OFFICIAL MAGAZINE

OF REAL ESTATE REGULATORY AGENCY

MANAGING EDITOR
K Raveendran ravi@sterlingp.ae Message from the CEO
MANAGING DIRECTOR
Sankaranarayanan
EDITOR
sankar@sterlingp.ae
A Sharing Society
Linda Benbow linda@sterlingp.ae “Sell, sell, sell.”
“Sell the biggest.”
Contributing Editors
“Become the richest.”
Vanit Sethi vanit@sterlingp.ae
“Offer the most spacious unit with the best view and get finance
Manju Ramanan manju@sterlingp.ae
in only one hour.”
Creative Director
Harikumar PB harikumarpb@gmail.com This is exactly how some of Dubai sector stake holders were acting.

Designer For the past few years Dubai’s real estate market boomed and witnessed un-
Ujwala Ranade ujjwalaranade@yahoo.com precedented returns on investment. The buzz words “most spacious”, “sea
view” and “most luxurious” were heard around town as individuals strove to
Sales and Marketing earn the most money and flip properties as quickly as possible for as much
General Manager (Sales & Marketing) profit as possible. The market was moving quickly, yes, - and upward, - however
Radhika Natu radhika@sterlingp.ae not in a sustainable fashion.

Product Manager
Since RERA was established the focus has been on fostering sustainable growth
Vijayan G vijay@sterlingp.ae
and development in the market, based on demand, transparency and trust.
Whereas previously the industry witnessed great selfishness, where individuals
Accounts & Administration isolated themselves from others, honoured hidden agendas and intentionally
Biju Varghese biju@sterlingp.ae concealed useful information from colleagues, all the while RERA has been en-
couraging a market based on team work and sharing.
Office Co-ordinator
Daisy Cartagena Orfrecio daisy@sterlingp.ae
As today’s market is going through tough times, I do not believe any person
Circulation Supervisors will succeed working alone. I am confident that all of the stakeholders in the
Ibrahim A. Hameed real estate sector must work together, to share information and experiences so
Saleem K U that as an industry we may emerge successfully from this situation. I encourage
initiatives such as regular focus group meetings to share thoughts, exchange
information and set action plans for the future. There are many other effec-
Printing tive tools to accomplish the same goals, and as an industry I urge us to work
Asiatic Printing Press L.L.C., PB 3522, Ajman, UAE. Tel. 06 743 4221, together, be creative and pro-active to embrace such initiatives.
www.asiaticpress.com,
email: asiatic@eim.ae
Distribution:
Eng. Marwan Bin Ghalita
CEO, Real Estate Regulatory Agency
Tawseel PB No 500666
DUBAI REAL TIMES

Dubai, UAE. Tel: (+971 4) 342 1512

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 C
O
N
4 COVER STORY
T
CLEARING E
THE AIR N
T
S

14 PERSONALITY
Essa Saeed Ahmed Al Mansoori

11 OWNERS ASSOCIATIONS 45 LAUNCHES

Commercial tower and hotel apartments
Interim measures
12 NEWS 46 UNDER CONSTRUCTION
Payment schemes, buildings on schedule
Transactions in first 45 days
16 DEVELOPERS 49 INFRASTRUCTURE
The first pultrusion factory in Dubai
Current list
20 MARKET TRENDS & ANALYSIS
From ‘greed to need’ 53 Law & Regulations Questions & Answers
Make me an offer 54 Law & Regulations Law 27
Dubai is too big to fail
Growing divergence in office rentals
DUBAI REAL TIMES

28 COMMENTS
Time to get it right
Mergers – tread with caution
Living in a connected world
Property players vs property investors
The changing face of real estate
When cash was king

3
 COVER STORY

CLEARING
THE AIR
By Ambily Vijaykumar

»» RERA’s new initiative to create transparency regarding status of projects across Dubai
»» Monthly report on all projects registered with RERA on its website
»» New Rental Index to be out in April
»» Rents across Dubai likely to drop by as much as 50 per cent depending on location

I
n a move to help the Dubai real
estate market get back on its
feet, the Real Estate Regulatory
Agency (RERA) has come out
DUBAI REAL TIMES
with a scheme to help buyers stay
abreast with monthly progress on
their purchased property. This has
been done through an online report
on RERA’s website www.rpdubai.
com and includes the latest on-site
photographs of the status of various
developments. The monthly reports
are available to buyers all over the
globe.
For this purpose, the regulator
has classified real-estate projects un-
der various categories, including:
• projects that have not been
launched
• projects that have been launched
but construction is yet to com-
mence
• projects under construction but
whose delivery has been re-
scheduled, and
• projects that are on the verge of
completion.
RERA engineers are visiting the
building sites of various develop-
ment projects in the Dubai and are
doing a spot check to bring in the
up-to-date information required.
“Six hundred and ninety five
projects with escrow accounts, out
of the total 875 registered with RERA
will be covered under this scheme,”
informs Marwan bin Ghalita, CEO of
RERA. The move has been necessi-
tated after reports stated that over
50 per cent of the projects have

“The law gives anyone the right to register

his/her property by approaching the Land
Department. Even in cases where the master
developer has not registered the property,
the onus is on the investor to do so and
secure his/her rights.”
Eng. Marwan Bin Ghalita, CEO of RERA being interviewed by
4 Mike Bridge for a local radio show

been stalled as a result of the global
economic slowdown.
The regulator has divided ap-
proved projects into two catego-
ries. Property rights on projects that
have reached 60 per cent or more of
completion has been documented
with RERA and the regulator has
obtained assurances from the devel-
opers concerned that these projects
will be competed on schedule. The
remaining projects that have not
reached the 60 per cent completion
mark have opened escrow accounts.
Financial auditing and other neces-
sary settlements to deposit buyers’
paid amounts in the escrow account
for each project have both been
done.
Besides updating buyers, the
regulator is also collecting informa-
tion on the size of various real estate
development companies, the num-
ber of registered projects, and clas-
sifying them by nationality.
Lack of funds available in the
market has also raised questions on
whether or not developers will be
able to deliver sold projects on time
and whether buyers will be able to
finally get what they’ve paid for. To
lay these doubts to rest, RERA simul-
taneously conducting financial au-
diting on all projects registered with
it, in co-ordination with developers
and managers of various escrow ac-
counts.
“In a booming market, everyone
Lack of funds available in the market has also
raised questions on whether or not developers
will be able to deliver sold projects on time and
whether buyers will be able to finally get what
they’ve paid for
makes mistakes. We can’t allow mis-
takes to be repeated,” says Marwan
bin Ghalita. “Financial auditing is to
make sure that there is enough cash
flow for the projects that are under
construction,” he adds.
RERA has, in the process of re-
taining only reliable developers in
the Dubai market, brought down
the number of approved develop-
ers to a little under half of its original
number when the regulator was es-
tablished two years ago. From a to-
tal of nearly 870 developers, it now
stands at 427.
Has the financial auditing then
been able to separate the wheat
from the chaff? After all, fly-by-night
developers overcrowded the real es-
tate market and contributed to the
slowdown in Dubai.
“People need to co-operate and
some people need to sacrifice,” says
Eng. bin Ghalita . “These steps are
being initiated for the sake of the
healthy and stable growth of the
real estate market. We have at the
moment cancelled two projects but
there were no customers on board,”
informs Eng. bin Ghalita.
Add 27 more projects to that list
since RERA set its eye on them. “They
need to be cancelled,” says Eng. bin
Ghalita. Cancellation is not an easy
process though. Apart from the for-
malities of going through RERA and
seeking their approval, there has to
be a 10-day advertising campaign in
the media.
But not all cancellations are a
loud affair. “Some developers are
meeting their clients and are agree-
ing on cancellation among them-
selves. There are cases where clients
have got the money immediately af-
ter they reached an amicable settle-
ment for claims. Others are settling
for a scheduled payment,” states
Eng. bin Ghalita
While this year will see a nearly 20
per cent drop in the supply figures,
it could well touch 30 per cent in
2010 reveals Bin Ghalita; a move that
would leave room only for develop-
ers who are in for a long-haul.
RERA does not think that the
Mohammed Sultan Thani, Assitant Director-General of the Dubai Land Department
number of cancelled projects will
reflect poorly on Dubai’s real-estate
story. “Investors still have the con-
fidence in Dubai and we are only
consolidating it,” informs Eng. bin
Ghalita.
Proof of three Indian investors
who are beginning new projects in
Dubai. Eng. bin Ghalita says that the
investors believe that this is the right
time to start a new project since
land has become affordable and
with RERA regulating the real estate
market, the investors have the as-
pect of law compliance dealt with.
Beginning new projects will not
be a cake-walk for developers. They
will now have to own the land 100
per cent before beginning construc-
tion. Developers also need to show
that they have the finances to carry
out 20 per cent of the construction
of the new project before they are
given approval for off-plan selling.
To eliminate scenarios where
buyers have paid up to 70 per cent
of the value of the property with-
out construction commencing,
the real-estate watchdog has now
linked payment to construction. So
you pay only for what amount of
work has been done.
RERA will soon introduce a clause
where investors will also be given a
15 day ‘cool-off’ period to study the
property contract before inking it.
This move is to ensure that devel-
opers and contractors pull up their
socks. But there have also been cas-
es where buyers have been found
wanting by investing in properties
they can’t consistently finance.
“Previously, people looked for
property and then looked for fi-
nancing options. Now, they will
not get a property without hav-
ing their financial source in place,”
informs Marwan. Considering that
banks have become choosy in their
lending business, especially to the
real-estate sector, this step will help
eliminate rising number of defaults.
Since the financial crisis has
thrown up an unprecedented situ-
ation, finances are a concern for
DUBAI REAL TIMES
developers as well; RERA says “there
will be a consolidation of several
projects”. For that, the regulator is
involving the master developer and
the sub developer of various proj-
ects in a dialogue to “co-operate to
meet the expected challenges in
the market”.
This, Eng. bin Ghalita says in- 5
cludes, “rescheduling land pay-

ments, merging some land plots,
transferring some paid amounts to
the developed land accounts and
facilitating the completion of infra-
structure for projects.”
Consolidation of projects is need-
ed in cases where developers who
began two projects at a given time
wish to move people from one proj-
ect to the other to minimise expen-
diture. RERA gives a green signal to
such requests but on condition that
the investor approves this move and
the property is registered with the
Land Department.
“We have not received reports of
a single abandoned project so far.
We are not denying the fact that if a
person comes with a hidden inten-
tion to cheat, then he will achieve
what he wants to. But reports of
abandoned projects are untrue,”
Eng. bin Ghalita clarifies.
What is true is the increasing
number of complaints regarding
claims that RERA is receiving. “Ev-
eryone is now saying, give my mon-
DUBAI REAL TIMES
but a global one. There has defi-
nitely been a slump especially in
the sales volume but value of the
property has more or less remained
unchanged,” states Eng. bin Gha-
lita.
RERA says it has seen a dip of
45 per cent in sales while compar-
ing figures of the first part of 2008
with the first few months of this
year. There have been a total of
5,400 transactions so far this year
with unit apartment sales taking
up a major bulk of it. The regula-
tor is confident that Dubai’s sale-
ability has not been hit and with
the $20 billion bond programme
announced by the Dubai govern-
ment, “the sentiment is up”.
“We are confident about manag-
ing our financial affairs. Mega proj-
ects are moving, but a few might be
rescheduled. That however is not a
cause of worry since we will ensure
that they are completed,” says Eng.
A new online scheme in Dubai will help property bin Ghalita.
“Another reason to be confident
buyers determine whether the construction of the resilience of the Dubai mar-
of their homes has been cancelled, delayed ket is news of the registration of a
or is on schedule. The Independent Progress Dh 200 million project on Al Wasl
Road,” says Mohammed Sultan
Monitoring Report will be compiled by Thani, Assitant Director-General of
government assigned engineers who will tour the Dubai Land Department.
Dubai's housing construction sites to check that Generally a start-up is not the
issue; it is sustaining things that
progress is being made and assess the stage have become difficult. With banks
that the work has reached. Some reports are becoming choosy while lending
especially to the real estate sector,
already available on the RERA website. sustaining investor confidence will
be a challenge.
“Banks cannot stop lending since
tor since January 2008, while 505 secure his/her rights,” adds Eng. bin they will be out of business. Some
complaints within a short span be- Ghalita. people say that the market will start
ginning August 2008 have been re- RERA is working side-by-side picking up by April. Let the market
ceived on their website. So what is with the master developers to en- be and it will correct itself,” opines
the nature of those complaints? sure that investor confidence in the Eng. bin Ghalita.
“Mainly the non-availability of Dubai real estate sector remains RERA says it is taking its role as
the sale and purchase contracts, intact. mediator much more seriously than
non-commencement or delay of Another concern that the regu- ever before since the global finan-
construction works, delay in deliver- lator has been trying to address is cial crisis has thrown up an unprec-
ing units, and receiving funds out- the unsustainable rents across the edented situation. “We are the me-

ey back. What we want to know is
where they were when they bought
the property three years ago? They
did not bother to register the units
in their name at that time, and now
when disputes are erupting, they
don’t have the proof to reclaim
money,” says Eng. bin Ghalita.
6 A total of 525 written complaints
have been received by the regula-
side the escrow account,” informs
Eng. bin Ghalita.
How is RERA then addressing
the complaints? “The law gives
anyone the right to register his/her
property by approaching the Land
Department. Even in cases where
the master developer of a property
has not registered the property, the
onus is on the investor to do so and
emirate. A new rental index will
be out in April and according to
trends, rents are likely to reduce de-
pending upon the location in the
emirate. The new rental index will
be based on new contracts as well
as existing contracts that have not
expired.
“The slump in the real estate
sector is not a local phenomenon,
diators for an amicable settlement
in disputes. The responsibility of ar-
bitration is with the Dubai Real Es-
tate Court. Our effort to include de-
velopers, contractors and investors
in this latest initiative is to increase
transparency and eliminate losses
in the sector that has been hit the
most by the economic crisis,” says
RERA’s Chief Executive Officer.
 Facts & Figures
RESIDENTIAL SUPPLY
No. of residential units entered the market in 2008
No. of residential units to enter the market in 2009
No. of residential units to enter the market in 2010
Types of received complaints
• The non-availability of sale & purchase contracts
29,319 • The non-commencement or delay of construction works
• The delay in delivering units
31,003 • Receiving funds outside the escrow account
• The non-compliance of real estate brokers with applicable laws and stan-
43,880 dards, mainly Law No. 8.

• The share of main developers, Emaar, Nakheel, Dubai Holdings is 62.122
residential units) during the period from 2008 – 2011.
• RERA's Studies & Research Section identified that 20 per cent of residential
units in 2009 may not enter the market on time on the basis of available
data, while 40 per cent of 2010 residential units may be delayed as well.
VITAL STATISTICS
The total No. of developers registered in RERA 427
The total No. of projects registered in RERA 87
The total No. of developers that have been deleted from Developers’ 27
Register, on their wish
The total No. of projects that have escrow accounts 695
The total available amount in the escrow accounts after RERA has
supervised and agreed to issue payments from these accounts to cover
construction works in the projects, as per the law which links between Dh 8 billion
the payments from the escrow accounts and the ratio of project
completion.
Active and accredited banks and financial institutions as trustees of 26
escrow accounts from RERA
Mohammed Sultan Thani, Assistant Director-General
of Dubai Land Department – Excellence & Corporate
Governance Affairs Stated:
T he total value of transactions recorded by Dubai Land Department
during 2008 reached Dh280 billion, corresponding to a growth rate
of 59 per cent compared to 2007, which witnessed 184 per cent growth
in comparison to 2006. In 2008, DLD registered 19.983 transactions as per
the following:
• 5,783 sales transactions of land registered in the department during
2008 with an estimated value of Dh70 billion.
• 11,908 sales transactions of flats registered by the department in 2008
with an estimated value of Dh12 billion.
• 2,292 sales transactions of residential villas registered by the depart-
ment in 2008 with an estimated value of Dh2 billion.
(The value of transactions in 2006 reached Dh62 billion approximately,
and the number of transactions recorded in Dubai Land Department
were 5048. In the meantime, the value of transactions in 2007 reached
Dh176 billion and DL recorded 16,037 transactions).
There were 22,925 buyers in 2008.
Top Nationalities for purchasing lands in 2008
The number of land buyers reached 6053 and the proportions of
nationalities were as the followings:

Real estate management company registered in Ejari Program 209 29% UAE

The registered lease contract in Ejari Programme by the approved real 2.822 27% Asia
estate management companies
19% EU
Real estate brokers registered with RERA belonging to 104 5.974
nationalities 9% Middle East

Real estate office registered at RERA 1.839 6% GCC

Trainees who passed the real estate training course organised by RERA
in collaboration with Dubai Properties Faculty and Administration & 6.671
Real Estate Academy
Top nationalities for purchasing residential apartments in 2008
The number of apartment buyers reached 14060 and the proportions of
nationalities were as the followings:
DUBAI REAL TIMES

The proportion of UAE citizens, the highest among brokers 38%

33% Asia
The proportion of male brokers 73%
27% EU
The proportion of female brokers 27%
15% Middle East
Real estate disputes submitted to RERA from the various categories in 1.030
the market 5% UAE
From January 2008, RERA has received 525 written complaints, while the 7
website: www.rpdubai.com has received 505 complaints since August 2008. 5% North America
 Transactions
Sales Transactions
Total No. of Units Total Value (in billion dirham) Total Area (Sq.ft)
Lands 3,887 33 56,695,682
Flats 11,885 12 13,363,451
Villas 2,324 4 3,233,392

Mortgage Transactions
Total No. of Units Total Value (in billion dirham) Total Area (Sqf)
Lands 1,265 26 78,409,112
Flats 1,335 2 2,280,981
Villas 1,030 2 3,150,889

Value of transactions (in billion dirham) No. of transactions

300
59%
250 280 50,000
103 %
40,000
200 184% 30,000
176 218 %
150 20,000
10,000
100
62 5,048 16,036 32,596

2006 2007 2008 2006 2007 2008

Top 10 areas based on Value of Sales, 2008

Value of Sales
10 9
8
6
6 5
4 3 3 3 3 3 3
2
2
0
Sheikh Palm A Jadaf Emirates Al Warsan Ranches Nad Al Jebel Ali Jebel Ali
Zayed Jumeirah Hills Rawyah First Shiba Industrial
Road Third

Value Billion AED

No. of Sales
1000 914
816 786
DUBAI REAL TIMES

800
613
600
400
246 195 194 183 169 151
200
0
Al Palm Ranches Emirates Al Jebel Ali Warsan Emirates Emirates Mirdiff
Rawyah Jumeirah Hills Jadaf First Hills Hills

8
 Cumulative No. of Units Supplied From
Master & 3rd Party Developers
Number of Purchasers of Lands in 2008 = 6053
n UAE
28,664 n ASIA
3.666 9,750 n EUROPEAN UNION
25,653 n MIDDLE EAST
21,253 15,216
n GCC
n NORTHERN AMERICA
n EUROPE
2008 2009 2010 n NORTHERN AFRICA
n OCEANIA
n Master n 3rd Party
n SOUTHERN AFRICA

Top nationalities for purchasing residential villas in 2008 n EASTERN AFRICA

n CENTRAL AMERICA
The number of apartment buyers reached 2.812 and the proportion of
n WESTERN AFRICA
nationalities were as the followings
n THE CARIBBEAN
n SOUTH AMERICA
36% Asia

28% EU

13% Middle East

6% United Arab Emirates

5% North America

Males have exceeded females in purchasing land in 2008

The number of male land buyers 4687
The number of female land buyers 1366

The percentage of land buyers by gender:

Male 77%

Female 23%

Males haves exceeded females in purchasing residential units in 2008

The number of residential units (male buyers) 10.510
The number of residential units (female buyers) 3.550

Number of Purchasers of Flats in 2008 = 14,060 The percentage of land buyers by gender:
75% Male
n ASIA
25% Female
n EUROPEAN UNION
n MIDDLE EAST
n UAE Males haves exceeded females in purchasing residential villas in 2008
DUBAI REAL TIMES

n NORTHERN AMERICA
n EUROPE
The number of male buyers of villas 2002
n GCC
n NORTHERN AFRICA The number of female buyers of villas 810
n OCEANIA
n EASTERN AFRICA
n WESTERN AFRICA The percentage of villa buyers by gender
n SOUTHERN AFRICA
were as follows:
n MIDDLE AFRICA
n SOUTH AMERICA 71% Male
29% Female 9

Regulations and interim
measures relating to
service charges
S
oon four regulations relating
to Jointly Owned Property
developments in Dubai will
be issued (the “Regulations”).
These regulations will create the legal
framework enabling developers, and
in certain instances, owners to ap-
ply for the registration of an Owners
Association with RERA. Developers
will have six months from the date
the regulations are issued to register
Owners Associations for their devel-
opments, and if they do not move
promptly, owners will themselves be
able to register the Owners Associa-
tion at the developer’s expense.
RERA has developed an on-line
system for the registration of Own-
ers Associations. Developers wish-
ing to use the on-line system will
need to undertake a short training
programme, after which they will be
given a user name and password to
access the system. The system will
be available for use on March 15 -
this should allow sufficient time for
those developers keen to progress
their registrations to prepare the
necessary documentation and infor-
mation.
In addition to regulating regis-
trations, the regulations introduce
international standards governing
the management and operation of
Owners Associations in Dubai. The
owners of apartments or villas in a
registered Jointly Owned Property
development will become members
of an Owners’ Association which will
be responsible for administering
and maintaining the common areas
in their building or villa community
and will be governed by a Board
elected by the owners. Owners will
be empowered to view the financial
statements of the Owners Associa-
tion and to approve their budgets for
the expenses that will be incurred in
managing and maintaining the com-
mon areas on an annual basis.
Accordingly, Mr. Eng. Marwan bin
Ghalita, CEO of RERA has announced
OWNERS ASSOCIATIONS
are about to be handed over, or are
in the process of being handed over,
will be subject to the approval of
RERA and after approval will apply
until the first General Assembly of
the Owners Association.
Owners in both categories of
buildings will be required to pay the
relevant service charges until the
owners approve, with or without
amendment, the service charges at
the first General Assembly of the
Owners’ Association.
Service charges which have al-
ready been paid by owners for the
2009 year will be adjusted accord-
ingly after the Owners Association
approves the service charges.
Developers or managers cur-
rently managing Jointly Owned
Properties (such as buildings or
villa communities) must continue
to manage such properties until the
first General Assembly of the Own-
ers’ Association at which time they
must present a proper budget for
consideration by owners.
Owners Associations will be re-
quired to appoint an Owners’ As-
sociation manager (“General Man-
ager”) who will be responsible for
the administrative, secretarial and
the following clarifications to the financial affairs of the association.
freeze on service charges an- The general manager will need to
nounced recently: obtain a license from RERA and to
Service charges for existing do so will need to show that they
buildings, (i.e. buildings that have are qualified to manage Owners’
been handed over) will be frozen Associations, attend the necessary
at the rates that were applicable training course and have the appro-
in 2008 unless the 2009 rates are priate professional indemnity insur-
for a lesser amount or have been ance in place.
approved by RERA. The freeze will As soon as the Regulations are is-
What is an Owners Association?
• Owners’ Association is made up of owners in apartments or
villas in a registered jointly owned property.
• The Owners’ Association is responsible for administering
DUBAI REAL TIMES
and maintaining common areas of their building or villa
community.
• Owners will be able to look at financial statements of the
Owners’ Association and check expenses.
last until the first General Assembly sued, the Dubai Land Department
of the Owners Association (which and RERA will be holding informa-
will need to be held within three tion sessions for developers, inter-
months of registration). ested owners and professionals in 11
Service charges for buildings that the real estate sector in Dubai.
 RERA NEWS

Transactions in first 45 days

reached Dh70.2 billion. The most
activity was seen last May, with
Dh11.6 billion done in total. With
just Dh1.9 billion done in Decem-
ber, the amount recorded in the
first 45 days this year is a strong sign
that the market is already improv-
ing, he said.
"It is a good figure, very positive.
About Dh6 billion of this is from
selling and mortgages. It means the
market is not like how it was a year
ago. Today the market is like it was
in 2007, a little slow but still people
are registering properties,” he com-
mented on the opening day of the
International Property Show (IPS)
Dubai 2009. "There are fewer buy-
H.H. Sheikh Mohammed bin Khalifa Al Maktoum, Chairman, Dubai Land ers today as people are afraid but,
Department opened the International Property Show (IPS) Dubai 2009
for real estate, you don't invest for
trolled the exhibitors at IPS. All local
exhibitors had to be approved by
them and all international exhibi-
tors had to provide proof of regis-
tration from their home country.
The Agency has increased the level
of transparency and regulations in
the market so far this year, which
will give investors further signs of a
maturing market.
"The sentiment will take time to
change. These new rules and regu-
lations are not reactive, they are for
the future. If anything needs to be
done, then we will do it," Moham-
mad Sultan Thani, Assistant Director
of Dubai Land Department, stated
recently. "What we are seeing more
and more is that people are regis-
tering now but with smaller values.

