Wednesday, November 27, 2013

Dubai Wins Bid For World Expo 2020 - New Boom For Dubai!

Dubai is on the cusp of yet another development boom as it seeks to strengthen its position as the leading business and tourism hub in the region.

Detailing the latest investment and development opportunities in Dubai, MEED(Middle East Economic Digest) has organized Destination Dubai 2020 to dissect, along with local and international experts, the various factors that will shape Dubai’s development trajectory in the next six years.

Among the highlights of the conference presentations and panel discussions include the impact of Dubai winning its World Expo 2020 bid, with leading stakeholders from across Dubai’s key government agencies outlining their future plans in detail for the first time after securing the rights to host the expo.

The total value to the economy of staging the event has been estimated at AED143.22bn. More than 277,000 jobs would be created between 2013 and 2021 as a result, with about 40 per cent in the travel and tourism sector. For every Expo employee, about 60 additional jobs would be sustained in the wider economy.

“MEED has organized Destination Dubai to track the exciting new developments happening in Dubai until 2020, a critical case especially in light of its winning expo bid and just a decade before the governments 2030 vision for the country. We wholeheartedly support Dubai’s Expo 2020 bid and look forward to working with our friends and partners in Dubai and the UAE to ensure the 2020 Expo will be the best ever," Ben Greenish, Managing Director, MEED.

Dubai’s bid dossier estimates hosting the expo will cost $8.7bn in total – $7bn in investments and operating expenses of $1.7bn. Capital expenditure will mainly cover the development of the expo’s planned 4.4 square-kilometer plot in Jebel Ali and connecting infrastructure such as extending the Dubai Metro’s Red Line.

However, investors surveyed by the local chapter of CFA Institute, a global organization of investment professionals, are concerned that a successful bid by Dubai to host the expo could lead to another economic bubble. The study measured the opinions of 216 investment professionals in the UAE, and found out that more than half of the survey’s respondents (55 per cent) were concerned that a successful bid for the Expo 2020 will create another economic bubble, and only a quarter believed the UAE has done enough to make its economy immune since 2008.

Meanwhile, Egypt-headquartered investment bank EFG Hermes says the expo will make the country’s debt situation more pressing than it is now. “If the next phase of the investment cycle, accelerated by the Expo, is not met by revenue-building measures and asset sales, this could result in total Dubai debt rising to 110-115 per cent of gross domestic product (GDP) by 2020, up from 102 per cent of GDP currently,” the lender said in a report.

Without a doubt, the winning expo bid will provide a massive tourism boost. It is estimated that over the six months of the event 25 million people would visit Dubai Expo 2020, with more than 70 per cent coming from outside the UAE.

Destination Dubai will track the road map to Dubai’s continuing economic recovery, providing investors and stakeholders insights on what is driving confidence in the Emirate’s equity market, which this year has seen a 60 percent rise in growing confidence in Dubai’s long-term prospects.

Of primary importance to the readers of this blog will be a dedicated session on the real estate sector that will provide attendees key insights on one of Dubai’s most critical growth drivers. “Real estate prices in the Emirate have risen more than 30 per cent since the start of the year on growing demand from local, regional and international investors. In addition, major private and government-related real estate projects involving billions of dollars of new investment in Dubai have been announced, opening a possible new boom phase in Dubai’s property market,” says MEED’s editorial director Richard Thompson.

Other initiatives that are transforming Dubai into an unrivaled global hub and the gateway to the high-growth emerging markets (CIS, Africa, China and India) will be comprehensively discussed at Destination Dubai, detailing the road map for the build up and creation of a genuine and holistic “destination” involving travel, industry, real estate, tourism, retail and hospitality infrastructure and support systems.

++ In my opinion Dubai's winning bid for World Expo 2020 is extremely POSITIVE for the real estate market in Dubai and the rest of the UAE. The best is yet to come!

Scheduled to take place on January 28-29, 2014 at the JW Marriott Marquis, Destination Dubai is sponsored by Hill International.

Monday, November 25, 2013

Dream-Marina 101 Moving Right Along!

Dream-Marina 101 is set to open by the end of 2014. This super-tall development in Dubai Marina is a comprehensive lifestyle project conceptualized by Sheffield Holdings Ltd.

Dream-Marina 101 seeks to promote a unique concept of haute living that encompasses nearly everything in terms of luxuries with world-class restaurants, roof top nightclub and recreational facilities. "We are proud to announce that nearly 80% of our hotel apartments are sold." said Abu Ali Malik Shroff, Chairman of Sheffield Holdings LTD.

