week 17...friends again and get the economy moving again like we’ve never seen before, off the...

Week 17 SUNDAY, 26 APRIL 2020

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

© Asteco Property Management | 2020 | asteco.com

35 YEARS | CELEBRATING THE PAST AND

TRANSFORMING THE FUTURE | Page 1

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

COVID-19 REALITY: UAE LANDLORDS AND RESIDENTIAL TENANTS BEGIN RENT RE-

NEGOTIATION

SAVILLS PREDICTS 'STRONG RECOVERY' FOR OFFICE AND RETAIL SECTORS IN SAUDI

ARABIA, POST COVID-19

SAUDI BINLADIN GROUP HIRES HOULIHAN LOKEY FOR $15BN DEBT REVAMP

UAE PROPTECH START-UP URBAN LAUNCHES LANDLORD SOLUTION

COVID-19: UAE AUTHORITIES DIRECT EMIRATES TO EXPLORE RE-OPENING OF MALLS

AMAALA: REDEFINING LUXURY TRAVEL IN THE ETHICAL ERA

DUBAI

WHERE DUBAI PROPERTY RENTS HAVE RISEN AND FALLEN, Q1 2020

DUBAI'S DEYAAR TO GO AHEAD WITH CAPITAL RESTRUCTURING PLANS

BIE UNANIMOUSLY AGREES TO PROPOSE POSTPONEMENT OF EXPO 2020 DUBAI

MIRDIF TOPS LIST FOR VILLA RENTALS IN DUBAI, SAYS LATEST BAYUT Q1 REPORT

CORONAVIRUS: NO PAY CUTS, LAYOFFS, SAYS DUBAI'S MAJID AL FUTTAIM CEO

COVID-19: DUBAI MALLS AND OFFICES TOLD TO BE 'ON STANDBY' FOR REOPENING

WHAT'S NEXT - DUBAI REAL ESTATE NEEDS INNOVATIVE PUSH

ORGANISERS CANCEL ARABIAN TRAVEL MARKET 2020 IN DUBAI OVER GLOBAL COVID-

19 PANDEMIC

REAL ESTATE: WILL DUBAI'S PROPERTY BROKERS SURVIVE COVID-19?

HOMEFRONT: 'I'M ON UNPAID LEAVE AND MY LANDLORD IS CHASING ME FOR RENT.

HOW DO I PAY?'

CARREFOUR UAE PORTAL TURNS INTO ONLINE MARKETPLACE

ABU DHABI

ABU DHABI SEES 10% INCREASE IN BUILDING PERMITS ISSUED IN Q1







ABU DHABI'S LAND AND REAL ESTATE DEALS RISE 22% TO HIT MORE THAN DH19BN

IN FIRST QUARTER

ALDAR TEAMS UP WITH BANKS TO OFFER LOW INTEREST RATE HOME FINANCE

ABU DHABI ROYAL SAID TO INVEST $1BN IN MIDDLE EAST RETAIL GIANT LULU







ABU DHABI'S LAND AND REAL ESTATE

DEALS RISE 22% TO HIT MORE THAN

DH19BN IN FIRST QUARTER Thursday, April 23, 2020

The total value of real estate transactions in Abu Dhabi increased by 22 per cent to reach Dh19.2 billion in the first

quarter of 2020 despite the ‘exceptional circumstances’ the emirate faces in the battle against Covid-19, according

to government data.

About 7,600 land and real estate deals were carried out in the first three months of this year, up 5,085 on the

same period last year when the value of deals reached Dh15.8bn, according to Abu Dhabi’s Department of

Municipalities and Transport.

“The increase comes despite the exceptional circumstances resulting from the spread of Covid-19 – which casts a

shadow over the global economy,” DMT said in a statement on Thursday.

The high value of the emirate's real estate trading transactions comes as weeks of precautionary measures to

contain the spread of the coronavirus have taken a toll on businesses and resulted in pay cuts or job losses for

individuals.

There are signs, however, that restrictions may be lifted with officials in Abu Dhabi considering a staggered series

of reopenings across key sectors to support local retailers and businesses.

The DMT has exempted individuals and companies from 34 real estate registration fees until the end of 2020

including a 2 per cent sale and purchase fee and a 2 per cent off-plan sale fee, as well as charges on land

exchange, mortgage registration, mortgage transfer, mortgage amendments and mortgage redemption.

DMT said the value of real estate transactions amounted to about Dh8.7bn, comprising 3,613 transactions, while

the value of mortgages exceeded Dh10.5bn, involving 3,943 transactions.

Real estate sales were distributed across land, buildings and units, with land transactions making up 56 per cent

of the total sales during the first quarter with a value of Dh4.9bn in 1,224 transactions. Sales of real estate

building and units comprised 44 per cent of the total sales value, with 2,389 transactions making Dh3.8bn.

Meanwhile, the total value of mortgages in the first quarter reached Dh10.5bn with 3,943 mortgage transactions

carried out; land sales accounted for the majority of lending with a value of Dh10.3bn, making up to 98 per cent of

the total value. The share of real estate loans accounted for 2 per cent, equating to around Dh200 million and 110

mortgage transactions.

"This high value of real estate trading transactions can be attributed to the direction of our wise leadership and

vision to promote economic development and ensure an attractive investment environment based on the Abu

Dhabi Vision 2030 and the Abu Dhabi Government Accelerator's Programme 'Ghadan 21’ and the latest economic

stimulus package where DMT waives various real estate transaction fees,” said Dr. Adeeb Al Afeefi, executive

director of the real estate sector in the Department of Municipalities and Transport.

Al Reem Island attracted the highest value in terms of total sales at Dh2bn, followed by Saadiyat Island at

Dh1.5bn, the Al Reef region at Dh911m and Yas Island at Dh837m.







Source: The National

Back to Index







REAL ESTATE: WILL DUBAI'S PROPERTY

BROKERS SURVIVE COVID-19? Wednesday, April 22, 2020

Dinners at Zuma, drives in Porsches, open houses in Armani suits, handshakes in $20,000 watches and $6m deals

closed over rounds of golf - welcome to the life of some of the UAE’s top property agents. A sluggish market didn’t

stop those in Dubai making nearly $300m in commissions during the first nine months of 2018 alone, while the

countrywide figure could easily be estimated at half a billion dollars.

Real estate transactions in Dubai even jumped by almost 10 percent in Q1 2020 compared to Q1 last year, with a

total of 10,243 compared to 9,317, according to figures by Property Finder. The total is the highest number of

sales transactions recorded in Q1 in the city since 2017.

Yes, real estate brokers in the oil rich Emirates were having the time of their lives. Just two months ago some were

still boasting of private island tours in helicopters on the way to holiday in the Seychelles.

How the world has changed. Today Covid-19 has forced brokers to swap their Zuma dinners for Zoom meetings

to discuss not multi-million dollar deals, but whether they should brace for a crash expected to be worse than the

2008 financial crisis.

Crash, what crash?

Property sales have, unsurprisingly, come to a near halt as countries around the world adhere to strict lockdown

measures to curb the spread of the virus. The UAE announced a 24-hour curfew for two weeks on April 4 and has

since extended it.

“I don’t think we’re going to see a crash, no [but] there will be an element of distressed sales”

“I worked in the US during the 2001 internet recession and then during the 2008 financial crisis,” Haider Ali Khan,

the CEO of online property portal Bayut.com, tells me. “They were difficult times, but mobility wasn’t restricted

then. Now the whole world is restricted. These are truly unprecedented times”.

In the front line of the war against coronavirus are the brokerages, the smallest of whom are expected to pay the

highest price.

“We can’t get away from the fact we’re in a crisis. We can’t do business. We can’t really earn money at the

moment,” says Andrew Cummings, managing director at Dubai-based LuxuryProperty.com. “Sales have definitely

slowed down, a lot.”

But mention the word ‘property crash’ to Cummings and he instantly turns on his persuasive charms we can only

assume work well on potential buyers.

“I don’t think we’re going to see a crash, no. There will be an element of distressed sales but if anything, Dubai’s

incredible handling of this pandemic means a lot of people will be looking at Dubai and saying, where will I want

to live with my family if this happens again? And Dubai sits very strongly,” he says.

