub-Sahara Africa accounts for 18 per cent, while the CIS, which includes Russia,

Azerbaijan and other post-Soviet states, accounts for 1 per cent. The CIS region, along with Latin America at 0.8

per cent, are the two smaller destinations of exports, the chamber said, citing trade data for the first nine months

of 2018.

The chamber said that chemicals and allied products was the top-performing product category for Dubai’s

exports to Asia. Within Sub-Sahara Africa and Latin America, wood pulp and paperboard was the top category for

exporters, while vegetable oils dominated the emirate’s exports to the CIS region.

However, the global economic picture remains uncertain over the medium term, Dubai chamber noted. Total

global growth over 2019-23 period looks set to be modest, with real GDP expansion projected to reach an average

of 3.6 per cent annually, according to recent projections from the IMF.

On the other hand, emerging markets are expected to see average growth of 4.8 per cent for the period,

outperforming advanced economies and the global average.


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Page 20



EMAAR LAUNCHES PHASE 2 OF DUBAI

EXPO GOLF VILLAS Saturday, January 19, 2019

Emaar Properties has launched the second phase of its Expo Golf Villas following "overwhelming" sales response

to phase 1.

The developer said it has released a limited collection of three and four-bedroom premium villas set only 10

minutes from the Expo 2020 Dubai site.

Overlooking an 18-hole championship golf course, the Expo Golf Villas are priced from AED999,888.

Expo Golf Villas are set along the main boulevard of Emaar South, and are targeted at professionals working in

the various business hubs including the Aviation District, Logistics District, Business Park, Exhibition District and

Humanitarian District.

There are also neighbourhood parks and shared amenities including an outdoor swimming pool, kids play area,

gymnasium and community centre.

Emaar said the Expo Golf Villas assure strong return on investment as research by KPMG and the American

National Association of Realtors showed that golf courses have historically boosted the value of nearby properties

by as much as 20 percent.


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Page 21



DEVELOPER SAYS DUBAI SKYSCRAPER

COMPLETED 4 YEARS AFTER RESCUE Saturday, January 19, 2019

Preatoni Real Estate has announced the completion of the Dubai Star project, four years after its initial developer

abandoned the project following the global economic crisis.

The 45-storey skyscraper, which is located at the upmarket JLT cluster L has now been renamed Preatoni Tower. It

boasts 554 units covering a total of 600,000 sq ft of prime residential and commercial space.

After reaching a 38 percent advancement in the construction stage, the Dubai Star project would eventually come

to a grinding halt putting the over 400 local and international investors at the risk of losing their investment.

In 2014, the Preatoni Group came to the project’s rescue and pumped in over AED50 million, committing to revive

the white elephant project.

Preatoni Group chairman, Ernesto Preatoni, said that the investors' vision had finally come to fruition. He also

said that the decision to take over the stalled project was aimed at restoring Dubai’s image as a safe investment

hub.

“We are delighted to finally and successfully complete the Dubai Star, now known as the Preatoni Tower. The

journey has been long but despite the challenges, our investors’ dreams and aspirations are now a reality. Our

belief in the project underscores our confidence in Dubai’s real estate market.” he said.

He added: “We have not only completed the project as initially intended, but we have also added our signature

Italian touch to the tower. Our years of experience and expertise in property development has been the driving

force towards the completion of this momentous project.”

The Preatoni Tower will be ready for occupancy by the end of March.

Preatoni Group has overseen real estate projects across the globe including Italy, Switzerland, Russia, Baltic

nations, Egypt, and the US.


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DUBAI SEES JUMP IN HOME COMPLETIONS

TO 22,000 IN 2018 Saturday, January 19, 2019

Dubai witnessed its highest number of residential deliveries in the last five years in 2018 with a number of major

project completions adding 22,000 new units, according to new research.

JLL's Review of 2018 report said there are concerns of supply increasing ahead of demand over the coming years

which could continue to place downward pressure on sale and rental prices.

However, actual completions are expected to be much lower than the projected deliveries, it added.

JLL said that in Abu Dhabi the residential market continued to soften and with additional new supply in the year

ahead vacancies are expected to further increase causing further rental decline.

With conditions remaining soft across most sectors of the UAE’s real estate market in 2018, the government

launched a number of new initiatives to boost demand.

In the year ahead, market performance will heavily depend on how quickly these investments and regulations

have an impact, JLL said.

Last year, the UAE government announced a number of relaxed regulatory controls to further drive economic

diversification and stimulate weakened market demand.

The introduction of a new 10-year residency visa and a 5-year retiree visa were launched to encourage investment

and retain human capital in the emirates, in turn reversing the current downturn in market conditions.

“Overall market sentiment should improve in the long run as the new visa regulations and economic stimuli will

provide a boost to the UAE’s real estate market. However, the benefit of these initiatives is unlikely to have an

immediate impact and 2019 is expected to remain a challenging year for most sectors of the real estate industry,”

said Craig Plumb, Head of Research at JLL MENA.

“The residential and office sectors have the most potential upside from these new initiatives launched to

stimulate demand,” he noted.

The office sector was the strongest performer in 2018 owing to minimal new supply entering the market. Dubai

witnessed the lowest new supply in the last five years with only 61,000 sq m of office gross leasable area

delivered. Future demand is expected to be boosted in both Dubai and Abu Dhabi owing to new relaxed visa

regulations and the capital’s new economic stimulus package.

JLL said Dubai’s retail sector remains the most challenged because of ongoing increased supply. Retail also faces

ongoing competition from e-commerce and although there have been efforts to drive the market with new

entertainment concepts, future performance will rely on developers introducing new strategies to increase

footfall and spend.

JLL added that leading up to Expo 2020, the UAE's hotel sector is being driven by short term prospects, but

performance remained softened in 2018. The introduction of short-stay transit visas announced by the UAE

Government is expected to positively impact the tourism sector overall.


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Page 23



FINAL PHASE OF DUBAI'S SPARKLE TOWERS

TO BE LAUNCHED Saturday, January 19, 2019

Engel & Volkers, the high-end real estate brokerage, has been appointed exclusive sales agent to officially launch

the final phase of Sparkle Towers, a residential project being built in Dubai Marina in a deal with crystal giant

Swarovski.

The building owned by Dubai-based development company Tebyan, will offer investors a range of luxury studios,

one-, two- and three-bedroom apartments as well as two four-bedroomed penthouses. Prices start from

AED845,000.

“What makes this development unique is our partnership with the global luxury brand Swarovski, the incredible

sea and marina views from every apartment, and a contracted handover in less than four months,” said

Mohamed Abdullah Faraj, managing director, Tebyan Real Estate Development.

Located at one of the last remaining plots in Dubai Marina, Sparkle Towers is a twin-tower development

consisting of 29 and 14 storeys respectively and connected by a four-floor residential podium.

The towers are made up of 373 luxury apartments and penthouses incorporating the finest fittings and finishes, a

host of amenities and a range of retail units.

Residents of the development will be greeted by a marble entrance and a crystal decorated lobby and common

areas thanks to the creative designers at Swarovski.

The apartments and penthouses all feature marble and ceramic flooring, granite countertops, and the finest

European bathroom fittings and finishes, along with crystal encrusted apartment number plates.

Matthew Bate, CEO, Engel & Völkers said: “With prices starting at AED845,000, the value for money aspect is

exceptional, given the quality of build, location, panoramic views and of course the project’s partnership with

Swarovski makes the investment proposition crystal clear."

Other amenities include a fitness centre and spa, swimming pools, separate men’s and women’s Jacuzzi and

sauna as well as a dedicated residents lounge.

Outdoors, residents can also enjoy landscaped gardens, a children’s splash park and a play area.

“This is undoubtedly an iconic building and branded landmark for many years to come, adding further value for

investors, in a community that has very few building plots remaining. Little wonder that we have already

experienced unprecedented demand from investors and end users,” added Bate.


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Page 24



LUXURY PALM JUMEIRAH PROJECT STARTS

HANDOVER TO OWNERS Friday, January 17, 2019

Developer Innovate living has announced it has started to handover the units of its flagship Palme Couture

Residences project located on the trunk of Palm Jumeirah in Dubai.

Work on the luxury project, which commenced in 2015 and was officially launched in early 2018, will eventually

see the delivery of all 14 exclusive residences.

They include 3-bedroom lateral apartments, 4-bedroom townhouses and 5-bedroom duplexes, all the way up to

the Royal Penthouse of 7-bedrooms, complete with a separate guesthouse and terrace.

Palme Couture Residences units are fully-serviced with the amenities of a five-star hotel concierge and arrive with

Italian marbles, sweeping ocean views, private beach access, smart home system, open air space and walk in

closets.

Kareem Fahmy, founder and CEO of Innovate Living, said: “As a location, Palm Jumeirah continues to witness

strong interest from investors seeking for beachfront developments. There has been unprecedented demand for

unique and stylised living spaces that seek to enrich residents’ lives."

He said the Royal Penthouse sold for AED62 million ($17 million) while the average price of the residences not yet

sold is AED25 million.

All units are expected to be sold before the end of this year, he said, adding that Innovate Living is now working

on another project, details of which will be announced soon.

"The luxury market is big in Dubai as it’s known as a prime destination worldwide. For us, our aim is simply to

achieve the highest quality by carefully guiding the designers, contractors and other collaborators and to give the

best level of service to our residents," said Fahmy.


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Page 25



SHOW VILLAGE LAUNCHED AT SHARJAH'S

AL ZAHIA MIXED-USE PROJECT Thursday, January 17, 2019

Sharjah Holding, a partnership between Majid Al Futtaim - Properties and Sharjah Asset Management, has

announced the launch of a show village at its Al Zahia mixed-used project.

The show village offers the opportunity to experience life at the development and features four furnished villas

and two unfurnished villas with a mini park modelled after Al Zahia’s Sensory Park.

Last August, the project announced the sale of its 1,000th home.

Al Zahia will feature 2,270 homes upon its completion in 2022.

In May, the community launched its newest residential neighbourhood, Uptown Al Zahia, that offers homes

ranging from studios to three-bedroom apartments, featuring swimming pools, fitness facilities and underground

parking.

Also planned for opening in 2020 with an investment value of AED2.6 billion, City Centre Al Zahia, a super regional

mall, will serve a trade area of more than 1.9 million people in the project.

When the project was luanched in 2016, Sharjah Holding said that Al Zahia is expected to contribute AED5.5 billion

to Sharjah's economy upon completion.


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Page 26



AVERAGE DUBAI APARTMENT PRICE FALLS

TO $330,000 Thursday, January 17, 2019

The average price of an apartment in Dubai has fallen to AED1.2 million ($330,000) and are likely to drop further

in 2019, according to new research.

Cavendish Maxwell's Property Market Report for Dubai in 2018 also said that average villa/townhouse values in

the emirate have dropped by AED500,000 in the past year to AED1.8 million.

The report said the prospect of purchasing a residential property in Dubai is now "more attractive for residents

and overseas investors alike".