D
h11.3 billion in land transac- said Sultan Butti Bin Mejrin, Direc- one year only." It is rare to get the Dh200 million or
tions was recorded during tor General of Dubai’s Land Depart- To give potential buyers more Dh300 million transactions that oc-
the first 45 days of this year, ment. In 2008, total transactions confidence and comfort, RERA con- curred before," Sultan Thani added.

Clean up your act

D
ubai’s property regulator is
planning to get tough on
developers who fail to meet
standards on issues such as delivery
schedules and quality. It will soon
‘name and shame’ those develop-
ers who break promises to investors,
fail to live up to promised delivery
schedules and quality assurances, as
it endeavours to clean up the sector
to facilitate investment.
Eng.Marwan Bin Ghalita told
property developers at a briefing
recently that they would be allowed
DUBAI REAL TIMES
from left to right, Rob Lovett, Mohammed Sultan Thani, Tony
Ciochetti, Kerrie Alder
will have to consider. These will have
to be approved by RERA and will be
Islamic banking arm of Mashreq -
that discussions on the issue of visas
gun exploiting potential buyers. The
UAE federal government has now fi-
nalised a six-month freehold visa for
investors - which will be announced
in a few weeks time.
Delays and complaints of serious
construction defects in some proj-
ects have also not escaped RERA ‘s
attention. Developers needed to be
flexible and work with investors dur-
ing the current real estate slowdown,
they encourage.
The general consensus of the
meeting of master developers was

to retain 30 per cent of the value of
the property (as per the contract) if
investors sought to pull out of proj-
ects - a move aimed at protecting
and helping developers overcome
the current slump. “However, we’ll
be flexible. Exceptions may be made
if the investor is unable to continue
12 to pay due to genuine reasons such
as loss of pay, job loss, etc, which we
handled case-by-case.”
RERA has been particularly ac-
tive in recent months as it strives
to restore investor confidence. It re-
cently issued a circular outlining the
policies that would govern service
charges in the context of freehold
properties.
Bin Ghalita also told the meet-
ing, organised by Badr Al Islami - the
linked to freehold ownership were
in the final stages and an announce-
ment to this effect would be made
soon.
Dubai’s master developers -
Emaar, Nakheel and Dubai Properties
- had been facilitating freehold visas
for property buyers till last year when
the government stepped in after no-
ticing that some developers had be-
that they were pleased that RERA has
been in talks with them. Certain pro-
posals are in the pipeline looking at
ways to assist customers. Also, there
are indications of a real estate com-
mittee being formed by profession-
als from within this sector serving
as a platform for consultation prior
to issuing of new regulations and
guidelines.
Back to school for Dubai developers     
I
n an attempt to rebuild investor
confidence in the property sec-
tor, a new system which grades
developers in Dubai is being intro-
duced.
Eng. Marwan bin Ghalita, CEO of
RERA, said, “We are evaluating all the
developers in Dubai. They will be
graded according to their financial
liquidity, their experience in the mar-
ket, the number of projects and the
added value they give to the com-
munity. So, before people invest in a
project, they will see what the rating
of the developer is and will be able
to base their decision on that.”
As well as attempting to boost
confidence, the new system is also
aiming to reduce the number of de-
velopers which are currently saturat-
ing the market. RERA believes they
need to be reduced to a more man-
ageable level. “There are too many
developers. We need to make the
number smaller so we can control
them more and they can serve the
market better,” he added.
Keen to improve the overall im-
age of development properties in
Dubai and to make it a transparent
industry, RERA also has further regu-
lation introductions in the pipeline.
One will require each developer at-
tempting to register off plan projects
to fully own the land first. Another
new regulation will ban freelance
property agents from operating in
the emirate and all brokers will have
to take a RERA training course and
be certified by the Dubai Police.

Discussing new
“Around 20 per cent of residential units in Dubai
leadership paradigm with
young leaders
may not come on to the market as expected in
2009 because of market conditions, according to
officials at the Dubai Land Department. About
31,003 units were anticipated to hit the market

this year, compared to 29,319 units in 2008.”
Marwan Bin Ghalita said “Residential rents in
Dubai could fall up to 50 per cent by the end of
this year in certain neighbourhoods. ‘The rents
have already begun to come down. Depending
on the locations, this could range from 10, 20 to
up to 50 per cent by the end of the year.”
“The Independent Progress Monitoring Report
will be compiled by government engineers who
will tour Dubai’s housing construction sites to
check that progress is being made and assess the
stage that work has reached,” RERA’s CEO said.
“The reports will be available on the website,
www.rpdubai.com from next week, with
photographic evidence of building work and
details of the stage reached and pending works.”
Marwan Bin Ghalita, CEO of RERA, said “The
revised rental index will be completed once all
the new tenancy contracts have been signed for
the current year and registered on RERA website.
The first rental index was released at the end of
last year and caused controversy as it was based
M
ohammed bin Rashid Programme for
Leadership Development (MBRPLD),
an innovative leadership programme
designed to develop national leaders capable
of promoting the sustainable development
of the UAE, conducted a new session of ‘The
Book Summary Review’ with participants of
the Young Leaders level examining the new
leadership paradigm in Dean Williams’ “Real
Leadership: Helping People and Organisations
Face Their Toughest Challenges.” The session
provided topical discussion points as Williams’
book offered a new approach that redefines
the proper function and purpose of leader-
ship.
Mr. Marwan Bin Ghalita, CEO of the Real Es-
tate Regulatory Agency, served as the reading
session’s special guest speaker. The Book Sum-
mary Review has been created as one of the
periodic activities of the Young Leaders Pro-
gramme, a level of MBRPLD that seeks to quali-
fy young leaders through training programmes
and workshops in line with the strategic plans
and aspirations of Dubai.
a detailed discussion of this important concept
and we are pleased that the participants were
able to appreciate the merits of this new leader-
ship paradigm.”
Marwan Bin Ghalita, said: “MBRPLD is part of
Dubai’s vision to establish a sustainable society
as the participants of today will be responsible
in providing continuity to the development ini-
tiatives of the emirate. I am pleased with the
direction it has taken in terms of teaching the
participants to self manage themselves and to
positively influence others to be more produc-
tive citizens, particularly in these times of global
economic difficulties. As leaders, the participants
need to be responsive to any unexpected turn of
events in the future and I believe that MBRPLD
is providing the right training to enable them to
successfully handle such situations.”
Real Leadership argues that the true task of
the leader is to get people to face the reality of
any situation themselves and develop strate-
gies to deal with problems or take advantage
of opportunities. Williams points out that any
leadership that lets people sidestep the some-
DUBAI REAL TIMES

on last year’s rents, thus not taking into account
the financial crisis and the subsequent drop in
rents. We hope to publish an updated index
soon, maybe in April.”
Adel Al Shared, Executive Chairman of MBR-
PLD said: “The ongoing challenges being faced
by the entire society underscore the critical
importance of effective leadership. We believe
that leaders must be able to rally their people
to help in nation building regardless of the
circumstances. Dean Williams’ book provides
times harsh truth of reality is irresponsible and
ultimately ineffective.
The Book Summary Review sessions aim to
cultivate analytical, communication, compre-
hension and social skills through interaction and
discussions of highly informative and thought-
provoking books.

13

Always an achiever
By Amal Abdul Rahim Al Sahlawi
D
istinguished, foresight-
ed and a strong sup-
porter and contender
for change, Essa Saeed
Ahmed Al Mansouri, Head of the Au-
diting and Follow Up section within
the Trust Account department, has
proved his ability to emerge as a
winner. This can be seen from his
continuous optimistic talks of the
future of Dubai, his enthusiasm
towards work and his meticulous
preparation for the unprecedented
challenges that could arise in the fu-
ture, with all the opportunities and
possibilities that brings.
Since his youth, Mansouri has
been an achiever. Employed in the
Public Prosecutions Department for
a period of one year, he moved to
the Guard in 1995 working in Hu-
man Resources. He continued his
studies while still employed and
graduated from the Higher Col-
leges of Technology in 2003 with a
Diploma in Accounting.
Academic excellence and an
aspiration for better prospects in-
spired him to join the Abu Dhabi
Health Authority as an accountant.
His ambition led to the completion
of his studies, and a degree in 2007
from Griffith University, Australia.
Do you know what the next
step towards his future was – this
man who wanted a break in rou-
tine, while looking forward to to-
morrow? He accepted an employ-
ment offer at RERA. The importance
of this institution and its ability to
impact positively on the real estate
sector, the very heart of Dubai, im-
pressed him, and he wanted to be
part of it.
Any man in the prime of his life can write his
own story here, since Dubai is a place of good
faith and can accommodate all
His job at RERA requires him to
work with guarantee accounts; de-
velopment of policies, regulations
and systems of the accounts for
real estate management organisa-
tion. The department also develops
laws and regulations governing the
activity of banking institutions and
ensures banking activities appropri-
ate for the conduct of the special
real estate accounts registered with
them, monitoring their performance
according to the law. All of this needs
a lot of follow-up, auditing and pro-
fessional communication with the
secretaries of the guarantee account
and developers.
Essa Al Mansouri believes that
the establishment of the guarantee
RERA PERSONALITY // PROFILE
Essa Saeed Ahmed Al Mansoori
account has come a bit late for the
discipline and organisation of the
market, he wishes it had been set up
earlier, but its presence is what is im-
portant now. The real estate market
is a source of income for the emirate
and we need to focus on and benefit
from it. Industry leaders benefit in
terms of knowledge, opportunities,
services, laws and legislation, some
of which are the first of their kind in
this part of the world – the principle
of guarantee accounts has set a prec-
edent in the Middle East.
Talking about career develop-
ment, he refers to the difficulties of
existing opportunities for young
people, which were not there when
he was younger. Dubai is proud of
its achievements. Any man in the
prime of life can create a good fu-
ture here since Dubai is a place of
good fortune and open to all. HH
Sheikh Mohammed bin Rashid Al
Maktoum always says “Give me
knowledgeable and dedicated
people and I will give you the great
glory.” Following his example Essa
tries always to be committed to his
duty and his role in the real estate
sector believing that his knowledge
and dedication is the best way to
success.
Away from his professional envi-
ronment and work pressure, Essa Al
Mansouri’s favourite hobby is camp-
ing trips and he considers himself
an expert. He also believes in the
power of the future. Memories of
old things remain ‘yesterday’ in ef-
fect, no matter how beautiful our
future progress and development
is. His close friend is his father who is
a lot of fun. Al Mansouri credits him
for his perseverance in the struggle
to achieve what he did and the hu-
mility to return to the way in which
he established everything.
“He saw to it that his first priority,
the secret of his success, is his small
family. He is filled with wisdom and
dedication – an ideal atmosphere
for progress and development.”
DUBAI REAL TIMES
Al Mansouri also expresses his
admiration for the great achieve-
ments of women and his love for his
four young children – they are his
first motivation to make the world a
better place to live in.
As a person who embraces
an optimistic view of things and
loathes the dark, Al Mansouri is mo- 15
tivated by his drive to succeed.
 MARKET TRENDS & ANALYSIS // PROPERTY PRICES
DEVELOPERS

LIST OF DEVELOPERS
registered with RERA up to, 19th February 2009
3 Alfajer Properties L L C
770 Alfara’a Homes 6 (Jvs) Ltd
78 Alfaraa Properties
304 Alfattan Properties (L.L.C)
463 Alghanem Real Estate Llc
79 Almadar Investment (L.L.C)
817 Almasah Middle East Investment Limited
411 Alosaimi Real Estate Investments Co L.L.C
18 Alrashid Investments
299 Alshafar Development (L.L.C)
86 Altajir Real Estate L.L.C
448 Amesco Tower Jlt
468 Anil Adinath Bastawade
ID NAME OF DEVELOPER 183 Anis Property Investments Ltd
594 A.C.Holdings Limited 132 Antonia Resources Ltd
514 Aa Global Limited 309 Arabia Group Development Limited
16 Aaa Auctions Organizing & Management 310 Arabia Group Investment Limited
49 Aakar Developers Ltd 378 Arabian Investments Limited
255 Ab Properties Limited 239 Aristocrat Star Investment L.L.C
646 Abdul Salam Mohd Rafi Mohhd 525 Arra Limted
568 Abdulrazzq Ali Almadani 279 Aryene Plus Property Developers Limited
46 Abyaar Real Estate Development Ksc 532 Aryene Property Developers Limited
31 Aci Real Estate Llc 696 Asadollah Hosseinali Kikha
414 Acw Holding Ltd 597 Ashai Tower Jvs Limited
720 Adel Mohammad Saleh Ali Naqi Al Zarooni 36 Aswan Developers Inc
506 Ahmad Abdulla Ahmad & Ayesha Ahmad Abdulla & Amir Badk- 23 Aswan Investments Ltd O.F
oubeh & Armin Niasar
830 Aurora Limited
268 Ahmed Abdul Rahim Alattar Properties
392 Avanti Holding Limited
574 Ahmed Thani Almuhairi&ezzaldin Ibrahim Al-yousef
131 Avetona Global Ltd
328 Al Duaa Holdings Fzc
595 Avon Developers&investments Limited
826 Al Faraa Investments Limited
317 Axon Development (Fzc)
199 Al Jawi Investment L.L.C
235 Azizi Invesments (L.L.C)
4 Al Manal Development
391 B & M Fzco
DUBAI REAL TIMES

784 Al Mazaya Holding Company

308 Bando Engineering & Construction Co Ltd
14 Al Sayyah & Sons Investments(L.L.C)
281 Bangash Builders &developers Limited
194 Al Shafar General Contracting Co Llc
93 Bangash Investments Limited
812 Al Tafany Properties Limited
141 Bavaria Gulf Sandoval Ltd
290 Al Tamimi Investments Limited
148 Bay Central Developments Limited
799 Al Zahra Properties
360 Bay View Investments Limited
704 Albenaa Real Estate Investment-pjsc
134 Beliza Resources Limited
479 Alduaa Residence Limited
16 829 Blue Sky And Nawaab Holdings Limited
320 Bonnington Land Limited 650 Escan Real Estate Pjs
374 Bonyan Emirates Properties 218 Essa Bin Nasser Bin Abdullatif Al Serkal
257 Bonyan International Investment Group L.L.C 26 Eta Star Property Developers (L.L.C)
795 Bosphorus Investments Limited 662 Evergreen Signature Investment Limited
296 Brighton Holdings Limited 250 Fabson Import Export Limited
323 Brookes Corporation 536 Fahed Hamad Saif Bin Fahad And Abdulla Ali Obaid
449 Bukhatir International Realty Development & Investment Llc 688 Fahiman Bhatish & Nania Nagpaul
357 Burj Alalam Holdings Limited 314 Fakhruddin Properties Limited
263 Burj Aldua’a Limited 7 Falcon City Of Wonders(L.L.C)
401 Byblos Real Estate Broker 48 First Homes Ltd O.F
731 C7d1 Limited 541 Flamingo Investments Limited
298 Capital Trust Gulf Limited 95 Fortis Group Ltd F.Z.C
130 Cenita Global Ltd 466 Fortune Dxb Ltd
337 Chapal World Llc 556 Fortune Homes Investment Limited
723 City-d Investments Limited 208 Fortune Investment Group(L.L.C)
358 Cliff Dwellings Enterprises Ltd 406 Fourtune Avenue Investment Limited
431 Comfort Homes Ltd 407 Fourtune Bay Investment Limited
312 Condor Properties Limited 405 Fourtune Serene Limited
794 Cornica Tradings Assets Limited 234 Freej Development Limited
356 Credo Investments Fze 499 G&g Partners Limited
801 Credo Investments Fze 577 Gholamreza Abadi & Shahrokh Nariman&yadollah
211 Crown One Holding Ltd Nariman&behnam Keivan

588 D10 Awf Investment Limited 146 Global Group Holding Ltd O.F, Nour Khan (Owner) /

192 Damac Development L L C Select Group

260 Damac Properties Co.(L L C) 190 Global Group International Limited

624 Das Real Estate 510 Global King Technologies Ltd

179 Define Properties L Lc-fzc 151 Global Procurment Fzc

805 Define Properties Plot 8 Limited 253 Gold Vision Development Ltd

318 Desert Dream Investments Llc 248 Golden Beach Properties Limited

313 Desert Home Fzco 271 Gpd Investments Spv One Limited

15 Deyaar Development Pjsc 845 Grace Property Developer Limited

158 Dheeraj & East Coast L L C 24 Green Desert Ventures Inc

6 Diamond Developers Co.Limited 64 Gulf Developers Fzc

60 Diamond Arch Ltd 135 Gulf Investments (Fzc)

741 Dja414 Investment Limited 755 Gulf Line International Ltd

45 Dsec Corporation F.Z.C -rak 305 Gulf Shores Inc

98 Dubai Golf City (L.L.C) 195 Haji Haroon Haji Hussain

73 Dubai Guernsey Property Investment Limited 324 Halcon Real Estates (L.L.C)

35 Dubai Life Style City L.L.C 809 Hampstead & Mayfair Development Limited

160 Dubai Property Ring Ltd 394 Hamza Namera International Fzc

200 Dubai Sports City ( L.L.C ) 768 Heman R.E.D. & General Trading Limited

307 Dujon Properties Ltd (Developer)/eden Blue Tower (Project) 53 Her Ltd
DUBAI REAL TIMES

417 Dunes Village 17 High Rise Properties(L.L.C)

742 Durar Al Emarat Properties Llc 386 Hma Exec Limited

288 Earth Developers (L.L.C) 243 Horizon Infrastructure F Z C

719 Edmonton Admire Properties Limited 343 Hydra Properties (L.L.C)

540 Elan Investment Limited 703 I.R.Investments Holding Company Limited

398 Emirates Sunland D1 Limited 372 Ilyas & Mustafa Galadari Management Investment &

399 Emirates Sunland Pv Dubai Limited Development (L.L.C)

231 Esca Properties Llc 815 Infinity Emirates Investments Llc 17

 MARKET TRENDS & ANALYSIS // PROPERTY PRICES
609 Innovvarc Holding (L.L.C) 447 Mohammad Aqil Ali & Ahmad Ali Alzarooni
471 International Merchnant House Llc 379 Mohd. Hussain & Bros
306 Investments House Co.(L.L.C) 458 Mohd. Hussain & Bros
77 Ishra Ali 519 Mre Global Investment Group Fzc
470 Jab Developments Inc 52 Mrg Ltd
511 Jab Mosaistone Developments Inc 240 Muhammad Nabeel Joz
10 Jad23 Investment Limited 716 Muhammad Nasir Muhammad Iqbal & Safia Nasir
9 Jad24 Investment Limited 486 Nadeem Mohammed Zafar
11 Jad25 Investment Limited 59 Ncc Urban Infrastructure
475 Jalal Ebrahimi 840 Neel Properties Limited
496 Jamal Mohammed Alhassan & Bachar Bakri Almradi 319 Neo Solutions Limited
440 Jasmine Garden Limited 226 Neptune Properties Investment Ltd
5 K M Properties (L.L.C) 355 New World Investment Ltd
238 Kamil Khan 128 Oakgrove Global Ltd
722 Kensington Global Investments Ing 311 Oasis Group Ventures Ltd
490 Khaled Ahmad Elsayed Heikal& Hesham Ahmed Elsayed Heikal& 388 Olive Ponit Limited
Suaad Mohammed & Ahmad Mohd 393 Omniyat Properties Development Corporation
242 Khalifa Majid Alabbar 709 Opulence Holdings Limited
32 Khuyool Investment L.L.C 724 Orbit Holdings Ltd
663 Kleindienst Properties 84 P&p Properties Ltd L.L.C -rak
500 La Ploma Limited 553 Palm Hotel And Resort Fzc
489 Liquid Assets Limited 367 Paramount Real Estate Llc
303 Lokhandwala Builders International Ltd 369 Parshwa Holdings Limited
37 Lootah Real Estate Development Est 219 Pearl Dubai Fz- L L C
429 Lux Real Estate 209 Pearl Properties
743 Luxor Investment Limited 727 Petrochem Realty Fzc
796 Lyra International Limited 797 Petrokaz Limited
660 M E Development Llc 91 Plus Internatinal Two Limited
520 Maadhad Saleh Mezar Alromaitihi 92 Plus International One Limlted
38 Madain Properties Co. (Mada’in) (P.J.S.C) 813 Plus International Three Limited
280 Madison Holding Fzco 787 Plus Properties Llc
21 Mag Group Fze 453 Pnd Investments Ltd
548 Mahdi Amrollahi (Partner) Antar Marzooq (Owner) 149 Point Development Ltd
254 Mahmoud Reza Azizi 504 Premier Group Properties Inc
732 Maison Limited 835 Premiers Property Developers Limited
44 Makaseb Properties 203 Prescott Holdings Limited
513 Mammut Group Fzco 125 Prescott Investments Ltd
282 Mandate International Limited 437 Profile Residence Limited
164 Manhattan Real Estate Holdings F.Z.C 575 Profile Zero Five Five Limited
542 Marina Arcade Real Estate Llc 322 Qureshi Faisal Abdul Aziz
352 Marina Breeze Limited 383 R.K.M Real Estate (Llc)
750 Marina Crown Real Estate (L.L.C) 524 Raam Limited
DUBAI REAL TIMES