Cummings even boasts of selling an AED20m ($5.44m) villa in Jumeirah Golf Estates and an AED7m ($1.9m) plot of

land at La Mer as recent as last week, and says areas like the Palm Jumeirah have seen a surge in interest.

People have been crammed in apartments for so long, he says, they’re shifting their interest to bigger spaces like

villas with gardens they can enjoy in case they’re faced with another pandemic and forced into quarantine.







“Sometimes the brokers don’t understand and perceive us as a big company that is very wealthy... but like any

business, who can afford to go a month without revenue?”

“Even with penthouses and apartments, people are asking, what’s the size of the balcony? What’s the size of the

terrace?” he says, laughing.

Better Homes’ group managing director Richard Waind doesn’t predict a drop in prices either, as the past five - six

years have left little room for elasticity, but he expects a quick rental recovery post Covid-19.

“There’s a lot of pent up demand for rentals at the moment. People have been sat in their apartments for five

weeks and are wanting to get out and get more space. We’re taking on more inquiries from people looking at

villas, so rentals will recover quite quickly,” he says.

We could all use some of his optimism. Waind even predicts an economic boost “like never before” once the

lockdown is lifted.

Brokers predict a quick recovery for the rental market as people look to bigger spaces.

“I suspect that there will be a human desire to get out there and live again and spend money again and see our

friends again and get the economy moving again like we’ve never seen before, off the back of an economic shock

like this,” he says.

While a slight recovery in Asian markets where Covid-19 has nearly subsided has given some hope, today brokers

can barely afford advertising space in online property portals.

“I used to get 50 calls a week on my phone, and now I’m barely getting one a day,” Marwan Yasin tells me. He’s a

financial specialist at Abu Dhabi-based Miramar Property Management, one of nearly 100 brokerages that has

pulled its listings from the UAE’s largest real estate website Property Finder in March.

Brokers must pay large sums to portals like Property Finder, Bayut and Dubizzle to be featured on the platforms,

with some paying nearly AED1m ($272,000) in yearly fees.

“People are emotional during these times and I understand it”

Last month 260 brokerages in the UAE came together to form a united front in a bid to pressure the portals to

provide three-six months’ worth of advertising fee relief as Covid-19 lockdown measures hit the sector.

Property Finder initially offered brokers one month free on their platform Data Finder, followed by a 33 percent

discount for the next two months. After pressure from brokers – and 9,000 listings pulled from the website – it

came back with an offer of two free months.

In our hour long conversation, Property Finder CEO Michael Lahyani tells me brokerages are being “emotional”

and panicking too early on, when the UAE has only been in lockdown for less than three weeks.

“Some of them are panicking. We’ve been in a lockdown for two weeks, and it’s being extended for another week,

but to come out and ask for three months [free]? Of course it’s going to take time until the market picks up again

but who says there’s not going to be any business for three months?”

The Dubai Land Department (DLD) was still registering transactions last week, “It’s not like you cannot technically

close a transaction,” he says.

“These are small businesses that are afraid of the future and uncertainty in the market and they don’t have banks

that would help them with a loan in this market so they’re turning to us, as in, who’s going to help us? Let’s turn to

Property Finder…

“We believe we’ve been forward thinking with this. But you know, people are emotional during these times and I

understand it. There’s so much uncertainty around how long it will last and there’s a little bit of a panic,” Lahyani

says.







Life or death

But Better Homes’ Waind disagrees and says discounts are a matter of ‘life or death’ for smaller brokerages.

“These portals are totally predatory. They know they’ve got us over a barrel”

“It’s a little disingenuous calling anybody emotional in this period,” he says. “People are trying to navigate and

keep their companies afloat in what is a challenging time. For some of the smaller brokerages in particular, those

costs will be life or death if they’re not getting any income in.”

Property Finder wasn’t the only one to hesitate in providing relief to brokers. Its rival Bayut originally offered to

defer brokers’ upcoming cheques by three months, and later decided to provide them with one free month of

advertising and a 50 percent discount for the two months to follow. Since then, it has stepped up support and

offered real estate brokers across the UAE with free space for 20 listings irrespective of whether they’re partners

of the platform.

While Dubizzle, which is owned by Netherlands-based OLX Group, also waived broker fees for the months of April

and May, its primary focus “has always been on the long term and sustainable value creation for all of our

stakeholders,” Matthew Gregory, Director of Sales at Dubizzle, says in an email statement.

It is for that reason that Cummings of LuxuryProperty.com believes portals would not have caved to brokers’

demands had they not been pressured.

“They [portals] all need to look and see how they can make this more sustainable… The sad fact in this industry is

a lot of people are reliant on these portals so they don’t have a lot of marketing strategies... a lot of people survive

by these portals.

“These portals are totally predatory. They know they’ve got us over a barrel. They gave us what they gave us

because they knew we didn’t have a lot of choice. And that’s going to come back to bite them at some stage

because we are going to need them to start being more flexible,” he says.

Inner battle

Lahyani is taken aback by Cummings’ statement when I ask him what he thinks.

“There’s a lot of pent up demand for rentals at the moment”

“I’m not sure the industry recognises that we actually paved the way for these package reliefs to happen. Had we

stayed put in our position, our competitors would have stayed put as well,” he says.

In his defence, Property Finder has had to lay off 100 staff members and close two markets – Morocco and

Lebanon – to be able to provide a two month relief for brokers.

“This is not Europe where the government is [paying] 80 percent of your salary. We have to figure this one out on

our own… Sometimes the brokers don’t understand and perceive us as a big company that is very wealthy and

can afford to navigate through this crisis without any challenges but like any business, who can afford to go a

month without revenue?” he says.

Cummings recognises the sacrifice. “Property Finder has actually done a lot internally to do this... They’re

hurting... It’s taken a bit to do that,” he says, adding that his company LuxuryProperty.com has also had to

furlough eight of its 15 operations staff.

Since the lockdown, buyers’ interest is shifting from apartments to villas with outdoor space

“There are challenges we’re all facing and it was important for us to see that our partners in the portals were also

experiencing challenges. It’s not fair for us to lose 25 percent of revenue while they offer [us] a 5 percent discount.

It’s not comparable,” he adds.







Bayut, on the other hand, has “gotten away without feeling any pain,” according to Cummings. “Bayut haven’t

done any of that. I’m not aware of them reducing salaries or doing anything. So at the moment I think Property

Finder, in many ways, have felt some pain to give us that, whereas Bayut are sort of getting away with not feeling

any pain. We don’t want them to feel pain but our businesses need to survive,” he says.

Bayut CEO Haider Al Khan has confirmed that the company has not laid off staff, but tells me he needs “a bit more

time to reassess what’s going to happen.”

Here’s the deal

For the brokers to survive Covid-19, the portals will need to go back to the basis of their business models:

inflexible 12-month contracts that limit brokers’ abilities to adapt to market demands.

“The days of 12-month contracts strictly holding us in, are gone. All the portals must move towards more flexible

contracting to enable brokerages to respond to market demand... We all have hard working brokers who are

commission-only who are not able to do their day jobs and not able to go out and earn money at the moment,”

says Cummings.

“We are partners to these portals and they’re important to us but equally, we’re important to them. They can’t

survive without us and we can’t survive without them so we all need to come together to get through this crisis.

Whilst the initial relief provides some respite, this is not the end and we will need to be looking at more flexibly

moving forward,” he says.

The 12-month contracts give portals the upper hand, and could result in small brokerages closing down. What

brokers are hoping to see post Covid-19 is a “rebalancing” of the relationship.

“Being locked in on the annual contract where they hold your cheques, in a crisis like this, they start cashing

people’s cheques, some businesses will go bust…” Cummings says. “They need to look at contracts that aren’t

handcuffing us in to long-term inflexible contracts secured by post-dated cheques. That needs to be over.

“Without us they won’t survive and have crazy hundreds of millions of dollars valuations. But ultimately, sadly,

because the market is reliant on them, it gives them a lot of power.”

Lahyani argues that all year round subscription models are crucial to the survival of portals, which would

otherwise be limited to seasonal clients. Yet considering Covid-19 has left nearly all of us settling for less, maybe

the portals should too. Maybe if everyone took only what they needed, there would be enough for everyone,

and maybe then, we would not have to wave goodbye to the brokers after all.

