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

MANAGING EDITOR
K Raveendran ravi@sterlingp.ae

MANAGING DIRECTOR
Sankaranarayanan sankar@sterlingp.ae

GENERAL MANAGER
Radhika Natu radhika@sterlingp.ae

EDITOR
Linda Benbow linda@sterlingp.ae

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

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

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

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

RERA neither takes responsibility nor accredits any
studies, research or statistics that are not issued by it.
P.O. Box 500595, Dubai, UAE. Tel. +971 4 3678061 + 971 4 367 2245, Fax +971 4 367 8613
Website: www.sterlingp.ae Email: info@sterlingp.ae
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Kingdom of Bahrain. Tel: 00973 17276682
 payment schemes and mortgages

CONTENTS

3 Open Day Meeting the public

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

8 PERSONALITY MAHMOUD HESHAM AL BURAI

31 Dubai Focus Auctions

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

41 Infrastructure Plumbing new depths

44 Environment Painting a clean picture
45 Appointments Restructuring top management
46 Law & Regulations Questions & Answers, Law 9
2

To improve communication
with customers RERA
launches ‘Open Day’
R
ERA (The Real Estate Regu-
latory Agency)’s Guarantee
Account Department has
launched ‘Open Day’ to
better serve its clients. This is the
first of many moves to enhance
transparency and facilitate custom-
er service. Marwan bin Ghalita, CEO
of RERA said, “In an effort to apply
transparency in customer relations,
RERA is widening the arena of com-
munication between our staff and
customers. These Open Days will
be an entirely new form of commu-
nication. There will be Open Days
for each department in the agency.
We began with the Guarantee Ac-
count Department to answer all of
the questions of investors, develop-
ers and banks.”
Essa al Mansouri, Head of Trust
Account Section said, “With the di-
rections from Marwan bin Ghalita,
our CEO, in his pursuit of transpar-
ency, easing transactions of all
stakeholders in the real estate sec-
tor, guaranteeing customer satis-
faction, and listening to all different
points of views of companies in the
real estate sector, the Guarantee
account department has worked
to provide the sector with distin-
guished customer service. We ap-
ply best practices, are aiming to
help clients solve their problems,
and to give good consultations for
customers who are the heart and
soul of RERA.”
Al Mansouri added, “Every Tues-
day the Department will meet cli-
ents (developers, banks, investors).
There is a special counter for this
service to offer privacy in business
transactions. Moreover, we have
increased the number of counters
from are to there in order to expe-
OPEN DAY
dite service.”
He confirmed that the number
of customers on Open Day, so far,
has increased to a total of 443, This “Every Tuesday
policy has eased the pressure of the Department
customer service on other days of
will meet clients
the week, and has had a positive
effect on customers because of (developers, banks,
the speed of communication and investors). There is
the ability to have all enquiries an-
swered by RERA’s staff.
a special counter for
Khalid Obaid Al Mutaiwei Senior this service to offer
Director, Real Estate Development privacy in business
DUBAI REAL TIMES
Trust Account Dept. said, “The pol-
icy of Open Day has opened a new
transactions.
and direct communication channel Moreover, we have
with customers. This service pro- increased the number
vides a new source of information
about RERA services and eases en- of counters from are
quiries. Furthermore, RERA has im- to there in order to
plemented technological tools to
expedite service”
increase the amount of time saved 3
by customers.”
 PROJECT INDICATOR

Progress (Masaar) What we have

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

T
the developer is undecided
  he on-line Project Indica-
tor was established at the • 31.8% of projects are
beginning of this year, in
There are currently approximately 400 progressing but not yet on
January 2009. We carry out projects already uploaded on the website, site
technical audits on all registered with information on how far their construction
projects and follow up with these
projects every three months. There has progressed. We have now inspected over
4 is a technical team who is out in the 1000 villas and 350 towers.
field, physically visiting the sites,
meeting with Consultants, check-
ing contracts, agreements, build-
ing schedules and other docu-
ments. The team takes photos of
the site, they ask how the work is
progressing – whether there are
any problems or reasons for on-
time/late work. Also, the devel-
oper provides RERA with informa-
tion, and we check this to make
sure that it is still correct. When all
the information (‘masaar’ in Arabic)
is collected the website is updated
within 24 hours.
We are currently aiming to au-
dit 150-200 projects per month.
These will be reviewed every three
months in order to keep the infor-
mation topical. We hope to have
all registered projects audited and
on the website by the end of July.
Then there will be a rotation, and
we will start again with the updat-
ing.
There are currently approximate-
ly 400 projects already uploaded
on the website, with information
on how far their construction has
progressed. We have now inspect-
ed over 1000 villas and 350 towers.
The information is there for all to
see. Just log onto the website to
find out whatever information you


The
RERA
Progress
Indicator




 


 


 

Progress
Bar

Bars
indicate
the
general
stages
of
construction

as
follows:

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

that
the
project
has
not
started
on
site.

that
the
project
has
not
started
on
site.


• A
single
bar
shows
that
works
have


shows
that
works
have

started
on
site,
usually
enabling
works.

started
on
site,
usually
enabling
works.
• Two
bars
show
that
works
have



progressed
into
the
main
contract.

progressed
into
the
main
contract.
• Three
bars
show
that
main
structure

works
are
being
carried
out.



• Four
bars
show
that
structure
is
nearing

completion
and
other
external
and

external
and

internal
works
are
being
undertaken.

• Five
bars
show
that
external
works
are

mostly
completed
and
internal
and

completion
works
are
being
undertaken.
 investors cannot go onto building

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

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

 Red
Arrow:















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

 Black
Circle:














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

 Green
Diamond:






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

 Project
is
substantially
complete.
 to receive and reply to emails as a
want.
There is a key to explain what
the various colours on the icon
mean. We have used traffic light
colours to simplify things, as there
are so many nationalities who have
bought and are willing to buy in
Dubai. Red means that the proj-
ect is delayed. Amber, or orange,
means that the project is progress-
ing according to a revised sched-
ule, while green means that the
project is progressing on schedule.
A black circle with a diagonal line
through it means that the project
is on hold and not progressing.
There is a choice to either view
Essa Al Mansoori, Trust Account – Head of Auditing & Follow-Up the whole list of projects, or type
“We receive a lot of queries from people about transactions in the name of the project you are
conducted before RERA was set up, before the necessity of interested in and to see more de-
Guarantee accounts. They want to know whether the monies for tails, i.e. the developer’s name, the
the project have now been deposited into a Guarantee account. master developer, Trust account
We tell them that their money has been adjusted. We have number and the name of the Bank
looked at expenses, have consolidated all the money and the it is held at.
difference, if any, should have been deposited in the Guarantee If there is anything wrong with
account. If there is a deficit, then it means that the developer has the project, we flag it, mark the
recovered his costs. project on the website, so that in-
We are communicating with the listed Account trustees (banks), vestors can look into the matter.
sending forms for them to complete, have audited by independent We provide the information so that
auditors and then return to RERA by the end of July. These will be others are aware of what is hap-
available for inspection” explained Essa Al Mansoori about future pening and they can deal with the
plans and regulations. information as they want to. This is
a very transparent way of working
and we intend to keep it up.
Some companies have an ad-
vanced webcam system to show
their own investors progress of their
own projects. We, RERA, take our
own photos for our own website.
Here at RERA we have ‘Open
Tuesdays’ when members of the
public can come to the offices at
Land Department to discuss their
property problems. Many of them
the website information, and say
that it has meant that they have
made fewer trips to the heavily
congested area, not to mention
clearing up possible problems and
DUBAI REAL TIMES
arguments before they became
major issues. Usually, individual
check on their investments, and


5
first step.
 VALUATIONS
Taqyeem
By Linda Benbow
B
orn and bred in Dubai,
educated in UK, Mohamad
Khodr Al Dah, has been the
Head of Taqyeem (mean-
ing ‘Valuation’ in English) at the Real
Estate Appraisal Centre for a few
months. In London, UK, he was a
structural engineer designing build-
ings after gaining his degree at Ox-
ford. He openly admits that he is
not a qualified Valuer, but stresses
that his engineering exerience has
helped him a lot in his new role.
“Our job is to make sure that
professional Valuers in Dubai get
licensed and that they undertake
their work in a professional man-
ner within a regulatory framework,
which we will provide. We have
drafted new laws which are cur-
rently going through the procedure
of acceptance, including getting le-
gal comments and responses from
various specialists in the real estate
market.
DUBAI REAL TIMES
6 censing.
“My work experience has been in the private
sector, and I am looking to run this government
department the way a private company would
be run” says Mohamad Khodr Al Dah, Head of
Taqyeem, Real Estate Appraisal Centre
Simply speaking, we have speci-
fied valuation Do’s and Don’ts, a
code of ethics along with a descrip-
tion of who can register as a valua-
tion company and as a Valuer. There
will be two types of registrations: (1)
a company (to ensure they have an
office to work from, insurance etc.)
and (b) individual Valuers (working
professionals).
We will be organising courses to
inform companies of the new laws.
We will also be organising other
courses for under-graduates, young
people who want to enter the trade,
those who want to change careers,
etc. It will aim at giving people the
appropriate qualifications and li-
We already have applications
from companies in the market who
were approached for their opinions
before drafting the laws. We have
the support of major companies in
this field. There was recently a sign-
ing of an MoU (Memorandum of
Understanding) with RICS (Royal In-
stitute of Chartered Surveyors), UK’s
professional and well respected in-
stitute, who is providing us with as-
sistance on various fronts.
My previous work experience
has been in the private sector, and
I am looking to run this government
department the way a private com-
pany would be run. We are happy to
see people and listen to their views.
No-one is absolutely right, nor ab-
solutely wrong. Patience is key at
the moment. Lots of companies are
excited about this and want to reg-
ister now, but we are not ready to
accept them yet. We will let them
know when the doors are open.
When the laws are passed we
may organise a conference to tell
the property professionals about
them, and the publications we are
currently working, i.e. Valuation
methods, Codes of conduct and
other technical books.
It is interesting to see a bigger
picture. We are all small cogs within
a big wheel. My previous job was
to liaise with engineers, architects,
contractors and clients at the first
and second phases of building.
Now, I am seeing things at a third
stage, when the building has been
completed; and we are trying to
regulate those who must put a val-
ue on it. It’s a different stage of the
procedure.
I have worked for a long time
abroad and am quite used to a
regulatory, rigorous and systematic
way of carrying out procedures, es-
pecially in the building trade. That
ethos and mentality has helped me
do the job that I am doing now. As
well as drafting new application
forms, I have also drafted a com-
plaints form as I know that both will
be needed, especially in the early
days of our work.
We have been in touch with an
international institute with the aim
of providing accredited qualifica-
tions to those who attend our cours-
es which will explain our laws and
our regulations. These will be inter-
national qualifications which can be
carried from country to country.
Hopefully this will prove our
good intentions to those who may
think that we just provide courses to
make money. This is not so. We wish
to follow good, well thought out
laws in a transparent manner. And
that is exactly what we, and those
who work in this country, will do.”

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

such as oil, gold, other valuable minerals etc., and with some limita-
tions in relation to height of structures.
The concept of the price:
The price is the standard defined by the value of money. Capitalist
economy is based on the principle of the price, meaning that there is a
price for everything and there is no economic activity without a price.
Price of capital is assessed the way things are distributed, for example,
the number of houses in the world is not enough for the entire popu-
mand and many other data for an accurate appraisal of the property.
Failure or mistakes in accurate assessment or appraisal of the real
estate valuation can result in serious risks. The fact is that a real estate
valuation, in the absence of oversight by competent authorities, may
make people turn to non-specialists whose wrong appraisal methods
can result in wrong prices to cause random turbulence in property
markets that can ultimately affect the global economy. The service of
professional real estate appraisers shall limit such anomalies in real es-
tate market. 7
 RERA PERSONALITY // PROFILE
The core of
the matter
By Amal Abdul Rahim Al Sahlawi
I
t doesn't take much time to
realise how ambitious and mo-
tivated Mahmoud Al Burai is.
Just by looking at this record of
achievements you quickly get the
impression that this man who is still
in his twenties is continuously a step
ahead with regard to achieving his
vision for Dubai. Moreover, he will
clearly stay in the forefront even if
faced with a tornado of challenges.
Mahmoud al Burai is one of the
pioneering leaders who joined
RERA, which is full of many young,
promising thinkers. He landed the
position of Director of Real Estate
Sector Development. Mahmoud's
department is considered the core
that RERA relies on to make impor-
tant decisions related to regulating
the real estate sector, especially dur-
ing these critical times. His depart-
ment is also the most trusted source
for developing the knowledge and
expertise of real estate experts in
Dubai.
Mahmoud graduated from the
American University in Dubai, ob-
taining his bachelor's degree in
Electrical Engineering. Immediately
after graduation, Mahmoud worked
for Dubai Holdings as a Real Estate
Development Associate, then was
DUBAI REAL TIMES
promoted to a Senior Strategic Ana-
lyst. His passion for the real estate
industry motivated him to continue
his studies and earn a Masters De-
gree in Real Estate Science from the
National University of Singapore.
Mahmoud is currently pursuing his
MBA at the American University of
8 Dubai. His passion became study-
ing the strengths and challenges in
Mahmoud al Burai
the market, and monitoring what
Dubai can continue to do in order
to become the number One refer-
ence for real estate globally. By
joining RERA as the Director of Real
Estate Sector Development, Mah-
moud felt that it was time to apply
all he has learned in his studies and
help create a stable real estate mar-
ket that offers fair opportunities for
all the stakeholders in this sector.
By joining the pioneers of real
estate regulation, Mahmoud start-
ed the initiative for strategic part-
nerships with many international
real estate associations, taking RERA
global. He became a member of a
number of these associations, such
as ARELLO and truly represented
Dubai well at their last conference
in the USA. The way he views RERA
is a combination of admiration, op-
timism, and faith that this organisa-
tion will successfully balance the
modern day needs of the real estate
sector while maintaining market
ethics and its traditional values.
Mahmoud quickly realised that
the amount of responsibility RERA
employees take on makes them
always cooperate, stick together to
face the challenges of the real es-
tate sector.
As a leader in RERA, I asked Mah-
moud about the elements that
each leader should have. He com-
mented that there is a huge differ-
ence between a manager and a
leader. While a manager may have
authority, he cannot force people
to achieve his vision. The leader
has a quality that makes him natu-
rally influential over others, and
holds such a vision that he may be a
leader even if without a title. A true
leader doesn't have anything to do
with position or scholastic achieve-
ments. This mentality is reiterated
by His Highness Shaikh Moham-
med bin Rashid al Maktoum, Ruler
of Dubai, who has given many dif-
ferent distinguished meanings to
a ‘leader’. HH Shaikh Mohammed
has revolutionised and changed
the way people typically think of a
leader and what constitutes good
government management.
Upon mentioning HH Shaikh
Mohammed, one can easily see how
Mahmoud has been influenced by
His Highness' journey. He is proud
to be one of the generations raised
by the beautiful thoughts and ideas
His Highness has brought into so-
ciety. This has always made Mah-
moud a better achiever and a real
member in Dubai's development.
Mahmoud always quotes HH Shai-
kh Mohammed, "the successful team
who can make 1 +1 = 11 not 2".
Because each success has chal-
lenges, I asked him about these. He
said that the first enemy of success
is fear. Sometimes, when people
fear your success and talents, it
makes them stop giving you more
opportunities because they know
you will succeed/arrive there but
they hope they can pull you back as
much as they can – out of jealousy.
About his weaknesses, Mah-
moud claims his faults are hasti-
ness and the contradictions which
is so typical for anybody in their
20's. And he is really proud that he
doesn't recognise the impossible,
he trusts his abilities and he cares
about people around him. He is
always moving forward, he doesn't
look back except for trying to learn
a lesson from the past. He always
quotes HH Shaikh Mohammed, "in
the day there are 86,400 seconds. If
you cannot invest every second then
you should leave the place for some-
body else". His ambitions make him
sleepless but he always tries to find
time for friendships, watching mov-
ies and reading. He loves poetry
and thinks he has good taste in lit-
erature. Mahmoud is also a skilled
Arabic hand writer.
On another level, Mahmoud cher-
ishes his gift of reading and know-
ing people well. At the moment he
is studying for his MBA with a strong
focus on Finance. I asked him what
words he feels can best explain him.
He said ‘”a vision for the future". His
ambition makes him want to always
look to the future and look for the
best in tomorrow.
Family is the chief reason for the
successful, wonderful personality
that he has. He was raised in a home
where no one settles for the norm.
He says that in life if you please God,
if you work for your country, make
your leaders proud of you, and make
your parents pleased, then you have
heaven on earth.
What does Mahmoud dream of?
He said that he will be a student
forever. That he will always listen
to and learn from life's experiences.
He will always have a young heart
and that this will keep him one
step ahead. Achieving the vision of
RERA and Dubai will be Mahmoud's
dream that he is devoting his time
and effort right now to accomplish.
He is not ready to give up on this
one yet.
 AFFILIATIONS