Manika Dhama, head of Strategic Consulting and Research at Cavendish Maxwell, said: “Dubai’s real estate market

continued to face challenges in 2018. Certain fundamental demand factors, like increased government spending,

regulations, policies and up-take need to improve for a recovery in 2019.”

The report said that in the office sector, rentals mostly declined in secondary locations, as tenants and investors

favoured Grade A stock in prime business areas such as DIFC, Business Bay, Dubai Marina and One Central

buildings in the World Trade Centre district.

It added that Dubai's retail sector witnessed developers becoming more flexible on lease terms and offering

incentives to retain tenants and new entrants, in order to offset the downward pressure.

Demand from international brands for outlets in destination malls such as Mall of the Emirates and The Dubai

Mall remained strong, it noted.

Cavendish Maxwell also said Dubai’s hospitality market continued to see incentives from the Dubai government

to strengthen demand, such as free limited-stay visas for transit passengers and a VAT refund scheme for

tourists.

The report recorded a further 1,303 rooms added to Dubai’s hotel room inventory, in addition to the Dubai

Corporation of Tourism and Commerce Marketing’s (DCTCM) reported figures, marking a total room inventory

rise of 6.9 percent in 2018.

Dubai Land Department figures showed a total of AED194 billion worth of transactions occurred from January to

November, with Emiratis responsible for the largest share in Dubai’s real estate market, worth AED11.5 billion,

followed by Indians, Brits, Pakistanis and Jordanians.


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Page 27



AZIZI DEVELOPMENTS FOCUSED ON 2019

DELIVERIES AT START OF 'PROMISING'

YEAR, SAYS CEO Thursday, January 17, 2019

Dubai-based Azizi Developments is currently focused on delivering projects in the pipeline slated for 2019 and

2020 deliveries after experiencing a slight dip in sales in 2018, according to CEO Farhad Azizi.

Speaking to Arabian Business, Azizi said that he expects that the company “will have a good year.”

“[Deliveries] are our big focus. I’m personally very focused on construction. That’s the bread and butter of a

developer,” he said. “This is going to be a year in which we’ll have a lot of deliveries.”

Azizi added that “2020 will be the year with the most deliveries, so there’s a focus on that.”

In 2018, Azizi Developments announced that it had 200 projects in various stages of development, with seven

projects slated for delivery in 2019.

Among the projects that will be delivered this year are properties in Healthcare City, Al Furjan and the Palm

Jumeirah, along with the first phase of Azizi’s Meydan One flagship project, Azizi Riviera.

In his remarks, Azizi said that he is confident that the company’s sale figures will rebound after having fallen in

2018.

“Frankly speaking, 2018 was not the best of the best,” he said. “Sales wise, 2017 was better. Not by huge

percentages, but 10 to 20 percent in different project locations. It was not just Azizi Developments. Many

developers reported lower numbers, sales wise.”

The company, he added, already saw sales numbers begin to rise in December 2018 and the beginning of January.

“I was surprised how good December was. December was as good as December 2017,” he said. “I looked at both

and in December 2017 I had better inventory. If I had the same inventory this year (2018) it would have been

better than December 2017.”

“For us, thing’s started good,” he added. “So far, it’s been going according to our plans.”

In the long-term, Azizi added that Dubai’s status as a “global city” means he is unconcerned about drastic

fluctuations in demand.

“This isn’t the Dubai of 20 years ago. There is a very constant demand for things,” he said. “The fluctuations won’t

be big, if there are any. Things don’t spike up or go down quickly. This is something that gives a developer

confidence.”


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Page 28



MORE OWNER-OCCUPIERS INVESTING IN

DUBAI PROPERTY, SAY BROKERS Wednesday, January 16, 2019

Dubai property brokers are seeing an increasing number of owner-occupiers buying properties in the emirate.

Samer Abdin, GM of Dubizzle Property, speaking on this week’s AB Live, said the dynamics of Dubai’s property

markets are changing, with more end users investing in homes.

“One of the shifts that has happened in the real estate market is when you go back a few years, it was primarily an

investor-driven market from a sales point of view. Now we are seeing more and more, the shift to end users.

People are buying to live, families settling in, who are planning to make Dubai a long-term home. And I think that

is a sign of maturity”, he explained.

As a result, people are opting for larger apartments and villas to experience community living, which are now

becoming affordable.

“The way the market is going presents opportunities. The way that Dubai is maturing means that more people are

settling. Young families are starting to grow and they are looking for villas in places like Dubai Land, Arabian

Ranches. People are looking for that community feel,” Abdin said.

“If you are an end user, yield is not the only thing. You are also looking for community, facilities etc. As more and

more end users are buying properties, more and more of these considerations are taken into account and

developers are starting to realise that too,” he added.

Some of Dubai’s high end communities such as Arabian Ranches, Palm Jumeirah and The Springs have seen

average villa sale prices decline as much as 11%, according to a study by Dubizzle Property.

Average prices per sq ft for a 3 bedroom villa in Arabian Ranches dropped as much as 11% from AED1,098 to

AED980, while prices in Palm Jumeirah dropped 10% from AED1,573 in 2017 to AED1,415 in 2018. Prices in The

Springs also declined 8% from AED1,077 to AED987.

The communities are among Dubizzle’s top five searched. Others include The Villa, where prices per sq ft for a 3

bedroom declined 27% from AED947 to AED693. Prices for villas in Jumeirah Village Circle (JVC) also dropped 5%

from AED666 to AED632 per sq ft.


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Page 29



AZIZI DEVELOPMENTS EYEING 'ICONIC'

PROJECTS IN EUROPE, CANADA, SAUDI

ARABIA Wednesday, January 16, 2019

Dubai-based Azizi Developments is currently exploring opportunities in “iconic” developments in markets

including Saudi Arabia, Germany, the UK and Canada, according to company CEO Farhad Azizi.

In an interview with Arabian Business, Azizi said he spent much of 2018 traveling to a number of different

countries to examine potential opportunities for the company.

“I personally had to do that. You can’t assign somebody to do that on your behalf. You have to personally go,” he

said.

“I was in London, Germany, Saudi Arabia and Canada. Now I am here full time,” he added.

Azizi added that the company has had internal discussions about “iconic” developments in these markets, rather

than the sort of “mass developments” that the company is known for in Dubai.

Mature markets

At the moment, however, Azizi said that no projects have been finalised in any of the markets that he was

exploring.

His experiences abroad, Azizi added, gave the company “a taste of how a very mature, very seasoned market

behaves and reacts to new developments.”

“One of the things that is a big support in those markets is how the banking industry is a machine running the

whole development. Banks are involved from day one. They are very strategic partners,” he said.

“[In the UAE] they are going down that path as well, it will take some time. Banks here have been a bit more

conservative.”

The Azizi Group's Germany-based company, Main-Tür GmbH, recently attained an official developers license in

Germany after a nine-month vetting process and has several projects in the pipeline.

The chief executive said, however, Azizi Developments “hasn’t started so many projects” in Germany.

“I was testing out the market, and it turned out to be pretty positive,” he said. “But nowhere close, in terms of

returns, to Dubai. The rate of return here is relatively higher for the developer, and the clients. Every market has

its pros and cons. None of them are perfect, including Germany, England and Toronto.”

Meilenstein, a UAE-headquartered company whose managing director Jawad Azizi is Farhad's brother and the son

of Azizi Group chairman and founder Mirwais Azizi, also has operations in Germany. The company, which

announced a foray into Dubai in October, is not part of the Azizi Group.


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NEW DIFC OFFICE TOWER SECURES EY AS

KEY TENANT Tuesday, January 15, 2019

ICD Brookfield, a 50/50 joint venture between the Investment Corporation of Dubai and Brookfield Properties, has

signed a pre-let agreement with global professional services firm Ernst & Young (EY), for 120,000 square feet at

ICD Brookfield Place in Dubai.

EY will occupy four floors of the 53-storey tower including three podium levels, with a private terrace and

dedicated reception on Al Sa’ada Street.

EY plans to occupy the building from the third quarter of 2019, a statement said.

Designed by world-renowned architects Foster & Partners, the 1.1 million sq ft development, which topped out

this month, comprises 990,000 square feet of Grade A office space and 140,000 square feet of retail space.

ICD Brookfield Place is centrally located in the Dubai International Financial Centre and directly connected to the

Gate Avenue.

The building will become one of the most prominent office towers in Dubai, the statement added.

Khalid Al Bakhit, chairman of ICD Brookfield, said: "We are delighted that ICD Brookfield Place has attracted such a

large pre-lease commitment. With efficient and flexible workspace alongside a fantastic selection of casual and

fine dining, curated retail experiences and amenities, ICD Brookfield Place is an attractive address for an array of

companies."


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Page 31



WHY UK SHOULD STILL APPEAL TO GULF

INVESTORS DESPITE BREXIT DOUBTS Tuesday, January 15, 2019

The UK's real estate market should still hold appeal to Gulf-based real estate investors despite the uncertainties

surrounding Brexit, according to Savills.

Despite growing by just 2.7 percent in 2018 as Brexit fears slowed the market, the total value of UK housing stock

increased £190 billion to hit a record £7.29 trillion, according to new analysis from the real estate adviser.

Steven Morgan, CEO of Savills in the Middle East, said: “For those holding dollar-denominated funds, there is an

opportunity to look at the UK as a place to invest in real estate.

"Despite some of the uncertainty surrounding Brexit, there remains value in the British market for Middle East

based investors. Traditionally money from this region has been invested into the globally significant areas of

London and as a long-term investment that remains solid advice, but there are also many regional parts of the UK

which should be considered.”

The statement comes as the British parliament holds a historic vote later on Tuesday on the Brexit deal agreed

with the EU and all sides are bracing for turmoil when the text is almost certainly rejected.

With just over two months to go until the scheduled Brexit date of March 29, a bitterly divided Britain is in limbo

and the world is on tenterhooks about what will happen next.

Savills said that reversing a decade-long trend, gains came from the regional markets as London’s residential

stock recorded a 1.5 percent fall, the first since 2009, in the face of stretched affordability and broader economic

uncertainty.

Despite slowing growth in London, it still accounts for almost a quarter of UK housing value, compared to a fifth a

decade ago. London’s housing stock is worth £1.77 trillion, over four times the combined value of Birmingham,

Manchester, Edinburgh, Glasgow, Cardiff, Bristol, Liverpool, and Sheffield - all cities which saw higher rates of

price growth than the capital in 2018.

Savills said last month that Middle Eastern investment in London is expected to top £1.38 billion ($1.75 billion) in

2018, up 30 percent on last year's activity.

Across the UK as a whole, price appreciation added a total £138 billion, equivalent to growth of £4,800 per home,

Savills said.

“Our analysis demonstrates the scale of the housing market and underlines the importance of housing to the

economies of London and the UK as a whole, both as an asset class and store of private wealth,” said Lawrence

Bowles, residential research analyst at Savills.