*Recent media reports falsely stated that brokers had removed 20,000 listings from Property Finder. The real

number, according to both the portal and brokers, is around the 9,000 figure.

Source: Arabian Business

Back to Index







SAUDI BINLADIN GROUP HIRES HOULIHAN

LOKEY FOR $15BN DEBT REVAMP Saturday, April 25, 2020

Saudi Binladin Group hired Houlihan Lokey Inc. as an adviser as the kingdom’s biggest construction firm pushes

ahead with a proposed $15 billion debt restructuring.

“We have now officially hired Houlihan Lokey to advise the group on debt and balance sheet restructuring,” chief

executive officer Khalid Al Gwaiz said in an internal memo seen by Bloomberg. “We are now at the stage of data

gathering and project planning and need input from different parts of the organization.”

Spokespeople for Saudi Binladin and Houlihan weren’t immediately available to comment.

Binladin - for decades Saudi Arabia’s go-to developer for mega-projects such as airports and holy sites in Mecca

and Medina - is restructuring debt after the government delayed payments to contractors following the drop in oil

prices.

It appointed Al Gwaiz as CEO in March. The contractor’s top management has been overhauled several times in

the past with Abdulaziz Al-Duailej joining as chairman in September, replacing Khalid Nahas who was in the role

for about seven months.

Rothschild & Co. and Moelis & Co. were shortlisted to advise on the debt revamp, people with knowledge of the

matter said in October.


Back to Index







CORONAVIRUS: NO PAY CUTS, LAYOFFS,

SAYS DUBAI'S MAJID AL FUTTAIM CEO Wednesday, April 22, 2020

DUBAI: One of the biggest private employers in the Middle East has no plans to cut salaries or lay off any of its

44,000 workers, but the pandemic is changing its thinking about food security, retail and tourism.

Majid Al Futtaim owns and operates hundreds of grocery stores and more than two dozen malls in the Middle

East, as well as Central Asia and Africa. In Gulf Arab states, it has more than 19,000 employees, mostly from the

Philippines, India, Nepal, Bangladesh and Egypt. The workers’ salaries provide vital remittances to their families

back home.

No furlough

“We have taken a decision that we are not going to furlough people ... and we are not going to touch the basic

salaries,” said the company’s Chief Executive Officer Alain Bejjani. “It means a lot, during tough times, to make

sure that we are one family and we are dealing with our people in the best possible way.”

Bejjani spoke to The Associated Press from the company’s busiest store, a massive Carrefour hypermarket in

Dubai that received 22,000 customers daily before the pandemic. Even amid Dubai’s 24-hour curfew and

government-mandated permits needed to leave the house for groceries, the store remains busy. Security guards

test people’s temperature before entering, and in line with government orders, gloves and masks are worn by all.

The company owns and operates 300 of the French-based Carrefour stores. Its largest markets are the UAE, Saudi

Arabia and Egypt, but its reach extends as far as Pakistan, Kenya and Uzbekistan.

Because the UAE, where the company is based, imports most of its produce, meat, poultry and basic goods, Majid

Al Futtaim’s policy of stockpiling a three months’ supply of basic goods proved crucial when nervous shoppers

rushed to stock up and even hoard goods during the first days of growing restrictions on movement amid the

pandemic.

Then came a massive surge in online grocery orders — Carrefour has seen a 300 per cent surge in the UAE, a 700

per cent increase in Egypt and a 1,000 per cent increase in Saudi Arabia.

Alain Bejjani, Chief Executive Officer of Majid Al Futtaim said food security and strategic stock is very important

and the company is now looking to further increase its stockpile period.

Focus on food security

“Food security and strategic stock is very important for us,” Bejjani said, adding that the company is now looking

to further increase its stockpile period.

Bejjani said the company is talking to the governments in countries where it operates about food security,

particularly because of some delays in the supply chain due to lockdowns and social distancing measures in

Europe, and because countries are now keeping more stock domestically.

“This has had an impact, but you haven’t seen anything that was, I would say, disruptive. Some countries decided

to stop exporting some essential items they need,” he said. “We have been able to to find alternative sourcing.”

Bajjani said it’s unclear whether people will come out of this pandemic with the same spending patterns as before

and whether business travel will ever fully rebound. What’s clear, he said, is that online shopping and customer







experiences in stores are going to matter more than ever as people reassess how they spend their time and

money.

“People are going to rethink their consumption patterns,” he said. “Today we see the world moving and operating

at what the basic needs of people is to survive in this time of crisis.”

Carrefour is the company’s most popular brand, but Majid Al Futtaim’s crown jewel is Dubai’s Mall of the Emirates,

where the busiest Carrefour branch is located, along with its iconic indoor ski slope. The company, which operates

more than two dozen malls, has replicated the indoor ski experience at one of its malls in Cairo.

Rent relief

However, strict lockdowns across the Mideast have shuttered malls, including the ski slopes, in line with

government orders. Only the hypermarkets inside remain open and Bejjani said the company has forfeited rent

payments from mall tenants until they reopen.

Last year, a company audit showed Majid Al Futtaim generated $9.6 billion in revenue and earned $1.25 billion in

profit before taxes and other costs.

In addition to the grocery stores and malls, the company also owns VOX movie theatres, an arcade and gaming

chain called Magic Planet, 13 hotels and franchise rights in the Mideast to Abercrombie & Fitch, AllSaints,

lululemon athletics, Crate & Barrel, the LEGO store and American Girl.

As those arms of the company take a hit, its Carrefour stores are busier than ever. To keep up with demand, the

company reassigned around 1,000 of its employees from cinemas and entertainment outlets in five countries to

its grocery business.

“A big part of our time and our effort today is invested in making sure that we understand, we’re in the flow of

what’s happening, and we understand how things are going to evolve,” Bejjani said. “Also, how do you make sure

that we continue to win in a post Covid-19 world, where health and safety is going to be a big reason to re-adapt

customer experience.”

Source: Gulf News

Back to Index







CARREFOUR UAE PORTAL TURNS INTO

ONLINE MARKETPLACE Thursday, April 23, 2020

Dubai; The Carrefour UAE portal has been upgraded into a full-scale online marketplace, which means that it will

now be competing against the likes of Amazon and noon.

In the initial push, some Majid Al Futtaim’s mall tenants have already joined the platform, including Borders,

LUSH, Tavola, Arabian Oud and Jacky’s. (Last week, tenants at The Dubai Mall were given the option of selling

through noon.com.)

Majid Al Futtaim mall tenants who have signed up for the new marketplace get commission-free transactions

during April and 30 days free last-mile delivery. Commission-free transactions will remain in place throughout

May.

The Majid Al Futtaim group owns and operates the Carrefour franchise in the UAE and elsewhere in the Middle

East.

“Through this Carrefour-enabled marketplace, we are replicating our traditional shopping model, where grocery

retail and lifestyle brands are brought together in one location and customers can access everything they need,”

said Alain Bejjani, CEO at Majid Al Futtaim.

While this new destination is digital and is here to stay, the current situation highlights the true value of shared

experiences in the physical world and we look forward to welcoming customers back to our assets soon.”

Online rules

Online retail in the UAE has had a good five weeks or so, as more shoppers gravitate towards purchases done

from the safety of their homes. Carrefour UAE, along with peers in the online grocery space, were among the easy

winners as transaction volumes soared.

But the shift to a marketplace comes with risks – for one it immediately increases the number of products and

categories that the portal will need to offer access to. It expands the list of suppliers, and even in categories for

which Carrefour is not the first choice with shoppers now.

However, given the kind of growth online is having, the marketplace shift gives the retailer/Majid Al Futtaim group

the flexibility and space to chase its goals.

According to Bejjani, “The new business environment that we are operating in is challenging us all to find

solutions that benefit our partners, communities and society at large. We are working o support our stakeholders’

needs today, while putting in place initiatives that keep the economy moving and prepare us for tomorrow’s

world.

“While this new destination is digital and is here to stay, the current situation highlights the true value of shared

experiences in the physical world and we look forward to welcoming customers back to our assets soon.”