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

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

confirmed during a meeting in the frastructure which will ensure the

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

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

Land transactions on 4 June

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

Transactions on 11/06/2009

Property Type Transactions Value (Dh)

ExistingBuilding 8 63,138,638

Open Plot 1 697,000

Villas 19 43,531,075

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

A total of 52 sale transactions were registered with the Land

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

Transactions and sales

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

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



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

Land sales transaction

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

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

12 
 

Land Transaction Summary Villa sales transactions
Total No. Of Value Total Area
• Total number of mortgage transactions of the districts was 93 with a
total value of Dh143million 331 thousand square feet.
•
Sales
Emirates Hill 3rd had the highest number of sales which with 56 sales
Sales 590 12.690 M 13,208 thousand transactions.
Mortgage • The highest value of sales was achieved by Emirates Hill 3rd district with
205 1,141 M 3,272 thousand
Dh69million.


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

Total value of flat sales transaction (Dh m)

Villa mortgage transactions

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


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

Total value of flat mortgages transaction (Dh thousands)




Total value of mortgage transactions (Dh million)

DUBAI REAL TIMES


 


Flats transactions summary Villa transactions summary

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

 
 13
 MARKET TRENDS & ANALYSIS // RESIDENTIAL
Residential report
I
n early May, Landmark Advisory
released its free Q209 Dubai &
Abu Dhabi Residential Real Es-
tate Report. The independent
report analyses multi-source trans-
action data and other statistical
trends, with a focus on master de-
velopers.
“Public research helps the mar-
ket by allowing all stakeholders to
compare free information,” said
Jesse Downs, Director of Research &
Advisory Services at Landmark Advi-
sory. She added that “access to mul-
tiple sources improves objectivity.”
For example, Ms. Downs explained,
“since mortgage activity is low, cash
buys constitute a significant portion
of transactions. Therefore, to accu-
rately assess price trends, it’s critical
to have access to datasets contain-
ing both transaction types.”
Buyers and renters are show-
ing renewed willingness to pay for
better units and better locations.
“Falling prices create excellent op-
portunities that boost demand. In
April, we observed strong leasing
and higher sales volumes,” said Ms.
Downs.
In Dubai, Emaar is faring best in
terms of demand and pricing. Ac-
cording to Ms. Downs, “with a flight
to quality clearly underway, end-
user preferences are differentiating
prices in favour of quality develop-
ers like Emaar and preferred loca-
tions like Dubai Marina.”
In Q109, Emaar master develop-
DUBAI REAL TIMES
14
Charles Neil
ments accounted for approximately
two-thirds of sales and 57 per cent
of new leases. More specifically,
units developed directly by Emaar
represented over half of sales and 39
per cent of new rentals. “Residents
in Dubai see Emaar as a source of
quality, not only for master-planned
communities, but also for individual
buildings,” said Ms. Downs.
Dubai Marina was the most pop-
ular area among renters, capturing
30 per cent of all new annual leas-
ing contracts. Emirates Living came
in second, at 16 per cent. Isolating
apartments, Dubai Marina scored
30 per cent of all new apartment
contracts. For villas, Emirates Living
dominated, with 40 per cent of new
villa rentals, followed by Mirdiff and
Jumeirah/Umm Sequim.
Landmark Advisory’s Q209 Dubai
& Abu Dhabi Real Estate Report
is available for download on their
“Our new online
calculators feature
an easy-to-use
system that give
the tools directly
to the buyers to
work out what kind
of home they can
afford based on
their monthly budget
and create various
scenarios to decide
whether now is the
right time to invest”
website: http://www.landmark-advi-
sory.com.
New online
calculators to assist
prospective buyers
Responding to the changing needs
of prospective home buyers and
investors in the Middle East market,
Landmark Properties has announced
a set of new online calculators de-
signed to help create scenarios that
answer many questions arising today
regarding real estate needs. Ques-
tions include the mortgages they
can afford, whether to rent or buy a
home, and potential returns on in-
vestment on properties available in
the UAE.
Charles Neil, Chief Financial Of-
ficer, Landmark Properties, explains
how the new suite of tools – includ-
ing a ‘Rent vs. Buying Calculator’ and
‘Buy-to-Let’ Calculator – empower
clients with the tools to feel com-
fortable with any property decision
they may choose to make. “Our new
online calculators feature an easy-
to-use system that give the tools di-
rectly to the buyers to work out what
kind of home they can afford based
on their monthly budget and create
various scenarios to decide whether
now is the right time to invest.“
Having developed the software
for the new calculators in-house and
trained the company’s team of con-
sultants extensively on how to use
them, Neil continued, “Landmark
Properties is investing in both the
market and also our staff at a time
that the industry is undergoing a
corrective change. We want our
clients to feel 100 per cent comfort-
able with any purchase they transact
with us, and we felt that by offering
them these new media tools, they
are in a stronger position to decide if
the opportunity is in their best inter-
est. Traditional real estate practices
are not enough in this market - cli-
ents need access to greater market
intelligence and we have enabled
our consultants to provide more
informed and scientific insight to
them.”
In addition to having a tradi-
tional mortgage calculator publicly
available on its website, Landmark
Properties has also created a reverse
version which enables users to in-
put their own monthly budget and
calculate what price of home they
can afford based on mortgage pay-
ments, terms and interest rates.
A second set of more complex
online calculators are available
through a meeting with any Proper-
ty Consultant at Landmark Properties
who underwent rigorous training on
the use and outcomes of the calcula-
tors. Prospective buyers are guided
through the different calculators to
understand the analysis on whether
to rent or buy a home, as well as a
forecasted return on investment
(ROI) for a ‘buy-to-let’ flat or villa.
 MARKET TRENDS & ANALYSIS // FINANCIAL ROUNDUP
Adjusting payment schemes
to fit market conditions
Sherwoods will be providing more flexible services and packages to complement current
industry initiatives to adjust pricing and payment strategies which better reflect market
expectations and conditions
“C
urrent market condi-
tions call for more at-
tention to customer
needs and expecta-
tions, which has become our primary
concern as we enter into the ratio-
nalisation phase following the start
of the credit crunch. We have to be
more flexible as Dubai streamlines its
property business in anticipation of a
steady industry rebound towards the
end of the year. Times have changed
and developers simply cannot prior-
itise the project over the client any-
more,” said Iseeb Rehman, Managing
Director, Sherwoods Independent
Property Consultants.
Recent developments such as the
introduction of a domestic rental in-
dex by the Real Estate Regulatory
Agency (RERA) are already creating
greater market stability and optimism.
Sherwoods expects other trends such
as increased developer mergers and
acquisitions and further reductions in
construction costs to expedite market
recovery in the last two quarters of the
year. Sherwoods intends to capitalise
on the opportunities being opened
up by the current transition period
through several strategic operational
initiatives as well as attractive offers
for its clients.
HSBC Bank Middle East Limited,
which had drastically cut back on
mortgage lending due to the credit
crunch, has raised its loan-to-value
ratio for financing upto 75 per cent
on completed villas, 70 per cent on
completed apartments and 50 per
cent on off-plan units. Abdulfattah
Sharaf, CEO of Personal Financial
Services, HSBC Middle East, said the
offer is mostly aimed at “end-users
who have recently faced acute diffi-
culties getting affordable mortgage
finance.”
Dubai home financing will return
once property values reach the me-
dian level of affordability, according
to Barmak Besharaty, Managing Di-
rector of Almas Capital. “In terms
of mortgage finance, banks are
looking at values coming down and
they don't want to be stuck with an
asset that's declining in value,” he
explained.
Besharaty defined the median
national affordability level as the
bar at which middle income fami-
lies could get on the property lad-
der: “When defining the median I'm
saying that you have to take out the
labourers, who are transient and the
top-end luxury group. What is hap-
pening is good for Dubai but very
painful. A lot of developers were
offering luxury lifestyles that were
beyond what residents could afford,
income was nowhere near property
averages. Luxury developers will see
their projects turned into affordable
units, not because of government
initiatives, but because this is the law
of economics.”
“We all knew that there was go-
ing to be a downturn in 2009/2010,
but the thing that took everyone by
surprise was the speed with which
it hit us,” said Stephen Ashford, Se-
nior Director, Development at Om-
niyat Properties. “Ultimately, it's a
good thing, and it is forcing people
to rethink business models. This is
because the type of market that we
had, which centred around off-plan
sales, requires a large amount of
debt. This is a market where every-
thing is about cash flow. A developer
can't complete if customers renege
on cash flow. The problem in this
market is there's no debt to be had,
no financing available.”
But things have been changing
quickly from one week to the next.
Days after this discussion group met,
a successful loan was established
to finance the extension of a major
shopping, commercial and residen-
tial complex in the city.
Badr Al Islami, the Islamic Bank-
ing Division of Mashreq, and Stan-
dard Chartered Saadiq along with
Abu Dhabi Islamic Bank PJSC,
Dubai Islamic Bank, Emirates NBD
and First Gulf Bank, Ajman Bank
and Arab African International
Bank successfully arranged a $347
million Dual Currency Syndicated Is-
lamic Finance Facility for Al Ghurair
Centre LLC. Proceeds of the facility
will be used to finance the expan-
sion of Al Ghurair City.
Mubashar Khokhar, CEO of Badr
Al Islami, praised the excellent coor-
dination shown between the bank
group and the client in a tight market
to bring this deal to a successful clo-
sure, highlighting the return of con-
fidence to the market, despite an in-
ternational financial crisis. The strong
support by the banking community
for this Islamic deal is based on pure
merits and he would encourage oth-
ers to tap into Islamic financing.
Steve Perry, the Regional Head
of Syndications, Mena, Standard
Chartered, also echoed these sen-
timents and added that “The suc-
cessful closure of this transaction is
a clear demonstration that there is
still credit appetite available for well-
established and robust businesses
operating with the UAE.”
DUBAI REAL TIMES
15
 COMMENTS