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DUBAI DEVELOPER PLANS NEW PROJECTS

AS NEW SHAREHOLDERS JOIN Tuesday, January 15, 2019

Virtue Properties, a Dubai-based real estate developer, has expanded its shareholder base and is set to announce

new residential and hospitality projects in the emirate.

The addition of KG Group to the shareholder base will help the company to grow faster by undertaking new

development projects, company officials said in a statement.

“With the restructuring of the company’s board, Virtue Properties will soon announce new residential and

hospitality projects in Dubai,” said Youssef El Kurdi, CEO of Virtue Properties.

“I welcome the new shareholders - chairman K Gupta and vice chairman Rohit Gupta - to the board of Virtue

Properties who will now help the company to grow. The new shareholders do not only bring new resources to the

company, but will also bring years of expertise in real estate development business," he added.

Virtue said it is currently planning to develop one hotel and one residential building within the land bank of Dubai

Holding and one tower in Jumeirah Village Circle (JVC), where it delivered its maiden project, City Apartments.

“The success of the City Apartments as well as a few other villa projects and our ongoing Virtue projects has

inspired us to develop more projects in Dubai and with the expansion of our board, we are ready to spearhead

the development of the new projects,” he said.

Rohit Gupta, CEO of KG Group, said: “The decision to invest in Dubai’s real estate sector comes from our firm

belief in Dubai’s property sector which is now the most regulated real estate sector in the region and which

showed signs of maturity. The current market situation provides ideal market opportunities for new investors like

us and we are very excited about this.”

Despite the challenging current market situation, Gupta sees opportunities and remains hopeful of the market

recovery.

“Real estate business goes in cycles and there are ups and downs. We are currently at the bottom of the cycle and

we all expect the market to go up from here,” he added.

Virtue Properties delivered the AED75 million project, City Apartments, last year and features 67 one-bedroom

apartments.


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SAUDI ARABIA TO BEGIN BUILDING HOMES

IN FUTURISTIC CITY NEOM Thursday, January 17, 2019

Saudi Arabia said it will start building the first residential area in a proposed $500 billion futuristic city that’s

become a symbol of Crown Prince Mohammed bin Salman’s ambitions for life after oil.

The kingdom plans to start work on Neom Bay in the first quarter this year, according to the state-run Saudi Press

Agency. The area will have “white beaches, a mild climate and an attractive investment environment,” SPA said.

Phase 1 will be completed by 2020, according to the agency.

The planned megacity, unveiled more than a year ago, is part of the prince’s grand plan to bolster non-oil revenue

and attract foreign investment with eye-popping proposals to transform the economy, including two other

tourism developments. Neom is to be financed by the Saudi government, its sovereign wealth fund, and local and

international investors.

The project includes a bridge spanning the Red Sea, connecting the proposed city to Africa. Some 10,000 square

miles (25,900 square kilometres) have been allocated for the development of the urban area, which will stretch

into Jordan and Egypt.

Critics have questioned the mega-project after previous efforts to build industrial and financial cities have

struggled to take off. Construction of the $10 billion King Abdullah Financial District in north Riyadh began in 2006

but the 73-building hub remains unfinished.

Prince Mohammed, in an interview with Bloomberg in October, referred to the first phase of the project as the

Neom Riviera. “Neom city will be completed in 2025,” he said, adding without elaborating that “there are

interesting partners in the Middle East and globally. Interesting names.”

A number of facilities will be opened at Neom by the end of this year, SPA reported, without providing further

details. The private airport at the site will be used for commercial flights by year-end, it said.


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UAE'S HYPERLOOP SYSTEM TO COST UP TO

$40M PER KM Thursday, January 17, 2019

The world's first commercial hyperloop system, which is set to open in Abu Dhabi in 2020, will cost between $20-

40 million per kilometre, according to a senior executive.

Bibop Gresta, chairman of Hyperloop Transportation Technologies, told state news agency WAM that Abu Dhabi's

Hyperloop capsule has left the assembly facility in Spain and has been taken to Toulouse, France, where it will be

tested.

He added in comments published by WAM that the project "can recoup the investment in 8-15 years".

The first phase of the project involves construction of 10km out of a 150km system between Abu Dhabi and Dubai

and is set to be ready next year.

In April 2018, HyperloopTT signed a memorandum of understanding with Aldar Properties, which, when executed,

will allow for the creation of a new Hyperloop TT centre including, a full scale commercial Hyperloop system, an

Hyperloop R&D centre, a demonstration and visitor centre and an innovation hub.

"It was a far-fetched dream, but we are all excited now that it’s a dream coming true in the UAE in 2020," Gresta

told WAM.

"Basically, the Abu Dhabi Hyperloop system is right now past the feasibility study. We have already completed the

study after we partnered with Aldar Properties last year. It will be the first commercial Hyperloop line in the

world."

He added: "Today we’re announcing that the capsule has already left the assembly facility in Spain, and is on its

way to Toulouse, France, where we have a prototype track. As soon as it arrives in Toulouse, it will be put in a tube

and then they will test the system with the first passenger.

"The capsule will be assembled and optimised in Toulouse, prior to use in the Emirates with the goal of eventually

connecting Abu Dhabi to Al Ain and Dubai at unprecedented speeds, safely, efficiently, and sustainably," he said.

The cutting-edge technology uses electro-magnetic levitation engineering to carry pods at 1,123 km/hr and is

expected to reduce travel times between UAE cities to minutes.

"Hyperloop can quickly become profitable. It presents the ability to build a mass transit system that would not

require government subsidies," Gresta added.

Asked about the issue of safety, Gresta said: "Hyperloop is primarily built on pylons, using best practices from civil

engineering, including seismic design and ability to withstand thermal expansion. Also, it is completely automated

with advanced technologies that only require monitoring from humans. The system is electrically powered, with

no need for fuel on board, and is protected from the environment.

"We have developed tiered emergency plans and redundant escape procedures and systems in the event of any

incident."


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HOW DUBAI NEARLY SOLD OUT OF HOTEL

ROOMS ON NYE Friday, January 18, 2019

Dubai hotels saw a rise in demand in December but an influx of new supply continued to put pressure on

occupancy and room rates, according to latest figures.

Analysts STR’s preliminary December data for Dubai indicated performance consistent with significant growth in

both supply and demand.

Based on daily data from December, Dubai reported a 8.6 percent rise in supply against demand growth of 5.6

percent.

STR said occupancy fell by 2.7 percent to 79.2 percent while average daily rates (ADR) decreased by 4.3 percent to

AED758.80.

The figures also showed that revenue per available room (RevPAR) dropped by 6.9 percent to AED600.98 in

December.

STR analysts noted that the story remains the same for Dubai. "Demand (room nights sold) continues to grow, but

an influx of new inventory is pressuring occupancy and ADR levels," they said.

When looking at individual days during the month, New Year’s Eve was the strongest with occupancy reaching

97.1 percent - nearly 2 percent up on the same day in 2017 - and ADR at AED1,703.15 (down 2 percent).

Dubai's hospitality market closed the month with five consecutive nights of occupancy above 90 percent, STR

added.


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Page 36



TOTAL OF 53M PEOPLE PASS THROUGH

DUBAI DURING 2018 Thursday, January 17, 2019

A total of 53 million passengers passed through Dubai’s entry and exit points at land, sea and air ports in 2018,

according to official figures.

Major-General Mohammad Ahmad Al Merri, director general of the Residency and Foreigners Affairs Department

in Dubai, said that entry and exit movements through airports registered 50 million passengers.

According to statistics, inbound passengers reached 25.2 million against 24.7 million for outbound passengers.

"Passengers who used the smart gates and corridors numbered 11,258,319," he said in comments published by

state news agency WAM.

He said that the department had issued 3,250,419 entry and residence permits for individuals and companies and

3,727,501 tourist visas last year.


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JUMEIRAH AL QASR COMPLETES MAJOR

RENOVATION PROJECT Wednesday, January 16, 2019

One of Dubai’s most iconic hotels, Jumeirah Al Qasr, has announced the refurbishment of its full inventory of

rooms and suites, maintaining its traditional Arabic style.

The hotel in the heart of Madinat Jumeirah said all 294 rooms, complete with terraces and balconies, have been

revamped to offer a "rich and yet modern Arabic experience", designed by Khuan Chew of KCA International

Interior Design.

The Royal Suite and Presidential Suites have also been fully renovated with changes being made to the dining

area of the Royal Suite, as well as arabesque ceiling joists and mosaics added into the flooring.

Rebecca Nachanakian, general manager of Jumeirah Al Qasr and Jumeirah Dar Al Masyaf said: “Jumeirah Al Qasr

emanates the palatial feel that celebrates Arab culture and tradition perfectly.

"The newly renovated rooms encourage a total cultural immersion of modern Arabia, yet with the traditional

design and architecture the hotel is famed for.

"Like a timeless tale majestically told, the refurbishment adds to the hotel’s reputation as the most regal of the

Madinat Jumeirah’s four hotels – the paradigm of Arabian palatial luxury in its finest form.”

The hotel, which has rates starting at AED900, also boasts 2km of private beach and the largest acclimatised

swimming pool in Dubai, surrounded by 40 hectares of gardens, restaurants and pool bars.


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OVER 800,000 TOURISTS VISIT FUJAIRAH IN

2018 Tuesday, January 15, 2019

The number of tourists visiting Fujairah rose to more than 800,000 in 2018, according to reservations at the

emirate's 36 hotels.

Saeed Al Samahi, director-general of the Fujairah Tourism and Antiquities Authority, said that the authority aims

to advance the emirate’s tourism sector this year, as per the directives of ruler Sheikh Hamad bin Mohammed Al

Sharqi.

He added in comments published by state news agency WAM that 2018 witnessed the launch of new hotels

including the 379-room Blue Diamond Alsalam Resort and the 119-room Mirage Bab Al Bahr Hotel in Dibba.

Work is also underway on other new hotels in the emirate, he said, adding that in 2019 the authority is focusing

on initiatives related to tolerance.

Al Samahi also stressed the importance of preserving antiquities, through reconstructing forts and castles and

researching archaeological sites, as well as the excavation work conducted last year in various sites in the emirate,

which aim to preserve antiquities and showcase them to the emirate’s visitors.

He said the reconstruction of Habhab Fort will be completed this year, as well as the redevelopment of the

Fujairah Museum.


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TURKISH TYCOON SAID TO BE IN TALKS TO

SELL HOTELS TO DUBAI Monday, January 14, 2019

Turkish billionaire Ferit Sahenk is in talks to sell some of Europe’s most famous luxury hotels to the investment

firm owned by Dubai’s ruler as part of a debt restructuring, people with knowledge of the matter said.

The discussions involve properties including the historic Capri Palace in Italy, the Aldrovandi Villa Borghese in

Rome and Istanbul’s Grand Hyatt, the people said, asking not to be identified because the talks are private.

Dubai Holding is doing due diligence on the Capri Palace and Aldrovandi, one of the people said. The firm, one of

three main state holding companies in the emirate, owns Jumeirah Group, which would likely operate the hotels,

the person said.

