Message from the Director General

Hope, expectation and ejari

Relationships built on hope can founder on expectations while partnerships that come
together to achieve realistic goals tend to be far more lasting. Two recent initiatives in the
Land Department have demonstrated the potential to make the more positive side of
the argument.
First, A Land Department-led initiative to create an Arab world-wide valuation
institute and introduce uniform standards and practice came to fruition. At a closed
meeting at Atlantis, The Palm representatives of the leading valuation authorities in the
GCC, Lebanon, Algeria, Egypt, Morocco and Yemen, agreement was reached on the
constitution of the Arab Appraisal Foundation (AAF), thereby formally establishing the
organisation.
This gives the Arab world a single leading cooperative authority to determine
valuation standards and practices. An authority equivalent in influence to the leading
international institutions such as the US Congress-approved Appraisal Foundation and
the UK’s Royal Institution of Chartered Surveyors (RICS).
The second initiative, the formal full activation of the ejari online registration system
for rental contracts, had equally far reaching but nevertheless achievable goals; the
main one being to provide a formal basis for the relationship between tenant and
landlord in Dubai, thereby avoiding any potential mismatch between two diverse sets of
expectations.
To my mind this is one of the most important measures taken to regulate the rental
strand of Dubai’s real estate sector and align the expectations of various stakeholders.
This measure has profound implications not only for the parties to rental agreements in
Dubai but for the real estate sector as a whole. Its starting point was the provisions of
Law No.26 of 2007 Regulating the Relationship between Tenants and Landlords which
in turn has as its main aim introduction of comprehensive registration of rental contracts
in Dubai. The effect has been to establish that clearly defined and stated non-negotiable
rights and obligations now form the basis for a thorough and rigorous system of
regulation of rental agreements in Dubai. At the same time the effect has been to put
in place the means to regulate the sector as a whole and link this to its interaction with
Dubai’s other government departments.
DUBAI REAL TIMES

I believe this provides the basis for one of the soundest and best regulated rental/
lease sectors anywhere in the world.
Two initiatives at two different levels. The first, international and with particular
application to the Arab world. The second, local and particular to Dubai property rental.
Nevertheless these are two measures that continue to add to the single big achievement
of ensuring Dubai continues to lead the way in property registration and regulation.

Sultan Butti Bin Mijrin

Director General, Land Department
1
 OFFICIAL MAGAZINE
OF REAL ESTATE REGULATORY AGENCY

MANAGING EDITOR
K Raveendran ravi@sterlingp.ae

MANAGING DIRECTOR
Sankaranarayanan sankar@sterlingp.ae

GENERAL MANAGER
Radhika Natu radhika@sterlingp.ae
Message from the CEO
EDITOR
Linda Benbow linda@sterlingp.ae

Contributing Editors
Ambily Vijaykumar
Vanit Sethi
ambily@sterlingp.ae
vanit@sterlingp.ae
AAF step to Arab real estate
Manju Ramanan manju@sterlingp.ae
standardisation
Designer
I was so happy at the gathering we had at Atlantis, The Palm, with the 12 Arab country representatives.
Ujwala Ranade ujwala.art@gmail.com What had started as a small meeting between RERA members sharing a vision of regional reference
in the matter of real estate regulation, become a reality by the commencement of this gathering. Yes,
Sales and Marketing the first step always starts with a dream, and our step started with the support of more than 20 Arab
countries and a commitment from 12 other countries to move forward to the next level.
Account Manager
Rashmi Pai rashmi@sterlingp.ae The launch of Arab Appraisal Foundation (AAF) is one step in the direction of regulating our
regional real estate sector and sharing the valuable knowledge we have among us. The standards
and continuous education that AAF will give to its members will be the torch that will light the
Accounts & Administration professional way to a global standard, and AAF will be the counterpart for international organisations
Biju Varghese biju@sterlingp.ae like WAVO, TEGOVA, RICS and others.

AAF started big with the support of ARADO and many Arab countries, giving us hope that we would
Circulation Supervisor gain the fruits of their members’ knowledge quickly. Sharing knowledge of the systems implemented
in countries like Jordan, Egypt and UAE will benefit professionals in all Arab countries. Practising
Ibrahim A. Hameed valuation within the Arab world, based on shared approved standards, will make the results of
valuation and decision making better, which will result in enhancing the real estate market in the Arab
world.

Changing into better sectors, following ‘best practices’, and useful information sharing, will make our
Printing societies better, bringing advancement in all fields of real estate.
Asiatic Printing Press L.L.C., PB 3522,
Ajman, UAE. Tel. 06 743 4221,
www.asiaticpress.com, Eng. Marwan Bin Ghulaita
email: asiatic@eim.ae
Distribution: Tawseel PB No 500666
Dubai, UAE. Tel: (+971 4) 342 1512
Sultanate of Oman: Al-Atta’a
Distribution Est., Kuwait: The Kuwaiti
Group for Publishing & Distribution
Co.Bahrain: Al Hilal Corporation,
Qatar: Dar Al-Thaqafah, Saudi Arabia:
Saudi Distribution Company Sterling Publications FZ LLC Loft Office 2, G 01, Dubai Media City
P.O. Box 500595, Dubai, UAE. Tel. +971 4 3678061 + 971 4 367 2245, Fax +971 4 367 8613
Website: www.sterlingp.ae Email: info@sterlingp.ae
Overseas offices: India: Anand Vardhan, DII/89,
RERA neither takes Pandara Road, New Delhi, 110003. Tel: 0091 1 26517981
responsibility nor accredits any Bahrain: Sunliz Publications W.L.L, PO BOX 2114, Manama,
studies, research or statistics Kingdom of Bahrain. Tel: 00973 17276682
that are not issued by it.
CONTENTS
4 Cover Story
Arab Appraisal Foundation 6 Ejari
Online rentals
8 Licenses
Licensed professionals
9 Bulletin Board
Visitors
12 Perfume
Designer perfume
13 Personality
Mahmoud Seddeqi
14 Statistics
February figures

16 Project of the Month

30 Infrastructure
Ocean Heights
Electricity connection

25 Profile
Someone to trust
17 MTA
Predictions for 2010

22 Financial Roundup
A little profit

26 Comments
Good developers 31 Events
Size matters Electrical projects
Future trends
DUBAI REAL TIMES

3
 COVER STORY
Pan-Arab property valuation
Foundation receives official approval
Land Department President leads a 12-country summit to an agreement on the
constitution of an umbrella standards-setting organisation
A
Land Department-led
initiative to create an
Arab worldwide valuation
institute and introduce
uniform standards and practices
came to fruition recently at a closed
meeting of the profession’s leaders
in Dubai. HH Sheikh Mohammed
bin Khalifa Al Maktoum, President of
DUBAI REAL TIMES
4 bin Khalifa Al Maktoum, President of
the Land Department, presided at a
one-day summit held at Atlantis, The
Palm, to formally establish the Arab
Appraisal Foundation (AAF) and
agree on its constitution.
The initiative is the result of
sustained cooperation between
the Land Department and the
Arab League-sponsored Arab
Administrative Development
Organisation. Sultan bin Butti bin
Mejren, Director General of the Land
Department, formally presented the
constitution of the new organisation,
which is intended to have a role
which will see it become the Arab
world’s equivalent of influential
international institutions such as the
US Congress-approved Appraisal
Foundation and the UK’s Royal
Institution of Chartered Surveyors
(RICS). In fact, these two standard-
setters with the World Association
of Valuation Organisations and their
equivalents in Europe and Singapore
provided crucial input into the AAF,
which was first announced during a
three-day Arab League-backed real
estate summit in Dubai in November
2009.
Leading up to the event, the
Land Department, RERA, and the
Appraisal Foundation were the main
movers pushing for the AAF. At that
conference, The Second Arab Real
Estate and Urban Development
Conference, Mr. Bin Butti hailed:
“The Arab World’s commitment
to cooperation and to integrating
standards and practices.”
He added: “The Arab Appraisal
Foundation can take valuations
standards-setting to the highest
professional level and by doing so
(from left to right) Sultan bin Butti bin
Mejren, Director General of the Land
Department , HH Sheikh Mohammed
the Land Department, and Rifhat Al
Faouri, the AADO’s Director General
underpin the integrity of real estate
markets, further opening these up to
international investment. The launch
of the AAF is a genuine milestone
in the integration of Arab national
real estate markets and international
capital markets, a regional trend
pioneered by Dubai.”
The summit gave the final seal
of approval to the foundation’s
constitution first mooted during
that earlier meeting. Effectively, it
has been shown the green light to
develop and set the professional
standards for real estate practitioners
and encourage integration and the
spread of common practices across
the Arab world’s real estate sector.
Mr Bin Mejren highlighted
the importance of the initiative
in opening the door to pan-Arab
economic and commercial activity in
the real estate sector. Recommending
acceptance of the final proposals for
the AAF to the leaders of his peer
organisations from across the Arab
world, including 16 representatives
from the GCC, Lebanon, Algeria,
Egypt, Morocco and Yemen, he said:
“The AAF represents progress and
opportunity for the Arab world.”
The delegates responded
positively, and in a final closed
session chaired by Marwan bin
A one-day summit to formally establish the Arab Appraisal Foundation and agree its constitution was held recently
Ghulaita, Chief Executive Officer
of the Real Estate Regulatory
Agency, they officially accepted
the Director General’s proposals
and ratified the AAF’s constitution,
formally bringing the new agency
into being. Mr Bin Mejren said:
“This is an example of what can
be achieved through cooperation
and marks a huge step forward
for integration of standards across
the Arab World and the extension
of best international practice.
This initiative will strengthen ties
and encourage greater economic
cooperation. Its importance to
the further development of a pan-
Arab economic bloc cannot be
exaggerated.”
There was an enthusiastic
response from the delegates who
travelled to Dubai for the summit
and they particularly welcomed
the contribution of the Arab deal of work to be done if it is to stressed.
Administrative Development achieve its objective. Nevertheless, Mr. Bin Ghulaita said: “The AAF
Organisation (AADO). Rifhat Al I am confident that today we have will help professionalise the real
Faouri, the AADO’s Director- taken the first steps which will prove estate sector in Arab countries
General, said: “I am proud of of huge benefit for the Arab world’s which will mean all stakeholders
what has been achieved and to real estate sector.” can participate with confidence in
be associated with this initiative “This can only be good for the the people and practices involved
which has the potential to change sector as a whole, for investors, in their transactions and that those
so much. Yet this is only the and - perhaps most importantly from outside can engage with it
beginning. The Foundation has a of all - for the economic and social in the knowledge that common
big task ahead and there is a great development of the Arab world,” he practices apply.”
DUBAI REAL TIMES
5
 EJARI
Online registration rule for lease
contracts
Ejari e-registration transforms regulation of rental market
T
he Real Estate Regulatory
Agency (RERA) announced
that from March 13, all
rental/lease contracts for
Dubai properties must be registered
through its new Ejari online portal.
The announcement makes effective
the provisions of Law No.26 of
2007 Regulating the Relationship
between Tenants and Landlords in
Dubai and requires all individuals
and companies acting as landlords
to register tenancy agreements.
Landlords and tenants who fail to
comply with the new ruling will find
that their tenancy agreements fall
outside the protection offered by
the law and government agencies
and will not be able to enforce the
provisions of the agreements they
enter into. The law clearly states:
‘Judicial bodies and governmental
departments and authorities
should not consider any claim,
case or execution based on a
tenancy contract unless the same is
registered with the Agency.’
Announcing the new ruling and
the full activation of Ejari, its state-
of-the-art online registration system,
DUBAI REAL TIMES
RERA formally called on everyone
involved in drawing up and entering
into such contracts to ensure full
compliance and avoid violation.
Mohammed bin Hammad,
Director of the Real Estate Relations
Regulatory Department in RERA,
said: “We have launched the Ejari
6 electronic registration web service
to meet the requirements of the
Mohammed Bin Hammad
law and RERA’s vision and mission to
establish a robust regulatory system
for the rental market and protect the
rights of everyone involved.”
“Today’s announcement puts in
place a key mechanism which will
go a long way towards stamping
out violations and malpractice in the
rental sector.” He explained. “The
aim is to ensure all lease contracts,
and the parties to such agreements,
are registered and the details
recorded. This will lead to the Dubai
rental market becoming one of the
most transparent and accountable
anywhere and, at the end of the day,
one of the best regulated.”
He continued: “Registration
through Ejari offers full protection
of their rights to all parties with
tenancy agreement. It ensures these
rights are recognised, upheld, and
enforced by all government agencies.
It establishes full transparency
between landlord and tenant, fully
integrates rental contracts into the
legal framework and opens up the
possibility of being able to revise
these contracts seamlessly in the
event of disputes.
At a different level, full
implementation of Ejari registration
will enable the authorities to
construct a full and accurate picture
of Dubai’s rental market which will
play a crucial role in its planning
for the future of the sector and its
ability to influence such factors as
the supply side of the market, and
ultimately, the level of prices.”
RERA has endeavoured to make
Ejari e-registration of lease/rental
agreements as easy and accessible
as possible and Bin Hammad said:
“Individuals and companies should
have no difficulty in using the
system.”
Registration through Ejari is
a simple process requiring little
technical knowledge and only the
basic details of agreements are
entered. These include information
such as details of the property,
the name of the rental company,
and terms of the agreement. Once
the agreement is entered into the
system and registered, it is allocated
a unique barcode which acts as its
reference throughout the life of the
contract. RERA will keep its own
record of the agreement and update
changes to the register as these
occur.
The Ejari system provides a
full portfolio of services beyond
registering the initial lease
agreement. Renewals, cancellations,
transfers and terminations can all be
logged.
Bin Hammad said: “Ejari will
ensure rental agreements are fair and
transparent to the parties involved
and that their terms and conditions
are given full weight. Today’s launch
has moved us closer to the stage
where we have one of the best
regulated rental markets in the world
and best practice is the norm across
Dubai’s rental sector. Landlords and
tenants should consult the website
www.ejari.ae”
Landlord and tenant
relationship
The RERA website www.rpdubai.com
has information on the topic of rent,
concerning both landlord and tenant.
Read the ‘frequently asked questions’
section to find out about basic rules.
What is Law No 26?
The relationship between the tenant
and landlord has been regulated
by issuing Law No 26, 2007 by the
ruler of Dubai his highness Sheikh
Mohammad bin Rashid. The
related law was formed in Dubai on
November 26, 2007 and executed by
RERA.
What should be covered under
Tenancy Agreement?
The landlord and tenant relationship
is composed after signing a writing
tenancy agreement which should
cover the following:
• the unit description
• the purpose of agreement
• the owner name
• land registration number and
location
• Duration and the rent allowance.
If duration is unspecified in the
agreement it shall not exceed the
time on which the lessee was paying
his rent. When any party has an
intention not to renew the tenancy
agreement, the party intended to do
the same should send 90 days notice
to the other party prior to the expiry
of the rental agreement.
What is the role of committee in
case of disputes ?
In case of dispute and the arbitrator
is unable to do his job, or refused, and
landlord and lessee failed to assign a
new arbitrator, the committee should
assign, on the request of any of them,
arbitrators to continue the arbitration
process.
• The decision made by the
committee to be executed in
Dubai court.
RERA is responsible for forming
all decree and regulations to
execute this law and producing to
the Executive Board for approval.
Note to landlords - Landlords in
Dubai need to be aware that RERA
is now regulating the relationship
between Landlords and Tenants.
Law No. (26) of 2007 is applicable
to leased properties in the Emirate
excluding free accommodation
provided by natural persons or
judicial persons to their employees.
The tenancy must be governed
by a written tenancy contract
agreement with all the relevant
information . and must be registered
in RERA by Law otherwise, neither
party may assert a claim if a dispute
should arise. The Law is fair to both
the Landlord and the Tenant and
should be read by both parties
as both are legally bound by the
Law. The Law defines the scope of
implementation of the Law and also
details chapter articles relating to’.
Note to tenants - Tenants needs
to be fully aware that the property
is the asset of an owner, and the
tenant has no right to alter, damage,
change the interior or exterior of the
property without express written
permission form the owner.
The property shall be left in the
same condition as is handed over to
the tenant. This shall be monitored
by a documented report called the
‘Entry Condition Report’ which shall
serve as a protection to the tenant
against the claim of a landlord for
damage or condition of a property
which was present before the
tenant’s occupation. Both parties
must sign this. Who pays for exactly
what i.e. repairs, maintenance, etc
shall be stipulated in the tenancy
contract, and both parties are bound
by this agreement.
Upon leaving the property, an
‘Exit Condition Report’ is completed
by the Tenant and Landlord (or
Landlord’s Agent) and both reports
must match. It is a good idea to
take some photographs of any
damage which you are concerned
about to ensure you are not blamed
for damage, have the Landlord
or Landlord’s Agent sign these
immediately to protect yourself.
Providing a Tenant has paid the
rent, is not breaking any Laws, and
using the property for which it is an
‘approved use’ by municipality, then
one should expect peace and quiet
enjoyment in your home.
Common and community
property rules for tenants
Do be aware in hi-rise buildings
in Dubai, the rules for Tenants
occupying and residing in multi-
unit dwelling complexes are very
straightforward. The Landlord or
Landlord’s agent should provide
you with a copy of the rules for the
building.
Most of these rules are set by the
Master Developer of each area and
are out in place to ensure harmonious
living for residents, occupants and
tenants. Acceptable behaviour,
courtesy and respect are paramount.
For example, in many instances
you will not be able to hang your
washing out of a window or over
a balcony as this detracts from the
DUBAI REAL TIMES
local area and becomes ‘unsightly’. If
everyone did it, the building would
develop a poor image. Excessive
noise, and lack of consideration of
others, is often the cause of disputes.
Therefore, newcomers to Dubai,
should be aware that respect of the
local culture is one of the reasons
that over 180 different nationalities
currently live in harmony, Dubai likes
7
to keep it that way.
 LICENSES

Licensed professionals
• Dubai 2009 property business permit numbers soar to 6,871 licences as RERA
reclassifies sector's key activities.
• Professional real estate industry now a reality, says licensing official.

L
ast year RERA issued 6,871 pressing for and winning approval proposition. office of an international
licences to companies from the Ministry of Labour to have We have been convinced property company, Organising
and individuals property exhibitions,
authorising them • Organising property auctions,
to undertake commercial The five basic • Property inspection services,
activities in the property • Managing and supervising
sector. This announcement, categories of Owners Associations,
which follows the property-related • Property administration and
agency’s comprehensive
reworking of the licensing
commercial activities supervisory services,
• Managing timeshare property,
classification and have been extended • Brokerage leasing timeshare,
qualifications it inherited to 19. RERA has • Mortgage brokerage,
from the Department of • Property training institutes,
Economic Development linked registration • Valuation services,
(DED), indicates there was to qualifications • Property consultancy,
a surge in activity in the
and effectively • Mortgage consultancy.
sector last year. Mr Al Hashemi added:
The five basic categories outlawed unqualified “Classification and registration have
of property-related and unregistered raised standards across the sector
commercial activities and ensured professionals are
previously recognised practitioners from qualified to carry on their activities
by the sector have been carrying out work in and are properly accountable to
extended to 19 as RERA
rigorously pursues its
the sector. their clients, as are developers. Each
is clearly listed in specific categories
policy of professionalising Yusuf Al Hashemi of activities and registered as
the sector. It has linked having the necessary qualifications
registration to qualifications and property professions recognised on throughout that the best way to to carry out his task as a member of
effectively outlawed unqualified visas and labour cards. achieve effective regulation is to a professional body.
and unregistered practitioners from Yusuf Al Hashemi, Head of RERA’s create a professional sector wedded Companies and individuals
carrying out work in the sector. Licensing Department, said: “RERA to best international practice. We licensed to work in the real estate
Brokers for example, one of the has carried out a complete and are heading in the right direction sector in Dubai are also registered
key players in the sector, have faced comprehensive review of property and moving ever closer towards our with RERA where their details
possibly the strictest clampdown activity in Dubai. We have reclassified goal.” can be checked just by going
with their activities clearly stated each of them and defined the The 19 real estate business to our rpdubai.com website. We
and their registration to operate specialists who will carry them out activities classification issued by have reached this stage through
now conditional on being properly and in the process, we have divided RERA and which has replaced the discussion and cooperation with
qualified and meeting the requisite some of the categories which were five previously recognised include the DED. We have both put a
criteria laid down by RERA to be previously combined. the following: considerable amount of time and
• Property development,
DUBAI REAL TIMES

included in one of its colour-coded Our overriding concern has effort into revising the system to
zone of operation categories. been to clearly establish the rights • Renting out and administering make sure the end result is right for
The plus side is that investors, and responsibilities attached to property interests on behalf of the market.”
buyers, sellers and the rental sector each property professional. This others, He concluded: “The professional
can be confident that in RERA creates clarity for their customers • Renting out and administering practices that are emerging as
registered practitioners, they are and provides a solid basis for trust. property interest on your own standard across the sector is a
dealing with properly qualified The fact RERA approved almost behalf, profoundly positive step for real
professionals who can give them the 7,000 licence applications last • Buying and selling land and estate activity in the emirate and
best advice. There are advantages year demonstrates the real estate property, ensures that what we offer here in
8 for the practitioners too, with RERA professions have bought into the • Rental brokerage, representative Dubai is among the best available.”