Developers’ rights clarified

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

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

that if a purchaser failed to remedy
his breach within the 30-day notice
period, the developer was entitled
to cancel the contract and retain not
more than 30 per cent of the amount
paid by the purchaser towards the
purchase price at the date of termi-
nation. The developer was required
16 to refund the remaining 70% to the
purchaser.
ment to retain 30% of that amount
may not cover the developer’s out-
of-pocket marketing and agent’s
fees in relation to the sale of the unit.
The developer would either have to
bear the balance of its loss or take
court action against the purchaser
to recover the balance.
On 10 November 2008, the Land
Department issued an Administrative
could retain all money paid by the
purchaser until the developer resold
the property.
The Administrative Circular stated
that Article 11 only applied to con-
tracts executed after the enactment
of Law No. (13) of 2008, and that ter-
mination of any contract executed
prior to enactment of Law No. (13) of
2008 is governed by the terms of the
Therefore, a law was required to
be enacted to legally amend Article
11.
Amendments to Article 11 ef-
fected by Law No. (9) of 2009
Application of Article 11
New Article 11(6) clarifies that Ar-
ticle 11 does not apply to plot sale
contracts where off-plan sales in the

plot have not commenced. In such
cases, termination of the contract
must be conducted in accordance
with the terms of the contract.
Apart from these plot sale con-
tracts, new Article 11(7) states that
the provisions of Article 11 apply
to all other contracts, regardless of
whether they were entered before
or after the law came into effect.
Therefore, all real estate unit con-
tract terminations from the date of
publication of Law No. (9) of 2009
must be conducted in accordance
with Article 11.
Purchaser’s default provisions
Law No. (9) of 2009 introduces a new
method for calculating how much a
developer can retain under Article
11(2) if a purchaser defaults in his
obligations under a contract for the
sale and purchase of a real estate
unit.
Under the amended Article 11(2),
the amount which a developer can
retain if a purchaser does not rem-
edy his breach within the 30-day
notice period given by the Land De-
partment under Article 11(1) (which
remains unchanged) depends on
how much of the development has
been constructed. The relevant
categories of construction and the
amounts which the developer can
retain are:
(a) If the developer has completed
not less than 80% of the devel-
opment, the developer may re-
tain all of the amounts paid by
the purchaser and may request
the purchaser to pay the unpaid
amount of the purchase price
stated in the contract. If the pur-
chaser does not pay the remain-
ing amount, the developer can
request the sale of the real estate
unit at public auction to obtain
the remaining amount.
(b) If the developer has completed
not less than 60% of the develop-
ment, the developer may termi-
nate the contract and retain not
more than 40% of the purchase
price stated in the contract.
(c) If construction of the develop-
ment has commenced but has
not yet reached 60%, the devel-
oper may terminate the contract
and retain not more than 25% of
the purchase price stated in the
contract.
(d) If construction of the develop-
ment has not yet commenced for
reasons outside the developer’s
control and without any neglect
by the developer, the developer
may terminate the contract and
retain not more than 30% of the
amount paid by the purchaser
towards the purchase price.
“Construction” in paragraphs (c)
and (d) above means that the devel-
oper has taken possession of the de-
velopment site and has commenced
construction works in accordance
with the designs authorised by the
competent authorities.
In relation to the timeframe for re-
funding any balance amount to the
purchaser, new Article 11(4) states
that the developer must refund this
amount within the earlier of one
year from the date of termination or
60 days from the date that the devel-
oper resells the real estate unit.
Cancellation of Project
New Article 11(5) gives the Real Es-
tate Regulatory Agency (“RERA”) the
power to cancel a real estate project.
If this occurs, the developer must
return all amounts collected from
purchasers in accordance with the
procedures stated in Law No. (8)
of 2007 Concerning Guarantee Ac-
counts of Real Estate Developments
in the Emirate of Dubai.
This Article states that RERA must
produce a report in relation to the
cancellation, however it does not
specify the criteria which RERA must
apply when deciding whether to
cancel a real estate project.
Conclusion
DUBAI REAL TIMES
The amendments to Law No. (13)
of 2008 contained in Law No. (9) of
2009 strike a balance between the
rights of developers to recover their
losses on termination of a contract
following a purchaser’s default and
the protection of purchasers, and
we anticipate that the amendments
will be well-received in the real es- 17
tate sector.
 COMMENTS
Technology can save
millions of dirhams
The real estate and construction Industry is looking for best practices to face the future
T
he real estate and construc-
tion industry is currently fo-
cusing on possible savings
and managing efficiencies
– especially with, and through, facili-
ties management. The continuous
growth of facilities management
was also the topic of FM Expo held in
May. Sustainable planning, construc-
tion and management are more im-
portant than ever. Why these topics
are relevant, is explained by Uwe
Forgber, Conject’s Director in Dubai,
a pioneer in providing software for
the real estate and construction in-
dustries.
“We have been assisting clients
with facilities management for years.
In Germany, it has been a classic top-
ic for numerous years, while in Dubai
it is still under developed. Previously
project developers only had their
sights set on the planning and con-
struction phases, now the effects of
this shortsightedness has hit them
full force. Many buildings are still
being realised – but who will be op-
erating them and how?” comments
Forgber. “For this reason a transfor-
mation is underway. Especially in
times of crisis it is now vital to learn
DUBAI REAL TIMES
from mistakes made in the past.”
conject developed a web-based
software platform supporting all
core processes of real estate projects
and existing buildings - from con-
struction planning and building to
operating (Facilities Management),
selling and marketing. With its FM-
18 software the company concentrates
on all relevant processes needed
Uwe Forgber
to optimise the management of a
building. For example when cities
have to manage millions of square
metres of office space, it is unimag-
inable to do this without techni-
cal support. The perfect example
is Berlin, the capital of Germany,
which saved more than 160 million
Euros (Dh784 million) in three years
by deploying the new technology.
State owned areas could be used
and managed more efficiently. Not
only large office complexes were
part of the optimisation plan, but
also buildings divided into small
sections, as well as specialised
properties such as police and fire
stations, schools and court houses
were included. Restoration, main-
tenance and service, as well as sup-
port and contract management are
important factors for the conserva-
tion of value in property and real
estate.
Together with conject, private
companies as well as public admin-
istration can manage their proper-
ties and real estate projects com-
petently, based on clear and up to
date information. Investments, for
example for maintenance or energy
savings in buildings, can thus be
structured efficiently and controlled
object by object.
Uwe Forgber believes what
happened in Berlin can be easily
achieved in the Middle East: “In a
short time frame Berlin achieved the
entire implementation of the sys-
tem. Today Berlin is well positioned
commercially and also enforces
strict cost management policies.
With conject you choose a system
displaying exactly those processes
which real estate experts urgently
need to carry out in their daily busi-
ness; tracking of measures (property
inspection, construction project
control) or area management (con-
tract management, concentrated
use of space, CAD) and portfolio
management (strategic area man-
agement, benchmarking).”
What is needed in Germany is
also in demand in Dubai and the
entire region. Managers are able to
reconstruct an exact evaluation of
surface area utilisation: how much
space is available and where? Which
areas can be combined or even
sold? Basically which areas can be
brokered?
“The company makes all of this
information available conveniently
and concentrated into one plat-
form”, states Dr. Uwe Forgber. He fur-
ther adds: “All you need is an internet
connection.”
Conject is an internationally operating
German software house, with over 25
years of experience providing business
process management solutions for the
real estate and construction industries.
Since its establishment, over 3,000 cor-
porate customers and 60,000 users
rely on it with an increasing number
of flagship projects for major corpora-
tions such as Dubai World Central, Mil-
lennium Development International
and Adidas Middle East.
Back to basics
By Chris Dommett, CEO of John Charcol Dubai
T
here has been much debate
in recent weeks on whether
the property market and
the economy of Dubai have
bottomed out or even started a re-
covery. This debate was fuelled by a
report by HSBC indicating that banks
have started to relax their lending
terms; and buyers and sellers of prop-
erty are reaching closer agreement
on what represents a correct price.
The number of property listings has
decreased, suggesting that many
potential sellers have decided to re-
tain their property until the market
improves and most of the distressed
sale bargains have been taken up by
those with cash or lucky enough to
qualify for a mortgage. Transaction
volumes remain very low though,
and I believe it is still too early to say
with any confidence that the worst is
over. We have the traditionally quiet
months of summer and Ramadan to
come, and the general consensus
is that we will only really see some
movement in the market in the last
quarter of this year or the first quar-
ter of 2010.
Provided that the fundamentals
of the Dubai and UAE economies
remain strong, and the recent rise
in the oil price is a positive sign, we
should come through this crisis in-
tact. It should even make us stronger
and more competitive on the global
scene as we learn from the lessons
of the worst global economic melt-
down since the Great Depression.
My optimism in this is based on signs
that in many areas of the economy
we are getting back to basics and
away from the unsustainable behav-
iour that was so prevalent during the
boom times.
The legal framework relating to
real estate is gradually coming into
place and this is a fundamental re-
Chris Dommett,
Banks are also getting back to basics in their
lending, with conservative loan to value ratios
and an emphasis on the borrower’s ability to
repay the mortgage from his or her salary or
business income
quirement for sustainable future
growth and investor confidence.
Developers are also being forced to
adopt the business models of more
mature markets whereby they do
not rely solely on off-plan sales and
continuous stage payments from
buyers to fund construction. Off-
plan sales have completely dried up
and the emphasis is moving to good
quality, well located, finished prop-
erties being purchased by people
who intend to live in them. These
buyers will typically require a mort-
gage to buy the property and banks
prefer this type of applicant to those
looking purely to invest. Owner oc-
cupiers with a single property fare
much better when seeking a mort-
gage than the investor with mul-
tiple properties in various stages of
construction.
Banks are also getting back to
basics in their lending, with conser-
vative loan to value ratios and an
emphasis on the borrower’s ability
to repay the mortgage from his or
her salary or business income. Gone
is the assumption that the value of
the property will continue to rise
and security of the mortgage is
now regarded as a distant second-
ary source of repayment after the
borrower’s regular income. A quiet-
er and more stable property market
will mean borrowers will keep their
mortgage for longer, and while this
might deprive the banks of fee in-
come in the short term, it compen-
sates for this by offering longer term,
sustainable interest revenue and a
more established relationship with
their customer.
The mortgage products them-
selves have so far been basic vanilla
offerings, whether in conventional
or Islamic form, and this is likely to
continue until banks have regained
their confidence. A more stable mar-
ket and a sounder legal infrastruc-
ture should give them the opportu-
nity to innovate on their products,
meaning greater choice for the con-
sumer, and a closer match between
the products and the real needs of
the borrowers. In the meantime
however, what the market needs
is the greater availability of basic
mortgages to allow people living
and working in Dubai to own their
own home at an affordable rate. This
gives them a longer term stake in the
future of the city, with their property
regarded primarily as a home.
For many in Dubai, the correc-
tion in the property market and
the subsequent return to basics has
been very costly. They purchased at,
or close to, the peak and are now
saddled with negative equity and a
mortgage they can scarcely afford.
However, having decided to stick
DUBAI REAL TIMES
around and weather the storm, their
best hope to recover their invest-
ment while enjoying a good quality
of life is for the market to stabilise
and then grow in a well regulated
and sustainable fashion. The best
way for this to happen is for every-
one involved to get back to basics
and to remember these basic values 19
for the future.
 COMMENTS
The power of rental in an
economic downturn
By Phil Burns, MD Aggreko, Middle East
A
brief scan of any recent
newspaper, magazine,
journal, blog or podcast
will reveal that there is only
one subject on the minds of writers
and journalists around the world:
the current economic crisis. Type the
word ‘economy’ into a google news
search and you’ll quickly be directed
to related searches such as ‘reces-
sion’, ‘inflation’ and ‘unemployment’.
Scholars, journalists, political pundits
and bloggers have all been putting
forth their opinions on the subject- a
myriad of arguments and discussions
giving explanations of how the crisis
has been allowed to occur, who is to
DUBAI REAL TIMES
blame and what impact the crisis is
having upon companies, industries
and individuals.
Although the arguments as to
what exact combination of factors
precipitated the economic crisis will
likely still be under discussion for
years to come, the impact of these
20 factors on the economy has been
far less debatable. Lack of liquid-
ity, reduced cash flow and inabil-
ity to finance are problems facing
companies of all sizes and in all
industries around the world. In ad-
dition, many companies are facing
general uncertainty in the market,
with many projects being put on
hold or cancelled. These factors
are causing many companies to re-
evaluate their purchasing policies
and to look at the benefits of using
rental providers, particularly when
it comes to heavy equipment and
machinery.
For many companies, the sudden
lack of liquidity in the market initially
came as something of a shock after
years of readily available funding
and loans. Now, almost a year into
the economic crisis, financing of
major projects is still a challenge for
many companies, particularly those
operating in regions which have
been hardest hit by banking scan-
dals. For those companies which re-
quire large equipment, whether for
projects or to run their production
facilities, this lack of available funds
creates two fundamental problems.
First, can the company justify a large
down-payment which will further re-
duce their capital base? And second,
is the company able to find a bank
which is willing to finance the large
down-payment on terms which are
not exorbitant?
The past year has revealed a
large shift in the way that compa-
nies manage their books; whereas
in early 2008 many companies were
happy to continue following the ad-
vice of market economists urging
them to leverage their assets wher-
ever possible, the approach in 2009
is for cost-cutting and reduction of
large capital expenditures wherever
possible.
In order to do this, many compa-
nies are choosing to rent rather than
purchase equipment, especially
when it comes to large equipment
such as power stations. In recent
years, with the economy booming
and industry growing, one of the
most common reasons for a compa-
ny choosing a power rentals energy
solution has been timing. During an
economic up-turn, the lead-time for
the purchase of generation equip-
ment can be anywhere up to two
years, meaning that companies
which need power urgently will find
a rental option very attractive, due
to the ‘fast-track’ aspect of rentals.
However, the current financial tur-
moil is encouraging companies to
consider rental for different reasons,
such as how to better utilise work-
ing capital and to ensure that it is not
tied up in large capital purchases for
items such as power plants.
The advantages of renting
power are also strong in an eco-
nomic down-turn: renting power
generation equipment eliminates
the need for capital expenditure on
equipment. It incurs no large down
payments or interest costs and pre-
serves borrowing capacity. In addi-
tion, power rental guarantees fixed
and regular payment schedules
over an agreed term with options to
extend the rental period if required
which improves cash flow and al-
lows for more accurate budgeting.
When making the decision
between purchasing and renting
equipment, it is important for a
company to evaluate the decision in
the light of the many hidden costs
that are incurred when equipment
is purchased; insurance is one item
which is often overlooked by com-
panies seeking to purchase large
equipment. In addition, for equip-
ment such as generators, there
are many spare parts and ancillary
items that need to be purchased
regularly to ensure that the equip-
ment is able to operate. Not only do
items such as spare parts need to
be purchased, but they also require
storage space to house them. With
a rental solution, all spares and an-
cillary items are the provision of the
rental provider, enabling the cus-
tomer to budget more effectively.
Refuelling is an additional cost
which is often forgotten when the
decision is made to buy equipment.
Refuelling one generator is a time-
consuming task; a project site with
30 to 40 generators on it will require
the contractor to purchase trucks
and staff simply a for refuelling.
Therefore, the use of rental special-
ist who includes refuelling in the
rental package can be an attractive
option.
Another factor in the rental ver-
sus purchase argument that be-
comes even more prominent in
an economic downturn is the ele-
ment of human capital. All major
equipment purchases will require
a company to staff the new equip-
ment, either by allocating existing
staff to the project, or by hiring new
employees. If a company does not
have employees available with the
technical knowledge to run the
equipment they may be forced to
hire new staff, however, hiring freez-
es across the board are often the
norm in an economic downturn.
This means that the use of a com-
pany which provides turn-key rental
services can be invaluable to a com-
pany which requires equipment but
simply doesn’t have the skilled and
experienced staff to operate it.
At times, it is tempting for com-
The advantages of renting power are also
strong in an economic downturn: renting power
generation equipment eliminates the need for
capital expenditure on equipment
panies trying to save money to min-
imise the number of staff they re-
quire for operating the equipment.
However, this short-term solution
often leads to greater problems in
the long-run. Heavy equipment
such as generators require regular
servicing and maintenance in or-
der ensure that they are operating
at peak efficiency; a poorly main-
tained generator will have greater
fuel consumption, higher emissions
and may even break down entirely,
negating any cost benefits that
may have come from reducing the
number of technicians working on
a project site. Through a rental pro-
vider, all service and maintenance is
included in the rental package, en-
suring that the equipment is always
running at peak efficiency.
Projecting the power demand of
projects also becomes a problem for
companies in a financial down-turn.
Purchased generators are often ei-
ther under or over-utilised since the
power need on a construction site
tends to follow a specific pattern of
ramping up and then falling away,
meaning that a contractor who pur-
chases enough equipment to meet
peak demand on site will find that
the generators are underutilised and
burn fuel less efficiently for most of
the project.
The answer to why rental power
is an attractive service to construc-
tion companies lies in one word:
flexibility. Renting power generation
equipment allows the contractor to
increase or decrease their capacity
depending on the demand of their
specific projects. Equipment capac-
ity can be increased as the power
demand on a project increases, en-
suring that equipment is always run-
ning at maximum efficiency.
The past year has seen much
construction work come to a grind-
ing halt as projects are re-evaluated
for viability. Although most partially
completed projects appear to be go-
ing ahead, the number of projects in
the design phases which have been
put on hold is staggering. One of the
greatest advantages of the rental
option is the cushioning effect this
has on companies which are uncer-
tain about the long-term future of
their projects. By renting equipment,
companies can ensure that they will
not be left with equipment which
will sit unutilised; if a company is
told that one of its projects has been
put on hold, the financial damage
incurred by having purchased large
amounts of heavy equipment can
be a major blow for a company with-
out large cash reserves. Ultimately,
renting equipment means that be-
cause ownership lies with the rental
company, all risks do as well.
Analysts are divided as to their
opinions of when the economic
climate will begin to improve, with
some saying late 2009 and others
pointing to early 2011 before any
real recovery will occur. However, it
seems unavoidable that there will
be some fundamental changes to
the way that people think about in-
vestment and financing, and to how
companies handle their asset man-
agement. Cash reserves may very
well regain their old popularity; cer-
tainly, it seems unlikely that compa-
nies will be willing to leverage their
assets to the degree that has been
the norm in the past decade.
With a greater emphasis on keep-
ing capital available and with rental
providing benefits such as lowered
capital expenditure, flexibility and
risk management, the option of
renting as opposed to purchasing
equipment will likely remain an
attractive one even as the world
economy eventually strengthens
DUBAI REAL TIMES
and the world enters another posi-
tive growth period. And although
the question, ‘Is it better to buy or
to rent’, will continue to be asked
by companies contemplating large
equipment purchases, many com-
panies will likely find themselves
deciding that during this period of
economic uncertainty, ownership 21
may not be worth the hassle.
 COMMENTS
Construction
industry
showing signs
of defiance
T
he UAE construction industry
is showing signs of defiance
in the wake of the global eco-
nomic crisis, with over 200 projects
to be completed in the first half of
this year, more than the total for the
whole of 2008. Research by indus-
try analysts Proleads has revealed
that only 2.4 per cent of 1,289 UAE
construction projects that were un-
der way at the start of the year have
been cancelled.
Approximately 135 projects were
on schedule to be completed in the
first quarter of 2009, with another 70
to be finished in the second quarter,
compared with a total of 184 overall
last year.
The figures were highlighted re-
cently as development plans were
released for the Big 5, trade show
for the construction industry and
associated suppliers, when it takes
place for the 30th year in Dubai in
November. A new purpose-built
temporary structure and outdoor
DUBAI REAL TIMES
exhibit area is being constructed at
the Dubai World Trade Centre to ac-
commodate the Big 5 PMV, the spe-
cialised focal point of the exhibition
for manufacturers and suppliers of
construction plant, machinery, ve-
hicles and equipment.
Simon Mellor, Vice-President,
22 Construction at Dmg World Media,
organisers of the Big 5, said: “This
investment by DWTC underlines the
confidence they share with us in the
ability of the region’s construction
industry as a whole to survive the
current economic downturn and
prosper in the longer term.”
Peter Sutton, Vice President –
Venues at DWTC said: “Building on
the success of the decision to relo-
cate the Big 5 PMV to Dubai World
Trade Centre last year, which led to
a 29 per cent increase in visitors over
2007, Car Park C site is undergoing
significant re-development. The en-
tire site is being leveled and surfaced
with a grid network laid throughout
for electricals and drainage and
the PMV Indoor Area will be a fully
functional purpose built temporary
structure.”
Despite negative effects of the
recession on the construction sector,
companies like Al Nawi Group, UAE
representatives of Finnish manufac-
turers Scanclimber, see a silver lining
for the construction equipment busi-
ness and the industry as a whole.
“The construction industry is
witnessing a slowdown at the mo-
ment, but I believe that if the right
measures are taken by governments,
things will start picking up again
by the end of the year,” said Aamer
Hammoudi, General Manager, Al
Nawi Group, which sells Scanclimber
climbing work platforms, hoists and
The Big 5 PMVwill be staged at the Dubai International Convention and Exhibi-
tion Centre alongside the Big 5, from 23-26 November, 2009.
access platforms in the Middle East.
Hammoudi said the economic
crisis has led to the company focus-
ing its resources on serving its exist-
ing top five customers who gener-
ate 80 per cent of sales in the Middle
East.
“We know these customers have
projects that will take us through the
downturn. At the same time, we are
streamlining our operations to cut
all unnecessary overheads. We are
carefully applying our resources into
areas that are productive and gener-
ating business. Now is not the right
time to expand. However, there will
be a time again, when expansionary
strategies need to be taken in order
to secure market share. It is hard to
predict when we are in clear waters
but I believe things will start looking
better by the end of the year if the
right measures are taken.”
Nick Webb, Director of Stream-
line Marketing Group, organisers of
the Big 5 PMV, said: “With several
construction projects still under way
and a huge amount of development
to be reinstated when the current
climate eases, it is very clear that this
region needs a plant, machinery and
vehicles show. While construction
activity may have slowed across the
region, Dubai remains the gateway
to the Middle East and with the new
initiatives to give the exhibition a
purpose built home, we’re confident
of delivering an exceptional event
this year that will deliver a significant
return on investment for exhibitors
in difficult times.”
Humaid Salem, General Manager
of the Contractors’ Association said:
“This is an important event for the
construction industry, as it provides
a dedicated arena for manufactur-
ers and suppliers of plant, machinery
and vehicles to meet construction
professionals from across the region
and beyond. The event brings the in-
dustry together, which is particularly
important at this time.”
Why PR makes sense … right now!
By Louay Al Samarrai
“I
t was the best of times and
it was the worst of times,
it was the age of wisdom,
it was the age of foolish-
ness….” Charles Dickens could not
have been more accurate in the Tale
of Two Cities back in 1859. Indeed
he could have been writing about
the present financial crisis that has
grabbed the world’s attention at ev-
ery level or, even more specifically,
he could have even been writing
about the real estate sector here in
UAE and the wider region.
No doubt the challenges that
the property developers are facing
now are cyclical, and, as we move
through 2009 things will begin to
feel and look more positive. However
with the recent news of property
prices being affected downwards
and jobs being trimmed at several of
the leading developers the one thing
is certain – there will be good news
and bad news and it is always going
to be the key to manage this news
consistently, coherently and most
importantly of all - effectively.
What is also true is that the last
thing that property developers want
to hear right now are ideas of how to
spend their money or about market-
ing advice that requires an invest-
ment of scarce financial resources,
but the simple truth is, this advice
could deliver the best possible return
on their investment than the typical
forms of marketing that the sector as
a whole has been employing almost
to the detriment of all the others.
What am I talking about I hear you
all shout!
Well I am talking about public
relations – yes, the practice of talk-
ing with your key target audiences
– through consistent, managed and
relevant communications, and here
is the secret…yes lean in close…
because I am about to tell you why
public relations could be your best
kept secret weapon: Not only is pub-
lic relations effective when properly
practised, but it delivers a real return
on your investment and, for the en-
tire year, costs the same as taking
two full colour pages of any of the
local daily newspapers.
What it also delivers is 10 times
the investment in coverage and
publicity for your company, develop-
Louay Al Samarrai
ment or projects as well as being the
best tool to manage the perceptions
that are being built up in the market
right now about your company, your
sector and the future.
How does the average property
developer - who is still standing, still
doing business and who still has a
very realistic and measured perspec-
tive of the real estate markets here in
the UAE and across the region, keep
on communicating?
How are they going to get the
message out that, while the best of
times may be over for some, it is not
the worst of times for those that had
solid business plans and did not sell
too much ‘off plan’ to be stuck be-
tween a rock (the speculators) and a
hard place (the bank) now?
How are these property develop-
ers going to tell key audiences that
they have been prudent, that they
are solid, that letting people go is
a sad but necessary reaction to the
market dynamics and that this has
been done as humanely as possible,
that they have researched and are
studying the market and what this
research is telling them..?
Property developers are a re-
No doubt the
challenges that the
property developers
are facing now are
cyclical, and, as we
move through 2009
things will begin to
feel and look more
positive
sourceful bunch so they will have a
number of ideas. There are a few that
want to go outside of the box, who
don’t want the perception to be that
they have run for cover! These are
the ones that have plans! These are
the ones with foresight to see that,
when the worst of times is over, they
can be well positioned ahead of the
curve.
We are consulting with a select
few of these people and they are
recognising a very real and mea-
surable return on their investment.
When we talk about PR delivering
this very attractive ROI what we are
talking about is strategic, managed
public relations.
Let us all hope that things change
and that we can all then say - “It was
the best of times and we have man-
DUBAI REAL TIMES
aged our messaging and commu-
nicated through the worst of times
and now….it is now the age of wis-
dom, the age of foolishness is past
us….” – Sorry Mr Dickens!
The writer is one of the Managing Direc-
tors of Active Public Relations and Mar- 23
keting Communications Consultancy.
 COMMENTS