Sahenk’s Dogus Holding, which owns the hotels, declined to comment. A spokeswoman for Dubai Holding,

controlled by Sheikh Mohamed bin Rashid Al Maktoum, didn’t respond to requests for comment.

Sahenk, once Turkey’s richest man, spent heavily on hospitality businesses at home and overseas after selling his

31 percent stake in Turkiye Garanti Bankasi for almost $5.5 billion.

His company has sought buyers for its trophy hotels for several months, people familiar with its plans have

previously said, amid growing concern that the plunge in the lira will make it harder for Turkish firms to secure

new foreign debt.

In December, Dogus Holding struck a deal with a group of mostly local banks to restructure part of its borrowings.

Those talks involved about $2.5 billion of loans, people familiar with the plan had said in April.

The process was delayed after the lenders demanded the company sell some of its assets, Moody’s Investors

Service said on December 6.


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ARE DUBAI'S LANDLORDS STRUGGLING TO

SELL HOMES? Thursday, January 17, 2019

It’s not just rents that are dropping because of all the new homes being delivered and launched in Dubai.

Property owners wanting to sell now find they are getting nowhere near their asking prices because there are

brand new properties – ready and offplan - being offered by developers with post-handover payment schemes,

Land Department fee waivers and lock-in service charges for extended terms. And if need be, developers can

even get mortgages approved for the buyer.

Against such incentives, individual owners planning to sell find they have limited room to manoeuvre. Sure, they

can drop their prices even further and hope the buyer is willing to take the bait. But what it means is that more

owners are forced to sell their property at prices much lower than what they had bought for.

This has been the case in all areas where new homes are being delivered in significant numbers, and applies to

properties across all price and category types.

According to the real estate consultancy Core, sales prices have “softened across the board”, with apartment

prices in locations such as Dubailand (down 15 per cent), Sports City (a drop of 13 per cent) and Discovery

Gardens (lower by 14 per cent) in the last 12 months.

Even upscale Downtown Dubai recorded dips of 12 per cent on apartment prices “from existing and upcoming

stock”. In the case of villas, those in Jumeirah Park have seen an 18 per cent value drop during the period.

Core estimates that nearly 22,000 new homes were handed over in 2018 in the various freehold locations, which

makes it the highest tally since 2011. “As more stock comes to the market, the older built stock is unable to retain

its novelty,” said Prathyusha Gurrapu, Head of Research and Advisory at Core.

“Occupier preference is shifting – both for rentals and sales - to newer stock that is increasingly becoming

available at lower entry points. Developers within major master-communities continue to bring new stock at

lower entry points and offer pre- and post-handover payment plans that directly compete with existing secondary

market stock.

“(This forces) individual property owners to try and keep pace with reduced prices. Depending upon when an

individual property owner has bought the property, and whether the transaction was in cash or mortgage, they

might be looking at a loss of equity.” In other words, selling at a price lower than what they bought it for.

In its latest report, the consultancy Cavendish Maxwell reckons that average trading prices for apartments were at

Dh1.2 million during the fourth quarter of 2018, while on villas, it dropped from Dh2.3 million at the end of 2017

to around Dh1.8 million.




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What it means is that

sellers in the secondary market have had to readjust their expectations accordingly. A check of property listing

sites indicate that any property that is deemed at having too high an asking price is going unsold or the seller has

had to revise his demands, at times more than once.

Buyers have other options too. “A certain segment of secondary sellers have adjusted their pricing, but there is

also a significant portion who have decided to hold on and resorted to renting,” said Saygin Yalcin, Chairman of

Sellanyhome.com. “The pressure on rentals has been fuelled by downward pressure in the sales market. This has

ultimately benefitted the end consumer in the rental space than in sales transactions."

“Yet, while a certain segment has adapted a wait-and-see strategy, cash-rich buyers are enjoying favorable

purchase conditions and betting on capital appreciation in the coming years.”




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Developers are responding with launches with price points that today’s budget-conscious buyers favour. And

there are already quite a few options available for cash buyers… or even those who plan to take the mortgage

route.

Emaar has released three- and four-bedroom villas at Dubai South in the price-sensitive Dh1 million to Dh1.4

million range. Dubai Holding has pegged its prestige Madinat Jumeirah Living homes in Jumeirah - and a few

minutes from the beach - at Dh1.25 million for a one-bed and going up to Dh5.3 million for a four-bed.

If developers themselves are offering all sorts of price options, there is not much individual sellers can do in the

current marketplace beyond lowering their expectations.

Price points head lower in Dubai property deals

Sure, there have been the Dh90 million transaction on an Emirates Hills villa, Dh62 million for a seven-bedroom

penthouse on the Palm, and Dh60 million on a beachside Bvlgari home by the beach. These were among the

priciest deals for residential property last year.

But in the market as a whole, the size of average transactions is coming down - 26 per cent of offplan transfers for

apartments in 2018 were in the Dh1,200-Dh1,500 per square foot price bracket, according to the Property

Monitor data from Cavendish Maxwell. “In the case of villas, 59% of the total offplan transactions were in the

range of Dh500-Dh800 a square foot.”

“Price movement in the last 12 months has varied between communities as well as among different buildings

within the same community, thus reflecting greater differentiation in how available properties were traded. This

differentiation is expected to continue in 2019 as buyers have increasing supply options to choose from, with

property fundamentals such as developer track record, proximity to social and public infrastructure, ease of

access and maintenance, among other factors, driving price movement.”

With the rental market in correction, one would have thought landlords would be more than willing to ease

tenants’ payment concerns. But as per the Property Monitor’s database, the majority of rental agreements on

residential properties in 2018 were by single cheques (43 per cent of total), and which actually increased by 14 per

cent compared to 2017. And rental payments made using four cheques decreased by 23 per cent over last year.

Source: Gulf News

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Page 43



AE INVESTORS CAN PICK UP SOME BELT &

ROAD ACTION Wednesday, January 16, 2019

Want a piece of the property action in China’s Belt & Road (B&R) Initiative? Investors in the UAE and from the

region can do so via a new real estate investment trust (Reit) set up and operated by the firm that created

Emirates Reit. The target is to raise more than $200 million to $300 million in the initial phase and then scale up

further.

Equitativa, which operates Emirates Reit, has aligned with Hong Kong based Affluent Partners Holdings to launch

the B&R Reit.

A personal initiative of Chinese President Xi Jinping, the multi-billion dollar Belt & Road Initiative plans to create a

new land and sea trade route connecting countries and continents, from Asia to Africa and reaching up to the

doors of Europe. Several projects have already been taken up in some of these countries, with Chinese financial

institutions lending funds and with Chinese contracting firms taking a central role. The corridor will extend its

coverage to the Middle East as well.

But there have been criticisms that some of the countries may find it difficult to foot the bill for their part in this,

and that it is also a move by China to exert dominance.

However, Sylvain Vieujot, Group Chairman of Equitativa, wants to separate the political and economic aspects of

what B&R initiative could eventually deliver. “Funds raised by the Reit will only be interested in selective asset

purchases along the trade corridor being created. It does not mean the fund will invest in property assets in all of

the countries through which the corridor passes.

“There is no interest on our part in the political agenda of the B&R, but only on the economic growth that this will

bring about. Working with Affluent Partners will increase our fund raising capabilities in Asia and gives us the

opportunity to identify more assets.”

Equitativa has two existing Reits - essentially funds mopped up from multiple investors and then put into longer

term yield generating properties - with a pure UAE focus. The first one has built up a sizeable portfolio of

commercial assets, including schools and industrial.

The second, launched in 2017, has a pure residential focus, and now has assets of Dh1.2 billion. Forty per cent are

residential assets in Abu Dhabi, while 30 per cent each are shared between Dubai and Ras Al Khaimah.

In the recent past, Equitativa has also extended its fund manager’s role to India and Pakistan through dedicated

funds.

On whether the soft property market in the UAE has hurt Reit prospects, Vieujot said: “Two things need to be in

your favour to make things happen - one, the need to buy properties at a reasonable price. And, two, you need to

be able to rent those properties at a higher rate.

“Right now, only the first part of the equation is in favour. That’s why it’s a tricky time to be launching new Reits in

the UAE. On our part, we are not going to slow down and we will keep picking up quality property.”

Source: Gulf News

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Page 44



IF YOU ARE A TENANT IN DUBAI, HERE ARE

THE AREAS TO LOOK INTO Tuesday, January 15, 2019

A common question asked by investors, financiers, developers, analysts and the curious is when will the Dubai

real estate market recover? Apartments in Dubai have seen the biggest softening in rental rates last year,

according to Asteco, with an average 11 per cent year-on-year change since Q3 2017.

“The areas recording the largest drops during this period include Jumeirah Village, which saw a 15 per cent

change; Discovery Gardens, JBR and Palm Jumeirah, which had a 14 per cent change; and Jumeirha Lakes Towers

[JLT] and Dubai International Financial Centre [DIFC], which witnessed a 13 per cent change,” said John Stevens,

managing director of Asteco.

Ali Siddiqui, research analyst at Reidin, said areas with high handovers (within the area and in the surrounding

areas) recorded the highest decline in rent prices, with affluent residential neighbourhoods such as Dubai Marina

declining by 8 per cent, Business Bay by 7 per cent, Downtown Dubai and DIFC by 9 per cent, and JLT by 10 per

cent on yearly basis. “Dubai real estate market continued to decline in 2018 owing to the addition of new

residential units coupled with low economic growth, reduced demand, and a resultant drop in consumer

spending,” he said.

Since around 85 per cent of the residential supply that came in 2018 were apartments, Siddiqui said this segment

recorded a larger price fall of 11 per cent, in comparison to the villa segment, which has fallen by 8 per cent on a

yearly basis.

According to the Property Monitor Index, rental rates across Dubai fell on average by 7.7 per cent in the year to

November with apartment rents falling by 8.4 per cent and villa and town house rents by 8.3 per cent over the

same time period. Gross yields in Dubai were 6.27 per cent in November, down from 6.45 per cent a year earlier

as a result of rents declining at a faster pace than sales prices over this period.

Whereas another market study conducted by Colliers International has put this decline in the range of 5 per cent

to 30 per cent on a year-on-year basis. According to the global property consultant, the rental fall was recorded

across the board, with Arabian Ranches seeing up to 30 per cent decline; The Springs and The Meadows up to 25

per cent; Palm Jumeirah Apartments, JLT and Dubai Marina up to 22 per cent; Downtown Burj Khalifa and

Business Bay up to 20 percent; and Jumeirah Golf Estates, The Greens and The Views up to 18 per cent.

“Generally large five- to six-bedroom villas experienced the biggest declines. Smaller villas and town houses held

better due to the increased affordability, making them more attractive to potential tenants, in particular upscaling

from apartment living,” said Imran Hussain, head of residential at Colliers International, Middle East and North

Africa.

While rent declines were witnessed across the board last year, Robert Thomas, head of residential at Core, said

the highest was witnessed in Discovery Gardens (15 per cent), Dubai Sports City (14 per cent), Jumeirah Village

Circle and Triangle (12 per cent) and JLT (11 per cent).