Finalisation of three regulations
RERA has finalised the implementing regulations for Law No. 27 of 2007
R
ERA has finalised three
regulations necessary to
clarify the relationship
between the property
owners and developers under
Law No. 27 of 2007 Concerning
Jointly Owned Properties in the
Emirate of Dubai (‘JOP Law’). The
regulations will also define the
responsibilities and duties of owner
associations in managing the
jointly owned property scheme
to ensure the continuity of quality
property management through
regular services and foster a spirit of
harmony and goodwill between the
owners and occupants.
The regulations, which are
expected to be released soon, will
also require developers to prepare
the documentation necessary to
register owners associations and will
encourage transparency in service
charges and service provision.
The three regulations include:
• Jointly Owned Property
Declaration Regulation (JOPD
Regulation)
The JOPD Regulation specifies
the information which must
be included in a jointly owned
property declaration. For example,
entitlements of each of the units
in the jointly owned property, the
community rules and a site plan
of the common areas of the jointly
owned property.
• General Regulation:
The General Regulation defines the
responsibilities and duties of the
developers in relation to the creation
of jointly owned property schemes
including the responsibilities of
the developer before and after
initial registration of the owners’
association, the requirements of
building management statements,
and a number of consumer
protection provisions which
require developers to give detailed
disclosure documentation in
relation to the project and the unit
to prospective purchasers.
• Association Constitution
The Association Constitution is
intended to detail the rights and
responsibilities of every Owners’
Association in Dubai. It is a standard
document and may not be varied
by a developer or by an Owners’
Association. It also provides the
functions and powers of the owners’
association.
Among other things, the
Association Constitution gives
further details in relation to the
association’s powers and obligations
to:
• Enter into contracts with
maintenance companies and
licensed service providers;
• Obtain insurance for common
areas; and
• Collect and recover service
charges from the owners of
units.
It also defines the process for
nominating and electing the Board
of the association and appointing
specialised management companies
approved by RERA to assist the
association in performing its
functions..
Once the regulations come into
force, RERA will begin registering
Owners Associations and will take
appropriate steps to ensure that
developers comply with the JOP
Law and its regulations.
RERA approves service
charge fees for 51 real
estate projects
RERA began to study the system
of imposing fees and services for
jointly owned properties through
access to best practice for services
and maintenance charge fees
model. It compared standard
regulations, laws governing the
global ways of calculating the fees
for services and maintenance in the
region; in addition to sending an
official delegation to observe best
practices in Singapore and visiting
governmental bodies, regulatory
bodies, real estate development
companies and associations. It
visited residential and commercial
complexes and met experts in
service charges and maintenance
assessment and assessed the best
methods and systems for calculating
the fees.
In another step, RERA studied
internal practices of master
developers and sub-developers in
the emirate in relation to calculating
fees for services and maintenance,
and conducted interviews with
professional companies in the
market. It also visited project sites
and conducted field studies of both
the building and the main project.
Through applications submitted
by developers and owners
for approval of services and
maintenance charges, the Owners’
Associations section received the
applications, examined and studied
the lists of services and maintenance
and their fees as well as carrying out
field visits of the projects.
RERA has approved fees and
services for 51 real estate projects of
jointly owned properties.
RERA establishes 30
Owners Association
RERA carried out field visits to the
premises of joint owned properties
BULLETIN BOARD
in freehold areas in coordination
with the developers and conducted
comprehensive meetings with the
owners of the projects clarifying
their rights, duties and obligations
to be met by the developer, and
his disclosure of all financial and
management matters concerning
the operation of the project during
the period of management by
the developer as well as provide
details of all work carried out with
the Master Developer. They must
provided accurate statements and
assist the new Board of Directors of
the Owners Associations to oversee
and manage their own property,
providing support and assistance to
them if asked.
RERA will always provide support
to them by the RERA Owners
Association section which so far
has established thirty (30) Owners
Associations. RERA also supports
developers and encourages them to
form an interim owners association
so as to be involved in managing
and preparing the budget.
Land Department signs
registration accord
with Malta
Director General hails first step in a
series of international partnerships
DUBAI REAL TIMES
9
 The Land Department has signed
a bilateral technical accord with
the Government Property Division,
within the Parliamentary Secretariat
for Revenues and Land in Malta. The
agreement puts in place a formal
channel for the two partners to
share knowledge and expertise.
The 12-month rolling agreement is
the first in a series of international
partnerships planned by the Land
Be next
The CEO of RERA has honoured
the following employees for their
achievements
Ishtar Jasem for doing the news
archive (for 2007-2009 )
Rasheed Suleiman for his
distinguished performance at
work    stage which will support the new
Khawla Alawadi for organizing
the meeting for the Arabic
appraisal association
DUBAI REAL TIMES
10
Department which will result in
it becoming formally associated
with the leading land registries and
cadastres.
HE Sultan bin Butti bin Mejren,
the Director General, signed the
agreement on behalf of the Land
Department and HE The Hon. Dr.
Jason Azzopardi, the Minister for
Revenues and Land, signed the
agreement on behalf of Malta, which
was also represented by HE Anthony
Tabone, the Consul-General for
Malta in Dubai.
The agreement will see the two
countries consult across the full
range of real estate issues particularly
the technical aspects of property
registration and regulation.
Online registration
The Land Department has introduced
its ‘next generation’ services which
includes a same-day on-the-spot
registration procedure. The move
allows property transactions to be
completed securely and promptly
online faster than anywhere else in
the rest of the world.
Sultan Bin Butti Bin Mejren,
Director General of the Land
Department said, “Today has
seen the immediate activation of
the technological infrastructure
advanced services and electronically
integrate processes as diverse as
registration, pre-registration, escrow
accounts and a state-of-the-art
e-services system.”
Mr. Khalifa Al Suwaidi, IT Director
at the Land Department said: “
The benefits to owners, investors
and end-users, in particular, will
be substantial and result in quick,
simple seamless transfer through all
stages of the immediate and related
procedures conferring title while
reinforcing top-to-tail regulation
and protection.”
An abundance of
creative ideas
Juma bin Humaidan, Deputy Director
General of Land Department,
accompanied by Mohammad Sultan
Thani, Assistant Director-General of
Land Department honoured twelve
staff in the department who had
come up with innovative ideas, all of
which have been implemented, on
a number of aspects of the internal
workings of the department. So
far a total of 112 creative ideas have
been suggested in the scheme
which was launched several
months ago. Suggestions have
Majida Ali Rashid congratulates three departmental staff from Strategy and
Institutional Development
been received to improve systems
with the aim of fostering a positive
work environment that helps staff
creativity and innovation; thereby
explaining the slogan ‘There is no
ceiling for creativity’.
Juma bin Humaidan said, “The
principle that staff are encouraged
to participate in the development
and continuous improvement
of performance and services
creates a favourable environment
for innovation. This ensures the
achievement of organisational
excellence, and promotes a culture
of continuous development
through genuine participation of
the staff, who feel that he is part of
the success.”
Against the backdrop of three
of her staff having winning ideas,
Majida Ali Rashid, Senior Manager
of Strategy and Institutional
Development said that if a staff
member felt the satisfaction and
sense of belonging in his career
he would be induced to excel,
particularly as he watched his
ideas turn into reality, and recorded
his name on the ‘wall of creators’
which the department has started
to fill with the suggestions already
submitted..
According to Majid Al Hosni Sun
whose name is on the wall of the
creativity: “Seeing my name on the
wall is a large incentive, greater than
any financial reward. It is sufficient
to know that my ideas are being
used.”
He said that “The discretion of
senior management has prompted
me to offer more ideas, and it takes a
strong motive to put forward more
ideas.”
He added that he is keen to
preserve the intellectual property
rights of staff.
Customer service
Recently, Land Department has
received a number of government
delegations who wished to witness
and have work experience in the
Customer Service Department.
Groups varied from the Ministry of
Works, to a delegation from Roads
and Transport Authority in Dubai.
Delegations reviewed the
practices and learned that it is most
important to provide full information
and assistance to customers
to expedite the completion
of transactions. Methods and
procedures were explained as well
as the psychological aspect of
dealing with clients. Treat customers
‘as if you were in your home’ is a
slogan that DLD works to; as they
treat them with kind attention and
a professional manner.
Since the establishment of
the Customer Care Department
Service, there have been a number
of initiatives such as the ‘Watch
yourself’ campaign where an
employee could watch a recording
of himself in a particular situation,
and make his own suggestions as
to how he could improve. Another
campaign was the idea of a personal
assistant accompanying a client
from the moment of entering the
building until he completed his
business.
Land Department received
the Dubai Award for Excellence in
Government to customer satisfaction
Dubai Bank - From left to right - A senior representative of DLD; Marwan bin Ghalaita, CEO of Rera; Sultan bin Mejren,
Director General of Dubai Land Department; Mohammed Amiri, Head of Retail Banking at Dubai Bank; Tariq Al Farsi, Head
of Branches, Dubai Bank; and Masoud Alansari, Government Zone Branches Manager, Dubai Bank
starting from 2004 to 2006, as it has Banking, Dubai Bank, said, “Currently, their personal finances.”
developed many of the leading companies in the UAE with 25 Sultan Butti bin Mejren,
attributes in the area of customer employees or more can avail of Director General of the Dubai
service such as PDA, in addition to Dubai Bank’s Payroll Account, which Land Department. “For our payroll
the Customer Information Centre, offers special benefits and services requirements, we wanted to sign up
which takes care of the needs of its to their employees. However, in with a bank that fully understands
clients from the first moment they line with the bank’s innovative the needs of our employees. As
enter the building. product strategy, we have offered a bank with strong fundamentals
Aisha Mansouri Corporate LD employees a unique bouquet of and a keen eye for innovation and
Excellence Department, Ministry of services and privileges to serve their customer service, we are confident
Works stated that “the experience needs which we believe they will that Dubai Bank will meet all
of the Land Department in the area find extremely useful in planning expectations.”
of customer service experience has
led to huge innovative initiatives
which have made the department
special.”
Dubai Bank offers
custom-made
payroll packages
In another demonstration of its
high-value offering to both retail
and corporate customers, Dubai
Bank has announced its tie-up with
the Land Department (LD) to offer
DUBAI REAL TIMES
custom-made payroll packages
for its employees. As part of the
agreement, Dubai Bank will provide
them with special benefits on asset-
based financing products, including
personal and motor financing. The
bank will also offer special packages
Sultan Butti bin Mejren, Director General of Land Department held an open
for property Ijarah and covered
meeting with his team, congratulating them on their achievements over the past
cards. year. He stated his gratitude to the staff for their outstanding efforts in achieving
Mohamed Amiri, Head of Retail the goals and objectives of the Department.
11
 GOLDEN JUBILEE

Land Department’s designer perfume

Land Department is celebrating its 50th birthday this year with the launch of an
attar (perfume) of its very own

A
s part of its visit to our offices.
50th birthday It is composed
celebrations, the of a mixture of
Land Department aromatics, a mixture
has unveiled its own of old and new
perfume called Attar Al sensory fragrances.
Ardh (meaning ‘Scent of the This circle of
Land’). thought and senses
“The perfume was corresponds to the
launched to coincide with circle of work we
50 years of existence of do from reservation
the department,” said to registration, from
Mohammed Sultan Thani, old methods around
Assistant Director-General at to new methods
Land Department in Dubai. of dealing with the
“We have been working on evolution of the real Majida Ali Rashid
Mohammed Sultan Thani
this unconventional idea for estate sector.” is to increase input into the Human
almost a year now and finally we been incurred. It is about having our “This aroma is for one of the five Resources area of encouraging our
created a distinct fragrance for us,” own perfume brand. It has just been senses, the others are taken care employees to attain the highest
he said. distributed to our employees. As of of in our offices covered by the level of best practices, so that
Although he did not disclose now, we don’t have plans to sell it in reception and service we provide to our customers, the reason for this
the cost of creating the perfume, the market.” all customers,” he added. Department being set up, will
Thani said: “The idea is not to trade The Assistant Director General Thani said the department is also benefit from top notch service in
in the market to make money. The said: “We hope that when a client looking at different ways on how to any of the sections that they visit.”
issue is not about the cost that has smells this perfume he will recall his circulate the fragrance across every She explained, “We are serious
corner of the in developing institutional
d e p a r t m e nt ’s performance, which enhances the
building. capacity of workers to apply the
T h e concepts of modern management
fragrance has and advanced customer service.
been created Plans have been put into place to
with the help help them achieve satisfaction,
of Um Khalifa, a resource development, simplification
local perfume- of procedures, documentation
DUBAI REAL TIMES

maker, he systems, and promote a spirit of

added. creativity.”
M a g d a She added that “This fragrance
Said Ali Rashid, launch by Land Department
Senior Manager exemplifies the idea of simplicity.
of Strategy and However, another part of the
I n s t i t u t i o n a l equation is the complexity of a
D e v e l o p m e nt government institution which
said, “Our plan simply carries out its duties.”
12 for 2009-2011
 PERSONALITY

A measure of his success

M
ahmoud Seddeqi
is a familiar sight
at the Land
Department
offices as he visits the familiar
atmosphere plus friends and
colleagues he has worked with
for over 40 years.
“I came to Dubai as a
young man of 24, having been
recruited in my homeland
of Karachi, Pakistan, to work
for Dubai Municipality” he
explains. “I had a job to go to,
a new home to introduce to my
wife and two daughters. That
was 42 years ago. We all settled
down happily and have loved
the place since then.”
Just one month after
working for Dubai Municipality,
Mahmoud was transferred to the
Land Department office, near the
Municipality building at Dubai Creek,
and worked there as a surveyor for
40 years until he retired in March
2008.
“I am a surveyor;
my job was
to survey
land, and the
buildings on
it. Later I was
promoted to
Deputy Head
of the Survey
boundaries with string and pegs,
as is still practised today. He drew
sketches and diagrams showing
location, size and other relevant
information for official approval
by the director, signed by the local
committee, and then a site plan
was issued to the “Even though Dubai was smaller
owner. The title in the 1960s and 1970s, there was still
deed was signed by too much work for us to do because
the ruling Sheikh, there were only a few surveyors
the Chairman of employed, and the department was
Land Department, much smaller. Sometimes, we had
the late Sheikh to work in the evenings as well as
M a k t o u m the daytime.”
bin Rashid Al Mahmoud has seen the many
Maktoum. changes that have occurred in the
In the real estate sector here. “Where
beginning the job there was water before, there are
of measuring was now buildings,” he comments in
often supervised wonderment. “I have seen many
by accompanying changes. I have worked for three
co mmi t te e Director Generals of the Land
members and Department.”
inspectors – there “In the old days, there were
were inspectors no ladies working here. Land
for Deira side and Department was the last government
inspectors for the Bur Dubai side. authority to hire women. But now,
Measuring tape, theodalyite and there is a new generation that has
other tools for the job used then are started working and there is a need
still used today. Figures were written for more employees to do all the
down in feet and inches, being extra work, whether they are men or
converted to metres by those that women does not matter, as long as
preferred it. they can do the job.”
DUBAI REAL TIMES

Section.”
Mahmoud
was the man
who went out
and measured
plots of land
owned by
UAE nationals,
measuring and
marking the
13
 STATISTICS
February figures
Arabian Ranches tops region in terms of the number of transactions
Deals worth Dh1,128.67 billion carried out in Dubai
T
he last week of February saw
Dh1,128.67 billion worth of
transactions taking place in
Dubai, of which more than
Dh429.36 million was tied up with
mortgages for land and real estate
totalling $395.32. This information is
part of the weekly report of actions
issued by the Land Department.
The last day of the month
witnessed a record 49 transactions
to the value of Dh21.21 million on
the Palm Jumeirah, and Dh15 million
in Al Quoz, plus Dh15 million in the
Al Nasser area.
Arabian Ranches recorded nine
mortgages for Dh28.85 million; Dubai
Sports City had nine mortgages
valued at Dh30.29 million, and the
Palm Jumeirah had five mortgages
for Dh45.23 million, with Emirates
Hills Third recording four mortgages
valued at Dh7.55 million.
Dubai Industrial City had an area
of 34.81 thousand square feet sold
for Dh5.01 million.
Palm Jumeirah had 15.28
thousand square feet which sold for
Lands (Marsa Dubai) Sales Transactions
DUBAI REAL TIMES
Units (Marsa Dubai) Sales Transactions
Villa (Marsa Dubai) Sales Transactions
14
Dh6.46 million, and 14.86 thousand
square feet in Al Qusais Industrial
Fifth sold for Dh12 million.
The last week of the month
saw a record 124 transactions take
place with a total value of Dh302.53
million. The most important piece
of land was in Ramoul, recording an
amount of Dh62 million, and another
was in Al Mamzar at a price of Dh40
million.
In terms of freehold villas and
apartments, 381 villas and 363
apartments have been registered
with a total price of Dh572.76
million. Of these, 18 villas have
The last day of February saw 49 transactions to the value of Dh21.21 million take
been mortgaged to a value of place on Palm Jumeirah
Dh32.72 million, and 70 apartments
have been mortgaged to a value of
Dh92.79 million. 18 villa
mortgages
• 18 villa mortgages Dh32.72 million 293 villa and
• 70 apartment mortgages Dh92.79 million apartments -
• 293 villas and apartments -
70 apartment
mortgages other financing
other financing Dh447.25 million
• 381 villas and apartments Dh572.76 million TOTAL
 Index of Rental values in the Emirate of Dubai - Issue date (01/01/2010)
Residential Units Free Hold (Apartments)
The rental value of residential apartments - Per Thousands
Area Studio One Bedroom Two Bedroom Three Bedroom Four Bedroom
From To Avg From To Avg From To Avg From To Avg From To Avg

Dubai 45 60 52.5 70 110 90 80 160 120 140 200170 200 240 220
Marina

Dubai Marina District Investors ( 2009 )

Flat Investors ( Dubai Marina ) Top 10
The Total No. of Flat Investors in Dubai Marina District in 2009 was 3499 invertors.

Country No. of %
British 749 21
Iran 381 11
India 332 9
Russia 236 7
Pakistan 179 5
uAE 142 4
u.S.A 129 4
Kazakhstan 118 3
Canada 86 2
Italy 67 2

Villa Investors (Dubai Marina)

The Total No. of villa Investors in Dubai Marina District in 2009 was 20 invertors.

Country No. of %
Jordon 5 25
Canada 3 15
Latvia 2 10
Pakistan 2 10
uAE 2 10
KSA 2 10
Kazakhstan 2 10
DUBAI REAL TIMES

Iran 1 5
uSA 1 5
20

Country No. of
uAE 2
Land Investors (Dubai Marina) 15
The Total No. of Land Investors in Dubai Marina District in 2009 was 4 invertors. KSA 2
 PROJECT OF THE MONTH

Ocean Heights
Dubai Marina
Damac Properties Co. LLC
DUBAI REAL TIMES

16
 MARKET TRENDS & ANALYSIS

Ten predictions for 2010

Linda Benbow reports on Jones Lang LaSalle’s ‘Top 10 for 2010’ projections of
the trends expected to shape the UAE real estate market this year.

T
he room was full, it was hush quiet as financiers
and journalists waited to hear some happy news,
hopefully. Leading real estate investment advisory
company Jones Lang LaSalle had pronouncements
to make about the industry and were willing to make
predictions about the future of the industry … out loud.
“The local markets have changed significantly following
what happened globally, locally and regionally,” began Blair
Hagkull, Managing Director, Jones Lang LaSalle MENA. “In
2010, the UAE real estate market is moving away from the
off-plan sales model towards a longer term model based
on secure cash flows. Real estate investment vehicles are
being redefined as more interest is shown towards co-
investment vehicles.  However, the general downturn in
market performance is not affecting all locations or assets
type equally.
 The level of returns is expected to be more stable in
quality projects and locations as they are performing
comparatively better than others. This flight to quality is
significant as these are signs of maturity in a constantly
evolving market.”

JLL’s key predications are:

10. From asset creation to asset management

2009 marked the end of a transformational decade for the
UAE real estate sector as the market shifts from a period
of asset and value creation to that of asset management
and value retention in 2010 and beyond. The shift in focus
from creation of new assets to management and value
enhancement of existing assets is a sign of maturity for the
real estate market;
Craig Plumb, Head of Research at Jones Lang LaSalle
MENA said, “The opening of the Burj Khalifa in January
marked the end of an era of transformation and, we believe,
DUBAI REAL TIMES

that a new era has begun where it is not so much about

building new buildings, but more about making the best
use of those already built.
People will ask “how are we going to extract value
from the buildings we have? How are we going to retain value? Quality 9. From landlord to tenant UAE real estate market is becoming
management of existing assests is an answer with more attention being market increasingly tenant-friendly as it faces
paid to value creation from existing buildings, rather than developing new The continuing demand-supply greater competition by increasing
buildings. To some extent, this means the turning off of the supply pipeline. mismatch is bringing about a further supply, lower demand, falling
We will obviously still see some new buildings coming through – a legacy of shift in the balance of power from rents and higher vacancies. This is
what has been happening during the past decade.” the landlords to the tenants. The a beneficial situation for tenants
17
 as landlords are expected to offer greater incentives to
retain existing tenants and attract new ones.
Craig Plumb stated that about 30 per cent of all office
supply in Dubai is currently vacant. So if you are a tenant,
it means that you have a much greater choice of premises
today than, perhaps you did, a year of two ago. This, of
course, is unevenly distributed throughout the city and
some areas are more affected than others.
“There is going to be greater competition to both
retain tenants and attract new tenants. Some of the
things landlords will be looking to doing are: rent-free
periods, willingness to negotiate leases, more flexible
lease terms, more payment terms, contribution to fit-
outs, etc. There will be an increase in competition for
tenants of all kinds.”

8. Real homes for real people

In the last five years, 60 per cent of the housing stock
comprising luxury and secondary homes was targeted
for 16 per cent of the market who were mostly investors
and speculators. The market is expected to re-position in
2010 as it increasingly caters to the needs of end-users in
the middle segment of the UAE real estate sector. This is
a significant development for the industry as its priorities
are shifting towards the majority of end-users from the
earlier focus on investors in the high-end segment.
Craig explained and prophesised: “There has been
a shift away from the past five years where supply has
been dominated by luxury, high-end and investments.
We believe 2010 will have a market that is end-user
driven, and more mid-market driven. This is not only for
residential but also retail, hotels, schools, parks, clinics,
etc.”

7. From global to local

Middle East real estate developers and investors are
increasingly adopting inward looking strategies and
are seeking more opportunities in local rather than
international markets. Localisation of the real estate
industry is an important trend as capital flows from
regional entities shift towards domestic priorities.
Mr Plumb: “We will see more local money staying
within the region, investing in local real estate and
projects. There will, of course, be selective investments
abroad, but, mainly, there will be a trend to invest within
the region which includes areas of high population such
as Saudi Arabia, Egypt and Morocco.

6. Defining real value

DUBAI REAL TIMES

There is an important need to better define real value

in a market with minimal transactions. Valuations are
hampered by fewer transactions to benchmark as
investors seek to find the ‘new normal’ in real estate
capital values. Significant new initiatives are expected
in the valuation profession as the region evolves into a
more mature real estate market.
“Defining the true value of an asset, a property,
is difficult in this region due to a number of factors,”
18 explained Craig. “Difficult, because there has been a lack
of transactions, particularly last year; difficult due to
the lack of transparency, there is not much information
available in the market. Difficult because there has been
an inadequate regulatory framework, no requirement
for owners to have their properties valued or declare
their values, as would happen in many other mortgage
markets. And, difficult, because we have a very volatile
market which has changed dramatically over the past
18 months.
We believe that 2010 will see a number of initiatives
made to improve transparency, regulatory framework
and to introduce more international ‘best practice’
into the valuation industry in the whole region. This is
important as it will re-build confidence in the market, a
necessary thing at the moment.