351 Marina Exclusive Limited 173 Ramada Real Estate L.L.C

329 Marina Star Limited 90 Ramadan Mousa Mishmish
25 Matex Estate Ltd 66 Rani International Development (L.L.C)
420 Memon Developments (Fzc) 428 Rashed Mohamed Mahran Al Bloyshi
765 Mena Capital Investment Llc 137 Rayan Adnan Iabduljabbar
353 Mera Home Ltd 264 Real Estate Bank
236 Merwess Abdulaziz 19 Reef Real Estate Investment Co (L.Lc)
18 129 Mirgana Resources Ltd 515 Reliance Estate Developmant
8 Remah Holding Limited (Offshore) 800 Spain Select Limited
359 Rescom Holdings Limited 622 Stallion Developments Ltd
362 Riviera Holdings Limited 159 Star Surveing & Evaluation
54 Rmg Ltd 193 Sum Sum Developers Fzc
444 Romeo & Juliet Tower Limited 368 Sun Valley Holdings Limited
163 Romil Investments Ltd 62 Sungwon F.Z.E
126 Rose Homes Investment L L C 614 Sunland Nur (Joc) Limited
789 Royal Holdings Limited 836 Sunland Waterfront (Bvi) Limited
85 Rufi Century Tower Ltd 214 Swiss Tower L L C
68 Rufi Down Town Res Ltd 188 Syann Palm Ltd
161 Rufi Gardens Ltd 186 Syann Park 1 Limited
162 Rufi Gulf Greens Ltd 637 Syndicate Sealine Limited
336 Rufi Park View Limited 29 T F G Real Estate Broker
533 Rufi Rose Gardens Limited 170 Taisir Limited
433 Rufi Royal Crest Ltd 756 Takmeel Investment Limited
335 Rufi Twin Towers Limited 99 Tameer Holding Investment (L.L.C)
295 Rufi Water Front Residency Limited 287 Tanmiyat Real Estate Development (L.L.C)
811 S.P. Oasis Limited 679 Tarek Hussein & Tarek Shukry & Ahmed Youssef & Hesham Abdelk-
445 Sahara Livings Limited erim & Anil Bastawade
495 Sameer Mahmoud Al Ali 689 Tarek Hussein & Tarek Shukry & Emad El Sherbini &
70 Sameet Prakash Dhamecha Mohammed Swati & Ghaleb Jaber
184 Sanali Holding Fze 498 Test Contarcting Co (L.L.C)
554 Sarhank Kader 55 The Onyx For Development Limited
13 Sariin S.R.O 457 The Pavillion Holding Limite
204 Satnam Singh 581 Tiger Properties
636 Sayed Amjad Husain 424 Tima Holdings Ltd
384 Schon Investments Limited 527 Time Properties
452 Seasif Group Fzco 147 Torch Selet Ltd O.F, Nour Khan (Owner) / Select Group
50 Season Development 266 Town Center Management Limited
810 Sebco Limited 292 Trend Capital Gmbh & Co. Dubai Sport City Kg
361 Seracom Holding Limited 96 Trident International Holdings Fzco
596 Sevanam Holdings Limited 165 Trinity Developers
237 Shaikh Holdings Limited 205 Triplanet International F.Z.C
538 Shanti Builders & Developers Limited 207 Triveni Builders & Promoters Ltd
171 Sheffield Real Estate 560 Uae Waterfront Group Limited
39 Sheth Estate (International) Limited 508 Uk-cig Developments Jvs
642 Sidra Holding Limited 301 Universal Developers (Fzc)
65 Sidra Ltd/alaa Arafa / Real Estate Solutions 127 V Resorts Ltd Fouad Barbar(Owner) / Bsa(Developer)
74 Sienna Lakes Ltd 474 Vascon Trading Ltd
327 Silicon Gate General Trading (L.L.C) 465 Venus Properties Investment Ltd
373 Silver Star Tower Limited 261 Victory Heights Golf And Residential Development Llc
22 Sky Estate(O.F) Hani Abu Auida(Owner) Mag Group 259 Vision Avenue Homes (Fzc)
DUBAI REAL TIMES

30 Smart Home Properties 823 Volcano Investment Properties Limited

491 Smart Investment Limited 808 West Avenue Limited
819 Sobha International Limited 69 Westar Properties Ltd
87 Sobha Investments Limited 773 York Shire Corporation Limited
283 Sobha Properties Limited 507 Yra Enterprises Limited
89 Sobha Ventures Ltd 567 Zahair H .Sh. Khalil
215 Sokook Investment Group 814 Zenith Real Estate Development Llc
244 Souq Residences Fzco 228 Zero Five Zero Limited 19
 MARKET TRENDS & ANALYSIS //

2009: Transition from

‘greed to need’
Landmark report sees the market rewarding developers who deliver quality as consumer
preferences, access to capital and income levels reshape demand patterns

T
he year 2009 will be char-
acterised by the transition
from a supply-driven prop-
erty market to a demand-
driven one and more succinctly from
greed to need, says Landmark Advi-
sory’s real estate report for the first
quarter of 2009.
Prices are no longer dictated by
developers facing rapidly rising con-
struction costs and frenzied specula-
tors willing to buy at any price. In the
year ahead, consumer preferences,
access to capital, and income levels
will reshape demand patterns and
ultimately redefine the real estate
market, it says.
The report points out that as new
supply encounters slowing demand,
the market will reward develop-
ers that deliver on the quality they
promised and punish those who
do not. When faced with the pros-
pect of falling into the excess supply
gap, developers of new projects will
have to adapt and innovate. Many
DUBAI REAL TIMES
recently completed projects (and
those nearing completion) were
conceived in a seller-driven market
where developers failed to prior-
itise consumer preferences and
properly consider aggregate sup-
ply. Now faced with an oversupply
in certain segments, developers
may have to compensate with
strategies like refurbishment
and creative financing, it
says.
According to Land-
mark analysts, there is still
some liquidity in the market
and interest in opportunistic real
estate investments, but the major-
ity of capital is waiting for a price
floor, which is likely to emerge
once financing has resumed. As
the effects of the global financial
crisis continue to absorb locally,
the real housing price could fall an
additional 30 per cent, they feel.
They further point out that
obstructed financing caused by

There is still some liquidity in the market

and interest in opportunistic real estate
investments, but the majority of capital is
waiting for a price floor, which is likely to selective lending will worsen the and local economic performance.
emerge only once financing has resumed growing local crisis and recovery According to the report, as the
in the property market will largely UAE real estate sector adopts the
20 be a function of credit availability, fundamentals of a demand-driven
lending rates, and overall global market, investors, end-users, and
tenants will benefit not only from
lower prices, but also from more fa-
vorable terms. For example, month-
ly rent payment schedules are now
more common and will eventually
become standard for both residen-
tial and commercial leasing, it points
out.
The rebound of Dubai’s property
market rests largely on the recovery
of investor confidence and, more
importantly, banking confidence.
Despite special access to govern-
ment funds, banks have reverted
to austere lending practices that
restrict the availability of much-
needed capital. Now that inflation
is less of a concern, the availability
of financing will be the critical fac-
tor for boosting the economy and
rehabilitating real estate transac-
tion volumes.
If financing remains scarce and
the government offers no new ini-
tiatives during 2009, then Dubai
faces a population decrease of
three to five per cent by 2010. Per-
sistent corporate downsizing and
widespread hiring freezes will re-
quire newly redundant employees
to leave the country if they are un-
able to find work. Furthermore, all
else being constant, the UAE’s pop-
ulation growth should be revised
downward to growth-neutral.
Lower inflationary pressure has
also led to interest rate cuts, which
should help stimulate the economy
and are likely to coincide with the
emergence of a price floor. It is,
however, too early to say if this will
improve banking confidence; the
UAE may need to implement poli-
cies aimed at guaranteeing assets
and protecting banks from losses.
The analysts feel that the fiscal
policy measures announced over
the past month are likely to provide
additional stimulus. Both the fed-
eral government and Dubai have
increased public spending by 21
per cent (Dh7.3 billion) and 42 per
cent (Dh11.2 billion) respectively;
combined, these increases amount
to approximately two per cent of
the UAE’s GDP in 2008.
The report points out in the
light of mounting concerns about
Dubai’s property values, that aver-
age annual prices show a continual,
The rebound of Dubai’s property
market rests largely on the recovery
of investor confidence and, more
importantly,banking confidence
increase, with strong year-on-year
growth of 15 per cent for apart-
ments, 23 per cent for villas, and 35
per cent for offices.
Compared to the same period
last year, the fourth quarter of 2008
registered growth at 26 per cent
for apartments, 31 per cent for vil-
las, and a decline of five per cent for
offices. Landmark Advisory’s trans-
actional data shows that average
residential sale prices rose by over
seven per cent between the 3rd
and 4th quarters of 2008. During the
same period, average apartment
prices increased three per cent, with
demand skewed toward smaller
units. One-bedroom apartments
constituted 50 per cent of all apart-
ment sales and 35 per cent of all
residential transactions. At four per
cent, average price growth for one
bedroom apartments was margin-
ally higher than for larger units.
Fourth quarter villa sales showed
a bias for higher quality completed
units, which drove average prices
up by 14 per cent. However, isolat-
ing a more representative pool of
villas and controlling for outliers and
quality across quarterly sales reveals
that average prices per square foot
rose by only four per cent.
DUBAI REAL TIMES
21
 While the fourth quarter data
showed an increase in residential
prices, the transactional data for
offices revealed that sale prices de-
clined by 30 per cent between the
third and fourth quarters of 2008.
An increase in office supply coincid-
ed with a shift in sales from prime
office space to standard products.
The report points out that since
Q2-Q3 2008, a performance gap
has emerged between off-plan
and completed properties. As early
as the second quarter of 2008, off-
plan sales began to experience low
absorption rates and sometimes a
total inability to sell off-plan, with
surplus units reverting back to the
developer. Inflated land and com-
modity values caused off-plan
prices to surge exponentially. At the
same time, consumers started to
realise that there was no secondary
market for off-plan sales. This reali- see prices continuing to decline by tures in common with the current elevates the probability of negative
sation led to a rapid decline in new an additional 20-30 per cent. The crisis: declining housing and stock job and population growth. Finally,
launches in the third quarter and to report cites an analysis of previous market prices, falling output and fiscal spending is on the rise across
a rise in project cancellations in the financial crises in both developed employment, and rising govern- the UAE, and Dubai is expected to
third and fourth quarters. and emerging markets, which ment debt. Today, Dubai’s property register a budget deficit for the first
But the report stresses that ana- shows that local housing prices prices are falling and the Dubai Fi- time on record,” the report notes.
lyzing fourth quarter total price av- dropped by an average of 35.5 per nancial Market’s Index fell by 53 per The report says the govern-
erages alone, however, obscures an cent from peak to floor. Landmark’s cent over the past three months. ment may be able to mitigate the
important trend: residential prices data indicates that average residen- Since expatriates form such a large severity of the financial crisis by
peaked in October, fell through to tial property prices have already part of Dubai’s workforce, the un- implementing fiscal and monetary
December, and continue to fall. Be- peaked at Dh1,556 per square foot. employment rate is less relevant policies that encourage spending
tween late October and December Assuming that the current down- than the aggregate number of jobs. and lending. Fiscal stimulus pack-
2008, both apartments and villas de- turn will affect prices in line with The most recent UAE GDP growth ages have already been approved
clined on an average by seven per- the historical average, then Dubai’s forecasts are at 2-2.7 per cent even at the federal and emirate levels.
cent–good news for people waiting average price floor will be Dh1,000 after Dubai announced a 42 per cent Despite the government’s provi-
for a price floor to materialise. per square foot. public spending increase. Stalled sion of liquidity, however, lending
As the global economic crisis “The question remains: is Dubai growth combined with thousands occurs only on a selective basis and
deepens a new era is opening in and/or the UAE in a full financial of job cuts over the last quarter, fro- is not likely to resume fully until the
the UAE’s property market, the re- crisis? The previous downturns that zen recruitment, and the likely con- second or third quarter of 2009, it
port says. The new phase might Landmark studied have many fea- tinuation of corporate downsizing says.
DUBAI REAL TIMES

22
 MARKET//TRENDS & ANALYSIS
PROPERTY PRICES

Make me an offer
Better Homes has launched a web-driven campaign to build interaction with its clients, inviting
them to take control of the current market downturn and submit a price they are willing to pay
for both residential and commercial real estate
By Ryan Mahoney

B
etter Homes has launched What documents do I need to make Who is going to respond to me and
a web-driven campaign to an offer? how will I hear and from whom?
build interaction with its None. You just need to fill out a Our agent that represents the seller will
clients, inviting them to simple registration form online that respond to the relevant offer within 24
take control of the current market includes your personal details and hours. of the offer being made. Initially
downturn and submit a price they
are willing to pay for both residen-
tial and commercial real estate. The
campaign, ‘Make an Offer’, is part
of a long-term strategy to evolve
the Better Homes’ online platform
to provide a more interactive ap-
proach to real estate, taking advan-
tage of the current buyer’s market.
Ryan Mahoney, Managing Direc-
tor of Better Homes, said “Make an
Offer demonstrates innovation in
client interaction. It puts buyers in
the driving seat to suggest to us
what they are willing to pay for a
particular unit; a 180-degree turn Am I bound by the offer?
of traditional sales methods. It is The offers made through our web-
in our interest to adapt to the cur- site are not legally binding. How-
rent economic climate, and Make ever we would expect that buyers
an Offer presents an opportunity carefully consider offers before they make the offer. If the seller is inter- the agent will just make contact with
for buyers to potentially achieve make them because offers will be ested in moving forward with the the buyer who has made the offer to
extremely competitive prices for taken seriously by the seller and will offer, then all of the necessary pa- introduce himself or herself and explain
desired units.” involve the time of both the agent per work, property viewings and the next steps. Then the agent will
Dubai Real Times asked Mr Ma- and the seller to review the offer due diligence will be conducted present the offer to the seller and once
honey to explain the system in and respond to it in a professional before the purchase of the prop- a response is made, the agent will con-
more detail: manner. erty is finalised. tact the buyer to move forward.
DUBAI REAL TIMES

Does the offer go to the seller or

the agent?
The offer goes to the seller via the
agent. Company policy dictates
that the Better Homes agent must
present all offers above a certain
amount to the seller. The role of the
agent is to manage the communi-
cation between the buyer and the 23
seller and ensure that the offer pro-
cess is handled professionally.
 MARKET TRENDS & ANALYSIS // PROPERTY PRICES
Dubai is too big to fail,
says Nomura
Global financial services group sees liquidity creeping back into the
market, although slowly
D
ubai is too big to fail
and liquidity will creep,
albeit slowly, back into
the market, according to
global financial services group No-
mura International said in a report
on the UAE real estate sector.
“The papers remain optimistic
and the property blogs negative
– the truth lies somewhere in the
middle, in our opinion. We believe
that Dubai is too big to fail and the
government entities that effectively
control the respective real estate
markets know this. There is no cash
and there will be more deleverag-
ing, but we believe that liquidity
will creep, albeit slowly, back into
DUBAI REAL TIMES
the market. In the main, the current
tranche of developments are likely
to be completed before develop-
ers call time out. We think the key is
to back the developers that have a
strategy at the end of the time out
period,” the Nomura report said.
The report points out that the
24 master developers have been vest-
ed by government interests to con-
trol the real estate supply in their
area of core operations. Nakheel,
Emaar and Dubai Holdings collec-
tively control around 70 per cent
of all supply coming to the market.
They are granted large land tracts
(free or heavily subsidised) and in
return they bridge the funding gap
between the government and the
sub-developer and ultimately the
end user, it said.
According to Nomura, the
speculators, now stuck with prop-
erty assets they intended to sell, are
forced-sellers of shares to fund real
estate instalments. Similarly, share
investors receiving margin calls are
forced sellers of property, which
in itself creates a circular reference
with a downward spiral.
The leading financial services
group feels that headline-grabbing
70 per cent discount ‘fire-sales’ on
the Palm Jumeirah probably mis-
represent the real market, which
should stabilise once the forced
sellers have been forced out.
“Until this occurs and the finance
market and the resale market can
reset themselves, we do not see a
recovery in share prices. We think
share price falls now look overdone
on the downside and should begin
to stabilise. However, the head-
winds have not petered out yet and
we think that it is too early to be ag-
gressively buying the sector as we
are probably mid-cycle through the
deleveraging process,” the report
says.
Nomura analysts say there are
two questions that need to be ad-
dressed to kick start the sector: one
relates to the timing of liquidity re-
turn and the other is about sector
consolidation. They believe a gov-
ernment-inspired merger of some
of the players is probably inevitable.
The report notes that during
the run-up in property prices over
the past three years, the trend has
been towards over-development,
coupled with increased sales com-
petition that created favourable
payment terms for purchasers, but
developers are now being caught
in a liquidity trap. Contractors re-
quire payment on completed work
certificates (which are already being
held up) and purchasers can’t raise
the bank finance to service the out-
standing instalment payments. So
developers must focus on the ‘strin-
gent control’ of their receivables and
payables, with payables on a shorter
duration than receivables, it says.
“Different payment plans have
been structured by companies and
by developments. When banks
were falling all over themselves to
lend money, a 20 per cent down
payment and 80 per cent final instal-
ment structure was appealing. The
market was rising and for a low capi-
tal outlay, speculators could flip the
property and make a healthy profit.
Less desirable developments could
be made more attractive by the
payment plan, but these are now
the ones probably most at risk.”
The report terms the fall in input
prices as a positive development for
the sector. Mid-way through 2008,
there was a ‘steel shock’, which
cramped the extremely tight supply
chains further and the price of steel
peaked at Dh5,500. This is when a
number of construction contracts
were priced and basic materials
were trading at multiples of current
prices. With land prices and basic
materials then selling at premiums,
sub-developers were at the mercy
of the off-plan market.
Similarly, six months ago there
was an acute shortage of labour,
with contractors competing to
recruit and develop resources to
cope with project backlogs and
escalating order books. The labour
shortages have now evaporated
and now there are redundancies
and repatriations of workers across
the entire real estate, construction
and consultancy spectrum. Rents
on heavy equipment have also
dropped by 30 per cent in the past
two months. There is now an over-
supply of heavy equipment as pri-
vate developments falter and pub-
lic infrastructure projects (such as
The report points out that most
ongoing developments were prob-
ably agreed to under fixed price con-
tracts (ironically to mitigate the risk
of rising prices). The emerging trend
is to shelve developments and then
retender. Contractors who were
previously accepting 20 per cent are
returning to the margins of around
5 per cent. Nomura estimates that
those developers who can pause
and re-tender for developments
not yet in construction can expect
to save at least Dh100 million in
material costs on a standard tower
development. The analysts also be-
lieve that the developers will now
try to squeeze concessions out of
contractors — with the alternative
being to cancel the contract.
The report cites one of the down-
sides of the real estate boom as the
reallocation of resources from pub-
lic infrastructure activities. Logistics,
road networks, utilities, sewage and
electricity hubs are required to ser-
vice the new built accommodation,
During the peak in August, per square foot
construction costs were being quoted at
Dh1,200; in Dubai they now average around
Dh475 to Dh500, with some developments
being quoted at Dh350. This represents a fall of
60 per cent in just six months
The report further says that accounts to ring fence develop-
Dubai, which first opened the doors ment proceeds and so forth. The
to foreign investment, has led the aim is to add transparency to an
way in terms of real estate regulation opaque market and will generally
and other Emirates are now follow- include the monitoring of devel-
ing the lead. “Abu Dhabi and Ajman opments, the provision of rental
have both announced the forma- indices, adjudication and dispute
tion of separate Real Estate Regula- resolution and the monitoring of
tory Authorities (RERAs) which will media advertising (i.e. sales of de-
run in parallel with the Dubai RERA velopments).
(currently the only formal regulato- Nomura analysts believe that
ry body in the UAE). This is the first increasing the regulatory system
stage of ‘regulatory harmonisation’ and transparency will ultimately
and a key step towards developing shore up market credibility and
a de-facto UAE regulatory system, confidence around securing the
which is required if the UAE is to purchase of property rights. “How-
DUBAI REAL TIMES

the Dubai Metro, Dubai Airport, etc)
cannot absorb additional capacity.
During the peak in August, per
square foot construction costs were
being quoted at Dh1,200 in Dubai
they now average around Dh475 to
Dh500, with some developments
being quoted at Dh350. This repre-
sents a fall of 60 per cent in just six
months.
yet these essential services appear
to have been subordinated to real
estate activities. Now, one of the
reasons buildings remain unoccu-
pied is that they cannot be fully ser-
viced, it points out. So, it is a good
time to redirect activities towards
infrastructure and utilities using the
current development hiatus as an
enforced ‘catch up’ period.
attract, or more importantly retain,
foreign real estate investors”.
Nomura explains how these reg-
ulatory frameworks are designed
to protect parties on both sides of
the real estate transaction (sales
and leasing) with policies framed to
further regulate development ac-
tivities (and obligations), mortgage
and tenancy registration, escrow
ever, sustainable coordination is re-
quired in our view – this is coming,
but the UAE is not there yet. Until
such time, regulatory arbitrage
risk remains, where the regulatory
burden on one emirate (Dubai) is
greater than the rest and too much
regulation, too soon, in the current
climate may add to an already weak 25
outlook”.
 MARKET TRENDS & ANALYSIS
JLL report says gap between asking and actual prices widening
T
here has been a growing
divergence in office market
rentals between prime and
secondary locations over
the past six months, with the aver-
age prime net rents in the Central
Business District (CBD) recording an
increase of approximately 10 per
cent and the comparable rent in the
secondary locations such as Tecom,
Jumeirah Lake Towers and Jebel Ali
decreasing by approximately 20 per
cent, Jones Lang LaSalle said in its
Dubai real estate review for Febru-
ary.
The average rent of Dh550 per
sq.ft per annum for prime office
space in the CBD increase was re-
corded mainly in the third quarter
with a minimal change in the final
DUBAI REAL TIMES
quarter, the report said. Conversely,
average rents for Grade A space in
secondary locations, such as Tecom,
Jumeirah Lake Towers and Jebel Ali
decreased by approximately 20 per
cent over the second half of 2008.
The average asking price for
prime freehold office property in-
26 creased over the past six months
by around 32 per cent to Dh 4,900
per sq.ft. However, the quarterly in-
crease from Q3 to Q4 was minimal
at roughly five per cent. JLL says
landlords have become much more
flexible in negotiating transacting
prices, with the gap between ask-
ing and actual prices widening to
around 30 per cent to 40 per cent.
As a result, actual prices for prime
office space declined over the sec-
ond half of 2008 and this trend has
Estimated and Announced Future Supply
95,000,000
80,000,000
Office GLA Sq.Ft
65,000,000
50,000,000
35,000,000
20,000,000
5,000,000
2008
Completed
Source: Jones Lang LaSalle
Growing
divergence in
office rentals
market
continued into 2009.
Active demand for new office
space has weakened over the past
six months. Many companies have
delayed previously announced ex-
pansion plans, while others have
reduced the size of their existing
operations.
With the completion of an addi-
tional 4.7 million sq.ft of office space
in the second half of 2008, the over-
2009 2010
JLL Estimate Market Announced
all vacancy rate across the Dubai
market has doubled from seven per
cent in July to around 16 per cent at
the end of 2008, JLL estimated. This
headline figure does not, however,
reveal the full story, it says.
The review notes that because of
the barriers to entry into free zones,
there are pockets of higher vacancy
in areas such as Tecom and JLT/
DMCC. While demand has definitely
2011
slowed, there were a number of
notable leasing transactions com-
pleted with the Boston Consulting
Group (BCG) occupying around
25,000 sq.ft within The Office Park
at TECOM and Areva leasing 75,000
sq.ft within the Acico Business
Park in Garhoud, over the past six
months.
The review says that an addi-
tional 4.7 million sq.ft of office space
was released into the market in the
second half of 2008, bringing the
total stock to approximately 29.5
million sq.ft; an increase of almost
20 per cent over six months. Proj-
ects completed within this period
include The Galleries at Jebel Ali,
Cayan Business Centre, Executive
Heights, and Grosvenor Business
Tower within TECOM, and the Reef,
HDS, Tamweel and Silver Towers at
Jumeirah Lake Towers (JLT).