The hotel will house 300 guest rooms and 420 branded hotel apartments featuring one and two bedroom units. The construction on the exterior of the tower is close to completion with the elevator going up to all 101 floors.

The interior finishing touches have been carefully chosen, with energy efficient light fixtures and Spanish ceramic tiles in every apartment. All internal doors are fire resistant, meeting international standards and ratings for the building. Nearly sixty million dirhams have been additionally spent on the interiors since the appointment of the hotel operator.

Dream-Marina 101 has confirmed partnerships with world’s leading restaurants such as Bombay Palace, which currently has branches in England, North America, Canada and India. Another highlight of Dream-Marina 101 is its roof-top bar which will be occupied by Ph-D, known for being the nightlife state-of-the-art in Manhattan, New York.

Shroff further added, "Dubai has and will always remain a fantastic destination for residents and tourists. We are offering a unique and hassle-free investment opportunity mirroring the growth of the Dubai real estate market. All our investors will enjoy 28 days of free stay in the hotel apartments per year, and will benefit from a guaranteed 75% return of the net profit".

++ Sheffield Holdings LTD is one of the leading Dubai-based private developers. Here is a link to their website:

Wednesday, November 20, 2013

UAE's Hadara Teams Up With Egypt's Rooya Group

UAE based development company, Hadra, has signed an MOU with Rooya Group, one of Egypt’s premier real estate developers. Hadara, which is a member of Tharaa Holding Group, has announced its plans to co-develop an upscale hospitality and residential project within Rooya’s Stone Park Katameya master development in New Cairo.

This project comes with recent announcements of Egypt’s credit rating increase by S&P, making it an attractive option for investors. The Stone Park Compound, winner of Cityscape Egypt 2013 Best Future Residential Project Award, will offer a selection of luxury residential and hotel apartments and villas, providing a resort-living style to its residents. The project consists of a series of luxury low-rise buildings surrounded by resort-style recreational facilities as well as a prestigious villa community offering standalone villas as well as townhouses.

The project will be part of the award-winning Rich Village series, a global luxury living concept developed by Hadara.

In addition, the project will be surrounded by many attractions, including a world-class Golf Course, Cairo Festival City Mall, the prestigious “Down Town” shopping district and City Stars Mall. Furthermore, The Stone Park Compound will feature many lifestyle and recreational facilities including restaurants, cafeterias, shops, a private club with pools, a spa, a children’s fun zone with indoor and outdoor play areas, tennis and squash courts and a multi-purpose sports field.

Mr. Tariq Ramadan, Chairman of Hadara, expressed his excitement about the opportunity to expand outside the UAE and into a stable and growing market. He said, “This luxury project will be suitable for GCC customers and investors. It demonstrates a true smart and safe investment since it offers capital appreciation and attractive returns. At the same time, all sales revenues will be deposited into an Escrow account dedicated only to the construction of the project as well as other project related direct expenses. This means that investors’ money is 100% protected and guaranteed to be spent on the project”.

Commenting on signing the MOU Architect Hesham Shoukri, CEO & Executive President at Rooya Group, quoted, “This partnership adds a new dimension to our Stone Park master development by developing a luxury project that attracts buyers and investors from outside Egypt, especially those from GCC countries. The unit owners will have the option to live in their units, hand them over to the hotel management company to rent them out for tourists, or a combination of both. This means that owners, especially those who are living in other countries, can enjoy a free 5-star living while on vacation in Cairo, and make money on their units when they are away. On the other hand, investors who choose to hand over the property to the management company, will enjoy attractive returns on their properties”.

++ Hadara is a newly established UAE-based real estate development company operating worldwide through the development of real estate projects owned or co-developed by it. The company was founded by Mr. Tariq Ramadan who is considered one of the leading real estate industry figures in the Middle East. Hadara’s vision is to become the most successful and innovative development company in the world. Hadara is a member of Tharaa Holding.

++ Rooya Group is one of the fastest growing real estate development and tourism investment companies in Egypt with an outstanding track record of successful completed or under development projects in Egypt valued at over US$ 2 billion. These projects include Stone Park Katameya in New Cairo, Telal Al-Sokhna Resort, Canals Village in Port Ghalib – Marsa Alam, and Telal Al Alamein on the North Coast.

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