5. New financing model for real estate

Cash flow is critical as we expect debt markets to
selectively ease in the coming year. Such a scenario
results in an increased emphasis on equity and
reinforces the need for co-investment vehicles. Scarce
debt will make private equity and family wealth funds
the preferred option due to their cash strong positions.
Blair Hagkull stated: “There is a necessity to create a
new financial market for real estate. Very clearly, there
is no limitation in debt. It requires a new way of doing
business. Today, even when banks provide finance,
putting your land in as equity is no longer enough.
Banks want to see cash. Cash is king. Cash shows
commitment, certainty and, ultimately, confidence.
Connected to this, we expect to see the re-
priorisation approach. Portfolios should continue with
finishing current projects, rather than focusing on new
supplies.”
“We also expect to see consolidation in projects and
investors. Consolidation is another buzzword for 2010”
he predicted.
“We also expect to see a ‘bringing together’ of
different people who have different skills in real estate
finance. We need to create more opportunities for co-
investors.
Focussing on end-producing properties is not new
across the world. But the focus is new in this market
here: we are talking about 5-9 per cent gains on capital
returns as opposed to 30 per cent+ which happened in
the past few years. The irony is that currently there is an
over supply of properties, but not many have income-
assets attached to them. If this state of affairs changes,
it will attract international investments.
Sometimes, boring is beautiful. The reality of income
is good as opposed to speculation.”
DUBAI REAL TIMES

4. New real estate investment paradigm

A greater emphasis will be attached to income producing
assets as the regional real estate industry takes a long-
term view on property. The trend of investors accepting
lower returns is the ‘new normal’ which is increasingly
becoming an industry reality. We are witnessing more
investment decisions led by asset performance, credit
worthiness and tenant quality. There is little investor
19
 appetite for incomplete projects that do not produce
income.

3. Rebuilding trust and confidence

Lack of transparency and trust are major issues
facing the UAE real estate industry. They have
negatively impacted the UAE market and have
eroded investor confidence. Effective regulation and
greater transparency are some of the major industry
challenges in 2010 and the years ahead.
Craig Plumb said: “Although this is mainly to do
with the government, it also affects the private sector.
We are talking about on-going investor relations. If
there was more transparency in the market people
would understand where the supply and demand
really is.
Over time we will see hurdle rates reduced, less
volatility, greater transparency and trust as we move
from a phase of growth to maturity towards an
established market,” he stated.

2. Generating additional demand

Generating additional tenant and occupier
demand will provide a significant boost to market
performance. This will be critical to the timing of
recovery in the UAE real estate market. Many of the
initiatives required in this area go beyond the real
estate industry. The industry needs to implement
structural changes to better position itself for the
needs of end-users and occupiers.
“The supply equation for the next ten years has
already been written. The key focus now is to ask
ourselves how we are going to fill these investments?
How are we going to attract people and companies
to come here to live and work? How are we going
to attract long-term residents rather than those on a
short-tem transit?” asked Blair Hagkull.
Both government and private sectors should
concentrate on providing demand drivers that will
create a new world in the marketplace.

1. Selective stability
The UAE market will see a general decline in
performance during 2010. The market will experience
greater differentiation as some locations will perform
better than others. This is in spite of the on-going
decline in values, plus an oversupply and higher
vacancy scenario. This selective stability will result in
a polarising effect on the market and will give rise to
DUBAI REAL TIMES

distinct winners and losers in the real estate sector.

“Long term, this country has tremendous assets
going for it not only in resources and superior
geographic location, but also a government and
people working together to create something
remarkable,” enthused Craig Plumb
“There will be winners and losers in the real estate
market. Certain areas, such as Sheikh Zayed Road,
DIFC and Burj Khalifa area will do better than others
20 because of quality, amenities and transportation
provided for those who living there.
The challenge is in the outlying
areas. They offer a preferred
location because of lower rents but
are less attractive because of lack of
amenities and maturity. This applies
to commercial requirements too.”
In summarising the report, Craig
Plumb, concluded: “Creating an
atmosphere of trust is essential for
markets to maintain a competitive
edge in challenging economic times.
The need to rebuild confidence and
greater transparency is no longer
optional but a necessity in the
region’s fast evolving real estate
markets. The rate of decline may
be comparatively less in 2010 than The need to rebuild confidence and
in 2009 but the timing of recovery greater transparency is no longer
will depend on additional demand
from both investors and tenants.
optional but a necessity in the region’s
As the markets mature, investors fast evolving real estate markets.
need to take a longer term view as
the levels of returns are expected
to become more stable and
sustainable.”

Top 10 Predictions for 2010

• Owners will focus on the active management of

properties versus new developments

• Landlords will provide greater incentives to attract

and retain tenants

• Luxury developments will be repositioned for the

middle end-user market

• MENA investors and developers will be more active

in local and regional investments

• The valuations industry will become more

professionally structured and regulated

• Limited debt will require investors to consolidate

and prioritise investment activities

• Investors will accept stable rental yields as

opposed to development profits

• Increased government regulation and improved

corporate reporting will rebuild trust in the market

• Government policies will focus on creating long-

term economic growth

• Growth unlikely in 2010. Selective markets to

DUBAI REAL TIMES

remain stable at best

21
 FINANCIAL ROUNDUP
A little profit
I
t is better to make a small profit
than no profit at all, is an old wise
saying that has been handed
down through the ages. After
the past economically upsetting year,
this adage applies with a heartfelt
relief to some businesses who have
been frantically endeavouring to
survive the downturn.
Deyaar Development PJSC,
Markus Giebal
a regional real estate company
dedicated to innovation, customer
care and long-term sustainability, has
announced its financial results for
the 12 months ending December 31,
2009. Despite extremely challenging
conditions globally, which have
impacted the performance of the
real economy worldwide and the
property sector in particular, Deyaar
continues to focus on its unique
consolidation strategy, which has led
to a reduced level of defaults and a
higher paid-up value for each of the
DUBAI REAL TIMES
company’s sold and consolidated
units. As a consequence, Deyaar
has been able to reduce its level of
provisioning related to receivables,
leading to a continuously positive
operational cash flow.
“In the face of unprecedented
threats to the stability of the global
22 financial system, the worldwide real
estate sector witnessed a range of
significant challenges in 2009,” said
Markus Giebel, Chief Executive Officer
of Deyaar. “Despite such volatile
conditions, Deyaar successfully
handed over eight projects last year,
including an Dh363 million project
in Lebanon.”
In line with global best practice,
Deyaar has adopted a revenue
recognition policy based on the
recommendations
of the International
Accounting Standard
Board (IASB) relating to
the International Financial
Reporting Interpretations
Committee (IFRIC) 15
- Agreements for the
Construction of Real Estate,
to recognise revenue
based on the completed
contract method.
In the case of the
completed contract
Al Seef Tower
method of revenue recognition,
the revenue and related profit
for a project sold are recognised
when the project is handed over to
customers.
Based on IFRIC 15 revenue
recognition policy, the company’s
gross revenues for the 12 months
stood at Dh1.835 billion, an increase
of 33 per cent compared to Dh1.382
billion in 2008 (restated as per IFRIC
15). The reported gross revenues
of the company for 2008 (as per
the percentage of completion
methodology) was Dh2.956 billion.
Based on IFRIC 15 revenue
recognition policy, Deyaar reported
a net profit of Dh30 million, a decline
of 95 per cent compared to Dh6,54.7
million in 2008 (restated as per IFRIC
15).
“In 2010, Deyaar will continue
to focus on the completion of
the consolidation of its projects
and timely collections of its
receivables at home in the UAE,
while simultaneously identifying
strategic expansion opportunities
overseas, including potential future
opportunities in regional markets
such as Lebanon and Saudi Arabia,”
Giebel explained. “With six projects
slated for handover this year and the
ongoing completion of income-
generating assets, in parallel to the
continued stablisation of regional
and international markets, we look
forward to reporting continuous
stable cash flows in 2010.”
The total equity of the company
stands at Dh6.75 billion as at
December 31, 2009.
“Deyaar’s sound fundamentals
and prudent operational strategy,
including generating stable income
from property management
and leasing activities, places the
company in a prime position to
benefit from the global recovery.
Moving ahead, we will continue
to focus on providing innovative
solutions that meet the evolving
needs of our customers,” said
Giebel.
Home and abroad
Highlighting its global footprint
with the recent inauguration of Burj
Khalifa, the world’s tallest building,
Emaar Properties PJSC has announced
its financial results for the 12 months
ended December 31, 2009. Annual
net operating profits for the period
reached Dh2.324 billion ($ 633
million), as compared to the restated
net operating profits of Dh4.236
billion ($ 1.153 billion) in 2008. Annual
revenue was Dh8.413 billion ($ 2.290
billion) as compared to the restated
revenue of Dh10.717 billion ($ 2.918
billion) in 2008. The restatement of
the 2008 profit and revenue relates
to change in accounting method
 obligations towards
properties delivered, which
is also positively reflected
in the revenues of the
Company.
In spite of opening
two hotels during the
year – The Address Dubai
Mall and The Address
Dubai Marina, the selling,
general and administration
expenses in 2009 were
maintained at 2008 levels
through implementation
of appropriate cost control
mechanisms.
Although the
profitability levels were
maintained for the
company’s core businesses,
the net operating profit
decreased due to provisions
made by its associated
companies in the financial
sector, Amlak Finance
and Dubai Bank, towards
their loans and advances
portfolio. The company also
recorded lower fee income
on property transfers due
to discontinuance of such
charges and lower net
interest income due to
utilisation of cash resources
Mohamed Alabbar
to complete investment
assets (Malls and Hospitality) during
the year.
The robust performance for 2009
- a challenging year internationally
- is a result of concerted efforts to
optimise resource use. Emaar also
worked closely with all stakeholders
to make the company resilient and
deliver results.
Emaar’s Hospitality and Mall
subsidiaries were significant
contributors to the company’s
revenue stream, with the year
witnessing the opening of two new
hotels and the grand inauguration
of The Dubai Mall, the world’s largest
shopping centre, which attracted
more than 37 million visitors in its
first year of operation.
Emaar Healthcare Group, the
company’s healthcare subsidiary,
opened its first world-class medical
centre in Dubai late last year.
Overseas, Emaar projects in India,
Egypt and Saudi Arabia, all reached
advanced stages of completion and
will be ready for handover this year.
Mr. Mohamed Alabbar, Chairman,
Emaar Properties, said the company
focused on the timely completion
of existing projects across global
markets through stronger resource
optimisation. “The crowning
achievement in our track record of
successful project management

from percentage completion to

completed contract method of
revenue recognition in accordance
with International Financial
Reporting standards (IFRS).
Fourth-quarter 2009 net
operating profits stood at Dh923
million ($251 million), 41 per cent
higher than the third-quarter net
operating profit of Dh655 million ($
178 million) and 149 per cent higher
than the fourth quarter 2008 net
operating profit of Dh370 million
($101 million).
Emaar has delivered
DUBAI REAL TIMES

approximately 3,100 units during

2009 as compared to 4,900 units
in 2008. However, the revenues by
malls and hospitality businesses
increased significantly. The company
implemented a number of customer
oriented policies, which assisted in
maintaining its Gross Profit Margins
at 2008 levels. These policies also 23
enabled customers to settle their
The fountains at Dubai Mall
 and delivery is the inauguration of
Burj Khalifa. From delivering the
world’s tallest building to the world’s
largest shopping centre, and further
strengthening our ability to build
world-class communities such as
Downtown Dubai, we have proved
our commitment to delivery,”
explained Mr. Alabbar.
Highlighting the success of
its diversified growth model, the
company’s subsidiaries in hospitality
& leisure and shopping malls & retail
contributed to developing self-
contained lifestyle communities in
Dubai, which is also being rolled out
in international markets.
“During an especially challenging
period for economies across the
globe, Emaar contributed to the
socio-economic growth and stability
of Dubai by creating more than 12,500
new jobs through our subsidiaries.
Domestic growth, catalysed by Burj
Khalifa, will be the highlight of this
year, as Emaar continues to focus on
maximising long-term value for our
shareholders,” said Mr. Alabbar.
He said that while Dubai will
remain an integral part of the Emaar
growth story, international markets
and new businesses will also
make considerable contributions.
“The opening of Burj Khalifa has
underscored the can-do ability
of Dubai and is a testament to its
sustained growth potential.”
This year, Emaar will also focus
on middle-income housing as
a strategic growth area to meet
the growing demand for homes
in emerging markets. According
to recent estimates, demand for
residential property in India will
be over 7.5 million units by 2013, of
which 85 per cent is projected in the
mid and affordable housing segment
– a trend observed in Egypt, Pakistan
and other emerging markets too.
In India, one of the company’s
key growth markets, Emaar MGF
DUBAI REAL TIMES
the Commonwealth Games Village
2010, a residential complex set in
27.7 acres in Delhi with an estimated
saleable area of 1.8 million sq feet.
The developer has made
considerable progress with its
master-planned communities in
India, Syria, Morocco, Jordan, Saudi
Arabia and Egypt, with several
hundred homes to be handed over
this year.
With Tuscan Valley Houses in
Turkey and Mirador Villas in Canyon
Views in Pakistan, Emaar has already
handed over its pioneering master-
planned communities overseas
– a trend that complements the
company’s delivery track-record in
Dubai.
Cementing the deal
ASEC Holding, Citadel Capital’s
platform company in the regional
cement production, engineering
and construction industries, has
acquired an additional 9.48 per
cent of ASEC Cement, one of its key
portfolio companies, in a deal worth
$80 million in cash and shares.
The transaction will see
ASEC Holding raise its stake in
the company to 61.04 per cent.
The selling party is the Emirates
International Investment Company
(EIIC), a long-time limited partner
in a number of Citadel Capital’s
Opportunity Specific Funds (OSFs)
and a shareholder in the firm.
“This transaction values ASEC
Cement at EGP 14.68 per share
against a par value of EGP 10, a fair
ASEC Cement factory
Hisham El-Khazindar
price for both parties that reflects
its outstanding growth potential as
it moves steadily toward controlling
over 12 million tonnes of production
capacity per year by 2013,” noted
Citadel Capital Managing Director
and Co-Founder Hisham El-
Khazindar.
As part of EIIC’s exit of ASEC
Cement, Citadel Capital S.A.E. (CCAP.
CA on the Egyptian Stock Exchange)
will record revenues of $880,000 as
a carried interest on the transaction.
Citadel Capital earns revenues in
three ways: Through capital gains on
its principal investments; through
management fees on the equity it
has under control; and through a
carried interest over a hard hurdle
on capital gains it makes at exit for
the limited partners in its OSFs.
The deal will be partly financed
through the issue of ASEC Holding
shares to EIIC in the amount of $ 32.5
million via a capital increase at a fair
market value of EGP 28.50 per share.
EIIC will continue to have exposure
to ASEC Cement’s growth story
through its stake with these shares.
In addition to the capital
increase, the Emirati firm recently
acquired an additional six per
cent of ASEC Holding from Citadel
Capital. Together with EIIC’s original
shareholding, the two transactions
give the Emirati company a 13.6 per
cent stake in ASEC Holding.
ASEC Cement’s production assets
are on track to span five countries
from Algeria to Iraq-Kurdistan within
the coming three years.
“Our aim in building out ASEC
Cement is to create one of the largest
and most efficient independent
c e m e n t
producers in the
Middle East and
Africa,” notes El-
Khazindar. “We
are well on our
way, and EIIC’s
decision to
reinvest a large
portion of the

Land Limited, the company’s joint proceeds from

venture in that country, has filed its its exit of ASEC
Draft Red Herring Prospectus with Cement into
the Securities and Exchange Board ASEC Holding
of India to enter the capital market through a
with an initial public offering of capital increase
Dh2.938 billion (INR38,500 million; is a testament
$830 million). to our limited
24 Emaar MGF Land Limited is also partners’ belief
on course with the completion of in this goal.”

Trust is the word
enTrust & Title is a neutral third party ensuring property transactions are hassle-free and in
compliance with the law
By Vanit Sethi
F
lashback to the summer of
2007. It’s hot, happening
and haphazard. Everyone’s
making a killing in Dubai,
buying and selling property. But
where’s the property? It’s not even
on paper - it’s just in the air. Or in
colourful brochures and flyers with
futuristic designs. Before even the
blueprint is finalised and approved,
the property is already sold twice
over. And before the construction
begins, it’s been flipped many times.
But by the time maybe a genuine
buyer has got the papers in hand
towards the winter of 2008, the
world economy has come crashing
down like a pack of cards. And
many so-called ‘fantastic properties’
disappeared in the Arabian sands
without a trace. Those who had
pooh-poohed any talk of a giant
bubble building up were now
waxing eloquent on the financial
tsunami storming the world. Alas,
it was too late for those who had
already burnt their fingers badly and
made a mess of their investments.
A crisis does provide some
lessons. And this was a catastrophe,
so it should provide several books.
New laws were written, existing
ones strengthened, and legal bodies
added more muscle. Things are
seemingly back in order, thanks to
the untiring efforts of government
bodies like RERA to streamline all
property transactions and provide
a legal backbone to contractual
agreements.
Enter enTrust & Title into this
new scheme of things to lend a
helping hand to those seeking
assurance that their money is in safe
PROFILE
hands. Located in Dubai Internet City, the complicated technicalities authentication of all principals and
enTrust & Title is essentially a neutral of property transactions. For a eliminates any financial risks posed
third party company that undertakes reasonable fee, it lays to rest the to the parties involved in a property
fears of those investing transfer or rental transaction. It also
huge amounts in a offers a renewable assurance policy
transaction whose to ensure a proper and complete
legal requirements transfer of the title at the close of
are unclear and the transaction. The services comply
incomprehensible. with the government’s quest to bring
“If the parties are transparency, accuracy, and efficacy
willing to pay huge to property transactions in order to
amounts for legal ensure international confidence in
services, then for a Dubai’s real estate market.
reasonable sum at our Most importantly, the company’s
disposal, they can avoid timing of entry into the Dubai
costly litigation arising property market is appropriate,
out of misunderstood coming at a time the emirate was
contracts or those looking out for a viable media that
that do not conform could build trust between different
to the new escrow parties involved in a property
regulations,” says Aziz transaction, and at the same time
Valliani, the suave guarantee compliance with legal
CEO of the new issues like the escrow law. When
company, a wholly Aziz Valliani came to Dubai over
owned subsidiary of three years ago, he felt the need
UAE has one of the best escrow services in the world,
says Aziz Valliani, the CEO of enTrust & Title
the 23-year-old US for a company like this to bring
company based in order to the chaotic property
settlement services and ensures California. jungle that Dubai was then. The
title legalities. With the backing of world economic collapse came like
the Dubai Land Department and Cost-effective services a blessing in disguise for the Dubai
RERA, the company offers tools In response to the challenges of the property market, Valliani feels.
and services for buyers, sellers, real estate market, the company “Of course, Dubai’s forward
landlords, tenants, builders, agents provides deliberate transparency looking government has taken good
and brokers, ensuring compliance of all transactions it processes. The care to see that now international
DUBAI REAL TIMES
with escrow regulations. It helps issues of legal ownership, authority best practices are adopted in the
in the framing of contracts that to enter into contracts, registration emirate, and a return to the earlier
comply with escrow rules, holds of deed, misrepresentation, financial Wild West days is quite impossible,”
cash deposits and cheques of the disclosures, and non-availability of he adds with a flourish.
buyer until they are ready for release documents in time for a resale or To buttress the fact, he points to
to the seller at the appropriate time, lease, are eliminated when using the a comparative chart of five countries,
offers advice to all interested parties company’s enTrusted Settlement proving that the UAE has one of the
at the time of signing contracts, Services. best escrow and title conveyancing
checks and ensures that contracts Its state-of-the-art technology services, better than even UK and 25
are not one-sided, and simplifies enables digital biometric US. “And it will only get better.”
 COMMENTS
Where have all the good developers
gone?
Landmark Advisory Q110 Report: deficit of grade A developers in Dubai and Abu Dhabi
F
ebruary saw Landmark
Advisory release its quarterly
report which focused
on the rating of the top
developers in Dubai and Abu Dhabi;
the quantitative evaluation carried
out by a panel of industry revealed
a deficit of Grade A developers in
both cities. Low ranking developers
will contribute to the ongoing price
divergence within the asset classes
in both markets.
Ms. Jesse Downs, Director of
Research & Advisory Services,
Landmark Advisory, explains “To date,
much of the supply already delivered
was built by master developers,
which rank higher. However, these
developers constitute the minority
of the total pipeline of units within
the next several years. The single-
asset developers currently building
the bulk of the forthcoming
supply have a significantly lower
rank and may suffer further credit
downgrades as their product is
forecasted to overpromise and
under deliver. This phenomenon
will create a bifurcation, a dividing
into two, between integrated,
high-quality units and those poor
quality units within fragmented
communities where many builders
DUBAI REAL TIMES
have postponed their developments
indefinitely.”
The evaluation was based on
three basic criteria: product quality,
customer service, and overall
perception.
“Product quality refers to
each individual developer’s track
26 record and ability to deliver the
product quality promised during
the marketing and primary market
sale of the unit. In some cases,
developers have not delivered any
projects locally. In this case, they are
graded based on the anticipated
quality of their projects,” continued
Ms. Downs.
Turning to residential sale trends
in Dubai, “While villa prices remain
unchanged on average, there is a
variance of pricing emerging based
on location,” explained Ms. Downs.
“Sale prices for villa communities
along Sheikh Zayed Road – which
we refer to broadly as coastal
communities – have increased
while inland communities have
decreased.
As indicated in the company’s
latest findings, location and quality
are driving apartment prices; while
average prices decreased, select
communities, including Palm
Jumeirah and Downtown Burj Dubai,
experienced slight increases.
According to Ms. Downs,
residential leasing in Dubai has
also regressed: “Average villa rents
declined 2.2 per cent while average
apartment rents declined 3.0 per
cent. In select new residential areas,
apartment rents have increased
which is primarily due to all available
residential units having been
handed over recently. This type of
marginal rent increase usually follows
apartment deliveries, propelled
by gradual occupancy gains after
handover.”
Landmark predict that rents are
likely to keep declining throughout
Q1 2010 as more supply is handed
over and landlords become
increasingly flexible: “We expect
continued relocation from Abu
Dhabi to Dubai, which will put
further downward pressure on
Abu Dhabi rents,” summarised Ms.
Downs.
In terms of commercial property,
leasing volumes for office
space remained low
in Dubai whereas they
increased in the capital.
“Office leasing transactions
in Abu Dhabi have slightly
increased during Q409
as more companies try
to settle in the local
market. This follows two
consecutive quarters
during Q2-Q309 during
which the office market
slowed considerably,
particularly during
the summer months,”
explained Ms. Downs.
“The rent levels for
office space in Abu Dhabi are likely
to keep declining as more supply
is delivered and landlords become
increasingly flexible in order to
guarantee good occupancy rates,”
continued Ms. Downs. “Quality and
location will determine whether
rents hold, and poor quality units
in areas such as Tourist Club Area,
Electra Street and the east side of
Salam and Hamdan Street are likely
to be the hardest hit.”
In Dubai, commercial sales
and lease rates declined. Analysts
found that volumes have remained
extremely low with existing sales
activity primarily in Jumeirah Lakes
Towers.
“We expect pricing in both the
residential and commercial real
estate markets to bifurcate based
on quality. This will become an
increasingly critical factor in the local
real estate markets,” concluded Ms.
Downs.