SUPPLIER

An account management team has been formed to support businesses as they set up a presence on the

Carrefour UAE platform to become sellers and list their products. Within three to five days of signing up, brands

will be able to list their products.







* Aramex is the logistics provider for the marketplace's sellers.

High stock levels

The marketplace now lists more than 250,000 products, with “sales increasing by more than 10 times in the last

10 weeks. It averages more than 1,300 daily orders.

Source: Gulf News

Back to Index







WHAT'S NEXT - DUBAI REAL ESTATE NEEDS

INNOVATIVE PUSH Thursday, April 23, 2020

When in May 2002 Dubai pioneered the opening up real estate for foreign investments, this turned out to be a

step towards transforming the market to the bold, diverse, and creative sector that it has become today, enjoying

global appeal and a diverse footprint. The vision, leadership, and innovation made Dubai one of the premier

property investment destinations globally.

The top-down approach meant that all real estate initiatives were synchronised and that relevant entities worked

seamlessly to turn vision into reality and ensure the success of the blueprint. As a result, more than 150

nationalities embraced the market and invested in it.

Though it might seem complicated, the formula was simple. Trusting the market as a highly secure environment

where all completed projects are managed by developers; ensuring straightforward transactions; and applying

minimal fees with zero income and corporate tax, as well as zero value added tax on residential real estate.

Unfortunately, demand eventually declined due to geopolitical issues, regional liquidity pressures, weaker oil

prices and the emergence of alternative destinations. Developers played an equally important role in the market

deceleration, opting for a quick and easy profit, which put a stop to innovation and proper international

marketing.

In the food business, three-star Michelin restaurants are expected to innovate in order to stay in the game and

retain their stars. Real estate leadership is the same. It is high time to aim high and innovate once more.

The current unique structure of the Dubai real estate sector presents a huge opportunity to reshape the market

with a new recipe of success.

Create a new proposition

The uniqueness of Dubai as a place where all entities, public and private, work together in an imperceptible

partnership to the greater benefit of the city cannot be easily replicated in other markets. The synchronisation

between the various sectors of the economy, the government and the investment community across the public

and private sectors offers an exceptional opportunity.

This unique Dubai composition, as well as current and potential investors, are ready for the next phase of

innovation. Combined with a post-Covid-19 new world that will open wider doors to the digital economy — in a

manner not seen before — real estate and innovation can revitalise the market in an unprecedented way.

The government is undertaking to move all its services to the blockchain, and could take this decision to the next

level by applying it innovatively to real estate investing. This will pioneer another new initiative in the region.

The real innovation that would help Dubai’s real estate market recover its unstoppable appeal and regain its

glamour is security tokenisation. The real estate industry is resilient and delivers valuable — and stable — returns.

Tokens for all

Although it is future-proofed, it has always been restricted to high-ticket investments and is illiquid, complicated

and opaque. Tokenisation will resolve these problems and will introduce real estate investments into the digital

economy. We should remember that innovation is in Dubai’s DNA.







The emirate was the first in the region to embrace the digital economy, in partnership with the private sector, and

the first to roll it out across all its government services. The government laid out the digital economy plan and

infrastructure and, when the time was right, the private sector and consumers were ready to embrace it. The

same can happen with digitalising real estate investments.

In February, the University of Oxford published a paper advocating digital assets titled, “Tokenisation: the future

of real estate investment”. That future starts from Dubai.

To tokenise an asset is to divide it into shares or tokens that represent a clearly defined share of the asset. This is

what we call a security token. The tokens are secured through the immutability of the blockchain technology.

Every transaction of tokens is completed with automated smart contracts (software algorithms integrated into a

blockchain with trigger actions based on pre-defined parameters).

When tokens are mentioned, the first thing that springs to mind is Bitcoin, and it is important to differentiate

between real estate tokens and other types that exist.

Bitcoin, as with other tokens launched over the last three to four years, are utility tokens. They don’t represent

ownership in the underlying asset. They have value only on the platform, and investors in these utility tokens

hope that, with time, the platform and the utility will grow and so will their investment.

So, how can real estate security tokens take Dubai’s real estate sector to new heights post Covid-19? This will be

discussed in a second column.

— Ziad El Chaar, based in Riyadh, is CEO — Family office of Dar Al Arkan.

Source: Gulf News

Back to Index







COVID-19 REALITY: UAE LANDLORDS AND

RESIDENTIAL TENANTS BEGIN RENT RE-

NEGOTIATION Monday, April 20, 2020

Dubai: UAE’s tenants will need to convince landlords first about changes to their job status if they are to get any

sort of rent relaxations. Expecting across-the-board rent waivers or rent-free periods may be expecting too much,

market sources say.

Getting involved in civil disputes with landlords too may not serve the purpose… especially when tenant finances

are stretched.

What tenants could do is show landlords proof of any change to their job or salary status, and try and negotiate

around that. So, tenants are better off retaining any proof that can back up their demand for a rent waiver or

discount.

“We do not believe that many tenants have the resources to be able to open a civil court case in order to get a

judgement in their favour, which would allow them terminate their leases without penalty,” said John Stevens,

Managing Director at Asteco Property Management.

“The best solution is to approach the landlord and present their change in circumstances with supporting

documentation, and see whether they are willing and able to offer any concessions.

“Some landlords are able to support tenants more than others. This is equally as difficult a time for

landlords/property investors as it is for tenants.

“And there’s always the Rent Dispute Committee in Dubai to assist in mediating and find mutually agreeable

solutions.”

March blues

Things were progressing relatively smoothly through the first two months in the residential market. In Dubai’s

apartment space, rental declines on an annual basis was at around 12 per cent, according to Asteco estimates.

But then March gave a shock to the system, with businesses in the UAE warning about imminent job losses and

also taking pre-emptive measures such as salary cuts from April itself.

By every indication, this process will only hasten in the coming weeks – “A true indication of where the residential

rental market is headed will be had when flight services resume,” said an industry source. “That would give an

insight into the sort of job losses that have taken place, and whether families are heading back to their home

countries until the market situation improves.

“Saving on cash is the only priority for tenants in the current climate.”

Biggest worry

A wholesale departure of their tenants is what landlords are fearing. ‘Gulf News’ spoke to landlords who own and

rent out multiple units at leading residential communities, and their only priority is whether they will get their

rental dues once the next cheques are encashed.







Asteco in its first quarter market update reckons that most tenants will stay put rather than bear the additional

cost burden of shifting/relocating. “We expect a reduced number of new leases and relocations as tenants are

likely to adopt a wait-and-see approach to re-evaluate their circumstances once the restrictions have been lifted,”

the report adds.

How apartment rentals in Dubai fared in the first three months of 2020. These are indicative rates for these

neighbourhoods. There could still be sharp variations between buildings.Image Credit: Asteco Property

Management

How far will landlords go?

But much depends on whether landlords will listen. They could say that they have already adjusted their rental

demands in line with market values. And dropping rents any further will reduce their income and also leaves

them limited funds for the upkeep of their properties.

To counter that, tenants could say that service charges are being reduced this year, in Dubai especially. Plus, since

March, it’s a totally different set of circumstances they and landlords are facing.

“Further pressure on Rental rates across all asset classes is expected for the year as global events weigh down

heavily on market sentiment,” says the Asteco report.







Also, recent government announcements have been quite clear about residential allowances that employers

provide their staff. “Our understanding of Ministerial Resolution 279 clearly articulates that employers are

responsible to pay the residential accommodation allowance to their staff while they remain in Dubai - even if

their salaries and other benefits have been cut,” said Stevens. “This step is particularly important as until residents

can relocate or secure alternative employment, their housing is essential.

“Many landlords are prepared to accept rent payments by direct debit. And some have already agreed to accept

rent in monthly instalments.

“We expect this trend to increase significantly over the coming weeks. Many landlords have commitments to

banks and while they cannot easily accept reductions, smaller amounts - but at regular intervals - are palatable.”

Will tenants be willing to live with that? Or do they expect more?

Next few weeks will decide that.

SHARJAH RENTAL PROPERTY TOO FACES THE HEAT

* Apartment rentals in the northern emirates continue to decline, with average rates down 2 per cent from Q4-

2019, and annual drops at around the 12 per cent mark, according to the new Asteco report.