Time to take the plunge

By Ali Haider Zaidi, CEO of Centurion Real Estate

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

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

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

The analyses expressed in this article are personal observations on the Dubai Real Estate market and should not be
considered as a bench mark to make decisions. The author does not take responsibility and is not liable and/or legally
responsible for any decision taken by any individuals and/or institutions based on the observations in this article.

Property sector gaining momentum
amidst steady market correction
The Specialists observes the country’s transformation into an end-user market
O
ngoing corrective mea-
sures have transformed
the UAE’s property trade
into an end-user market,
observes The Specialists, a com-
plete real estate solutions provider
with over 20 years of experience in
the Gulf region. It notes that more
real estate developers and owners
are shifting their sales strategies
away from speculators and towards
end-users, focusing on meeting the
needs of prospective owners.
A noteworthy rise in foreign
investments in recent months is
further sustaining the momentum
being enjoyed by the industry, with
improved lending conditions across
domestic banks adding to the posi-
tive trend. Another welcome de-
velopment is the resilience of the
industrial property segment, with
Dubai alone still significantly bene-
fitting from its reported 50 per cent
increase in industrial rents in 2008.
“Just recently the UAE Minister
of Economy stated that the coun-
try has managed to overcome the
crucial stages of the financial crisis,
and that significant economic gains
could be expected in the second
half of this year. This has greatly
stimulated market-correcting activi-
ties which are raising the appeal of
properties and moving emphasis
towards end-users” said Dr. Sobhi
Suleiman Agha, General Manager,
The Specialists.
Meanwhile, banks across the
Emirates are gradually increasing
lending and mortgage activities,
although they are exercising more
caution in the form of rigorous
background checks. Also, the UAE
Central Bank and the Ministry of
Finance have been implementing
several measures to improve liquidi-
ty in the financial sector and restore
market confidence. A senior official
of the Central Bank has affirmed
that they will concentrate on liquid-
ity and asset quality towards 2010.
The banking authority will spe-
cifically monitor the effects of the
property trade on the financial sec-
tor.
Dr. Sobhi Suleiman Agha “Today’s evolving markets have
COMMENTS
The banking authority
will specifically
monitor the effects of
the property trade on
the financial sector
actually opened several oppor-
tunities to foresighted property
firms. The key is for developers
and owners to keep close track of
trends and corrections and create
tailored packages for both their ex-
isting and prospective clients. The
UAE remains one of the world’s top
property destinations, so banks will
definitely continue to extend mort-
gage facilities to investors, albeit
with a little more caution. A little
creativity and patience can still
lead to highly-profitable returns for
real estate businesses,” concluded
Agha.
The Specialists itself constantly
monitors local and regional trends
DUBAI REAL TIMES
to make sure that it develops and
delivers high-quality and timely
services. The company delivers a
comprehensive range of services to
cover all types of property transac-
tions within both the commercial
and residential markets, for lease
and for sale. It currently conducts
its operations in the UAE, Jordan, 25
Lebanon and Syria.