“Similar to the trend seen over the last two to three years, villas and larger apartment units have seen

comparatively higher softening while studios and one-bed [units] have remained relatively resilient,” he said.

Hussain pointed out that there is no doubt that some people will take advantage of the current affordability of

rentals and try to upgrade or move to larger and better properties. “However, there are also tenants who are




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moving not necessarily to larger or better properties; they are moving to the same type of unit just for the

purpose of a better deal,” he added.

Outlook 2019

The industry experts say the current trend of rental decline is expected to continue in the coming quarters, unless

the announcement of government spending and new regulations create an increase in demand during this year.

But Stevens said it is likely that due to an incoming wave of new supply in the market, rents will continue to soften

throughout the year.

Thomas pointed out that the older central built stock continues to be under pressure to retain its novelty with

occupier preference shifting to outer areas where newer and competitively priced options increasingly becoming

available.

“For this reason, we expect rental prices to remain under pressure in 2019 and the rental market to continue

being tenant friendly,” he said.

Top 5 locations

While various market studies have put varied rate of decline based on the methodologies adopted by them, we

have relied on the Reidin data to come up with this map, which compares rental movements in Dubai’s top five

locations (Dubai Marina, Business Bay, Downtown Dubai, DIFC and JLT) from Q4 2017 to Q4 2018.

Source: Gulf News

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Page 46



THE FUNDAMENTALS ARE WHAT MATTER

IN DUBAI’S PROPERTY SECTOR Tuesday, January 15, 2019

No other single economic sector has evolved as dramatically as Dubai’s property market in the last two decades.

While trade, tourism, hospitality and retail have all grown, the property sector’s transformational evolution makes

it one of the strongest contributors to the economy.

From blocks of government housing and real estate companies managing stand-alone apartment complexes to

the era of freehold, the property market has matured, with its model widely replicated across the region. As a

fundamental contributor to the economy, it is only normal that economic volatilities impact the sector. After all,

economies operate with crests and troughs.

But for developers who are focused on the long-term, the seasonal trends are learning grounds that make them

stronger and more efficient. The year 2018 presented its share of challenges driven by geopolitical shifts and oil

price fluctuations. There were the usual sceptics commenting on how these could impact Dubai’s property

market.

While there were price corrections that are normal in any economy, the bigger facts speak for themselves.

According to the Dubai Land Department, the first nine months of 2018 recorded real estate transactions worth

over Dh162 billion through 27,174 investments by 21,605 investors of 163 nationalities.

In the last 10 days of the year, over 2,081 transactions were conducted at Dh19 billion. These are strong indicators

of the property market’s inherent strength, made even more attractive with the participation of international

investors.

For 2019, the trends are more positive, especially led by new governmental initiatives that have boosted market

confidence. The approval by the UAE Cabinet to grant 100 per cent ownership of non-free zone business by

foreign investors, the 10-year visas for investors and professionals, and the law granting retirees over the age of

55 years to benefit from longer residency visa will be significant catalysts as these encourage investors to

purchase property in Dubai not only to live in but also as long-term investments.

Another key factor that supports the realty sector and enhances investor sentiment is transparency. Today, Dubai

is ranked among the top three cities globally in real estate market transparency, according to JLL. With the Dubai

budget announced focusing on infrastructure development, and the ongoing preparations for the Expo 2020, the

property sector is well-positioned for sustained growth.

I am optimistic about Dubai’s real estate sector, not just for 2019, but also for the long-term given the government

initiatives bolstering the economy and establishing the city as the best place to live in, work and visit. The

positivity of Dubai and the sense of belonging it fosters among all residents will continue to attract professionals

from across the world and in turn contribute to more demand for property.

Farhad Azizi is CEO of Azizi Developments.

Source: Gulf News

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Page 47



ABU DHABI, TOO, WILL FACE THE SUPPLY

PRESSURE ON RENTS Monday, January 14, 2019

Pressure on rents from the rush of new homes being completed is not just a Dubai story – much the same is

happening in Abu Dhabi as well. Nearly 5,000 residences were delivered in Abu Dhabi last year compared with

22,000 units, according to the new update from JLL.

On the face of it, there is a wide differential between the two cities – but this is the first time in so many years that

Abu Dhabi is actually seeing these many new home completions. If the same happens this year – about 10,000

units are expected to be ready – this will have a telling impact on rents.

The 5,000 units of last year meant that 65 per cent of the promised supply actually got completed, whereas in

previous years, the actual deliveries used to average about 35 per cent of what was expected.

Now, if 60-70 per cent delivery is maintained this year as well, it means residents in Abu Dhabi have a lot more of

stock to pick from. This is exactly the situation in Dubai, and which has forced rental declines in each of the last

two years. In 2018, the drop in apartment rents was at 8 per cent year-on-year.

“If this rate (of supply in Abu Dhabi) carries over the next few years, the market will remain oversupplied which

could dampen any potential improvement in prices and rental levels,” JLL’s report adds. “Residential vacancies are

anticipated to increase further causing further rental declines.

“The softening market conditions have forced vendors to decrease asking prices to attract the reduced level of

demand. This has resulted in both homebuyers and tenants having more bargaining power when it comes to

negotiating terms and conditions, rental rates, and sales prices.”

Some of that was evident last year too, with apartment rents in Abu Dhabi down 11 per cent on a year-on-year

basis. Much of the new supply will again be on Al Reem Island and in Saadiyat.

What of the supply situation in Dubai this year? JLL places the top end of the forecast at 60,000 units, but adds the

rider that the actual completion numbers to be less than 50 per cent, going by the average in each of the last five

years.

From a developer perspective, “There are concerns of supply increasing ahead of demand with anecdotal

evidence suggesting an oversupplied market resulting in further downward pressure on both prices and rentals.”

This is why a lot rests on how the recent initiatives announced by the government play out. JLL cautions that it

could take time to bear the intended results.

“The benefit of these initiatives is unlikely to have an immediate impact and 2019 is expected to remain a

challenging year for most sectors of the real estate industry,” said Craig Plumb, Head of Research at JLL MENA, in

a statement.

Source: Gulf News

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WILL BREXIT IMPACT THE UAE? Sunday, January 20, 2019

While the UAE's economy may be insulated by shockwaves created by Britain's exit from the European Union,

some impacts are likely to still be felt in the medium to longer term, with some sectors benefiting and others

being put at a disadvantage.

With the UAE and other Gulf countries pegging their currencies to the dollar and a handsome chunk of revenues

in the region derived from oil sales, downside shocks sparked by extreme pound volatility are likely to be limited.

However, if a no-deal Brexit encourages risks to the global economy then the UAE, similar to other economies

across the world, could feel the heat, says Lukman Otunuga, research analyst at FXTM.

On the bright side, Brexit will increase trade between the UK and the UAE, with key services and products from

the UK making their way into the UAE with greater ease, Otunuga added.

On the other hand, a hard Brexit could affect the UK's investments into the UAE's real estate industry.




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"Another sector seen taking a hit may be tourism due to a weak pound, not only creating a reluctance to travel

but also impacting the purchasing power of British people visiting the UAE," Otunuga added.

British Prime Minister Theresa May won the no-confidence motion in parliament by a 325-to-306 majority last

week. May has immediately opened talks with her opponents in an effort to break the stalemate and must return

to Parliament to set out a new plan by tomorrow. Markets are hoping that these talks might result in a softer

Brexit, a delay to it or even another referendum.

She must also talk to the EU again. However, the EU is refusing to reopen the Brexit deal, and the question of

whether May can persuade opponents in Westminster to support a new deal also has to be questioned following

the events of this week.

As a consequence, markets may be too sanguine about how things will develop from here, says an Emirates NBD

research.

Anita Yadav, senior director and head of fixed income research at Emirates NBD, noted that the UK is not among

the large trading partners of the UAE. Per Bloomberg data, total trade between the UAE and the UK was around

$9.6 billion in 2017, which probably is concentrated in the sectors of real estate investments and tourism.

She pointed out that irrespective of the outcome of the Brexit, the impact on the UAE will be indirect in the form

of currency exchange rates due to the dirham's peg to the dollar.

"Any weakness in sterling against the dollar will also weaken it against the dirham. That, in turn, will make it

cheaper for UAE residents to invest in the UK but make it more expensive for UK residents to travel or invest in

the UAE. Consequently, a weaker pound may reduce tourism and real estate investment activity in the UAE and

vice-versa," added Yadav.

Samir Brikho, UK co-chair of the UAE-UK Business Council, had earlier said that the fundamentals of the UK

economy and relationship with the UAE remain strong.

"The UAE-UK Business Council will continue to work towards achieving its ambitious target of increasing bilateral

trade to £25 billion [Dh118 billion] per annum by 2020," he said.

A no-deal Brexit could crash the UK's GDP by 8 per cent and raise the unemployment rate to 7.5 per cent, pulling

the UK economy into a depression-type scenario. MSCI's stress test analysis revealed that if no deal is agreed

upon, UK and European stocks could fall by nearly 25 per cent and 10 per cent, respectively, in the "disorderly

Brexit" scenario.

Vijay Valecha, chief market analyst at Century Financial, also sees a no-deal Brexit will impact tourism, as well as

real estate investments into the UAE. UK investment into Dubai realty alone has topped $9 billion in the last four

years and this could get hampered as a depreciating pound will reduce the purchasing power of UK citizens.

"Same will be the case with tourism; it is estimated that, on average, half-a-million UK citizens visit the UAE every

year," said Valecha.

"Nevertheless, Dubai could be an indirect beneficiary as the chaos could prompt a lot of companies to relocate

from London and could force a lot of skilled people to relocate to the Emirates - which ranks favourablly among

major cities and could emerge as an alternative financial centre," Valecha added.

Dirham vs pound

Valecha predicted that a no-deal Brexit could send the pound/dirham rate down to the 3.8 level from the current

4.77.

Although the dirham has depreciated over 1 per cent against the pound year-to-date, it gained 5.97 per cent in

2018.




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Otunuga foresees the pound's performance against the dirham heavily dependent on the type of Brexit the UK

moves ahead with, or even if it actually occurs.

He predicted that a no-deal Brexit will expose sterling to extreme downside shocks while a market-friendly soft

Brexit outcome is seen stimulating appetite for the pound. An unlikely situation where Brexit is cancelled will be

extremely positive for sterling as a massive element of uncertainty is removed.

"In regards to the technical picture, pound/dirham is pushing higher on the daily charts with resistance found at

4.7500. With the dirham pegged to a vulnerable dollar, the technical outlook for the pound/dirham points to

further upside. A solid weekly close above 4.7500 is seen opening a path towards 4.8000," he added.

David A. Meier, economist at Julius Baer, maintains a bullish long-term pound outlook, based on a larger

probability of a more market-friendly outcome of Brexit, such as a delay followed by a softer Brexit, or no Brexit

at all.

"In the short-term, we remain bearish, as current pound exchange rates suggest that markets are too complacent

about lasting political risks surrounding Brexit," says Meier.