The average asking price for prime OUTLOOK

• Rents are likely to decline in most locations over the first half of
freehold office property increased over the 2009.
past six months by around 32 per cent to • While future supply will continue to decline, completions are
Dh4,900 per sq.ft. However, the quarterly likely to exceed demand in 2009, resulting in a further increase
in vacancies, particularly in poorer quality buildings and those in
increase from Q3 to Q4 was minimal at secondary locations.
roughly five per cent. • Rising vacancies are likely to result in the emergence of rent free
periods and other leasing incentives, with a resulting gap between
face and effective rentals.
The review notes that there has According to JLL, the market dy- • Reduced demand from speculative buyers will result in a fall in
been a major correction in future namics will continue to shift in favor both transaction levels and sale prices.
supply levels over the second half of of tenants as more new stock enters
2008, with approximately 50 per cent the market in 2009.
of the proposed supply for 2009-2011,
now considered unlikely to come for-
ward over this period. “As a result, we
have reduced our estimate of total
additional supply over the next three
years from 70 million sq.ft to around
34.6 million sq.ft.,” JLL said. Projects
announced as recently as October
2008 (e.g: Meraas’s Jumeirah Gardens
and Nakheel’s Tall Tower) have already
been scaled back, delayed or phased
DUBAI REAL TIMES

over a much longer period in view of

the prevailing market conditions.
Similarly, work on many develop-
ments already under construction in
projects such as Jumeirah Lake Tow-
ers and Business Bay has been placed
on hold, and a few projects, where
construction is not already underway
are unlikely to commence in the cur- 27
rent environment.
 COMMENTS
Dubai: Time to get it right
H
eading into 2009, lead-
ing economies across
the globe are undergo-
ing a period of contrac-
tion. Several financial institutions
who have taken the lead to revise
their global growth forecasts have
painted a less than cheery picture for
2009. However, the general consen-
sus emerging is that of some gloom,
but no doom for the UAE. Albeit at
a much reduced pace, most financial
institutions are still predicting growth
in the UAE for 2009. But, whether it is
nominal growth or contraction, one
thing is assured, the UAE must push-
on with developing infrastructure
within a realistic framework and with
the aim of long-term sustainability.
Infrastructure by way of regulato-
ry institutions is foundational for any
healthy real estate market. By clearly
defining property rights and proce-
dures, these institutions underpin the
whole mechanism of the real estate
market. Furthermore, the quality of
the institution will determine how ef-
ficiently the market functions. Due to
the rapid speed at which the market
had been accelerating over the past
few years, these institutions have had
little time to develop properly. Their
role has been primarily reactionary
and not proactive while attempt-
ing to keep pace with the market’s
momentum. However, as the sec-
tor has now begun to slow, this is
the time to make qualitative steps
towards improving existing property
laws, procedures, as well as other es-
DUBAI REAL TIMES
sential industry-related services. As
the most established regulatory and
advisory body, the real estate market
will primarily take its cue from RERA
in Dubai alongside the Land Depart-
ment, as to what particular improve-
ments in this area are achieved.
Having set up the main frame-
28 work for defining the contractual
obligations between brokers and cli-
ents, as well as, landlords and tenants,
RERA has taken some practical steps
towards introducing more transpar-
ency into the market. This includes
required licensing for all practicing
real estate brokers, the introduc-
tion and enforcement of Strata Law,
and RERA’s new tool a rental index
based on registered leases in Dubai.
The latter of which, depending on
the quality, precision and timeliness
of the information published, could
finally put an end to the need of a
rental cap, which has not only dis-
torted prices but to an unmeasured
extent has aggravated rental supply,
as many investors have shied away
from becoming landlords. With that
in mind, however, the Rental Index,
in its current form, relegates itself to
obsolescence due to the intended
infrequency of publication, as well as,
the outdated information published.
In order for its full potential to be
realised, the Rental Index would have
to keep pace with changing market
rates, and in this current economic
climate it would require frequent
updating and expedient publication,
which is why a new version will be
released in April 2009. With further
revision and improvement, we hope
RERA can aid the market by bringing
the sector’s reputation to the level
of maturity, which is embodied by
transparency and international best
practice.
Working in tandem with improv-
ing regulation, the real estate mar-
ket within the UAE looks forward to
improving infrastructure via roads
and transportation, as well as utili-
ties and tertiary concerns like build-
ing schools, parks and recreation, all
of which enhances the quality of life
for residents, and therefore, directly
affects the vitality of the property
sector. It has become apparent that
in the real estate downturn, the
needs of actual residents and future
residents were sidelined in favour of
the short-term visitor/tourists and the
minority that would have been able
to afford some of the more grandiose
and novelty schemes put forth for
development in Dubai. Furthermore,
the situation has been compounded
by the rise of the US-Dollar pegged
dirham, which has taken the UAE
from an expensive travel destination
for Europeans and other nationalities
to an extravagant level. A long-term,
diversified and sustainable economy
should consider the needs of those
actively participating and adding
value to the economy, which at pres-
ent includes a substantial, transient
working population of expatriates, as
all official population figures indicate.
In order to prevent outflows of skilled
and unskilled workers in times of eco-
nomic and political hardship, a certain
amount of loyalty must be fostered
in this particular group by catering
to the needs of their lifestyle, which
includes expatriates’ financial consid-
erations, as well as, the needs of their
respective families, specifically: the
availability of affordable housing (not
just high-end) in the vicinity of good
schools and retail/grocery shopping,
green spaces, parks and recreation,
good roads and transport, as well as,
quality customer service across all
sectors of the economy, private and
public. The UAE has made itself into
a successful and attractive, but rela-
tively short-term working destination
for expatriates, which has served the
nation in times of economic prosper-
ity. However, the nation’s long-term
economic interest may require shift-
ing the current transient working
population to one that is more resil-
ient in times of economic hardship or
otherwise.
We should take comfort in know-
ing that Dubai has already taken
some initiative to address the in-
frastructure gap. The emirate has
set aside a significant number of its
budget towards that end, which is
intended to increase infrastructure-
spend by 20 per cent over 2008. Con-
tinuing construction on the roads,
including the Metro, bus stations and
pedestrian bridges-are still on-going
and apparent. Tangentially, for those
of us in need of reliable government
statistics, the IMF has been working in
conjunction with the UAE for the past
couple of years and promises new
and methodologically sound figures
in 2009 relating to GDP, population,
inflation, income distribution, etc.
As demand has placed such a strain
on utilities throughout Dubai and
has even constrained growth in the
Northern Emirates, there will now be
time to build and provide water and
power in an efficient and strategic
way, readying the sector for the eco-
nomic upturn.
Time is a valuable but easily over-
looked asset in this current economic
climate, prior to which, it was in ag-
gravatingly short supply in the UAE.
Infrastructure will be the key for those
developing economies in the cur-
rent downturn, and for the UAE this
infrastructure must serve the current
and future residents. Getting the in-
frastructure up to international stan-
dards will add value to property and
to the quality of life, generally, for the
UAE. Having achieved many years of
budget surpluses coupled with fiscal
responsibility, the country is in a good
position to now spend those savings
wisely. As construction costs have
plummeted, there is no better time
for the country to develop what it
needs to be on par with international
standards. When ailing economies
do make their turnaround (and they
will), the UAE will be more attractive
and better-equipped to handle the
demand.
Article from the Research Department of
Cluttons LLC, www.cluttons.com/dubai.

Mergers:
tread with caution
Operational excellence is key
By Dr. Dirk Buchta, Partner and Managing Director at A.T. Kearney, Middle East
G
CC construction and de-
velopment companies
must work towards oper-
ational excellence during
this economic crisis. We are currently
seeing an unprecedented wave of
mergers across all sectors as com-
panies seek to secure their positions,
balance their portfolio and risks, while
seeking synergies in their operations.
Our advice, however, is to tread with
caution since mergers are rarely the
answer, particularly those borne from
stress situations. Rather than helping
companies achieve operational ex-
cellence and create more profitable
and stronger operations, mergers
often destroy value and weaken the
merger candidates.
Initial key factors to consider for a
successful merger are the thorough
assessment of the potentials of the
takeover; a clear strategy for the new-
ly merged company; sound change
management and a post-merger in-
tegration process. Development and
construction companies have differ-
ent business models, cost structures
and risk profiles and therefore may
have different reasons to consider
mergers.
Planning for a merger is para-
mount. Almost 70 per cent of merg-
ers fail, often due to such basics as
lack of preparation, communication,
unclear strategies or poor execution.
For example, in Spain recently, poor
timing and planning of a merger be-
tween two major developers failed,
resulting in bankruptcy for the new
company within six months of the
merger. Of those companies that
Dr. Dirk Buchta
do merge successfully, only 29 per
cent achieve increased profitability. If
developers are to merge, they need
to ensure their company is on sound
ground and research their prospec-
tive partner carefully before deciding
this is the best solution.
Mergers in the real estate sec-
tor typically fall into two categories;
merging of similar companies, or
merging of complementary compa-
nies.
The reasons to merge two similar
companies are often to achieve syn-
ergies and operational excellence
or balance risks and diversify. While
mergers focusing on achievement
of operational excellence have not
been common in the region, merg-
ers focusing on balancing of risks are
especially pertinent for master devel-
opers with Dubai interests, who are
driven by project portfolio rationale.
The other option is for companies
to ride out the current economic
climate, using diversification along
the value chain. Mergers between
complementary players aiming to in-
tegrate the chain both up and down-
stream have occurred in the region.
Emaar is such an example. They have
acquired or developed joint ventures
with construction companies such as
The Turner Corporation, real estate
agents such as Hamptons and facili-
ties management companies such as
Emrill together with Carillion. Most
successful large Western developers
including Hochtief and Bouygues
Group, have in the past followed this
diversification path through mergers,
joint ventures and organic growth.
When merging construction
companies, there are several syner-
gies possible affecting both the top
and bottomlines. Our experience has
found that the main synergies in the
top-line are sales and special market
segments.
In sales, some construction com-
panies achieved synergy when stay-
ing with a multi-brand strategy.
Alternatively, if one company is a
COMMENTS
significantly better positioned brand,
this brand can be used for the whole
business; thereby helping the other
part increase its position. The size
of the business is equally important,
particularly if bank guarantees are
required. Financing lines can be in-
creased and used to further growth
and additional projects.
Key synergies include procure-
ment and overhead costs, espe-
cially if the company has not already
reached critical mass. For example,
procurement is enhanced due to
economies of scale; and overhead
costs can be cut by merging branch
and headquarter operations such as
sales and marketing. Furthermore,
the utilisation of specialist equipment
can be increased and the equipment
department itself reduced in size.
However, whether it is a well-
executed merger or service diver-
sification, in these troubled times
companies would be well-advised to
first look inwards and maximise value
from their core operations.
DUBAI REAL TIMES
29
 COMMENTS

Living in a connected world

The Collateral Damage report presents The Boston Consulting Group (BCG)’s latest thinking
on the status and future implications of the global financial and economic crisis and its
implications for the GCC, especially UAE. BCG has examined the different ways in which GCC
companies stand to potentially benefit from the opportunities presented by the downturn.
By Linda Benbow

T
he group of experts sat at
the top table and faced their
audience of journalists, busi-
ness editors and financial
savvy guests. They spoke about
the report that was being launched,
squared their shoulders and waited
for questions to be fired at them.
Why are there so many ‘experts’
around now, after the financial crisis
has hit us?
“Well, actually, we were here
before, explained Kamel Maamria,
Partner & Managing Director, Dubai.
We saw what was happening and
advised our clients to get ready for
the storm. They took our advice and
are weathering the ups and downs
of the situation as predicted.”
We live in a connected world,
explained David Rhodes, Senior
(from left) Martin Manetti, Sven-Olaf Varthje,
Klaus Kessler, David Rhodes, Kamel Maamria
Partner & Managing Director, Lon-
don. “The USA had a bad Christmas
DUBAI REAL TIMES
“This is a most unprecedented
global recession, the worst since
The Great Depression in the early
part of the last century, stated Dr.
Sven-Olaf Varthje, Partner & Manag-
ing Director, Dubai. “ It is also a time
of future planning; now is the time
to re-furbish existing infrastructure
instead of starting new projects. Im-
prove roads, put in pipes and cables
for sewage, electricity and other ser-
vices. Build roads, plant parks, plan
where to construct shops, clinics,
schools and other facilities for the
residents of this country, current and
future. Draft laws and revise regu-
lations if necessary. This is a good
time to plan for the future.
“Now is the time for advertisers
to continue marketing their goods
because if they don’t they will lose
their customers. And it is very dif-
ficult to get a customer to return
to you. Once you have lost him to
another product he realizes that he
has other choices that are almost, or
just as good.”
Sven admitted that the global
property crisis has reached the Mid-
dle East. “The real estate industry is
a cyclical one. Many real estate com-
panies in the UAE have entered the
Dr. Sven-Olaf Vathje is the partner and managing director in BCG’s Frankfurt and Dubai offices.
In 2006, Sven-Olaf was a founding member of the Gulf offices. He is a core member of BCG’s
insurance and financial institutions practice areas, and has worked with banking and insurance
clients, across a broad range of topics from business build and strategy development, to
organisational redesign and implementation support. In this context, Sven-Olaf has developed
an in-depth understanding of the real estate industry in Europe and the Middle East.
The world’s leading multination- velopment of policies supportive of
als are facing an unprecedented business. It is also an indication that
competitive challenge from a new while the current global downturn
group of fast-globalising companies poses significant challenges, the
based in rapidly developing econo- Middle East has the potential to
mies (RDEs), according to the report. become a significant player on the
Entitled The 2009 BCG 100 New Global international stage.”
Challengers: How Companies from Thomas Bradtke, co-author of
Rapidly Developing Economies Are the report and a BCG partner based
Contending for Global Leadership, the in Dubai, said, “Global challenger
report has identified 100 such chal- companies share a number of char-
lenger companies, with combined acteristics that have propelled them
2007 revenues of $1.5 trillion, that onto the global stage, including
are either catching up with or have early advantages in their develop-
already overtaken their longer-es- ment, ambitious leadership, and
tablished rivals in the United States, willingness to reach outside the
Europe, Japan, and elsewhere. And company to achieve rapid growth.
if any of these companies stumble But these companies are not im-
and fall during the global economic mune to the damaging effects of
crisis, there are many others ready to the global downturn. Last year, the
take their places. crisis took its toll on their formerly
In all, 14 countries are represented soaring stock prices. Nonetheless,
in the list; China (36), India (20), Brazil the challengers have been adept at
(14), Mexico (7), and Russia (6). The changing, learning fast, and adapt-
Middle East is represented for the ing their businesses to the new eco-
first time with four companies from nomic environment.”

period with a drastic downturn in
sales. This affected manufacturers
in China where 60 per cent of fac-
tories closed. This in turn led to less
machinery being produced in Ger-
many” (where many Chinese com-
panies buy their equipment from).
A similar domino effect was felt
30 in India when a three-day week was
introduced in the auto industry.
crisis from a position of some finan-
cial strength, although they will have
to work harder for their share of the
market now.”
Recessions usually force people
to think and devise ways to go for-
ward. It is a time of innovations and
changes. The teutonic plates of
industry are shifting to make new
business.
the United Arab Emirates and one
from Kuwait. Etisalat, Emirates Airline,
Emaar Properties and Dubai World
are the blue-chip powerhouses join-
ing the ranks from the UAE.
Mr Maamria commented, “Having
five companies from the Middle East
in the list attests to the rapid growth
of this region, its speed of economic
diversification and the successful de-
As challengers chart their cours-
es for the future, BCG suggests
that they observe six guidelines:
don’t concede the innovation high
ground, find opportunities in tur-
bulent times, protect core RDE mar-
kets, make productivity improve-
ments a top priority, manage risks to
the business, and develop globally
recognised brands.

Property players vs.
property investors
A guide to selling your property
By Martin Ashkuri, Sales Director, Cirrus Real Estate Brokerage
F
or almost a decade, Dubai’s
property market has been
comparable to a bullish stock
market. Due to the numer-
ous short-term buyers profiting in a
world of high stakes, a market had
been created that seemed to defy
the odds.
The off-plan market was for the
most part dominated by two types
of buyers; the high stakes ‘player’ and
the prudent and reliable long term
‘investor’.
The players were the individuals or
organisations counting on incremen-
tal growth in the market. They would
purchase off-plan property, usually
paying 5-10 per cent of the contract
value and source new buyers be-
fore the next payment was due, in
the process earning themselves a
healthy premium. Speculating with-
in the off- plan market followed the
same rule as any other speculation -
high risk and high reward. Therefore,
players who purchased at the peak
of the market, in terms of price, have
suffered the greatest losses. Unfortu-
nately, if they are unable to continue
paying according to their contract,
there is little advice that can be given
to them.
Investors, the second type of buy-
er, are in a different situation. They
were not overexposed and took a
medium to long-term view on their
property investment portfolio and
were planning to follow the payment
COMMENTS
plan through to completion. The best fered six months ago. Regardless
way forward for this group is to con- of how much you paid for it, we are
tinue as per the developers’ payment currently in a market where only the
plan since selling off-plan property most competitively priced properties
has become extremely difficult in this are sold. Take your agents’ advice; re-
market. For long-term investors, they member they want to sell this prop-
can be comforted by the fact that the erty as much as you do.
fundamentals of the UAE economy Appearance - Keep all furnishings
still remain strong. neutral; magnolia or white walls are
For RERA, it is important to protect
good to stick to. Have your property
the interests of customers as well as cleaned. If the view is a selling point,
developers and ensure the market re- ensure the windows are washed.
mains healthy in the long term. If and Equally, if your property boasts a spa-
when a rescue package is established, cious living room, ensure it is not clut-
the availability of end user finance will
tered. Today’s market is increasingly
ease this pressure. end-user oriented.
An important negative factor in Viewings - Viewings are a neces-
the Dubai real estate market cur- sity for selling your property. Ensure
rently is the lack of end-user finance.a set of keys are kept with either the
The global credit crisis has led banks agent or building security for ease of
to minimise their exposure. This has access. If the property is tenanted, en-
left only cash buyers and a handful of sure a method of viewing has been
executives who have financing pre- discussed and agreed with the ten-
approvals. This small segment knows ant. Too many good properties are
they are well placed to negotiate not being sold due to lack of access
even further bargains. for viewings.
For those looking at the rentals The right agent - Do your re-
market, the news is more optimistic, search and select one or two agents
since yields are in the order of 10-15 with a strong presence in your area.
per cent due to a decline in prices. Pick out a few based on profession-
This is causing many sellers to rethinkalism and reputation. Choosing the
their decision since rental incomes areright agent is increasingly important
becoming more appealing by com- as he or she will be fighting your bat-
parison. Those who are not desperate tle to close a deal as well as advising
to sell are holding onto their proper- you with regards to your property. Be
DUBAI REAL TIMES
ties to benefit from the rental yields wary of unprofessional agents. Some
available. Gradually, this will limit the
unscrupulous types have been adver-
supply of property at low prices and tising lower prices than agreed with
help stabilise the situation. the sellers. Most importantly, choose
an agent you can trust.
So what advice can we give to Flexibility - One has to remember
sellers determined to sell? that we are currently in a buyers’ mar-
Realistic pricing - Be realistic about ket. If you receive an offer, it is best
the price of your property. Do not to try to accommodate the buyer, 31
compare with prices you were of- within reason.
 COMMENTS
The changing face
of real estate
What should the focus be for real estate agents looking to succeed in the months ahead?
Here Cecilia Reinaldo, Managing Director of Fine & Country UAE, outlines the core skills and
specialisms that will see agents and agencies rise to meet the current challenge, and go some
way to restoring confidence in local and global markets.
A
s we collectively stand
back and watch the de-
flating of the ‘global
bubble’, there are very
few companies or industries that are
unaffected, and the real estate sec-
tor is no exception. Alongside the fi-
nancial sector - and as a result of the
strength of the bonds between the
two industries - it is us who are bear-
ing the brunt of the global down-
turn. Having entered the year in a
down market in the UAE – and even
a second year in many other interna-
tional markets - the industry is facing
challenging times.
But for every person who sees a
challenge as a problem, there is an-
other who views it as an opportunity.
I like to include myself in the second
camp. The current status of the mar-
ket gives us the potential to develop
new products and new strategies to
reinforce the services offered by the
real estate sector - decreasing the
pressure currently experienced by
many home buyers and sellers.
DUBAI REAL TIMES
In order to meet each client’s
unique needs, a combined effort
of action, energy, key people and
the control of overheads play a piv-
otal role in any agency’s success. It
is through the development of spe-
cialist skills and the deployment of
the latest technology that market
32 leaders – including Fine & Country –
will blaze a trail to restore confidence
In order to meet each
client’s unique needs,
a combined effort of
action, energy, key
people and the control
of overheads plays
a pivotal role in any
agency’s success
and trust in the market.
Key people
The treasure in our business is to be
found in knowing and being known
by key people. The traditional es-
tate agent who used to rely on do-
ing little more than showing a cli-
ent an off-plan brochure is a dying
breed. Getting to know the outside
world will become an increasingly
important indicator of success –
and the outside world means the
people who make things happen
and a comprehensive knowledge
of the locations and properties on
your books. Some companies, in-
cluding Fine & Country, have built
a tremendous sphere of influence
across some of the most dynamic
and established property markets in
the world, and as a result, members
of the group(s) are able to reap the
benefits.
Technology
While we are not advocating tweet-
ing about a new property as soon as
it comes online just yet, there can be
no doubt that the face of real estate
marketing here in the UAE is chang-
ing. The majority of us consume on-
line media daily and increasingly use
it as part of our purchasing choices
– with property being no exception.
But it is not just user-friendly web-
sites or digital media strategies that
will contribute to an estate agency’s
success or otherwise, it is critical to
harness technology to streamline
and integrate the back-end of your
business. Using data capture, intel-
ligent databases and content man-
agement system will not only help
you to get a know your clients and
potential clients better, but also
free up your staff and help control
overheads – giving greater breadth
of exposure to a wider audience in a
more cost-effective way.
Skills and energy
As some of our ranks leave to pursue
other less challenging lines of work,
it is evident that the skills and energy
to compete will have a significant im-
pact on an agency’s business. Com-
mitted agents who are prepared to
work long hours and also acquire the
skills to enable them to use technol-
ogy and other aids are the people
that will give the real estate sector a
new lease of life and longevity.
That said, driving a business and
servicing clients with dedication will
be challenging in a market where it
can sometimes seem that only the
bargain hunters are buying, and
only the distressed are selling. It re-
mains for each and every member
of the industry to pull together and
focus on exceptional customer care
– something that left many behind
in the boom times.
 COMMENTS