Size does matter
By Adrian Camps, appointed Chartered Surveyor for Fine and
Country International
I
f you ordered a 12” pizza and it
only measured 10” when it was
delivered, you would probably
be annoyed, but do nothing
about it. However, when it comes
to buying an off plan property
of, say, 1,000 square feet and only
receiving 700 square feet of floor
area which you can furnish, most
purchasers would rightly be very
upset, especially when the price has
been calculated on the whole floor
area, even the parts that you cannot
use.
Most developers are committed
to keeping customers happy, but
occasionally there seems to be
little justification for the difference
between the floor area sold and that
delivered, and some purchasers feel
they have been unfairly treated.
The root of the problem may
lie in the differing methods of
measurement that the authorities
use in calculating the built up area
(BUA) of a building and the permitted
plot ratios. These differ between the
authorities and have also changed
over time. For example, a balcony
enclosed on less than two sides is
not usually counted as floor area for
BUA calculations, whereas one that
is enclosed on two sides does form
part of the floor area. Corridors lift
shafts and stairwells can also form
part of these calculations.
So what can you do if you have
300 square feet of floor area less than
what you paid for? Firstly, read your
contract, it may well have a clause
that refers to floor area discrepancies
and have provisions for refunds and
additional charges after threshold
limits have been passed. However,
this is not important, because this is
now covered by Dubai law.
The most important point is the
method of measurement used in
determining the floor area. Some
contracts describe carefully what
is included in the floor area e.g.
partition walls, external walls and
balconies, etc. however, most do not.
Often the final floor area of the unit is
determined by the seller and
no method of measurement
is specified.
There is no one method
of measurement that is
recognised by the UAE
authorities, so where there
is a dispute, the method
of calculating the floor
area is open for argument.
Chartered Surveyors adopt
the methods of measurement
set out in the RICS code of
Measuring Practice, which
provide clear guidelines as
to how each unit should
be measured. The floor area
adopted under this method will not
include communal corridors, parking
spaces or common staircases and
often the floor area measured by
this method will be less than the
area quoted by the developer.
COMMENTS
If you feel unhappy with the floor
area that you have received, Law
13 of 2008 will help you to some
extent. It provides that if the unit
turns out to be larger on completion
the developer may not claim the
difference in value, and if the unit
turns out to be smaller then the
developer must compensate the
purchaser for the difference, unless
it is marginal.
The problem is that where there
is a discrepancy, unless the method
of measurement is clearly described
in the contract, there will be an
argument over what method to
adopt. In the absence of any UAE
standard you are advised to have
your unit professionally measured by
a Chartered Surveyor using the RICS
code of measuring practice - and
use this certificated area to discuss
the issue with the developer.
DUBAI REAL TIMES
27
 COMMENTS
Trend predictions
By Mohanad Alwadiya, Managing Director of Harbor Real Estate
T
o the question: “What will
be the most prominent
trends in Dubai’s real estate
industry in the future?”
I reply that short term investors
and speculators were hit with the
‘perfect storm’ last year. Those
who were taking the longer term
view and had planned their cash
flows accordingly have been able
to weather the storm; those who
were speculating, hoping to spin
the property for a short term gain,
got caught in the storm; while those
that sold prior to mid 2008 left town
unscathed.
During the second half of
2009, the market witnessed the
emergence of institutional and
private investors that were focused
on acquiring assets from distressed
DUBAI REAL TIMES
28
Dubai Marina
sellers. We anticipate this trend to
continue in 2010 and we also expect
more end user demand will flow
into the market once lending starts
again.
Another noticeable investment
focus that emerged during the
second half of 2009 is the investment
in income producing assets with the
prime consideration being yield.
In today’s environment to try and
predict capital appreciation is very
difficult and, while in the long term
property bought today will certainly
appreciate, the market is too
volatile to start predicting capital
appreciation rates.
Overall, many buyers still
believe that real estate is a lucrative
investment option. People want
to take the opportunity of owning
their family home or take advantage
of the investment opportunities that
emerged in the market today. The
demand is there, it just needs some
liquidity to enable the conversion of
intention into transaction.
What are the best properties for
investment, selling, leasing?
There now exists a greater range
of choice and buyers can succeed in
obtaining true value and quality in
the property they seek to purchase.
It is now that the fundamentals of
purchasing or leasing real estate
come to the fore; location, quality
construction, infrastructure, return
on investment and yield.
The most sought after assets
today are the yield producing
assets as they offer investors an
opportunity to enjoy annual yields
that remain higher than the global
average yields.
The best assets to invest in are
residential units within completed
developments and established
communities that offer its residents
(owners and tenants) a rich lifestyle
experience.
In addition, the current attractive
price points and the overall low
supply of villas compared to
apartments (estimated at 13 per cent
of the total residential units), offers a
safer and more robust investment
opportunity for investors.
When it comes to offices and
retail, these two asset types were
affected by the slowed commercial
activity and the expected high
supply. Hence this had a direct
impact on the appetite of investors.
Having said that, there are some
fantastic investment opportunities
in both asset types where some
office or retail properties are rented
by renowned brands with long term
lease contracts which offer greater
stability in terms of annual yields
to investors. It is a known fact that
companies do not relocate as often
as residential tenants.
Investment funds and bonds are
always good options for investors
that don’t have the time to manage
their investment transaction
Mirador villa at Arabian Ranches Offices on Sheikh Zayed Road

process. But it is definitely an option recovery will be evident in the next The issues can be summarized as institutional buyers
for long term investors. few quarters. follows: • The strength of the US dollar /
Of course, there are fundamental • Inevitable and unavoidable Dirham and its effects on foreign
What are the difficulties faced by economic issues to be addressed, exposure to the rapidly investment
the real estate industry? some of which are central to deteriorating global economic • Corruption and transparency and
The industry is experiencing some hastening an overall economic condition its effect on investor confidence
serious growth pains but will recovery which, in turn, will aid • The inevitable downturn of In our opinion, the biggest issue
recover. We believe we will see a the real estate recovery. The good domestic consumption and low remains the lack of availability of credit.
much improved level of activity news is that the Dubai and UAE confidence levels of investors There are buyers who are willing to
in the second quarter of 2010 as government are already addressing • Scarcity of credit and funding invest in their future, but the availability
the world economy strengthens, these issues. sources for private and of funds is the major inhibitor.
credit becomes more accessible
Signature villas on Palm Jumeirah
and Dubai re-launches itself as a
preferred place to do commerce and
trade. The launch of Burj Khalifa has
helped strengthen Dubai’s global
position as an innovative and leading
destination and the media coverage
it obtained definitely helped boost
the awareness of Dubai.
The recovery phase will need to
be driven by fundamental and solid
economic drivers, not speculation.
Population growth, driven by an
increase in commercial activity will
be the primary determinant of a real
estate recovery as Dubai attracts
new business entities, investors and
owner occupiers who have a long
DUBAI REAL TIMES

term outlook to their participation in

Dubai’s economy.
We believe that the market is
currently going through a phase
of positive stabilisation. The long
anticipated recovery cannot be
claimed as yet, despite indications
that started during the third quarter
of 2009 suggesting the market 29
had bottomed, and early signs of
 INFRASTRUCTURE

Victory Heights announces full electricity connection

D
o you remember the fuss
that went on when villas
on new projects such as
Arabian Ranches were
deemed fit to hand over to owners,
who had been desperately waiting
for their completion date promises
to be kept, usually to no avail?
Eventually, when money had been
spent on renting and extending
leases almost on a monthly basis,
many owners decided to move
Yasser Al Raee
into their completed homes
in the middle of uncompleted
surroundings. Electricity was
provided by generators, often
topped up by private purchases of
these machines, and the only means
of telephone communication was by
a mobile phone.
This is no longer to be the fate of
residents at Victory Heights because
DUBAI REAL TIMES
full electric power has now been
installed to all villas and buildings
the developers have confirmed. To
date 385 villas have been handed
over to homeowners, out of a total
of 961-units. Already this year,
handover has been completed in
two of the seven villages that make-
up the luxury villa community, with
new residents moving in every day.
“All homes and buildings
in Victory Heights are now fully
connected to Dubai’s main electricity
supply. We have been working very
hard with DEWA to ensure that
connection and supply are in place
and 100 per cent efficient for all our
current and future residents,” said
Yasser Al Raee General Manager at
Victory Heights.
Victory Heights surrounds the
18-hole The Els Club golf course,
designed by World Champion golfer
Ernie Els. Villas in the development
are built in three different styles;
authentic Spanish Andalusian, bold
Mediterranean, and classic European
styles.
Integrated waste management
Dulsco has recently concluded
an awareness exhibition at the
Dulsco Events Arena showcasing
its Waste Management Services’
(WMS) products and equipment,
which was part of an initiative
to enhance cross-selling across
different business units. Attended
by the Chairman, Managing
Director and representatives from
each department, the awareness
exhibition had presentations on
the latest technologies and the
safety mechanism adopted by the
company, while there were also live
demonstrations of various WMS
equipments and products.
The waste management
products and services featured
were collection and transportation
of solid and liquid waste by various
types of vehicles, waste collection
receptacles and vehicles, waste
compaction equipment, and
recycling receptacles. There was also
a special presentation about Dulsco’s
on-shore and off-shore tank cleaning
process, particularly for tanks used
for petroleum products, chemical
products, sewage, freshwater and
sea water.
Dulsco’s Waste Management
Services, the first waste
management firm in the UAE to be
Integrated Management Systems
certified, handles hazardous and
non-hazardous solid waste in
compliance with strict municipal and
environmental provisions.
Empower and Swedish
technology vendors
The Swedish Ambassador to the UAE,
HE Bruno S Beijer, has said that the
current situation offers tremendous
potential for developing business
tie ups between Dubai based
companies such as Empower and
Swedish technology vendors. He said:
“Empower played an instrumental
role in Dubai’s transformation towards
a more sustainable ‘green’ society. We
firmly believe that there is an obvious
potential for collaboration between
it and the many Swedish companies
which focus on Environmental
Technology.”
Bin Shafar said: “Empower always
looks at solutions from world class
companies and we believe that we
need to have more joint ventures
with top-notch organisations. Just
a month ago, we inaugurated
Empower-Logstor Insulated Pipes
Systems (ELIPS), UAE’s largest pre-
insulated pipe manufacturing facility,
in Jebel Ali.”
He added: “We succeeded in
building world class district cooling
infrastructure that is considered an
ideal economic and environmental
solution for residential and
commercial units, offices and hotels. In
Dubai, residential units are becoming
increasingly aware of the importance
of using district cooling system as
an alternative to conventional AC
systems, leading to energy saving and
environment conservation, as well as
lower operations and maintenance
costs. This is in sharp contrast to lower
awareness of its importance in other
parts of the Middle East.”

30
Ahmad Bin Shafar, CEO of Emirates Central Cooling Corporation (Empower) talks Dulsco management at the Dulsco campaign
green energy with The Swedish Ambassador to the UAE, HE Bruno S Beijer

DEWA signs six new contracts
New projects for conserving water and electricity agreed at WETEX 2010
O
n the second day of
WETEX 2010 (Water
Technologies, Energy
and Environment
Exhibition) Dubai Electricity and
Water Authority (DEWA) celebrated
the signing of six new contracts
for projects in electricity and water
sectors, enhancing the infrastructure
of DEWA facilities and raising the
efficiency of the networks to meet
the growth in demand to services.
HE Saeed Mohammed Al Tayer,
HE Saeed Mohammed Al Tayer
MD and CEO, DEWA, signed the
contracts on behalf of DEWA and
its partners, including contractors
and senior officials in the companies
which were awarded the contracts
for execution of those projects.
HE made it clear that the six
contracts were for major projects
to the amount of Dh3.130 billion
covering both electricity and water
sectors.
The ceremonies for signing
contracts started with the first
contract, to supply, install, test
and commission three 132/11 KV
Substations with AAB Industries
LLC -Dubai to the amount of Dh250
million.
The second contract is with Areva
T&D SA Dubai to supply, install, test
and commissioning of three 132/11
KV Substations in various areas,
including Dubai Investment Park,
Jebel Ali Industries Area, Mutina,
Kifaf and other places, at a cost of
Dh1.030 billion.
The third contract with Ducab -
Dubai to supply 11 KV XLPE power
cables –800 kilometres, the value of
which is Dh260 million.
The Fourth contract to be
entered with Ghantoot Gulf
Contracting to supply, install,
test and commissioning of
Glass Reinforced Epoxy Water
Transmission Pipelines and
associated works at various
locations (167 kilometres), with
a total cost of Dh820 million.
The Fifth contract is with
M/S Saudi Modern Co. (Riyadh
cables) Dubai to supply, install,
test and commissioning of
132 KV cables to 132/11 KV
Substations, to the value of
Dh300 million.
The sixth M/S Siemens
to supply, install, test and
commission Mamzer Beach
400/132 KV Substations, at
Dh470 million.
At the end of the celebration,
HE Al Tayer emphasised the
significance of completing these
projects at the contractual dates
in order to enter them in service in
the right time. He assured guests
that DEWA will extend all possible
facilities to contractors to insure
the proper completion of these
projects, putting the environmental
considerations that are set by DEWA
at the top of its priorities.
The same week saw DEWA launch
its Green Building Regulations -
Stage II, jointly developed with
Dubai Municipality, comprising
of a new set of guidelines and
EVENTS
specifications, to regulate building energy in Dubai, within the green
standards for achieving efficiency buildings framework. In the initial
in the use of electricity, water and stage, all new buildings will be
renewable energy, as part of the required to comply with the codes
‘Green Buildings Project.’ and regulations and incorporate
HE Saeed Mohammed Al Tayer them in their construction designs.
said: “The Authority plans to issue Dubai will be the first city in the
the Green Building power and Middle East that officially applies
water regulations in April, 2010, the green buildings standards
for ensuring the efficient use of on its residential and commercial
electricity, water and renewable buildings.”
12th Water Technologies, Energy and Environment
Exhibition (WETEX 2010)
Held from March 9 to 11, the show emphasised the importance of
adopting best standards in conserving the environment as well
as discussing latest techniques in energy sectors with specialised
companies from around the globe. It stressed on the need to take
serious steps to reduce emissions of greenhouse gases. It explained
the importance of quick action to reduce emissions of carbon di-
oxide, which has increased by 40 per cent between 1990 to 2008.
The show discussed the phenomenon of climate change and rising
global temperatures, calling for the urgent need to develop a new
framework to combat global warming. It also discussed ways of us-
ing ‘green’ technology to mitigate the impact of global warming.
DUBAI REAL TIMES
The number of ministries, municipalities, government depart-
ments and public service associations participating at the show
exceeded expectations, with more than 490 companies, compared
to 450 companies last year, representing establishment from 23
countries.
WETEX not only represents technologies, but also adopts and
supports the issues and topics in the field of sustainable develop-
ment and conservation of the environment.
31
 FOCUS
Wanted: Project management expertise
Middle East construction sector to overtake Europe & North America
M
ore project
management (PM)
expertise is needed
to sustain trillion-
dollar project-driven developments
across the MENA region. The Middle
East’s construction sector alone is
expected to post an annual growth
rate of 3.5 per cent over the next five
years to place ahead of Europe and
North America and third behind Asia.
The Gulf, in particular, has around
$1.35 trillion worth of active civil
building projects requiring the latest
PM technologies and techniques.
Collaboration, Management and
Control Solutions (CMCS), a Portfolio
Project Management (PPM) firm
in the Middle East, has launched
an educational campaign to train
businesses and individuals from
across the region on advanced
tools and skills to meet demand
for world-class PM capabilities. The
company is the first organisation to
be authorised by Oracle University,
the global educational arm of
enterprise software company Oracle
Corp., to deliver certified training
programmes in the Middle East.
“As one of the world’s most
project-driven markets, the MENA
region has to ensure that it has
access to the best PM tools to
maintain its competitive edge.
DUBAI REAL TIMES
32
Bassam Samman
While PM methods are used to
properly manage projects, PPM
enables organisations to select the
right projects, which is a very critical
activity given today’s tight markets.
We want to promote these two
concepts so that the region can
excel in both project selection and
execution,” said Bassam Samman,
CEO and Founder, CMCS.
The company has been engaging
in similar education-oriented
initiatives, such as its recent signing
of a Memorandum of Agreement
with American University of Sharjah
(AUS) to train AUS students and
alumni on Primavera software and
its applications.
Collaboration, Management
and Control Solutions has been
connected with Oracle for more
than 25 years.
Business Village for SMEs
Provides fully integrated services
and solutions for entrepreneurs
and existing small and medium
Enterprises (SMEs)
Business Village in Deira
The Mohammed Bin Rashid
Establishment for SME Development
(MBRE), one of the Department
of Economic Development
establishments, has said that more
than 30 companies from the public
and private sectors moved their
operations to the premises of its
pioneering project ‘The Business
Village’, Deira. Launched in the
summer of 2009, the village aims to
provide support, guidance and all
levels of facilitation to make it easy
for businesses to start and grow.
Among the first organisations
that moved its operations here
are Mohammed Bin Rashid
Establishment for SME Development,
and the German Emarati Joint
Council for Industry and Commerce.
The Village also hosts a wide range
of general trading companies
including Aswaaq LLC, Seureca
Overseas, Green Inovacation LLC,
Wall Green Trading, Scrapa Shoes
Trading, Caliber ME, Raj Associate,
Marzouq Cosmetics, Orasia General
Trading, GTF General Trading, M2
Trading, and Bin Ghalita Trading.
It is also home to a number
of real estate and contracting
companies including Speed
Performance Building Contractors,
Majesty Agriculture Investment and
Union Square Real Estate. Services
companies such as Appollo Flight
Centre and Blue Water Tourism,
Images Digital, Renaissance
Translation & Business Services,
New Generation Business Services,
Abdul Rahman Naseer Advocates,
and Moora Foods (Subway) are also
housed here.
In addition to the companies
which have already moved in, a
number of public and federal bodies
are moving there soon, including
the Dubai Department of Economic
Development, UAE Ministry of
Foreign Trade, Dubai Events and
Promotions Establishment, Dubai
Export Development Corporation,
and Business Incubation Centre.
The Business Village offers a
comprehensive platform for trade,
business and social activities. It
extends on an area of one million
square feet and includes commercial
office space, business centre and
conferences and meetings rooms.
The project includes a mixed-use (not
sector specific) business incubator,
surrounded by commercial and
business organisations that are
directly engaged in supporting
and providing services to foster
entrepreneurship and SMEs.
Touring the tower
The Rt Hon Lord Mandelson tours
At the Top, Burj Khalifa
The Right Honourable Lord Peter
Mandelson, UK’s First Secretary of
(From right to left): The Right Honourable Lord Peter Mandelson and
Mr Abdulla Lahej, Executive Director, Dubai Project Management,
Emaar Properties, tour At the Top, Burj Khalifa
State, Secretary of State for Business,
Innovation and Skills (BIS) and Lord
President of the Council, toured
At the Top, Burj Khalifa the world’s
highest observatory deck with an
outdoor terrace on Level 124 of Burj
Khalifa, the world’s tallest building.
He was accompanied on the tour by
Mr Abdulla Lahej, Executive Director,
Dubai Project Management, Emaar
Properties, the developer of Burj
Khalifa.
The Rt. Hon. Lord Mandelson
spent nearly 45 minutes At the Top,
taking in the impressive views of
Dubai from the towering heights.
Mr Lahej explained: “The Rt.
Hon. Lord Mandelson has been at
the forefront of promoting global
trade ties through multilateral
partnerships in addition to being one
of the ardent champions in fighting
poverty and addressing the various
challenges of the developing world.
He was appointed to the Cabinet
as Secretary of State for Trade and
Industry in 1998, where he was
responsible for the introduction
of the National Minimum Wage.
He is honorary Chair of Policy
Network, a European and
international think tank.”
Coral relocation
Responding well to its new
habitat are more than 5,500
tonnes of coral transported to
the breakwaters of The World.
A new method, which involves
keeping the coral underwater
(Left to right) Mohamed Al Bahri, Director, Zoning Authority Development Control, DTMFZA, Ali BuRuhaima, Deputy
Director-General, DTMFZA, and Badr Al Gargawi, CEO, Tamdeen, during the official opening of the Piling and Deep
Foundations Middle East 2010 Conference in Dubai
throughout the entire relocation rocks with an average weight of five
process, is to thank for the positive tonnes were moved and now cover
results, master-developer Nakheel an area of 6,560 square metres.
has said. The rocks, which cover “The coral translocation area has
attracted a number
of species of reef
fishes that are less
common elsewhere
in that area,
including a number
of commercially
important species,”
Burt said.
The typical
method of removing
coral involves the
use of crow bars,
underwater drills
the size of a football pitch, were and cranes.
moved from Dubai Dry Docks to 27 The developer’s environmental
kilometres of The World breakwaters team developed the new technique,
and are now home to 18 species in which a bolt was drilled into each
of coral and more than 30 species rock then attached to a sling to
of fish as well as sea-squirts and hoist the rocks to a depth of three
urchins. metres below the water surface and
Initial findings by Dr John Burt attached to a transport barge.
of the Natural Science and Public “The methods used are a world
Health department at Zayed first, and one year on have been
University showed that one year hailed by independent parties as a
on, 93 per cent of the transported resounding success,” said Brendan
marine ecosystem is thriving. Jack, head of sustainability and
“A project on this scale has environment, Nakheel Northern
never before been attempted and Projects.
I am delighted with the results
we are seeing,” Burt said. “This
Piling and deep
marks an important step in our
understanding of the methods of foundations
coral translocation.” Region’s biggest Geotechnical
The coral was relocated between summit gathers over 200 global
April and June 2008. A total of 1,129 experts
DUBAI REAL TIMES
33
 The Dubai Technology and Media
Free Zone Authority (DTMFZA)
co-hosted the third Piling and
Deep Foundations Middle East
2010 Conference to highlight the
importance of utilising timely, cost-
effective and innovative foundation
systems in major projects for
ensuring satisfactory project
deliverables.
The region’s biggest geotechnical
summit commenced on 31 January
with a full-day master class at
The Westin Dubai Mina Seyahi
Beach Resort & Marina, organised
in conjunction with Tamdeen, a
specialist firm in technical project
management and a member
of TECOM Investments, Deep
Foundations Institute (DFI), US,
and the International Quality and
Productivity Centre (IQPC). The two-
day main event drew 200 global
experts to Dubai.
Ali BuRuhaima, Deputy Director-
General, DTMFZA, said: “This
international seminar brought
together some of the world’s most
prominent speakers from the geo-
technical and structural engineering
fields. Their discussions focused
on challenging projects, new
innovations, and the fostering of
knowledge among professionals.
This is part of our initiative to host
events that will benefit the civil, and,
more specifically, the geotechnical
engineering communities in the
UAE.”
Mohamed Al Bahri, Director,
Zoning Authority Development
Control, DTMFZA, offered the
opening remarks at the all-day
pre-conference master class.
Comprising morning plenary
sessions with keynote lectures, the
event included afternoon technical
tracks with a choice of practitioner
DUBAI REAL TIMES
and academicians-led sessions
or a segment on case history
presentations.
Some of the industry experts
who took the podium on Day-2
include Professor Jean-Louis Briaud,
Dr. S. K. Ghosh, member of the
American Codes for Seismic Design,
34 Salah Al Dilimi, Civil and Structural
Technical Manager, Roads and
Transport Authority (RTA), Dubai,
and Dr. Alaa Ashmawy, Dean, School
of Engineering, American University
in Dubai. All regional municipalities,
ministry of public works, and other
government departments had been
specially invited to the international
conference.
Badr Al Gargawi, CEO, Tamdeen,
said: “As co-hosts of the third Piling
and Deep Foundations Middle East
2010 conference, Tamdeen aims
to support the exchange of vital
benchmarking methods among
industry peers.”
An international case study
day marked the conclusion of
the conference on the fourth
day highlighting engineering
feats accomplished by industry
peers. The session saw world-
renowned consultants, contractors,
academicians and practitioners
getting together to brainstorm and
identify best practices and recognise
the innovations and achievements
in the field.
Tamdeen is currently
implementing various projects
including Dubai Biotechnology and
Research Park (DuBiotech), Energy
and Environment Park (Enpark). The
company has also helped develop
the infrastructure for other Tecom
business parks including Dubai
Studio City and Dubai Internet City.
Rodent control
DM launches rodent control
campaign in abandoned
construction sites
The Public Health Pest Control
Section of Dubai Municipality
recently launched a campaign to
combat rodents in the abandoned
homes and abandoned construction
sites in the Emirate of Dubai. The
campaign was held in coordination
with the Building Inspection Section
at Dubai Municipality for identifying
sites.
Zuhoor Hussein Al Sabbagh,
Director of Public Health Services
Department said that a special team
was formed to combat rodents.
“The team, which was given priority
of tasks to address the sites, took
full care of the construction sites
in various areas of the emirate.
The team conducted a survey and
inspection before treating the
construction sites. As a result of the
search in a number of sites in 2009,
the team issued 612 warnings and
460 fines,” she said.
Al Sabbagh said that the
municipality is formulating some
legislation that would be binding
for the contracts of construction
companies, that they should treat
the sites when they have a high
degree of rodent infection so as to
avoid the spread of pests to other
areas.
During the recent campaign,
covering the first stage of the survey,
which started on January 23, the
areas of Al Barsha, Al Quoz, Mirdiff,
Muhaisina-1, Mizhar, Al Nahda and
Al Warqa-2 were covered. The
campaign continued until mid-
February.
Logistics company opens
Dubai office
After its first full year of operations, in
which major strides were made in all
Matthew Derrick
aspects of its business, Sharjah-based
Momentum Logistics, a subsidiary
of international port management
company, Gulftainer, has continued
its expansion with the opening of its
first Dubai office.
Situated in Dubai Cargo Village,
Momentum’s Dubai office is intended
to enhance and extend the service
levels it offers to customers, and
forms part of the company’s national
and global network development
strategy – which will also see further
offices opened throughout the UAE
and GCC.
Momentum’s impressive growth
can be seen from the ranking of
the company’s General Manager
Matthew Derrick by a local logistics
publication at number 22 on the
‘Middle East Power List’ – a detailed
ranking of the region’s most
influential executives/companies
from the warehousing and transport
sector.
Speaking of the continued
expansion, Derrick said, “Since its
establishment, Momentum has
looked to develop our regional and
global network, while continuing
to provide the highest standard
of service to our customers. As a
young company with big plans we
are delighted that our development
has been noted by industry experts,
and with the opening of our new
Dubai office – and more expansion
to come in 2010 – we are continuing
to grow the business for the benefit
of our customers”.
Since its inception in October
2008, the company has been
focusing on growing
and expanding its
services. In addition
to its new Dubai
office, Momentum
also recently
announced the
opening of a new
office in Iraq, and
freight forwarding
is not the only
business area it
has been focusing
on: Momentum
has also been
developing its
transportation fleet of tractors
and trailers, which has grown to
be the one of the largest trucking
operations in the region. The fleet
comprises 122 tractors and over 240
trailers, including specialised low
bed trailers and tipping chassis. The
division has also relocated to new
offices and opened a state-of-the-
art vehicle maintenance and repair
facility within the SICD.