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Page 51



TENANTS, BUYERS HAVE MORE

BARGAINING POWER IN ABU DHABI Wednesday, January 16, 2019

Abu Dhabi real estate sales prices and rents continued to undergo downward adjustments throughout 2018,

albeit at a lesser rate towards the end of the year, indicating that in some locations pricing levels are starting to

become more realistic, according to Chestertons.

Average apartment and villa sales prices fell by 2 per cent in Q4 compared to the previous quarter. The year-on-

year performance showed that apartment prices declined, overall, by 9 per cent and villas by 11 per cent,

informed Chestertons.

Around 5,000 new residential units were completed in Abu Dhabi in 2018, estimated JLL. Q4 saw the delivery of

approximately 1,600 units, bringing the total residential stock to approximately 257,000 units. Approximately

10,000 units are currently scheduled to enter the Abu Dhabi market by the end of 2019. The majority of expected

supply is focused on Al Reem and Saadiyat Island, offering mid-high quality apartments.

Over the past 3 years, an average of 35 per cent of all expected supply was delivered as opposed to 2018, where

65 per cent of the supply pipeline materialised, said a JLL report. If this rate carries over the next few years, the

market will remain oversupplied which could dampen any potential improvement in prices and rental levels.

"As more supply is expected to materialise in the coming year, residential vacancies are anticipated to increase

further, causing further rental declines. The softening market conditions have forced vendors to decrease asking

prices to attract the reduced level of demand. This has resulted in both homebuyers and tenants having more

bargaining power when it comes to negotiating terms and conditions, rents and sales prices," said the JLL report.

"The rate of adjustment we're now seeing is slower than previously experienced, which we believe is an indication

that prices have reached more realistic levels in several areas of the capital. Prices are expected to continue to

soften in 2019 as 11,000 units are estimated to be delivered, ensuring Abu Dhabi remains an even greater buyer-

friendly market over the next 12 months," said Ivana Gazivoda Vucinic, head of consulting, Chestertons Mena.

"With oversupply continuing to hamper sales, we're seeing developers in the capital, particularly in the off-plan

market, offering a range of attractive incentives to investors and end-users in a bid to bolster the market. Service

charges being waived, reduced municipality fees and favourable payment plans are all now part of the standard

sales package," added Vucinic.

Rental market

In the rental market, rates continued to soften as apartments saw a further 4 per cent decrease in Q4, with a 2

per cent drop for villas from the previous quarter. Annually, apartment rents declined by 12 per cent and villas by

9 per cent, said Chestertons in its Q4 market report.

Many tenants are continuing the flight to quality witnessed in Q3 and taking advantage of the opportunity to

upgrade to larger units with better quality amenities in more popular areas.

The highest average declines for apartment rents were seen in Mohammed Bin Zayed City, Saadiyat Island and Al

Ghadeer, falling Q-o-Q by 5 per cent across the board.

Average rents in Al Reem Island dropped by only 1 per cent from the previous quarter. Annually, it was the

Corniche that remained most resilient, with apartment rents averaging a 6 per cent decline.




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Al Reem Island had the biggest villa rental decline, dropping 5 per cent.

"The recent announcement of government initiatives to stimulate the economy, as well as the introduction of the

new 10-year visa for expats, could see an increase in the investor pool, resulting in an increase in demand in the

residential market. However, in the short term, we expect sales prices and rents to continue to soften," said

Vucinic.


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AFFORDABLE HOUSING TO REMAIN

MAINSTAY OF DUBAI MARKET Tuesday, January 15, 2019

I believe the fundamentals of any real estate market is based around innovation, driven by the changing needs of

the consumer and general economic prosperity. This then is governed by the demand and supply curve and

however volatile it becomes, there is money to be made in the long run. In fact, I have always believed one must

maintain a long-term expectation to be able to fully mature the profits that can be made in real estate.

It is no different for Dubai and the market over the last two years seems to have swung towards buyers. The

customer now holds the key in the bargain. This in turn means it's a win-win situation for property buyers if a wise

investment product is shortlisted.

The real estate market has also shifted to where it should have - the affordable segment. It has become the most

important part of the market and we believe it will drive the growth of the real estate market. As demand for such

real estate surges, policy makers and developers need to focus on the affordable housing market more intensely

as I believe it is not just here to stay, but it will remain the mainstay of this developed and matured real estate

industry.

The good thing is that Dubai's real estate market is one of the most efficiently regulated market where things are

very transparent and investors' rights are well-protected.

Dubai's real estate market is still dominated by the leasehold market and the majority of the emirate's population

remains tenants. If part of the tenants start buying and moving into their freehold homes, the market will witness

a massive boom. The leasehold will then maintain its demand from new migrants to the country served by the

consistently growing population.

The mid-market is the most important segment of the real estate industry. Middle-income families could be

attracted and encouraged to buy properties that they could call a 'home'. However, the key to this is affordability

and making home acquisition less painful to their pockets.

A 25 per cent down payment, coupled with the 4 per cent property registration fees and 2 per cent brokerage

commission, makes home acquisition a costly affair for the middle income group. For a two-bedroom apartment

that is priced at an average of Dh900,000, the 31 per cent initial acquisition cost adds up to Dh279,000. Most

middle-income households will feel the pinch in their hard-earned savings with such a down payment.

This is where developers, banks, real estate regulators and in some cases, large corporations could join hands to

create a proper eco-system to support salaried employees to buy homes.

Most public sector and private sector employees have a house rent allocation between 25 to 40 per cent of their

monthly salary. For an employee earning Dh15,000 per month, they could easily earmark Dh6,000 as house rent

allowance or equated monthly installment for a home. This could help him buy a two-bedroom apartment in

Dubai - if this amount is invested in a monthly scheme, guaranteed by the employer and put in an escrow

account.

If the house rent allowances of some of the well-established corporate entities and large private businesses are

placed in a structured arrangement with banks and credible developers with an agreed and guaranteed price and

payment plan, hundreds of thousands of well-paid employees of these organisations could then check into their

freehold homes.




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These arrangements are not new and have been in practice for ages in different parts of the world. Since the

market is dominated by expatriates, it is impossible to expect government housing schemes. However, with the

new immigration laws offering long-term residency visa schemes, I am confident the volume of people who would

want to never leave the UAE will increase.

The writer is director and partner of Danube Properties. Views expressed are his own and do not reflect the

newspaper's policy.


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TENANTS UPSIZE FROM CENTRAL

LOCATIONS TO OUTER LYING AREAS IN

DUBAI Tuesday, January 15, 2019

Several families in Dubai are moving from centrally located communities to secondary areas. These outer lying

communities offer lower prices and the appeal of moving to a new property.

"We are seeing some tenants move from central locations such as Dubai Marina, Downtown and Jumeirah Beach

Residence out to the suburbs of Dubai such as Mira, Damac Hills and Town Square, for example. There are a

number of reasons for this, but the most common are the price point and the appeal of moving to a brand-new

property. Landlords in the suburbs have to be competitive with properties in central locations and thus they are

offering lower priced rental opportunities and are often willing to accept more cheques," says Lewis Allsopp, CEO

of Allsopp & Allsopp.

However, with falling rents, people are also moving from secondary areas to primary city areas as they become

more affordable.

"The ones who move into secondary areas are those who are upgrading to townhouses that have become more

reasonable or people who are moving from the neighbouring emirates to affordable housing in Dubai," reckons

Sanjay Chimnani, managing director, Raine & Horne Dubai.

Tenants are moving from prime locations such as Downtown, Palm Jumeirah and Springs to outer locations such

as Meydan, Nshama Town Square, Mira, Mudon and Ranches 2. These are all new communities and prices are

cheaper than in the more established areas of Dubai.

"As rent constitutes around 30 to 40 per cent of one's disposable income, these newer locations are around 15 to

20 per cent cheaper than the prime locations. So, cost saving is the prime attribute. Others would be better value,

much more spacious and better quality units," explains Abdul Kadir Faizal, co-founder of crowdfunding real estate

platform Smart Crowd.

While some tenants are taking advantage of lower rents in outer lying areas of Dubai, others are seizing the

opportunity of social mobility and moving into areas once considered beyond their budget.

"It is natural for budget-conscious professionals to want to take advantage of lowering rents. This may allow them

the opportunity to improve other areas of their lifestyle or simply be able to save more. Conversely, families may

associate a better quality of life as the opportunity to move into a community with better infrastructure and

recreational facilities - again as a result of the cost barrier being lowered," observes Nick Grassick, managing

director of PH Real Estate.

With no likelihood of the contraction in rental values to subside, the relocation of tenants to more affordable

homes will continue. This trend will also rise on the back of newer communities with better road and transport

infrastructure getting handed over.

Offering a contrarian view, Allsopp says: "We may see a slowdown of this trend in 2019. There is still an

abundance of tenants moving to and living in central locations and they remain the most searched for areas on

property portals and the highest lead-generating communities. Last year, the population grew by over 6 per cent




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and we could well see that percentage rise again this year in the run-up to Expo 2020. The Expo will create many

jobs and opportunities in Dubai, encouraging people to move to the city. As a result, centrally located

communities will remain hugely popular. People moving to Dubai are attracted to areas such as Dubai Marina,

Downtown and JBR to enjoy the fast-paced, exciting lifestyle the city has to offer."

Centrally located communities are beginning to see some vacancies as landlords haven't adjusted their prices to

the new market level and on par with outer locations. Landlords in centrally located areas need to look at their

price point and the number of cheques they will accept.

"The owners need to adapt to prices in the market. If their houses are not well-maintained or upgraded, it will be

difficult for them to maintain good rents. Many properties will be left vacant because they hope to achieve the

same rent which they were getting three to four years ago. Within centrally located areas, landlords must

renovate tired properties," says Ashley Hawthorne, leasing and property management manager, Espace Real

Estate.

"Gone are the days of big company packages with accommodation paid for. These days, people are finding it

increasingly difficult to pay with one or two cheques. If a landlord is flexible on cheque payments, they will have a

much greater chance of attracting a tenant and find it easier to achieve a slightly higher rental yield," suggests

Allsopp.

Grassick says landlords may provide property management as part of the offering, whereby maintenance and

condition issues are professionally managed by a third party.

"Essentially, it comes down to price. The rent will need to be competitive and in line with secondary locations.

Also, they can offer greater flexibility on payment terms such as instead of one or two cheques, they could offer

six cheques to make their properties more attractive," concludes Faizal.


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DH90 MILLION IS THE COST OF MOST

EXPENSIVE VILLA IN DUBAI Wednesday, January 16, 2019

The most expensive property sold in Dubai in 2018 was a villa in Emirates Hills spanning 28,719 sqft built-up area

for Dh90 million, according to data from Luxhabitat.

The second most costly property sold last year was a unit in the Bulgari Resort and Residences for Dh60 million.

Several other villas in Emirates Hills also exchanged hands for handsome amounts ranging in the millions.