Market to bounce back within

next eight to twelve months
Construction cost per square foot in the Emirates falls by an average of 30 per cent

M
emon Investments, a
Dubai-based property
developer and part
of the international
business conglomerate, the Memon
Group of Companies, has projected
that the UAE real estate market will
bounce back within the next eight
to 12 months. The developer has
based its optimistic forecast on re-
cent industry findings, which reflect
a decline in the construction cost
per square foot within the Emirates
by an average of 30 per cent since
the onset of the economic crisis.
The developer has also committed
to continue fostering its strong rela-
tionships with leading construction
companies, in line with its goals to
hit the delivery targets for its proj-
ects - starting with the Dh75 million
‘Champions Tower I’, which is due
for delivery by the end of 2009.
Industry experts point to the
massive drop in the prices of steel,
as well as that of other materials
including aluminium, wood, glass
and diesel. The declining cost of la-
bour and supervision due to recent
redundancies and terminations has
also contributed to the dip in con-
struction expenditures, which are
now pegged between Dh400 to
Dh900 per square feet in Dubai and
Abu Dhabi, and to as low as Dh170
and Dh200 per square feet in Aj-
man. Amid speculations of further
to Dh1.34 billion, which includes the
high profile residential 'Champions
Towers' series, the luxurious ‘'Garde-
nia I & II’, the ‘Frankfurt Sports Tower
I’ and the 'Cambridge Business Cen-
tre'. The developer also announced
that it has identified major master
developments in Dubai, including
Jumeirah Village South, Mizin and
Downtown Jebel Ali as locations
for its new projects, which will in-
clude luxury residential, commer-
cial and mixed-use developments.
Among the leading construction
companies with whom Memon
Investments has signed strategic
Ahmed Shaikhani, Managing Director, Memon Investments partnerships are Stromek Emirates
Foundation, Majed Hilal Contract-
ing, Al Sarh Contracting and Cairo
“In lieu of the massive correction in the Contracting Company. Additionally,
prices of basic construction materials, the developer has also partnered
with leading UAE-based construc-
we are now focusing our strategy on the tion suppliers, including Shanghai
implications of this development, particularly & Arabian Electromechanical LLC
(SAE), HI-TECH Electro Mechanical
with regards to the construction and delivery Contracting Est, ETA MELCO and
of our launched projects” WIN GATE Electromechanical Ser-
vices.
Having delivered over 30,000
materials, we are now focusing our ing healthier, which spells more op- units across the globe with a pres-
strategy on the implications of this portunity in the long-term for those ence in 90 countries spread across
development, particularly with re- who can withstand these truly chal- Asia, Africa, Middle East and Europe,
gards to the construction and de- lenging times that the market is the Memon Group of Companies is
livery of our launched projects,” said currently facing. It is our goal that presently commemorating its 30th
Ahmed Shaikhani, Managing Direc- by the time the real estate market year of delivering unique offerings
tor, Memon Investments. “Our stra- regains its former vigour; we will and services to its global customers.
tegic planning and consolidation ef- be among the few developers to In addition to its extensive expertise
DUBAI REAL TIMES

decrease in construction costs in
the coming months due to plung-
ing oil prices, building material costs
and transportation prices, Memon
Investments is focusing all its re-
sources towards hitting the delivery
deadline set for all its announced
projects.
“In lieu of the massive correction
in the prices of basic construction
forts are being driven by our strong
resolve to stay true to our promises
to our customers in the face of this
economic crisis, and we are proud
that our actions are paying off with
the steady progress we are witness-
ing in all our projects.”
“The current adjustments we are
seeing in the price of construction
indicate that the industry is becom-
have endured the challenges and
remained stable. We plan to accom-
plish this by working hand in hand
with our construction partners as
we determine the best course of ac-
tion to be taken during this unique
period in the history of real estate,”
concluded Shaikhani.
The company currently has a
portfolio of projects valued at close
in the real estate market, the Group
has also built a strong reputation for
its unwavering support for various
causes such as poverty alleviation,
environmental conservation and ac-
ademic development. As a socially-
aware international corporation, the
group has devoted 19 years in sup-
port of the Rabia Charitable Foun- 33
dation and the Rabia Relief Fund.
 COMMENTS
A bright spot
amidst the overall economic news
By Eric Gummers
Eric Gummers
A
mong all the depressing
negative economic news
around the globe, there
seems to be one area
where there is continued interest
and activity: Fractions and shared
ownership.  This article seeks to ex-
amine some of the reasons for the
attraction of fractionals.
One statistic
In one day in January 2009, Frac-
tional Life www.fractionallife.com,
a consumer facing website which
focuses entirely on the fractional
DUBAI REAL TIMES
space, received 65,759 hits on their
web site.
I find that an extraordinary sta-
tistic and anticipate that readers
may also be surprised by this.
Nothing New under the
Sun
34 There are very few concepts which
are truly new.  There are, of course,
many instances where families and
friends share the use and enjoy-
ment of second properties often
as a holiday home. Such arrange-
ments are often arranged on an
informal basis.
The growth of
fractionals
Using the figures from Ragatz Asso-
ciates for 2007, annual sales in the
US for fractionals, private residence
clubs and destination clubs were
USD $2.3bn with 50,000 households
participating.  The figures for 2008
will be released next month.
We have been advising a num-
ber of developers over the past
decade who have very successfully
added a fractional offering to their
whole ownership real estate sales.  Ongoing management brings
This has enabled those developers
to increase their completed sales by
making additional fractional sales
to consumers who do not wish to
make the commitment of purchas-
ing whole ownership.
Some warning words
The fractional approach will never
be the solution for property where
there is limited consumer attraction
to the particular development and
its location.  Bluntly phrased, shared
ownership will not rescue a poor
development concept.
The successful fractional requires
considerable thought and planning
for the implementation of services
and management - it is more com-
PROPERTY PRICES
plex than making a one-time sale.
5 key upsides
There is a logic for many potential
buyers that in purchasing a fraction
they will be able to enjoy the use of
a second property that they really
need and they will accept paying a
reasonable premium for this
Offering a fraction creates buyer
interest; and a number of poten-
tial buyers who consider buying a
fraction eventually acquire a whole
unit
Fractional purchasers recom-
mend and bring other buyers which
is very cost effective marketing
Fractions bring use and occu-
pancy year round to a project which
can enhance value.
ancillary long term income.
Some points from the lawyer’s perspective
Correctly structuring a fractional product requires a commitment to
investing the time and energy to create a suitable structure that is ro-
bust throughout the life of the project. As such a fractional structure
is inherently more complex than a build and sell model. However for
those prepared to invest the effort, fractions may well prove to be one
of the winning ways to do well in turbulent economic times.
Eric Gummers, a corporate lawyer and partner at Howard Kennedy
dealing with complex commercial contracts and business relation-
ships internationally, is a recognised expert on structuring of mixed
use and hospitality projects worldwide.
He has worked on some of the first fractional projects in Dubai
and the region.
 COMMENTS

Transparency and affordability

will restore rent market
Newly introduced rental index drives back investor confidence as financial crunch helps
bring rents to more reasonable levels

S
herwoods Independent
Property Consultants has
announced that it has re-
cently deployed new stra-
tegic initiatives to capitalise on an
expected upswing in real estate
business activities within the last
two quarters of 2009, as the global
financial downturn gives way to
more positive changes in Dubai’s
property rental market. Further-
more, the company revealed that it
expects the rental index introduced
recently by the Real Estate Regu-
latory Agency (RERA) to further
consolidate and stabilise the rental
market in the long term, as it creates
a highly transparent system that
promotes investor confidence and
helps control rates from once again
escalating to unreasonable levels.
With rents becoming more af-
fordable, partly as a result of the
global financial downturn, Sher-
woods pointed out that the situ-
ation will ultimately deliver long-
term benefits to Dubai’s property
sector as businesses will feel less
pressure in subsidising housing al-
lowances for their workers, while
lise during the last two quarters of
2009,” said Iseeb Rehman, Manag-
ing Director, Sherwoods Indepen-
dent Property Consultants.
“The sharp acceleration of rents
over the last couple of years has
put enormous pressure on employ-
ers who were subsidising housing
allowances, negatively impacting
the growth of a number of business
establishments. With the emerg-
ing trend of more affordable rents,
the long-term prospects become
a lot more encouraging as it helps
Sherwoods expects transparency and
affordability to help restore has Dubai
rent market’s stability in the second
half of 2009
Dubai’s rental rates: employment encourage both businesses and
and the supply of property in the people to relocate here. According-
market. Further job losses could ly, the company has devised new
erode demand, while the supply of strategies to help clients identify
more accurate depiction of the cur-
rent market situation. Furthermore,
as it considers the rental index a
more viable long-term solution to
resolve issues in Dubai’s rental mar-
ket, Sherwoods expects RERA to up-
date the index figures on a regular
basis and subsequently have a more
clear-cut policy on the index’s role
in the rental market.
“To obtain credibility the index
has to be updated by RERA on a reg-
ular basis to correctly reflect market
rents. There also needs to be a clear
message from RERA; currently they
say the index is only a guide, but if it
is to replace the rent cap then it will
need to be adhered to as law. The
index could prove revolutionary in
meeting the needs of both land-
lords and tenants and if the mecha-
nism is used correctly, it will provide
a very transparent system to evalu-
ate rental yields and help control
rates escalating again to unafford-
able levels,” concluded Rehman.
Founded in 1988 in the UK by
Iseeb Rehman, Sherwoods has
grown and expanded to five branch
offices all over the UAE with re-
DUBAI REAL TIMES

more people will be encouraged
to relocate in the emirate. It fur-
ther noted that a more stabilised
rental market combined with the
adoption of a credible rental index
system will likewise drive investor
confidence as rental yields will be
much more predictable and easier
to calculate.
“Two key issues will impact
inventory into the market needs to
be controlled to avoid oversupply
issues. However, as affordable ac-
commodation remains a key driver
to the Dubai economy, we have
seen a positive trend in terms of
proactive government intervention
and the rent market’s resilience,
which we believe will eventually
help rents to level off and stabi-
and take advantage of the gainful
opportunities that have evolved
in this transition period in Dubai’s
rental market,” added Rehman.
He also noted that some of the
issues raised against the rental in-
dex are likely short-term problems,
which can be settled once the val-
ues reflected on the rental index
are updated for 2009, providing a
gional offices in the UK, France, and
soon in other key locations around
the world. The company offers a
diverse range of services, including
search and acquisition of proper-
ties, offshore company information,
selling of properties, mortgage ser-
vices, valuation and appraisal, legal
and tax services, and lettings and 35
management.
 DUBAI FOCUS // NAKHEEL

On a sound footing
Master developer Nakheel says it is concentrating on delivering projects that have been sold;
and finances are in place to see it through the crisis and beyond
By Ambily Vijaykumar
for the media last month to an-
nounce that these projects are go-
ing on as per schedule. Hand-over
of homes at Jumeirah Village has
already begun; while at Jumeirah
Park, Nakheel is targeting the end of
the year for the process to begin. As
for Al Furjan, the handover is sched-
uled for the latter part of 2010.
Joe Barr, the Managing Director
of Nakheel’s Development Projects
is confident that despite the finan-
cial crisis, the developer will be able
to deliver the projects on time. We
asked him whether Nakheel has the
finances to keep the projects on
track.
“I think we are in good shape
with our general finances. What
we have done is adjust our over-
all spend plan so that we do not
over-commit ourselves. That was
an important step to take back in
November-December last year.
And we are concentrating on deliv-
ering the products that are being
sold,” he said. mitting’ is to delay work on many
The first step that the developer of its high profile projects. These
has taken towards not ‘over-com- include the Trump International

Joe Barr
“Our contractors have been long-term partners

W
DUBAI REAL TIMES

ith the real-estate
sector in the UAE,
and especially in
Dubai, facing the
music of the global financial crisis,
one of the leading developers, Na-
kheel, has merged three of its island
projects Palm Deira, Mina Rashid
36 and The World under one umbrella.
This, the developer says has been
done to “readjust its current busi- of Nakheel. What we have done is to lay out our
ness objectives to match supply and
demand in the most effective way.”
long-term business plan with them. We have
The mergers of its various busi- also discussed the financial situation and are
nesses have come at a time when working with them to tide through the situation.
Nakheel has also gone on a PR over-
drive to promote its developments
And that has helped us in bringing down the
A tour of its show-case villas and overall expenditure”
apartments at Al Furjan, Jumeirah
Park and Jumeirah Village was held
Tower, The Universe, Waterfront
and Palm Jebel Ali among oth-
ers. So have these projects been
shelved?
“All these projects are five-to-ten
year projects. So the things that we
have deferred, in terms of decisions
to move on, are things that are in
the master-planning phases. So if
we have got developments over a
10-year period that we might have
developed, obviously we are now
not looking at accelerating those
developments,” informs Mr Barr.
On being pressed further to spe-
cifically answer whether the proj-
ects have been shelved, he clari-
fies, “over the long-term, we will
deliver all of those, because we are
still seeing that the fundamentals
for demand in all areas of Dubai is
enormous.”
These long-term plans will ma-
terialise only if the current projects
generate profit. Nakheel is confi-
dent that all its projects are profit-
able ventures.
“We are absolutely sure that
the present projects will be able
to generate revenue for future
projects. The present projects are
all about delivering on customer
demand and when the market
gets to a position where we feel it
Jumeirah Park villa
is right to start selling again since dialogue with us on their ability to
the demand seems right, we will finance the product they have pur-
do that. That will obviously gen- chased. We, on our part, have set
erate the income for the next few up a mechanism to assist them. We
phases,” he explains. put them in touch with a mortgage
Cash-flow however is the big- broker who works independent of
gest problem facing the market. us and they help the customer out
Considering that currently banks with the financial needs. So far, that
are holding back on lending and has been working,” Barr says.
have reduced loan to value ratios Another entity to be hit by the
considerably, customers might be cash crunch has been contractors.
finding it difficult to finance the There have been reports of many of
property they’ve purchased. Is Na- them abandoning unfinished proj-
kheel facing a similar situation on ects because they don’t have the
its current projects? money. How is Nakheel faring with
“Our customers have basi- its contractors for various projects?
cally been engaged in a constant “Our contractors have been
Al Furjan show home
long-term partners of Nakheel.
What we have done is to lay out our
long-term business plan with them.
We have also discussed the financial
situation and are working with them
to tide through the situation. And
that has helped us in bringing down
the overall expenditure,” says Barr.
Part of that expense cutting has
also been the 500 staff sacked in
December last year. The developer
however, says that since then there
have been no redundancies. But
does that mean no future lay-offs as
well? “We do not see any further lay-
offs on our existing projects,” states
Barr.
That confidence is also reflected
in the developer’s outlook for 2009.
“We are more optimistic for the cur-
rent year, especially the latter part
of it. Each of our projects now has a
specific plan and a specific target. So
we are focusing on achieving them,”
he adds.
Even reports of a population dip in
Dubai in 2009 do not seem to worry
Nakheel. “If we concentrate on our
short-term sold projects, the people
who have bought them are commit-
ted to the market and to Dubai for a
long-term. So if you have a long-term
view, I think your short-term view will
catch up with that. We believe there is
an overwhelming confidence in Dubai
as a place to do business and a place
that has the infrastructure and the
necessary services. The confidence in
Dubai is very high,” he states.
And so is Nakheel’s confidence in
its financial soundness which it be-
lieves will see it through 2009, 2010
and beyond.
DUBAI REAL TIMES
37
 DUBAI FOCUS

Advertising plan for 2009

I
n the wake of the global finan-
cial crisis, real estate companies
especially are using various
means, such as preventative
budgets, to reduce their expenditure
and maintain their business through
the coming months. While some are
halting expansion plans and slow-
ing work on current projects, others
are cutting salaries or discharging
employees. In addition, most com-
panies are reducing their marketing
and advertising budgets for 2009, or
cancelling them altogether.
Al Mazaya Holding understands
that while it is necessary for com-
panies to find preventative means
through which to protect them-
selves, it does not mean that budgets
need to be reduced to almost noth-
ing. The key lies in redistributing any
available funds, taking into account
that promotional campaigns will be
reduced drastically due to the ab-
sence of new project plans currently
entering the market.
Said Eng. Salwa Malhas, Executive
Vice President of Al Mazaya Holding:
“Considering that our projects for
2009 are different in nature to those
in previous years, we are currently
focusing on the promotional cam-
paigns for our profitable projects,
where around 50 per cent comple-
tion is required before launching
any marketing and promotional ac-
Eng. Salwa Malhas, Executive Vice
President of Al Mazaya Holding
tivities. This means that marketing
campaigns will not be as drawn out
as those of property developments
where marketing coincides with the
beginning of plot sales, before de-
velopment works commence.”
Malhas continued by saying that
Al Mazaya’s expenditure on publici-
ty will this year include company ad-
vertisements in many GCC newspa-
pers throughout Kuwait, Dubai, KSA
and Qatar, as well as promotional
billboards, communication-related
activities such as interviews, reports
and news, as well as Al Mazaya’s pe-
riodic industry reports and studies.
She concluded by saying that 2009’s
budget will also include large tele-
vised promotional campaigns for
profitable projects.