Shifting Gears:
The challenges of publicly-traded, project-driven organisations
By Bassam Al Samman, PMP, PSP, EVP/CEO & Founder of Collaboration, Management & Control Solutions (CMCS)
T
he global business market
has reportedly been expe-
riencing a growing number
of privately held companies
making the shift to being publicly
traded entities. The new trend, which
has been explained by analysts and
financial experts as a quick fix solu-
tion to ride out the current financial
crisis, has enticed more than a hand-
ful of business entities in the Middle
East region to follow suit. The shift
to public eye however poses many
challenges for organisations whose
growth and operations depend on
the number of projects they under-
take. One of these challenges would
include the need to report on cur-
rent financial standings. Despite the
region’s adoption of a streamlined
set of guidelines in declaring finan-
cial standings, these newly shifted
companies might fall short, or expe-
rience difficulties, in trying to com-
ply with this requirement.
The stock value of a project-
driven organisation would usually
depend on three key elements; the
number of projects they already
have; the efficiency in handling
these projects and the projects they
expect to acquire in the future. The
volume of projects that an organisa-
tion can undertake also depends on
a number of factors including but
not limited to being competitive,
reputation, track record, experience,
size, financial capacity, capability and
business development efforts. These
factors, in turn, are heavily depen-
dent on the overall market growth,
number of projects currently being
offered and market stability.
The ability to acquire new proj-
ects and maintain a healthy pipeline
Bassam Al Samman
of future projects is a challenge that
these project-driven organisations
currently face which also poses to
have great impact on its stock value.
Usually, organisations address this by
adopting initiatives that will focus
on increasing their market share, ex-
panding into newer regions, winning
repeated clients and forging new
strategic partnerships.
Nevertheless, a greater challenge
for these organisations lies within
projects that must be delivered with-
in a fixed budget and a set deadline.
One of the tools currently being used
to help find out if a project goes over
the budget or behind schedule is
Earned Value Management System,
which proves to be very helpful in
providing essential information and
facts on project current status and
expected future progress trends.
However, the Middle East region still
has to catch up with this trend and
utilise this method to their advan-
tage.
For instance, recent surveys in
the information technology (IT) sec-
tor have shown that less than 17 per
cent of projects undertaken are com-
pleted on time and on budget. It also
highlighted that projects are exceed-
ing their planned budgets by almost
90 per cent and their schedule by 120
per cent. Consequently, 51 per cent
of all IT projects are over budget and
30 per cent of them have been can-
celled.
Other sectors are no better, with
surveys showing that oil and gas proj-
ects have schedule overruns of 82 per
cent resulting in 85,000 less qualified
workers in 2009 and the foreseen
difficulties in completing these proj-
ects.
These figures also answer key in-
vestment related queries that include
promised benefits, better returns and
future stock value.
The reasons why projects are bur-
dened with such unfavourable indi-
cators are actually reflective of an or-
COMMENTS
ganisation’s undertaking of projects
without proper assessment of risks
associated with delivering those proj-
ects. These projects can be exposed
to many threats, including wrong
budgeting and budget forecasting,
improper allocation of expenses, im-
proper revenue recognition during
implementation, improper quantifi-
cation of project benefits, improper
project management practices, risks,
issues, improper control of changes
and failing to deliver what is expect-
ed from them when they were initi-
ated.
The recent scandals of Enron,
WorldCom, Philip Holtzman and oth-
ers are examples of how apparently
successful project-driven organisa-
tions have ceased to exist. These
cases have led the US Government
to require publicly traded companies
to comply with what is known as the
Sarbanes-Oxley (SOX) law. This law
requires organisations to adopt prac-
tices that will require effective perfor-
mance control, rapid performance
reporting, maintaining updated proj-
ect records and documenting proj-
ect processes.
The Middle East region bears no
difference from its global counter-
parts as an unprecedented number
of projects undertaken have failed
to adopt these preventive measures,
DUBAI REAL TIMES
and would most likely lead to misrep-
resenting the true value of a project-
driven organisation.
Although not too alarmingly late,
a sound solution in the offing is the
move to adopt these proven prac-
tices and help minimise the threats
of project delays and overspending,
and consequently maximising the 27
opportunities they bring.
 COMMENTS

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

the wrong end of

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

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

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

Self-funded real estate companies

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

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

ing that in this part of the world it’s
more of apprehension rather than a
poor market. I believe that this will
be corrected over a period of six
to eight months by then, we can
expect a slow and steady process
of recovery,” said Dr. Issam Daoud,
Chairman, Avanti Holding.
According to the study, the sec-
ond half of 2009 would be a good
latter half of this year would be the
best time to buy property in Dubai,
since we expect the prices of prop-
erty to shoot up by around Novem-
ber 2009,” said Daoud
“Looking ahead, we are con-
fident of at least a five per cent
economic growth for 2010, due to
the bottoming out of the market,
a growing number of customers
positively act on their opinions and
feelings. This atmosphere of inter-
action and trust is, and will always
be, above all the core of our suc-
cessful partnerships,” he added.
Avanti Holding is a part of Issam
Daoud Group of Companies that
manages various interests, includ-
ing real estate development and
investment companies, real estate
lery trading. It is renowned for its
international standards and quality
of service, and its emphasis on en-
riching the lives of its clients. The
property specialist is also compli-
ant with the requirements and
mandates of Dubai’s Real Estate
Regulatory Authority, thus making
it a key player in Dubai’s property 29
market.

Going, going, gone -
maybe next time
By Linda Benbow
T
he Al Yasat grand ball-
room was filled with over
120 people all eager to
watch four properties go
under the hammer. In charge of
the event was Raymond Kuceli,
Chief Executive Officer of Madania
Real Estate and a licensed auction-
eer with over 20 years' industry
experience.
The four properties auctioned
included three villas in Arabian
Ranches and one penthouse
apartment in Jumeirah Beach Res-
idence. Although bidders did not
reach the reserve price for any of
the properties, the auction event
marked a new step in the matur-
ing of the Dubai market. Buyer
sentiment during the evening
confirmed recent analysts' reports
of a current divergence in buyer
and seller expectations around
the true value for property in the
emirate.
The first property, a villa in Palm-
era in Arabian Ranches, opened at
Dh2 million and was contested
between two bidders up to Dh2.3
million before being passed in by
the auctioneer for private nego-
tiations, as the final bid did not
reach the reserve price. The sec-
ond property, a villa in Al Mahra
in Arabian Ranches, opened at
Dh2 million and was passed in by
the auctioneer at Dh3.5 million.
The third and fourth properties,
a penthouse in Jumeirah Beach
Raymond Kuceli
Residences and another villa in
Al Mahra did not find an opening
bid. The properties will now pass
into the third phase of the process
where interested parties negoti-
ate privately with the sellers.
What made you think of auction-
ing these properties?
Madania aims to bring innovative
and creative solutions to market
problems. In the case of the prop-
erty auction programme, we can
see that the lack of clarity over the
true market value means a drop
in transactions as buyers and sell-
ers disagree on what a property is
worth – the auction process helps
define what is market value and
therefore helps buyers and sellers
agree for a sale, and for the indus-
try, hopefully boost transactions.
Did you get the expected results?
We would have liked to mark the
first event with a sale, but I think
that otherwise the event went well.
We had a very good turnout, over
120 people, and because this is an
innovative method we are bringing
to market, it was a great achieve-
ment to hold the first event.
The process has three phases,
of which the auction event is the
second phase so, we still have in-
terested parties in the properties
and we would expect to generate
a sale during phase 3.
Perhaps some of the bidders on
the night were a bit over-awed by
the environment but we believe
that it is a learning curve for us
FOCUS
and the general public, and as the
process is better understood, the
number of sales will increase.
Is this a diversification role for
the company?
Madania Real Estate is a brokerage
firm offering a full range of real es-
tate services with competencies
in selling, buying, leasing, and ad-
visory services, as well as deferred
payment plans. The property auc-
tioneering programme is just one
part of the services we offer.
Can we expect more auctions?
Yes we will certainly be continu-
ing with the auctioneering sales
method, and as I mentioned, over
time we expect the process to be
better understood and seen as
another way for sellers to market
their properties.
What other plans does the com-
pany have for the future?
We are constantly working to en-
hance all the services we provide
and will continue to do so in the
DUBAI REAL TIMES
future. In terms of expanding our
offering, we will be looking at pro-
viding Building Management Ser-
vices and we will also commence
building a portfolio of individual
properties which require manage-
ment. Another area we are look-
ing at is helping developers sell
their properties that are close to 31
completion.
 COMMUNITY

Cricket, diet and awards

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

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

region. Chapal’s ability to engage
spectators through its sponsorship
demonstrates its commitment to
quality and fun. We are delighted and
will carry on injecting excitement
into the next cricket events too."
Jawad Chapal, Executive Director
for Chapal Group said: “We are
32 happy to be connected with the
local public, especially young-
Ahmed Chapal, Executive
Director for Chapal Group, said:
“The Australian team won the series,
though Pakistan players were the
winners for Twenty20 match. We have
watched amazing talents. I consider
this game as an opportunity for the
Pakistan team, as they played so well
against a strong opponent. We will
be waiting for their coming back to
• $2,500 to winning team (each
match of ODI series);
• $5,000 for Twenty20 Match
winning team (final match);
• $5,000 for ODI Series winning
team (final match).
• Chapal rewarded 78 lucky
winners to attend matches
complimentary throughout radio
campaign in UAE.
architectural structure, with
spacious studios and 1,2 and
3 bedroom units will offer a
variety of amenities such as
swimming pool, health clubs
and spa, shopping centre,
family entertainment facilities,
a golf course, and canal side
views.

Limitless DJA offices
Tenants get a taste of
community life – at work
L
imitless has launched a series
of interactive community ini-
tiatives for office tenants at
Downtown Jebel Ali, kicking off with
a health and nutrition networking
event, led by Dubai-based dieticians
Nathalie Haddad and Nadine Tayara.
Before sampling a range of low fat,
energy boosting food, delegates
discovered how the food they eat af-
fects their health, and, with a good
diet, they can cut the risk of obesity,
diabetes, high blood pressure and
other medical complications. At the
same time, they met and mingled
with fellow tenants who have set up
offices in the 200-hectare develop-
ment.
Around 1,000 people are cur-
rently based at Downtown Jebel Ali’s
four newly-completed office towers
– part of an eight-building complex
known as The Galleries – with more
moving in shortly.
Salah Ameen, Downtown Jebel
Ali Project Director, said: “This is
more than a place to live or work. It’s
also a place for healthy lifestyles in a
community setting. At the Galleries,
our A-grade offices are filling up fast
with local firms and global compa-
nies who have chosen Dubai as their
regional hub. Our community initia-
tives will enhance The Galleries as a
choice location, where friendships
blossom and business relationships
are created.”
Nutritionist Nathalie Haddad said:
“Hectic lifestyles and busy schedules
can mean that a healthy diet goes by
the wayside. Despite an increase in
the availability of low fat products,
the UAE still has a high rate of obe-
sity. By following a balanced diet and
eating small meals regularly, people
will feel healthier, reduce the risk of
Downtown Jebel Ali will
stretch for 11 kilometres
along Sheikh Zayed Road
between the Jebel Ali
Free Zone and Techno
Park. It will have 326
buildings, including 237
residential towers. The
project will consist of
four zones, each with
three distinct districts:
The Urban Centre, The
Trellis and The Medina,
creating a blend of
business, residential,
shopping, and dining
and entertainment
facilities. Each zone will
have a Dubai Metro
station, its own internal
people mover system,
and road access from
new interchanges on
Sheikh Zayed Road
illness and improve their mood, pro-
ductivity and energy levels.”
Businesses can lease areas from
3,500 to 15,000 square feet – and
take multiple floors – in The Galler-
ies, where four additional towers
offering apartments, retail, recre-
ational and more offices are due for
completion this year. The Galleries’
landscaped grounds will include
water features, open spaces, plazas
and shaded rooftop gardens.
Coral Deira Dubai
receives Green Award
C
oral Deira Dubai has been awarded a certificate of appreciation from
Dubai Electricity & Water Authority (DEWA) for its distinguished ef-
forts in saving water and electricity throughout 2008. The certificate
was awarded to recognise the significant contribution the hotel made to the
reduction of electricity and water consumption; an area which the property
earmarks as a highly important issue.
General Manager of Coral Deira Dubai, Pieter Stapel, said: “We’re extreme-
ly pleased to have our dedication in this area recognised as it is something
we have worked hard for.
Water and energy conservation is a big issue and one we recognise we
can do something about if we adopt new practices and change certain ways
in which we work,” he explained.
“We offer the same great level of service to our guests that they have
come to expect, but we are pushing to do things in a green and environ-
mentally friendly way - with awards like this, it shows we are moving in the
right direction but there is always more that can be done.”
The award was presented to 10 Dubai hotels at a special award ceremony
at the InterContinental Festival City.
Health and safety
success at Palm’s Marina
Residences development
N
akheel has celebrated the completion of 12 million man hours with-
out loss due to injury at Marina Residences, Palm Jumeirah. The de-
veloper’s exemplary health and safety record is a result of a number
of measures introduced across the development. The company’s dedicated
health and safety team worked on a project-specific safety plan with con-
tractors, with safety meetings on the project taking place every week for
more than 30 months, and additional meetings held to raise and resolve
specific workplace safety and protection issues.
Johann Schumacher, Managing Director, Palm Jumeirah, Nakheel, com-
ments: “It is our goal for the entire sector to embrace best practices in health
and safety on our projects and to improve all workers’ skills to ensure the
highest safety standards. This is an approach that leads to improved pro-
ductivity, increased efficiency and higher standards of build quality. The
specialist safety plan developed for the project alongside regular meetings
with workers and managers ensured that the health and safety culture was
widespread and at the forefront of everyone’s mind. The results of this focus,
enthusiasm and teamwork are highlighted today.”
Nakheel places health and safety at the core of its business and cham-
pions high standards in the region. The company has an in-house team
DUBAI REAL TIMES
of professionals working across the entire organisation’s developments,
which monitors and supports project management teams to ensure that
these high standards are met across its projects. In January 2009, Nakheel
became the first developer in the region to formally endorse the ‘Build Safe
UAE’ programme, the construction sector’s own health and safety initiative.
Marina Residences is a residential complex located at the tip of the trunk
on Palm Jumeirah, one of the world’s largest man-made islands. The high-
end, high-rise development consists of six residential towers that rest on
landscaped podiums faced with marinas. The handover of more than 900 33
homes on the development will commence later this year.
 EVENTS

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

ThyssenKrupp Elevator is one of

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

passenger and freight elevators,

escalators and moving walks,
stair and platform lifts, passenger
boarding bridges as well as quality Sheikh Saeed Bin Mohammed Bin Rashid Al Maktoum presents the First Prize award to Fernando
Donis of the Netherlands for the ‘Dubai Frame’ proposal. (Left to right) Mr. Hussain Lootah,
service for all products Director General of Dubai Municipality, His Excellency Sultan Bin Saeed Al Mansouri, UAE Minister
of Economy, His Highness Sheikh Saeed Bin Mohammed Bin Rashid Al Maktoum, Fernando Donis,
34 Dr. Olaf Berlien, CEO of ThyssenKrupp Technologies and Mr. Javier Del Pozo, CEO of ThyssenKrupp
Elevator Southern Europe, Africa and Middle East