Parks and ponds
Sheikh Hamdan Bin Mohammed opens new pond park at Al Barsha
S
unday March 7 saw His
Highness Sheikh Hamdan
Bin Mohammed Bin Rashid
Al Maktoum, Crown Prince
of Dubai and Chairman of Dubai
Executive Council launching the
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum launched the activities
of the 30th Plantation Week by opening the newly built Pond Park at Al Barsha
30th Plantation Week activities by
opening the newly built Pond Park
at Al Barsha.
The opening ceremony was also
attended by Sheikh Ahmed Bin
Saeed Al Maktoum, Chairman and
Chief Executive, Emirates Airlines
and President of Dubai Civil Aviation
Authority, Lt. Col. Dhahi Khalfan
Tamim, Chief of Dubai Police, Obeid
Bin Essa Ahmed, CEO, Municipalities
Affairs Office in the Ministry of
Environment and Water, Eng. Hussain
Nasser Lootah, Director-General of
Dubai Municipality and many senior
officials of Dubai Municipality and
the UAE Municipalities Federation.
Ahmed AbdulKarim, Director
of Public Parks and Horticulture
Department said the Barsha Pond
Park is considered to be one of the
FOCUS
entertainment projects of technical the occasion of the 30th Plantation neighbourhoods and managing
excellence which has been carried Week, including the opening of them well lead to good aspects
out according to the global best eight public parks. of social development such as
practices in the establishment of “Four of these parks are pond bringing together family life, a sense
public parks. He said the park is built parks, a first-of-its-kind public parks, of community and looking after
at a cost of Dh22 million with a total which Dubai Municipality has set up your environment.
at Al Nahda, Al Barsha, Al “In this sense, projects like this
Quoz and Al Qusais-3,” undertaken by Dubai Municipality
said Amiri, adding that strengthen the security
the other four parks infrastructure of the Emirate of
will be residential or Dubai in all respects. Creation of
neighbourhood parks. public parks of this advanced level
Two of these pond of design and implementation is
parks, Al Nahda and Al one of the complementary and
Quoz were inaugurated necessary elements to achieve the
on the same day, Monday, strategic objectives of Dubai Police,”
by Lt. Col. Dhahi Khalfan said Tamim.
Tamim, Chief of Dubai He praised the approach taken
Police and Mohammed by Dubai Municipality in the
AbdulKarim Julfar, establishment of such extensive
Assistant Director General parks with all amenities, ponds,
of Dubai Municipality green spaces, walkways, pools and
for Corporate Support flowers of every colour.
Services respectively. Brigadier Mohammad Saeed Al
Lt. Col. Dhahi Marri, Deputy Director of Community
Khalfan Tamim, said Services Department, Dubai Police
that the creation of said his department has long been
parks in residential maintaining a close relationship
area of about 5.25
hectares.
“The large water
area, i.e. the pond,
has a total area of
84,150 square metres
(4.8 hectares), which
represents 33 per cent
of the total area of
the park,” confirmed
AbdulKarim.
DUBAI REAL TIMES
Eng. Salah Amiri,
Assistant Director
General of Dubai
Municipality for
Environment and
Public Health
Services Sector said
the Municipality had
organised a series of 35
exciting events on
Lt. Col. Dhahi Khalfan Tamim after inaugurating Al Nahda Pond Park

Al Nahda Pond Park
with the municipality parks in
different areas of the emirate for its
role in the implementation of police
programmes to connect with the
community and the dissemination of
awareness and security programmes
or community service.
Ahmed AbdulKarim, Director
of Public Parks and Horticulture
Department said Al Nahda Pond
Park is one of the most important
theme parks built in the emirate of
Dubai in the recent period.
“The park is the first entertainment
facility in Al Nahda area, which is the
newest urban residential areas in the
emirate of Dubai located near the
border of the emirate of Sharjah. It
was built at a cost of about Dh22
million with a total area of about
14.6 hectares. The pond stretches
to 80,000 square metres, which
represents 54.4 per cent of the total
area of the park,” said AbdulKarim.
He said the Al Quoz Pond Park is
Al Quoz Pond Park
DUBAI REAL TIMES
36
Director General for Health, Safety
and Environment Monitoring Sector.
The Al Qusais project involves
many leisure facilities such as
children’s play areas for different age
groups, jogging track at a length of
322 metres, various courts at an area
of 1,150 square metres, cafeteria and
restrooms.
Eng. Hussein Nasser Lootah,
Director General of Dubai
Municipality said: “The greening of
the city and plantation is one of the
elements of the emirate of Dubai
and the beautiful appearance does
not remain so without the attention
characterised by a beautiful pond Essa Al Maidour, Assistant Director and horticultural maintenance
at an area of 45,000 square metres General of Dubai Municipality for programmes plus integrated care for
covering 35.4 per cent of the park, Engineering and Planning Sector; the city’s green spaces.”
which has a total area of 127,000 and Al Wuheida School Park by “Dubai Municipality strives
square metres. It has been designed Salem Bin Mesmar, Assistant to maintain and promote the
according to the best
park systems and
modern landscaping
methods.
On Tuesday, Al
Qusais-3 Pond Park and
New Garhoud Park were
opened by Abdullah
Rafea, Assistant Director
General of Dubai
Municipality for General
Support Services Sector
and Obaid Al Shamsi,
Assistant Director
General for International
Affairs and Partnerships
respectively.
Wednesday saw the
inauguration of Qusais
Residential Park by
Essa Al Maidour during the opening of Al Qusais-2 Residential Park
Garhoud Park
spreading of green areas in Dubai
and the provision of resorts, public
parks and recreational facilities with
the best design specifications and
operate them according to the best
international practices to the needs
and expectations of the society and
in all areas of the Emirate of Dubai,”
Lootah said.
He recalled that in the production
of saplings the Municipality has been
able to develop the productivity of its
nursery in recent years by adopting
the best scientific methods in the
field of plant augmentation through
its nurseries at Garhoud, Nad Al
Shiba, Mushrif, Al Safa, Al Mamzar, Sih
Al Silm and Warsan with production
of more than 33.8 million saplings in
2009.
Lootah added that in the
establishment of public parks and
recreational facilities the Municipality
has taken huge strides as there are
now 42 parks that include big parks,
neighbourhood parks and the parks
in the middle of the city, 49 popular
squares in addition to recreational
beaches.
“Dubai Municipality is keen to
hold many events and recreational
and entertainment activities
throughout the year, and in 2009,
the six major parks in Dubai (Mushrif,
Safa, Mamzar, Creek, Jumeirah
Beach, Zabeel) managed to attract
about 5.7 million visitors while the
number of zoo visitors stood at
327,000. The parks and recreation
sector witnessed considerable
development over the past three
years in terms of developing existing
parks and upgrading their facilities
and adding new facilities,” he said.
Lootah stressed that as far as
greening projects and tree planting
and beautifying the streets, the city
is taking huge steps consistent with
the aspirations of the Municipality in
The newly opened Al Sufooh Park
this area.
He said 25 to 35 such projects
are implemented annually and
landscaping designs that are used
are compatible with the nature
of these streets, as the streets in
the markets differ in designs for
residential streets the external roads
that link the city to other cities.
He continued: “We depend on
plants produced in our nurseries
since 1986, and tourists in Dubai can
tell the difference between streets
by the plants there as each street
has a special design and special
plants. For example, in some streets
geometric shapes are used.”
“The Horticulture Section
provided an automatic irrigation
system suitable with a success
rate of almost 100 per cent using
treated wastewater,” said Lootah.
“The Municipality has provided
the opportunity to enter free
of charge to all categories of
residential community parks and
public squares. It is also committed
to the establishment of events
and activities in these parks.
The role of Dubai Municipality
in the plantation, greening and
landscaping of the parks of
schools, colleges, mosques and
government departments and
diplomatic missions in Dubai
cannot be ignored,” he concluded.
DUBAI REAL TIMES
37

Announcements and pronouncements
Contrary to popular opinions, freehold properties are still being offered for sale, albeit slightly
different from the usual villas and homely apartments
R
ecently some hotel offerings
were made to the public,
of furnished, freehold, loft
and duplex apartments
plus a luxurious Private Residence
Club to IFA Hotels & Resorts’ (IFA HR)
Laguna Tower. Both products will
be serviced and managed by the
onsite Mövenpick Hotel & Residence
Laguna Tower Dubai, making this a
mixed-use development.
Werner Burger, President and
COO of IFA HR, said: “We saw an
excellent opportunity to maximise
Laguna Tower’s customer offering
by applying our proven formula of
mixed-use developments. Its prime
location near the metro and in the
heart of ‘New Dubai’ made it a natural
choice to offer city-lovers a full-
service hotel, a variety of residence
options, hotel condominium units
and a private residence club, all
under one roof. It has always been
our goal to ensure our customers
have a variety of investment,
residential and lifestyle options
available across our portfolio.”
The 42-story Laguna Tower is
situated at the apex of the Jumeirah
Lakes Towers development. While
the first eight floors of the building
comprise a five-star hotel, the top
floors now feature the loft and
duplex apartments and the club.
Laguna Tower Lofts
The new one bedroom lofts and
one- and three-bedroom duplex
apartments, all equipped with a
bespoke furniture package, not only
offer contemporary living space, but
are also designed to be effortless
property investments. Investors
choosing to rent their apartments
on either a short or long-term basis
can leave everything from marketing
to maintenance in the capable and
reputable hands of the onsite hotel
operator. Additionally, owners and
their guests have access to all of the
hotel’s facilities enabling them to
enjoy a five-star lifestyle.
Laguna Tower Private
Residence Club
Each home in the Laguna Tower
Private Residence Club offers owners
a luxurious and convenient holiday
home serviced by a five-star hotel
operator. The beautifully appointed
and furnished loft and duplex units
are divided into saleable private
residence clubs interests. These
interests entitle owners to enjoy
a minimum of 21 days per year at
the Club, as well as unlimited use of
additional time available.
Piaras Moriarty, Vice President
Client Management with IFA HR,
adds: “Private residence clubs are
among the fastest growing sectors
of the real estate and hospitality
industries. With the introduction of
the high-end Laguna Tower Private
Residence Club, second home
shoppers now have an alternative
in which they buy only what they
will use, while still investing in
an appreciating asset. Of course,
ultimately, what owners buy is a
luxury holiday they can enjoy year
after year.”
Ownership in the Laguna Tower
Private Residence Club includes a
number of outstanding benefits
ranging from a concierge who
will handle dinner reservations or
arrange for a private chef, to picking
up groceries, providing room service,
nightly turndown and maid’s service.
Additionally, owners enjoy an array
of quality food and beverage outlets
within the hotel, just an elevator
ride away. Also within the building
and managed by the onsite hotel
are a state-of-the-art fitness facility,
spa, two swimming pools, 24-hour
security and two levels of basement
parking.
Craig Smith, General Manager,
Mövenpick Hotel & Residence Laguna
Tower Dubai commented, “It’s the
simple, yet important gestures that
LAUNCHES
make a private residence club feel
like a second home. For instance,
offering complimentary year-
round storage, allows us to have
favourite photographs, essential
items and sports gear put in place
at a moment’s notice.”
If owners choose not to use
all 21 of their entitled days in the
Laguna Tower Private Residence
Club, they may exchange their days
for stays in luxurious properties
around the world through the
IFA Collection. Through its master
affiliate agreement with The
Registry Collection programme,
the IFA Collection offers more than
160 exchange properties ranging
from tropical island villas in Belize
and Disney beach resorts in the
US to white-washed mansions
in Scotland and opulent country
clubs in the Canary Islands.
Burger concluded: “We recently
launched private residence clubs
in Pattaya, Phuket and Bangkok,
enhancing the IFA Collection
offering across Thailand. Moving
forward, we see a great strategic
opportunity to broaden the
geographic reach of the IFA
Collection through the continued
development of private residence
clubs across our resorts and
properties around the world.”
DUBAI REAL TIMES
39
 INTERIOR DESIGN
Contemporary
wallpapers for
inspiring décors
Award-winning Swedish wallpaper company brings its products to UAE
E
CO BoråsTapeter – the
Swedish wallpaper and wall
coverings company have
launched their first Shop-in-
shop in the UAE at Danube, Dubai
Festival Centre, where customers can
virtually simulate wallpaper designs
within the design centre, to help
them create their perfect home or
office interior.
ECO offers young, trend-conscious
designs that appeal to those with an
eye for detail – whether it be for the
home or the office. The full range
includes exclusive flock wallpaper and
bold wall murals, with the Eco range
including award-winning designs,
such as the Elle Decoration Design
Award for ‘London’. Being stocked
in the UAE are Line, Velvet, Feeling,
Design 2 and Design 3 – as well as
the Metallic collection, which is used
to match the other collections.
By contrast, BoråsTapeter offers
classic, contemporary wallpapers
for inspiring décors and is Sweden’s
oldest and most popular best-selling
brand of wall coverings. The brand
continuously develops their designs
to satisfy the market’s interest in
designs, colours and textures and
aims to be an inspiring role model in
the wallpaper market. Being stocked
in the UAE from the BoråsTapeter
DUBAI REAL TIMES
range are Artwork, Garden, Passion,
New Classic and Plain Stripes.
“We understand that there is a
demand for a fresh design brand
in the Middle East as the offerings
here are extremely limited – in terms
of accessibility and international
design,” says Lars Narfeldt, agent
40 and distributor for ECO BoråsTapeter.
“Now you can buy this luxury Swedish
design brand in the UAE.”
Office designers of the
future
The Office Exhibition, sponsored by
Hewlett Packard, opened on a high
in early February, with key features
at the show, including The Future
Office, The Office Awards and The
Student Loft Competition proving to
be a great success.
The Future Office is a new feature
to the show, and provides a visionary
peak at what offices will look like
in years to come. It is the result of a
design collaboration between some
of the leading companies in the
region – Mazari Consultants, Frezza
SpA, Quantum Glass, 3D Lux, BAAJE,
In Out Space and Skad Media, in
addition to Hewlett Packard who are
providing state of the art technologies.
Designed with optimum employee
health, safety, motivation and
productivity in mind, the futuristic
design combines sleek desks with
complementary laptops, unique
glass panels which
can switch from
being transparent
to opaque at the
flick of a button, and
energy-saving light
panels. In addition,
it uses creative
ceiling materials,
such as stretchable
sheets incorporating
sustainable low
energy lighting
and colour
changing light,
which improves
productivity.
At the other end of the design
spectrum, The Office Exhibition also
supports tomorrow’s generation of
design stars through the Student
Loft Design Competition, sponsored
by Frezza SpA. This competition
provides a unique opportunity for
students to get direct exposure to
the industry, and teaches them how
to create designs that not only look
good, but which are feasible and can
be reproduced.
Students from four local
Universities competed to design a
meeting table or area, a workstation,
a reception desk or an office lamp.
Success went to the girls this year,
who scooped all three awards:
Farzaneh Eslami from American
University of Dubai won an award
for her ‘Armed’ lamp; Aahd Alanqar
from Abu Dhabi University for her
‘The Strips’ reception desk; and Israa
Mahmoud from Ajman University for
her ‘Serenity’ workstation.
Speaking about her award,
Farzaneh Eslami, AUD, said, “I am
so surprised that I won, but delighted!
This was a great experience for me,
and was the first time I have really
had to think about the practicalities
of my designs. Winning has given
me much more confidence, and I am
sure that it will help me enormously
in my future career.”
The winners’ prize is a week long
trip to Milan, Italy, where they will be
able to visit the famous international
design fair, as well as Frezza’s office
in Venice where they will be able to
get a real feel for how the company
works.
Sinead Bridgett, Show Director,
The Office Exhibition, said,
“The response to the Student Loft
competition was great, and it was
encouraging to see so many design
students taking part with such
enthusiasm. We know from previous
winners that the award has helped
them in their career by providing
access and exposure to leading design
companies, and I am confident that
this years award winning students
will go on to achieve great things.”
 UNDER CONSTRUCTION

Soaring upwards
By Linda Benbow

H
aving lived so long in
Dubai I remember when
it was just a few buildings
and a lot of sand. The
place has faced a reversal since then
and the buildings that I first heard
about, and then, secondly, saw
being prepared for construction
have risen fast, then slowly and now
steadily. Yes, many of the projects
are ‘on hold’ to be thought about at
a later date; but it is nice to see the
ones that I initially heard about with
so much passion and gusto now
rising taller and taller.
The first office tower block with
a funny name registers firmly in
my brain. i-Rise tower was to
be built on a corner site in Barsha
I was informed in 2005, with a
vague reference to ‘special’ internet
capabilities. It turns out that the
area was in the process of being
turned into a Tecom free zone –
an extension of Media City, I now
know for certain. And the corner
I-Rise tower
plot faces the infamous traffic lights
which every Greens resident, Salik
dodger and early-morning traffic
radio presenter knows.
Realty Capital Middle East FZ LLC
has completed the concrete casting
of the 30th floor slab of its centerpiece
i-Rise office tower project in TECOM
site C. This marks an important
milestone as one of the largest office
tower developments in the region
draws near to its completion date
expected in November 2010. The
tower is 36 floors high and contains
corporate and executive offices as
well as retail space on the ground
floor with an approximate total built-
up-area of 1.9 million square feet. The
tower will have 19 high speed lifts,
some call them elevators, and 2,300
parking spaces.
All electromechanical works of
i-Rise are now being completed
through the lower levels up to 27th
floor. The contractor has also started
placing aluminum cladding on the
external facade up to the 25th
floor. Fit-out works are also well in
progress.
Marwan Mansour, the CEO of
Realty Capital, confirmed: “There has
been a growing sense of excitement
and pride as we draw nearer to the
completion of i-Rise. We worked
really hard with the contractors to
ensure that the project stayed on
track despite the challenges that
have been experienced in recent
times. When we started this project,
we vowed to protect the interest of
all investors and stakeholders.”
I remember when the concept
of Dubai Healthcare City (DHCC)
was first aired to the public, who
were not really interested at the
time, as there was too much else
going on, what with making profits
flipping apartments and villas
before they were even built (pay a
Dh5,000 deposit to secure a plot,
then sell within the year to someone
on the waiting list, or someone who
didn’t want to
join a waiting list
– before having
to pay the first
instalment. It was
a good scheme,
everyone did
it. In USA there
were even books
written telling
you how to
flip, one of the
famous brand-name hospitals from
various countries setting up there.
Moorfields Eye Hospital from the
UK is there and so too is the Mayo
Clinic (USA), Great Ormond Street
Children’s Hospital (UK), the German
Heart Centre, Dr. Sulaiman Al-Habib
Dubai Properties Group has
renewed its agreement with Al Basti
& Muktha (ABM), a leading building
and civil construction company
in the UAE, to complete Al Khor
Hotel and Residences here. The
towering five-star development,
located in the heart of DHCC Phase-l,
has already achieved 60 per cent
completion. The community will
consist of two towers, a 34-floor
hotel to include 444 rooms and a
43-floor apartment building with 405
serviced apartments. It will feature a
podium with six restaurants, a spa,
gym, swimming pools and other
amenities and include a car park
accommodating 1142 vehicles.
Khalid Al Malik, Group CEO,
Dubai Properties Group, said: “The
five-star facility will service the
Dubai Healthcare City communities
including patients, relatives and
tourists, along with our corporate
clients.”
It was a lovely sunny day, with
no swell under the waves when a
group of journalists were taken on a
Nakheel boat trip to see the islands
of The World, now that they were
standing proud of the briny sea.
DUBAI REAL TIMES