Although the Dubai luxury property sector has performed better than the wider market in 2018, the prime

residential market totalled Dh39 billion, which is 11 per cent lower than the previous year, according to

Luxhabitat.

The top three areas in terms of sales volume were Business Bay (Dh6.9 billion), Mohammed Bin Rashid City

(Dh6.3 billion) and Downtown Dubai (Dh5.4 billion).

"Opening the off-plan market in Jumeirah was a much-needed bolster for the real estate market as it emerged as

the top-performing area in 2018. World Islands, City Walk, Port de la Mer, Jumeirah Bay and Madinat Jumeirah

Living have all contributed to sales in the area. The Jumeirah area has received an overwhelming amount of

interest," said Brigitte Tenbergen, associate director at Luxhabitat.

The average price per square foot for villas that transacted has increased, indicating interest for higher end and

better quality units, the Luxhabitat report said.

Demand for ready-to-move-in secondary market villas has doubled as resident families look to move into villa

communities. Arabian Ranches 2 seems to be a popular area, with a 47 per cent increase in sales from the

previous year, presumably owing to more launches in 2018.

Data indicates that it is more expensive to buy off-plan properties than in previous years, an 8.4 per cent increase.

However, the average size of off-plan units transacted has also reduced from an average BUA of 1,100 sqft to 917

sqft (6.2 per cent).

Andrew Cleator, sales director, Luxhabitat, said: "2019 will continue to be a buyer's market, with great

opportunities for both investors and end-users. Price reductions have already started to wane, with some areas

showing signs of stabilising. This year, we will see even more bullish developer sales incentives being offered. Last

year, we witnessed developers offering DLD fee waivers, free service charges for an initial period and very

attractive post-completion payment plans. The latter was partly due to the UAE Central Bank's reluctance to

increase the mortgage loan-to-value ratio, but I believe this will be addressed in the coming months as part of the

current government stimulus plan.

"Other key drivers to positively affect the market in 2019 include the current interest from international buyers

and institutional investors, especially from China. In addition, the government has recently been strengthening

diplomatic and international business ties with many countries to bolster both tourist and population numbers."


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WILL GOVERNMENT INITIATIVES BOOST

UAE PROPERTY MARKET? Monday, January 14, 2019

The performance of both the UAE and Dubai real estate industry in 2019 will depend on how the market responds

to the raft of government initiatives and regulations announced to stimulate demand.

These include the 10-year residency visa, five-year retiree visa, short-stay transit visa and the decision to allow 100

per cent foreign ownership of onshore companies. The reforms were intended to encourage investment and

retain human capital in the UAE, in turn reversing the current downturn in market conditions.

"Overall market sentiment should improve in the long run as the new visa regulations and economic stimuli will

provide a boost to the UAE's real estate market. However, the benefit of these initiatives is unlikely to have an

immediate impact and 2019 is expected to remain a challenging year for most sectors of the real estate industry,"

said Craig Plumb, head of research at JLL Mena.

"The residential and office sectors have the most potential upside from these new initiatives launched to

stimulate demand," Plumb continued.

"There's no doubt that the new government initiatives will increase demand for real estate, whether it's the 10-

year visa for investors, specialists, scientists and outstanding students or the 5-year visa targeting people aged

over 55 wishing to retire in the country. However, these are strategic initiatives aimed as a long-term contribution

to the economy," said Haider Tuaima, head of real estate research, ValuStrat.

Abdul Kadir Faizal, co-founder of Smart Crowd, said demand will increase as more investors make Dubai their

long-term home and new businesses set up here due to the 100 per cent foreign ownership. "This will create an

environment for entrepreneurship and great employment opportunities in the market," Faizal observed.

According to JLL, around 22,000 units were delivered during 2018, which is the highest for the last five years. This

brought the total residential stock to 520,000 units at the end of 2018.

While JLL estimates more than 60,000 units to be delivered in 2019, actual completions are likely to be far less,

with the average materialisation rate over the past five years being less than 50 per cent.

Residential supply in Dubai is expected to reach 637,000 units by the end of 2020, representing an average annual

increase of 11 per cent.

Dubai's population in 2018 was 3 million and it is estimated to hit 3.2 million by 2021. According to government

sources, 200,000 people have moved to Dubai annually on average in the past five years. However, a vast majority

of this has been blue-collar workers. Dubai has seen a 7.6 per cent growth on average in its population in the past

five years.

"It's not possible to quantify the positive impact of these initiatives. This is partly due to the lack of details

available so far. Like any regulations, their impact will depend upon how they are implemented - it's not clear how

this will work or how easy it will be to avail of the new visas. The impact will be positive - it's a good sign that the

government is recognising the need to stimulate additional demand from new sources. These initiatives are

unlikely to be a 'game changer' in 2019 - but they are a positive long-term trend whose benefit will extend over

many years," added JLL's Plumb.




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There are concerns of supply increasing ahead of demand, with anecdotal evidence suggesting an oversupplied

market resulting in further downward pressure on both prices and rentals.

The residential market in Dubai remains buyer friendly, providing attractive sales opportunities for new entrants

to the market. Traditionally, the majority of expats have preferred renting to owning their home in Dubai, but this

attitude is changing as a result of attractive payment plans from developers and the availability of longer term

residency visas.

According to JLL, both sales prices and rents declined in 2018, with apartments recording average declines of 8

per cent in sale prices. Similar declines were experienced in the villa market with sale prices declining by 9 per

cent in 2018. With supply expected to increase further, sale prices will continue to face downward pressure in

2019.

"Absorption demand for the expected glut of new housing supply over the next few years will likely depend on

high population growth, households moving from being tenants to home owners and residents shifting from the

northern emirates towards Dubai due to improved affordability," added Tuaima.


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RISE IN PUBLIC SPENDING, STIMULUS TO

BOOST GCC Friday, January 18, 2019

GCC countries are expected to grow by 2.3 per cent in 2019 and 2.6 per cent in 2020, from an estimated 2.4 per

cent in 2018, driven by increased public spending and various measures to stimulate private sector, according to

National Bank of Kuwait.

In its Mena Outlook Report, the bank's economists said the region's positive economic growth is backed by

expansive public spending and private sector stimulus, leading regional governments to continue their

infrastructure and development projects, with Saudi Arabia's record budget of SR1.1 trillion.

The UAE, which has announced a series of bold reforms and stimulus programmes to prop up the economy,

approved a budget of Dh60.3 billion for 2019, an increase of 18 per cent on 2018, and also announced Dh180

billion budget for the next three years, with a significant portion amount going towards education and social

development.

Economists at Capital Economics expect the UAE economy to perform better than most expect over the coming

years on the back of higher oil output, fiscal stimulus and preparations for Expo 2020 Dubai. The UAE is about to

reach its crude production capacity target of 3.5 million barrels per day, after allocating $145 billion in

investments over the next five years, NBK said.

NBK's forecast on GCC growth prospects came against a backdrop of increased global economic uncertainty, with

the International Monetary Fund cutting its forecast on global economic growth by 0.2 per cent to 3.7 per cent by

2020, amid concerns over the trade war between the US and China.

An IMF report released in December pointed out that while the GCC countries are open to trade, much less so to

foreign direct investment. "GCC foreign trade has been expanding robustly, but FDI inflows have stalled in recent

years despite policy efforts taken to reduce administrative barriers and provide incentives to attract FDI. Tariffs

are relatively low; however, a number of non-tariff barriers to trade persist and there are substantial restrictions

on foreign ownership of businesses and real estate."

The IMF said the growth impact of closing export and FDI gaps could be significant. "Closing export gaps could

provide an additional growth dividend in the range of 0.2-0.5 percentage point," the Washington-based fund said.

According to the Kuwaiti bank, non-oil growth in the GCC is projected to advance from 2.9 per cent in 2018 to 3.3

per cent in 2019 and 3.5 per cent in 2020. The report said private sector stimulation programmes and productive

infrastructure investments would support non-oil growth over the forecast period.

"With lower oil prices expected in 2019, the fiscal balancing process for GCC countries, except Qatar, will likely be

postponed, as the country decided to quit Opec, freeing it from production cut commitments," the NBK report

said.

The report noted that despite Opec's plans to cut oil output, GCC governments are expected to resume their oil

and gas expansion plans.

For the wider Mena region, Capital Economics forecasts a temporary rebound. "The recovery in the Middle East

and North Africa will gather pace over the rest of this year and in early 2019, but we think that growth will peak

sooner than most expect," it added.




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OIL SURGES 3% ON OPEC GLUT-CUT PLAN,

SIGNS OF US-CHINA THAW Saturday, January 19, 2019

Oil prices jumped about 3 per cent, rising after Opec detailed specifics on its production-cut activity to ease global

oversupply, and on signs of progress in ending the US-China trade war.

Brent crude was up $1.52 to settle at $62.70 a barrel, or 2.48 percent. US West Texas Intermediate crude futures

added $1.73 to settle at $53.80, or 3.32 per cent.

The futures benchmarks posted their third straight week of gains, rising about 4 per cent since the close since the

previous Friday.

The Organization of the Petroleum Exporting Countries released a list of oil production cuts by its members and

other major producers starting on January 1, 2019, to boost confidence in its oil supply reduction pact.

"It's going to send a signal to the market that they're serious," said Phil Flynn, an analyst at Price Futures Group in

Chicago. "And it's probably going to use some peer pressure to make sure compliance stays strong."

The producer group agreed in December to cut 1.2 million barrels per day to support oil prices and shrink an oil

glut at a time of rising supply, especially from the United States. On Thursday, Opec's monthly report showed it

had made a strong start in December before the pact went into effect, implementing the biggest month-on-

month production drop in almost two years.

Fresh signals that the US and China might be nearing the end of their tariff also boosted markets.

"The oil market has been taking the US-China trade war the hardest because China is so central to the demand

side of the equation," said John Kilduff, partner at Again Capital Management. "This is what the market is looking

to seize upon to get past this bump in the road."

A Bloomberg report showed China offered to go on a buying spree of US goods, which investors saw as an

attempt to draw closer to a trade deal with Washington.

21 US rigs closed

Meanwhile, US energy firms cut 21 oil rigs last week, the biggest decline since February 2016, as drillers reacted to

the 40 per cent plunge in US crude prices late last year.

Drillers cut 21 oil rigs in the week to January 18, bringing the total count down to 852, the lowest since May 2018,

Baker Hughes said.

Many of the rigs cut were in the Permian Basin in Texas and New Mexico, the country's biggest shale oil

formation, were the rig count dropped by seven this week to 481, the lowest since August.


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GCC BANK MERGERS TO EASE

OVERCAPACITY, SAYS MOODY'S Thursday, January 17, 2019

Recent merger and acquisition drive among GCC banks, stoked by slow growth and subdued credit demand in the

region, will help the sector by easing overcapacity and boosting profitability, Moody's said.

In a latest report, Moody's Investors Service says mergers will ensure that the banking sector would benefit

through synergies and increased pricing power.

In the UAE, mergers talks are underway among local banks following the successful merger of the National Bank

of Abu Dhabi and First Gulf Bank in 2017 to create the Dh671 billion First Abu Dhabi Bank.