Hotels for Dubai Pearl
P
earl Dubai FZ LLC and MGM
MIRAGE (NYSE:MGM) have
plans to develop Bellagio,
MGM Grand, and Skyloft
hotels, as well as branded residenc-
es at Dubai Pearl, the $4 billion (Dh15
billion) world-class, fully integrat-
ed luxury development in Dubai,
United Arab Emirates. Pearl Dubai
FZ LLC will own and finance the
250-room Bellagio hotel, 350-room
MGM Grand Hotel, and 30-suite
Skylofts hotel, while MGM MIRAGE
Hospitality will manage and provide
technical services for the three new
ventures.
The agreement includes the
development of Bellagio branded
luxury residences, in addition to
featuring world-renowned dining,
entertainment, spa and convention
that complement the luxury offer-
ing of the hotels.
Abdul Majeed Ismail Al Fahim,
Chairman of Pearl Dubai FZ LLC, said:
“Our alliance with MGM MIRAGE re-
flects our commitment to forging
world-class partnerships with pre-
mium brands that are renowned for
their operational excellence. The
project’s entertainment elements
will help complete the vision of mak-
ing the Dubai Pearl a true landmark
that will deliver an unforgettable
experience through its diverse com-
ponents and unmatched services.”
The association between the
two companies will see the Dubai
Pearl project getting Dubai’s first
hotel and residences brands under
the MGM MIRAGE portfolio.
Located opposite the Palm
Jumeirah island in the heart of the
Dubai Technology and Media Free
Zone, Dubai Pearl is a landmark desti-
nation designed to offer spectacular
views of the Arabian Gulf. Through
integrating first-class facilities, it will
shape a pedestrian-friendly, 24-hour
Abdul Majeed Ismail Al Fahim, Chairman, Pearl Dubai FZ LLC and Jim Murren,
Chairman and Chief Executive Officer, MGM Mirage
living city with a spectrum of com-
mercial, retail, residential, hospitality
and leisure components. It will also
have a 2,000-seat performing arts
theatre aimed at meeting the needs
of Dubai’s growing cultural calendar
and complementing the project’s
entertainment offering.
Featuring an active business dis-
trict with a quality urban lifestyle,
Being a prestigious property from the Al
Habtoor Group, the building adds exclusive
value to the property by offering Privilege
Benefits to every tenant
the development will be host to the
world’s top brands and include sky
palaces with private pools and land-
scaped gardens, luxury branded
apartments and condominiums.
Al Habtoor Business Tower
- Fulfilling the long standing de-
mand for world-class office spaces
LAUNCHES
in the Dubai Marina area, Al Habtoor
Group has unveiled the first com-
plete commercial 5-star business
tower in Dubai Marina. Forty floors
of opulence, breathtaking views
from three sides, and unrivalled
settings are just the few attractions
of this imposing tower facing the
serene Arabian Gulf. Managed by
Al Habtoor Properties, the tower is
the new vantage point awaiting the
business world of Dubai.
With 35 leasable commercial
floors ready for occupation, a con-
siderable number of these floors
have already been leased to multi-
national and other companies, the
Al Habtoor Business Tower presents
choices of leasing a complete floor
or split into two spaces with a mini-
mum size of around 3,250 square
feet. Every floor has a carpet area
of approximately 6,500 square feet,
and has fully fitted floors and ceil-
ings. There is a luxurious VIP Lounge
on the 38th floor with direct access
to the helipad – the only one in the
area. Plus, tenants have access to
covered parking, 24 hour security
and access card entry control sys-
tem.
Being a prestigious property
from the Al Habtoor Group, the
building adds exclusive value to the
property by offering Privilege Ben-
efits to every tenant.
“We believe in making our prop-
erty distinct to make our tenants
feel unique. Every tenant at this
DUBAI REAL TIMES
magnificent tower will enjoy Privi-
lege Packages at Habtoor Grand
Resort & Spa, besides enjoying ex-
ceptional rates at Al Habtoor Mo-
tors, Diamondlease, hotels and
restaurants under Habtoor Hotels,
Dubai National Insurance and Emir-
ates International Schools,” says Mr.
Mohammed Al Habtoor, CEO, Al 35
Habtoor Group.
 UNDER CONSTRUCTION
Digging the dirt
N
ot all the cranes have
stopped moving. There
are quite a few projects
still being built, and de-
velopers are eager to share their
progress photos to prove it. Some
have connected web cams to their
websites while others regularly
place updated progress photos on
theirs. Many concerned with the
building trade are keen to spread
the word about their successful
continuation of work, and grateful
buyers wait to see the outcome of
their signed agreements.
Bonyan International Invest-
ment Group (Holding) LLC has
announced its plans to deliver over
1,000 property units by the end
of the second quarter of 2009. In
line with this, the developer also
revealed that three of its projects
- Dubai Gate 1, ABBCO Tower and
Sharjah Gate Tower - have already
been sold out to investors. At pres-
ent, all projects are undergoing the
final stages of completion, with the
developer finalising the legalities
for the first two buildings to be de-
clared as completed projects, while
Sharjah Gate Tower is at the home-
stretch of its construction phase.
Strategically situated in the
heart of Dubai, ‘Dubai Gate 1’ is a
35-storey tower, which will house
comfortable and stylish one-, two-
and three-bedroom apartments.
“We are looking forward to the
DUBAI REAL TIMES
delivery of 1,000 property units
within our project portfolio, espe-
cially now when most developers
are facing daunting challenges
in terms of completing their own
developments,” said Anas Ata-
treh, Vice Chairman of the Board,
Bonyan International Investment
36 Group (Holding) LLC. “Our custom-
ers have a strong appreciation of
our resources and quality of projects;
therefore, we strive to remain true to
our commitments in meeting high
standards.”
In compliance with RERA, Bonyan
has registered under the number
257/2007.
The Dubai Government’s single
largest urban land development
project, Dubai World Central
(DWC) – the 140 square kilometre
Urban Aviation City under construc-
tion in south west Dubai – will go
live in its first phase of operation
when DWC-Al Maktoum Interna-
tional Airport opens in June 2010,
said His Highness Sheikh Ahmed bin
Saeed Al Maktoum, Chairman, Dubai
Aviation City Corporation.
His statement came prior to this
year’s edition of the Airport Show
held during May.
“Our vision for Dubai is to be an
unparalleled global commercial,
trade and transportation hub with
a unique integrated multi-modal
logistics platform in DWC which will
change all known air, land and sea
transportation parameters,” said HH
Sheikh Ahmed. “At the core of this
airport city will be the world’s larg-
est airport which, once operational Dubai Logistics
next year, will not only draw busi-
City (DLC), a core
ness and trade to it but also create
huge residential and commercial component of
opportunities. DWC’s multi-modal
While we have extended the
opening date of the project to ac-
proposition, has
commodate all related construction, begun licensing
licensing and regulatory standards, completed
we have not lost sight of the long-
term vision of Dubai’s most stra-
warehouses and
tegically important infrastructure logistics offices
development which is designed to and handing over
support its aviation, tourism, com-
mercial and logistics requirements facilities to tenants
until 2050 and beyond.” to commence
Dubai Aviation City Corporation
incorporates both Dubai World Cen-
operations on-site
tral and Dubai Airports Company.
Meanwhile, Dubai Logistics City
(DLC), a core component of DWC’s troubled economic times, but also
multi-modal proposition, has be- look positively at how DWC can sup-
gun licensing completed warehous- port the future of business in the
es and logistics offices and handing Middle East.”
over facilities to tenants to com- The first passenger terminal too
mence operations on-site. is 80 per cent complete with MEP
At the airport, the construction works ongoing. This terminal will
of the first of its 16 cargo terminals
has been completed, well on its way
to achieving the project’s ultimate
goal of having an annual cargo ca-
pacity of 12 million tonnes. With
a capacity of 200,000 tonnes and
spread over 41,000 square metres of
built up area, the terminal’s capacity
can be expanded to 600,000 tonnes,
if required.
“The completion of Dubai World
Central’s first cargo terminal is a sig-
nificant milestone in the project’s
history,” said HH Sheikh Ahmed.
“Dubai’s forward looking govern-
ment continues to support DWC’s
thrust towards building a facil-
ity which will not only enable trade
and commerce to continue in these

Silicon Information Technology tower
have an eventual capacity of seven
million passengers with the airport’s
ultimate capacity being 160 million
annually.
“Construction on all related infra-
structure works is continuing with
all our stakeholders recognising the
fact that Dubai World Central is a
committed Dubai government proj-
ect; and once the global economic
recession tides out its cycle, work
towards its final master plan will re-
sume at its original pace,” explained
HH Sheikh Ahmed.
Another major achievement
is the construction of the Middle
East’s tallest free standing Air Traffic
Control (ATC) tower which has been
completed. Currently, the tower is
being fitted with all navigational
aids. Standing at 91 metres, the ATC
facility also includes a separate tech-
nical block of 6,000 square metres
which will house offices, operations,
technical rooms, flight simulators
and a meteor observation cabin. In
addition, the facility has an airside
/ landside interface with secured
access to airside, offering air traf-
fic controllers the ability to handle
multiple airborne airplanes as well
as on-ground aircraft.
“The completion of construction
of the ATC tower at Dubai World
Central is a giant step forward for
the region’s aviation sector which
has constantly seen growth every
year,” said HH Sheikh Ahmed. “The
completion of these facilities indi-
cates the progress we are making
towards the opening of the airport
next year and eventually of the en-
tire development across its several
components.”
Besides DWC-Al Maktoum In-
ternational Airport, Dubai World
Central comprises DLC and DWC
Aviation City, surrounded by its real
estate offerings - DWC Residential
City, DWC Commercial City and
DWC Golf City.
Jacques Stern, Senior Executive
Vice President of Accor recently vis-
ited the site of the Group’s first Pull-
man hotel in the Middle East, the
Majid Al Futtaim Group’s Mall of the
Emirates. The the two companies
signed an agreement to bring the
prestigious Pullman brand to the
region to fill a gap in the upscale
business hotel market. The Pullman
will be the second hotel on the site
of the Majid Al Futtaim Group’s flag-
“The completion of construction of the ATC ship retail and leisure destination
tower at Dubai World Central is a giant step which is undergoing a multi-million
dollar expansion.
forward for the region’s aviation sector which Mr. Stern visited the site to check
has constantly seen growth every year” the progress of the hotel develop-
ment which is due to open in the
DUBAI REAL TIMES
From left to right: Jean-Luc Motot, Managing Director Middle East and Africa; MAF Properties; David Vély, Head of Development
- Hospitality, MAF Properties; Christophe Landais - Managing Director Middle East, Accor; Richard Reid - SVP - Development,
MAF Properties; Jacques Stern - Deputy CEO and Group CFO Accor; Dr. Najib Al Khaja - SVP - Hospitality, MAF Propoerties;
Philippe Baretaud , Director of Development Middle East, Accor; Christian Karaoglanian- Chief Development Officer, Accor;
Brian Pirie, VP-Asset Management, MAF Properties; Mazen Amini, Vice President–Project Management, MAF Properties. 37
 second half of 2010.
Construction work is now un-
derway on one of the first projects
at Nakheel’s Madinat Al Arab district
at Waterfront. Plus Properties, the
Dubai-based regional real estate
company, has begun work on two
of its residential beachfront devel-
opments - Pixel Tower and Wave
Residence.
Marwan Al Qamzi, Executive
Managing Director, Nakheel South-
ern Projects - a portfolio which in-
cludes Waterfront, said: “We would
like to congratulate Plus Properties
on the start of construction work
on two residential developments
at Madinat Al Arab - a step that we
welcome as the master developer.
Across the heart of Waterfront, in-
cluding Madinat Al Arab, Badrah
and Veneto, construction and infra-
structure development is progress-
ing well, with the first residents at
Waterfront set to take occupancy
in 2010.” Georges Chehwane and Marwan Al Qazmi
Pixel Tower comprises 18 floors
with a variety of spacious and
luxurious apartments, private vil- such amenities as, health clubs, a
las and duplex penthouses. Wave school district, public facilities and
Residence-1, located on the beach, quick access to the proposed Dubai
takes its name from its shape and “As the first residential community in Opera House. Each apartment has
has been designed to offer tenants The Lagoons, the commencement of high-quality finishes, marble floors,
the elegance, comfort and ambi- high quality utilities and access to
ence worthy of a 7-star beachfront construction at Flamingo Creek marks an swimming pools. The development
residence. The project will have exciting step forward for the company” is also in close proximity to all major
nine floors and will feature studio, transport corridors.
one, two and three bedroom apart- Mr. Mohammed Nasir Falak &
ments as well as exclusive garden Associates proudly announce that
apartments with private pools or Deyaar Development PJSC, a Creek marks an exciting step for- over 50 per cent of the develop-
outdoor Jacuzzis. Both develop- regional real estate company dedi- ward for the company,” said Markus ment and construction of Silicon
ments embrace sustainable design cated to innovation, customer care Giebel, Chief Executive of Deyaar. Information Technology tower (SIT)
guidelines, are energy-efficient and and long-term sustainable growth, Flamingo Creek has been de- is complete, despite the recent eco-
eco-friendly, and aim for LEED Gold has announced that preparation signed for a premium contemporary nomic downturn, resulting from the
Certification. and substructure works on its Fla- lifestyle, where residents will enjoy global financial crises. Strategically
Waterfront is being designed mingo Creek development are un-
as an exemplar sustainable city derway. All units within the Dh1 bil-
founded on resource efficiency, so- lion real estate venture are sold, and
cial equity, and economic prosper- the project is scheduled for delivery
ity. Minimising ecological impact in 2011.
is considered in every decision of Strategically located adjacent to
DUBAI REAL TIMES

the city's design, construction and
operation. Energy and water con-
servation are achieved through
integration of utilities in dedicated
centres, where process streams
are interlinked and waste is trans-
formed into energy to power the
city. Simulation is used in building
38 design to ensure tough energy ef-
ficiency targets are achieved.
the arterial Ras Al Khor canal and of-
fering spectacular views of the Ras
Al Khor Nature Reserve, Flamingo
Creek is a unique low-density free-
hold project comprising 244 villa-
style apartments and townhouses,
spread over 500,000 square feet.
“As the first residential communi-
ty in The Lagoons, the commence-
ment of construction at Flamingo Flemingo Creek