‘Dummies guide One of the islands had already been

to …’ series). sold to a private individual who had
Nowadays built his home there, and so, due to
DHCC, the world’s privacy agreements, the boat was
first healthcare not allowed to get too near the
free zone, is well island.
understood and Visibly, nothing has changed
well revered with much since that day more than
folks look forward five years ago, although famous 41
to seeing more people have visited them, walked
 Lighthouses at The Heart of Europe
The Heart of Europe is a six-island, 12-site luxury holiday
development. Situated on the islands of Germany, Austria,
Switzerland, The Netherlands, St Petersburg and Sweden, the
first-class destination offers a resort and leisure experience. The
company has partnered with some of Europe’s foremost architects
and technology providers to give the resort its signature style of
modern design infused with characteristics of the host countries.
A celebration of the continent’s artistic and cultural treasures,
each country captures a different facet of Europe’s unique
character – music in Holland, innovation in Germany, style in
Austria, wonder in Russia, tranquillity in Sweden and romance in
Switzerland.
When complete The Heart of Europe will house 75 private
holiday homes, six apartment buildings, six hotels, six lighthouses
and six floating palaces as well as a diverse range of retail,
entertainment and F&B outlets.

engineering procedure undertaken dynamic effects (liquefaction, in

Al Khor hotel & residences
on the islands and even played golf
on them – on the few islands that
haven’t been sold yet, that is.
But there are plans for that to
change because Kleindienst Group,
the developer of The Heart of
Europe project on some of these
island have appointed Foundation
Construction Group Limited (FCG),
to begin construction this month.
DUBAI REAL TIMES
A specialist foundation engineering
contractor, FCG will begin work on
Germany Island, the first of the six
islands to be developed in the luxury
holiday project which attracted
worldwide attention when it was
announced in December 2009.
Construction will begin with soil
testing followed by improvement
of the in situ sand of the island, an
to prevent subsidence, increase the
overall bearing capacity and ensure
the future stability of the island.
The soil improvement operation,
called ‘vibro-compaction’, involves
the use of electric depth vibrators
that mechanically agitate and
lock the sand particles together
down to seabed level (a depth
of 18 – 20 metres), to ensure that
all construction on the island is
stable and sound. The technique
is recognized internationally and
is a standard procedure in the
densification of reclaimed land.
“Vibro-compaction will enable
the islands to meet or exceed the
demands of static effects (bearing
capacity or settlement) and
the unlikely case of an earthquake),”
said Francisco Baez, Technical
Manager at FCG. “This intensive
process, once completed, will
result in the increased stability of
The Heart of Europe islands and
their superior condition to naturally
formed islands.”
FCG aims to complete ground
settlement works by May 2010
after which Kleindienst Group
will commence building its 20
private holiday villas. The villas are
scheduled for completion in 2011.
Josef Kleindienst, Chief Executive
of the Kleindienst Group said: “The
Heart of Europe project is about
to commence the most critical
phase of ground works to ensure
the lifetime stability of our islands.
We are pleased to be working with
a group of geotechnical engineers
that have vast experience in
stabilising the foundations of
reclaimed land.”
An international company
with subsidiaries around the

world, the FCG team has been

involved in many similar projects.
Major projects in the UAE include
contracts for manmade islands for
the Al Souwah and Eco islands in
Abu Dhabi.
Since The Heart of Europe
launched in December Kleindienst
42 Group has sold 11 villas on Germany
Island.

Sahara Living
Almasah International Real
Estate, a Dubai-based real estate
company, has announced that con-
struction work on its sold-out devel-
opment, Sahara Living, is nearing
completion, with handover by Oc-
tober, 2010 on track, as promised.
Located in Dubai Industrial City,
and spread across an area of 18,116
square metres, Sahara Living is a
residential development consisting
of 84 villas.
“Sahara Living sold-out because
of the great design, landscaping
and community-feel,” said Chair-
man Abou Taleb Talebi. “We have an
obligation to deliver to the investors
that believed in this project, and we
would never let them down.”
Targeted towards middle-income
investors and families, each of the
three-bedroom villas here includes
a small garden, with villa clusters
grouped around community pools,
BBQ areas and playgrounds, all sur-
rounded by lush greenery.
“The villas are spacious, and the
development is designed to inspire
a neighbourhood feeling, but I think
it’s all the plants and trees and detail
to landscaping that really sold the
properties,” added Talebi.
Reem Dubai Contracting was ap-
pointed main construction works
and began building in April of 2009,
steadily making progress, with little
interruption, despite many other
projects halting in Dubai.
When asked how the company
was able to continue works, despite
the troubles facing most develop-
ers in Dubai, Talebi explained: “Our
projects are well-planned, and we
have firm backing, otherwise we
would not be here - we hope that
the completion of our projects helps
encourage more investments in
Dubai, because we are confident in
the vision of the city, and of the UAE
as a whole.”
Almasah presently has a total of
19 projects under construction in-
cluding Chess Tower in Dubai Sports
City, Nathalie Tower, Blue Moon
Tower and Noah’s Arc
Tower on Palm Jebel Ali,
and 14 projects all located
in Jumeirah Village South.
British
Business
Group breaks
ground
New premises to assist
BBG to further support
the business community
Construction work on a
new office building for
the British Business Group,
Dubai & Northern Emirates (BBG)
began in February with a ground-
breaking ceremony at the British
Embassy. The British Consul Gen-
eral in Dubai, Guy Warrington, and
the Chairman of the BBG, Mark Beer
formally broke ground for the new
building which will be located, as
was the old building, in the Embassy
complex in Bur Dubai. The purpose-
built premises will provide more of-
fice accommodation and modern
facilities for the BBG’s executive
team and administrative staff.
Chairman and CEO of BBG, Mark
Beer, said, “The new office will allow
(from left to right) Mark Beere, BBG Chairman and CEO; Guy Warrington,
British Consul General and BBG Chairman; John Alford, MD JASAF & CONTECH
us to continue our 23 year history of
promoting business between the
UK and Dubai & the Northern Emir-
ates, and supporting the commu-
nity. The BBG is the largest and most
active business group in the Gulf
region with a growing list of more
than 1600 members and an increas-
ingly busy calendar of activity. The
new building will help to facilitate
our growth and ensure that we can
continue to expand our activities
and support services.”
More than 50 representatives
from the BBG, Young Arab Leaders,
the British Embassy and UK Trade
& Investment were on hand for the
ground-breaking. Construction and
fit-out of the new building is expect-
ed to be completed in April 2011.
Mr. Warrington said, “The British
Embassy has housed the BBG for
many years, and we look forward to
the next era in its development. As
the representative voice of British
business, the BBG plays a vital role
alongside the Embassy and the UK
Trade & Investment office in promot-
ing bilateral relations.”
The ground-breaking coincided
with a busy start to the year for
the BBG. In recent weeks, the BBG
had hosted Britain’s First Secretary
of State, Lord Mandelson, and the
Lord Mayor of the City of London,
Alderman Nick Anstee, as well as
holding a lunch forum in association
with Young Arab Leaders and hear-
ing from Andrew Mitchell MP, the
Shadow Secretary of State for Inter-
national Development.
DUBAI REAL TIMES
43
 HANDOVERS
Houses and homes
The number of homes and offices being built, painted, outfitted and handed over for occupation
are increasing monthly
F
ebruary saw Nakheel
announce that it has
received handover
of the sixth and final
tower at Marina Residences,
Palm Jumeirah, from Japanese
DUBAI REAL TIMES
Marina Residence
contractor Shimizu Corporation.
The phased handover of homes at
Marina Residences, located at the
tip of the island’s trunk, began late
last year, with close to 100 families
44 already taking occupancy.
Marwan Al Qamzi, Group
Managing Director, Nakheel
Development Projects said: “We
have been working closely with
world leading contractors Shimizu
Corporation during the past few
years to deliver this exceptional
development on Palm Jumeirah.”
The waterfront development
features six residential towers
containing a mix of apartments and
penthouses. The most luxurious
penthouses are designed over four
floors, providing more than 14,000
square feet of living space. The
development is complemented by
a number of townhouses which are
located along the marina fronted
promenade.
Palm Jumeirah is now home to
more than 12,000 residents, however
the project is still ongoing and the
next five to six years will see the
island become one of the world’s
premier resorts, offering a number of
top-brand named hotels, including
Atlantis which opened in September
2008, as well as a wealth of retail
and leisure choices, offering luxury
retail, dining and entertainment
destination.
Last month also saw Dubai
Properties Group (DPG)
commence the handover of Al
Waha, an exclusive freehold
community within Dubailand.
Following the successful launch
of the adjacent Layan community,
DPG welcomed homeowners to
this luxurious enclave of 260 villas
featuring terracotta roofs, warm
Khalid Al Malik, Group CEO, DPG and Sahar Al Ansari, DPG Development
Director, Al Waha
colours and cobbled driveways
surrounded by tranquil desert
landscape. The community includes
80 ground level two bedroom villas
from 1,785 square feet, 80 first floor
villas from 1,829 square feet, 50 three
bedroom villas from 3,483 square
feet and 50 four bedroom villas from
3,992 square feet.
Khalid Al Malik, Group CEO of Dubai
Properties Group said: “Al Waha is an
important addition to our residential
portfolio as it demonstrates our
commitment to delivering a diverse
range of communities in Dubai. We
are always striving to introduce new
and innovative real estate options that
address the current market demand
and Al Waha Villas is designed to
meet the needs of the modern
family. In addition, the community’s
unique and appealing Mediterranean
architecture is changing the desert
landscape.”
Al Waha is situated close to both
Emirates Road and Dubai Bypass,
and within minutes of the retail and
restaurant offerings at MotorCity,
Sports City and Arabian Ranches.
The exclusive gated community
will feature round-the-clock security,
a clubhouse and community
centre, with lush landscaping that
will complement the breathtaking
colours of the Arabian Desert. An
ideal community for families seeking
a respite from the frenetic pace of
the city.
Burj Khalifa, is readying to
welcome its first residents with the
orientation programme for home-
owners of Armani Residences,
located on levels 9 to 16 of the
tower, currently ongoing. The
interiors of the world-class and first-
of-its-kind Armani Residences is in
the final stages, and finishing work
of The Residences in Burj Khalifa is
progressing at a fast pace.
The hand-over of homes begins
first with the Armani Residences
comprising 144 private apartments
personally designed by Giorgio
Armani. This will be followed by the
much-awaited Armani Hotel Dubai,
which occupies the concourse to
Level 8 and Levels 38 & 39.
The Residences, comprising 900
apartments, and The Corporate
Suites, a collection of high-
end offices, began handover to
customers this month. The handover
programme can take anywhere from
two to six months.
Armani Residences is developed
through a collaboration of Emaar
and Giorgio Armani S.p.A. Personally
designed by fashion legend Giorgio
Armani, the one- and two-bedroom
suites are spacious, ranging from 100
to 200 square metres.
The interiors of Burj Khalifa,
including The Residences, are
embellished by award-winning
designer Ms Nada Andric of
Chicago-based Skidmore, Owings
& Merrill LLP (SOM), the architects
of the tower. The design elements
take cues from the region’s heritage
and interpret it into spatial elements
with traditional motifs and the right
selection of materials. Apart from
glass, stainless steel and polished
dark stones, the interiors feature
Silver Travertine flooring, Venetian
stucco walls, handmade rugs, stone
flooring and dark, intricate Brazilian
Santos Rosewood.
Local and international art pieces World renowned designer Perla as a long-term investment. It will be
that were specially commissioned for Litchi designed the interiors for the managed based on a lease system
the corridor area of The Residences project, with Al Mazaya decorating as one of the company’s profitable
have also be integrated into the each villa with stunning furnishings. assets.
interiors. Business Avenue is located at The economic feasibility of both
In keeping with the delivery Jumeirah Lakes and consists of projects were thoroughly studied
and completion of all its projects in three commercial towers catering to according to cash flow schedules,
Dubai, and after the delivery of 104 the needs of the office sector. Two with the projects being developed
The Villa
villas of The Villa project during of Mazaya Business Avenue’s towers through collected sale earnings,
the second half of 2009, Al Mazaya were sold in 2007, while the third leaving out the need to use the
Holding is continuing with the tower will be kept by the company company’s own resources.
construction and development Business Avenue
works of the second phase of the
project. The company’s strategy will
also see the delivery of Al Mazaya
Business Avenue in the third quarter
of 2010.
Located at Dubai Land, The Villa
project is comprised of 520 residential
villas with modern designs. The
first phase of this project, which
included 104 villas, has already been
completed and delivered to owners,
while construction and development
of phase two, which includes 110
villas, has been completed. Delivery
of these units to owners has already
started, and the overall completion
rate for the remaining 306 villas
(phase three) currently amounts to
DUBAI REAL TIMES
70 per cent.
In addition, Al Mazaya has
completed approximately 85 per
cent of the construction works for
Mazaya Business Avenue, with the
completion of the interior also going
according to plan. Al Mazaya plans
to deliver the project, which consists
of three towers with 44 floors each 45
during the third quarter of 2010.
 Canal Residence West promenade
Dubai Sports City has this trend and now want to take 400 villa owners already living in stores are getting ready to move
received a strong response from space,” said Sam Sayadan, Retail Victory Heights, a gated golf course in to the mixed-use community
retailers, with six signed brands to Development Manager, Dubai residential community. development by Limitless. Citibank
open in its residential apartment Sports City. Global banks are now open is the second international bank to
buildings complex project, Canal Canal Residence West’s studio, for business at The Galleries at set up shop at The Galleries – a mix
Residence West, upon handover one, two, and three bedroom Downtown Jebel Ali, while the first of A-grade offices, residential and
from September this year. Among apartments will be joined by the cafes, restaurants and convenience retail space set in 20,000 square
the brands already
confirmed to have
leased space at Canal
Residence West are
Al Maya supermarket,
Alpha Optical,
Champions Cleaners,
Al Shafar Pharmacy,
Nutrition World, and Al
Arrab Restaurant, with
further commercial
tenants to be confirmed
shortly.
“2010 is a year of
deliveries and growth
for Dubai Sports
DUBAI REAL TIMES

City, and with many

elements coming
online, the project
is now a thriving
community servicing
local residents as
well as visitors from
surrounding areas. As
46 a result, many retailers
of all sizes are realising
metres of landscaped grounds –
with the opening of a service centre
at the development. Citibank joins
Standard Chartered, whose branch
and corporate offices have been
operational since July 2009. Blom
Bank France also has premises fitted
out and set to open in April.
And as the banks settle down to
business here, the project’s first cafes,
restaurants and shops are preparing
to move in, with global chain
Subway, Arabic eatery Mushmaool,
car rental firm Diamond Lease and
convenience store Fresh Plus at fit
out or design stage.
Salah Ameen, Deputy Executive
Director for Limitless in the Middle
East, says: “The Galleries aims to be a
walkable, environmentally-friendly,
balanced place to live and work,
with convenience, sustainability
and social interaction at its heart.
Already home to a long list of global
companies who have set up offices
here, it is now welcoming a growing
number of food outlets and retailers
offering everyday conveniences
for existing and future tenants and
visitors.”
Mohamed Kamal, Managing
Director of Wilshire Foods, the
franchisee for Subway in the
UAE, added: “The Galleries at
Downtown Jebel Ali aims to be a
holistic, sustainable and interactive
community, and we are excited to
be a part of it.  We have signed a 10
year lease.”
International firms with
corporate offices here
include Ericsson, Kraft Foods,
L’Oreal, Permasteelisa Gartner
and, most recently, US-based
SPX.
The Galleries comprises
eight buildings, separated
by a communal landscaped
plaza housing a 300-seat
amphitheatre and 105 square
metre screen, which, when
complete, will provide a focal
point for cultural events and
entertainment. A-grade
office and retail space can be
leased now, while residential
accommodation is due to
come on line later this year.
Located on Sheikh Zayed
Road, close to the Jebel Ali
Free Zone, The Galleries will
be served by the Dubai Metro when
the RTA opens its remaining Red
Line stations.
Damac Properties has
announced the structural
completion of its 8th project over
the last one year with the final
concrete pour on its Park Towers
project at the Dubai International
Financial Centre (DIFC). The 46-floor
dual-tower development, designed
by Gensler, is due to be handed over
later this year. It being constructed
by Sharpoorji Pallonji.
Damac has also announced that
it has handed over new construction
contracts for developments in
Business Bay, Reem Island and
Egypt as part of its commitment
to construction and delivery of its
projects.
Ziad El Chaar, General Manager
of Damac Properties, added: “In
recent months the construction staff
here have been working at a rate of
completing one floor every five days.
So I would like to thank them for this
tremendous team effort.”
Park Towers will offer more
than 500 apartments in a range of
sizes. Thanks to its glazed finish,
each apartment will offer stunning
uninterrupted views of the growing
and maturing DIFC landscape.
External glass and aluminium
cladding continues at pace and
the building’s distinct blue double
glazed finish is now clearly visible.
Arabian Aluminium – who also
worked on the record breaking Burj
Khalifa project, is carrying out the
cladding at Park Towers.
Mr Chaar added: “To reach the
top floor of the building marks
a significant stage in the entire
construction and development
process. We will now be working
hard to continue with the same
focused progress on the exterior
finishing of the building while the
MEP works and interior designs and
specifications are finalised.”
In addition to offering freehold
residential units for both UAE
nationals and expatriates, Park
Towers will feature three levels of
distinctive retail, seven levels of
state-of-the-art offices. In addition
it will have excellent connectivity
with direct pedestrian access to the
DIFC retail spine and financial centre
and is within easy walking distance
of the Metro stations - the main one
of which has already started serving
the area.
Developers of Victory
Heights will be handing over the
community’s 400th villa this month,
hitting an important milestone in the
full delivery of the golfing residential
development, which lies within the
heart of Dubai Sports City. The 961-
unit luxury project is a joint venture
between Dubai Sports City and the
Bahraini investment bank Arcapita,
and surrounds the award-winning
The Els Club golf course, designed
by World Champion golfer Ernie Els.
Already this year, 100 per cent of
the villas in two of the development’s
seven villages have been handed
over to homeowners, who have
praised the community for its
green and peaceful surroundings,
and location at the heart of the
world’s first residential development
dedicated to sports.
“This is a key milestone in the full
completion of Victory Heights, and
shows that we are moving ahead
with delivery on our villas, despite
last year’s economic downturn,”
said Talal Chihabi, Head or Sales,
Marketing, PR, and Customer
Relations at Victory Heights.
“The community’s close
proximity to the world-class sporting
facilities of Dubai Sports City is also
proving a big draw for people who
enjoy leading an active lifestyle.
There are jogging tracks around the
development, as well as dedicated
children’s play areas, and parks
where we hold community events.
Living here makes you feel as if you
are a million miles away from the
hustle and bustle of Dubai,” Chihabi
added.
Villas in the development
are built in three different styles;
authentic Spanish Andalusian, bold
Mediterranean, and classic European
styles, and cost between Dh800 and
Dh1,300 per square foot to buy.
Victory Heights
DUBAI REAL TIMES
47
 COMMUNITY
Family fun at The Walk
D
ubai Properties Group
delivered a wide range
of family-focused
entertainment and
activities at The Walk at Jumeirah
Beach Residence, as part of the 15th
Dubai Shopping Festival (DSF), the
annual retail and entertainment
extravaganza. Families enjoyed
a high-energy Fun Fair located
adjacent to Sheraton Hotel featuring
a thrilling selection of rides and
amusements including a ferris
wheel, roller coasters, bumper cars,
and water rides.
There were also strolling Raqsaat
performers entertaining visitors
with traditional international dances
throughout the festival.
The DTCM Heritage Village
offered guests extraordinary insight
into Emirati culture and heritage.
An exhibition on the centuries-
Win a cuddly toy playing hoopla at the fun fair
DUBAI REAL TIMES
48
old art of falcon hunting, a pearl throughout the month-long bargains, raffles, sales promotions,
demonstration, horse riding, mock Festival, along with the DSF’s distinct concerts and performances
wedding ceremonies, plus arts and
crafts and traditional bands were
enjoyed by guests of all ages.
In addition, Covent Garden
Market will offer a European-style
shopping experience with trendy
clothes, dazzling jewellery, unique
accessories, authentic decor,
beautiful artworks, beauty products
and toys.
The Walk at JBR has quickly
emerged as one of the most
distinctive and popular
entertainment and shopping
destinations in the area. The unique
1.7 kilometre outdoor shopping
boulevard has 305 shops situated
on both the plaza and ground
levels. DPG remains committed to
delivering a host of family friendly
events each year with activities
Raqsaat performers, featuring traditional dances from Lebanon, Spain, Palestine,
Morocco, Turkey, and Hawaii
Looking for a pearl in an oyster
JBR’s Covent Garden Dubai Properties Group hosted ‘Heritage Revisited’, an evening filled with traditional activities for Seniors from The Community Centre in Dubai
and Sharjah. Held at the Heritage Village in The Walk at Jumeirah Beach Residence, senior citizens were entertained with a host of cultural
activities including the Arabian horse show, Emirati wedding, traditional handicraft, dances and local cuisine. The traditional evening also gave
them an opportunity to share their own memories of Dubai and to discuss their views on the vast changes and growth that they have witnessed.