Source: Gulf News

Back to Index







WHERE DUBAI PROPERTY RENTS HAVE

RISEN AND FALLEN, Q1 2020 Tuesday, April 21, 2020

What was the general market movement in Dubai in Q1?

Rents continued to fall in a broadly similar fashion to the declines experienced in 2019. However, there were signs

of stability in a number of districts where rental prices remained the same as the previous quarter.

While the data from the first three months of this year does run into the onset of the coronavirus pandemic in the

UAE, the restriction measures across Dubai taken in response to Covid-19 were yet to have much of an impact on

the property market – that is expected to be seen in the second quarter and beyond, according to experts.

Therefore, sentiment and trends were more in line with the pre-coronavirus period.

"The Covid-19 pandemic has created an environment of acute uncertainty," said Asteco executive chairman and

founder Elaine Jones. "The implications for world markets and the real estate sector have yet to be quantified."

She added: "To date, Asteco has not recorded a discernible change in demand, or values. However, it is likely that

activity will diminish, at least over the short-to-medium term."

Bayut chief executive Haider Ali Khan echoed the need to wait and see what happens in the coming months.

"Although the first quarter shows some healthy numbers, we should be prepared to see some fluctuations in the

coming months as the UAE continues to lead the region’s fight against Covid-19," he said.

"While the government has been proactive by announcing stimulus packages to support the industry, we still

need to wait and observe the impact on consumer interest in the following quarter."

What else did the property companies have to say?

Chestertons described the residential sector's first quarter as "resilient", as apartment rents fell on average 1.5

per cent and villas 1.3 per cent, while also highlighting a "greater stability" during the period.

It noted that once government measures were introduced in March to tackle the spread of Covid-19, the impact

on residential property was limited, with the hospitality and retail sectors more acutely affected.

Asteco found annual rental declines to generally be in the double digits, and said it anticipates the trend to

intensify "in part due to the volume of supply expected for handover in the short-to-medium term, but mainly as

a result of uncertainties surrounding the impact of the current pandemic".

It added in its "Dubai Real Estate Report Q1 2020" that it expects tenants to adopt a wait-and-see approach before

potentially relocating once restrictions on movement have been lifted.

Improvements in rental rates were largely confined to the villa market where areas such as the Meadows and

Jumeirah Park experienced no change during the three-month period.

What about supply of new units?

That stood at 4,458 across freehold areas, according to Chestertons, compared to 6,328 in Q1 2019, and 12,369 in

Q1 2018.







"A reduction in future residential supply is a crucial step towards more balanced supply and demand dynamics

and will go some way to support long-term investor confidence," it wrote in its Observer Dubai Residential Report

for Q1 2020.

Asteco offered a higher number of completed units in the first quarter – 5,750 apartments and 2,150 units.

It said the expected delivery of 34,000 units by the end of the year is likely to be revised given the circumstances

around the pandemic.

What has been done to protect tenants during the Covid-19 restrictions?

In both Dubai and Abu Dhabi, tenants struggling to pay their rent are exempt from eviction after the government

issued new directives to protect them.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of the Dubai

Judicial Council, temporarily suspended all eviction judgements related to residential and commercial facilities in

the emirate during March and April.

The directive also stopped all "imprisonment judgements" linked to rental disputes. However, the ruling does not

apply to abandoned homes.

Property agents confirmed to The National that some landlords are already being flexible with tenants who are

struggling financially.

The Dubai economy overall has received government incentives worth Dh1.5bn for three months, and local banks

have been directed to provide support packages to struggling clients.

How did property sales fare during Q1?

There was positive movement, with transactions in Dubai rising an annual 10 per cent amid government policies

to support the economy, according to Property Finder.

Total property sale transactions during the period ending March 31 reached 10,243, Property Finder said.

It added that the month of March had more than 1,209 mortgage registrations, which is the highest number since

October 2019 and 24.8 per cent more than March 2019.

As part of the economic stimulus provided by the Central Bank amid coronavirus, loan-to-value ratios applicable

on mortgage loans for first-time buyers increased by 5 percentage points.

This means the upfront cash deposit required to buy a property has decreased to 20 per cent from 25 per cent for

first time expatriate buyers, and to 15 per cent, from 20 per cent for Emiratis.

As for prices, they were down 2 per cent on averagefor villas and apartments quarter-on-quarter, Asteco

reported, while Chestertons witnessed a 1.8 per cent fall for apartments and 0.8 per cent for villas.

Can I move house during the restriction measures?

Yes, but you will need a movement permit, which can be obtained on the Dubai Police website.

Choose the “personal” option, then click “emergency” from the drop-down menu and explain in the description

box that your tenancy agreement is coming to an end. Permits are processed quickly in most cases.

For landlords, the tenancy contract can be uploaded on the official Ejari portal or the app.


Back to Index

https://www.thenational.ae/business/money/abu-dhabi-and-dubai-governments-block-tenant-evictions-during-the-pandemic-1.996864

https://www.thenational.ae/business/dubai-q1-real-estate-transactions-rise-10-on-the-back-of-government-policies-1.1003871







ALDAR TEAMS UP WITH BANKS TO OFFER

LOW INTEREST RATE HOME FINANCE Tuesday, April 21, 2020

Aldar Properties is partnering with banks in Abu Dhabi to offer home finance at low interest rates at some of its

developments in the capital.

The company, which is Abu Dhabi's biggest developer, is teaming up with Abu Dhabi Commercial Bank, Abu Dhabi

Islamic Bank and First Abu Dhabi Bank to offer finance at a fixed rate of 1.99 per cent for three or five years with

no application or valuation fees, Aldar said in a statement.

The offer, which is valid for 30 days, also includes three- to six-months' payment deferral when purchasing homes

at developments including Yas Acres, The Bridges, Mamsha and Jawaher, according to the company.

“We remain confident and optimistic about the opportunities available within Abu Dhabi’s real estate market, and

we look forward to a long and successful relationship with all of our customers for many years to come,” said

Rashed Al Omaira, executive director – commercial at Aldar Properties.

Customers can also benefit from Abu Dhabi Municipality’s recent waiver of the 2 per cent property registration

fees as well as a service charge waiver from Aldar for the first year, the company said.

“We are ... committed to finding new ways in which we can deliver more value to our communities – from

enhancing the surrounding destinations, reducing service charges and improving service levels within the

communities,” Mr Al Omaira said.

Aldar has also made virtual home tours available for its customers and is carrying out specialised disinfection

services to ensure a safe handover of homes in the wake of the outbreak of coronavirus pandemic.

The Central Bank of the UAE has relaxed lending limits for mortgages in the wake of the coronavirus pandemic as

part of a series of measures that includes a Dh256 billion stimulus injection into the economy.

Loan to value ratios were eased by 5 per cent, meaning the deposit required to buy a new home decreased to 20

per cent from 25 per cent for first time expatriate buyers, and to 15 per cent, from 20 per cent, for Emiratis.

Aldar last month announced its own Dh100 million commitment to support residents, customers and partners as

part of Abu Dhabi's wider efforts to cushion the blow faced by the global economy due to the coronavirus. The

company also set aside Dh4bn to ensure timely payment to its contractors and suppliers.

The overall economy and the real estate market are expected to face strong headwinds in the near term due to

the coronavirus pandemic and low oil prices, consultancy Core recently said in a report.

“While the real impact is impossible to quantify and the recovery timeline unknowable, we are seeing demand

drop drastically as most organisations adjust to social and travel restrictions,” Core said.

“Limitations to physically view properties and conduct businesses are leading to extended transaction timelines;

however, we expect technology to be used to connect parties and reduce some of the barriers to execution.”

Aldar reported an 81 per cent surge in fourth quarter net profit on the back of higher revenues for 2019. Net

profit attributable to shareholders for the period ending December 31, climbed to Dh577m, while revenue

jumped 17 per cent to Dh2.1bn.

https://www.thenational.ae/business/economy/uae-central-bank-cuts-reserve-requirements-and-boosts-stimulus-to-dh256bn-1.1001634








Back to Index







HOMEFRONT: 'I'M ON UNPAID LEAVE AND

MY LANDLORD IS CHASING ME FOR RENT.