Seasons Community
Waterfront is being designed as an exemplar
sustainable city founded on resource efficiency,
social equity, and economic prosperity
located in Dubai Silicon Oasis, on
Emirates Road, SIT tower, a high tech
commercial complex, will comprise
of three basements plus ground
floor and twenty five floors featur-
ing State of art fitness centre with
gym, cafes, restaurants, shops, ex-
clusively designed spacious lobby,
high-speed and panoramic eleva-
tors etc.
The commercial complex will
take advantage of a thriving urban
community with a master planned
residential environment nearby.
Beijing Emirates main contrac-
tor of the SIT tower has completed
over 50 per cent of the construc-
tion within record time of less than
a year through its team of dedicated
and professional engineers, project
managers, site supervisors, quantity
surveyors and construction work-
ers that have been assigned to the
project, under the professional su-
pervision of Consultant M/S Adnan
Saffrini.
Mr. Mohammed Nasir Falak said,’
At an advance stage of construction
SIT tower offers an ideal opportunity
for all sections of corporate entities
and we are pleased to see our latest
project get underway successfully
before the delivery date’.
Ishraqah has announced that it
(from Left to Right): Amgad O Gira, Director of Masharea; Walid Al Bagoury,
Managing Director of Bin Shafar; Abdullah Bin Mattar Al Falasi, CEO of Ishraqah
and Ammar Sweis, Group CFO of Ishraqah.
has awarded a Dh200 million con-
tract to Bin Shafar Contracting for
the construction of the first phase
of its ‘Seasons Community’ residen-
tial project. Located in new Dubai’s
Jumeirah Village Circle, Seasons
Community consists of four low-rise
clusters representing the four differ-
ent seasons of nature. The develop-
ment features 1,400 units of Garden
apartments and townhouses and
will incorporate retail and other
commercial and lifestyle elements.
The first phase of the project is
scheduled for completion in the
fourth quarter of 2010.
Abdullah bin Mattar Al Falasi,
CEO, Ishraqah, stated: “We have col-
laborated with Bin Shafar for the
creation of an efficient manage-
ment plan that fully supports the
project, in order to expedite mobili-
sation and construction. We want to
ensure that Seasons Community is
completed within the shortest pos-
sible time in accordance with the
needs of its future residents. The
new management strategy comple-
ments the property sector’s current
period of correction and is intended
to help Ishraqah strategically posi-
tion itself in the market and fulfil
our commitment to our buyers. Our
fresh management approach com-
bined with recovering market con-
ditions will maximise the appeal of
both our residential and commercial
projects.”
Seasons Community is being
developed as a ‘green’ community
in alignment with Dubai’s Green
Buildings initiative. This commit-
ment provides customers with more
comfortable homes that cost less to
operate, reduce electrical and water
consumption, increase air-condi-
tioning efficiency, improve air and
water quality, and meet stringent
environmental standards.
“We aim to deliver quality envi-
ronmentally friendly properties to
our customers at no extra cost as an
affirmation of our sustainable stew-
ardship and social responsibility. In
fact, we hired an independent en-
vironmental consultant for Seasons
Community, despite the fact that this
meant delaying commencement of
our original construction plan and
additional costs. The associated 7 to
10 per cent increase in construction
costs due to environmental consid-
erations will not prevent us from
pursuing our sustainability agenda,”
added Al Falasi.
Site enabling and shoring works
for the second phase of the project
are currently underway, while the
main building tender package will
be launched shortly. In addition,
several qualified bidders have lined
up for the construction of the town-
houses in the first two phases of the
project. Ishraqah is presently coordi-
nating with Masharea Project Man-
agement on the analysis and evalu-
ation of these bids and the selection
of the successful bidder will be an-
nounced in the upcoming weeks.
Ishraqah is also overseeing the
DUBAI REAL TIMES
development of a commercial com-
plex on Sheikh Zayed Road beside
Emaar Business Park called The
Onyx. The project features two office
towers, a business hotel, and dining
and retail facilities. The Onyx covers
a total construction area of around
2.3 million square feet and includes
a five-level car park with slots for ap- 39
proximately 2,000 cars.
 UNDER CONSTRUCTION
City of Arabia shows shape
of things to come
New images highlight spectacular nature of development - future home for 40,000 people
- as construction work enters a new phase
City of Arabia
N
ew images released re-
cently of City of Arabia
highlight the spectacular
nature of the $5 billion
retail, residential, commercial and
entertainment development taking
shape in Dubai.
With round-the-clock construc-
tion work entering a new phase, City
of Arabia owners, the Ilyas and Mus-
tafa Galadari Group, commissioned
a new range of artist’s impressions
which put the project and each of
its four main elements into perspec-
tive.
City of Arabia will have a phased
opening starting towards the end of
2010, beginning with Mall of Arabia,
one of the world’s largest shopping
destinations, which will have a gross
leasable area (GLA) of 10 million
DUBAI REAL TIMES
square feet over two phases.
With workers on site casting ap-
proximately 60 pile caps per week on
the 20 million square foot site beside
the Emirates Road, the mall is rapidly
taking shape. Construction work is
also moving quickly ahead on Wadi
Walk, the projects waterfront com-
40 munity characterised by stylish
apartments, outdoor cafes and at-
Mall of Arabia
tractive retail outlets set beside a
meandering eight kilometre canal.
Construction work has now com-
menced on I&M Tower, Metro Tower
and Wadi Tower, the first three of the
high-rise commercial and residential
buildings which will create a dramat-
ic skyline here.
Mall of Arabia will offer more
than 1,400 diverse retail outlets, and
the first phase is already 89 per cent
contracted and reserved. It will also
feature a rooftop hotel, waterfront
alfresco dining and entertainment
for all the family, as well as the re-
markable Restless Planet theme park
and earth science museum.
Housing the world’s largest and
most lifelike collection of anima-
tronic dinosaurs, Restless Planet
will make visitors think they’ve
wandered onto the set of a Steven
Spielberg Jurassic Park blockbuster.
One design team member, Dr. Jack
Horner, served as a scientific consul-
tant to Spielberg on three Jurassic
Park movies; and Restless Planet will
take visitors a 100 million years back
in time on a dramatic theme ride
into the prehistoric world.
“With each of the four main ele-
The Restless Planet theme park and
earth science museum
ments of City of Arabia now reach-
ing important stages, we wanted to
give all our stakeholders a detailed
picture of what they can expect
when the project is completed, and
the new images do that perfectly,”
said Ilyas Galadari, Chairman of Ilyas
& Mustafa Galadari Group.
Mustafa Galadari, the Group’s
Vice Chairman and Managing Di-
rector, added: “Construction work is
continuing to go full steam ahead,
and major visible progress is now
particularly evident at Mall of Arabia,
which is a very exciting develop-
ment in its own right.”
The Ilyas and Mustafa Galadari
Wadi Walk waterfront community
Group also has interests in real estate,
agencies for overseas companies,
gems and jewellery, automobiles
and transport and food distribution,
as well as an expanding luxury yacht
division, Sunseeker Middle East,
which enjoyed a highly successful
appearance at the recent Dubai In-
ternational Boat Show.
City of Arabia, which will become
home for 40,000 people, will be a
vibrant, self-contained urban com-
munity, with business and admin-
istrative offices, schools and clinics,
supported by luxury apartments,
shops, galleries, restaurants and
unique attractions.

Plumbing new depths
Kingdom of Sheba
C
ontracts are being award-
ed to worthy companies,
mainly based locally, for
pipework, design, MEP,
AC and other infrastructure needs.
On the whole, the trend seems to
be to use established companies
with proven track records for good
work. Those who have done it the
old fashioned way, i.e. by consistent-
ly working well in the past, are now
reaping the benefits of good busi-
ness attitudes and practices.
Drake & Scull International PJSC
(DSI) has been awarded the Dh226
million Mechanical, Electrical &
Plumbing (MEP) contract for the
Kingdom of Sheba development on
Palm Jumeirah. With this contract,
DSI is now working on six separate
projects, covering a total built up
area of 1.2 million square metres,
on the Palm Jumeirah, making it
the largest MEP contractor on the
island.
(from left to right) Eng. Isam Abdullah Edyak, Managing Director of Anwar Al Aqsa
and Rizwan Shaikhani, Joint Managing Director, Memon Investments
Kingdom of Sheba is a mixed-use
residential and leisure luxury resort
located on the crescent of the palm.
The resort is the largest resort IFA
Hotels & Resorts is developing. DSI
have been awarded the contract for
the first phase of the development
which consists of the residential
component (Balqis Residence) and
the Private Residence Club (Fair-
mont Heritage Place, Kingdom of
Sheba).
DSI Vice Chairman and CEO Khal-
doun Tabari added that his com-
pany is in a unique position at the
moment. “There are still a lot of
opportunities in the construction
industry in the UAE, and the com-
pany is well equipped and has the
capabilities and resources to take on
mega projects, and deliver as per
the client’s requirements of time,
cost and quality. The expertise we
gained in the UAE in over 40 years
as a specialist MEP contracting com-
INFRASTRUCTURE
pany, combined with our cash rich
position ensures we will continue to
meet all our projects’ requirements.”
DSI’s contract with Kingdom of
Sheba incorporates the supply, in-
stallation, testing and commissioning
of complete MEP works including: air
conditioning, ventilation, plumbing
and drainage, building management
system, fire fighting, power, tele-
phone and data, fire alarm system,
intercom system, central emergency
lighting, CCTV, access control secu-
rity systems, PA/BGM system and
lighting control system.
The company is a leading UAE-
based end-to-end service provider
of MEP contracting, infrastructure,
water and power (IWP) and civil
contracting services. On March 16
2009, DSI became the first specialist
contracting company to list on the
Dubai Financial Market (DFM) and is
The resort is the largest resort IFA Hotels
& Resorts is developing. DSI has been
awarded the contract for the first phase
of the development which consists of the
residential component (Balqis Residence)
and the Private Residence Club (Fairmont
Heritage Place, Kingdom of Sheba)
DUBAI REAL TIMES
41

(from right to left) Mohammed Abulhoul, Founder and Managing Director, Barrel Energy LLC and Shafiq Khoori,
Managing Director, Palm District Cooling
currently working on projects across
the MENA region with a total value
reaching approximately Dh6 billion.
Memon Investments has award-
ed a Dh19.5 million MEP contract
to Anwar Al Aqsa, a leading UAE-
based company. The MEP contrac-
tor will manage the electrical, fire
alarm, plumbing, and fire fighting
works within ‘Champions Tower II’
and ‘Champions Tower III’ projects,
located in Dubai Sports City. With
construction progressing on the
two towers the developer most
recently awarded a Dh1.96 million
elevator contract to ETA MELCO for
the installation of six high-speed,
state-of-the-art Mitsubishi elevators
within the 14-storey Champions
Tower II and the 16-storey Champi-
ons Tower III.
Memon Investments has revealed
that its decision to award the con-
tract to Anwar Al Aqsa was based
on the company’s experience within
DUBAI REAL TIMES
the engineering, owner, vendor
and trade contractor communities,
which has enriched its capacity to
provide the greatest value to a proj-
ect. Specifically, the company will be
utilising its expertise in HVAC sys-
tems installation, building electrical
works, generator installation, interior
42 and exterior plumbing, fire protec-
tion systems installation and exterior
Memon Investments currently has a
portfolio of projects valued at Dh1.34
billion, which includes the high profile
residential ‘Champions Towers’ series, the
luxurious ‘‘Gardenia I & II’, ‘Frankfurt Sports
Tower I’ and ‘Cambridge Business Centre’
lighting for Memon Investments’
luxury residential developments.
The contract with Anwar Al Aqsa
follows previous deals with other
top companies, including a Dh55.5
million deal with Al Sarh Contract-
ing and a Dh82 million agreement
with Cairo Contracting Company
for the construction of Champions
Tower II and Champions Tower III
respectively.
Having worked with a wide vari-
ety of projects across the UAE - from
villas to mid-rise buildings to high-
rise towers - Anwar Al Aqsa has de-
veloped a distinctive quality in its
workmanship and has impressed
various local authorities, includ-
ing the UAE Ministry of Electricity
and Water, as well as a number of
high profile developers. With offices
in Dubai, Sharjah and Ajman, the
company comprises qualified elec-
tricians, plumbers and technicians
who leverage its good infrastructure,
material resources and equipment
to execute major projects. Anwar
Al Aqsa’s extensive expertise across
various levels of MEP engineering, in
addition to its operations involving
the design, manufacturing and as-
sembly of distribution boards, were
key factors that helped the contrac-
tor clinch the deal.
Memon Investments currently
has a portfolio of projects valued at
Dh1.34 billion, which includes the
high profile residential 'Champions
Towers' series, the luxurious ‘'Garde-
nia I & II’, ‘Frankfurt Sports Tower I’
and 'Cambridge Business Centre'. The
Escrow accounts for all the projects
are already in place with the Com-
mercial Bank of Dubai, in compliance
with the requirements of RERA and
Dubai Land Department.
Palm Utilities (PU), the water and
district cooling utility service pro-
vider established by government-
owned investment firm Istithmar, has
announced that Palm District Cool-
ing (PDC) has recently renewed its
partnership with Barrel Energy LLC,
a Dubai-based fuel supply manage-
ment and lubricants service com-
pany. The move underscores PDC's
strong commitment to support the
Mohammed Bin Rashid Establish-
ment for Young Business Leaders,
a government programme that fa-
cilitates the development of business
and entrepreneurial activity among
UAE nationals, of which Barrel Energy
is a member.
Barrel Energy has supplied over
Dh100 million or nearly seven million
IG (imperial gallons) of fuel to PDC
and has also delivered logistics man-
agement services to PDC's district
cooling station since 2007, support-
ing the temporary cooling service
provided to customers. At its peak,
Barrel Energy delivered up to one
million IG of fuel a month to PDC; the
company has also served most of its
project sites including Palm Jumei-
rah, Discovery Gardens, and Jumeira
Lake Towers, and has also been a key
supplier of other government and
non-government entities.
Mohammed Abulhoul, Founder
and Managing Director, Barrel En-
ergy LLC said: "Barrel Energy is fully
committed to support Palm District
Cooling in its growing business ven-
tures across the UAE market by main-
taining the highest quality standards
in the delivery of our products and
services."
PDC currently provides district
cooling services to several presti-
gious mega developments in the
UAE, including the Gardens Residen-
tial Complex, Jumeirah Islands, Dis-
covery Gardens and Palm Jumeirah
Trunk. PDC is also renowned for be-
ing a socially responsible company
and a leading innovator in the district
cooling industry.
Palm Utilities, through PDC and
Palm Water (PW), has been estab-