DUBAI REAL TIMES

49
 COMMUNITY
Charitable deeds
I
t was a fun filled exhilarating
Saturday at Safa Park for the chil-
dren of Senses Special Needs
Centre in Dubai as well as a
team of volunteers from Al Mazaya
Al Mazaya Holding held a Flea Market in Safa Park for Senses Special Needs Centre
Holding when they participated in
the Flea Market on 6 Feb as part of
its corporate social responsibility
programme. The initiative was or-
ganised by staff in the Dubai office
that collected a variety of items from
donors for this purpose. These were
then sold to the general public with
the proceeds from the day’s activ-
ity going towards the furnishing of
a new residential centre which has
been built to cope with the ever in-
DUBAI REAL TIMES
creasing number of students.
The sale was attended by the stu-
dents of the Centre along with their
caregivers; a few of the students
assisted with the stall whilst others
played games with fellow park visi-
tors.
Jasim Al Ghanim, AVP of Market-
50 ing at Al Mazaya Holding, said, “This
initiative was about sharing, accep-
tance and social cooperation as well ing physiotherapy, rehabilitation, ogy park and the funds raised will
as financial support. I’m sure that occupational and speech therapy in contribute to the centre’s mission
today was just as thrilling an experi- addition to various educational and to provide high quality, integrated
ence for the company team as it was entertainment activities. education services and therapies for
for students in the Centre. We hope Due to the increasing needs of children with special needs.
the centre, Al Mazaya The launch ceremony was held in
Holding plans to hold the presence of Dr. Mohammed Al
more fundraising Zarouni, Vice-Chairman and CEO of
events going forwards. Dubai Silicon Oasis Authority (DSOA),
Dubai Silicon Oa- and Ahmad Hashim Khoury, founder
sis recently hosted an of Rashid Paediatric Centre, as well
event to launch ‘Dubai as business partners and employees.
Passport’ within its Children from the Rashid Paediatric
premises. An initia- Therapy Centre entertained the au-
tive of Creative Zone in dience with artistic performances.
support of the Rashid Commenting on this initiative,
Paediatric Therapy Dr. Zarouni said: “We are pleased to
Centre, the passport- support the Rashid Paediatric Ther-
like booklet presents apy Center whose noble mission ex-
its holder with special tends to supporting the disabled. In
offers and discounts in contributing to this campaign, DSOA
Dubai and other emir- hopes to reach out to the children at
ates at over 52 outlets this dedicated centre and assist them
comprising F&B, retail, in receiving what is rightfully theirs
entertainment and in terms of education and therapy.
pharmacies. DSO will We also encourage all organisations
promote the passport to initiate similar activities among
that our efforts in this regard will among the companies and em- their employees that will lead to the
encourage the public to engage in ployees operating at the technol- enhancement of the community as
similar activities”
The Senses
Centre is a pri-
vate, non-profit
organisation lo-
cated in Jumei-
rah that relies on
donations from
the public for its
survival. It pro-
vides care and
support for both
residents and
out-patients. It
is supervised by
a group of quali-
fied staff, includ-
ing doctors and
paediatric spe-
cialists provid- Dr. Mohammed Al Zarouni and Ahmed Khoury with children from Rashid Paediatric Therapy Centre
a whole.” A wholly-owned entity of the Help THE One give disadvan- are available at two prices; one for
Dr. Al Zarouni kicked off the cam- Government of Dubai, Dubai Silicon taged children hope by purchasing a spectacular, large-format limited
paign by buying the first Dubai Pass- Oasis is the state-of-the-art technol- Bobby Sager’s visually inspiring cof- edition version and the other for the
port himself. The event concluded ogy park that provides the right en- fee table book, featuring images distribution edition, These collec-
with DSOA and the Rashid Paediatric abling environment for companies used by Sting during his 2007-2008 tor’s items are so much more than
Therapy Center exchanging memen- looking to set up their regional head- Invisible Sun performances. The your average coffee table books. All
tos. quarters and research and develop- Power of the Invisible Sun by entre- proceeds go towards the Hope is a
Ahmad Hashim Khoury said: “We ment divisions in the Middle East preneur turned philanthropist Bobby Game-Changer Project, which de-
are grateful to and North Sager is a captivating pictorial collec- livers indestructible soccer balls to
Dubai Africa re- tion of his encounters with children disadvantaged children. Each ball is
Silicon gion. in war-torn areas of the world such a lasting symbol of hope, represent-
Oasis for as Afghanistan, Rwanda, Pakistan, ing the human spirit’s ability to over-
coordinat- Palestine, Sri Lanka, Kenya and Zim- come suffering - the power of the
ing this babwe. Taken over the past eight invisible sun.
marketing years, Sager’s powerful photographs As Bobby said to THE One’s CEO
c amp ai gn depict refugees, orphans, child sol- Thomas Lundgren the first time they
whose re- diers and just plain kids living with met, “Be selfish, go help someone!”
turns will conflict, disaster and displacement. The book is exclusively available at
support the But more importantly, they artfully THE One Theatres in Jumeirah and
Rashid Pedi- capture the transcendent spirit of Mall of the Emirates in Dubai, Sahara
atric Therapy hope in each child’s eyes, reveal- Centre in Sharjah and Khalidiya in
Centre. This ing joy, innocence Abu Dhabi.
is especially and strength. Residents and visitors enjoyed a
significant at The book, vehicular delight last month when
a time when which in- Emaar Properties once again held its
several organi- cludes Downtown Dubai Classic Car Show
sations have a fore- with local owners driving and dis-
ceased their cor- word by playing their vintage vehicles in the
porate social ac- musician sun. The show was put together by
tivities and char- Sting, aims Emaar with the support of the Auto-
ity contributions.” to inspire mobile & Touring Club of the United
Dr. Zuhair action Arab Emirates, a member of the ‘Fé-
Abdel Rahim and deliver dération Internationale des Véhicules
Maimani, General hope. They Anciens’.
Manager for Cre- Public’s Choice 2nd winner was Tani Rienben – Triumph TRA3
ative Zone, said: “The Dubai
Passport charity campaign
aims to support important
causes such as offering fi-
nancial, emotional and so-
cial support to people with
special needs. It also offers
the tourism, entertainment
and commercial sectors of
Dubai to participate in this
initiative by offering ben-
efits to consumers through
special discounts.
In line with its dedication
towards corporate social re-
DUBAI REAL TIMES

sponsibility initiatives, DSOA

has been actively support-
ing causes and organised
diverse activities such as a
health awareness campaign,
blood donation drives, and
seminar on H1N1. It also
marks the World Environ-
ment Day with tree planting 51
at DSO.
 Public’s Choice 3rd winner was Al Attar- Pontiac GTO

The four day event was adjudged and the winners were:
1. Pre World War I 9. Public’s Choice
Mohamed Al Fahim; Morris Oxford 1914 Marzooq Al Mansoori –
2. UAE Award • Chevrolet Impala 1959
Ahmad Al Jarwan – Sharjah Musuem; 1931 Auburn Speedster • Tani Rienben – Triumph TRA3
3. Dubai Award • Al Attar - Pontiac GTO - The Judge
Tariq Al Gamzy; Triumph TR4A – Red 1967 10. Pre World War II
4. Emaar Award Khaled Baker; Rolls Royce Phantom 1934
Marzooq Al Mansoori; 1959 Chevrolet Impala 11. Modern/Classic Car
5. Heritage Hisham Al Rifai; Pontiac 1978 Trans An Gold Colour
Arnd Springer; Volkswagen Samba 1966 12. American
6. Classic Truck Car May Maqzoomi; Corvette Stingray 1962
Nasser Mohammad Al Mansouri; 1946 Chevrolet Pick Up 3100 13. European Car
7. Club Merit Ahmad Abdulrahman; Rolls Royce Chinese Eyes, Silver
Rafiq Mahmood ; White Trans Am Coupe 1963
8. Parade Car 14. DDCCS 2010 – Best of Show
Luke Walker; London Taxi Serge Lupa; Ferrari Dino 1970 246 GT
DUBAI REAL TIMES

(L-R): Marc Dardenne, Chief Executive

Officer, Emaar Hospitality Group;
Ahmad Al Matrooshi, Managing
Director – UAE, Emaar Properties; Serge
Lupa owner of Ferrari Dino 1970 246
GT which won the Downtown Dubai
Classic Car Show – Best of Show award;
Mohammed Ben Sulayem, Vice President
of the Federation Internationale de
l’Automobile FIA and President of
ATCUAE and Horst Bruning, President,
FIVA at the award ceremony of the
Downtown Dubai Classic Car Show held
52 at Emaar Boulevard.

Green design initiatives in
ready-built campus
The British University in Dubai applies sustainable features in design at new Dubai International
Academic City Campus
E
ffort is needed for the UAE
to do their part in applying
environmentally-conscious
initiatives in design and
construction, said a Professor at The
British University in Dubai (BUiD), a
research-based postgraduate uni-
versity, following a recent conver-
sion at their new campus. Located
in phase three at Dubai International
Academic City (LEED Silver certified)
BUiD’s new building was provided as
core and shell, allowing the school
to fit the interior with its sustainable
design plans for lighting, cooling,
partitioning and flooring.
The design for BUiD’s new cam-
pus was overseen by Professor Bas-
sam AbuHijleh, the Atkins spon-
sored Head of Sustainable Design of
the Built Environment who believes
conscious changes to the design of
an office or home can have a very
positive impact for the environment.  load, individual thermostats have
International consultants Atkins have
been supporting BUiD over a num-
ber of years and additionally funds
the position of the Atkins lecturer, Dr
Abeer Shaheen AlJanahi, its special-
ist in architecture and urban design.
“Our new campus only allowed
us to make the necessary green
changes to the interior of the build-
ing so we worked with what we had.
But well thought changes go a long
way, not just from an environmen-
tally-conscious perspective, but also
from a social and cost perspective,”
Professor AbuHijleh said.
BUiD has maximised the penetra-
tion of natural lighting within the
building and used energy efficient
lighting throughout the building
Professor Bassam AbuHijleh
improving the lighting quality, and
reducing cooling-load and electric-
ity, in comparison with the standard
practice artificial lighting generally
used throughout the UAE.
To further reduce the cooling
been installed in all rooms within
the BUiD campus, allowing staff to
set the temperature control to their
liking and to switch off the air condi-
tioning when not in use.
Thermal and sound insulation
have also been applied to improve
comfort, reduce energy use and re-
duce noise levels between offices
and classrooms.
BUiD used low VOC environ-
mentally friendly flooring material
throughout the building, which im-
proves air quality and reduces vola-
tile organic compounds (VOC), bad
odours, dirt accumulation, and germ
build-up.
“With the right knowledge,
minimal effort can do a lot towards
providing a sustainable and green
home or office environment that
brings added benefits, such as low-
ered electricity and cooling charges,”
added AbuHijleh.
In addition to the environmen-
tally-friendly implementations, BUiD
also used lots of glass within the
building design to give a greater
feeling of space and inclusion, and
created a dedicated student area
to facilitate academic life for its stu-
dents.
The Sustainable Design of the
Built Environment programme at
BUiD also offers students a dedi-
cated Atkins Digital Design Studio,
equipped with the latest software
and hardware to use for their proj-
ects.
How Dubai Pearl achieved
gold pre-certification
Dubai Pearl, the 20 million square
feet integrated sustainable destina-
ENVIRONMENT
tion, overlooking the Palm Jumeirah,
has attained pre-certification from
the US Green Building Council (US-
GBC) at the Gold level for Leadership
in Energy and Environmental Design
(LEED). This brings Dubai Pearl a step
closer to setting a new precedent
for sustainable urban communities
in Dubai.
Leed is the internationally rec-
ognised benchmark for the design,
construction and operation of high
performance green buildings across
the real estate industry. Its five key
principles of sustainable site de-
velopment, water savings, energy
efficiency, materials selection and
indoor air quality, provide a suite of
standards for environmentally sus-
tainable construction practices.
Complying with the guidelines
of the rating system, Dubai Pearl
will utilise environment-friendly
technologies to conserve energy,
recycle water and re-use assets. A
‘green’ environment will be created
through the Leed compliant system
which will reduce electricity, gas and
water used by the community and
help in the optimisation of air con-
ditioning, light control and car park
ventilation.
Large-scale solar boosted hot wa-
DUBAI REAL TIMES
ter generation plant, high efficiency
building façade, optimized ventila-
tion system for one of the largest
undercover car-parks in the world,
extensive grey water collection and
re-use, green roofs and heat recov-
ery systems will be integrated into
the development.
Abdul Majeed Ismail Fahim, 53
Chairman of Pearl Dubai FZ LLC said:
 “Through sensitive and intelligent
design, this sets new standards for
environmental and lifestyle sustain-
ability, without compromising the
high standards of luxury that char-
acterise Dubai as a destination. The
project’s commercial success to date
endorses our commitment to deliv-
ering a combination of sustainability
and stakeholder value as we enter
a new phase in Dubai’s develop-
ment.”
The development maintains a
waste management plan to ensure
that recycling of material is maxi-
mised and targets that encourage,
minimise and avoid waste are iden-
tified. The project will also salvage
non-hazardous construction and
demobilise debris, while all demoli-
tion waste from the site clearing will
be reused by Dubai Municipality for
land development work.
The Dubai Pearl master-plan,
which combines four towers with
classically inspired podium buildings
set in a ‘walkable’ area, will incorpo-
rate recycling facilities for paper,
glass and food-waste. While over 50
per cent of the site area will be pub- Techem HQ
lic open space, almost 45 per cent of
it will be landscaped. Dome Interna- ling this issue and recently published mann says. tended effect: It looks better, has a
tional, a leading UAE-based environ- forecasts of saving potentials. Hans During the last year, energy con- more pleasant interior environment
mental service provider, conducted Altmann, Techem’s Regional Manag- sumption in the UAE rose by seven and the building’s prestige is higher.
an environment impact study for er for the MENA region, states that if per cent and is expected to increase Yet, we should introduce norms that
this development that has been de- a three-tiered approach is followed, even further with the rapidly grow- do not sacrifice on the customer’s
signed with a focus on the future. energy savings of up to 25 per cent ing population, property projects comfort and design interest, and at
are possible. and other business opportunities. the same time, minimises the nega-
Energy usage in the tive environmental impact.”
1. Implementation of price adjust- 2. Introduction of energy-efficient This suggestion is in line with
spotlight ments standards and regulations for development plans and projects of
Rising demand, rising concerns, “At first, the way tenants are charged buildings the UAE, with an increased trend in
three practical solutions in the UAE make them generous with The second energy-saving measure Abu Dhabi, with the aim to improve
As population growth accelerates, their energy consumption. We have is the introduction of efficiency stan- ecological performance of buildings
particularly in developing countries seen great moves from the UAE gov- dards and regulations that would as the main concerns of sustainable
across the GCC, the region is con- ernment toward boosting ‘slab’ en- enforce developers to boost the and low energy building practices.
suming energy at an unprecedented ergy tariffs, which puts households’ implementation and production of
rate. According to the United Na- energy consumption on certain more efficient systems, appliances 3. Implementation of rules and
tions, by late 2008 the GCC’s popu- levels. This determines their energy and equipment. regulations to reduce energy con-
lation growth had reached 4.77 per consumption based on the specified As Hans Altmann explains, “New sumption
cent. Likewise, on the business side, level. However, there is room to op- environmental standards such as the The third aspect, Hans Altmann
DUBAI REAL TIMES

the region is struggling to build
power generation capacity fast
enough to meet growth in demand.
Energy requirements are expected
to reach shocking levels rising 50 per
cent of GCC’s electricity usage over
the next years.
Leading global energy services
54 provider Techem has addressed
ways and practical solutions of tack-
timise this system, whereby pricing
for energy can be based on actual
consumption, which in the long-
term makes households more aware
and create an incentive for the care-
ful use of energy. This is especially
important for air conditioning, the
greatest energy devourer account-
ing for over 50 per cent of the UAE’s
total energy consumption,” Hans Alt-
Green Building Code and Estidama
have always been on the top of the
UAE’s agenda. There are bans for cov-
ering a facade for glass or aluminium
skin buildings due to their thermally
inefficient nature. The use of glazed
facades in modern buildings has
gained increased popularity, just
drive along Skeikh Zayed Road, and
you will see that it does have the in-
points out, is the implementation of
rules and regulations to reduce en-
ergy consumption. There should be
incentives for tenants to save energy
and increase their level of awareness.
“This is a common practice around
the world and from our experience
the consumption-based energy cost
allocation method enables tenants
to pay for the energy they consume
and get rewarded for that,” he ex-
plained.
Techem has successfully experi-
enced in many European countries
that the customer’s learning curve
realised energy savings of up to 40
per cent. This practice is of utmost
importance for this region, where
air conditioning is the major energy
devourer, so that tenants are more
likely to change their heavy energy
use pattern as regulations for a fair
pay-for-use model reward the cau-
tious consumer by paying less.
All in all, it is clear that there is
room for improvement for tenants
in terms of a more energy-conscious
behaviour. Applying already estab-
lished standards and systems such
as Techem’s solutions based on its
long-term success and experience
implies that the wheel does not
need to be reinvented.
Applying a hybrid set of steps
would have a significant impact on
a practical basis, not just theoretical;
a mix of adjusting prices for energy,
along with energy-efficient stan-
dards and regulations for buildings
culminated in the introduction of
rules and regulations for tenants.
As a result, the energy shortage
that the GCC is currently facing –
clearly exemplified by the blackouts
in Sharjah during the summer with
an expected scope at a larger level
for this year - would be addressed.
Techem elaborated on these practi-
cal solutions in detail at their hosted
seminar on ‘Reducing energy costs
of your property up to 25 per cent’
in February.
and provide more landscaping. Its
aim is to add to the current six major
parks and 76 residential ones spread
throughout different areas of the
Emirate and provide every person
living in Dubai an equivalent of 25
square metres of green space each
by 2020 where currently this space is
13.18 square metres.
Mohammed Hassan Al Fardan,
Head of Promotion and Recreation
Office Public Parks and Horticulture
Department, Dubai Municipality,
said: “Our surroundings are highly
important for all of us and make
Dubai an attractive and pleasant
city in which to live - for this reason
we are pushing ahead with our ex-
tensive plans. Until now we have
only used locally produced plants
and flowers, cultivated in our own
greenhouses, to develop Dubai’s
green spaces. However, we have
ambitious ideas and there is now a
need for a greater variety of plant
and flower species.”
“This is why the Dubai Municipal-
ity supported IPM DUBAI 2010. This
horticultural industry event was a
perfect platform for us to meet in-
dustry leaders, review new products
and adopt new technologies to help
us in our upcoming ‘beautification’
projects,” he added.
Mona Dada, Project Manager,
planetfair LLC, said: “Now in its
fifth year, IPM DUBAI has become a
benchmark event for the horticul-
tural industry and is staged in Dubai
because of its world-leading infra-
structure as a transport hub. IPM has
grown in importance every year and
is an opportunity for professionals to
demonstrate technology, meet, dis-
cuss new plans and strike deals.”
Visitor footfall at this year’s IPM
exceeded 3,000 over the three
days, as it is clear that the demand
for flowers and plants and their re-
lated products and services remains
strong despite the global financial
conditions,” she added.
Running from March 8-10 at Air-
port Expo Dubai, IPM DUBAI, fea-
tured more than 160 international
exhibitors from 20 countries from
the fields of flowers, plants, technol-
ogy, floristry, sales promotion, plant
maintenance and plants logistics.
Trade visitors included plant pro-
ducers and breeders, seed traders,
landscape gardeners, retail centres
and wholesalers, real estate devel-
opers, local government and the
hospitality industry. Visitors arrived
from the GCC, Levant, Kenya, South
Africa and Asia.
The show included participa-
tion from leading companies in
the UAE such as Alissar T&C, Al
Lokrit, Arabian Agriculture, Mirak
Agriculture, Gover Horticulture and
others. Seminars and live demon-
strations were held every day and
the Association of German Florists
(FDF) presented internationally
acclaimed floristry design. The lat-
est technology and techniques in
landscaping, irrigation, plant pro-
tection and seed plantation were
on display, along with floristry
accessories and sales promotion
items.
With a common goal to pro-
mote Dubai as the hub for horticul-
tural trade, the exhibition was sup-
ported by Dubai Airports, Dubai
Flower Centre, Dubai Municipality-
Public Parks & Horticulture and the
Ministry of Environment & Water.

Planting of 27 million
plants last year
Each person living in Dubai to have
25 square metres of green space
each by 2020
Twenty seven million flowering
plants were planted throughout
DUBAI REAL TIMES