More swimming New leasing programme for

pools in sports clubs Golden Mile, Palm Jumeirah

Swimming pool in Al Shabab Club

D
ubai Municipality has set up training swimming
pools in a number of sports clubs in Dubai at a
cost of Dh47 million. Eng. Hussain Nasser Lootah,
Director General of Dubai Municipality, said the world-class
project, which was implemented in Al Nasr, Al Wasl and Al
Shabab clubs, is considered to be among the most specia-

A
lised and pioneering projects. They will help bring up a new leasing programme for the bedroom apartments, townhouses and
DUBAI REAL TIMES

young generation knowledgeable in international practices
in sporting competitions.
The project includes closed and air-conditioned swim-
ming facilities, stretching at a land area of 9,500 metres
each. They were designed as per Olympic standards. The
swimming pools also include grandstands for capacity
crowds of 300 spectators, as well as administrative and ser-
vice offices, cafeterias, toilets for men and women, chang-
38 ing rooms, gymnasiums, sauna and steam baths, jacuzzis,
massage rooms, parking lots and other facilities.
residential component of the
Golden Mile, Palm Jumeirah
project in Dubai, has recently been in-
troduced. Golden Mile is located on the
western portion of the Palm’s trunk and
has a total of 10 buildings consisting of
860 residential units, offices and retail
outlets. The residential component will
be managed by Fairmont Palm Hotel &
Resort and includes one, two and three-
penthouses with sea and park views. Ten-
ants can move into their new residences
from this month onwards.
“We are committed to delivering su-
perior services and quality residential
properties to our customers. This leasing
service gives Dubai residents an afford-
able option to enjoy a luxurious island
lifestyle and the spaciousness of these
new apartments, which are 50 per cent

larger than comparable Dubai
apartments,” said Piaras Moriarty,
Vice President of Sales & Marketing
for IFA Hotels & Resorts, develop-
ers of Golden Mile, Palm Jumeirah.
Residents in Golden Mile, Palm
Jumeirah, where apartments are
50 per cent larger than compa-
rable Dubai apartments, will enjoy
services similar to those offered in
a five star hotel. A range of con-
cierge services will be provided
with an option to purchase addi-
tional ‘a la carte’ services including
child-care, housekeeping, grocery
shopping and more. Residents will
also experience the convenience
of having cafes, shops and bou-
tiques within the development,
as well as various pools and well-
equipped gyms.
// PROPERTY PRICES
Downtown
people mover
Limitless has invited bids for the de-
sign and construction of its Down-
town Jebel Ali people mover, with
the contract due to be awarded
by mid-2009. The people mover
– a quiet, convenient and environ-
mentally friendly alternative to the
car – will carry residents and visi- Offices in the first four commercial buildings at
Downtown Jebel Ali are now available for lease
tors around each of the four zones
that will make up the 200 hectare instead of four wheels, with a num- side a distinctive, mixed-use cen-
Downtown Jebel Ali development. ber of transport options – metro tral plaza building, providing easy
Designed to cut car use and reduce links, people movers and areas transport links to other zones and
congestion, it underpins Limitless’ where people can walk or cycle – to the rest of Dubai.
commitment to sustainability by to reduce car dependency and our Downtown Jebel Ali, under con-
moving people, not just cars, in all collective impact on the environ- struction along an 11 km stretch of
of its large-scale developments. ment.” Sheikh Zayed Road in Dubai, will
Salah Ameen, Project Director, Limitless is also working with the house 200,000 people in 326 build-
Downtown Jebel Ali, said: “Down- Dubai Roads and Transport Author- ings, 237 of which will be residential
town Jebel Ali will be a sustain- ity to build three of the four Dubai towers. Offices, from 3,500 to 15,000

Dubai
able, transport-rich development Metro stations that will be located square feet, are now available for
where people can live, work and in Downtown Jebel Ali. The four lease in zone one: to find out more,
visit without owning a car. The area zones within the development will visit www.downtownjebelali.com

Holding to
is designed around using two legs each have a Metro station along-

consolidate LEED floor coverings

back-office Sustainability leader aims for
LEED Gold certification and hopes
impressive commitment to Sustain-
ability and Mission Zero - its ambi-
in different Green Building Rating
Systems, such as LEED or Estidama

operations to support other Middle East firms

with green building projects
tious bid to achieve a zero environ-
mental footprint by 2020.
– both consensus-based standards
for developing high-performance,

Dubai Properties Group, Sama
Dubai and Mizin to align sup-
port services
I
nterfaceFLOR, a worldwide leader
in the manufacture of environ-
mentally responsible modular
floor coverings is expanding its
As a founding member of Emir- sustainable buildings.
ates Green Building Council and Globally, six out of eight platinum
leader in the sustainability field, the commercial interior LEED projects al-
company is able to assist clients ready use InterfaceFLOR carpets and

D
ubai Holding has an-
nounced that it will merge
the back-office operations
of three of its real estate entities,
Dubai Properties Group, Sama
Dubai and Mizin (a member of
Tatweer) under one consolidated
operation. While the ownership
and core activities of the three
presence in the region and aim- in choosing the most sustainable the company intends to extend that
ing for LEED (Leadership in Energy carpet tile from their wide prod- figure, as the number of projects in
and Environmental Design) Gold uct portfolio and meet the criteria the region increases exponentially.
certification for its new regional of-
fice in Dubai. The company, which
produces innovative, fashionable
and sustainable carpet tiles, will be
using its enhanced presence in the
region and its green building rating
DUBAI REAL TIMES

companies will not change, this will
lead to closer working relationships,
by realising efficiencies through the
consolidation of their back-office
operations.
This will not impact the legal re-
lationship that the companies have
with their current partners includ-
ing their suppliers, contractors and
their investors.
systems knowledge to support cus-
tomers with their own green build-
ings, helping them to become more
sustainable and save money in the
process.
The LEED recognition, which the
retailer has also earned for other
premises throughout the world in-
cluding America, Thailand, China, 39
and India, will add to InterfaceFLOR’s
 IN FOCUS

Parking for sewage water tankers Al Nahda Pond Park 2

A
s part of the activities during Plantation Week, which is being
celebrated by the municipalities of the country to mark the first
‘Municipalities
Month’, Dubai Mu-
nicipality announced
the completion of the
gardening work at Al
Nahda Pond Park 2,
which is scheduled
to open soon to the
public. It is one of
Parking lots for sewage water tankers at Sewage Treat- the new recreational
ment Plant in Al Warsan parks established to

T
he General Maintenance Department of Dubai Municipality recently
completed setting up parking lots for sewage water tankers that
come to the sewage treatment plant in Al Warsan, at a total cost of
Dh12.7 million, with the aim of assembling and organising the entry and
exit of these tankers to and from the plant. This was announced by Juma
Khalifa Al Fuqae, Director of General Maintenance Department, who added
that this is an important and major step to solve the problem of traffic jams
of waste water tankers on the roads in Al Aweer. The area has been ar-
ranged and planned in a way that ensures the safe and orderly entry of the
tankers that come to the treatment plant and a smooth exit without affect-
ing the traffic around the main streets.
Al Fuqae added that the project was designed taking into account the
provision of basic services for the drivers of the tankers such as prayer area,
cafeteria, toilets, and other things.
provide entertain-
ment, recreation and Al Nahda Pond Park
sporting services for
residents. The park has green spaces and recreational facilities, games for
children, jogging tracks, bicycle tracks, sports grounds and places to sit. It
has children’s play areas, a 1.4 kilometre cycling track, a 1.35 kilometre jog-
ging track and a 4,444 square metre area for practising different sports.
The centre of the park is occupied by a two chamber pond to collect
groundwater and rain water; one chamber for the water to be pumped
out and the other to drain the water from the pond when the need arises.
The pond is provided with a pump to raise the water and two pumps
to operate the fountains which ensure circulation and prevent the water
from becoming stagnant. The design of the pond allows water to flow
out when the level rises due to rain; this also prevents growth of bacteria.

Electricity costs soar 66
per cent in one year
Energy saving
initiatives to
play leading
role at Facilities
Management Expo
as companies seek
cost cuts in a tight
market
DUBAI REAL TIMES
ity and Water Authority (DEWA) intro-
duced a new tariff structure known
as the slab system. It was aimed at
encouraging energy consumers to
use less by paying more. Average in-
dividual electricity usage at the time
was said by DEWA to be 20,000 kilo-
watt hours per annum and 130 gallons
of water daily, placing Dubai among
cities with the highest consumption
per person in the world. However,
consumers, whether commercial,
educational or residential who did not
introduce measures to reduce con-
Strong demand
for world-class
office solutions
Strong demand for high-end office
solutions and international interest
in the Middle East market was
highlighted at the region’s largest
office showcase, The Office Exhibition,
which was officially opened by HE Dr.
Hanif Hassan Al Qassimi, Minister of
Education.
With large amounts of construction
projects now reaching completion and
the commercial sector still expanding,
companies are in need of bigger
workspaces. Growth in the public

HE Dr. Hanif Hassan Al Qassimi, Minister of sumption after the introduction of the sector has shown a steep rise in fit-
Education officially opened The Office Exhibition outs and refurbishments across the
slab tariff will have seen electricity bills

C
ommercial and residential
property owners and ten-
ants in Dubai who failed to
take energy saving measures a year
ago will have seen their electricity
bills soar by up to 66 per cent in the
40 past 12 months, according to a sur-
vey carried out by Farnek Avireal, the
UAE company which advises build-
ing owners on how to dramatically
cut utility bills-for property and fa-
cilities management event F M Expo.
FM Expo takes place from 24-26 May
2009 at the Dubai International Exhi-
bition and Convention Centre.
On March 1, 2008 ,Dubai Electric-
in some cases soar in the past full year
by over a million dirhams.
Farnek Avireal say the cost of its En-
ergy Saving Module – which reduces
electricity consumption from air con-
ditioning and refrigeration systems by
up to 25 per cent – can be paid back in
savings within 12 to 18 months.
region, including schools, hospitals
and universities.
Running alongside the exhibition was
the brand new Office Talks seminar
with industry experts addressing key
topics such as sustainability, workplace
health and productivity and facilities
management.

A ‘real’ opportunity
Investment company Gowealthy Capital Limited to launch funds worth $325 million this year
By Ambily Vijaykumar
A
t a time when everyone
is turning away from the
real estate market there
is someone who believes
this is the best time to enter the mar-
ket. Investment company Gowealthy
Capital Limited, a subsidiary of
Gowealthy Holding will be launch-
ing three property investment funds
in the second quarter of this year
with a net worth of $325 million.
Each fund that will be denomi-
nated in dollars will have a separate
structure and a minimum number of
investors in it with the fund required
at the entry level for each individual
being $250,000-500,000. The focus
of the funds will mainly be assets
in Dubai for the moment, though
Gowealthy Capital is also keen on
tapping into the wider GCC markets
at a later stage.
The funds will be of five-year
duration as “investment in property
should either be a medium or a long
term venture,” says Peter Penhall,
Senior Executive Officer, Gowealthy
Capital. “What was happening in
the past was that there were lots of
short-term players of speculative na-
ture in the Dubai real estate market.
They have all burnt their fingers,” he
adds.
But the question that comes to
mind is “why now?”
“The fundamentals within the
GCC are sound. In Dubai, the govern-
ment has invested a lot of money in
infrastructure which is the most cru-
cial aspect. What is seen to happen
is that without the infrastructure in
place most major developments
fail to deliver to expectations,” says
Peter.
Since it is a property investment
fund, considering the current cli-
Peter Penhall, Senior Executive Officer, Gowealthy
mate, isn’t zeroing in on the asset a
bit of a challenge?
“We are able to leverage the
knowledge and connections of the
Gowealthy group. Hence we are able
to identify opportunities up front of-
ten before they hit the general mar-
ket and are able to secure offerings
that the general public would not
even know are available. We then
structure the fund around that as-
set. For instance, I could be looking
at bringing a fund to the market that
focuses on distribution facility. Dubai
is pitching itself as a major distribu-
tion hub within the region and there
is an opportunity for a fund to cater
to that sector,” explains Mr. Penhall.
Though he refused to divulge
names, Peter says the company has
been entrusted with the responsibil-
ity of launching the residential funds
on behalf of “two significant” devel-
opers. “One of them is a listed entity
and the other is a master developer
of one of Dubai’s most dynamic
projects,” he informs.
Considering that investor confi-
dence in real estate is at an all-time
low, convincing them to enter the
market is a definite challenge. Pen-
hall explains that though there is
nothing like a safe investment, “the
diversification of the fund will ensure
that the risk is spread. If someone
puts the money into a single prop-
erty, and if that property crashes,
then all is lost. That is not the case in
a property fund.”
The investors for these new
funds will be professional clients
who are investor savvy and have
a net asset worth of over a million
US dollars. Another aspect of the
“The government has invested a lot of money
in infrastructure which is the most crucial
aspect. What is seen to happen is that without
the infrastructure in place, most major
developments fail to deliver to expectations”
property fund is “its three-fold exit
strategy”.
Gowealthy says they can intro-
duce new clients into the fund and
in that way can allow an existing cli-
IN FOCUS
ent to exit. The next method is to
hold on until the maturity of that
fund and the last one is during con-
solidation of certain funds.
Penhall underlines the need for
high net worth individuals to enter
the market at this time rather than
employ a wait and watch policy.
“We would want to offer them a
small entry point into the market
so that they are not too exposed to
the risks. Investors don’t have to put
in five million dollars, they can be-
gin at a hundred thousand instead.
Because if they wait, they will miss
out on being a part of the action,”
he informs.
Gowealthy is confident that
with the spike of 2008 having been
erased and with most of the 2007
price in the real estate market hav-
ing been eliminated, the market is
back into the 2006 pricing struc-
tures. “Had this not been the case,
the opportunity for further growth
on the back of the 2008 phenom-
enal move would have been that
much more limited,” Penhall says.
With unregulated operations
of the real estate market bringing
DUBAI REAL TIMES
about massive losses it has endured,
Gowealthy says its decision to be
registered at the DIFC and be regu-
lated by the DFSA “should give in- 41
vestors a lot of confidence.”
 APPOINTMENTS

Arady announces new CEO Drake & Scull assembles a

served on its Investment Committee.
Busaibe started his career in ADIA as
Portfolio Manager at its London Of-
fice.
Throughout his career, Busaibe
has positioned himself as a leader
with acute business acumen and
a thorough working knowledge of
capital markets. He commented on
his appointment: “It is clear that Ara-
dy’s prospects are bright despite the
turbulence affecting our markets in
the immediate future. The not incon-
siderable achievements of this young
Jassem Saleh Busaibe
company provide a solid foundation
formidable team
D
rake & Scull International
(DSI) PJSC , an end-to-end,
UAE service provider of me-
chanical, electrical and plumbing
(MEP) contracting, infrastructure,
water and power (IWP) and civil con-
tracting, assembled a formidable
executive team in preparation for its
ing business and pursuing strategic
acquisitions. DSI will be the first spe-
cialist MEP contracting Company to
list on the Dubai Financial Market.
Fellow of the Chartered Insti-
tute of Building Service Engineers,
Charles Lever’s role encompasses
the development and implementa-
tion of effective business strategies.
Michael Salmon has over forty
years experience in the engineer-
ing and construction industry. His
chief objective will be to introduce

A rady PJSC, one of the UAE’s real

estate investment companies,
has appointed Jassem Saleh Busaibe
as its Chief Executive Officer to take
over the day-to-day running of the
company. Busaibe, a UAE National,
previously held the position of Chief
Investment Officer. Prior to joining
Arady in October 2008 , Busaibe was
Senior Vice President in the Private
Equity Department for Abu Dhabi
Investment Company where he also
Dubai Group and Dubai
International Capital to align
Soud
Ba’alawy
and Sameer
Al Ansari
appointed
Co-Chairs of
DHIG Sameer Al Ansari
for us all to build on. Arady’s core as-
sets, however, are its people, and I
feel confident that this high calibre
team will work tirelessly towards a
bright and prosperous future.”
HE Sheikh Hamdan bin Mubarak
Al Nahyan, Chairman of Arady, add-
ed: “With his extensive investment
experience and strategic real estate
expertise, I’m confident that Jassem
will continue to contribute to Arady’s
growth and successs.”
Soud Ba’alawy
listing on the Dubai Financial Market
(DFM). Since the IPO in July 2008,
four powerful industry leaders have
been recruited to ensure DSI has an
extremely experienced executive
team available to lead the company
into the future as a public company.
This remarkable and highly experi-
enced team consists of Charles Lever
as General Manager & Director of
MEP, Michael Salmon as Chief Com-
mercial Officer, Zeina Tabari as Chief
Corporate Affairs Officer and Kamil
Daniel as Chief Investment Officer.
DSI’s IPO, which was 101 times
oversubscribed, attracted around
45,600 applicants who invested
funds of approximately Dh124 billion
into the company. These funds will
be used for three purposes: organic
growth, the development of exist-
New CEO appointed for TPM
T PM, a Dubai-based project management consultancy, has appointed
Dr. Adel Karem Jemah as its new CEO. Prior to his appointment as CEO
and implement the systems and
controls to take effect as a result of
DSI’s IPO. Prior to DSI, Salmon was
with Drake & Scull, UK, for 15 years
working on major projects such as
the London Underground’s Jubilee
line extension. Zeina Tabari has the
task of managing communication at
all levels between DSI, the financial
community, and other stakehold-
ers. Kamil Daniel joins DSI as Chief
Investment Officer where he draws
on his experience at Standard & Poor
and as an adviser to the Economic
Planning Unit of the Malaysian Prime
Minister’s Department to direct the
overall investment programme and
provide oversight of externally man-
aged investments. Daniel will also
undertake the research and imple-
mentation of the merger and acqui-
sitions programme.

D ubai Holding has announced

that Soud Ba’alawy, Execu-
tive Chairman of Dubai Group and
of TPM Construction Consultancy, Dr. Jemah was the Vice-President for
Dubai Operations at Hill International, where he was directly responsible
for the oversight and management of multiple high-profile projects in the
DUBAI REAL TIMES

Sameer Al Ansari, Executive Chair-
man of Dubai International Capital
will take on the roles of Chairmen of
Dubai Holding Investment Group. In
addition to his current role as CEO
of Dubai Group, Tom Volpe will be-
come the CEO of Dubai Holding In-
vestment Group and Acting CEO of
42 Dubai International Capital.
While the ownership and core ac-
Tom Volpe
tivities of Dubai International Capital
and Dubai Group will not change,
both companies are to forge a closer
working relationship to realise effi-
ciencies through the consolidation
of their back-office operations.
region. Dr. Jemah holds a PhD in Structural Engineering from the Univer-
sity of Wales, College of Cardiff, where he worked as a lecturer for several
years.
Among the projects, TPM is currently managing are: (1) Living Legends
development with 500 villas, 12 residential buildings and 12 multi-storey
car parking, three commercial buildings, golf course, golf club and hotel,
community facilities, including a primary school, kindergarten, nursery and
a shopping mall; (2) Ajman Marina development composed of 30 towers of
mixed use, quay wall and yacht club; (3) three commercial towers at Busi-
ness Bay, and; and (4) An iconic mixed use high rise tower at the DIFC
 HANDOVERS
Delivery of luxury villas at Victory Heights begins
Villa at Victory Heights Realty at the Els Club
Residential component follows Els Club Course opening in 2008
D
elivery of the first villas of the munity of 964 townhouses and villas
Victory Heights luxury devel- sitting on 25 million square feet of
opment, an exclusive com- sporting paradise, started recently.
800 residential units at Apartments in Lake View Tower
Lake Jumeriah
A
The Icon 1
l Mazaya Holding
has handed over
800 residential
units at the Icon 1 and
Icon 2 projects, the first
projects to be sold out
completely at Jumeriah
Lake. As the Dubai market
prepares to receive 70,000
residential units during
2009 and 2010, Al Mazaya
has worked extremely
hard to ensure delivery of
these properties to their
owners early in 2009, with
the delivery of other proj-
ects expected during the
coming two years.
Said Eng. Fathi Dhamiri,
SVP Projects, Mazaya
DUBAI REAL TIMES
Dubai: “Al Mazaya is also
developing three com-
mercial towers, called Business Avenue for the business sector
in the same area. This is 50 per cent complete, with handover
due to take place towards the end of 2010.”
Dhamiri went on to say that the company is keen to com-
ply with laws in terms of the management of special services
at real estate projects. Thus, services management at the Icon
44 Towers was awarded to an expert special service company
called Spectrum, a subsidiary of Al Mazaya.
nie Els, which forms the centrepiece
of the Victory Heights community,
was opened in April 2008. As was
the case with the opening of the
Club, the President of Dubai Sports
City, Khalid Al Zarooni, believes that
progress made in delivering the first
of the Victory Heights properties is a
key moment in the unfolding story
of this master development which
was launched in 2004.
Zarooni stated that Bureau Veri-
tas, the international quality assessor,
had dutifully monitored build quality
from the project’s start to finish and
The Els Club, a championship golf can attest to the tremendous atten-
course designed by the three-time tion shown by developers to these
major winner from South Africa, Er- residential offerings.
L
uxury lifestyle provider Damac Properties has completed its Lake View Tower - the
second of the company’s projects to be completed at Jumeirah Lake Towers. The
final completion certificate was awarded to Damac Properties recently and cus-
tomers have started to move into the 40-storey tower.
The final completion of the 536 apartments and retail outlets at Lake View marks the
end of a significant year for Damac Properties (2008) in the UAE, where the company
has fulfilled its promise of delivering around 2,000 units into the market. Less than ten
apartments are left at the Lake View development and the company is currently offering
special incentives for these ready-to-occupy units.
Damac Holding Chairman, Hussain Sajwani said: “Completing this development is a
superb way for us to start the first quarter of 2009. There is no doubt that the second
half of last year saw a big shift in terms of the affect of the global economic crisis on the
property market in Dubai. We firmly believe that the market will continue to reward
those companies that deliver on the quality they promised. We are pleased to see our
first customers now able to move into Lake View and enjoy an area that is becoming
more and more popular with the recent opening of Dubai Marina Mall and with the new
metro due to open later this year, which will have stations close by.”
Aside from the significance of finishing several other towers in 2008, Damac Proper-
ties is continuing to make impressive progress at other key developments across Dubai.
At Ocean Heights, the company’s flagship building at Dubai Marina, construction has
already reached the 39th floor with one floor being completed every week. Meanwhile
at Tecom, Damac Properties’ Executive Heights building is completed and at Smart
Heights, the building has reached the eleventh floor. At the company’s only project at
DIFC, Park Towers, the twin tower development is now taking shape on the landscape
and is rising at a floor every six days.
Hussain Sajwani concluded, “This is a new era for the UAE property market. While it
was reported by Colliers that property prices fell in Dubai by eight per cent in the last
quarter of 2008, overall prices were up 59 per cent on the previous year - something
worth keeping in perspective. We are fully aware that the market conditions will remain
tough in the UAE during 2009, but believe that by staying focused and continuing the
way we have, we will be in a strong position when the market starts to recover. Construc-
tion is continuing steadily across our developments and we look forward to reporting
more progress in the coming months.”