Burj Dubai elevator lobby
lished to address the region's unique
requirements in the distinctly critical
areas of district cooling, and waste-
water treatment. PU has revealed
that it is exploring possible joint
venture initiatives for other util-
ity projects in the Middle East, India
and across Asia as part of its growth
strategy for 2009.
Work on the interiors of Burj
Dubai, the world’s tallest building
developed by Emaar Properties, is
progressing alongside the tower’s
exterior cladding. Currently, over 800
metres (2,624.7 feet) high, the tow-
er’s interiors are an aesthetic con-
fluence of the best of architectural
influences from around the world
and the region. Complementing the
external architecture of the tower
that is inspired by the geometries
of the desert flower Hymenocalis
and regional patterning systems,
the interior design of Burj Dubai was
conceptualised and led by award-
winning designer Ms Nada Andric of
Chicago-based Skidmore, Owings &
Merrill LLP (SOM).
Mr Mohamed Alabbar, Chairman,
Emaar Properties, said: “Burj Dubai
is a once in a lifetime architectural
accomplishment and is the Arab
world’s tribute to the art and science
of modern engineering and design.
A global icon that draws on interna-
tional engineering expertise, Burj
Dubai will symbolise the aesthetic
unison of many cultures – from
Arabia and the rest of the world.”
He added: “The interiors place a
special focus on the region’s heri-
tage and geographical location in
its design approach and selection
of materials. The design emphasis-
es on the best results in space plan-
ning and utilisation alongside the
finest detailing, to give residents
and visitors an unprecedented life-
style experience.”
A globally acknowledged and
award-winning interior designer
credited with several projects and
large-scale architecture, Ms An-
dric’s design approach was not to
take literal, stereotypical transla-
tions for the region’s cultural influ-
ences but to turn to scholarship to
develop the vocabulary inspired by
the region’s history, cultural under-
standing of the heritage of the Arab
world and its interpretation into
spatial elements, the right selection
of materials and a concerted effort
to blend the traditional motifs and
patterns with modernity.
Apart from glass, stainless steel
and polished dark stones, the inte-
riors of Burj Dubai also feature Silver
Travertine flooring, Venetian stucco
walls, handmade rugs, stone floor-
ing and dark, intricate Brazilian
Santos Rosewood to reflect shelter,
comfort, and above all, restrained
luxury. Surfaces on the upper floors
will be advanced in finishes of sil-
ver metallic lacquers to provide a
sense of brightness and enlighten-
ment. Commissioned local and
international fine art pieces will be
thoughtfully integrated across the
interiors of tower to complete the
atmosphere of ultimate refinement.
Ms Andric explained: “Burj
Dubai’s interiors are mindful of the
building’s prominent international
address and its true purpose as
home to a number of people, while
being inspired by the fascinating
local culture and the challenge of
enhancing the value of a global
landmark. This unique approach is
reflected in all aspects from careful
planning of all the public areas, the
subliminal reference to free flowing
Arabic script, colours and materials
and the implementation with an
aim to showcase global technology
and human achievement.”
She added: “For the interiors, the
highly edited colour and material
palette is inspired by the region’s
fine sand and the tradition of pearl
harvesting, which are offset by the
indigenous dark hues of wood.
The layouts for the common areas
The external
architecture of the
tower is inspired by
the geometries of
the desert flower
Hymenocalis and
regional patterning
systems
of the tower have been inspired by
cursive Arabic writing as rooms flow
elegantly in an intelligent interplay of
light and shadow.”
A mixed-use tower, featuring the
world’s first Armani Hotel Dubai and
Armani Residences, alongside cor-
porate suites, residences, retail and
leisure facilities, Burj Dubai is at the
centre of Downtown Burj Dubai, a
500-acre mega-development by
Emaar Properties. Among an array
of lifestyle amenities, the tower will
have a public observatory deck on
level 124.
Downtown Burj Dubai encom-
passes The Dubai Mall, one of the
world’s largest shopping and en-
tertainment destinations; several
hotels; offices and homes. A stellar
attraction within the community is
The Dubai Fountain, the world’s tall-
est performing fountain.
Burj Dubai has already achieved
the distinction of being the world's
tallest structure, surpassing the KV-
LY-TV mast (628.8 metres; 2,063 feet)
in North Dakota, USA. The tower
is taller than Taipei 101 in Taiwan,
which at 508 metres (1,667 feet) has
held the tallest-building-in-the-world
title since it opened in 2004. Burj
Dubai also surpassed the 31-year-old
record of CN Tower, which at 553.33
metres (1,815.5 feet) has been the
world’s tallest free-standing struc-
ture on land since 1976.
DUBAI REAL TIMES
Designed by SOM, Burj Dubai
is constructed by high-rise experts
South Korea’s Samsung Corporation.
Turner Construction International is
the project and construction man-
ager. The tower employs the latest
in wind engineering, structural en-
gineering, structural systems, con-
struction materials and construction 43
methods.
 ENVIRONMENT

Painting a clean picture

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

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

exclusively in the UAE through AGP,

employs LEED (Leadership in Energy
and Environmental Design) stan-
dards in all its paints.
The company is working with
leading consultants in the region to
draw up LEED compliant paint spec-
ifications for their building projects.
44 These will help buildings aquire LEED
compliance in various categories.

Restructuring top management
C
asamia Star Real Estate team. The company also announced
Broker LLC has announced the appointment of Mr. Khaled Kadik
a complete restructuring as the new Managing Director and
in its top management Mr. Merzak Gaci as the new General
team as part of its efforts to further Manager.
boost its regional client base. Its for- Announcing the new team, Mr.
mer CEO Mr. Hendrik Hommel, who Hommel said: “The Board of Direc-
continues to hold his previous re- tors decided to announce a new
sponsibility, will spearhead the new team to spearhead the growth
Casamia Star LLC is a merger between two leading German names, real estate expert
Casamia Star LLC and world renowned architectural firm Gesamtplanungsbuero.
Established by renowned architect Hendrik A. Hommel, included the project
nicknamed ‘Largihaus’ building designed by Mr. Hommel and was featured in the
Guinness Book of World Records 1989 (and years to follow) as Europe’s largest office
building with surface area of 87,000 square metres. The company has eminent
architectural experts specialising in Project Management, Architectural Design,
Investing, Buying, Selling, Renting and Property Management.
years spent in the region’s leading
organisations where he held a port-
folio of senior executive responsi-
bilities, and we look forward to his
bringing that record of expertise to
Tanmiyat."
The former CEO of KSA-based
Zain and the top executive respon-
sible for heading the teams that
launched its operations, Dr. Alah-
madi is a renowned business and
technical expert in the telecommu-
nications sector.
“I am delighted to be taking on
Dr. Marwan Ibrahim Alahmadi this role at such a fast-growing and
prominent company with a portfo-
lio of projects in KSA, UAE, Turkey,
Tanmiyat Group, a Middle East and Jordan. There are numerous op-
developer and investment com- portunities that currently allow the
pany, has appointed Dr. Marwan company to continue its expansion,
Ibrahim Alahmadi as the new Chief and I am keen on building upon the
Executive Officer of the group. company’s successful model and
The Chairman of Tanmiyat unique approach," said Dr. Alahmadi
Group, Sheikh Sulyman bin Ab- who will be responsible for manag-
dulaziz Al Majed said, “He brings a ing the Tanmiyat Group investments
wealth of experience to us from his globally.
trajectory of the company in the
changed global economic and re-
gional real estate landscape. We are
in extraordinarily challenging times
that require innovative solutions,
and aggressive, unprecedented ac-
tions. We have identified, evaluated
and debated a variety of different
business models and strategies to
National Paints has announced
that its Chairman, Salim Sayegh has
been appointed as the President of
the Building Materials Division of the
Arab Union for Real Estate Develop-
ment (AURED). Eighteen countries
recently joined together to form this
first ever umbrella organisation for
the region’s property market. The
announcement was made during a
three-day conference on the estab-
lishment of the union held in Cairo,
Egypt, attended by representatives
from all Arab countries.
This latest development reflects
the important position of the real
estate market in the Arab world.
The industry provides employment
Salim Sayegh
APPOINTMENTS
realise our economic potential. The
new management team is a pivotal
step in this direction.”
Mr. Kadik and Mr. Merzak’s exten-
sive knowledge about the real es-
tate industry will play a pivotal role
in driving Casamia Star L.L.C’s initia-
tives and help achieve its objectives,
he added.
opportunities for about four million
Arab nationals. It also contributes 18
per cent of the total Arab economy
Salim Sayegh said: “This confer-
ence marks the first step towards
establishing strong cooperation be-
tween Arab real estate companies
and organisations. We will work ef-
fectively to lay the right foundations
and to explore the best opportuni-
ties that will allow us to fully lever-
age available resources. We aim to
meet the requirements of all busi-
ness activities related to the sector,
and firmly believe that this initiative
will have a positive impact on the
development and support of Arab
real estate activities. We shall pro-
mote the exchange of experiences
and unified efforts to overcome the
challenges faced by this sector.”
Jess Stoffer, President of the
World Conglomerate of Interna-
tional Real Estate Unions, delivered
a speech in which he confirmed the
approval of the inclusion of the Arab
Union in the international group. He
invited attendees to participate in
DUBAI REAL TIMES
international conferences to be held
in Madrid and San Diego.
45
 MARKET TRENDS
UPDATES // LAWS&& ANALYSIS
REGULATIONS
//
Q&A
Your questions answered by
Jacqueline Latham, DLA Piper
Middle East LLP
Q. My tenancy agreement is due to expire in a month. I have been in
negotiations with my landlord about renewing the lease at a cheaper
rent. My landlord has come back to me and now says that I must leave
because he wants to live in the property. Is this possible?
In the event that a landlord (or his "first degree" relative) wants to move
into a property that already has a tenant in place, the general position is
that the landlord must give the tenant notice, by way of a Notary Public or
registered mail, 12 months' prior to the tenancy contract expiring. If the
tenant is evicted at the end of the tenancy contract on the grounds that
the landlord wishes to use the property himself or for a first degree relative,
the landlord may not lease the property to another tenant for at least two
years for residential properties, and three years for non-residential proper-
ties, both periods commencing from the date of recovering the property,
unless the relevant judicial committee decides a shorter period is appro-
priate.
Q. I work in the sales department of a development company and we
have been selling units off-plan for some time. However, lately some
purchasers have defaulted on their obligations under their SPAs. I have
heard that new measures have been introduced concerning off-plan
sales and I would like to know if these will affect refunds to purchasers.
Yes. Law No. 9 of 2009 was recently issued and it amends Article 11 of Law
No. 13 of 2008, which essentially dealt with the monies a developer can
retain in the event of a purchaser's default in respect of an off-plan pur-
chase. The new Law gears the amount that a developer can retain against
a percentage-based construction milestone. For example, if 60% - 79% of
a development has been completed, the developer can retain 40% of the
purchase price, as specified in the sale and purchase agreement. Law 9 of
DUBAI REAL TIMES
2009 also provides that the Real Estate Regulatory Authority (RERA) may
cancel a project upon consideration of a ground-based report. In such an
event, a purchaser will receive a full refund in accordance with Law No. 8
of 2007 concerning escrow accounts of real estate developments in the
Emirate of Dubai. Therefore, it is important to be familiar with the project
completion bands and how it will affect the monies that a developer can
retain if a purchaser defaults.
46 Q. We developed a property 18 months ago and have received some
complaints from several purchasers about cracks appearing in their
walls. We are being told by these purchasers that we must rectify the
defects but as the developer, is this really our responsibility 18 months
down the line?
A developer can be held accountable because Article 26 of Law No. 27 of
2007 concerning the ownership of joint properties (condominiums) in the
Emirate of Dubai, places an obligation on developers in respect of struc-
tural defects for a period of 10 years and installed defects for a period of
one year, both periods commencing from the date the completion state-
ment has been obtained. However, you may take some comfort from the
fact that Article 880 of the Civil Code (Law No. 5 of 1985) provides that
an engineer and a contractor working under the engineer, will both be
liable to their client (presumably developers) for structural and installed
defects for a period of 10 years commencing from the time of delivery of
the work.
Q. I am a French national, currently based in KSA, and I was visiting
Dubai with my family earlier this year. We really enjoyed our trip and
as a result, we have been considering purchasing a property in Dubai.
We were taken by some of the villas we drove past in Jumeirah but a
friend told us that there could be some restrictions on where we can
buy. Is this true?
Yes. The areas designated for foreign ownership in Dubai are set out in
Regulation No. 3 of 2006 concerning the determination of areas where
non-locals can acquire properties in the Emirate of Dubai, which pre-
scribes a list of areas where non-nationals can acquire absolute ownership
(essentially, freehold) or usufructs of up to 99 years: for example, there are
plots on Palm Jumeirah and at Dubai Marina, which are designated areas.
It is useful to obtain the actual plot reference, as per the title deed of the
property in question, and check the reference against the areas listed in
the regulation. There are, however, areas in Dubai which are commonly
thought to be designated areas but these have not in fact been legally
designated as such, and therefore, a developer cannot validly claim that it
has been. It may be the case that these areas will be designated as areas
permitting foreign ownership in the future, but this is a risk which you may
or may not wish to take.
Jacqueline Latham is a Legal Consultant (England and Wales qualified),
Real Estate at DLA Piper Middle East LLP, Dubai, www.dlapiper.com
 UPDATES // LAWS & REGULATIONS

Translation and views supplied by Al Tamimi & Company

and do not necessarily reflect RERA’s point of view

Law No. (9) of 2009

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

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

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

Issue the following Law:

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

Emirate : Emirate of Dubai.

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

Real Estate Brokers in the Emirate of Dubai.

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

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

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

MOHAMMED BIN RASHID AL MAKTOUM

RULER OF DUBAI

Issued in Dubai on 12 April 2009.

DUBAI REAL TIMES

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