Dubai in 2009 meaning the Emirate

is getting greener every year accord-
ing to Dubai Municipality just before
before the start of IPM DUBAI 2010,
the Middle East’s only event dedi-
cated to the horticultural industry.
Dubai Municipality has also con-
firmed its plans for 2010 and 2011 to
increase green areas in Dubai by four 55
per cent per year, open new parks
 LEGALLY SPEAKING
Tendering tips and traps
By Al Tamimi & Co
T
his article will touch on
some of the fundamental
legal aspects of the
tendering process relating
to construction and engineering
projects and offer some guidance
on how best to avoid problems
during this crucial stage of contract
formation.
Tendering for large and complex
construction or engineering projects
can be a very expensive exercise
for employers and tenderers alike.
However, it would be money well
spent if the objectives of tendering
were achieved.
Most industry players will agree
that the main objectives of tendering
is two fold: firstly, the tendering
process enables the employer to
secure a suitable contractor to
carry out the intended works at a
competitive price; secondly, the
process provides a level platform
DUBAI REAL TIMES
for participating tenderers to
understand the requirements of the
works and the various risks involved
in carrying them out before deciding
on their bid price.
In a heated construction market
such as Dubai was recently, parties
do not often appreciate the legal
56 aspects of the tendering process.
During the previous frenzied
market conditions, stakeholders of
the construction industry were too
engrossed in negotiating and closing
deals as quickly as they could after
the tender closing dates. From our
experience there have been instances
where parties have compromised on
the legal issues during the tender
process for fear of missing the set
milestones of a particular project.
The tender process
The tendering process in the
construction and engineering
industry has developed into a
very comprehensive and complex
procurement process. It often
involves many steps and procedures
which tenderers must undertake
and numerous conditions that must
be satisfied before they are eligible
to move to the next stage of the
process.
The following provides the
different phases of a tendering
process. These phases were
extracted from a guideline prepared
by the International Federation of
Consulting Engineers (FIDIC) (see
The FIDIC Contracts Guide First
Edition 2000). This outline of phases
also illustrates a typical tendering
process for a construction project in
the UAE:
• Pre-qualification phase
At this phase the employer will set
its selection criteria (for example,
contractors who are experienced in
a specific type of engineering works)
and invites prospective tenderers
who satisfy the said criteria to submit
their details and capabilities. The
objective of this phase is to enable
the employer to select suitable
contractors to proceed to the next
phase.
• The tender invitation phase
The employer issues an invitation
to the shortlisted contractors (those
who were selected from the pre-
qualification phase) or to the public
at large (if no pre-qualification phase
was carried out) to participate in the
tender process.
• The tender clarifications and
addenda phase
During this phase, each of the
tenderers is expected to raise any
queries in relation to the tender
documents or the requirements
of the employer to enable them to
price their offer or bid. In response,
the employer will issue written
clarification to the queries. The
employer may also issue tender
addendums amending any part of
the tender documents. Tender site
visits are usually carried out during
this phase.
• The tender offer or bid
submission phase
Tenderers submit their offers or bids
before the stipulated deadline along
with the required tender security.
• The tender opening and post
tender clarification phase
The employer opens and evaluates
the offers or bids and seeks
clarifications from the tenderers
regarding their offers or bids (if
necessary).
• The award phase
The employer issues a letter of
acceptance to the successful
tenderer.
• The formalisation of contract
phase
The successful tenderer signs a
formal agreement with the employer
for the execution of the project.
With regards to public
procurement in the UAE, there
are laws which govern public
procurement processes. In the
Emirate of Dubai, Law No.6 of
1997 regulates contracts with the
government departments of Dubai.
Law No.6 sets out the various
methods of procuring contractors
by the Government of Dubai which
include public and closed tender
processes. This law also prescribes
the procedures by which tenders
are to be conducted. The prescribed
tender procedures are generally
in accord with the phases set out
above.
The two-stage
contract
From a legal perspective, an
invitation to tender or a request for
tender (RFT) document should be
framed in such a way that it does not
create any legal relationship between
the invitor (the employer) and any
prospective tenderers at large.
Unless and until the prospective
tenderers have participated in the
tender process, there should not be
any legal relationship between the
invitor and each of the prospective
tenderers.
The common understanding
is that a contract will come into
existence if and when the invitor
or the employer issues a letter of
acceptance or letter of award in
response to the tender. However
due to the complexity of the
construction tender process, each
of the parties participating in the
process, including the invitor, will
be bound by a set of obligations
throughout the process. The fact
that tenderers are required to
furnish tender securities or tender
bonds is an indication that there
is a contract in place. The typical
tendering process for a construction
or engineering project is in effect,
from a legal perspective, a two-
stage contract.
The first stage
contract
The first stage begins when the
employer issues an invitation
to tender or RFT. By issuing the
invitation, the employer is making
an offer to each of the prospective
tenderers to enter into the first stage
contract or the ‘tendering contract’.
The underlying obligation of the
employer under this contract is its
promise to consider each of the
bids that the tenderers submit in
accordance with the terms of the
tender invitation. In consideration
of the employer’s promise, each
tenderer will deploy its resource to
participate in the tender process
and in turn promises to execute
the project in accordance with its
bid should the employer accepts
it. Therefore, it can be argued
that individual tendering contract
commences when each tenderer
begins to participate in the tender
process.
It is common industry practice
for employers to include in the
tender invitation a document
usually labelled as the ‘Instructions
to Tenderers’ or the ‘Conditions of
Tendering’. These documents will
set out the obligations of the parties
during the tender process for a fixed
period of time or until a specified
event occurs (the conditions of
tendering).
It is crucial for all parties to
understand and appreciate their
obligations during the tender
process. Depending on the terms
of the conditions of tendering, a
tenderer may be disqualified from
the tender process if it fails to comply
with the conditions. On the other
hand any breach on the part of the
employer may entitle the aggrieved
tenderer to recover damages.
Therefore, it is not surprising to find
in the conditions of tendering a host
of rights that favour the employers.
Some of these rights are discussed
below.
Employers’ overriding
rights
As mentioned earlier, it is the
promise of the employers that
they will evaluate and consider the
individual bid submitted by each
of the tenderers. Therefore in the
absence of any express terms to the
contrary the employers are obliged
to evaluate the bids and award the
project to the successful tenderers.
Otherwise, the employers may be
liable to the tenderers for the wasted
costs and expenses incurred in
participating in the tender process.
However, it is not uncommon
to find a term in the conditions
of tendering which provides that
the employer will not be bound to
accept the lowest priced bid. Given
the current economic climate,
employers may also include in
the conditions of tendering an
absolute right for them to suspend
or cancel the tender process at any
time. With such discretionary rights,
the employers would be able to
reconsider the timing or feasibility
of their projects should they need
more time to secure the necessary
funding, or if the market turns for the
worse.
Other additional rights that
employers might set out in the
conditions of tendering include
the right to vary the procedure and
timing of the tender process and the
right to waive any irregularity in the
bids. At times, these rights seem to
have gone beyond what is necessary
and reasonable at the expense of
transparency and fairness to the
tenderers.
Ultimately, employers need
to be mindful of the overriding
requirements of good faith under
UAE law whenever they exercise their
rights pursuant to the conditions of
tendering. They must bear in mind
that one of the main objectives of
tendering is to provide an equal
platform for all tenderers to compete
fairly. In this context, all tenderers
must be treated equally and fairly by
the employer throughout the tender
process. For example, each of the
tenderers should be given the same
information and clarification within
the same time as any other tenderers
during the process. Otherwise the
tender process may be seen as a
sham and the eventual exercise of
the employer’s right in turning down
unsuccessful bids could be construed
as an exercise of bad faith.
To avoid any allegation of
unfairness and bad faith, employers,
(including their consultants especially
those who are responsible for
conducting the tender process), must
ensure that each of the tenderers
receives equal treatment and
opportunity as any other tenderer.
If there is any additional information
which has arisen either in response
to a query of one of the tenderers or
late information that has not been
included in the tender invitation,
then the employer must ensure that
such information is disseminated
to all tenderers in a timely manner
(unless the information is only
relevant to a specific tenderer who
needs it in order to be able to submit
an alternative offer as allowed under
the conditions of tendering).
The procedure for disseminating
information to all tenderers is
often set out in the conditions of
tendering and is usually done by way
of conducting site visits, convening
tender clarification meetings and
issuing various tender documents
such as addendums, clarifications
and a collection of questions and
answers.
In the context of disseminating
information, we consider that the
practice of interactive tendering
should be encouraged, whereby
interactive sessions are built into
the tender process giving each of
the tenderers the opportunity to
discuss and clarify the requirements
of the employers and perhaps to
further develop the specifications
or project brief contained in the
tender documents. Such sessions
can also be implemented after the
tender closing date as long as each
of the tenderers is given an equal
opportunity to revise its offer or
bid after taking into consideration
any information arising from these
sessions.
Whilst the interactive sessions
must be conducted in strict
confidence in order to protect
the know-how of the tenderers,
transparency and fairness must
prevail such that any material
information or errors discovered
during the sessions are shared
amongst the tenderers by way of
issuing further tender clarifications
DUBAI REAL TIMES
or addenda. Careful planning and
staging of such sessions will promote
a truly competitive and effective
tendering process.
Tenderers’ risks
In most conditions of tendering there
are different types of disclaimers that 57
protect the employers. Employers

will usually disclaim
any responsibilities
for the accuracy
or correctness of
information provided
in tender documents.
Depending on the time
and budget constraints
of the particular
employer and the
scope and nature of
the intended works, it
is always advisable for
employers to include in
their tender document
the amount and details
of information that are
reasonably sufficient for
tenderers to appreciate
the risks that they will
be undertaking if they
are successful. This will
certainly promote and
encourage tenderers
to put in their most
competitive prices.
Conversely, if the
tenderers are to carry the burden
of making their own investigations
and enquiries as to the accuracy
and correctness of the information
contained in the tender documents,
then subject to the risk appetite
of the individual tenderer, most
tenderers would likely add on a
premium to their bid or offer prices
to cover the risks of any inaccurate or
incorrect tender information along
with other associated risks.
It is also a common requirement
for tenderers to assume the risks
of any misinterpretation, error or
mistake on their part in construing
the information given in the tender
documents and in pricing their bids.
In this respect, it is highly advisable
for tenderers to ensure that they
clearly and accurately record the
assumptions and interpretations
that they have adopted in pricing
DUBAI REAL TIMES
or formulating their bids. These
assumptions and interpretations
should then be discussed with the
employer during tender clarification
meetings. If the employer finds
it necessary, the appropriate
addendum or clarification may be
issued to all tenderers in order to
58 remove or minimise any ambiguity
in the tender documents.
The second stage
contract
The second stage sets in when the
employer, after due consideration
of the tender bids, issues its
acceptance of the successful bid.
Depending on the conditions of
tendering, it is usually upon the
issuance of the said acceptance that
a construction contract between
the employer and the successful
tenderer is created.
The conditions of tendering
would usually specify the event
upon which the second stage
contract, i.e. the construction
contract is deemed to have come
into existence. For example, it may
be provided that the construction
contract will be deemed to have
commenced on the day the
successful tenderer receives the
employer’s letter of acceptance.
And it is usually provided that until
a formal agreement is executed
between the parties the letter of
acceptance shall form a binding
contract between them.
However, for the employer’s
acceptance to be binding on the
successful tenderer, the terms of
the acceptance must in substance
correspond with the essential terms
of the tenderer’s bid. Otherwise
there cannot be a meeting of minds
between the employer and the
tenderer in order to form a contract.
What could be an essential term
to a contract is dependent on the
nature of the transaction itself. In
relation to construction contracts,
the contract price and time for
completion would be two obvious
terms that are essential to the
transaction.
A letter of acceptance that does
not correspond with the successful
tenderer’s offer will amount to a
counter-offer. The tenderer would
then be in the position to either
accept or reject the employer’s
acceptance. However, before the
tenderer rejects the employer’s
purported acceptance it must be
careful in determining whether the
employer’s terms of acceptance are,
in substance, different from its own
offer or bid, otherwise the employer
may encash the tender security
or bond on the basis that the
tenderer has failed to comply with
its obligation under the tendering
contract.
The tenderers also need to
be aware that there would be no
obligations on their part
to proceed with the
construction contract if
they do not agree with
the new terms introduced
in the employer’s letter
of acceptance. In this
situation they must
refrain from conducting
or acting in such a way
as if a contract has been
formed otherwise they
may be deemed to have
accepted the new terms.
Conclusion
As highlighted above,
it is very important for
parties to be aware of
their respective legal
obligations during the
tender process. Any
inadvertent default on
their part may give the
other party the right to
claim compensation. To
take an extreme view,
a defaulting employer may be
liable to a disgruntled tenderer for
the loss of chance of profits that
the tenderer may have earned but
for the employer’s breach of its
tender obligations. On the other
hand, a tenderer who refuses to
be bound by its bid may be liable
to the employer for the difference
between its tender price and the
higher contract price of another
tenderer who the employer
eventually engages. Therefore
the stakes are high for both the
employers and the tenderers if
they choose to ignore the legal
aspects of the tendering process.
As the global financial
crisis grips hold of the UAE
construction market, parties
should take the opportunity to
revisit their practices either in their
implementation of the tender
process or in their respond to
tender invitations.
Even though it seems that the
construction market in the UAE
is currently in a depressed stage,
it is certainly an opportune time
for employers to capitalise on the
lower construction costs and for
infrastructure projects to catch-
up with the building industry.

T
he economic meltdown is a
global phenomenon which
has had a knock-on effect
on the Dubai property
market. This article will consider how
external equity investment can be a
viable source of finance for property
developers as an alternative to bank
debt financing and in the absence of
unit purchaser payments.
The global recession has resulted
in reluctance by unit purchasers to
make timely payments to developers.
It has also resulted in reluctance
by banks to make available debt
financing to developers. As an
alternative, equity financing
provides investment funds to a
developer in exchange for a share of
the development company. Equity
financing is attractive for developers
because no interest expense is
incurred on funds invested and
investor influence over the business
can be curtailed. Generally, an
investor obtains returns on an equity
investment through dividends
which are payments made out of
the company’s profits. However,
in this way, a developer also gains
access to much needed capital from
the investor with no immediate
commitment to provide returns until
the company is profitable. But an
investor also gains in such scenario
as the investor has made an equity
investment in the development
company at a rock bottom valuation
given the economic cycle: he stands
to benefit from significant capital
gains as the economy improves and
the valuation of the development
company increases.
Technically, there are a variety of
ways that developers can raise equity
capital, each having its disadvantages
and advantages.
Developers may issue ordinary
shares to investors in return for
invested equity funds. Dividends
are distributed only if the company
is profitable and when the directors
so choose. A potential pitfall
of this approach is caused by a
shareholders’ right to participate in
voting. An investor who purchases
more than 50 per cent of the shares
of the development company will
generally be able to control dividend
declaration, allotment of shares,
and appointment and removal of
directors, (and thus control of the
board). In such scenario, if developers
issue ordinary shares they should
strive to retain more than 50 per
cent of the shares in order to retain
control.
To avoid some of the drawbacks
associated with issuing ordinary
shares, developers may consider
issuing non-voting shares with the
contractual right to a dividend of
a fixed percentage in priority over
other shareholders. Since the shares
carry non-voting rights, investors
cannot influence the running of
the company. However, developers
could issue such preference shares
with the right to appoint board
members thus granting a certain
level of minority board control to
such investors.
Another option that a developer
may consider is convertible debt,
which is a compromise between
debt and equity financing. An
investor’s loan to a developer may be
structured such that at the discretion
LEGALLY SPEAKING
The era of equity
By Shahram Safai
of the investor or at the occurrence
of a predetermined event, such loan
is convertible into shares.
The rights and obligations of the
investor and the developer, as well as
the rights and restrictions attaching
to shares issued, as discussed above,
are generally agreed and specified
in the memorandum and articles
of the development company
and in a shareholders agreement.
A shareholders agreement is a
contract governing the relationship
between the shareholders including
the financial relationship, process of
decision making and mechanism for
transferring and selling shares. Such
an agreement is a private agreement
between the shareholders and is
generally expressly agreed to take
precedence over the memorandum
and articles of association of the
company.
It is important to bear in mind that
approval from relevant governmental
organisations such as Dubai’s Real
Estate Regulatory Agency and the
Land Department are required for
the introduction of such investors.
Additionally the master developer
of the project in question must
be notified as most plot purchase
agreements require approval for
change of control or sale of shares in
a development company.
Given the low valuations of
property development companies
that have resulted from the global
recession, equity financing can
provide a viable solution to the
dilemma of the lack of financing for
property development companies
in these difficult times.
The above information is
not legal advice and is neither
intended to create nor creates a
lawyer-client relationship. Neither
the writers nor Afridi & Angell are
responsible for anyone relying on
the above information. You are
recommended to take independent
legal advice.
Shahram Safai is a lawyer,
a professional engineer and a
partner at the law firm of Afridi &
Angell in Dubai.
DUBAI REAL TIMES
59
 LEGALLY SPEAKING
Decree no. (1) of 2009
Regarding Rentals in the
Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler
of Dubai;
After perusal of Law No. 16 of 2007 establishing the Real Estate
Regulatory Agency,
And Law No. 26 of 2007 regulating Relationship Between
Landlords and Tenants in the
Emirate of Dubai as amended,
And Decree No. 2 of 1993 establishing Special Judicial
Committee for settlement of disputes between landlords and
tenants, as amended,
And Decree No. 27 of 2007 regarding rentals in the Emirate of
Dubai.
Issue the following Decree:
Article (1)
There should not be any rent increase in 2009 for tenants who
were leasing property units in 2008, which includes residential
and non-residential properties, if the rent in 2008 was equal to
or 25 per cent or less below the average similar rent.
Article (2)
As an exception to the provisions of Article (1) of this Decree,
the maximum rent increase percentage of property units in
the year 2009 for tenants who were leasing such units in 2008
shall be as follows:
a- If the rent value in year 2008 was 26 per cent to 35 per cent
less than the average similar rent;
DUBAI REAL TIMES
the maximum rent increase shall be equal to five per cent of
such value.
b- If the rent value in year 2008 was 36 per cent to 45 per cent
less than the average similar rent;
the maximum rent increase shall be equal to 10 per cent of
such value.
60
c- If the rent value in year 2008 was 46 per cent to 55 per cent
less than the average similar rent;
the maximum rent increase shall be equal to 15 per cent of
such value.
d- If the rent value in year 2008 was less than 56 per cent of the
average similar rent; the maximum rent increase shall be equal
to 20 per cent of such value.
Article (3)
For the purpose of this Decree the similar rent value of the
property unit means pursuant to “The Rent Index of the
Emirate of Dubai” applicable on the date of renewing the
tenancy contract.
Article (4)
1- The similar rent value shall be set pursuant to the Rent Index
of the Emirate of Dubai which is attached to this Decree.
2- The Real Estate Regulatory Agency shall review and update
the Rent Index of the Emirate of Dubai periodically.
Article (5)
The Real Estate Regulatory Agency shall coordinate with the
Special Judicial Committee for settlement of disputes between
landlords and tenants to set the relevant procedures to
implement the provisions of this Decree.
Article (6)
Any other provision in any other local legislation shall be void
to the extent it contradicts with the provisions of this Decree..
Article (7)
This Decree shall be published in the Gazette and enforced on
the date thereof.
(Signed)
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
This Decree has been issued in Dubai;
4 January 2009
Law No. 33 of 2008 residential, commercial or professional purposes or any other
legal activity.

Amending some provisions of Tenancy Contract: The contract by which landlord is

Law No. 26 of 2007 Regulating committed to enable tenant to benefit from the property for
specified purpose and period against specified consideration.
Relationship Between Landlord: Natural or Judicial person who has, by law or

Landlords & Tenants in the consent, the right of disposal of the property and to whom the
title of the property is transferred during tenancy period or to

Emirate of Dubai his representative or legal attorney, including the tenant

We, Mohammed bin Rashid Al Maktoum, Ruler
of Dubai;
• After perusal of Federal Law No. 5 of 1985, regarding Civil
Transactions and its
amendments,
• And Federal Law No. 10 of 1992 Promulgating Law of
Evidence in Civil and
Commercial Transactions and its amendments,
• And Law No. 16 of 2007, establishing the Real Estate
Regulatory Agency,
• And Law No. 26 of 2007 Regulating Relationship Between
Landlords & Tenants
in the Emirate of Dubai (referred to as the “Original Law”),
• And Decree No. 2 of 1993, establishing the Special Judicial
Committee to settle
Disputes between landlords and tenants and its amendments,
authorized by the landlord to sublease the property.
Tenant: Natural or judicial person who benefits from the
property, or part thereof, pursuant to a tenancy contract and
any person who receives the tenancy legally from the tenant.
Subtenant: Natural or judicial person who benefits from
the property, or part thereof, in accordance with a tenancy
contract signed with the tenant.
Rent: Specified consideration which the tenant is bound to pay
according to the tenancy contract.
Notification: Written notification sent by either of the tenancy
contract to the other party through notary public, registered
mail, personal delivery or by any technological means
approved by law.

Issue the following Law: Article (3)

Article (1) This law shall be applicable to leased lands and properties in
the Emirate, excluding free
Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29) & (36) of the
Original Law shall accommodations provided by natural or judicial persons to
be replaced with the following Articles: their employees.

Article (2) Article (4)

In implementing provisions of this law, the following words 1. The tenancy relationship between landlord and tenant shall
and terms shall have the be governed by a
meaning assigned to them, unless the text otherwise requires: tenancy contract describing the property in detail, the
DUBAI REAL TIMES

Emirate: Emirate of Dubai. purpose of the tenancy,

period, rent and name of owner if the owner is not the
Committee: The Judicial Committee authorized landlord.
2. All properties subject to this law, or its amendments, are to
Agency: Real Estate Regulatory Agency. be registered with the
Agency.
Property: Immovable property and its annexures rented for

61
 Article (9) Article (25)
1. Landlord and tenant must specify rent value in the tenancy 1. Landlord may demand eviction of tenant prior to expiry of
contract. If both tenancy period in the following cases:
parties have not specified the same or if it becomes impossible a. If tenant fails to pay rent value, or part thereof, within
to prove their thirty (30) days of landlord’s notification for payment;
agreement then rent shall be as per the similar rent. unless parties agreed otherwise.
2. The Committee shall specify the similar rent in accordance
with the standards of b. If tenant subleases the property, or part thereof, without
specifying the rent increase percentage applied by the Agency landlord’s written approval and in such case eviction shall
and in accordance be applicable to the tenant and the subtenant, and the
with the general economic circumstances in the Emirate, and subtenant’s right to refer to tenant for compensation
pursuant to the shall be reserved.
property status, the similar market rent in the same area and in
accordance with c. If tenant uses, or allows others to use, the property for
any valid legislation in the Emirate regarding properties’ rent illegal or immoral activities.
and any other d. If the leased property is a commercial shop and the
factors the Committee may decide. tenant left the same without occupation and without legal
reason for 30 continual days or 90 non-continual days in
one year; unless the parties agreed otherwise.
Article (13)
For the purpose of renewing tenancy contract, landlord and e. If tenant causes changes that endanger safety of
tenant upon expiry of the the property in a way that it cannot be restored to its
tenancy contract may amend any of the contract’s terms or original condition or if he causes damage to the property
review the rent whether by intentionally or due to his gross negligence to take proper
increase or decrease. If the parties do not reach an agreement precautions or if he allows others to cause such damage.
regarding this, the
Committee may decide fair rent considering the standards f. If tenant uses the property for purposes other than
referred to in Article No. (9) of the purpose it was leased for or if he uses the property
this Law. in a way that violates planning, building and land using
regulations.
Article (14)
If either party of tenancy contract wishes to amend any of its g. If the property is in danger of collapse, provided that
conditions pursuant to landlord must prove such condition by a technical report
Article (13) of this Law, then he must notify the same to the issued by Dubai Municipality or accredited by it.
other party not less than 90 days prior to expiry date, unless
both parties agreed otherwise. h. If tenant fails to observe legal obligations or tenancy
contract conditions within (30) days from date of
notification by landlord to abide by such obligations or
Article (15) conditions.
DUBAI REAL TIMES

Landlord shall be committed to hand over the property in

good condition that enables tenant to obtain the benefit
subject of the tenancy contract.
However, it could be agreed to lease uncompleted property
provided that the tenant completes the same and prepares it
in a good condition to obtain the requested benefit, and the
parties shall decide the party who will be liable for the costs of
this completion.
i. If development requirements in the Emirate require
demolition and reconstruction of the property in
accordance with government authorities instructions.
And for the purpose of this clause (1) of this Article the
landlord must notify the tenant through the Notary Public
or by registered mail.

62
 2. Landlord may demand eviction of tenant upon expiry
of tenancy contract limited to the following cases:
a. If the owner wishes to demolish the property for
reconstruction or to add new constructions that prevent
tenant from benefiting from the leased property,
provided that necessary licences are obtained.
b. If the property requires renovation or comprehensive
maintenance which cannot be executed while tenant is
occupying the property, provided that a technical report
issued by Dubai Municipality or accredited by it is to be
submitted to this effect.
Article (36)
The Chairman of the Executive Council shall issue the
necessary regulations, bylaws and
decisions to implement the provisions of this Law.
Article (42)
This Law is to be published in the Gazette and enforced on
the date thereof.
Issued by us in Dubai on 1 December 2008

c. If the owner of the property wishes to recover the

property for use by him personally or by his next of kin of (Signed)
first degree provided that he proves that
he does not own a suitable alternative property for that
Mohammed bin Rashid Al Maktoum
purpose. Ruler of Dubai
This Decree has been issued in Dubai;
d. If the owner of the property wishes to sell the leased 1 November 2009 A.D.
property. 13 Dhu Al-Qadah 1430 A.H.
And for the purpose of clause (2) of this Article, landlord
must notify tenant with reasons for eviction at least
twelve months prior to the determined date of eviction
subject that such notice be sent through the Notary
Public or by registered mail.

Article (26)
If the Committee decided for the landlord to recover the
property for his own use, or use by his first degree next of
kin pursuant to the provision of paragraph (c) of clause (2) of
Article (25) of this Law, then landlord shall not rent the
property to others for at least two years for residential
properties and three years for non-residential properties
from date of recovery of the property, unless the Committee
decides less period for reasons considered by it, otherwise
the tenant shall have the right to request the Committee to
order proper compensation to him.
DUBAI REAL TIMES

Article (29)
1. Tenant shall have priority to return to the property if it is
demolished and reconstructed or if it is renovated, provided
that rent value shall be fixed in accordance with Article (9)
herein.
2. Tenant shall benefit from the above mentioned priority
right within thirty (30) days from being notified by landlord.

63