HOW DO I PAY?' Thursday, April 23, 2020

I work in the hospitality industry and have been told to stay at home by my employer until further notice. The

problem is that my company does not provide accommodation for us and we normally pay the rent ourselves.

With no income, however, who is responsible as I cannot afford the rent now? Every day the landlord asks us for

the rent money and it is a very difficult time. Where can I go for help as this is becoming unbearable? RP, Dubai

This is a difficult situation for everyone and as such we have to do the best we can by finding solutions that might

only be temporary rather than permanent.

The Federal government has worked hard to put in place some excellent measures to help ease the financial

burden of this time for residents, with some measures also applicable to tenants and landlords. These have come

in the form of discounts on utility bills and government fees, together with relief to anyone who has loans through

the banks.

The government has also validated expired residence visas until the end of this year, eased car registration rules

and continues to look to help us as the situation moves onwards. When it comes to your living expenses, the only

advice I can give you is to speak to your current landlord and request financial relief while your employment

situation clears up. This situation is nobody’s fault and as we are all in it together, hopefully your landlord will be

more sympathetic than normal and come up with a mutual relief agreement.

The important point at the moment is that you need more time in order to pay while you are stuck at home and

not working. Presumably when you do return to work, you will be able to repay for the lost time. It is important to

note that rental evictions in Dubai have been banned during March and April, so no landlord can evict tenants

during this time. Point this out to your landlord as it gives you time to repay once the situation eases.

Understanding and compassion are required from all parties, as it is possible the landlord could also be suffering

with their own personal financial issues at the moment. If this is the case and the landlord is based in the UAE,

they can approach their mortgage lender to ask for a repayment holiday to cover the period when no rental

income is coming in.

Technically, we have to help each other get through this as there is nothing in law to cover what we are currently

experiencing.

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

than 35 years in London and Dubai

The opinions expressed do not constitute legal advice and are provided for information only. Please send any

questions to [email protected]


Back to Index







ORGANISERS CANCEL ARABIAN TRAVEL

MARKET 2020 IN DUBAI OVER GLOBAL

COVID-19 PANDEMIC Sunday, April 19, 2020

A statement said: “We appreciate that this is disappointing news, however everyone’s health and safety is our top

priority. We are fully aware of the important role that ATM plays for industry professionals right across the

Middle East region and beyond, and we believe it is our responsibility to deliver a safe and successful event when

we are able to do so.”

Over 39,000 travel professionals, government ministers and international press, visit ATM every year to network,

negotiate and discover the latest industry opinion and trends.

The annual business-to-business (B2B) exhibition showcases over 2,800 products and destinations from around

the world to over 28,000 buyers and travel trade visitors.

While the live event will go ahead on May 16-19, 2021, there will be an ATM Virtual Event from June 1-3, made up

of webinars, live conference sessions, speed networking events, one-on-one meetings.


Back to Index







AMAALA: REDEFINING LUXURY TRAVEL IN

THE ETHICAL ERA Monday, April 20, 2020

As the world wakes up to climate change, a new breed of conscious consumer is driving the emergence of brands

that behave with integrity and deliver on their promises of social and environmental responsibility.

For consumers, the once prevalent ‘more is more’ mindset is giving way to considered consumption, with ethical

considerations becoming integral to purchasing decisions.

The travel sector is no exception. As ‘luxury’ travel becomes increasingly ubiquitous and awareness grows of the

social and ecological damage caused by over-tourism, discerning consumers are seeking authentic experiences

that leave a positive footprint on local ecosystems.

A unique destination on Saudi Arabia’s northwestern coastline is set to raise the bar for individuals seeking

transformative travel experiences underpinned by ethical principles.

Targeting the world’s top 2.5 million ultra-high net worth travellers, AMAALA is poised to act as a catalyst in the

evolution of tourism, shifting its trajectory from the now-hackneyed concept of luxury travel to meaningful,

purpose-driven and immersive experiences that aims to safeguard the planet’s natural resources.

Named after the Arabic word for ‘hope’ and the ancient Sanskrit word for ‘purity’, the AMAALA resort delivers

upon the Kingdom of Saudi Arabia’s Vision 2030 pillars of the cultivation of a vibrant society, a sustainable

economy and a protected natural environment.

AMAALA will not only respect and safeguard local cultures and ecosystems, it aims to transform lives and

livelihoods with the creation of an estimated 20,000 new jobs, rising to 50,000 once fully established.

While the AMAALA resort destination spans over 4,155 square kilometres of unspoilt terrain within the Prince

Mohammad bin Salman Natural Reserve, approximately five percent of the greenfield site will be developed with

the remainder managed for conservation value.

Taking inspiration from the Bedouin tribes who traditionally hold a deep respect for and connection to the

ancestral lands and seas that sustain them, a commitment to world-class sustainability is an integral part of

AMAALA’s brand promise.

Sustainable principles and practices permeate all aspects of AMAALA. With an operational zero-carbon footprint

as its goal, the destination has multiple sustainability criteria, not least being the requirement for developers to

adhere to bespoke regulations based on world-class sustainability standards and best practices.

Once completed, a full solar energy farm – one of the largest in the GCC - will supply the entire development. The

feasibility of redirecting excess energy to the local grid is also being examined.

Robust waste management and recycling processes, most of AMAALA’s transport being powered by renewable

energy, and landscaping featuring species indigenous to the Arabian Peninsula are key factors in minimising life

cycle environmental impact.

An organic farm, harnessing sustainable farming techniques, will supply ample local produce for guests and

employees, with the longer-term goal of developing a secondary sustainable farming industry to promote self-

sufficiency for local communities.







AMAALA’s Chief Executive Officer, Nicholas Naples, states: “A core objective for AMAALA is the preservation,

conservation and where possible, the enhancement of its marine and coastal ecosystem. While the area features

high levels of marine biodiversity, abundant marine life and a coral reef that is amongst the last major healthy

reefs in the world, the environment is significantly understudied.

“This is set to change with the introduction of the Marine Life Institute, a signature project at AMAALA.

Collaboration with leading global universities, ecologists and marine experts is underway to map the environment

with future research projects planned to find solutions for the re-establishment of other global reef systems,

based upon understanding the natural resilience of northern Red Sea corals.

"The Institute, working in partnership with organisations, will also contribute to the World Coral Conservatoire

project to build a world reference centre of living coral colonies,” Naples added.

The Kingdom of Saudi Arabia is becoming increasingly attractive to foreign investors, corporations and

entrepreneurs due to the widespread reforms implemented as part of the Vision 2030 agenda.

Recognised in the recent World Bank Doing Business 2020 report as amongst the ten world economies showing

the most improvement on ease of doing business, the Kingdom aims to increase foreign direct investment from

3.8 per cent to reach international levels of 5.7 per cent of GDP. This, combined with the move towards global

commercial rules and standards and the introduction of a swathe of FDI-friendly reforms, such as a relaxation of

the 49 per cent limit for foreign investors in shares of listed companies, indicates that the opportunity to capitalize

on the opening up of the Saudi market has never been stronger.

In particular, the Kingdom’s goal to attract 22.1 million international visitors by 2051 makes its burgeoning

tourism sector a compelling investment proposition. As the global travel market teeters on the edge of a

consumer-driven seismic shift and developed nations become increasingly mired in the economic downturn,

AMAALA’s investment packages– which span financial investments and partnerships through to numerous

development opportunities for hospitality, retail, residential, leisure, art and culture and education facilities - are

attracting attention. With AMAALA anticipated to deliver several longstanding economic benefits to the Kingdom,

including a contribution of 0.64% to GDP by 2030, the development offers hope for a new era of ethically-

grounded strategic investments with the potential for robust returns.


Back to Index







ABU DHABI ROYAL SAID TO INVEST $1BN IN

MIDDLE EAST RETAIL GIANT LULU Thursday, April 23, 2020

An investment firm backed by a member of Abu Dhabi’s royal family agreed to buy a stake worth just over $1

billion in LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, according to

people familiar with the matter.