Reef Commercial Tower
Completed project bolsters commercial offering in JLT district
R
eef Commercial Tower, de-
veloped by Reef Real Estate
Investment, has recently fin-
ished construction and is ready for
occupancy in the Jumeirah Lake
Towers (JLT) district. The G + 32
tower provides attractive office so-
lutions for businesses seeking acces-
sible commercial space and a stable
investment opportunity. Support-
ing the growth of JLT, this tower of-
fers Grade A freehold office space.
The tower will house a luxury spa
operated by WTS International – the
renowned global spa management
specialist that also manages spas in
the Trump International Hotel and
Towers and the MGM Grand De-
troit.
Commenting on the launch of
the project Craig Johnson, Manag-
ing Director of Richmond Realty, the
exclusive agent for the project said:
Chelsea Gardens Hotel Apartments
Chelsea Group Hospitality launched Chelsea Gardens Hotel Apartments Dubai with a fresh approach to
extending affordable luxury to corporate and leisure travellers.
C
helsea Group has launched a
new upscale, full-service ho-
tel apartment chain, named
Chelsea Gardens Hotel Apartments,
that is aimed at luxury travellers, busi-
ness travellers, families and holiday
makers. It is located next to the Ibn
Battuta Shopping Mall, Jebel Ali. The
deluxe hotel comprises of 348 apart-
ments in two buildings that are fur-
nished in style. It includes 20 suites,
two restaurants, a coffee shop, busi-
ness centre, four board rooms, two
spacious banqueting halls and state-
of-the-art facilities and amenities.
There are 169 well appointed
rooms in each building, out of which
53 are one bedroom apartments and
116 studio apartments. All are crafted
with a singular purpose in mind – to
“The current property market is suf-
fering due to the global economic
crisis and many projects are on hold.
In particular off-plan properties are
grinding to a halt so being able to
offer a finished project is a real coup.
Now more than ever businesses
enable guests to experience tran-
quility. Located across nine floors,
each of the guestrooms is equipped
with kitchens fitted with all modern
appliances. Other essential amenities
include satellite television, DVD play-
ers, CD players, high-speed Internet
access and direct-dial phones that
give one the comfort of a home.
With services that include air-
port transfers (on request), 24-hour
concierge, 24-hour security, busi-
ness centre, conference rooms, 24
hour room service, safe deposit box
in each apartment, LCD televisions,
fully equipped Nautilus gym, satel-
lite/cable television, housekeeping,
laundry service and a travel desk, the
tower provides all the facilities one
requires.
need to consider strategic office
locations that provide a solid return
on investment over the long term.
Given the location of Reef Commer-
cial Tower and the flexible business
opportunities offered by the JLT free
zone, this property presents a very
attractive proposition to investors.”
According to industry analysts,
the Dubai property market is expe-
riencing a notable shift away from
the short-term speculative investor
to owner-occupier long-term inves-
tors, making completed projects in
good locations the prized pickings.  to stop ghost offices from being set
The 200 hectare JLT free zone is
quickly establishing itself as an inter-
national commercial hub positioned
on the main artery through Dubai,
the Sheikh Zayed Road, and the
new Metro system. It provides stra-
tegic business solutions that can be
secured by any company after the
The Gardens Hotel and apart-
ments opened in December 2008,
has two well designed and inviting
restaurants providing a wide and
varied menu and private dining op-
tions. Wharf is an elegant restaurant
and offers a wide variety of European
LAUNCHES
approval of a business plan by the
Dubai Multi Commodities Authority
(DMCC).
“As long as a company has a clear
business model as part of its initial
proposal and can prove that the
offices will be a genuine working
space, the DMCC Authority will con-
sider granting an operating licence.
Commercial businesses do not have
to match free zone specifications as
is widely thought, and it is necessary
for this to be clarified now. The DMCC
has simply implemented measures
up and left empty in its Jumeirah
Lake Towers development.
“Reef Commercial Tower pro-
vides a solid commercial property
opportunity and the DMCC offers
businesses seeking offices an ideal
gateway into the UAE’s commercial
property market,” added Johnson.
DUBAI REAL TIMES
and Asian specialties; themed din-
ners are popular with house guests.
The second restaurant is the Asian
restaurant Zen Gardens that caters
to an array of authentic Thai and Chi-
nese dishes from Schezuan and the 45
Hunan provinces of China.
 UNDER CONSTRUCTION

New payment scheme for Aquarius Gate customers

C
irrus Developments LLC has reacted positively
to the needs of its customers by implementing
a payment, plan that is linked to the construc-
tion development of one of its major projects - Aquar-
ius Gate. The new plan means that for all future pay-
ments customers will only need to make them once
certain construction milestones have been met. The
announcement comes on the back of Cirrus Develop-
ments’ discussions with its existing purchasers who
they have been meeting with on a one-on-one basis to
listen closely to their needs and expectations.
 The move has been approved by the Real Estate Regula-
tory Agency (RERA) and follows a proactive approach by the
company to have the new payment plan for Aquarius Gate,
located within Nakheel’s Waterfront project, reviewed and
supported by RERA.
  Aquarius Gate, a Dh3 billion project, was revealed to
great acclaim in the investor pre-launch phase.  The devel-
opment comprises two towers – one residential and one
commercial – and is located in Madinat Al Arab.  Aquarius Gate

A tour of building sites

D
ubai Properties has an-
nounced that work is pro-
gressing as scheduled within
the Dh110 billion Business Bay master
development and several projects
including Vision Tower and Aspect
Tower are on course to nearing
completion. Addressing members
of the media after a site tour of the
64 million square feet Business Bay
master development, Mohamed Bin-
brek, Group CEO of Dubai Properties
Group, said: “We have ensured work
has continuously progressed at a
steady pace. As you have witnessed
today, around the entire master de-
velopment, the towers are at various
stages of completion. We intend to
continue the pace of work towards
completion of all developments
with Business Bay and other projects
as well.”
Vision Tower
Dubai Properties’ first project in
Business Bay, the Dh3 billion Execu-
tive Towers, markedly visible from
the arterial Sheikh Zayed Road and
Al Khail Road, is currently 92 per cent
complete with work proceeding si-
multaneously on all 11 buildings of
the project. While 10 of them are
residential (from studio-to four-
bedroom), others include one office
tower (with 187 office suites), 60 villas
located at the plaza level, eight bou-
tique office villas and a three-level
podium that offers parking bays for
4,500 vehicles. The structure of the
Executive Towers is complete, with
the facade nearing completion and
commissioning is well underway.
The Dh1.2 billion Vision Tower at
the Business Bay will release more
than 500,000 square feet of com-
mercial office space when all the
67 floors will by handed over by the Executive Towers
second quarter of 2009. Construc- tower with its high-tech transparent
tion is over 78 per cent completed glazing is set to become a signature
and remaining work is progressing as element of the entire development.
scheduled. As the gateway to Busi- It will be internally lit to create a lumi-
ness Bay, the bent glass facade of the nous beacon at nighttime.

Shoring up Celestial Heights

Downtown Jebel Ali development on track
DUBAI REAL TIMES

C
irrus Developments LLC, the
first third party developer
to begin construction at
Downtown Jebel Ali, has complet-
ed the enabling, piling and shoring
package for its Celestial Heights
project. The development is now
46 moving into the second phase of
construction.
 Behnam Eshragh, Chairman and
CEO of Cirrus Developments, said:
“By working closely with Limitless,
the master developer, and other au-
thorities, we managed to start con-
struction before anyone else.”
 Muwafaq Kharbat, Projects Direc-
tor of Cirrus Developments, added:
“The construction team has been
working very hard to ensure we com-
plete the first package on schedule.
In doing so, we have in the first pack-
age used 5,700 cubic metres of con-
crete, 715 tones of reinforced steel
and excavated 93,000 cubic metres.
We now have a de-watering system
running which is discharging 840 cu-
bic metres of water per day”.
 Celestial Heights itself is located
in the Trellis District of Zone One,
Downtown Jebel Ali, which compris-
es mid-rise towers, shaded walkways
and beautiful parks.  The develop-
ment offers residential, commercial
and retail units, and will be made up
of three towers - Capella, Orion and
Polaris. 
 Emaar unveils ready-to-live-in
‘Open Home’ in The Old Town
E
maar Properties has unveiled a
ready-to-live-in ‘Open Home’
that highlights the lifestyle
amenities and design elegance of
residences within The Old Town in
Downtown Burj Dubai. The Open
Home, which is a fully furnished
model home, is open for viewing
by customers who can register their
interest online at www.emaar.com,
or call, or visit Emaar Square Sales
Centre from 9am to 6pm, Saturday
to Thursday. Emaar is also currently
finalising various open homes for
other communities within Down-
town Burj Dubai.
Potential customers can opt to
rent or purchase residences within
The Old Town through the de-
The Tiger Woods Dubai commences
grassing at Al Ruwaya Golf Club
Unique grassing technique utilised for the first time in the region
Grass at Tiger Woods Dubai
The Old Town at Downtown Burj Dubai
veloper’s ‘Rent to Own’ or ‘Plan to
Own’ schemes. The schemes will
enable customers to own property
under more affordable terms within
Emaar’s world-class master-planned
T
he Tiger Woods Dubai, an
exclusive 55 million square
foot golf community devel-
opment and a member of Tatweer
Dubai, has commenced grassing
work on the 7,800 yard, par 72, 18-
hole championship Al Ruwaya Golf
Course, the world’s first golf course
to be designed by Tiger Woods De-
sign. The golf course will feature
three different varieties of grass. Tif-
way 419 will be used in the fairways
and rough, TifEagle on the greens
and tees, and Tifdwarf on the ap-
proaches and expanded collars. All
three strains have been procured
from Atlanta, Georgia, USA. The
grassing is underway under the su-
pervision of IMG Golf Course Man-
agement, the company mandated
to operate and manage the Al Ru-
waya Golf Club.
Tiger Woods, the world’s num-
ber one golfer and Chairman of
Tiger Woods Design, said: “It’s excit-
communities in Dubai.
As per the ‘Plan to Own’ pro-
gramme, Emaar will help potential
home-owners and commercial cus-
tomers who can qualify for a mort-
ing to see my first ever golf course
design coming to life. My vision, and
the work of my design company are
being realized.”
This will be the first course in the
region to grass all its fairways and
rough areas by sod transplanting.  golf course design
The process involves transplant-
ing turves of grass from the nursery
to the golf course.  The turf nursery at
Al Ruwaya covers an area of 60 acres.  work of my design
A sod cutter is used to remove strips
of grass and earth, 42 inch wide and
approximately 30 metres long.  The
rolls of grass are transported from
the nursery to the golf course, and
subsequently laid onto the fairways
and precisely positioned within the
appropriate areas.  This process pro-
duces fairways and primary rough of
a very high quality in a short period
of time.  Trees are being planted at a rate of
The teeing areas and greens will
be grown through the conventional
process of sprigging.
gage through a bank, to bridge the
gap by extending their payment
plans. With the ‘Rent to Own’ pro-
gramme, tenants can adjust 100 per
cent of the first year’s rents as home
finance if they decide to purchase
the property within ten months of
living in the home.
Featuring low-rise, three-storey
apartments, The Old Town has 1,560
residential units in six quarters – Yan-
soon, Zaafaran, Reehan, Zanzebeel,
Kamoon and Miska. The terraces,
balconies, recesses and niches are
reminiscent of the old world Arab
architectural splendour, and make
for a comfortable outdoor lifestyle.
Amenities include children’s play ar-
eas and pool facilities.
“It’s exciting to
see my first ever
coming to life. My
vision, and the
company are being
realised.”
DUBAI REAL TIMES
Al Ruwaya is making significant
progress, with the completion of
detailed shaping on 10 holes, whilse
eight holes remain roughly shaped.
50 per day, with a total of 2,000 of
the 11,000 required for the course 47
already been planted.
 Breaking ground on ‘Champions Tower IV’ and
‘Frankfurt Sports Tower I’
Stromek Emirates Foundation bags shoring and excavation contracts for the two towers

M
emon Investments has broken ground on two of its latest proj-
ects located in Dubai Sports City - ‘Champions Tower IV’ (CT IV)
and ‘Frankfurt Sports Tower I’ (FST I). The foundation works on the
two high profile projects will be undertaken by Stromek Emirates Founda-
tion (SEF), a subsidiary of M`sharie - the private equity arm of Dubai Invest-
ments.
The contracts awarded to SEF underline the company’s strong partner-
ship with Memon Investments, who had earlier entrusted the contractor to
undertake the initial ground work for two of its previous projects, namely
‘Champions Tower II’ and ‘Champions Tower III’. Furthermore, the ground-
breaking of the towers has followed the successful launch of both towers
only a few months ago. The company is focused towards hitting the dead-
Champions Tower IV
line set for the projects’ excavation, shoring and foundation works, in line
with the developer’s commitment to its investors for the timely delivery of Set to provide world-class luxury living, ‘Frankfurt Sports Tower I’ has been
both the luxury residential towers. designed by Al Hatmy Engineering & Consultancy to emanate a German-
The AED 450 million ‘Champions Tower IV’ is a 20-storey tower, which inspired ambience. The tower, which was launched by the developer in
will offer 114 studios, 113 one-bedroom and 19 two-bedroom apartments. partnership with Sumsum Developers, will comprise 224 units, including
The exclusive freehold residential development, which has been designed 140 studios, 56 one-bedrooms and 28 two-bedroom apartments within a
by Eng. Adnan Saffarini Office, will offer tenants views of the golf course, gar- total built-up area of 177,378 square feet. It will feature two levels of base-
den and canal, a state-of-the-art surveillance and intercom system, 24-hour ment parking, covered parking on the ground floor and the convenience of
manned security and in-house maintenance, and other luxurious amenities. state-of-the-art amenities.

Infinity Tower on track

I
nfinity Tower, the winner of several world-class
awards, is on the path to becoming a new landmark
for Dubai; a project that will come to be viewed as the
epitome of 21st century architecture due to its unique
spiral twisting shape. It is a 73–storey residential tower

i-Rise
with a dynamic twisting shape and waterfront views.
It is the first structure of its kind will be more than 300
metres high and is the dominant feature on Dubai Ma-
rina’s landscape. It will also be the world’s tallest tower
to feature a 90–degree twist.
project on
The structural system for the tower is high strength
concrete core with a reinforced concrete column su- schedule I-Rise

perstructure that rotates with the twisting shape. In
addition, each floor will accommodate a 1.08–degree
twist to achieve the full 90–degree spiral. The tower
will be clad in metal panels with staggered glass and
DUBAI REAL TIMES
R
ealty Capital has announced that construction on its centerpiece i-Rise business tower
project remains on schedule and will finish on time for the tower’s announced mid-
2010 completion date. The casting of the tower’s fifth podium floor slab is underway
and will be completed soon. Mechanical, electrical and plumbing installations as well as

screens to maximise the penetration of daylight to the
apartments, creating something that will shimmer in
the bright sunlight in a mixture of different reflective
materials.
Six high-speed lifts shall be installed with a speed of
eight metres per second.
As of January, the project construction was ahead of
schedule and the central core wall reached Level 10 and
48 the six basement floors, ground floor and mezzanine
floor have been completed.
block-works are also ongoing at the basement and podium levels.
“We take pride in handling one of the most awaited projects in Dubai, which has been
able to proceed despite today’s challenging business conditions. We assure our clients and
partners that work on i-Rise is going smoothly and that we shall continue to anticipate and
effectively manage all potential challenges,” said Marwan Mansour, CEO, Realty Capital.
Strategically located at Tecom Site-C, Dubai’s Technology and Media Free Zone, the busi-
ness tower will feature a specially treated podium façade; modern executive and corporate
offices; 19 high-speed elevators, dining establishments; commercial space; a fitness centre; a
helipad; and a multi-storey car park.
 INFRASTRUCTURE
Dubai Industrial City gets
its first power substation
More than Dh400 million invested to build a series
of 132 KVA substations The first pultrusion
D factory in Dubai
ubai Industrial City (DIC), a member of Tatweer Dubai, has an-
nounced that Dubai Electricity and Water Authority (DEWA) has
supplied the first of three 132 kVA substations that are currently un-
der construction to meet the growing demand for energy from its various
manufacturing units.
Saeed Mohammed Al Tayer, Managing Director and Chief Executive Of-
ficer of DEWA, has pointed out that the authority realises the importance of
the industrial sector and considers DIC as an essential pillar of the economy.
Keeping this in mind, it aims to supply these areas with the right capacity at
agreed pre-specified timings.
Rashed Al Ansari, Vice-President of Dubai Industrial City, said: “The sup-
ply and operation of the first substation reflects our strong commitment
to securing the energy needs of our investors. This has become even more
vital with the rising number of investors currently engaged in the construc-
tion of various manufacturing facilities/units and factories.”
Thanking DEWA for its support, Al Ansari added: “Because of DEWA’s ex-
cellent support, our headquarters, Phase 1 of labour residences, four office Wayne Mikkelsen, NZTE’s Dubai-based Trade Commissioner and Dr. Salwan
Al-Assafi, General Manager of Pultron Composites Middle East
buildings and three million square feet of warehouses are already functional
and completely fitted out with utilities connections, enabling tenants to
take occupancy.”
“Next year is predicted to be slower than
originally forecast because of the economic
Construction safety course for DM engineers
downturn, but Pultron is continuing to
D ubai Municipality, in cooperation with Mirdif Security & Safety Consul-
tants, recently organised a course for its engineers as part of the series invest in the Middle East because there will
of training courses aimed at enhancing their level of competence, field su- continue to be underlying growth in our
pervision and work inspection in construction sites. All fifty engineers in the
Engineering Supervision Section were trained on safety conditions and the
specific sector …”
new additions in the manual that conforms to the latest and advanced in the

N
field of safety science in the advanced countries. ew Zealand based Pultron
The course coincides with the Buildings Department issuing safety man- Composites has started
ual for construction sites in Arabic and English, which is considered to be building the first pultrusion
one of the major reference materials on safety in construction sites in the factory in Dubai at the Jebel Ali
emirate of Dubai. Contractors and consultants can get a copy of the manual Free Zone as part of its expansion
from the concerned counters in the Municipality. plans in the region. The company
serves the construction industry
through world class pultrusion
Environment Minister briefed on technology which transforms fibre
in the past two years and expects
to make significant staff increases
in the coming year. This includes
specialist sales engineers with in-
dustry specific knowledge.
“Next year is predicted to be
slower than originally forecast be-
cause of the economic downturn
but Pultron is continuing to invest

waste management projects and specialty resins into reinforced

materials with high strength, light
in the Middle East because there
will continue to be underlying

A Dubai Municipality delegation visited Mr. Rashid bin Fahd, Minister of

Environment and Water at his office and briefed him on the accomplish-
weight, corrosive and electrical re-
sistant properties for use in harsh
growth in our specific sector and
the corrosion problems will not go
DUBAI REAL TIMES

ments, projects and activities of the Waste Management Department in the environments where corrosion can away,” says Dr. Al-Assafi.
Municipality. The minister was briefed about the high standard the civic dramatically limit the lifespan of Recently the company won a
body has reached in waste management, as well as the latest equipment, steel. grant for $1.2 million from the New
technology and systems that are being used by the department for storing Pultron’s purpose built factory Zealand Government’s Foundation
and transporting waste and treating different types of wastes. in Dubai is part of the company’s for Research, Science and Technol-
The Municipality delegation also invited the minister to participate in the strategy to better serve its custom- ogy. The funding will deliver a new
Waste Management Summit, to be hosted by Dubai in May. This event, to be er base in UAE, KSA, Qatar, Bahrain platform of technologies providing
attended by a number of government bodies and private sector establish- and Oman. Its General Manager Dr greater intellectual capability and
ments, will take up different issues related to waste management and recy- Salwan AlAssafi says the company technical know how that can be 49
cling and the latest development in the field. has increased its staff in the region applied across its entire business.
 FACILITIES & SERVICES

Omniyat Asset Management launched

O
mniyat Holdings has
launched Omniyat Asset
Management (OAM), a full
service management company of-
fering strata, facilities, property man-
agement and investment services
focused on providing customers
with a convenient and efficient way
to capture and enhance the value of
their property investments. OAM
comprises of Omniyat Strata Man-
agement, Omniyat Facilities Man-
agement and Omniyat Property
Services.
Omniyat Strata Management has
been established to provide strata
management services to the Owners
Associations. It will provide efficient
and comprehensive strata manage-
ment support to both individual oc-
cupants and the common areas and
assets. This includes strata levy bill-
ing; accounting; insurance; current
and future maintenance and repair,
to provide transparency in the way
their buildings are managed and op-
erated, as well as to ensure the build-
ing as a whole is maintained well into
Peter Walichnowski, CEO of Omniyat
the future.
Omniyat Facilities Management
ensures the collective needs of the
investor, tenants and the property
itself are addressed in a prompt
manner. Using state-of-the-art soft-
ware to improve asset life-cycle and
reduce maintenance costs. Staff
manage a wide range of variables
required to maintain a property. This
includes meeting current specifica-
tions and international standards,
setting a maintenance strategy,
concierge and reception services,
plus energy and car park manage-
ment.
Omniyat Property Services offers
key functions, which are essential to
the ongoing management of one’s
assets, to add considerable value
and sustainability to the investment.
These services are tailored to resi-
dential and commercial premises.
Features include property manage-
ment; leasing, turnkey fit-out, sales
brokerage and other value add ser-
vices, such as mortgage and valua-
tion services.
Peter Walichnowski, CEO of Om-
niyat Properties said: “Omniyat is
committed to providing our cus-
tomers with outstanding buildings,
services and management solu-
tions throughout the lifecycle of
their relationship with our proper-
ties, which will maximise the return
on their investment. Omniyat Asset
Management has been established
to support our customers with an
integrated range of services which
otherwise they would find difficult
to get from a single service provider.
Our aim is to establish a long-term
relationship with our customers that
continue after we deliver the physi-
cal buildings to ensure that the Om-
niyat experience continues through
the investment phase so as to deliv-
er superior returns and to eliminate
the problems associated with man-
aging their property investments.”

Imdaad to provide FM to Dubai

World Corporate Services Sungwon OBO at
Michigan State
I
mdaad has signed a 10-year contract with Dubai World Corporate
Services under which it will undertake maintenance including MEP
Services, Civil Engineering, and Infrastructure maintenance at all
University Dubai
Dubai World Corporate Services premises. FM solutions specialist is tapped
Speaking about the agreement, Jamal Abdulla Lootah, CEO of to maintain the excellent
Imdaad said: “Imdaad has gained vast experience in the field of total condition of MSU Dubai’s
facilities management. Our agreement with Dubai World Corporate
new headquarters in Dubai
Services constitutes an added value to our business portfolio which
Eric Raes, CEO of Sungwon OBO International Academic City
includes various top real estate, financial, services, and industrial

companies in Dubai.”
Speaking on behalf of Dubai World Corporate Services, Saeed
AlQaizi, Director of Group Procurement, Contracts, Statistics and
General Admin, said: “Imdaad has successfully established itself as a key
DUBAI REAL TIMES
S
ungwon OBO, a member of Makateb Holding, the first Office Building
Operator Company in the world, has signed a one-year renewable con-
tract to provide exclusive facilities management (FM) services to Michigan
State University (MSU) Dubai. The company has revealed that it is now finalis-

player in the growing facilities management industry by keeping pace
with advanced technology and services. The company has consistently
met our requirements in the past, and continues to do so.”
The company offers consultations for facility management from
the conception to the completion of projects, transition and operations
and delivers long-term services. Some of the major projects it has
undertaken include Palm Jumeirah, The Gardens, Atlantis, International
City, Jebel Ali Port and Free Zone, Ibn Batuta Mall, Dubai Maritime City
50 and Wasl-DREC
ing a specially developed strategy to optimise the lifecycle of MSU’s facilities.
“Appointing Sungwon OBO to provide exclusive facilities management ser-
vices for its brand new facilities in Dubai International Academic City manifests
a high level of confidence in our expertise and capability to satisfy the univer-
sity’s strict quality standards,” said Eric Raes, CEO of Sungwon OBO.
This pioneering facility management company from South Korea, the Fa-
cilities Management Division of Makateb Holding, delivers a full range of in-
tegrated services, including mechanical and electrical maintenance, cleaning,
security, FM consultancy and energy management.