Analysts believe that merged entities will have an increased ability to meet sizeable investment requirements.

In the UAE, the latest round of bank merger talks - the fourth series of consolidation in the UAE's banking history -

have been under way since September 2018. The three-way merger process involves Abu Dhabi Commercial

Bank, Union National Bank and Al Hilal Bank.

Recently, three other Abu Dhabi-listed Shariah banks - Bank of Sharjah, Invest Bank, and United Arab Bank -

publicly denied media reports of another three-way merger.

The Moody's report, "Banking - Gulf Cooperation Council: Consolidation among GCC banks will boost

profitability," said the overcrowded banking sector in the GCC has seen a wave of mergers and acquisitions

announcements in the last year, as falling oil prices hit government budgets, slowing economic growth.

"Slow growth and subdued credit demand in the region is one of the biggest drivers of consolidation," said Ashraf

Madani, a Vice President and Senior Analyst at Moody's. "This has intensified competition for depositors and

borrowers, dampening profits at GCC banks."

The GCC banking sector has many banks serving small populations, driving intense competition and aggressive

pricing policies.

For example, in Oman, where two potential mergers have been announced, there are 20 licensed banks serving a

population of 4.6 million people. This compares with Saudi Arabia where only 27 banks serve a population close

to 33 million.

Consolidation will help stem rising funding costs and improveprofitability in the long run. Despite integration

challenges in the early stages, merged banks will gain market share, have better pricing power and cost synergies.

Analysts said the consolidation trend is fundamentally positive and would improve banks through increased

pricing power as well lowering funding costs for banks. However, existing weaknesses, namely sizeable single

name and sector concentrations, high levels of related-party lending, and asset-quality issues are still

characteristics of banking in the Middle East and remain key features for creditors to look out for.

The potential three-way merger of ADCB, UNB and AHB will create an entity with approximately $113 billion of

assets, making it the fifth-largest lender in the GCC and third biggest in the UAE. Abu Dhabi has also merged

several state investment funds, including Mubadala and Abu Dhabi Investment Council - the latter holding

majority stakes in Abu Dhabi Commercial Bank and Union National Bank, potentially easing the progress of any

merger.




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According to the ratings agency, bank competition in the UAE, where 50 banks serve a population of only nine

million, has increased over recent years as lending opportunities decreased following a decline in economic and

credit growth amid lower oil prices.

Emirates NBD, which came into being after the merger of National Bank of Dubai and Emirates Bank International

in 2007, has assets of Dh477 billion while the merger of Dubai Bank and Emirates Islamic Bank led to the

formation of Emirates Islamic Bank in 2012.


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DUBAI'S NON-OIL PRIVATE SECTOR

GROWTH EASES IN DECEMBER Wednesday, January 16, 2019

Non-oil private sector growth in Dubai eased in December as the three main sectors expanded at a slower pace

compared to November, Emirates NBD said on Tuesday.

Dubai's largest bank said in a report that although total activity continued to rise at a strong overall pace, new

business increased at the second-slowest rate in over two years and employment remained broadly unchanged.

"Inflationary pressures remained weak as input costs rose modestly and firms continued to cut their charges."

The bank's Dubai Economy Tracker Index fell from November's 55.3 to 53.7 in December - the second-lowest

reading in over two years and below the historic average (since 2010) of 55.2.

The report said this signalled relatively muted non-oil growth. Moreover, the average for the fourth quarter of

2018 (53.8) was the lowest of any quarter since first quarter 2016.

Khatija Haque, head of Mena Research at Emirates NBD, said all three of the individual sectors tracked in the

index expanded at a slower pace in December as compared to November, with the construction sector slowing

from the particularly strong 57.5 seen last month to 53.7 in the latest print. Travel & tourism remained the

underperformer, falling from 52.8 to 52.0, compared to wholesale & retail trade's 54.2. "Output in the whole of

Dubai survey remained solidly expansionary, with over a quarter of respondents seeing greater activity, while

nearly a third of firms saw greater new orders, in a positive for future output. The majority also expected future

conditions to improve, with only 5.3 per cent expecting a deterioration over the next 12 months," said Haque.

All three of the key monitored sectors - construction, wholesale & retail and travel & tourism - registered slower

improvements in business conditions in December. Travel & tourism continued to post the weakest overall

growth (52.0), followed by construction (53.7) and wholesale & retail (54.2).

Haque said the squeeze on firms' margins was less than seen in November as input costs grew at the slowest

pace since August, while price discounting also slowed. Only 6.4 per cent of firms reported price cutting,

compared to 16.9 per cent the previous month. Nevertheless, headcount remained flat, with less than one per

cent reporting increased employment.

"December's index reading takes the 2018 average to 55.0 - moderately weaker than the 56.0 averaged in 2017

but nevertheless a more robust reading than seen in 2015 and 2016. Our real GDP growth estimate for 2018 is 2.8

per cent, in line with that recorded in 2017," she said.

Minister of Economy Sultan bin Saeed Al Mansouri forecast that the UAE GDP would grow more than three per

cent in 2019 after recording between 2.5 per cent and three per cent growth in 2018.

The outlook for the UAE economy is brighter than for the rest of the GCC according to an IMF report that

estimates that the six-nation bloc's GDP is expected to increase by 1.9 per cent in 2018 and 2.6 per cent in 2019,

overcoming a dip of 0.2 per cent in 2017.

Emirates NBD Economy Tracker's December data suggested improving productivity in Dubai as, although output

rose strongly, employment was little-changed. This followed a fractional rise in staffing levels during November

and declines in both September and October. Moreover, jobs contracted in the latest month in the construction

and travel & tourism sectors.




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While inflows of new business continued to rise in December, but at a slower pace, rates of expansion slowed in

all three major sectors monitored, most notably in construction.

Meanwhile, the 12-month outlook for business activity dipped to a five-month low in December but remained

relatively strong, the bank said.


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MEET UAE’S FIRST 10-YEAR VISA HOLDERS Thursday, January 17, 2019

These 20 brilliant professors and researchers have become the first batch of expatriates to be granted 10-year

visas in the UAE. All of them are winners or finalists of the Mohammed bin Rashid Medal for Scientific Distinction.

Lahaz Al Ghazali

She is a professor of clinical genetics and paediatrics at the UAE University. She was one of the first scientists in

the world to identify recessive genes that cause more than 40 genetic disorders among Arabs and the first doctor

to describe the phenotypes/pathological traits of genetic disorders in the UAE.

Linda Zou

She is a professor at the Khalifa University. Her research interests include the use of nanotechnology and

membrane science to develop low-energy and high-efficiency water filtration solutions. Dr Linda has six patents

and has published more than 150 newspaper articles.

Lakmal Seneviratne

He is a professor of mechanical engineering and the founding director of the centre of robotics at the Khalifa

University. He is also the assistant vice-president of research at the university. His main research interests are

robotics and automation.

Abdul Rahim Neymar

He is a professor of physiology at the faculty of medicine and health sciences at the UAE University. His main area

of expertise is physiological and pathological mechanisms underlying the respiratory and cardiovascular effects of

air pollution.

Hassan Arafat

He works at the Khalifa University. He made valuable contributions in developing renewable energy technology

for seawater ?treatment in cooperation with researchers from the Masdar Institute of Science and ?Technology

and Massachusetts Institute of Technology, US.

Afaf Kamal El Din

She is a professor of food science at the UAE University. Her research interests are in the fields of food chemistry,

food analysis and healthy food. She has published more than 150 papers in ?international journals on issues

related to food and health.

Wesley Cantwell

He is a director at the aerospace research and innovation centre and a professor at the department of aerospace

engineering at the Khalifa University. His research focuses on aircraft structures, composites, light aircraft

structures and eco-friendly vehicles.

Omar Amin

He is a professor of biology at the UAE University and has many research interests including the biological

application of nanotechnology, cancer biology, cell biology, and biological implementation of MRI.

Omar Yaghi




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He is the founding director of Berkeley Global Science Institute, co-director of the Kavli Energy NanoSciences

Institute and California Research Alliance. Over the last two decades, Dr Yaghi has developed innovative ways to

manufacture new ?compounds and use them in ?several fields.

Ehab Al Saadani

He is a professor at the department of electrical engineering and computer ?engineering at the Khalifa University.

He has received many national and international awards for his contributions to energy systems.

Andrea Machio

He is an associate professor of physics and head of physics at the New York University Abu Dhabi. He explores the

origins of 'mysterious dark elements' of the universe, especially dark energy and dark matter. His research

focusses on astrophysics and he has special interest in numerical simulation.

Abdo Adam

He is a professor at the faculty of medicine and health sciences at the UAE University. His research interests

include the study of Alzheimer's disease, cancer, clinical pharmacy and diabetes.

Fikri Abu Zeidan

He is the head of accidents research group at the department of surgery, faculty of medicine and health sciences,

UAE University. He has contributed to more than 330 international periodicals, journals and books; and has been

doing scientific research for 33 years.

Alaa Aldhan

He is a professor of geology at the faculty of science, UAE University. He has many scientific contributions in

geochemistry, environmental, oil sciences and radioisotopes. He has more than 400 scientific studies to his credit.

Ernesto Damiani

He is the founding director of the cyber physics centre at the Khalifa University. His research focusses on artificial

intelligence, big data, electronic security and cloud processing. He has published more than 600 articles.

Ernst Adgati

He is a professor at the department of anatomy at the UAE University. He is the former head of the priority

research group for diabetes, heart and blood vessels. He focused his research in the field of diabetes and has

published more than 150 articles.

Anas Al Nashif

He is a professor at the department of chemical engineering, Khalifa University. His main research focusses on

chemical engineering and chemical analysis. He has received eight patents from the US and Europe patent offices

and has received several awards.

Lourdes F. Vega

She is an honorary professor at the gas research centre, Khalifa University. She has authored a book on carbon

dioxide and its uses. She has published more than 200 scientific papers and has five patents to her name.

Ghaleb Al Husseini

He is a professor of chemical engineering and the head of chemical ?engineering at Dana Gas. His specialities

include the delivery of non-viral genes and surface modification. He ?won the TIP Innovation Award in ?Abu Dhabi

in 2018.

Hatem Zain El Din




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He is a professor at the department of electrical engineering and computer engineering at the Khalifa University.

His research focusses on renewable energy, intelligent networks, energy systems, ?integration of renewable

energy and its effects on the operation of the energy system.


Back to Index




Page 70



With over 30 years of Middle East experience, Asteco’s

Valuation & Advisory Services Team brings together a

group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property sales

division with representatives based in UAE, Saudi

Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

SALES MANAGEMENT

Our Sales Management services are comprehensive

and encompass everything required for the successful

completion and handover of units to individual unit

owners.

Documents

NEWS BRIEF 03...Residence (380.5 metres), Almas Tower (363 metres) and the two JW Marriott Marquis towers (355 metres). DMCC is the master developer of DMCC. Its Uptown Dubai district