The company led by Sheikh Tahnoon Bin Zayed Al Nahyan acquired an almost 20% holding in the Abu Dhabi-

based supermarket group founded by Indian entrepreneur Yusuff Ali, the people said, asking not to be identified

as the matter is private.

It wasn’t immediately clear which company Sheikh Tahnoon is using for the investment or if he was buying the

stake in his personal capacity, the people said.

Sheikh Tahnoon is the chairman of Royal Group, which has holdings in businesses such as media, trade, financing

and real estate among others, according to its website. He is also the chairman of First Abu Dhabi Bank PJSC, the

UAE’s biggest lender.

“We don’t want to comment on market rumours,” said V. Nandakumar, Lulu’s chief communications officer. “An

official statement will be issued if at all there are any updates.”

Representatives for Royal Group didn’t respond to requests for comment.

Biggest deals

Abu Dhabi, holder of about 6% of the world’s proven oil reserves, is investing in local businesses to diversify its

economy away from crude.

At just over $1 billion, the LuLu deal ranks among one of the UAE’s largest consumer deals in recent years. Majid

Al Futtaim Holding LLC agreed to buy Retail Arabia, the owner of the Geant store franchise in the Middle East, for

an undisclosed amount in 2017.

Ali is among a group of Indian businessmen who set up large businesses in the UAE and wider Gulf region during

a decades-long oil boom. Others include Sunny Varkey who set up GEMS Education and transformed it to one of

the world’s largest privately-owned school operators and Micky Jagtiani of the Landmark Group.

LuLu also operates shopping malls and other businesses such as hospitality and real estate. It had annual

turnover of about $7.4 billion and employs more than 50,000 people, according to its website.


Back to Index







COVID-19: DUBAI MALLS AND OFFICES

TOLD TO BE 'ON STANDBY' FOR

REOPENING Thursday, April 23, 2020

Dubai’s government has told malls to be on standby for a gradual re-opening, with heavy safety measures to be

put in place to prevent the spread of the coronavirus and protect staff and customers.

In a document outlining protocols for the first step of a four-stage re-opening of major retail operations, Dubai

Economy said that visitors to malls and staff must wear masks at all times, with hand sanitisers installed

throughout the premises.

The document gave no date for the re-opening of malls, but it said operators should be on standby for an

announcement.

Additionally, all malls must conduct sanitisation 24 hours a day, and implement a screening process that checks

the temperature and health of everyone who enters. The malls must also have a mandatory isolation area to

isolate potential Covid-19.

Social distancing, maximum numbers

Other steps included in the document say people must ensure 2 metres of social distancing, and maintaining

occupancy at to 30 percent across all common and gross leasable areas.

Restaurants and other F&B outlets will have to reduce seating to 30 percent and maintain seating and tables at

least six feet apart.

Both stores and restaurants must hang a red tag on the door displaying the maximum number of customers to

be allowed inside, based on a social distance of four feet.

Tourist attractions

According to the document, entertainment and tourist attractions – such as the Dubai Fountain – must remain

closed for the first stage of the plan.

Visitors to malls will only be allowed to be there for three hours, with the mall itself allowed to operate for 10

hours. Adults over 60 and children between three and 12 will not be allowed to enter.

A similar document with the same steps was issued in Abu Dhabi by the Department of Economic Development.

The Dubai Economy document also outlined initial guidelines for offices. Employees will be required to wear

masks at all times, maintain 2 metres distancing and maintain occupancy at 30 percent.

Building and office hours will not exceed 8 hours a day. Meetings will be restricted to 5 people or less, with the 2

metre social distancing guidelines still in place.


Back to Index







COVID-19: UAE AUTHORITIES DIRECT

EMIRATES TO EXPLORE RE-OPENING OF

MALLS Thursday, April 23, 2020

The two government bodies responsible for overseeing the UAE’s response to the Covid-19 pandemic said it has

directed authorities in country to explore the possibility of re-opening malls.

National Emergency Crisis and Disaster Management Authority (NCEMA) and the Ministry of Health and

Community Protection, in an update on Twitter this morning, said they “directed the local economic authorities to

study the possibility of reopening commercial centres in consultation with their private sector partners, taking

into account health requirements and precautionary and preventive measures”.

The announcement comes as authorities in Dubai and Abu Dhabi have outlined staged plans to re-open malls in

their respective emirates.

The measures include wearing of masks at all times, maintaining social distancing and ensuring that restaurants

and retail outlets are restricted to 30% capacitity.


Back to Index







ABU DHABI SEES 10% INCREASE IN

BUILDING PERMITS ISSUED IN Q1 Monday, April 20, 2020

The number of building permits issued in Abu Dhabi in the first quarter of the year increased by 10 percent to

2,563.

According to a report from the Abu Dhabi Department of Municipalities and Transport, there were 1,817 building

permits for residential operations, which represented 68 percent of the total number in Q1.

This was followed by 280 building permits for commercial purposes, 239 for governmental and public institutions,

33 for healthcare and education, 30 agricultural land building permits and 28 for mosques.

There were 238 maintenance licenses issued in Q1 compared to 169 for the same period last year, while requests

for certificates of completion reached 795 (513 in 2019).

According to the Building Permits Performance Report, issued by Department of Municipalities and Transport, the

number of building permits issued by the Municipality of Abu Dhabi City reached 1,641 for various sectors and

institutions, governmental, residential, commercial, governmental services, religious, social, cultural or other

services.

This included 978 permits for new buildings on vacant land that had not been previously built, 302 permits for

external and internal modifications to buildings without any additions, 239 for separate buildings on lands that

have existing buildings, and 122 for horizontal and vertical expansion on a group of existing buildings.

Al Ain Municipality permits reached 698 - 440 for new buildings on land that had not been previously built, 180 for

new and separate buildings on land with existing buildings, 42 for horizontal and vertical expansions on a group

of existing buildings, and 36 permits for external and internal modifications to buildings without additions.

During the first quarter, Al Dhafra Region Municipality issued 224 permits for buildings of various uses - 154 for

new and separate buildings on land that has existing buildings, and 62 for new buildings on land that was not

previously built, along with four permits for external and internal modifications to buildings without any

additions, and four other permits for vertical and horizontal expansions on a group of existing buildings in the

region.

A separate report from the Department of Municipalities and Transport showed that the total number of

consultancy offices operating in this field reached 663 classified offices, while the number of contractors for

construction in various vital sectors and housing reached 3,244.


Back to Index







DUBAI'S DEYAAR TO GO AHEAD WITH

CAPITAL RESTRUCTURING PLANS Monday, April 20, 2020

Dubai-based Deyaar Development is to proceed with capital restructuring plans.

Shareholders of the property developer had approved plans at the recent annual general meeting to reduce

Deyaar’s capital from AED5.78 billion ($1.6bn) to AED4.55bn ($1.2bn).

The move by the Dubai Financial Market-listed company has also been given the green light from the Securities

and Commodities Authority (SCA).

Saeed Al Qatami, CEO of Deyaar described the move as “positive”. He said: “The plan for capital restructuring

proposed by our Board of Directors will enable Deyaar to write off all accumulated losses stemming largely from

more than a decade ago, enabling us to further improve financial ratios and increasing our company’s

attractiveness to investors and future financing.

“We anticipate this to also have a positive impact on share price and demand, as well as the possibility of

dividends distribution in case of accumulated profits and depending on availability of excess cash.”

The capital restructuring plan will see the cancellation of 21.3 percent of the company’s shares.

Deyaar, which is owned by Dubai Islamic Bank, expects the capital restructuring process to be reflected in the

market by the end of May 2020.


Back to Index







BIE UNANIMOUSLY AGREES TO PROPOSE

POSTPONEMENT OF EXPO 2020 DUBAI Tuesday, April 21, 2020

The executive committee of the Bureau International des Expositions (BIE) has unanimously agreed to propose

the postponement of Expo 2020 Dubai.

The 12-delegate member states agreed to the request from the UAE Government that the global showcase be

moved to run from October 1 2021 to March 31 2022, in light of the challenges posed by the current coronavirus

pandemic.

Dimitri S. Kerkentzes, secretary general of the BIE, said: “I am confident that when the time is right, Expo 2020

Dubai will constitute the best platform to build, with renewed optimism and hope, a better and brighter future for

all.”