How will LEED help
to ‘green’ Dubai?
By David Ball
H
H Sheikh Mohammed
bin Rashid Al Maktoum’s
green initiative has made
many companies operat-
ing in Dubai realise the effects their
products are having on the environ-
ment. Adopting a system like LEED,
BREEAM, or Greenstar is one respon-
sible step in the right direction of
positive change. But is this enough?
Most developers have now begun to
implement the LEED system on their
projects, and although this is a sys-
tem that works very well in America
can it be implemented in Dubai?
If we look at the LEED ratings
for existing buildings; one of the
requirements is that a building
must be fully occupied for at least
12 months prior to applying for ac-
creditation. With the unprecedented
number of buildings in Dubai at 50
per cent occupancy or less, it seems
there are very few that would even
be able to apply.
Due to the climate and landscape
in Dubai, water efficiency would also
need to play a much bigger role.
While LEED ratings do address water
conservation, again this is based on
a US standard where water is much
more readily available.
This is not to say that Dubai is not
aware of the problem. Dubai Munic-
ipality is currently developing a new
rating system specifically for the
emirate. Surely though, with access
to many technological advances,
research and resources such as the
Emirates Green Building Council,
developers should be taking the
initiative to start thinking of more
sustainable designs.
At Hydroturf we have been work-
ing on energy-saving solutions for
a number of years. We are the dis-
tributors for many leading, globally
recognised companies and choose
our partners carefully, ensuring that
they share our values.
One such partner is Scofield;
the number one global brand in
concrete colouring and a member
of the US Green Building Council
(USGBC). All Scofield products con-
tribute to LEED credits across many
of the sections including ‘Recycled
Content’, ‘Sustainable Sites’, ‘Indoor
Environmental Quality’, ‘Regional
Materials’ and many more.
Another example is SolarDrive
who manufacture solar panels that
ENVIRONMENT
can be mounted onto the roof of
golf carts. As golf carts are common
in many of Dubai’s hotels, golf clubs
and now even residences such as
the Jumeriah Golf Estates, this sim-
ple energy saving feature can con-
tribute to saving up to 90 per cent
energy over regular golf carts and
reducing CO2 emissions by 100 per
cent.
We are proud to be considered
market leaders and hope that others
will follow our example. Some ten
years ago you could forgive compa-
nies for being ignorant to the plight
of green initiatives, but as scientific
developments are made and edu-
cation is furthered, individual com- generations.
panies should be focusing on what David Ball is the General Manager,
they are doing to benefit our envi- Landscaping Division, Hydroturf
ronment and the prospect of future International
Environmentally friendly floors
A
s Dubai continues to make steps in the direction of change, Hydro-
turf and L.M. Scofield Company introduce environmentally friendly
flooring. The newest product introduced to the Middle Eastern
market is the Scofield formula One Lithium Densifier & Finish Coat System,
making ground and polished concrete floors low VOC, low maintenance
and environmentally friendly.
The new line of liquid densifiers is designed to provide a wide range
of solutions to the processed concrete market, commonly referred to as
grind and polish. Made of a high-quality lithium silicate formulation that
is VOC-compliant and cost-effective, the densifiers prolong the nominal
service life of concrete floors and reduce floor maintenance costs.
The system was engineered to deliver beautiful, durable ground and
polished architectural concrete floors where deeper penetration, in-
DUBAI REAL TIMES
creased surface hardness and faster shine development are desired. It has
many benefits such as increased abrasion resistance, high compressive
strength, rapid shine development, and non-dusting.
The product produces a rapid chemical reaction that penetrates and
densifies the upper layer of the concrete surface much quicker than so-
dium silicate or potassium silicate formulas. It results in a beautiful and
durable surface that is non-toxic and environmentally sound. Once treat-
ed, the surface only requires periodic cleaning with a neutral or alkaline
cleaner and water. 51
 UPDATES // LAWS & REGULATIONS

Q&A
Your questions answered by Jacqueline Latham, DLA Piper Middle East LLP
Q) Units have been sold at our development and we are constantly being
approached by purchasers about the establishment of an Owners Asso-
ciation.  As far as we are aware, the draft regulations to the Strata Law
are yet to be implemented. What is the position?
Q) I am a developer and one of my developments has completed. We have
been providing management services to the development and want to
issue service charge bills to all the owners. However, I have heard that
there is a freeze on service charges. Is this true?

A) It is anticipated that the regulations to Law 27 of 2007 (“Strata Law”) will be
issued in early March and that the regulations will enable an Owners Associa-
tion to be registered with RERA.  It is expected that a developer will have six
months from the date of issuance of the regulations to register the Owners
Association in respect of their development, so once the Strata regulations
are published, you should discuss the implications of them on your business
with your legal advisors.
Q) We currently provide management services in a residential tower and
have heard that the Strata Law regulations are soon to come into effect.  Answers supplied by DLA Piper do not necessarily reflect RERA’s point
Will our business be impacted by these regulations?
A) It is expected that service charges for buildings that have been handed
over will remain at the rates applicable in 2008, unless the 2009 rates are ei-
ther less than the 2008 rates or approved by RERA.  Where service charges for
2009 have already been paid by owners, the sum should be adjusted to re-
flect the service charges approved by the Owners Association once formed. 
Jacqueline Latham is a Legal Consultant (England and Wales qualified),
Real Estate at DLA Piper Middle East LLP, Dubai
of view

A) While Owners Associations will be required to appoint a manager for their

administrative, secretarial and financial affairs, it is understood that the man-
ager will need a licence from RERA to perform these duties.  To obtain the
licence, you would need to demonstrate that you are qualified to manage
an Owners Association, attend any requisite training courses and be appro-
priately insured.

Q) I work as a real estate agent and am being asked about cancellation

DUBAI REAL TIMES

fees in respect of off-plan sales; however I am uncertain of the effect of

the Land Department Circular interpreting Article 11 of Law 13 of 2008? 

A) It is understood that the circular may not be legally enforceable.  As such,

where there is a default under a contract entered into prior to 31 August
2008, the default provisions of the contract apply and where a contract has
been entered into after 31 August 2008, Article 11 of Law 13 of 2008 should
apply and the developer may retain no more than 30 per cent of the monies
paid to date by the purchaser. 53
 // LAWS &
MARKET TRENDS
UPDATES & REGULATIONS
ANALYSIS //

Translation and views supplied by Al Tamimi & Company;

they do not necessarily reflect RERA’s point of view.

H. H. THE RULER’S COURT

GOVERNMENT OF DUBAI

LAW NO. (27) OF 2007

On Ownership of Jointly Owned Properties in the Emirate of Dubai
We, Mohamed bin Rashid Al Maktoum, Ruler of the Emirate of Dubai
Taking cognizance of:–
Federal Law No. 5 of 1985 regarding civil transactions and its amendments;
And Law No. 7 of 2006 regarding property registration in the Emirate of Dubai;
And Regulation No. 3 of 2006 regarding determining designated areas where non-citizens can own
property in the Emirate of Dubai,
Issue the following Law:

CHAPTER ONE
Definitions and General Provisions Law No. (27) of 2007
Article (1)
This Law shall be called “Law No. (27) of 2007 regarding Ownership of Jointly Owned Property in the
Emirate of Dubai”.

Article (2)
The following words and expressions unless the context otherwise dictates shall have the following
meanings:
Emirate: Emirate of Dubai
Department: Land Department
Chairman: Chairman of the Department
Registry: The property registry maintained at the Department
Master Developer: Whoever is licensed to engage in the property development
and sale of Units in the Emirate under the terms of a Master
Community Declaration.
Sub-Developer: Whoever is licensed to engage in the property development
and sale of Units and acquired the right from a Master Devel
oper to develop part of a development project in accordance
with the terms of the Master Community Declaration applying
to that project.
Jointly Owned Property: The whole or part of a building or land, or both, divided into
Units intended for separate ownership where part of such
building or land has been designated as Common Areas.
Unit: Any flat, floor, a part of land or house (villa) connected or not
connected with another house being part of Jointly Owned
DUBAI REAL TIMES

Property.
Common Areas: Those common parts of property designated for common use
by Unit Owners and Occupiers and shown on the Site Plan.
Site Plan: A plan registered in the Register showing the Units and the
Common Areas.
Owner: Whoever is registered as an owner of a Unit in the Register, in
cluding persons with a long term lease or usufruct right for lim
ited period and also the Master Developer or the Sub-Develop
54
 er in regard to unsold Units.
Master Community Declaration: The terms and conditions governing the development and op
eration of Jointly Owned Property.
Building Management Statement: A document complying with relevant regulations and regis
tered on the Register that sets out arrangements
for maintenance and cost sharing relating to Common Areas
and facilities, and including equipment and services in any
part of another building which is subject to this Law.
Owners’ Association: An association constituted in accordance with article 17 of this
Law.
Association Constitution: The rules and regulations that govern the Owners’ Association,
which shall be issued in accordance with this Law.
Occupier: Whoever leases a Unit (other than a long term lease) and any
visitor of a Unit Owner.
Utility Service: Any of the following services: –
water reticulation or supply;
gas reticulation or supply;
electricity supply;
air conditioning;
telephone service;
computer data or television service;
a sewer system;
Law No. (27) of 2007 drainage;
a system for the removal or disposal of garbage or waste;
a system for the delivery of mail, parcels or goods;
any other system or service designed to enhance the Utilities
of Units or Common Areas.

Article (3)
Lands owned by Developers and used as Jointly Owned Properties (and the Units sold by said
Developers) shall be registered with the Department.
Where a Unit in an existing Jointly Owned Property is used by the Owners of another Jointly Owned
Property, the Owners Association for the second Jointly Owned Property becomes a member of the
Owners Association for the first Jointly Owned Property.

Article (4)
The Department shall prepare and maintain special registers for the Jointly Owned Properties and their
Owners and shall issue appropriate title deeds and regulate the sale, mortgage (or any other disposal)
of said Jointly Owned Properties and the registration of long term lease contracts and usufruct rights
related to these Jointly Owned Properties. Access to those registers shall be provided to all interested
parties.

Article (5)
Article (4) of Law No (7) of 2006 concerning property registration in the Emirate of Dubai shall apply to
ownership of Jointly Owned Property.

CHAPTER TWO
Ownership of Jointly Owned Properties
DUBAI REAL TIMES

Article (6)
The Site Plan and the Master Community Declaration and the Association Constitution form part of the
title deed of Jointly Owned Property and shall be attached thereto, and the Department shall keep an
original copy of the Master Community Declaration at all times.
Each Unit Owner has an obligation in favour of other Unit Owners, Occupiers and the Owners’ Association

55
 to comply with the Master Community Declaration and the Association Constitution.
Each Occupier has an obligation in favour of other Unit Owners, Occupiers and the Owners’ Association
to comply with the Master Community Declaration and the Association Constitution, to the extent to
which their provisions apply to an Occupier.

Article (7)
Unless otherwise indicated on the Site Plan, the Common Areas of Jointly Owned Property include,
without limitation:

Structural elements of Jointly Owned Property including the main supports, foundations, columns,
beams, structural walls, steps, ceilings, ceiling joists, hallways, staircases, stairwells, emergency exits,
entrances, windows located on exterior walls, facades and roofs;

Parking areas, watchman rooms, recreational facilities and equipment, swimming pools, gardens, storage
facilities, places designated for use by the Owners’ Association or whomever it assigns or contracts to
manage the Jointly Owned Property;

Main utility equipment and systems including electricity generators, lighting systems, gas systems and
equipment, water systems, heating and cooling systems, air conditioning systems and waste storage
and treatment facilities;

Lifts, tanks, pipes, generators, suction fans, air compressor units, mechanical ventilation systems; Law No. (27) of 2007
Water mains, sewer pipes, ventilation shafts, gas pipes and flues and electrical wiring and conduits
serving more than one Unit;

All fittings, connections, equipment and facilities used by more than one Unit Owner;

Any device for measuring the reticulation or supply of utilities;

All other parts which are not located within the boundaries of a Unit, that are necessary and required for
the existence, maintenance or safety of the property.

2 Unless otherwise indicated on the Site Plan, the Common Areas of Jointly Owned Property
comprising land, other than a building or part of a building, include, without limitation:

a) roads, roundabouts, intersections, pathways, pavement sides, drainage ways curbs, gutters,
median strips, bridges, viaducts,

a) lakes, ponds, canals, promenades, fountains, water features and other waterways, including
all equipment associated with them;

c) Landscaping, open space areas and playgrounds.;

d) wires, cables, pipes, sewers, drains, ducts, devices and equipment by which Units or Com
mon Areas are supplied with Utility Services; and
DUBAI REAL TIMES

e) measuring or Utility Service supply devices designated for common use by the Owners and
Occupiers of the Units.

Article (8)
Unless otherwise indicated on the Site Plan, each Unit situated in a building or part of a building shall
include, without limitation, the following:

Floors, floor materials and components down to the base of the joists and other structures supporting
56
 the floor of the Unit;
Plaster ceilings and all other types of ceilings, additions that form part of the internal area of the Unit and
spaces between the ceilings, ceilings above the support walls and structures inside the Unit and walls
separating the Unit from the rest of the Jointly Owned Property and any adjacent Units or Common Areas;

All non-load bearing walls and non-support walls inside the Unit;

Windows, glass and fixtures that form part of the interior windows, lighting systems for the Unit, doors,
door frames and all equipment and fixtures serving the Unit;

All internal connections serving the Unit;

All fixtures and fittings installed by the Unit Owner or Occupier;

All additions, modifications and improvements made to the Unit from time to time, and for the purpose of
this paragraph the Unit does not include the Utility Service situated in the Unit that services the Common
Areas or another Unit.

Unless otherwise indicated on the Site Plan, each Unit associated with Jointly Owned Property comprising
of land, other than a building or part of a building, shall include, without limitation, everything situated
within the boundaries of the Unit, other than the Utility Service that services the Common Areas or another
Unit.
Each Unit is entitled to appropriate support and shelter from the other Units and the Common Areas.
Law No. (27) of 2007 Dividing walls between adjoining Units shall be shared by both Owners if they are part of the Common
Areas.

Article (9)
Unit Owners and Developers with respect to unsold Units own an undivided share of the Common Areas
in the proportions indicated in the Master Community Declaration unless agreed otherwise.
For the purpose of this paragraph the proportions are to be determined on the basis of the Unit area out
of the total area of the Jointly Owned Property.

CHAPTER THREE
Disposal of Units of Jointly Owned Property
Article (10)
A Unit Owner may sell or dispose of his Unit by any kind of disposal and also is entitled to mortgage his
Unit in favour of a bank or financial institution provided that the disposition conveys the whole of his
interest in the Unit and Common Areas.

Article (11)
A Unit co-owned by two or more persons may not be divided among the co-owners unless the
Department’s approval is obtained.

Article (12)
Each co-owner of a Unit has a right of first refusal to purchase another co-owner’s share in a Unit offered
for sale to a non owner. If more than one co-owner possesses this right, then they shall be entitled to
purchase proportionally to their existing interests.
DUBAI REAL TIMES

The right of first refusal does not apply to any sale between spouses, lineal ascendants, lineal descendants,
brothers or sisters or their descendants.

Article (13)
The right of first refusal cannot be divided, so it cannot be used or abandoned unless in whole, and in case
of multiple owners of this right each shall use his right according to his share, and if one or some of them
abandon his right then this right shall be transferred proportionally to their existing interest.

57
 The right of first refusal shall lapse should the selling co-owner notify the other co-owners, through a
Notary Public, of the name and address of the third party purchaser and the conditions of sale, and the
co-owners fail to agree to said conditions within a period of 1 month after receiving said notice.
In the event a co-owner agrees to buy, he must notify the selling co-owner through the Notary Public
of said intention within 15 days of receiving notice of the sale and complete the sale procedures at the
Department within 10 working days from the end of this period.
If it is proved that the sale to the purchaser was completed on better terms than the terms in the
notification sent to the co-owners; they have the right to claim for compensation for the damage suffered
to them before the competent court.

Article (14)
Jointly Owned Properties registered according to this Law are not subject to the provisions of Preemption
mentioned in the Federal Law No. (5) of 1985 regarding civil transactions.

Article (15)
A Unit Owner may lease his Unit on condition that the Unit Owner and tenant remain obliged to comply
with the Association Constitution and the Master Community Declaration towards the other Unit Owners,
Occupiers and the Owners’ Association.

Article (16)
Under no circumstances can Common Areas be divided. Common Areas may not be disposed of, in
whole or in part, separately from the Units to which they appertain.

CHAPTER FOUR Law No. (27) of 2007

Owners’ Association
Article (17)
An Owners’ Association shall be legally formed upon the registration of the first sale of a Unit in a Jointly
Owned Property in the Register.
The Association shall comprise the Unit Owners of the Jointly Owned Property and the Master or Sub
Developer with respect to unsold Units.
A Unit Owner’s membership in the Association shall commence upon registration as the Owner of the
Unit and shall lapse upon the expiry of his registration as the Owner of the Unit.

Article (18)
The Owners’ Association is a legal entity not for profit and has a separate legal existence from its
members, has the right to sue in this capacity and to own movable assets.
The Owners’ Association shall be subject to the provisions and terms of this Law, the provisions of the
Master Community Declaration and the Association Constitution and shall be represented before the
Courts or other authorities by its Manager.

Article (19)
Each Unit Owner and the Developer with respect to unsold Units have the right to attend and vote
at meetings of the general assembly of the Owners’ Association in accordance with the Association
Constitution.
Each Unit Owner has a number of votes in proportion to his share of ownership in the Jointly Owned
Property as indicated in the Master Community Declaration.
DUBAI REAL TIMES

Article (20)
Each Owners’ Association must mention “Owners Association” in its name, and number and name of the
Jointly Owned Property, if any.

Article (21)
The Owners’ Association is responsible for the management, operation and maintenance of the Common
Areas and for that purpose must obtain an appropriate license from the Department.

58
 The Owners’ Association may delegate all or some of its powers to a person or company it appoints at
such remuneration and on such terms as agreed by the parties.

Article (22)
Each Unit Owner shall pay the Owners’ Association his share of the annual service fee to cover the cost
of management, operation, maintenance and repair of the Common Areas. Such fee must be calculated
in proportion to the Unit area out of the total area of the Jointly Owned Property. The Master or Sub
Developer shall pay his share of the fee with respect to unsold Units.
A Unit Owner may not relinquish his share in the Common Areas in order to avoid paying his share of
the annual service fee.

Article (23)
Save as authorized by the Owners’ Association or permitted by the Master Community Declaration, a
Unit Owner may not make any alterations or modifications to the structure or external appearance of
his Unit or any part of the Jointly Owned Property that would materially affect the Unit or Jointly Owned
Property or its external appearance.
A Unit Owner who contravenes any of the provisions of paragraph (1) shall be liable to repair the resulting
damage at his own expense and in the manner requested by the Owners’ Association. If the Unit Owner
fails to comply with this requirement, the Owners’ Association shall repair the damage and recover the
repair costs from the Owner.

CHAPTER FIVE
Law No. (27) of 2007 Common Areas
Article (24)
Subject to the Association Constitution, Unit Owners and Occupiers and their guests must use the
Common Areas as designated for and in a way that does not compromise the rights of others to use
those areas or disturb others or put their safety or the safety of the Jointly Owned Property at risk.

Article (25)
The Owners’ Association shall have a lien on every Unit for unpaid service fees and any other obligations
levied against the Unit Owner in accordance with the provisions of this Law or the Association
Constitution. This right shall exist even when ownership of the Unit has been transferred to a new
Owner.
If the Unit Owner does not pay his share of service fees or defaults on any of his obligations, the decision
the Manager of the Association takes against the Unit Owner shall be, after three months of being
notified to him through the Notary Public, enforceable by the Execution Judge at any Competent Court,
and in all cases the affected person may object to this decision within that period at the Competent
Court, and the execution must be withheld until a decision in the subject of the objection is made.

CHAPTER SIX
Obligations of The Property Developer
Article (26)
In compliance with the construction contract provisions in Federal Law No. (5) of 1985 regarding civil
transactions the Developer remains liable for 10 years from the date of completion certificate of the
DUBAI REAL TIMES

building to repair and cure any defects in the structural elements of the Jointly Owned Property notified
to him by the Owners’ Association or a Unit Owner.
The Developer, in respect of a development or part of a development undertaken by him, remains
liable for one year from the date of completion certificate of the building to repair or replace defective
installations in the Jointly Owned Property which, for the purpose of this Article, include mechanical
and electrical works, sanitary and plumbing installations and the like.
Subject to the provisions of paragraphs (1) and (2) above, nothing in this Law shall in any way affect

59
 or impair any rights or warranties which a Unit Owner may be entitled to assert against the Master
Developer or the Sub-Developer under any other law.
The provisions of any agreement entered into after this Law takes effect and inconsistent with this Article
shall be absolutely null and void.

Article (27)
If a project involving Jointly Owned Property is to be developed in stages, the Master Community
Declaration must disclose the arrangements for staging the project
If the Jointly Owned Property is only part of any other property project and the Building Management
Statement did not explain the way of managing this building then the Building Management Statement
must be registered at the Register.

CHAPTER SEVEN
Jointly Owned Property Insurance
Article (28)
An Owners’ Association must maintain comprehensive insurance in an amount equal to the repair or
replacement value of the Jointly Owned Property in the event of its destruction for any reason and the
Owners’ Association shall be the beneficiary of the said insurance.

Article (29)
The Owners’ Association shall procure insurance against liability for damage to property or bodily injury
to Owners and Occupiers. Law No. (27) of 2007
Article (30)
The insurance premiums payable by each Unit Owner shall be covered by the annual service fees paid
to the Owners’ Association according to the provisions of Article (22) of this Law.

CHAPTER EIGHT
Closing Provisions
Article (31)
In accordance with Article (18) of this Law, the Owners’ Association may, in its own name and on behalf
of its members, sue others including other Unit Owners, Occupiers and any other person occupying the
Jointly Owned Property for breach of this Law or the Association Constitution.
Article (32)
The Chairman shall issue regulations and decisions required to enforce this Law.
Article (33)
This Law shall be published in the Official Gazette and shall take effect three months from the date of
publication.

Mohamed bin Rashid Al Maktoum

Ruler of Dubai


DUBAI REAL TIMES

Issued in Dubai on: 10 December 2007

Corresponding to: 30 Thu Al Qeada 1428 AH

60
RERA REGISTRATION NO 153