Any change of dates requires a two-thirds majority of BIE member states, with voting set to be carried out

remotely between April 24 and May 29.

It was also agreed to propose that the event retain its title as Expo 2020 Dubai.

Alain Berger, delegate of France and chairman of the executive committee of the BIE, said: “The UAE’s willingness

to listen to participating countries and its pragmatism to take the necessary steps towards postponement

demonstrate yet again its strong commitment to hosting a truly inclusive and inspirational World Expo.

“The executive committee of the BIE fully supports the UAE's request for postponement and recommends that

countries around the world reach the same consensus.”

Expo 2020 Dubai, the first World Expo held in the Middle East, Africa and South Asia region, was set to open on

October 20 this year, host 192 countries and welcome some 25 million visits over the course of 173 days.

Reem Al Hashimy, UAE Minister of State for International Cooperation and director-general of Expo 2020 Dubai,

said: “We welcome today’s recommendation of the Bureau International des Expositions (BIE) Executive

Committee to support a request by the UAE Government and Expo 2020’s Steering Committee to postpone Expo

2020 for a year.

“Now the official process for agreeing a delay begins, and we look forward to working constructively with BIE

member states, our friends, and partners to confirm the new date of October 1, 2021 when the Expo will open its

doors, and the UAE will welcome the world.”


Back to Index







SAVILLS PREDICTS 'STRONG RECOVERY'

FOR OFFICE AND RETAIL SECTORS IN SAUDI

ARABIA, POST COVID-19 Monday, April 20, 2020

Real estate giants Savills has forecast a strong second half of the year for Saudi Arabia, provided the kingdom can

limit the spread of the deadly Covid-19 virus, to allow business to resume.

As the largest and one of the most significant economies in the GCC, Saudi Arabia was among the first countries

in the region to initiate stringent measures to contain the spread of Covid-19, including widespread closures of

entertainment facilities, gyms and schools and issuing work-from-home orders.

All international flights to and from the country were cancelled from last month, while major cities including

Riyadh, Makkah and Madinah have been under a curfew since the end of March, and Jeddah a few days later.

However, David O’Hara, head of Savills KSA, revealed that close to 80 percent of active enquiries are ongoing,

albeit at “a slow pace”, and he believed there was room for optimism during the current crisis.

He said: “Fundamentally, there is a strong demand for investment grade real estate across Saudi Arabia. A few of

the ongoing deals have been finalized in the last few weeks, indicating a long-term optimistic view most

companies are adopting while considering their real estate requirement in the kingdom.

“Over the last 12 to 18 months, the kingdom has liberalised investments guidelines and opened up its economy to

new business sectors. This has led to a surge in enquiry levels from regional and global companies keen to set-

up/expand their operations in KSA.

“We anticipate a strong recovery in demand especially across the office and retail sector during H2 2020, provided

the current situation is contained and business activity resumes at the earliest.”

The Saudi Arabian Monetary Authority (SAMA) has announced a SAR50 billion program to support the private

sector, aimed at promoting economic growth through a package of measures.

In addition, the Ministry of Finance has announced urgent initiatives worth more than SAR70bn to support the

private sector, especially small and medium enterprises and economic activities most affected by the virus.

O’Hara added: “The new policy measures will provide a much-needed support to the economy at this critical

juncture. In the long-run, the positive impact of these measures will trickle down to the economy and the real

estate sector. However, in the short-to-medium term, economic growth is likely to remain muted. As per latest

estimates by Oxford Economics, non-oil growth is forecast to grow at 0.7 percent (from 2.8 percent previously) in

2020.

“This may have a negative impact on real estate activity in the country in the immediate future as expansion plans

and market entry strategies may be postponed. The existing travel restrictions have already led to key policy

decisions being delayed on a few of the ongoing mandates where our company is involved.”

Saudi Arabia currently has the most cases of coronavirus in the GCC, with 9,362 infections so far and 97 deaths.








Back to Index







UAE PROPTECH START-UP URBAN

LAUNCHES LANDLORD SOLUTION Monday, April 20, 2020

UAE real estate start-up Urban has seen the number of listings on its platform in April increase by over 250

percent week-on-week.

The company, which was founded in January this year, allows tenants to discover, visit and rent their new homes

online - it has seen an average week-on-week increase of 256 percent in new listings through to April 14.

Urban has now launched a digital Landlord Dashboard, allowing landlords to track the performance of their

properties, store documents and management payments.

Rashid Al Ghurair, CEO and founder of Urban, said: “In the current Covid-19 environment, our Landlord

Dashboard empowers landlords to make better informed rental decisions predicated on data-led insights,

resulting in higher occupancy rates, optimal asset performance and greater returns.”

The platform includes real-time analytics on the landlord’s portfolio, such as the number of visits per property,

data-driven pricing information on offers received, and calculations on rental yields and return on investment.

Tala Nsouli, general manager of Urban, added: “Covid-19 has shaken the foundations of the traditional property

sector, accelerating the adoption of the digital-first environment by landlords and tenants.”


Back to Index







MIRDIF TOPS LIST FOR VILLA RENTALS IN

DUBAI, SAYS LATEST BAYUT Q1 REPORT Sunday, April 19, 2020

Mirdif has retained its position as the most popular neighbourhood for renting villas in Dubai, according to the

latest Q1 market report from UAE property website Bayut.

Average rents for three-bedroom villas in Mirdif have dropped 5.7 percent, from AED103,000 in Q4 2019, to

AED97,000, while the rents for four and five-bed villas remain the same at AED119,000 and AED125,000

respectively.

In terms of apartments in the emirate, Jumeirah Village Circle (JVC) has witnessed rent drops of between two and

four percent, with studios averaging AED34,000, one-beds AED48,000, and 2 BHK units going for AED70,000.

According to the report, the prices showed signs of the market bottoming out.

Dubailand’s The Villa was the most popular among buyers purchasing villas in Dubai, with the price per square

foot declining marginally by 0.7 percent. This compares to a 2.5 percent increase in Arabian Ranches; while the

price of villas on Palm Jumeirah went up by 5.3 percent per square foot in the first quarter.

Dubai Marina, meanwhile, continued to be the most sought-after location to purchase apartments, although the

price per square foot (AED1,260) remained stable, as with other areas in Dubai, with properties in Business Bay,

JVC and International City showing marginal declines of under five percent.

According to Dubai Land Department, there were 10,272 real estate transactions in the first quarter of 2020

amounting to AED20.86 billion – compared to 8,021 transactions in Q4 2019, worth AED15.94bn.

For investors keen on buying properties offering high return-on-investment based on projected rental yields in

Dubai, International City remains one of the best options, offering a 9 percent ROI for apartments, while JVC has

the best rental returns for villas at an average of 6.5 percent.

Bayut’s CEO Haider Ali Khan, said that while signs were positive in the first three months of the year, the full onset

of the coronavirus outbreak is likely to have a big impact on the real estate sector.

He said: “Before this unfortunate global event impacted all of our lives, property prices across the emirate were

showing encouraging signs of stabilising, based on Bayut’s data from the first quarter. We also noticed a surge in

interest for residential property listings in Dubai with close to 15 million searches conducted in the first quarter.

Similarly, there were also uplifting signs from a transactional perspective, with the DLD reporting well over 10,000

sales transactions from January to March 2020.”

“Although the first quarter shows some healthy numbers, we should be prepared to see some fluctuations in the

coming months as the UAE continues to lead the region’s fight against Covid-19. While the government has been

proactive by announcing stimulus packages to support the industry, we still need to wait and observe the impact

on consumer interest in the following quarter.”


Back to Index







With 35 years of Middle East experience, Asteco’s

Valuation & Advisory Services Team brings together a

group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

BUILDING CONSULTANCY

The Building Consultancy Team at Asteco have a

wealth of experience supporting their Clients

throughout all stages of the built asset lifecycle. Each

of the team’s highly trained Surveyors have an in-

depth knowledge of construction technology,

building pathology and effective project

management methods which enable us to provide

our Clients with a Comprehensive Building

Consultancy Service.

week 17...friends again and get the economy moving again like we’ve never seen before, off the...

Documents